Full Press Release Details
ASTROTECH REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS
Austin, Texas, February 04, 2011 Astrotech Corporation (NASDAQ: ASTC), a leading provider of
commercial aerospace services, today announced financial results for its fiscal year 2011 second
quarter ended December 31, 2010.
Second Quarter Results
The Company posted a second quarter fiscal year 2011 net loss of $1.6 million, or $(0.09) per
diluted share on revenue of $4.6 million compared with a second quarter fiscal year 2010 net income
of $1.7 million, or $0.09 per diluted share on revenue of $8.1 million.
While we navigate through a slower launch schedule in fiscal 2011, we continue to maintain focus
on controlling costs, said Thomas B. Pickens III, Chairman and Chief Executive Officer of
Astrotech. I am pleased that we were able to build for the future, adding the previously
announced NASA NPOESS and Navy MUOS contracts to our backlog.
Update of Ongoing Operations
The Company s 18-month rolling backlog, which includes contractual backlog and scheduled but
uncommitted missions, was $24.4 million at December 31, 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 the successful launch of COSMO-SkyMed 4; the final satellite of the
Italian built Constellation of Small Satellites for Mediterranean Basin Observation. The successful
launch was conducted on a United Launch Alliance Delta II rocket on
Additionally, the Company secured two new contracts for the ASO business unit in the second quarter
which were previously announced. The first award was a fully-funded task order under the
Vandenberg Air Force Base (VAFB) indefinite delivery, indefinite quantity (IDIQ) contract in
support of NASA s National Polar-orbiting Operational Environmental Satellite System (NPOESS)
Preparatory Project (NPP) mission scheduled to launch in October 2011. The second contract was
from the Department of
the Navy Space and Naval Warfare Systems Command for payload processing services in support of
the Mobile User Objective System (MUOS) Program, representing up to five satellite launches.
Financial Position and Liquidity
Working capital was $6.8 million as of December 31, 2010, which included $7.2 million in cash and
$2.5 million in accounts receivable. As previously announced,
the $5.1 million of Senior Convertible Notes were retired in October
2010. The Company paid the $5.1 million of principal, plus accrued
interest of $0.1 million, on the Senior Convertible Notes at the
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 United States government support and funding for key space programs, the ability to
expand and maintain ASO, development of novel products and market acceptance of products and
services, the continued availability of capital, 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 | Six Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 4,641 | $ | 8,080 | $ | 9,947 | $ | 15,842 | ||||||||
| Cost of revenue | 3,438 | 2,674 | 6,924 | 5,602 | ||||||||||||
| Gross profit | 1,203 | 5,406 | 3,023 | 10,240 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,119 | 3,270 | 4,426 | 6,345 | ||||||||||||
| Research and development | 883 | 328 | 1,706 | 1,002 | ||||||||||||
| Total operating expenses | 3,002 | 3,598 | 6,132 | 7,347 | ||||||||||||
| Income (loss) from operations | (1,799 | ) | 1,808 | (3,109 | ) | 2,893 | ||||||||||
| Interest and other expense, net | (35 | ) | (79 | ) | (138 | ) | (339 | ) | ||||||||
| Income (loss) before income taxes | (1,834 | ) | 1,729 | (3,247 | ) | 2,554 | ||||||||||
| Income tax expense | (5 | ) | (50 | ) | (11 | ) | (75 | ) | ||||||||
| Net income (loss) | (1,839 | ) | 1,679 | (3,258 | ) | 2,479 | ||||||||||
| Less: Net loss attributable to noncontrolling interest* | 277 | 534 | ||||||||||||||
| Net income (loss) attributable to Astrotech Corporation | $ | (1,562 | ) | $ | 1,679 | $ | (2,724 | ) | $ | 2,479 | ||||||
| Net income (loss) per share attributable to Astrotech Corporation, basic | $ | (0.09 | ) | $ | 0.10 | $ | (0.15 | ) | $ | 0.15 | ||||||
| Net income (loss) per share attributable to Astrotech Corporation , diluted | $ | (0.09 | ) | $ | 0.09 | $ | (0.15 | ) | $ | 0.14 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
| December 31, | June 30, | |||||||
| 2010 | 2010 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 7,210 | $ | 8,085 | ||||
| Accounts receivable, net | 2,502 | 5,676 | ||||||
| Short-term note receivable, net | 675 | |||||||
| Prepaid expenses and other current assets | 750 | 528 | ||||||
| Total current assets | 10,462 | 14,964 | ||||||
| Property, plant, and equipment, net | 39,229 | 39,920 | ||||||
| Other assets, net | 917 | 19 | ||||||
| Total assets | $ | 50,608 | $ | 54,903 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities | $ | 3,625 | 12,341 | |||||
| Long-term liabilities | 7,128 | 350 | ||||||
| Stockholders equity | 39,855 | 42,212 | ||||||
| Total liabilities and stockholders equity | $ | 50,608 | $ | 54,903 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization
| Three Months | Six Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| EBITDA | $ | (1,245 | ) | $ | 2,334 | $ | (2,005 | ) | $ | 3,959 | ||||||
| Depreciation amortization | 554 | 526 | 1,104 | 1,066 | ||||||||||||
| Interest and other expense, net | 35 | 79 | 138 | 339 | ||||||||||||
| Income tax expense | 5 | 50 | 11 | 75 | ||||||||||||
| Net income (loss) | (1,839 | ) | 1,679 | (3,258 | ) | 2,479 | ||||||||||
| Net loss attributable to noncontrolling interest | (277 | ) | (534 | ) | ||||||||||||
| Net income (loss) attributable to Astrotech Corporation | $ | (1,562 | ) | $ | 1,679 | $ | (2,724 | ) | $ | 2,479 |
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.