FOR IMMEDIATE RELEASE
SPACEHAB
REPORTS RESULTS FOR THIRD QUARTER OF FISCAL 2002
Financial Recovery Continues, Net Profit Achieved
Washington, D.C., May 6, 2002 - SPACEHAB Inc. (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced financial results for the third quarter of fiscal 2002, ended March 31, 2002. SPACEHAB reported a net profit of $66,000 ($0.01 per basic and $0.00 per diluted share) for the quarter, compared to a net loss of $3 million ($0.26 per basic and diluted share) for the third quarter of fiscal 2001.
For the nine months ended March 31, 2002, net loss was reduced to $2.1 million ($0.18 per basic and diluted share), compared to a net loss of $7.2 million ($0.63 per share) for the same period a year ago.
SPACEHAB recorded revenues of $24.7 million for the third quarter of fiscal 2002, compared to $24.5 million for the third quarter of fiscal 2001. Revenue decreased 11 percent from the second quarter of fiscal 2002 to the third quarter of fiscal 2002 due to the impact in the second quarter of the increase in contract value for the equitable adjustment on Space Shuttle mission STS-107. Gross profit remained constant at 26 percent of revenue from the second quarter to the third quarter of fiscal 2002. Revenues were $74.7 million for the nine months ended March 31, 2002, compared to $75.4 million for the nine months ended March 31, 2001.
Third quarter fiscal 2002 earnings before interest, taxes, depreciation and amortization (EBITDA) were $4.6 million, compared to $5.8 million for the second quarter of fiscal 2002 and $1.2 million loss for the third quarter of fiscal 2001. SPACEHAB did not record any tax benefit for the third quarter of fiscal 2002. SPACEHAB recorded a $1.4 million tax benefit equal to $0.12 per share in the third quarter of fiscal 2001.
Though SPACEHAB's majority-owned subsidiary Space Media Inc. (SMI) now has an equity partner, SPACEHAB is required to record 100 percent of SMI's losses for financial reporting purposes. SMI's losses were $311,000 for the third quarter of fiscal 2002 and $1.4 million for the fiscal year to date. Excluding SMI's losses, SPACEHAB core operations would have reported a net profit of $377,000 for the third quarter of fiscal 2002 and a net loss of $701,000 for the fiscal year to date. Space Media will fly six student experiments developed under the STARS program in SPACEHAB's Research Double Module on NASA Space Shuttle mission STS-107, now scheduled to launch on July 19, 2002.
Third quarter fiscal 2002 operating expenses were $4.9 million, down $0.8 million from $5.7 million in the third quarter of fiscal 2001, a result of company-wide cost reduction efforts. Fiscal 2002 operating expenses included $254,000 for the third quarter and $1.4 million for the year to date in non-recurring costs relating to competition for a contract with NASA's Marshall Space Flight Center (MSFC) in Huntsville, Alabama. The SPACEHAB team (the Microgravity Alliance) is one of three finalists selected to make best and final offers, which were submitted on April 19, 2002. MSFC is expected to award the contract to the successful bidder in mid-June. This contract has been estimated to be worth more than $500 million over 10 years.
Noncash charges totaled $3.2 million for the third quarter of fiscal 2002 and $10.7 million for the fiscal year to date.
"We're continuing with the financial recovery plan we adopted in January 2001, cutting costs, containing spending, reducing debt, and taking other steps including aggressively targeting new core business opportunities as part of our plan to improve liquidity and return to profitability," said SPACEHAB Senior Vice President, Finance and Chief Financial Officer Julia Pulzone. "We're pleased to have sustained profitability in the third quarter."
During the nine months ended March 31, 2002, SPACEHAB continued to strengthen its balance sheet, repaying approximately $11.5 million of debt, including $1.9 million in the third quarter, the majority of which was funded from operations. Cash and cash equivalents totaled $1.1 million as of March 31, 2002. Current liabilities have decreased 22 percent to $47.2 million as of March 31, 2002. SPACEHAB has reduced its accounts payable by $5.3 million compared to the amount outstanding as of June 30, 2001. SPACEHAB has also reduced its discretionary capital expenditures in fiscal 2002, limiting spending to that required to maintain its core business.
SPACEHAB signed a contract modification with NASA in the third quarter for two new Logistics Single Module missions, scheduled to launch in calendar year 2003, with a value of $42.5 million. NASA's Johnson Space Center has extended SPACEHAB subsidiary Johnson Engineering's Flight Crew Systems Development contract beyond the April 30, 2002, expiration date, approving a five-month extension plus three one-month options to cover the period from May 1 through December 31, 2002. This extension provides time for NASA to restructure and recompete the contract. JE will participate in the recompetition to continue providing services covered by the contract. SPACEHAB's firm contract backlog now totals $216.7 million.
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. Its Johnson Engineering subsidiary 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, will provide customer-focused end-to-end services to the space research community at NASA's Marshall Space Flight Center in Huntsville, Alabama. Additionally, through The Space Store, Space Media provides space merchandise to the public and space enthusiasts worldwide (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.
