Full Press Release Details
ASTROTECH REPORTS THIRD QUARTER 2011 FINANCIAL RESULTS
| Astrotech Space Operations ( ASO ), the Company s core business, supported three missions which launched in the third quarter 2011; a U.S. government payload, Glory and X37-B | |||
| GAAP net loss of $0.4 million (attributable to Astrotech Corporation) on revenue of $5.7 million, up 71% and 23%, respectively, compared to the prior quarter | |||
| Astrogenetix flew its eleventh scientific payload in microgravity aboard STS-133 with research targeted on discovering a vaccine candidate for methicillin-resistant Staphylococcus aureus (MRSA) |
Austin, Texas, May 02, 2011 Astrotech Corporation (NASDAQ: ASTC), a leading provider of
commercial aerospace services, today announced financial results for its fiscal year 2011 third
quarter ended March 31, 2011.
Third Quarter Results
Company posted a third quarter fiscal year 2011 net loss of $0.4 million, or $(0.02) per
diluted share on revenue of $5.7 million compared with a third quarter fiscal year 2010 net loss of
$0.6 million, or $(0.04) per diluted share on revenue of $6.6 million.
We supported critical missions for the U.S. government during the third quarter of 2011 in
Titusville, FL and at Vandenberg Air Force Base in California, said Thomas B. Pickens III,
Chairman and Chief Executive Officer of Astrotech. As we operate through a slower launch schedule
in the fourth quarter, we will continue working to control SG A expenses, which we have reduced by
more than $3.1 million for the nine months ended March 31, 2011(as compared to the nine months
ended March 31, 2010).
Update of Ongoing Operations
The Company s 18-month rolling backlog, which includes contractual backlog and scheduled but
uncommitted missions, was $24.5 million at March 31, 2011. 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 launches of a U.S. Government payload, NASA s Glory spacecraft and
the second launch of the Air Force s X37-B during the quarter.
Additionally, the Company s Astrogenetix subsidiary completed its eleventh scientific research
mission in microgravity. This unprecedented access to the unique environment of space has provided
the Company an opportunity to identify genetic targets for the development of vaccines for
MRSA. Astrogenetix has focused its efforts on the flight based research that has been made
available through the shuttle program over the last three years.
Financial Position and Liquidity
capital was $6.6 million at March 31, 2011, which included $7.5 million in cash and $3.0
million of accounts receivable. The commercial bank debt included $0.3 million classified in short
term liabilities, and $6.5 million in long term liabilities at March 31, 2011. The $3.0 million
line of credit was not used during the fiscal third quarter 2011.
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, the
availability of capital for reinvestment in growth initiatives, 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
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 | Nine Months | |||||||||||||||
| Ended March 31, | Ended March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue | $ | 5,720 | $ | 6,647 | $ | 15,667 | $ | 22,489 | ||||||||
| Cost of revenue | 3,142 | 3,360 | 10,066 | 8,962 | ||||||||||||
| Gross profit | 2,578 | 3,287 | 5,601 | 13,527 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 1,941 | 3,170 | 6,367 | 9,515 | ||||||||||||
| Research and development | 1,256 | 1,117 | 2,962 | 2,119 | ||||||||||||
| Total operating expenses | 3,197 | 4,287 | 9,329 | 11,634 | ||||||||||||
| Income (loss) from operations | (619 | ) | (1,000 | ) | (3,728 | ) | 1,893 | |||||||||
| Interest and other expense, net | (70 | ) | (26 | ) | (208 | ) | (366 | ) | ||||||||
| Income (loss) before income taxes | (689 | ) | (1,026 | ) | (3,936 | ) | 1,527 | |||||||||
| Income tax (expense) benefit | (5 | ) | 53 | (16 | ) | (22 | ) | |||||||||
| Net income (loss) | (694 | ) | (973 | ) | (3,952 | ) | 1,505 | |||||||||
| Less: Net loss attributable to noncontrolling interest* | (248 | ) | (326 | ) | (781 | ) | (326 | ) | ||||||||
| Net income (loss) attributable to Astrotech Corporation | $ | (446 | ) | $ | (647 | ) | $ | (3,171 | ) | $ | 1,831 | |||||
| Net income (loss) attributable to Astrotech Corporation per share, basic | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | 0.11 | |||||
| Net income (loss) attributable to Astrotech Corporation per share, diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | 0.10 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
| March 31, | June 30, | |||||||
| 2011 | 2010 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 7,489 | $ | 8,085 | ||||
| Accounts receivable, net | 3,018 | 5,676 | ||||||
| Prepaid expenses and other current assets | 1,098 | 1,203 | ||||||
| Total current assets | 11,605 | 14,964 | ||||||
| Property, plant, and equipment, net | 38,867 | 39,920 | ||||||
| Other assets, net | 887 | 19 | ||||||
| Total assets | $ | 51,359 | $ | 54,903 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities | $ | 4,999 | 12,341 | |||||
| Long-term liabilities | 7,041 | 350 | ||||||
| Stockholders equity | 39,319 | 42,212 | ||||||
| Total liabilities and stockholders equity | $ | 51,359 | $ | 54,903 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization
| Three Months | Nine Months | |||||||||||||||
| Ended March 31, | Ended March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| EBITDA | $ | (49 | ) | $ | (359 | ) | $ | (2,054 | ) | $ | 3,494 | |||||
| Depreciation amortization | 570 | 535 | 1,674 | 1,601 | ||||||||||||
| Interest and other expense, net | 70 | 26 | 208 | 366 | ||||||||||||
| Income tax expense | 5 | 53 | 16 | 22 | ||||||||||||
| Net income (loss) | (694 | ) | (973 | ) | (3,952 | ) | 1,505 | |||||||||
| Net loss attributable to noncontrolling interest | (248 | ) | (326 | ) | (781 | ) | (326 | ) | ||||||||
| Net income (loss) attributable to Astrotech Corporation | $ | (446 | ) | $ | (647 | ) | $ | (3,171 | ) | $ | 1,831 |
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 income (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 income (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 a measure of operations and/or as a measure of the Company s ability
to meet debt service requirements, our use of this financial measure is not necessarily comparable
to other similarly titled captions of other companies.