Zapata Corporation Announces Second Quarter Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--Aug. 4, 2003--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the second quarter of 2003.
For the quarter ended June 30, 2003, Zapata reported net income of $2.4 million or $0.99 per share on revenues of $27.3 million as compared to net income of $1.2 million or $0.51 per share on revenues of $27.2 million for the comparable quarter last year. Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME), reported net income of $2.4 million on revenues of $27.3 million for quarter ended June 30, 2003 as compared to net income of $2.9 million on revenues of $27.2 million for the comparable quarter last year.
For the six month period ended June 30, 2003, Zapata reported net income of $3.1 million or $1.30 per share on revenues of $52.4 million as compared to net income of $2.4 million or $1.02 per share on revenues of $50.7 million for the comparable period of the prior year. Omega Protein reported net income of $5.0 million on revenues of $52.4 million for the six month period ended June 30, 2003 as compared to net income of $5.7 million on revenues of $50.7 for the comparable period of the prior year.
On a consolidated basis, the increase in net income for the three and six month periods ended June 30, 2003 as compared to the prior comparable periods was primarily the result of Zapata Corporate's recognition of an income tax receivable of $1.2 million related to the completion of an IRS audit and Omega Protein's higher prices received during the current year. This additional income was partially offset by decreased performance at Omega resulting from reduced margins resulting primarily from higher cost of inventories carried forward from the fiscal 2002 year.
About Zapata Corporation
Zapata Corporation is a holding company which currently has one principal operating company, Omega Protein Corporation ("Omega Protein" or "Omega"), in which it has a 60% ownership interest. Omega Protein is the nation's largest marine protein company and is traded on the New York Stock Exchange under the symbol "OME." In addition, Zapata owns 98% of its subsidiary, Zap.Com Corporation ("Zap.Com"), which is a public shell corporation and trades on the over-the-counter electronic bulletin board under the symbol "ZPCM."
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results, events and developments to differ materially from those set forth in or implied by forward looking statements. Factors that could cause actual results, events and developments to differ include, without limitation, those factors listed under the caption "Significant Factors That Could Affect Future Performance And Forward Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2002. Consequently all forward looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized.
ZAPATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
June 30,
2003 December 31,
(Unaudited) 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 60,322 $ 80,643
Short-term investments 56,644 35,928
Accounts receivable, net 17,620 13,070
Inventories, net 46,156 41,939
Prepaid expenses and other current assets 4,128 4,015
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Total current assets 184,870 175,595
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Investments and other assets:
Long-term investments,
available for sale -- 4,016
Other assets 22,790 24,524
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Total investments and other assets 22,790 28,540
Property, plant and equipment, net 83,314 80,842
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Total assets $ 290,974 $ 284,977
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,312 $ 1,270
Accounts payable 3,495 2,718
Accrued liabilities 21,446 23,027
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Total current liabilities 26,253 27,015
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Long-term debt 13,573 14,239
Pension liabilities 12,426 11,835
Other liabilities and deferred taxes 2,713 1,608
Minority interest 57,217 55,018
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Total liabilities 112,182 109,715
----------- ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par), 200,000 shares
authorized, 0 shares issued and
outstanding as of June 30, 2003 and
December 31, 2002 -- --
Preference stock, ($.01 par), 1,800,000
shares authorized, 0 shares issued and
outstanding as of June 30, 2003 and
December 31, 2002 -- --
Common stock, ($0.01 par), 16,500,000
shares authorized, 3,069,859 shares issued
and 2,390,849 shares outstanding as of
June 30, 2003 and December 31, 2002,
respectively 33 31
Capital in excess of par value 162,451 162,037
Retained earnings 53,330 50,216
Treasury stock, at cost, 679,010 shares as
of June 30, 2003
and December 31, 2002 (31,668 ) (31,668 )
Accumulated other comprehensive loss (5,354) (5,354 )
----------- ------------
Total stockholders' equity 178,792 175,262
----------- ------------
Total liabilities and stockholders'
equity $ 290,974 $ 284,977
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three months ended Six Months Ended
June 30, June 30,
--------------------- ------------------
2003 2002 2003 2002
---------- --------- -------- ---------
Revenues $ 27,292 $ 27,237 $ 52,393 $ 50,716
Cost of revenues 21,114 20,331 39,793 37,255
---------- --------- -------- ---------
Gross profit 6,178 6,906 12,600 13,461
Operating expense:
Selling, general and
administrative 2,738 3,436 6,414 6,564
---------- --------- -------- ---------
Total operating
expenses 2,738 3,436 6,414 6,564
---------- --------- -------- ---------
Operating income 3,440 3,470 6,186 6,897
---------- --------- -------- ---------
Other income (expense):
Interest income, net 75 167 196 364
Other, net (51) (44) (30) (96)
---------- --------- -------- ---------
24 123 166 268
---------- --------- -------- ---------
Income before income taxes and
minority interest 3,464 3,593 6,352 7,165
---------- --------- -------- ---------
Provision for income taxes (149) (1,225) (1,238) (2,495)
Minority interest in net
income of consolidated
subsidiary (951) (1,150) (2,000) (2,228)
---------- --------- -------- ---------
Net income to common
stockholders $ 2,364 $ 1,218 $ 3,114 $ 2,442
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Income per share:
Basic $ 0.99 $ 0.51 $ 1.30 $ 1.02
========== ========= ======== =========
Diluted $ 0.98 $ 0.51 $ 1.30 $ 1.02
========== ========= ======== =========
Weighted average common shares
outstanding:
Basic 2,391 2,391 2,391 2,391
========== ========= ======== =========
Diluted 2,402 2,396 2,401 2,395
========== ========= ======== =========
CONTACT:
Zapata Corporation
Leonard DiSalvo
585-242-8703
www.zapatacorp.com