Zapata Corp. Second Quarter Earnings to Exceed Street Expectations
PR Newswire - July 23, 1998 07:18
HOUSTON, July 23 /PRNewswire/ -- Zapata Corp. (NYSE: ZAP), which recently announced a major initiative to become one of the world's largest Internet companies, said today that its second quarter earnings will far exceed the $0.17 per share Wall Street estimate.
The Company, which holds major equity interest in two other publicly traded companies, Omega Protein (NYSE: OME) and Envirodyne Industries (Nasdaq: EDYN), said that in addition to the superior results it expects from Omega Protein, it will record as part of its operating earnings profit proceeds attributed to its spinoff of 40% of Omega in an initial public offering in April.
"We expect to post one of the most profitable quarters in Zapata's 45 year history," said Avram Glazer, president and CEO of Zapata. "Our strong profits will help fuel Zapata's rapid and aggressive growth in the Internet," Glazer said.
Zapata explained that it retains a 60% equity interest in Omega Protein, the dominant U.S. producer of marine derived protein and oil products, a company that has been described as one of the most profitable food processing companies in terms of its margins.
In recent weeks, Zapata has announced letters of intent to acquire 24 E-commerce and Internet sites that are being integrated into its cutting-edge Internet portal, Zap.com (http://www.zap.com). The Company estimates that the consummation of the proposed transactions will position Zap.com amongst the largest Internet sites worldwide based on the number of users.
Additionally, Zapata said that it plans to release its second quarter 1998 results on Thursday, July 30, 1998 before the open of the market. Following the release, the Company will host a conference call on Thursday, July 30, 1998 at 11:00am Eastern Daylight Time (EDT), at which time management will discuss the results for its second quarter ended June 30, 1998 as well as the future direction of the Company.
The conference call will be limited to investment professionals. In order to participate, please affix your name, company affiliation and fax number to official company letterhead and fax to: Jeffrey Goldberger, Stern & Co. at 212-758-8994. Conference call information will be returned via fax. Requests for inclusion on the conference call must be received by Tuesday, July 28th at 5:00pm EDT.
The conference call will also be simultaneously broadcast over the Internet through Vcall, Inc. at vcall.com. To listen to the live call, please go to the web site approximately 15 minutes prior to the call to register and download any necessary audio software. For those who cannot listen to the live broadcast, a relay will be available immediately after the call.
In addition to its Internet initiative, Houston-based Zapata also holds 40% of the outstanding common stock of Envirodyne Industries Inc. and 60% of the outstanding common stock of Omega Protein, the nation's largest marine protein company. Zapata also has approximately $123 million in cash and is debt free.
"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, among others, the successful completion of the proposed Internet transaction, ZAP's ability to implement its business strategy (including integration of the Internet properties to be acquired), the continued development and viability of ZAP's operations, ZAP's ability to manage its growth, the impact of the Internet industry and economic conditions, competition and other factors, including those listed from time to time in the Company's filings with the Securities and Exchange Commission. Many of these risks are beyond the control of the Company and ZAP. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance.
Questions may be directed to Jeffrey Goldberger, Stern & Company, at 212-888-0044.
SOURCE Zapata Corp.
/CONTACT: Jeffrey Goldberger of Stern & Company, 212-888-0044, for Zapata
Corp./
/Web site: zap.com
(ZAP OME EDYN) |
