SPACEHAB, Incorporated (NASDAQ:SPAB<), a leading provider of commercial space services, today announced financial results for the first quarter ended September 30, 2006 of its fiscal year 2007.
First Quarter Results
SPACEHAB posted a first quarter fiscal 2007 net loss of $32,000,
or $0.00 per share, on revenue of $14.9 million compared with a first
quarter fiscal 2006 net loss of $1.9 million, or $0.15 per share, on
revenue of $12.0 million.
“During the quarter we completed work on the STS-121 space shuttle
mission, and we continued the processing of our cargo module and
pallet for two additional space shuttle missions to the International
Space Station, STS-116 due to launch in December and STS-118 set for a
June 2007 liftoff,” stated Michael E. Kearney, SPACEHAB President and
Chief Executive Officer. “Our Astrotech operations, however, saw
schedule delays affecting the processing or launch of three spacecraft
during the quarter, deferring revenue and operating margins into later
periods. We anticipate recognizing these revenues in the next two
quarters according to revised launch manifests.”
Subsequent to quarter end, the Company completed the sale of its
retail and internet business, The Space Store, to a private investor,
and concluded the sale of its Destiny module mockup to the Seattle
Museum of Flight. Kearney added, “These divestitures will help our
team focus on core competencies of spaceflight operations, spacecraft
processing, and government configuration management services.”
Liquidity
On September 30, 2006 SPACEHAB’s cash and short-term investments
were approximately $9.8 million, and working capital was $4.3 million.
As of September 30, 2006 SPACEHAB carried a contract backlog of $46.6
million which represents the expected value of contractually-committed
work, portions of which are subject to the space shuttle’s launch
schedule or future government funding decisions.
Update of Ongoing Operations
SPACEHAB reported that its Chairman, Dr. Shelley Harrison, and
Director James R. Thompson have opted not to stand for reelection to
the Company’s Board of Directors at our next Annual Meeting of
Shareholders scheduled for December 12, 2006. Kearney added, “For over
two decades, Shelley has been instrumental in the development and
management of SPACEHAB, funding initiatives through the organization
of private equity and debt and public financings amounting to
approximately $200 million. Since 1993 J.R. has brought to the table
his expansive knowledge and insight into NASA and the aerospace
industry. They have been leaders and staunch supporters of our vibrant
vision, and their wisdom will be missed.”
Mr. Myron Goins, President of TekHarbor Ltd., has been added to
the Company’s proposed slate. “Mr. Goins comes with new perspective
and skills that will be useful to our team. I expect that with these
recent changes to our Board, along with a dedicated management team
attentive to the desires of the space-faring community, we will see a
refining of our business strategy and a renewed emphasis in
establishing shareholder value,” concluded Kearney.
In SPACEHAB’s various business sectors, the Company remained
focused on delivering with excellence on its contracts. The SPACEHAB
Flight Services group efficiently worked three space shuttle missions
in queue. The STS-121 space shuttle flight, a cargo delivery and space
station maintenance mission that launched and landed during the
quarter, housed SPACEHAB’s Integrated Cargo Carrier, which ferried
essential spare parts used in ISS construction and operation.
Processing for the STS-116 mission continued in earnest as the
Company prepared to deliver its Logistics Single Module and ICC during
the second fiscal quarter for a December 7, 2006 liftoff. The module
will transport approximately 5,800 pounds of cargo and research
payloads, while the ICC will carry several space station components,
such as seventeen Russian Service Module debris panels and a
Department of Defense payload. Integration activities also continued
for the STS-118 mission currently scheduled for a late June 2006
launch.
The Astrotech team at Sea Launch celebrated the successful liftoff
of the KoreaSat 5 spacecraft. The Company also received two new
contracts during the quarter; an indefinite-delivery,
indefinite-quantity (ID/IQ) contract not to exceed $9.5 million for
payload processing support on several NASA spacecraft, and a $1.6
million award from The Boeing Company to support the U.S. Defense
Advanced Research Projects Agency Orbital Express mission. Subsequent
to quarter end, Astrotech was awarded a contract for the development
of a new $20 million processing facility for the Government to be
constructed at its Vandenberg Air Force Base location.
