FOR IMMEDIATE RELEASE
SPACEHAB
REPORTS RESULTS FOR FIRST QUARTER OF FISCAL 2003
Operating Plan Continues to Show Steady Financial Improvement Toward Profitability
Washington, D.C., November 8, 2002 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced financial results for the first quarter of fiscal year 2003 which ended September 30, 2002. SPACEHAB reported a net loss of $94,000 ($0.01 per basic and diluted share) for this quarter, a 96 percent reduction ($0.24 per basic and diluted share) compared to the same period a year ago.
SPACEHAB recorded revenues of $26.8 million for the first quarter of 2003 compared to $22.3 million for first quarter of 2002. Gross profit increased to $5.2 million, or 19 percent of revenue, for first quarter 2003 versus $2.4 million, or 11 percent of revenue, from the first quarter 2002.
First quarter fiscal year 2003 earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $4.9 million compared to $1.9 million for the first quarter of 2002. Noncash charges totaled $3.1 million for the first quarter of fiscal 2003.
Operating expenses were $3.4 million for the first quarter of fiscal 2003 as compared to $5.0 million in the first quarter of fiscal 2002. The $1.6 million reduction for the quarter is the result of continuing company-wide cost reduction efforts. Previous fiscal year operating expenses included non-recurring costs relating to contract competition for support to NASA’s Marshall Space Flight Center, expenses associated with Space Media, Inc., and amortization of goodwill.
Interest and other income for this quarter was $9,000, down from $1.1 million for the same period last year when the Company reported a gain on the sale of the Astrotech Space Operations Oriole sounding rocket assets.
“SPACEHAB continues to build its business base and is focused on improving profitability by managing operating margins and costs,” said Julia A. Pulzone, SPACEHAB Senior Vice President, Finance and Chief Financial Officer.
In the first quarter of fiscal year 2003 SPACEHAB repaid $2.6 million of debt obligations. SPACEHAB’s total remaining term debt obligations, excluding convertible subordinated notes payable, were $22.8 million at September 30, 2002. Cash and cash equivalents totaled $600,000 as of September 30, 2002.
On August 29, 2002, SPACEHAB entered into an agreement with a new financial institution to provide a $5.0 million working capital line of credit to replace the Company’s previous credit facility that was repaid and expired on July 31, 2002. The term of this new credit facility is through June 30, 2005.
SPACEHAB is preparing for the STS-107 Space Shuttle mission which will debut the Company’s new Research Double Module on January 16, 2003. In the first quarter of fiscal 2003 SPACEHAB completed negotiations with NASA for a $12.75 million equitable adjustment through January 31, 2003 to compensate for additional services provided to NASA on this critical research mission. This latest equitable adjustment brings the total contract value of this mission to approximately $99.0 million.
NASA notified SPACEHAB’s Johnson Engineering subsidiary that the Company made the competitive range on the re-competition of the Neutral Buoyancy Laboratory/Space Vehicle Mockup Facility (NBL/SVMF) contract. With an award expected at the end of the calendar year, this contract could exceed $20 million per year for up to five years. Johnson Engineering currently manages this facility operations and maintenance effort for NASA, supporting astronaut training activities at the Johnson Space Center. NASA extended the current NBL/SVMF contract through December 2002, increasing the contract value by more than $8.3 million.
Johnson Engineering also submitted a proposal in support of NASA’s Bioastronautics activities that include clinical laboratory management, biotechnology development, biomedical engineering, and flight hardware fabrication in support of the Space Shuttle and International Space Station programs. With an award expected in early 2003, the ten-year contract value is estimated at approximately $400 million.
SPACEHAB subsidiary, Astrotech Space Operations, was awarded a contract in the first quarter of fiscal 2003 through NASA’s Kennedy Space Center to provide payload processing services for the ICESat/CHIPSat mission at Vandenberg Air Force Base. This award opens up new opportunities for Astrotech, a company that has typically supported only commercial customers. Astrotech also received a new contract to provide payload processing services on Spectrum Astro’s Coriolis spacecraft built for the United States Air Force.
