FOR IMMEDIATE RELEASE
SPACEHAB
REPORTS SECOND QUARTER RESULTS
Q2 Revenues
Total $24.0 Million
Washington, D.C., February 7, 2001 - SPACEHAB, Inc. (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced financial results for the second quarter of fiscal 2001, ended December 31, 2000. SPACEHAB reported a loss of $2.7 million ($0.24 per basic and diluted share) for the quarter and a loss of $4.2 million ($0.37 per basic and diluted share) for the six months ended December 31, 2000 as compared with a loss of $1.3 million ($0.11 per diluted share) and a loss of $3.2 million ($0.29 per basic and diluted share) for the comparable period in the prior year. SPACEHAB recorded revenues of $24.0 million for the second quarter and $50.9 million for the six months ended December 31, 2000, versus $26.0 million and $52.0 million for the comparable period in the prior year.
Revenues by business segment for the quarter were $9.4 million for SPACEHAB Flight Services, $13.4 million for Johnson Engineering (formerly Engineering Services), $1.1 million for Astrotech Space Operations, and $0.1 million for Space Media™. These revenues compare to $10.8 million, $13.9 million, $1.3 million, and zero, respectively, for the same period a year ago (Space Media began operations in January 2000). Revenues for the six-month period ending December 31, 2000, were $20.5 million for Flight Services, $28.0 million for Johnson Engineering, $2.2 million for Astrotech, and $0.2 million for Space Media, compared to $16.4 million, $31.5 million, $4.1 million, and zero, respectively, for the same six-month period a year ago.
"The cost of expanding Astrotech's Florida processing facility and a delay of more than a year in the launch of NASA's STS-107 research mission affected our revenues for the second quarter of fiscal 2001," said SPACEHAB Chairman and Chief Executive Officer Dr. Shelley A. Harrison, "while continued investments in the buildup of Space Media and the development of Enterprise™ affected our operating costs. Our strategy for the new millennium is to seek investment partners for our flight assets, thereby improving cash flow in the near term and freeing up cash for growth and development in the long term," said Dr. Harrison. At the end of the second quarter, SPACEHAB entered into its first flight asset investment partnership, with Astrium GmbH - an agreement worth $15.4 million for the Integrated Cargo Carrier (ICC) program (http://www.spacehab.com/icc). SPACEHAB is also evaluating inclusion of additional investment partners in the Enterprise project.
In addition, SPACEHAB has committed to evaluating and aggressively pursuing cost reductions to improve its cash position. SPACEHAB relocated its corporate headquarters from Washington, D.C., to Houston, Texas, in January to better focus on the needs of its largest customer, NASA's Johnson Space Center.
SPACEHAB's Flight Services unit continued preparations in the second quarter to support three Space Shuttle missions scheduled to launch in calendar year 2001: STS-102, an International Space Station (ISS) resupply mission using SPACEHAB's ICC (current contract value: $6.6 million); STS-105, another ISS resupply mission, using the ICC and two SPACEHAB Oceaneering Space Systems (SHOSS) boxes (contract value: $4.9 million); and STS-107, a research mission using SPACEHAB's newest flight asset, the Research Double Module (contract value: $38.3 million; asset value: $100 million -- http://www.spacehab.com/rdm).
SPACEHAB's Johnson Engineering unit continued to provide astronaut training for ISS missions and other Shuttle flights at NASA's Neutral Buoyancy Laboratory and Space Vehicle Mockup Facility in the second quarter of 2001. Johnson Engineering received special recognition from the space agency in December for safety and service accomplishments. Work continued on a multimillion-dollar museum exhibit being built for Shanghai ScienceLand in China, to be completed later this year.
Astrotech prepared two scientific satellites during the quarter for launch on a single rocket from California. It also supported the processing of XM Radio's XM-1 satellite and two Boeing satellite booster motors. Financing for the expansion of Astrotech's Titusville, Florida, payload processing facility is still under way; the project is scheduled for completion in fiscal 2002. Astrotech's contracts with Boeing and Lockheed Martin to process payloads at the Florida facility provide for $82 million in backlog through 2010.