Along with the stellar performance by the Company’s Government
Services personnel on their space station program management
activities, temporary work began utilizing these core competencies in
support of NASA’s Constellation Program and the recently awarded Crew
Exploration Vehicle initiative. The Company is looking to expand its
configuration and data management services to these programs on a
permanent basis.
Conference Call
SPACEHAB will host a conference call at 10:00 a.m. Central time
following the earnings release. During the call management will
discuss the Company’s first quarter 2007 financial results as well as
other recent and potential future developments relating to SPACEHAB.
To participate on the call please dial 800-263-8506 (domestic calls)
or 719-457-2681 (international calls). A taped replay will be
available following the conference call until 11:59 p.m. Eastern time
on November 8, 2006 at 888-203-1112 (domestic calls) or 719-457-0820
(international calls) via access code 3354009. To hear a replay of the
call via the Internet, visit the Investor Information section of the
SPACEHAB website at www.spacehab.com. This audio archived webcast of
the conference call is available on the Company website for
approximately one year.
Annual Shareholders Meeting
SPACEHAB’s Annual Meeting of Shareholders is scheduled for
December 12, 2006 at 10:00 a.m. Central time. The meeting will be held
at SPACEHAB’s corporate office located at 12130 Highway 3, Building 1,
Webster, TX 77598.
About SPACEHAB, Incorporated
Incorporated in 1984, SPACEHAB (www.spacehab.com) is a leading
provider of commercial space products and services to NASA,
international space agencies, Department of Defense, and private
customers worldwide. The Company offers end-to-end space access
solutions, space systems development, mission integration and
pre-launch processing facilities and services, and large-scale
government program support services. From securing a spaceflight
opportunity and facilitating the integration of spacecraft and
payloads for launch, to developing human habitats, supplying the
International Space Station, and coordinating the transport and
operation of cargo and experiments to and from orbit, SPACEHAB clearly
demonstrates that “We Mean Business in Space.”
The statements in this document may contain forward-looking
statements that are made pursuant to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that could
cause actual results to be materially different from the
forward-looking statement. These factors include, but are not limited
to, continued government support and funding for key space programs,
product performance and market acceptance of products and services, as
well as other risk factors and business considerations described in
the company’s Securities & Exchange Commission filings including the
annual report on Form 10-K. Any forward-looking statements in this
document should be evaluated in light of these important risk factors.
The Company assumes no obligation to update these forward-looking
statements.
Tables follow
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except share data)
Three Months
Ended September 30,
-----------------------
2006 2005
----------- -----------
Revenue $14,898 $11,985
Costs of revenue 11,133 10,212
----------- -----------
Gross profit 3,765 1,773
----------- -----------
Operating expenses
Selling, general and administrative 2,687 2,280
Research and development 192 78
----------- -----------
Total operating expenses 2,879 2,358
----------- -----------
Income (loss) from operations 886 (585)
Interest expense (1,080) (1,408)
Interest and other income, net 162 109
----------- -----------
Loss before income taxes (32) (1,884)
Income tax expense - (32)
----------- -----------
Net loss $(32) $(1,916)
=========== ===========
Loss per share:
Net loss per share - basic $(0.00) $(0.15)
=========== ===========
Shares used in computing net loss per share -
basic 12,860,810 12,671,576
=========== ===========
Net loss per share - diluted $(0.00) $(0.15)
=========== ===========
Shares used in computing net loss per share -
diluted 12,860,810 12,671,576
=========== ===========
Condensed Consolidated Balance Sheets
(In thousands) September 30, June 30,
2006 2006
ASSETS (unaudited)
------------- -------------
Cash and cash equivalents $9,793 $6,317
Accounts receivable, net 12,913 11,379
Prepaid expenses and other current assets 3,172 2,979
------------- -------------
Total current assets 25,878 20,675
Property and equipment, net of accumulated
depreciation and amortization of $52,082
and $50,620, respectively 60,246 61,637
Other assets, net 3,035 3,138
------------- -------------
Total assets $89,159 $85,450
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $21,540 $17,922
------------- -------------
Long-term liabilities 64,727 64,719
Stockholders' equity 2,892 2,809
------------- -------------
Total liabilities and stockholders'
equity $89,159 $85,450
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