SPACEHAB, Inc. , a
leading provider of commercial space services, today announced financial
results for the second quarter of fiscal 2001, ended December 31, 2000.
SPACEHAB reported a loss of $2.7 million ($0.24 per basic and diluted share)
for the quarter and a loss of $4.2 million ($0.37 per basic and diluted share)
for the six months ended December 31, 2000 as compared with a loss of $1.3
million ($0.11 per diluted share) and a loss of $3.2 million ($0.29 per basic
and diluted share) for the comparable period in the prior year.
SPACEHAB
recorded revenues of $24.0 million for the second quarter and $50.9 million
for the six months ended December 31, 2000, versus $26.0 million and $52.0
million for the comparable period in the prior year.
Revenues by business segment for the quarter were $9.4 million for
SPACEHAB Flight Services, $13.4 million for Johnson Engineering (formerly
Engineering Services), $1.1 million for Astrotech Space Operations, and $0.1
million for Space Media(TM).
These revenues compare to $10.8 million, $13.9
million, $1.3 million, and zero, respectively, for the same period a year ago
(Space Media began operations in January 2000).
Revenues for the six-month
period ending December 31, 2000, were $20.5 million for Flight Services, $28.0
million for Johnson Engineering, $2.2 million for Astrotech, and $0.2 million
for Space Media, compared to $16.4 million, $31.5 million, $4.1 million, and
zero, respectively, for the same six-month period a year ago.
“The cost of expanding Astrotech’s Florida processing facility and a delay
of more than a year in the launch of NASA’s STS-107 research mission affected
our revenues for the second quarter of fiscal 2001,” said SPACEHAB Chairman
and Chief Executive Officer Dr. Shelley A. Harrison, “while continued
investments in the buildup of Space Media and the development of
Enterprise(TM) affected our operating costs.
Our strategy for the new
millennium is to seek investment partners for our flight assets, thereby
improving cash flow in the near term and freeing up cash for growth and
development in the long term,” said Dr. Harrison.
At the end of the second
quarter, SPACEHAB entered into its first flight asset investment partnership,
with Astrium GmbH — an agreement worth $15.4 million for the Integrated Cargo
Carrier (ICC) program (http://www.spacehab.com/icc ).
SPACEHAB is also
evaluating inclusion of additional investment partners in the Enterprise
project.
In addition, SPACEHAB has committed to evaluating and aggressively
pursuing cost reductions to improve its cash position. SPACEHAB relocated its
corporate headquarters from Washington, D.C., to Houston, Texas, in January to
better focus on the needs of its largest customer, NASA’s Johnson Space
Center.
SPACEHAB’s Flight Services unit continued preparations in the second
quarter to support three Space Shuttle missions scheduled to launch in
calendar year 2001: STS-102, an International Space Station (ISS) resupply
mission using SPACEHAB’s ICC (current contract value: $6.6 million); STS-105,
another ISS resupply mission, using the ICC and two SPACEHAB Oceaneering Space
Systems (SHOSS) boxes (contract value: $4.9 million); and STS-107, a research
mission using SPACEHAB’s newest flight asset, the Research Double Module
(contract value: $38.3 million; asset value: $100 million —
http://www.spacehab.com/rdm ).
SPACEHAB’s Johnson Engineering unit continued to provide astronaut
training for ISS missions and other Shuttle flights at NASA’s Neutral Buoyancy
Laboratory and Space Vehicle Mockup Facility in the second quarter of 2001.
Johnson Engineering received special recognition from the space agency in
December for safety and service accomplishments.
Work continued on a
multimillion-dollar museum exhibit being built for Shanghai ScienceLand in
China, to be completed later this year.
Astrotech prepared two scientific satellites during the quarter for launch
on a single rocket from California.
It also supported the processing of XM
Radio’s XM-1 satellite and two Boeing satellite booster motors.
Financing for
the expansion of Astrotech’s Titusville, Florida, payload processing facility
is still under way; the project is scheduled for completion in fiscal 2002.
Astrotech’s contracts with Boeing and Lockheed Martin to process payloads at
the Florida facility provide for $82 million in backlog through 2010.