For more information, contact:
| Linda
Billings Director of Communications SPACEHAB, Inc. - Washington Office Phone 202/488-3500 x. 201 Fax 202/488-8251 billings@hqspacehab.com |
Julia
Pulzone Chief Financial Officer SPACEHAB, Inc. - Washington Office Phone 202/488-3500 Toll free 888/647-9543 pulzone@hqspacehab.com |
Note: A Webcast of SPACEHAB's conference call with investors will be available after 2 p.m. EDT Tuesday May 7, 2002, at: http://www.videonewswire.com/event.asp?id=4362
Tables follow
SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
ннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннннн нн
(Unaudited)ннннннннннннннннннннннннннннннннннннннн
(Unaudited)
|
(In thousands, except share and per share data) |
Three Months |
|
Nine Months |
||||
|
|
Ended March 31, |
|
Ended March 31, |
||||
|
|
ннн
2002 |
|
нн
2001 |
|
н
2002 |
|
н2001 |
|
Revenue |
$ннннннннннн 24,711нннн |
|
н$ннннннннн 24,453 |
|
$ннннннннн 74,730нннн |
|
$ннннннннннн 75,394 |
|
Costs of revenue |
18,266 |
|
нннннннннннн 21,865 |
|
58,603 |
|
нннннннннннн 65,225 |
|
Gross profit (loss) |
6,445 |
|
нннннннннннннн 2,588 |
|
16,127 |
|
ннннннннннннн 10,169 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
нннн Selling, general and administrative |
4,767 |
|
нннннннннннн нн5,506 |
|
14,824 |
|
нннннннннннн 17,560 |
|
нннн Research and development |
148 |
|
ннннннннннннннннн 171 |
|
291 |
|
ннннннннннннннннн 366 |
|
ннннннннн Total operating expenses |
4,915 |
|
ннннннннннннн 5,677 |
|
нн 15,115ннннннн |
|
ннннннннннн н17,926 |
|
ннннннннн Income (loss) from operations |
1,530 |
|
нн (3,089) |
н |
1,012 |
|
нннннннннннн (7,757) |
|
Interest expense, net of capitalized interest |
(1,438) |
|
ннннннннннн (1,495) |
|
(4,181) |
|
нннннннннннн (3,114) |
|
Interest and other income, net |
2 |
|
ннннннннннннннннн 223 |
|
1,126 |
|
ннннннннннннннннн 386 |
|
ннн Income (loss) before income taxes |
94 |
|
ннннннннннн (4,361) |
|
(2,043) |
|
нннннннннн (10,485)
|
|
Income tax (expense) benefit |
(28) |
н |
нн ннннннннннн1,388нннннн |
|
(83) |
|
ннннннннннннннн 3,294 |
|
нннн Net income (loss) |
$нннннннннннннннннн 66 |
|
н$нннннннн (2,973) |
|
$ннннннннн (2,126)нннннннн |
|
$нннннннннн (7,191) |
|
Basic earnings (loss) per share: |
ннннннннннннн |
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ннннннннннннннн 0.01 |
|
н$нннннннннн (0.26) |
|
$ннннннннннн (0.18)ннннннннн |
|
$нннннннннннн (0.63) |
|
Shares used in computing net income (loss) per share - basic |
11,971,906 |
|
ннннн 11,419,703 |
|
ннннн 11,817,193 |
|
нннннн 11,380,180 |
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
Net income (loss) per share - diluted |
$ннннннннннннннн 0.00 |
|
н$нннннннннн (0.26) |
|
$ннннннннннн (0.18)нннннн |
|
$нннннннннннн (0.63) |
|
Shares used in computing net income (loss) per share - diluted |
13,308,788 |
|
ннннн 11,419,703 |
|
ннн 11,817,193 |
|
нннннн 11,380,180 |
Selected Financial Data by
Segment (Unaudited)
|
(In thousands) |
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
||||
|
|
|
2002 |
|
2001 |
|
2002 |
|
2001 |
|
Revenue |
|
|
|
|
|
|
|
|
|
нннн Flight Services |
$ |
12,212 |
$ |
10,391 |
$ |
37,230 |
$ |
30,924 |
|
нннн Johnson Engineering |
|
9,813 |
|
12,671 |
|
29,940 |
|
40,702 |
|
нннн Astrotech Space Operations |
|
2,530 |
|
1,230 |
|
6,765 |
|
3,444 |
|
нннн Space Media Inc. |
|
152 |
|
161 |
|
515 |
|
324 |
|
нннн All Other |
|
4 |
|
- |
|
280 |
|
- |
|
Total Revenue |
$ |
24,711 |
$ |
24,453 |
$ |
74,730 |
$ |
75,394 |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before tax |
|
|
|
|
|
|
|
|
|
нннн Flight Services |
$ |
211 |
$ |
(1,613) |
$ |
(2,075) |
$ |
(3,144) |
|
нннн Johnson Engineering |
|
481 |
|
(524) |
|
1,717 |
|
(330) |
|
нннн Astrotech Space Operations |
|
299 |
|
(742) |
|
1,877 |
|
(2,609) |
|
нннн Space Media Inc. |
|
(311) |
|
(1,482) |
|
(1,357) |
|
(4,402) |
|
нннн All Other |
|
(586) |
|
- |
|
(2,205) |
|
- |
|
Earnings (loss) before tax |
$ |
94 |
$ |
(4,361) |
$ |
(2,043) |
$ |
(10,485) |