Full Press Release Details
ASTROTECH REPORTS FIRST QUARTER 2015 FINANCIAL
Quarterly Highlights
Austin, Texas, November 14, 2014 -
Astrotech Corporation (NASDAQ: ASTC), a premier developer of innovative chemical detection technologies for use in the research,
security, industrial, process flow and healthcare markets, today announced financial results for its first quarter ended September
"I want to begin by saying that
the sale of Astrotech Space Operations to Lockheed Martin went extremely well, and I would like to commend both the Astrotech
and Lockheed M&A teams for concluding an absolutely flawless transaction. The executive staff at Astrotech internally sourced
the transaction and managed all of our own negotiations, the structure of the asset sale, tax considerations, contracts and the
post sale transition resulting in receiving an excellent price for our shareholders. With the conclusion of this transaction we
begin a new era to grow the company with well seasoned leadership and ample resources. At the base of our growth is the Company's
investment in our 1st Detect subsidiary where we have made excellent progress with our mass spectrometer technology.
Our recently announced award from the military's Next Generation Chemical Detector program represents a big win as our technology
was chosen over the best the world has to offer. We have also recently introduced the iONTRAC factory floor in-process monitor
at the Gulf Coast Conference, winning bronze in their New Product Showcase. The iONTRAC is designed to pursue the many opportunities
controlling processes and quality throughout numerous factory floor industrial applications," said Thomas B. Pickens
III, Chairman and CEO of Astrotech Corporation. "Additionally, we are actively seeking acquisitions along with complementary
and new technology commercialization opportunities."
First Quarter Results
The Company posted first quarter fiscal year
2015 net income of $23.3 million, or $1.16 per diluted share, which was primarily the result of a $25.6 million gain ($23.7
million after-tax) related to the sale of our former ASO business to Lockheed Martin, compared with a first quarter fiscal year
2014 net income of $1.3 million or $0.06 per diluted share.
Financial Position and Liquidity
Working capital was $44.1 million as of
September 30, 2014, which primarily consisted of $45.3 million in cash and cash equivalents, and a working capital holdback receivable
of $0.6 million related to the sale of our former ASO business. Additionally, the Company recorded a receivable of $6.1 million
for an indemnity holdback related to the sale. The Company believes it will fully realize the indemnity holdback in February 2016.
About Astrotech Corporation
Astrotech is a leader in identifying and commercializing
space technology for terrestrial use. 1st Detect Corporation is developing a breakthrough miniaturized mass spectrometer,
the MMS-1000 , while Astrogenetix, Inc. is a biotechnology company utilizing microgravity as a research platform for drug
discovery and development. Both are wholly owned subsidiaries of the parent.
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, our ability to successfully develop our remaining Spacetech
business unit, our ability to develop and integrate our miniaturized mass spectrometer, the MMS-1000 , product performance
and market acceptance of products and services, as well as other risk factors and business considerations. Any forward-looking
statements in this document should be evaluated in light of these important risk factors. Astrotech assumes no obligation to update
these forward-looking statements.
FOR MORE INFORMATION:
Chief Financial Officer
Astrotech Corporation
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended September 30, | ||||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| Revenue | $ | 320 | $ | - | ||||
| Cost of revenue | 277 | - | ||||||
| Gross profit | 43 | - | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 1,960 | 1,551 | ||||||
| Research and development | 692 | 805 | ||||||
| Total operating expenses | 2,652 | 2,356 | ||||||
| Loss from operations | (2,609 | ) | (2,356 | ) | ||||
| Interest and other expense, net | 12 | 12 | ||||||
| Loss from continuing operations before income taxes | (2,597 | ) | (2,344 | ) | ||||
| Income tax benefit | 1,325 | 1,173 | ||||||
| Loss from continuing operations | (1,272 | ) | (1,171 | ) | ||||
| Discontinued operations | ||||||||
| Income from operation of ASO business (including gain from sale of $25.6 million) | 26,933 | 3,352 | ||||||
| Income tax expense | (2,378 | ) | (1,173 | ) | ||||
| Income from discontinued operations | 24,555 | 2,179 | ||||||
| Net income | 23,283 | 1,008 | ||||||
| Less: Net loss attributable to noncontrolling interest* | - | (245 | ) | |||||
| Net income attributable to Astrotech Corporation | $ | 23,283 | $ | 1,253 | ||||
| Amounts attributable to Astrotech Corporation: | ||||||||
| Income (loss) from continuing operations, net of tax | $ | (1,272 | ) | $ | (926 | ) | ||
| Income from discontinued operations, net of tax | 24,555 | 2,179 | ||||||
| Net income attributable to Astrotech Corporation | $ | 23,283 | $ | 1,253 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 19,548 | 19,470 | ||||||
| Basic and diluted net income (loss) per common share: | ||||||||
| Net income (loss) attributable to Astrotech Corporation from continuing operations | $ | (0.09 | ) | $ | (0.05 | ) | ||
| Net income from discontinued operations | 1.25 | 0.11 | ||||||
| Net income attributable to Astrotech Corporation | $ | 1.16 | $ | 0.06 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| September 30, | June 30, | |||||||
| 2014 | 2014 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 45,271 | $ | 3,831 | ||||
| Accounts receivable, net of allowance | 327 | 59 | ||||||
| Prepaid expenses and other current assets | 1,132 | 389 | ||||||
| Discontinued operations - current assets | - | 1,405 | ||||||
| Total current assets | 46,730 | 5,684 | ||||||
| Property and equipment, net | 1,168 | 1,211 | ||||||
| Indemnity receivable | 6,100 | - | ||||||
| Discontinued operations - net of current assets | - | 33,887 | ||||||
| Total assets | $ | 53,998 | $ | 40,782 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 217 | $ | 996 | ||||
| Accrued liabilities and other | 1,326 | 1,753 | ||||||
| Income tax payable | 1,053 | - | ||||||
| Discontinued operations - current liabilities | - | 7,344 | ||||||
| Total current liabilities | 2,596 | 10,093 | ||||||
| Other liabilities | 148 | 152 | ||||||
| Discontinued operations - net of current liabilities | - | 237 | ||||||
| Total liabilities | 2,744 | 10,482 | ||||||
| Total stockholders' equity | 51,254 | 30,300 | ||||||
| Total liabilities and stockholders' equity | $ | 53,998 | $ | 40,782 |
ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation
| Three Months Ended September 30, | ||||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| Adjusted EBITDA from continuing operations including gain from the sale of ASO business | $ | 23,122 | $ | (2,261 | ) | |||
| Gain from sale of ASO business | 25,630 | - | ||||||
| EBITDA from continuing operations | $ | (2,508 | ) | $ | (2,261 | ) | ||
| Depreciation & amortization | 89 | 83 | ||||||
| Interest expense | - | - | ||||||
| Income tax benefit | (1,325 | ) | (1,173 | ) | ||||
| Loss from continuing operations | $ | (1,272 | ) | $ | (1,171 | ) |
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.