SPACEHAB Announces Financial Results For Fiscal Year 2000
SPACEHAB, Inc. , a
leading provider of commercial space services, today announced financial
results for its 2000 fourth quarter and fiscal year, which ended June 30,
2000.
For the fourth quarter of fiscal 2000, revenue decreased 1.6 percent to
$28.7 million from $29.1 million the year before.
Net income for the fourth
quarter was $22,000 compared to a loss of $610,000 for the fourth quarter of
fiscal 1999.
On a per-share basis, basic and diluted earnings per share for
the fiscal 2000 fourth quarter were $0.00 compared to a loss of $0.05 per
share for the same quarter in fiscal 1999.
For fiscal 2000, SPACEHAB revenue decreased 1.9 percent to $105.7 million
from $107.7 million in the previous year.
SPACEHAB’s net loss for fiscal 2000
was $3.8 million or $0.34 per basic and diluted share compared to a net loss
of $2.6 million or $0.23 per diluted share for the previous year.
Several factors affected the Company’s financial performance for fiscal
2000.
The Space Shuttle fleet had a launch hiatus of several months for
upgrades and repairs, and the International Space Station (ISS) assembly
sequence was delayed, due to the late delivery of the Russian service module
Zvezda.
In addition, failures of the Delta III and Sea Launch rockets and the
financial reorganizations of the Iridium and ICO satellite constellation
programs delayed and curtailed satellite processing activities for the
company’s Astrotech subsidiary.
The Space Shuttle fleet is now fully operational and scheduled to launch
eight missions next year, Zvezda was launched successfully and attached to the
ISS on July 17, and the Delta III and Sea Launch vehicles are back in
operation.
SPACEHAB incurred additional costs of $2.4 million in fiscal 2000 due to
the initiation of its Enterprise(TM) commercial space station habitat project
and its new Space Media, Inc.(TM) subsidiary.
Space Media is creating
proprietary space-themed content for television and Internet broadcasting and
holds exclusive multimedia rights to program content that will be produced
aboard Enterprise.
Space Media also is managing the S*T*A*R*S(TM) (Space Technology And
Research Students) global space education program, initiated by SPACEHAB in
1999.
The S*T*A*R*S program currently is planning to launch student-designed
experiments on upcoming Space Shuttle missions for schools in Australia,
Canada, China, Israel, Japan, Singapore, Thailand, and the United States.
(To
learn more about S*T*A*R*S or sign up to participate, see
http://www.starsprogram.com.)
Space Media recently acquired The Space Store, an online retail operation,
anticipating that e-commerce will be an integral part of its business.
Currently offering about 400 space-related products, The Space Store
(http://www.thespacestore.com) will expand its product line in fiscal 2001 and
beyond with the addition of SMI-licensed merchandise as well as other space-
themed products from worldwide sources.
“As our fiscal 2000 activities demonstrate, SPACEHAB continues to lead the
way in the commercial development of space,” said SPACEHAB Chairman and Chief
Executive Officer Dr. Shelley A. Harrison.
“Our Enterprise module will house
the world’s first commercial broadcasting studio in orbit, and Space Media is
breaking new ground in the growing multimedia business.
In all of our
efforts,” said Dr. Harrison, “we are focused on expanding our customer base,
developing new markets, extending our global reach, building new strategic
partnerships and strengthening existing alliances, while continuing to deliver
top-quality, innovative products and services.”
“SPACEHAB’s third ISS resupply mission, STS-106, is scheduled to launch on
September 8, this week, and the first ISS crew is scheduled to inhabit the ISS
in November,” said SPACEHAB President and Chief Operating Officer David A.
Rossi.
“We are a leader in the business of space station resupply, and we
anticipate that this market will grow now that ISS assembly is well under
way.”
For the fiscal year ended June 30, 2000, revenue included $39.6 million
recognized from Flight Services contracts in support of Space Shuttle
missions, including the Company’s Research and Logistics Mission Support
(REALMS) contract with the National Aeronautics and Space Administration
(NASA) and contracts with commercial customers to fly experiments and other
payloads;
$58.2 million from SPACEHAB’s Engineering Services unit (formerly
called Johnson Engineering), primarily under contracts with NASA’s Johnson
Space Center; $7.6 million contributed by the Company’s Astrotech subsidiary
for satellite processing; and $0.3 million in miscellaneous revenues.
In
comparison, for the fiscal year ended June 30, 1999, revenue of $39.1 million
was recognized from Space Shuttle missions, $58.4 million from Engineering
Services, $9.8 million from Astrotech, and $0.4 million from miscellaneous
sources.
In fiscal 2000, SPACEHAB’s Engineering Services unit continued to support
astronaut training at NASA’s Neutral Buoyancy Laboratory and Space Vehicle
Mockup Facility in Houston.
Engineering Services built and delivered a Space
Station Remote Manipulator System trainer for NASA this spring.
Building on
its core competences in providing training and building full-scale mockups,
Engineering Services contributed to diversifying SPACEHAB’s commercial
customer base by receiving a $6 million contract to design and fabricate a
major museum exhibit in China in fiscal 2001.
This project is due to be
completed in April 2001.
During fiscal 2000, SPACEHAB’s Astrotech subsidiary handled satellite
processing for 13 missions launched from California and Florida, compared to
15 missions in 1999.
In fiscal 2000, Astrotech secured long-term contracts to
process payloads for Atlas and Delta launches.
Astrotech also has an excusive
contract to process Sea Launch payloads.
In addition, Astrotech completed the
research-and-development phase of its Oriole suborbital launch vehicle program
in fiscal 2000, executing a successful demonstration launch of the Oriole
sounding rocket from NASA’s Wallops Flight Facility in Virginia on July 7,
2000.
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.
SPACEHAB’s newest strategic growth initiative,
Space Media, Inc. (SMI(TM), a subsidiary), will 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.
Note: To access a Webcast of SPACEHAB’s conference call with investors,
scheduled for 11 a.m. EDT on Thursday September 7, see:
http://www.videonewswire.com/SPACEHAB/090700/
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three Months Year
(in thousands, except
share data) Ended June 30, Ended June 30,
2000 1999 2000 1999
Revenue $28,662 $29,120 $105,708 $107,720
Cost of revenue 22,061 24,624 87,931 89,283
Gross profit 6,601 4,497 17,777 18,437
Operating expenses 5,881 4,776 20,272 18,235
Income (loss) from
operations 720 (280) (2,495) 202
Interest expense, net
of capitalized amounts (970) (996) (3,773) (4,905)
Interest and other
income/expense 198 353 662 1,615
(Loss) before income
taxes (52) (923) (5,606) (3,088)
Income tax (benefit) (72) (313) (1,762) (499)
Net income (loss) 22 (610) (3,844) (2,589)
Basic earnings per share:
Net income (loss) per
share -- basic $0.00 $(0.05) $(0.34) $(0.23)
Shares used in computing
net income
(loss) per share
-- basic 11,315,905 11,205,035 11,272,767 11,184,742
Diluted earnings
per share:
Net income (loss)
per share -- diluted $0.00 $(0.05) $(0.34) $(0.23)
Shares used in
computing net
income 11,315,905 11,205,035 11,272,767 11,184,742
(loss) per share
Note:
Certain items in costs of revenue and operating expenses for the
three and year ended June 30, 1999, have been reclassified to conform with the
2000 consolidated financial statement presentation.
