<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 2. DISCONTINUED OPERATIONS OF MARINE PROTEIN--(CONTINUED)
The consolidated financial statements have been restated to report
separately the net assets and operating results of these discontinued
operations. Summarized results and financial position of the discontinued
operations are shown below (amounts in thousands):
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER
30,
------------------------
1994 1993 1992
------- ------- -------
<S> <C> <C> <C>
FINANCIAL RESULTS
Revenues............................................. $96,614 $58,565 $76,319
Expenses............................................. 94,273 59,151 76,621
------- ------- -------
Income (loss) before taxes........................... 2,341 (586) (302)
Income tax provision................................. 1,068 (150) 82
------- ------- -------
Net income (loss) *.................................. $ 1,273 $ (436) $ (384)
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30,
-----------------
1994 1993
-------- -------
<S> <C> <C>
FINANCIAL POSITION
Current assets............................................... $ 49,016 $42,775
Investments and other........................................ 8,022 5,938
Property and equipment, net.................................. 43,134 44,010
-------- -------
100,172 92,723
-------- -------
Debt......................................................... 9,749 8,392
Other liabilities and deferred income taxes.................. 26,526 15,633
-------- -------
36,275 24,025
-------- -------
Net book value............................................... 63,897 68,698
Reserve for loss on disposition.............................. (8,897)
-------- -------
Estimated net value.......................................... $ 55,000 $68,698
======== =======
</TABLE>
- --------
* Net income (loss) includes allocations of interest expense on general
corporate debt of $2.5 million in 1994, $3.9 million in 1993 and $3.7
million in 1992. Interest expense was allocated to discontinued operations
based on a ratio of net assets to be sold to the sum of total net assets of
the Company plus general corporate debt.
NOTE 3. DISPOSITION OF OIL & GAS ASSETS
In September 1994, Zapata announced that its Board of Directors had
determined that the Company should immediately undertake efforts to sell its
U.S. natural gas producing properties. The six properties in the Gulf of
Mexico, representing Zapata's domestic oil and gas producing operations, may
be sold individually or as a package depending upon the interest expressed by
prospective buyers. Zapata's Bolivian oil and gas operations will not be
impacted by this decision. Management of the Company estimates the sales
proceeds from the disposition of these assets will equal or exceed the net
book value of these properties.
The net book value of the domestic properties to be sold totalled $14.1
million at September 30, 1994. Following is a summary of the results of
operations of the Company's domestic oil and gas operations (amounts in
thousands):
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, 1994
------------------
<S> <C>
Revenues............................................... $ 8,432
Expenses *............................................. (40,260)
--------
Loss before income taxes............................... $(31,828)
========
</TABLE>
- --------
* Expenses include a $29.2 million valuation provision.
41
