Last, any thoughts on ZAP...
Thursday July 30, 7:31 am Eastern Time
Company Press Release
SOURCE: Zapata Corporation
Zapata's New Income Rises 14-Fold in Third Quarter Fiscal 1998
HOUSTON, Texas, July 30 /PRNewswire/ -- Zapata Corporation (NYSE: ZAP - news) reported today that net income rose
to $58.1 million, or $2.52 a basic share, for its fiscal third quarter ended June 30, 1998, up sharply from net income of $4.8
million, or $0.18 a basic share, reported during the comparable quarter a year ago. Third quarter net income includes $86.7
million gained in the spinoff of Omega Protein Corporation of which Zapata retains 60%. Fiscal third quarter revenue was
$31.5 million, compared to revenue of $31.0 million for the corresponding prior fiscal-year period. The Company had 23.1
million shares outstanding during the third quarter of fiscal 1998 versus 27.2 million shares outstanding a year ago.
Zapata President and Chief Executive Officer, Avram Glazer said, ''We are very pleased with the excellent results in the third
quarter. In fact, we believe this is the best quarter in the 45-year history of the Company. The gain from Omega Protein's initial
public offering is a splendid example of Zapata's continuing efforts to unlock value for our shareholders. Zapata recently began
diversifying its assets into the Internet business with a goal of achieving similarly favorable results in the future.''
Zapata's operating income for the third quarter rose to $9.2 million from $4.9 million a year earlier. The Company attributed the
strong performance to higher income generated by Omega Protein, which was a wholly owned subsidiary of Zapata through
April 8, 1998 when Omega Protein completed its initial public offering. Omega Protein's operating income increased to $10.4
million for the third quarter from $6.5 million from a year ago, reflecting increased sales of its higher margin specialty products
and higher prices for crude fish oil.
Omega Protein recorded a 52% increase in revenue from continuing operations as well as a 62% increase in operating income
for the third quarter versus the comparable quarter a year ago.
For the first nine months of fiscal 1998, Zapata reported revenue of $91.0 million and net income of $69.2 million compared to
revenue of $79.6 million and net income of $9.5 million for the year earlier period. The $9.5 million recorded in 1997 included
$2.3 million from discontinued operations. On a per basic share basis in the first nine months of the current fiscal year, the
Company reported $3.01 in net income on 23 million shares outstanding versus $0.33 on 28.8 million shares outstanding a year
ago.
Zapata recently announced plans for a major strategic initiative to acquire Internet and e-commerce businesses. As part of this
initiative, the Company has announced letters of intent to acquire 25 Internet site and e-commerce businesses.
In addition to the Internet and e-commerce businesses, Zapata owns 60% of Omega Protein Corporation, (NYSE: OME -
news), which is the nation's largest marine protein company. Zapata presently owns a 40% equity interest in Envirodyne
Industries, Inc., (NASDAQ: EDYN - news), which conducts food services operations.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. Except for historical information, matters
set forth in this press release may be considered forward looking statements and actual results for these statements could differ
materially from expected results. Factors that could significantly impact results and adversely affect Zapata's business, include
the factors discussed in the filings made by Zapata, Omega Protein and Envirodyne with the Securities Exchange Commission
and certain other factors, including without limitation, the ability of Zapata to accomplish its stated plan of business as result of
among factors, a failure to achieve planned advertising revenues, a failure to maintain premier positions on certain high traffic
Worldwide access points, the inability to obtain and maintain high levels of traffic, development of equal or superior products
by competitors, the failure of the market to adopt the Web as an advertising medium, reductions in market prices for
Web-based advertising as a result of competition or other reasons and Zapata's limited experience in the Internet industry.
Zapata assumes no duty to update any information included in this press release.
ZAPATA CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts, unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues $31,488 $31,025 $91,032 $79,612
Expenses:
Operating 18,026 21,916 51,764 59,153
Depreciation
and amortization 1,024 928 4,571 2,783
Selling, general
and administrative 3,196 3,229 8,094 7,094
22,246 26,073 64,429 69,030
Operating Income 9,242 4,952 26,603 10,582
Other income (expense):
Interest income 2,694 940 3,705 3,391
Interest expense (236) (420) (706) (2,004)
Equity in income (loss) of
unconsolidated
affiliates (4,116) (544) (4,345) (1,382)
Gain on sale of
Omega Protein 86,662 -- 86,662 --
Minority interest in
net income of consolidated
subsidiary (4,329) -- (4,329) --
Other, net (56) (312) (141) 802
80,619 336 80,846 807
Income from continuing
operations before
income taxes 89,861 4,616 107,449 11,389
Provision for
income taxes 31,721 1,748 38,251 4,253
Income from continuing
operations 58,140 2,868 69,198 7,136
Discontinued operations:
Income from discontinued
operations, net of
income taxes -- 1,962 -- 2,330
Net income $58,140 $4,830 $69,198 $9,466
Per share data (basic) :
Income from continuing
operations $2.52 $0.11 $3.01 $0.25
Income from discontinued
operations -- 0.07 -- 0.08
Net income per share
(basic) $2.52 $0.18 $3.01 $0.33
Average common
shares outstanding 23,117 27,206 22,986 28,769
Per share data (diluted):
Income from
continuing operations $2.28 $0.11 $2.88 $0.25
Income from
discontinued operations -- 0.07 -- 0.08
Net income per share
(diluted) $2.28 $0.18 $2.88 $0.33
Average common shares
and common share
equivalents outstanding24,294 27,231 24,014 28,791
SOURCE: Zapata Corporation
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