Loss Cut 49 Percent, Debt Reduced $5.1 MM, New Module Missions Being Priced
SPACEHAB, Inc., a
leading provider of commercial space services, today announced financial
results for the first quarter of fiscal 2002, ended September 30, 2001.
SPACEHAB reported a net loss of $2.9 million ($0.24 per basic and diluted
share) for the quarter, a 49 percent reduction from the net loss of $5.6
million ($0.49 per basic and diluted share) reported for the previous quarter.
SPACEHAB recorded revenues of $22.3 million for first quarter 2002 versus
$29.9 million for fourth quarter 2001 and $27.0 million for first quarter
2001.
Gross profit was equal to $2.4 million for first quarter 2002 versus
$2.8 million for fourth quarter 2001 and $4.4 million for first quarter 2001.
While revenue declined between fourth quarter 2001 and first quarter 2002,
gross profit improved from 9.5 percent of revenue to 10.9 percent of revenue
in the first quarter due to cost reduction efforts begun in fiscal 2001.
The
decline in revenue is primarily attributable to changes in the mix of business
within SPACEHAB’s Space Flight Services and Johnson Engineering business
segments.
First quarter 2002 operating expenses declined 18 percent from
first quarter 2001, a direct result of company-wide cost reduction efforts.
Operating expenses increased 16 percent, from $4.3 million in fourth quarter
2001 to $5.0 million in first quarter 2002, a result of investment in new
business development.
Noncash charges totaled $3.4 million for first quarter
2002.
First quarter 2002 earnings before interest, taxes, depreciation and
amortization (EBITDA) were $1.9 million, compared to $2.4 million for fourth
quarter 2001 and $0.5 million for first quarter 2001.
For first quarter 2002,
SPACEHAB recorded a small provision for income taxes and no tax benefit for
utilization of current period tax losses in future periods.
In first quarter
2001, SPACEHAB recorded a $780,000 tax benefit equal to $0.07 per share.
“Our first quarter 2002 results reflect continued progress toward
improving liquidity and returning to profitability,” said SPACEHAB Senior Vice
President, Finance and Chief Financial Officer Julia Pulzone.
“We have
executed the remaining elements of our financial plan disclosed with our year
end financial results, and we are managing our business to exceed our baseline
financial plan established in June 2001 for fiscal year 2002.
While
continuing to meet commitments to our customers and vendors, SPACEHAB made
more than $5.1 million of principal repayments on debt in the first quarter,
and we continue to see improvement in working capital over the previous
quarter.”
On October 29, 2001, SPACEHAB finalized terms for restructuring of debt
with Alenia Spazio S.p.A., lowering the interest rate and extending the term
for repayment through 2003.
The terms of the restructuring require payments
of $4.2 million in the current fiscal year.
The remaining balance of $3.7
million will be repaid in future periods.
SPACEHAB reached agreement with Bank of America on October 24, 2001, to
restructure the terms and conditions of SPACEHAB’s credit facility, including
structuring new covenants for the facility.
On August 30, 2001, Astrotech entered into agreements for a $20 million
financing of its Florida facility expansion.
The financing was completed on
September 10.
This facility represents a $30 million investment on the part
of Astrotech.
Construction was completed on the facility, and it was
dedicated on October 25, 2001.
In November 2001, SPACEHAB concluded negotiations with NASA on equitable-
adjustment payments for STS-107 from October 1, 2001, to the June 2002 current
estimated launch date.
SPACEHAB also is negotiating pricing with NASA for two
new International Space Station resupply missions currently scheduled to
launch in 2003; these negotiations are expected to conclude this month.
On September 27, 2001, SPACEHAB’s majority-owned subsidiary Space Media,
Inc., obtained a $750,000 equity investment.
Space Media completed
preparations for a new school year with its STARS Academy global education
program during first quarter 2001.
Subsequent to the first quarter, The Space
Store, Space Media’s online retail operation, established a partnership with
the multimedia company SPACE.com (http://www.space.com ) to create a new
distribution channel that will drive revenue by increasing traffic between
their respective Web sites.
SPACE.com (http://www.space.com ) reports that
its Web site receives 20 million page views per month.
Founded in 1984, with more than $100 million in annual revenue, SPACEHAB,
Inc., is a leading provider of commercial space services. The company
develops, owns, and operates habitat and laboratory modules and cargo carriers
aboard NASA’s Space Shuttles.
It also supports astronaut training and space
station configuration management at NASA’s Johnson Space Center in Houston and
builds space-flight trainers and mockups.
SPACEHAB’s Astrotech subsidiary
provides commercial satellite processing services at facilities in California
and Florida.
SPACEHAB’s newest strategic growth initiative, SPACEHAB
Huntsville, offers customer-focused end-to-end services to the space research
community at NASA’s Marshall Space Flight Center in Huntsville, Alabama.
SPACEHAB subsidiary Space Media, Inc.(TM), brings space into homes and
classrooms worldwide with interactive education programs through STARS Academy
(http://www.starsacademy.com ), and space merchandise from The Space Store
(http://www.thespacestore.com ).
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.
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
Three Months
(In thousands, except share data) Ended September 30,
2001 2000
Revenue $22,292 $26,966
Cost of revenue 19,866 22,524
Gross profit 2,426 4,442
Operating expenses
Selling, general and administrative 4,936 5,930
Research and development 18 114
Total operating expenses 4,954 6,044
Loss from operations (2,528) (1,602)
Interest expense, net of capitalized amounts (1,435) (812)
Interest and other income net 1,141 162
Loss before income taxes (2,822) (2,252)
Income tax (expense) benefit (28) 772
Net loss $(2,850) $(1,480)
Basic loss per share:
Net loss per share -- basic $(0.24) $(0.13)
Shares used in computing net
loss per share -- basic 11,647,709 11,345,353
Diluted earnings per share:
Net loss per share -- diluted $(0.24) $(0.13)
Shares used in computing net
loss per share -- diluted 11,647,709 11,345,353
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Selected Financial Data by Segment
(in thousands)
Three Months Ended September 30, 2001
Pre-Tax Net Depreciation
Income Fixed And
Revenue (loss) Assets Amortization
Flight Services $9,602 $(3,537) $133,577 $2,664
Johnson Engineering 10,175 402 2,034 391
Astrotech 2,246 1,637 43,259 224
SMI 124 (596) 53 83
All other 145 (728) - -
$22,292 $(2,822) $178,923 $3,362
Three Months Ended September 30, 2000
Net Depreciation
Pre-Tax Fixed And
Revenue Income Assets Amortization
Flight Services $11,181 $122 $134,424 $1,462
Johnson Engineering 14,629 (27) 3,469 433
Astrotech 1,111 (1,029) 29,010 246
SMI 45 (1,318) 0 8
$26,966 $(2,252) $166,903 $2,149
