Dan, I hope you are right. I would love to see earning of more than 30 cents this 3rd quarter, excluding the gain of the 40% shares of Omega sale.
I posted the gains few weeks ago. I guess no one noticed. Check the last paragraph, (On November 3, 1997, Omega Protein) it will show exactly how much $ per share.
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On November 3, 1997, Omega Protein acquired the fishing and processing assets of American Protein, Inc. ("American Protein"), which operated ten steamers and a menhaden processing plant in the Chesapeake Bay area, for $14.5 million in cash (the "American Protein Acquisition"). Additionally, on November 25, 1997, Omega Protein purchased the fishing and processing assets of Gulf Protein, Inc. ("Gulf Protein"), which included six steamers, five spotter planes and the processing equipment located at the Gulf Protein plant near Morgan City, Louisiana for $13.6 million in cash and the assumption of $883,000 in liabilities (the "Gulf Protein Acquisition," and together with the American Protein Acquisition, the "Omega Protein Recent Acquisitions").
On April 8, 1998, Zapata's then wholly-owned subsidiary, Omega Protein Corporation ("Omega Protein") completed an initial public offering ("Offering") of 8,500,000 shares of its common stock for $16 per share less underwriting discounts and selling commissions. On May 7, 1998, the underwriters exercised their over-allotment options for the purchase 1,275,000 additional shares. Of the 9,775,000 shares sold in the Offering, Zapata sold 5,175,000 shares and Omega Protein issued and sold 4,600,000 shares. Immediately following the Offering, Zapata owned 59.7% of Omega Protein's outstanding common stock.
In connection with the Offering, Zapata received $76.7 million from the sale of its 5,175,000 shares of Omega Protein common stock after deducting commissions and selling expenses of $6.1 million. Additionally, Omega Protein received $68.1 million from the sale of 4,600,000 shares of its common stock after deducting commissions and selling expenses of $5.5 million. Omega Protein used a portion of its net proceeds to repay approximately $33.3 million of intercompany indebtedness owed to Zapata and an additional $2.1 million to pay certain long-term debt owed to a bank. As a result of the Offering, Zapata will record an $86.7 million gain and related tax effects of $31.4 million or $2.31 per share (diluted)
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It seems to me that every time Zapata makes an acquisition. (Of course with the Glazers guidance) Zap will always come out smelling like roses, with profits from sales.
HERE IS ANOTHER ONE:
In September 1995, Zapata entered into an agreement (the "Purchase
Agreement") to sell the assets of Energy Industries to Weatherford Enterra, Inc.
and its wholly owned subsidiary, Enterra Compression Company (collectively,
"Weatherford Enterra"). Pursuant to the Purchase Agreement, Weatherford Enterra purchased from the Company all of the assets of Energy Industries for
approximately $131.0 million in cash, and assumed certain liabilities of Energy
Industries. A portion of the proceeds from the sale was used to repay
indebtedness of Energy Industries totaling approximately $26.0 million and to
pay expenses of approximately$1.4 million incurred in connection with the sale.
The sale closed in December 1995 after receiving stockholder approval and resulted in an aftertax gain of approximately $12.6 million.
Happy week... |