SPACEHAB and RSC Energia of Russia approved a baseline design in the
second quarter for their joint Enterprise commercial space station habitat.
Fabrication of components has begun at Energia’s facilities in Korolev,
Russia.
The partners are planning a March 2003 launch of Enterprise, which
will be attached to the Russian side of the ISS, taking the place of a
previously planned Russian Docking and Stowage Module.
SPACEHAB’s Space Media subsidiary is proceeding with business development
and restructuring and exploring near-term broadband business opportunities. It
is also preparing for a March rollout of its 2001 STARS Academy(TM) global
education program.
Founded in 1984, with more than $100 million in annual revenue, SPACEHAB,
Inc., is a leading provider of commercial space services. The company is the
first to develop, own, and operate habitat modules and cargo carriers
providing laboratory facilities and resupply capabilities aboard NASA’s Space
Shuttles.
It also supports astronaut training at NASA’s Johnson Space Center
in Houston and builds full-scale space-flight trainers and mockups. SPACEHAB’s
Astrotech subsidiary provides commercial satellite processing services at
facilities in Florida and California in support of a range of expendable
launch vehicles, including Lockheed Martin’s Atlas and Boeing’s Delta and Sea
Launch rockets.
Space Media, Inc. (SMI(TM), a subsidiary), continues to plan
to bring space into homes and classrooms worldwide with television and
Internet broadcasting from the International Space Station.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected in such statements. Such risks and
uncertainties include, but are not limited to, whether the company will fully
realize the economic benefits under its NASA and other customer contracts, the
timing and mix of Space Shuttle missions, the successful development and
commercialization of new space assets, technological difficulties, product
demand, timing of new contracts, launches and business, market acceptance
risks, the effect of economic conditions, uncertainty in government funding,
the impact of competition, and other risks detailed in the Company’s
Securities and Exchange Commission filings.
Table follows.
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except share data)
Three Months Six Months
Ended December 31, Ended December 31,
2000 1999 2000 1999
Revenue $23,975 $26,011 $ 50,941 $51,989
Costs of Revenue 20,836 22,771 43,360 46,606
Gross Profit 3,139 3,240 7,581 5,383
Operating Expenses:
Selling, general
and administrative 6,124 3,893 12,054 7,633
Research and
development 81 586 195 1,077
Total operating
expenses 6,205 4,479 12,249 8,710
Loss from
operations (3,066) (1,239) (4,668) (3,327)
Interest expense,
net of capitalized
interest 807 733 1,619 1,896
Interest and other
income, net (1) (68) (163) (303)
Loss before
income taxes (3,872) (1,904) (6,124) (4,920)
Income tax benefit (1,134) (632) (1,906) (1,689)
Net loss $(2,738) $(1,272) $(4,218) $(3,231)
Basic loss per share:
Net loss per
share -- basic $(0.24) $(0.11) $(0.37) $ (0.29)
Shares used in
computing net
loss per share
-- basic 11,374,563 11,258,801 11,359,956 11,244,380
Diluted loss
per share:
Net loss per
share -- diluted $(0.24) $(0.11) $(0.37) $ (0.29)
Shares used in
computing net
loss per share
-- diluted 11,374,563 11,258,801 11,359,956 11,244,380
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Segment Information
(In thousands)
Three Months Six Months
Ended December 31, Ended December 31,
2000 1999 2000 1999
Revenue
Flight Services $9,352 $10,798 $ 20,533 $16,408
Johnson Engineering 13,402 13,939 28,031 31,506
Astrotech 1,103 1,274 2,214 4,075
SMI 118 - 163 -
Total Revenue $23,975 $26,011 $ 50,941 $51,989
(Loss) Earnings before tax:
Flight Services $(510) $(276) $(1,472) $(3,920)
Johnson Engineering (899) (519) 150 (29)
Astrotech (861) (1,109) (1,882) (971)
SMI (1,602) - (2,920) -
Loss before tax $(3,872) $(1,904) $(6,124) $(4,920)
Note: To access a Webcast of SPACEHAB’s conference call with investors,
scheduled for 11:00 a.m. EST Thursday, February 8, see:
http://videonewswire.com/SPACEHAB/020801.
