ZAPATA REPORTS INCOME FOR 1993 FISCAL YEAR
HOUSTON, Nov. 30 /PRNewswire/ -- Zapata Corporation (NYSE: ZOS) reported net income of $9.4 million for the fiscal year ended September 30, 1993, compared with net income of $2.4 million for fiscal 1992, Zapata Chairman and Chief Executive Officer R.C. Lassiter announced today. "The substantial improvement shown in 1993's net income is attributable to a $32.9 million pretax gain Zapata recorded from the June 1993 sale of 3.5 million shares of its 8.3 million shares of Tidewater, Inc. common stock. This gain was partially offset by a loss associated with the disposal of Zapata's investment in Arethusa (Off- Shore) Limited and costs associated with the refinancing of Zapata's senior debt," Lassiter said. Zapata used the proceeds of approximately $73.5 million from the Tidewater stock sale to fund the November 1993 purchase of Energy Industries, Inc., a leader in the natural gas compression industry. With the acquisition of the Stellar Companies' natural gas gathering and processing operations at the end of fiscal 1993, and the acquisition of Energy Industries this month, it will be the January-March 1994 quarter before their contributions are fully reflected in Zapata's operating results, the Zapata Chairman said. Also this month, Zapata sold most of its remaining Tidewater stock -- 3.75 million shares -- for $77.8 million, resulting in a 1994 first quarter pretax gain of $33.8 million. The proceeds from the second sale of Tidewater stock provide the capital necessary to continue the expansion of Zapata's natural gas services operations. Today (Nov. 30), Zapata has an estimated cash position of approximately $100 million and total debt of $142.3 million, Lassiter said. "Zapata's financial flexibility positions the company to aggressively pursue acquisitions in the natural gas services sector," he said. Zapata's operating income of $3.0 million for the 1993 fiscal year was less than the $10.9 million in operating income reported by the company a year earl?argely reflecting decreased receipts from Zapata's Bolivian oil and gas operations. Revenues for fiscal 1993 were $265.0 million, versus $106.4 million for 1992. During fiscal 1993, Zapata's income statements reflected higher revenues and expenses compared with the previous year. This resulted from the natural gas trading activities of Zapata's natural gas services subsidiary, Cimarron Gas Companies, Inc., which Zapata acquired during the first quarter of fiscal 1993. Natural gas trading activities ordinarily generate high revenues relative to operating income. Zapata's oil and gas division, Zapata Exploration Company, had operating income of $6.0 million on revenues of $20.2 million for fiscal 1993, compared with operating income of $11.3 million on revenues of $30.1 million a year earlier. The division's decreased results are largely attributable to reduced receipts ($3.2 million in 1993, versus $10.1 million in 1992) from its Bolivian operations. Zapata's natural gas gathering, processing and liquids trading subsidiary, Cimarron Gas Companies, Inc., recorded an operating loss of $500,000 on revenues of $186.3 million as a result of low trading margins, an uncollectible receivable and higher business development costs. Cimarron was acquired during the first quarter of fiscal 1993. Zapata's marine protein division, Zapata Haynie Corporation, recorded 1993 operating income of $4.3 million on revenues of $58.5 million, compared with operating income of $4.7 million on revenues of $76.3 million in fiscal 1992. Market conditions led Zapata to the decision to delay sales and hold a larger portion of the company's fish meal and oil production in inventory. For the fourth quarter of 1993, Zapata had a net loss of $600,000 compared with a net loss of $100,000 for the fourth quarter of fiscal 1992. Operating income for the quarter was $1.4 million, versus an operating loss of $1.3 million for the fourth quarter of 1992. The 1992 period included $1.8 million of equity income related to the company's ownership position in Tidewater.
Revenues for the 1993 quarter were $64.1 million, compared with revenues of $34.0 million a year earlier.
Zapata Corporation is a Houston-based international company primarily involved in natural gas services. Zapata rents, fabricates and services natural gas compression packages, as well as gathers and processes natural gas. Zapata also produces natural gas, and marine protein products. ZAPATA CORPORATION Income Statement: Fourth Fiscal Quarter (Unaudited; in millions, except per share) 1993 1992 Revenues $64.1 $34.0 Expenses: Operating 56.2 28.6 Depreciation 2.9 3.5 Administrative 3.6 3.2 Total 62.7 35.3 Operating income (loss) (1.4) (1.3) Interest expense, net (3.6) (3.4) Other income (expense): Equity in income of unconsolidated affiliate --- 1.8 Other 1.1 2.0 Total 1.1 3.8 Income (loss) before income taxes (1.1) (0.9) Provision for income taxes (0.5) (0.8) Net loss (0.6) (0.1) Preferred stock dividends 0.1 0.1 Net loss to common stock ($0.7) ($0.2) Net loss per common share $ --- $ --- Average common shares and equivalents outstanding 144.6 126.8 Income Statement: Year Ended September 30 (Unaudited; in millions, except per share) 1993 1992 Revenues $265.0 $106.4 Expenses: Operating 235.1 70.4 Depreciation 13.0 14.9 Administrative 13.9 10.2 Total 262.0 95.5 Operating income 3.0 10.9 Interest expense, net (13.4) (13.6) Other income (expense): Gain on sale of Tidewater common stock 32.9 --- Equity in income of unconsolidated affiliate 1.1 1.5 Other (10.6) 4.4 Total 23.4 5.9 Income before income taxes 13.0 3.2 Provision for income taxes 3.6 0.8 Net income 9.4 2.4 Preferred stock dividends 0.4 0.4 Net income to common stock $9.0 $2.0 Net income per common share $0.07 $0.02 Average common shares and equivalents outstanding 136.6 128.6 Divisional Revenues And Operating Income: Fourth Fiscal Quarter (Unaudited; in millions) 1993 1992 Revenues Oil and gas $3.6 $7.4 Natural gas services 37.6 --- Marine protein 22.9 26.6 Total $64.1 $34.0 Operating income (loss) Oil and gas $0.5 $3.4 Natural gas services (0.4) --- Marine protein 2.9 (3.3) Corporate (1.6) (1.4) Total ($1.4) $1.3
Divisional Revenues And Operating Income: Year Ended September 30
(Unaudited; in millions) 1993 1992 Revenues Oil and gas $20.2 $30.1 Natural gas services 186.3 --- Marine protein 58.5 76.3 Total $265.0 $106.4 Operating income (loss) Oil and gas $6.0 $11.3 Natural gas services (0.5) --- Marine protein 4.3 4.7 Corporate (6.8) (5.1) Total $3.0 $10.9 -0- 11/30/93 /CONTACT: Barney White, Vice President-Corporate Affairs, 713-940-6240, or David Skarke, (financial), Vice President-Corporate Development, 713-940-6148, both of Zapata Corporation/ (ZOS)
CO: Zapata Corporation ST: Texas IN: OIL SU: ERN
WB -- NY099 -- 8876 11/30/93 16:04 EST
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|Date:||Nov 30, 1993|
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