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ZAPATA REPORTS INCOME FOR 1993 THIRD QUARTER

 HOUSTON, Aug. 6 /PRNewswire/ -- Zapata Corporation (NYSE: ZOS) reported net income of $10.5 million for the third quarter of fiscal 1993, which ended June 30, compared with net income of $2.1 million for the third quarter of the previous year. The 1993 results include a gain from the sale by Zapata of part of its Tidewater Inc. common stock.
 Revenues for the quarter were $58.2 million, compared with $23.6 million for the third quarter of 1992. During the 1993 fiscal year, Zapata's quarterly income statements will show high revenues and high expenses compared with the previous year. This results from the natural gas trading activities of Cimarron Gas Companies, Inc. (shown as "Natural gas services" on the attached Divisional Revenues and Operating Income table), which Zapata acquired during the first quarter of this fiscal year; natural gas trading typically generates high revenue relative to operating income.
 In June, Zapata sold nearly 3.5 million of its approximately 8.3 million shares of Tidewater common stock for some $73.5 million, recording a pretax gain of $32.9 million on the transaction. Zapata plans to use the proceeds from the Tidewater stock sale as part of the purchase price of Energy Industries, Inc., the natural gas compression operations of San Antonio-based Holt Companies. Zapata is in the process of completing its "due diligence" review of the compression operations; the parties are expected to complete the negotiation of a definitive agreement shortly.
 The quarterly results include a $6.0 million write-down of Zapata's investment in Arethusa (Off-Shore) Limited, which Zapata received as part of the proceeds from the 1990 sale of its offshore drilling rig fleet. Also included is a $6.4 million charge associated with the refinancing of the company's senior debt in May of this year.
 "This expense was required by Zapata's restructuring agreement in the event that the company's debt obligations were retired early, which they were," Zapata Chairman and Chief Executive Officer R.C. Lassiter said. "Refinancing the debt, however, was a necessary step in the process of stopping the liquidation of the company for the benefit of debt holders, and to allow Zapata to better utilize its resources to enhance its equity value."
 Zapata's operating results for the third quarter of fiscal 1993 were substantially lower than the previous year, largely due to reduced contributions from the company's natural gas and marine protein operations. Zapata recorded an operating loss of $600,000 for the 1993 quarter, versus operating income of $4.5 million a year earlier.
 Despite higher domestic prices for natural gas, Zapata's oil and natural gas division posted lower quarterly results than the previous year because of lower U.S. production volumes and a decreased contribution from the company's Bolivian natural gas operations. Divisional revenues totaled $4.2 million (including $500,000 in Bolivian receipts), compared with revenues of $7.7 million (including $1.9 million from Bolivia) for the third quarter of 1992. Divisional operating income for the 1993 third quarter was $1.2 million, versus operating income of $3.2 million a year earlier.
 Though fish catch for the quarter approximated that of last year, lower prices led to the decision to defer sales and hold a portion of the company's fish meal and fish oil in inventory. As the result, Zapata's marine protein division recorded third quarter revenues of $13.0 million, compared with revenues of $15.9 million for the third quarter of 1992. Operating income was $400,000, versus $2.5 million a year earlier. Since the quarter ended on June 30, prices have increased and further price increases are expected.
 Zapata's natural gas services division, which is involved in the gathering, processing, trading and marketing of natural gas and natural gas liquids, posted revenues of $41.0 million and an operating loss of $300,000 for the quarter.
 For the nine-month period ended June 30, Zapata reported net income of $10.0 million, compared with net income of $2.5 million for the year- earlier period. Operating income for the 1993 period was $1.6 million, versus $12.2 million for the first nine months of fiscal 1992. Revenues for the nine months were $200.9 million (including $148.7 million for Cimarron), compared with revenues of $72.5 million the year before.
 Zapata Corporation is a Houston-based international company that produces natural gas and oil, as well as providing natural gas services including the gathering and processing of natural gas and natural gas liquids. Zapata is also the nation's leading producer of marine protein products from menhaden, and is a major shareholder in Tidewater Inc., the world's leading operator of marine service vessels.
 ZAPATA CORPORATION
 Income Statement
 for Third Fiscal Quarter 1993 1992
 (Unaudited; in millions, except per share)
 Revenues $58.2 $23.6
 Expenses:
 Operating 52.1 12.5
 Depreciation 2.9 4.2
 Administrative 3.8 2.4
 TOTAL 58.8 19.1
 Operating income (loss) (0.6) 4.5
 Interest expense, net (3.2) (3.7)
 Other income (expense):
 Gain on sale of Tidewater
 common stock 32.9 ---
 Equity in income of
 unconsolidated affiliate --- 1.0
 Other (13.2) 0.9
 TOTAL 19.7 1.9
 Income before income taxes 15.9 2.7
 Provision for income taxes 5.4 0.6
 Net income 10.5 2.1
 Preferred & preference
 stock dividends 0.3 0.1
 Net income to common stock $10.2 $2.0
 Net income per common share $0.07 $0.02
 Average common shares and
 equivalents outstanding 139.0 128.5
 Income Statement for Nine Months
 Ended June 30, 1993 1992
 (Unaudited; in millions, except per share)
 Revenues $200.9 $72.5
 Expenses:
 Operating 178.8 41.8
 Depreciation 10.2 11.5
 Administrative 10.3 7.0
 TOTAL 199.3 60.3
 Operating income 1.6 12.2
 Interest expense, net (9.8) (10.2)
 Other income (expense):
 Gain on sale of Tidewater
 common stock 32.9 ---
 Equity in income (loss) of
 unconsolidated affiliate 1.1 (0.3)
 Other (11.6) 2.4
 TOTAL 22.4 2.1
 Income before income taxes 14.2 4.1
 Provision for income taxes 4.2 1.6
 Net income 10.0 2.5
 Preferred & preference
 stock dividends 0.5 0.3
 Net income to common stock $9.5 $2.2
 Net income per common share $0.07 $0.02
 Average common shares and
 equivalents outstanding 133.2 128.1
 Divisional Revenues and Operating Income
 for Third Fiscal Quarter 1993 1992
 (Unaudited; in millions)
 Revenues
 Oil and gas $4.2 $7.7
 Natural gas services 41.0 ---
 Marine protein 13.0 15.9
 TOTAL $58.2 $23.6
 Operating income (loss)
 Oil and gas $1.2 $3.2
 Natural gas services (0.3) ---
 Marine protein 0.4 2.5
 Corporate (1.9) (1.2)
 TOTAL ($0.6) $4.5
 Divisional Revenues and Operating Income
 for Nine Months Ended
 June 30, 1993 1992
 (Unaudited; in millions)
 Revenues
 Oil and gas $16.6 $22.8
 Natural gas services 148.7 ---
 Marine protein 35.6 49.7
 TOTAL $200.9 $72.5
 Operating income (loss)
 Oil and gas $5.5 $7.9
 Natural gas services (0.2) ---
 Marine protein 1.4 8.0
 Corporate (5.1) (3.7)
 TOTAL $1.6 $12.2
 -0- 8/6/93
 /CONTACT: Barney White, vice president - corporate affairs, 713-940-6240, or David Skarke (investors), vice president - corporate development, 713-940-6148, both of Zapata Corporation/
 (ZOS)


CO: Zapata Corporation ST: Texas IN: OIL SU: ERN

SH -- NY016 -- 0243 08/06/93 10:15 EDT
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Publication:PR Newswire
Date:Aug 6, 1993
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