Through SPACEHAB’s Space Media subsidiary, The Space Store, an online retail operation geared toward the space enthusiast, has experienced recent increased sales due to online and consumer advertising. The STARS Academy is preparing for the January STS-107 mission where school students from six countries, including Australia, China, Israel, Japan, Liechtenstein, and the United States, will gather in Florida to load and launch their education experiments into space.
“We are exceeding our operating plan projections and continuing to build a solid foundation toward profitability,” said Dr. Shelley A. Harrison, SPACEHAB Chairman and Chief Executive Officer.
With more than $100 million in annual revenue, SPACEHAB, Incorporated 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 provides orbiter crew compartment integration, ISS stowage and configuration management, supports astronaut training, and builds space-flight mockup trainers at NASA's Johnson Space Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial satellite processing services at facilities in California and Florida. 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:| Kimberly
Campbell Director of Marketing SPACEHAB, Inc. -- Headquarters Office Phone 713.558.5049 Fax 713.558.5960 campbell@spacehab.com |
Julia A. 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 Friday November 8, 2002, at: http://www.firstcallevents.com/service/ajwz368716903gf12.html.
Tables follow
SPACEHAB, INCORPORATED
AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
| Three Months | |||||
| (In thousands, except share data) | Ended September 30, | ||||
| 2002 | 2001 | ||||
| Revenue | $26,812 | $22,292 | |||
| Costs of revenue | 21,634 | 19,866 | |||
| Gross profit | 5,178 | 2,426 | |||
| Operating expenses | |||||
| ннннн Selling, general and administrative | 3,414 | 4,936 | |||
| ннннн Research and development | 14 | 18 | |||
| нннннннннн Total operating expenses | 3,428 | 4,954 | |||
| нннннннннн Income (loss) from operations | 1,750 | -2,528 | |||
| Interest expense, net of capitalized amounts | -1,859 | -1,435 | |||
| Interest and other income net | 9 | 1141 | |||
| нннннннннн Loss before income taxes | -100 | -2822 | |||
| Income tax benefit (expense) | 6 | -28 | |||
| нн Net loss | ($94) | ($2,850) | |||
| Loss per share: | |||||
| Loss per share -- basic and diluted | ($0.01) | ($0.24) | |||
| Shares used in computing netн | |||||
| нн loss per share ё basic and diluted | 12,154,465 | 11,647,709 | |||
SPACEHAB, INCORPORATED
AND SUBSIDIARIES
Selected Financial Data by Segment
| (in thousands) | ||||
| Three Months Ended September 30, 2002 | ||||
Pre-Tax |
Net |
Depreciation |
||
Income |
Fixed |
And |
||
Revenue |
(Loss) |
Assets |
Amortization |
|
| Flight Services | $12,367 | ($1,006) | $122,096 | $2,150 |
| Johnson Engineering | 11,274 | 699 | 1,156 | 271 |
| Astrotech | 2,846 | 318 | 49,477 | 525 |
| Space Media | 124 | -82 | 64 | 65 |
| All Other | 201 | -29 | нннннннннннннннннннн - | ннннннннннннннннннннн - |
| $26,812 | ($100) | $172,793 | $3,011 | |
| Three Months Ended September 30, 2001 | ||||
Pre-Tax |
Net |
Depreciation |
||
Income
|
Fixed |
And |
||
Revenue |
(Loss) |
Assets |
Amortization |
|
| Flight Services | $9,602 | ($3,537) | $133,577 | $2,664 |
| Johnson Engineering | 10,175 | 402 | 2,034 | 391 |
| Astrotech | 2,246 | 1,637 | 43,259 | 224 |
| Space Media | 124 | -596 | 53 | 83 |
| All Other | 145 | -728 | нннннннннннннннннн - | ннннннннннннннннннн - |
| $22,292 | ($2,822) | $178,923 | $3,362 | |
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