Full Press Release Details
ASTROTECH REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS
Austin, Texas, November 5, 2010 Astrotech Corporation (NASDAQ: ASTC), a leading provider of
commercial aerospace services, today announced financial results for its fiscal year 2011 first
quarter ended September 30, 2010.
Over the last six months we have worked to improve our competitive position through cost cutting
measures, debt restructuring and increasing our cash on hand, said Thomas B. Pickens III, Chairman
and Chief Executive Officer of Astrotech. As a service provider to the U.S. Government, we value
the benefits of a solid customer base, both operationally and financially. Our reliance on the
launch schedule of our customers causes ASO to experience variability quarterly and from year to
year in our financial results. As we begin fiscal 2011, we are entering a period where we expect
less launch activity than in previous years and where we no longer have the benefit of revenue from
the construction of the facility at Vandenberg Air Force Base. In an effort to keep Astrotech in a
strong financial position we are reducing costs and working diligently to increase future business
First Quarter Results
The Company posted a first quarter fiscal year 2011 net loss of $1.2 million, or $(0.07) per
diluted share on revenue of $5.3 million compared with a first quarter fiscal year 2010 net income
of $0.8 million, or $0.04 per diluted share on revenue of $7.8 million.
Update of Ongoing Operations
The Company s 18-month rolling backlog, which includes contractual backlog and scheduled but
uncommitted missions, was $19.9 million at September 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 two successful launches during the first quarter. Most notable was the
Air Force s Advanced
Extremely High Frequency -1 (AEHF-1) launched on a United Launch Alliance Atlas V rocket and the
Air Force s Space Based Space Surveillance (SBSS) satellite launch on an Orbital Sciences Minotaur
1st Detect was awarded a Small Business Innovation Research (SBIR) Phase II contract for
$735,000 from the Joint Science and Technology Office for Chemical and Biological Defense in the
quarter ended September 30, 2010. The funds from the contract will be used to design and develop a
novel sample inlet system intended to significantly improve the sensitivity of mass spectrometers
used for chemical detection in the field.
Financial Position and Liquidity
Working capital was $2.9 million as of September 30, 2010, which included $9.7 million in cash and
$4.7 million of accounts receivable. Of the $9.7 million in cash at September 30, 2010, $0.1
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.
Subsequent to quarter end, the Company paid off the $5.1 million of its senior convertible notes
which were included in current liabilities at September 30, 2010. Additionally, ASO entered into a
financing arrangement on October 21, 2010 with a commercial bank that allows the Company to borrow
up to $10.0 million. The proceeds of the loan agreement were used to pay off the existing
commercial debt and will fund future working capital needs. The financing arrangement includes a
$7.0 million term loan and a $3.0 million revolving credit facility, both at floating rates of bank
prime plus 0.25% (with a 4.00% floor).
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
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months | ||||||||
| Ended September 30, | ||||||||
| 2010 | 2009 | |||||||
| (unaudited) | ||||||||
| Revenue | $ | 5,306 | $ | 7,762 | ||||
| Costs of revenue | 3,486 | 2,928 | ||||||
| Gross profit | 1,820 | 4,834 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 2,307 | 3,075 | ||||||
| Research and development | 823 | 674 | ||||||
| Total operating expenses | 3,130 | 3,749 | ||||||
| Income (loss) from operations | (1,310 | ) | 1,085 | |||||
| Interest and other expense, net | (103 | ) | (260 | ) | ||||
| Income (loss) before income taxes | (1,413 | ) | 825 | |||||
| Income tax expense | (6 | ) | (25 | ) | ||||
| Net income (loss) | (1,419 | ) | 800 | |||||
| Less: Net loss attributable to noncontrolling interest* | 256 | |||||||
| Net income (loss) attributable to Astrotech Corp | $ | (1,163 | ) | $ | 800 | |||
| Net income (loss) per share, basic | $ | (0.07 | ) | $ | 0.05 | |||
| Net income (loss) per share, diluted | $ | (0.07 | ) | $ | 0.04 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| September 30, | June 30, | |||||||
| 2010 | 2010 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 9,686 | $ | 8,085 | ||||
| Accounts receivable, net | 4,746 | 5,676 | ||||||
| Short-term note receivable, net | 675 | 675 | ||||||
| Prepaid expenses and other current assets | 804 | 528 | ||||||
| Total current assets | 15,911 | 14,964 | ||||||
| Property, plant, and equipment, net | 39,479 | 39,920 | ||||||
| Other assets, net | 7 | 19 | ||||||
| Total assets | $ | 55,397 | $ | 54,903 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities | $ | 13,060 | 12,341 | |||||
| Long-term liabilities | 948 | 350 | ||||||
| Stockholders equity | 41,389 | 42,212 | ||||||
| Total liabilities and stockholders equity | $ | 55,397 | $ | 54,903 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization
| Three Months | ||||||||
| Ended September 30, | ||||||||
| 2010 | 2009 | |||||||
| (unaudited) | ||||||||
| EBITDA | $ | (760 | ) | $ | 1,625 | |||
| Depreciation amortization | 550 | 540 | ||||||
| Interest and other expense, net | 103 | 260 | ||||||
| Income tax expense | 6 | 25 | ||||||
| Net income (loss) | (1,419 | ) | 800 | |||||
| Net loss attributable to noncontrolling interest | (256 | ) | ||||||
| Net income (loss) attributable to Astrotech Corporation | $ | (1,163 | ) | $ | 800 |
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.