SPACEHAB and RSC Energia of Russia approved a baseline design in the second quarter for their joint Enterprise commercial space station habitat. Fabrication of components has begun at Energia's facilities in Korolev, Russia. The partners are planning a March 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's Space Media subsidiary is proceeding with business development and restructuring and exploring near-term broadband business opportunities. It is also preparing for a March rollout of its 2001 STARS Academy™ global education program.
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™, a subsidiary), continues to plan 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.
Table follows
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
| (In thousands, except share data) | Three Months | Six Months | |||||
| Ended December 31, | Ended December 31, | ||||||
| 2000 | 1999 | 2000 | 1999 | ||||
| Revenue | $ 23,975 | $ 26,011 | $ 50,941 | $ 51,989 | |||
| Costs of Revenue | 20,836 | 22,771 | 43,360 | 46,606 | |||
| Gross Profit | 3,139 | 3,240 | 7,581 | 5,383 | |||
| Operating Expenses: | |||||||
| Selling, general and administrative | 6,124 | 3,893 | 12,054 | 7,633 | |||
| Research and development | 81 | 586 | 195 | 1,077 | |||
| Total operating expenses | 6,205 | 4,479 | 12,249 | 8,710 | |||
| Loss from operations | (3,066) | (1,239) | (4,668) | (3,327) | |||
| Interest expense, net of capitalized interest | 807 | 733 | 1,619 | 1,896 | |||
| Interest and other income, net | (1) | (68) | (163) | (303) | |||
| Other Expense | - | - | |||||
| Loss before income taxes | (3,872) | (1,904) | (6,124) | (4,920) | |||
| Income tax benefit | (1,134) | (632) | (1,906) | (1,689) | |||
| Net loss | $ (2,738) | $ (1,272) | $ (4,218) | $ (3,231) | |||
| Basic loss per share: | |||||||
| Net loss per share - basic | $ (0.24) | $ (0.11) | $ (0.37) | $ (0.29) | |||
| Shares used in computing net loss per share - basic | 11,374,563 | 11,258,801 | 11,359,956 | 11,244,380 | |||
| Diluted loss per share: | |||||||
| Net loss per share - diluted | $ (0.24) | $ (0.11) | $ (0.37) | $ (0.29) | |||
| Shares used in computing net loss per share - diluted | 11,374,563 | 11,258,801 | 11,359,956 | 11,244,380 | |||
| SPACEHAB, INCORPORATED AND SUBSIDIARIES | |||||||
| Unaudited Segment Information | |||||||
| (In thousands) | Three Months | Six Months | |||||
| Ended December 31, | Ended December 31, | ||||||
| 2000 | 1999 | 2000 | 1999 | ||||
| Revenue | |||||||
| Flight Services | $ 9,352 | $ 10,798 | $ 20,533 | $ 16,408 | |||
| Johnson Engineering | 13,402 | 13,939 | 28,031 | 31,506 | |||
| Astrotech | 1,103 | 1,274 | 2,214 | 4,075 | |||
| SMI | 118 | - | 163 | - | |||
| Total Revenue | $ 23,975 | $ 26,011 | $ 50,941 | $ 51,989 | |||
| (Loss) Earnings before tax: | |||||||
| Flight Services | $ (510) | $ (276) | $ (1,472) | $ (3,920) | |||
| Johnson Engineering | (899) | (519) | 150 | (29) | |||
| Other Expense | - | - | |||||
| Astrotech | (861) | (1,109) | (1,882) | (971) | |||
| SMI | (1,602) | - | (2,920) | - | |||
| Loss before tax | $ (3,872) | $ (1,904) | $ (6,124) | $ (4,920) | |||
FOR MORE INFORMATION:
Linda Billings
Director of Communications
SPACEHAB, Inc.
202/488-3500; toll-free 888/647-9543
billings@hqspacehab.com
Julia A. Pulzone
Chief Financial Officer
SPACEHAB, Inc
202/488-3500
pulzone@hqspacehab.com
Note: To access a Webcast of SPACEHAB's conference call with investors, scheduled for 11:00 a.m. EST Thursday, February 8, see: http://videonewswire.com/SPACEHAB/020801.