Zapata Corporation Announces Year End Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--March 13, 2007--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the year and quarter ended December 31, 2006.
For the year ended December 31, 2006, Zapata reported a consolidated net loss of $4.7 million or $.24 per diluted share as compared to a consolidated net loss of $9.2 million or $.48 per diluted share for the year ended December 31, 2005. On a consolidated basis, the decrease in net loss resulted primarily from an improvement related to continuing operations of $2.8 million resulting primarily from increased interest income and decreased selling, general and administrative expenses recognized during 2006, combined with a reduction of losses from discontinued operations of $1.7 million.
For the quarter ended December 31, 2006, Zapata reported consolidated net income of $1.1 million or $0.05 per diluted share as compared to a consolidated net loss of $557,000 or $.03 per diluted share for the comparable quarter last year. The change to net income for the quarter ended December 31, 2006 from net loss for the comparable quarter of the prior year is primarily the result of increased interest income at Zapata Corporate as a result of higher interest rates on investment and an increase in cash balances available for investment after selling its common stock holdings in Omega Protein Corporation (NYSE:OME) and Safety Components International, Inc. (OTCBB:SAFY), combined with a decrease in selling, general and administrative expenses.
For the year ended December 31, 2006, Zapata recorded total transaction losses of $10.3 million ($7.2 million net of tax adjustments) related to the impairment and sale of Omega shares. The difference between the initial impairment charge recognized in the quarter ended September 30, 2006 of $11.1 million and the ultimate transaction loss recognized for the year ended December 31, 2006 of $10.3 million is primarily due to the excess of sales proceeds on the shares sold to the group of institutional investors over the carrying value as adjusted for the impairment.
Based on the sale of Zapata's Omega Protein shares in 2006 and the sale of Zapata's Safety Components shares in 2005, all amounts related to Omega Protein and Safety Components have been reclassified as "Discontinued Operations."
Zapata is currently seeking to acquire an operating business. Zapata's assets are invested in cash and U.S. government securities. The yield earnings from these investments are expected to service Zapata's on-going expenses until an acquisition is completed.
About Zapata:
Zapata is a holding company which has approximately $152 million in consolidated cash, cash equivalents and short-term investments as of December 31, 2006 and currently owns 98% of Zap.Com Corporation (OTCBB: ZPCM), which is a public shell company.
The Company makes certain reports available free of charge on its website at www.zapatacorp.com as soon as reasonably practicable after this information is electronically filed, or furnished to, the United States Securities and Exchange Commission.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are "forward-looking" statements that involve risks and/or uncertainties as described in Item 1A., "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2006. You are cautioned not to place undue reliance on any forward-looking statements. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
ZAPATA CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 136,889 $ 77,011
Short-term investments 15,199 --
Other receivables 279 124
Prepaid expenses and other current assets 346 1,193
Assets related to discontinued operations -- 98,390
------------ ------------
Total current assets 152,713 176,718
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Other assets, net 11,015 26,182
Property, plant and equipment, net 3 19
Non-current assets related to discontinued
operations -- 101,837
------------ ------------
Total assets $ 163,731 $ 304,756
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 417 $ 140
Accrued and other current liabilities 1,806 1,804
Liabilities related to discontinued
operations -- 19,270
------------ ------------
Total current liabilities 2,223 21,214
------------ ------------
Pension liabilities 717 878
Other liabilities and deferred taxes 1,489 1,478
Non-current liabilities related to
discontinued operations -- 49,565
------------ ------------
Total liabilities 4,429 73,135
------------ ------------
Commitments and contingencies
Minority interest 34 59,937
Stockholders' equity:
Preferred stock, $.01 par; 1,600,000 shares
authorized; none issued or outstanding -- --
Preference stock, $.01 par; 14,400,000
shares authorized; none issued or
outstanding -- --
Common stock, $0.01 par, 132,000,000 shares
authorized; 24,616,536 and 24,581,636
shares issued; and 19,184,456 and
19,149,556 shares outstanding,
respectively 246 246
Capital in excess of par value 164,454 162,730
Retained earnings 34,653 45,127
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive loss (8,417) (4,751)
------------ ------------
Total stockholders' equity 159,268 171,684
------------ ------------
Total liabilities and stockholders'
equity $ 163,731 $ 304,756
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ZAPATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
December December December
31, 31, 31,
2006 2005 2004
--------- --------- ---------
Revenues $ -- $ -- $ --
Cost of revenues -- -- --
--------- --------- ---------
Gross profit -- -- --
Operating expense:
Selling, general and administrative 4,730 5,517 4,376
--------- --------- ---------
Total operating expenses 4,730 5,517 4,376
--------- --------- ---------
Operating loss (4,730) (5,517) (4,376)
Other income:
Interest income 4,059 1,296 398
Other, net 580 126 --
--------- --------- ---------
4,639 1,422 398
Loss before income taxes and minority
interest (91) (4,095) (3,978)
(Provision) benefit for income taxes (183) 982 687
Minority interest in net loss of
consolidated subsidiaries 1 1 4
--------- --------- ---------
Net loss from continuing operations (273) (3,112) (3,287)
--------- --------- ---------
Discontinued operations:
(Loss) income before taxes and
minority interest (including loss on
disposal) (3,912) (13,335) 19,913
Benefit (provision) for income taxes 1,574 5,643 (9,528)
Minority interest (2,052) 1,628 (3,365)
--------- --------- ---------
Net (loss) income from discontinued
operations (4,390) (6,064) 7,020
Net (loss) income to common stockholders $ (4,663) $ (9,176) $ 3,733
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Net (loss) income per common share -
basic and diluted
Loss from continuing operations $ (0.01) $ (0.16) $ (0.17)
(Loss) income from discontinued
operations, net of income taxes and
minority interest (0.23) (0.32) 0.37
--------- --------- ---------
(Loss) income per common share - basic
and diluted $ (0.24) $ (0.48) $ 0.20
========= ========= =========
Weighted average common shares
outstanding:
Basic 19,179 19,136 19,131
========= ========= =========
Diluted 19,179 19,136 19,131
========= ========= =========
CONTACT: Zapata Corporation
Leonard DiSalvo, CFO, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation