SPACEHAB First Quarter Results in Line With Significant Growth Investments
SPACEHAB, Inc. , a
leading provider of commercial space services, today announced financial
results for the first quarter of fiscal 2001, ended September 30, 2000.
SPACEHAB reported a reduced loss of $1.5 million ($0.13 per basic and diluted
share) for the quarter, as compared with a loss of $2.0 million ($0.17 per
diluted share) for the same period a year ago.
SPACEHAB recorded revenues of $27.0 million for first quarter 2001 versus
$26.0 million for the same period last year. Revenues by business segment for
the quarter were $11.2 million for SPACEHAB Flight Services, $14.6 million for
Engineering Services (formerly Johnson Engineering), and $1.1 million for
Astrotech Space Operations.
These revenues compare to $5.6 million, $17.6
million, and $2.8 million, respectively, for the same period a year ago.
Earnings or loss before tax for first quarter 2001 for these same segments
were $0.1 million income for SPACEHAB Flight Services, a $27,000 loss for
Engineering Services, and $1.0 million loss for Astrotech versus $3.6 million
loss, $0.5 million income, and $0.1 million income, respectively, for the
first quarter of fiscal 2000.
SPACEHAB’s start-up subsidiary Space Media, Inc.(TM), which began
operations in January 2000, recorded revenue of $45,000 and a loss before tax
of $1.3 million for the first quarter of fiscal 2001.
Revenue came primarily
from sales made by The Space Store, an online retail business acquired in June
2000.
“A stretched-out development schedule for the International Space Station
(ISS) and customer delays on Astrotech satellite processing jobs affected our
revenues for the quarter, while continued investments in Space Media and
Enterprise increased operating costs,” said SPACEHAB Chairman and Chief
Executive Officer Dr. Shelley A. Harrison.
“Permanent habitation of the space
station should now begin to stabilize the Shuttle launch schedule, attract
commercial users, and help to develop markets for our existing and planned
products and services.”
SPACEHAB’s Flight Services unit continued preparations in the first
quarter to support its next Space Shuttle research mission, STS-107, scheduled
to launch in the summer of calendar year 2001.
SPACEHAB’s newest flight
asset, the Research Double Module — a habitat equipped to function as a
laboratory in space — will make its first flight on this mission, carrying
numerous science experiments from a variety of nations.
Experiments aboard
this mission will include a full locker of experiments designed by students
under the S*T*A*R*S® (Space Technology And Research Students) global
education program, managed by Space Media. (See http://www.starsprogram.com
for more information about S*T*A*R*S.)
The value of SPACEHAB’s flight
contracts for STS-107 now totals $36.9 million.
SPACEHAB’s Engineering Services unit has been working multiple shifts on
astronaut training operations at NASA’s Neutral Buoyancy Laboratory in the
first quarter of 2001, to meet training demands for space station assembly
missions and other Shuttle flights.
Engineering Services operates this
training facility for the space agency; it also operates NASA’s Space Vehicle
Mockup Facility and builds full-scale trainers and mockups.
In addition, work
is under way on a multimillion-dollar museum exhibit being built by
Engineering Services for Shanghai ScienceLand in China.
Astrotech prepared only two satellites for launch during the quarter. Two
other satellites originally scheduled to be processed in first quarter 2001
were postponed, one to the second quarter of fiscal 2001 and another to
calendar year 2002.
Launch vehicle failures over the past year have
temporarily slowed down rocket launch rates and affected Astrotech’s satellite
processing business.
However, the causes of those rocket failures have been
identified, and the launch vehicle systems are back in operation.
In
addition, communication satellite sales have been rising in calendar year
2000.
Astrotech thus anticipates that the pace of its satellite processing
business will increase by fiscal 2002.
SPACEHAB is proceeding with the development of its commercial space
station habitat project, Enterprise(TM), in partnership with RSC-Energia,
Russia’s largest aerospace company.
Enterprise is planned to be attached to
the ISS in 2003.
In the interim, SPACEHAB’s Space Media plans to begin
multimedia operations later in fiscal 2001 on the Zvezda service module, now
attached and manned on the Russian side of the ISS.
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.
Table follows
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended
(In thousands, except share data) September 30,
2000 1999
Revenue $26,966 $25,978
Costs of revenue 22,524 23,835
Gross profit 4,442 2,143
Operating expenses:
Selling, general and administrative 5,930 3,739
Research and development 114 491
Total operating expenses 6,044 4,230
Loss from operations (1,602) (2,087)
Interest expense, net of capitalized interest 812 1,163
Interest and other income, net (162) (234)
Loss before income taxes (2,252) (3,016)
Income tax expense benefit (772) (1,057)
Net loss $ (1,480) $(1,959)
Basic loss per share:
Net loss per share - basic $(0.13) $(0.17)
Shares used in computing net
Loss per share - basic 11,345,353 11,229,960
Diluted loss per share:
Net loss per share - diluted $(0.13) $(0.17)
Shares used in computing net
Loss per share - diluted 11,345,353 11,229,960
