Full Press Release Details
ASTROTECH REPORTS RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2010
| Astrotech Space Operations ( ASO ), the Company s core business, supported three missions which launched in the fourth quarter 2010, notably RSC-Energia s Mini Research Module 1 ( MRM-1 ) which launched on STS-132 and the Air Force s X-37B OTV | |||
| Positive GAAP earnings for the second consecutive fiscal year | |||
| GAAP cash flow of $3.4 million the year ended June 30, 2010 resulting in $8.1 million in cash and cash equivalents at June 30, 2010 | |||
| EBITDA of $3.3 million for the year ended June 30, 2010 |
Austin, Texas, August 30, 2010 Astrotech Corporation (NASDAQ: ASTC), a leading provider of
commercial space services, today announced financial results for its fourth quarter and fiscal year
ended June 30, 2010.
Astrotech has completed another strong year, supporting our customers on twelve missions at our
facilities near Cape Canaveral and on Vandenberg Air Force Base, said Thomas B. Pickens III,
Chairman and CEO of Astrotech. Additionally, we progressed steadily in the development of
1st Detect s Miniature Chemical Detector, while furthering our experience processing
experiments in space utilizing the Astrogenetix Microgravity Processing Platform ( AMPP ). I am
pleased that the Company begins fiscal year 2011 in solid financial position, with more than $8
million in cash on hand.
Fourth Quarter Results
The Company posted a fourth quarter fiscal year 2010 net loss of $1.6 million, or $(0.10) per
diluted share on revenue of $5.5 million compared with a fourth quarter fiscal year 2009 net income
of $2.6 million, or $0.15 per diluted share on revenue of $10.4 million.
Astrotech s net income for the fiscal year ended June 30, 2010 was $0.3 million, or $0.01 per
diluted share on revenue of $28.0 million compared to net income of $4.7 million, or $0.28 per
diluted share on revenue of $32.0 million for the prior fiscal year.
Update of Ongoing Operations
The Company s 18-month rolling backlog, which includes contractual backlog and scheduled but
uncommitted missions, was $24.9 million at June 30, 2010. The majority of the backlog is for ASO
pre-launch satellite processing services, which include hardware launch preparation; advanced
planning; use of unique satellite preparation facilities; and spacecraft checkout, encapsulation,
fueling, transport, and command and control through launch.
In addition to providing support for missions in process at our facilities in Florida and
California, ASO supported three successful launches during the fourth quarter. Most notably was
the Air Force s X-37B Orbital Test Vehicle and RSC-Energia s MRM-1, a research and service module
for the International Space Station, which launched on board Space Shuttle Atlantis on STS-132.
The Company continues development of 1st Detect s Miniature Chemical Detector; a highly
accurate, lightweight, battery-powered, durable and inexpensive chemical detector based on mass
spectrometry. Additionally, Astrogenetix is in the process of developing products from
microgravity discoveries with a focus on vaccines for Salmonella and Methicillin-resistant
Staphylococcus aureus (MRSA). Astrogenetix completed its tenth microgravity research mission on
NASA s STS-132 in the fourth quarter of fiscal 2010.
Financial Position and Liquidity
Working capital was $2.6 million as of June 30, 2010, which included $8.1 million in cash and $5.7
million of accounts receivable. Of the $8.1 million in cash at June 30, 2010, $0.5 million was
obligated to funding the development of the Miniature Chemical Detector. Included in current
liabilities are the Company s $5.1 million of senior convertible notes and $3.4 million term loan,
which have scheduled maturity in the next twelve months.
About Astrotech Corporation
Astrotech is one of the first space commerce companies and remains a strong entrepreneurial force
in the aerospace industry. We are leaders in identifying, developing and marketing space
technology for commercial use. Our Astrotech Space Operations (ASO) business unit serves our
government and commercial satellite and spacecraft customers with pre-launch services on the
eastern and western range. 1st Detect Corporation is developing what we believe is a breakthrough
miniature chemical detector, while Astrogenetix, Inc. is a biotechnology company utilizing
microgravity as a research platform for drug discovery and development.
This press release contains forward-looking statements that are made pursuant to the Safe Harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks, trends, and uncertainties that could cause actual results to be materially
different from the forward-looking statement. These factors include, but are not limited to,
continued government support and funding for key space programs, the ability to expand ASO, product
performance and market acceptance of products and services, as well as other risk factors and
business considerations described in the Company s Securities and Exchange Commission filings
including the annual report on Form 10-K. Any forward-looking statements in this document should be
evaluated in light of these important risk factors. The Company assumes no obligation to update
these forward-looking statements.
