SPACEHAB, Inc. , a leading
provider of commercial space services, today announced financial results for
the third quarter of fiscal 2001, ended March 31, 2001.
SPACEHAB reported a
net loss of $3.0 million ($0.26 per basic and diluted share) for the quarter
and a loss of $7.2 million ($0.63 per basic and diluted share) for the nine
months ended March 31, 2001, as compared with a loss of $635,000 ($0.06 per
diluted share) and a loss of $3.9 million ($0.34 per basic and diluted share)
for the comparable periods in the prior year.
SPACEHAB recorded revenues of $24.5 million for the third quarter and
$75.4 million for the nine months ended March 31, 2001, down 2 percent from
$25.1 million and down 2 percent from $77.0 million for the comparable periods
in the prior year.
“In our third quarter, we concentrated on reorganizing our business,
pursuing an aggressive cost reduction campaign, and refocusing on our
strongest near-term market prospects,” said SPACEHAB Chairman and Chief
Executive Officer Dr. Shelley A. Harrison.
“We’re also proceeding with our
strategy of seeking investment partners for our flight assets to improve our
cash position in the near term, and we plan to return to profitability in the
next fiscal year,” said Dr. Harrison.
During the quarter, SPACEHAB relocated its corporate headquarters from
Washington, D.C. to Houston, Texas.
The company is maintaining a small
Washington, D.C. office near NASA headquarters.
The company also opened an
office in Huntsville, Alabama, in anticipation of expanding its business with
NASA’s Marshall Space Flight Center.
Ms. Carolyn Griner, former deputy
director of the Marshall center, has joined SPACEHAB as Vice President-
Huntsville Operations.
In the third quarter, SPACEHAB’s Flight Services unit supported its fourth
International Space Station (ISS) resupply mission, Shuttle flight STS-102,
providing the Integrated Cargo Carrier (ICC) to transfer critical equipment
(contract value: $6.6 million).
Flight Services continues preparations to fly
the ICC and two SPACEHAB Oceaneering Space Systems (SHOSS) boxes on another
ISS resupply mission, STS-105, scheduled to launch in the first quarter of
fiscal year 2002 (contract value: $5.3 million).
Flight Services continues
its integration efforts in
support of STS-107, a Shuttle research mission
scheduled to launch in May 2002, with SPACEHAB’s newest flight asset, the
Research Double Module (contract value: $63.3 million; asset value: $100
million — http://www.spacehab.com/rdm ).
SPACEHAB’s Johnson Engineering (JE) unit received a one-year extension on
its contract with NASA to provide flight crew services (JE provides astronaut
training at NASA’s Johnson Space Center) — this extension represents
approximately $42 million in business from May 1, 2001, to April 30, 2002.
JE
also received a contract award from NASA in the third quarter, valued at
approximately $10 million in revenue over the next two and a half years, to
continue providing space station configuration management support. This unit
continues to develop new markets in museum exhibits.
In the third quarter, SPACEHAB’s Astrotech Space Operations subsidiary
supported the processing of a Boeing satellite booster stage at its
Titusville, Florida, payload processing facility.
Astrotech will be
processing three more satellites for launches on Atlas and Delta rockets over
the next few months. Astrotech’s contracts with Boeing and Lockheed Martin to
process payloads at the Florida facility provide for $82 million in backlog
through 2010.
Financing of Astrotech’s Florida facility expansion is under
way, and construction is expected to be completed in October.
At Boeing Sea
Launch facilities in California, Astrotech supported the processing of XM
Radio’s XM-1 and XM-2 satellites.
SPACEHAB and its partner RSC Energia of Russia approved a baseline design
for their joint Enterprise(TM) commercial space station habitat project in the
third quarter.
The partners are planning a 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 is seeking
equity partners in this project to proceed with assembly this summer, as
planned.
SPACEHAB’s Space Media subsidiary was reorganized in the third quarter to
refocus on near-term business opportunities.
Space Media’s successful STARS
Academy(TM) global education program (formerly S*T*A*R*S) is gearing up for
the next academic year, and discussions are under way with potential
collaborators.
On STS-107, the STARS program plans to launch a full locker of
educational experiments.
In February, Space Media launched a STARS biosphere
experiment to the ISS, and in April, it transported small payloads to the ISS
for two commercial customers. Space Media’s online retail business, The Space
Store (www.thespacestore.com ), continues to expand its line of space-related
products.
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), plans 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.
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
Three Months Nine Months
Ended March 31, Ended March 31,
2001 2000 2001 2000
Revenue $24,453 $25,057 $75,394 $77,046
Costs of revenue 21,865 19,265 65,225 65,870
Gross profit 2,588 5,792 10,169 11,176
Operating expenses:
Selling, general
and administrative 5,506 5,178 17,560 12,811
Research and
development 171 503 366 1,580
Total operating
expenses 5,677 5,681 17,926 14,391
Income (loss) from
operations (3,089) 111 (7,757) (3,215)
Interest expense, net
of capitalized
interest (1,495) (907) (3,114) (2,803)
Interest and other
income, net 223 161 386 464
Loss before income
taxes (4,361) (635) (10,485) (5,554)
Income tax benefit (1,388) - (3,294) (1,689)
Net loss $(2,973) $(635) $(7,191) $(3,865)
Basic loss per share:
Net loss per share -
basic $(0.26) $(0.06) $(0.63) $(0.34)
Shares used in
computing net loss
per share - basic 11,419,703 11,287,026 11,380,180 11,258,661
Diluted loss per share:
Net loss per share -
diluted $(0.26) $(0.06) $(0.63) $(0.34)
Shares used in
computing net loss 11,419,703 11,287,026 11,380,180 11,258,661
Unaudited Segment Information
(In Thousands) Three Months Nine Months
Ended March 31, Ended March 31,
2001 2000 2001 2000
Revenue
Flight Services $10,391 $9,006 $30,924 $25,414
Johnson Engineering 12,671 13,556 40,702 45,062
Astrotech Space
Operations 1,230 2,495 3,444 6,570
Space Media, Inc. 161 - 324 -
Total Revenue $24,453 $25,057 $75,394 $77,046
Loss before tax
Flight Services $(1,613) $(394) $(3,144) $(4,313)
Johnson Engineering (524) (44) (330) (73)
Astrotech Space
Operations (742) (197) (2,609) (1,168)
Space Media, Inc. (1,482) - (4,402) -
Loss before tax $(4,361) $(635) $(10,485) $(5,554)