FOR MORE INFORMATION:
Corporate Marketing and Communications
Astrotech Corporation
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months | Twelve Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 5,490 | $ | 10,377 | $ | 27,979 | $ | 31,985 | ||||||||
| Costs of revenue | 3,896 | 4,130 | 12,858 | 15,723 | ||||||||||||
| Gross profit | 1,594 | 6,247 | 15,121 | 16,262 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,655 | 3,240 | 12,170 | 9,760 | ||||||||||||
| Research and development | 679 | 694 | 2,798 | 2,330 | ||||||||||||
| Total operating expenses | 3,334 | 3,934 | 14,968 | 12,090 | ||||||||||||
| Income (loss) from operations | (1,740 | ) | 2,313 | 153 | 4,172 | |||||||||||
| Gain on notes repurchased | 665 | |||||||||||||||
| Interest and other expense, net | (93 | ) | (293 | ) | (459 | ) | (622 | ) | ||||||||
| Income (loss) before income taxes | (1,833 | ) | 2,020 | (306 | ) | 4,215 | ||||||||||
| Income tax expense | 603 | (22 | ) | 510 | ||||||||||||
| Net income (loss) | (1,833 | ) | 2,623 | (328 | ) | 4,725 | ||||||||||
| Less: Net loss attributable to noncontrolling interest* | (262 | ) | (588 | ) | ||||||||||||
| Net income (loss) attributable to Astrotech Corp | $ | (1,571 | ) | $ | 2,623 | $ | 260 | $ | 4,725 | |||||||
| Net income (loss) per share, basic | $ | (0.09 | ) | $ | 0.16 | $ | 0.02 | $ | 0.29 | |||||||
| Net income (loss) per share, diluted | $ | (0.10 | ) | $ | 0.15 | $ | 0.01 | $ | 0.28 |
*Noncontrolling interest resulted from grants of restricted stock in 1st Detect and
Astrogenetix to certain employees, officers and directors. Please refer to the June 30, 2010 10-K
filed with the Securities and Exchange Commission for further detail.
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
| June 30, | ||||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 8,085 | $ | 4,730 | ||||
| Accounts receivable, net | 5,676 | 12,279 | ||||||
| Short-term note receivable, net | 675 | |||||||
| Prepaid expenses and other current assets | 528 | 591 | ||||||
| Total current assets | 14,964 | 17,600 | ||||||
| Property, plant, and equipment, net | 39,920 | 40,226 | ||||||
| Other assets, net | 19 | 1,093 | ||||||
| Total assets | $ | 54,903 | $ | 58,919 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current liabilities | $ | 12,341 | 9,182 | |||||
| Long-term liabilities | 350 | 9,189 | ||||||
| Stockholders equity | 42,212 | 40,548 | ||||||
| Total liabilities and stockholders equity | $ | 54,903 | $ | 58,919 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization
| Three Months | Twelve Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| EBITDA | $ | (981 | ) | $ | 2,922 | $ | 3,266 | $ | 6,719 | |||||||
| Depreciation amortization | 534 | 522 | 2,135 | 2,209 | ||||||||||||
| Interest and other expense, net | 93 | 293 | 459 | 622 | ||||||||||||
| Equity compensation | 225 | 87 | 978 | 338 | ||||||||||||
| Gain on notes repurchased | (665 | ) | ||||||||||||||
| Income tax expense (benefit) | (603 | ) | 22 | (510 | ) | |||||||||||
| Net income (loss) | (1,833 | ) | 2,623 | (328 | ) | 4,725 | ||||||||||
| Net loss attributable to noncontrolling interest | (262 | ) | (588 | ) | ||||||||||||
| Net income (loss) attributable to Astrotech Corp. | $ | (1,571 | ) | $ | 2,623 | $ | 260 | $ | 4,725 |
EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-U.S. GAAP
financial measure. We included information concerning EBITDA because we use such information when
evaluating operating earnings (loss) to better evaluate the underlying performance of the Company.
EBITDA does not represent, and should not be considered an alternative to, net income (loss),
operating earnings (loss), or cash flow from operations as those terms are defined by U.S. GAAP and
does not necessarily indicate whether cash flows will be sufficient to fund cash needs. While
EBITDA is frequently used as measures of operations and the ability to meet debt service
requirements by other companies, our use of this financial measure is not necessarily comparable to
such other similarly titled captions of other companies.