Full Press Release Details
| Exhibit 99.1 | ||
| SPACEHAB, Inc. | ||
| 12130 Highway 3, Bldg. 1 | ||
| Webster, Texas 77598-1504 | ||
| 1.713.558.5000 | ||
| fax: 1.713.558.5960 | ||
| www.spacehab.com |
REPORTS FINANCIAL RESULTS FOR SECOND QUARTER FISCAL YEAR 2007
Houston, Texas, February 13, 2007
SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space
services, today announced financial results for the second quarter ended
December 31, 2006 of its fiscal year 2007.
Second Quarter Results
posted a second quarter fiscal 2007 net loss of $1.8 million, or $0.14 per
share, on revenue of $12.9 million compared with a second quarter fiscal 2006
net loss of $8.9 million, or $0.70 per share, on revenue of $11.8 million.
Included in the prior year s second quarter results was a non-cash charge of
$6.3 million when the Company wrote down the book value of one of its two
laboratory and cargo modules and changed the depreciable life of the other
the quarter we saw the successful launch and landing of the STS-116 space
shuttle mission, said Brian K. Harrington, SPACEHAB Chief Financial Officer. During
this mission NASA used our logistics module and cargo carrier to ferry more
than 9,200 pounds of hardware, equipment, and provisions on this complex
International Space Station assembly mission.
Additionally, Lockheed
Martin s guaranteed mission contract with the Company allowed for Astrotech to
contract with other Atlas launch providers which resulted in a $2.6 million
reduction in revenue under the Lockheed Martin contract during the period
ending December 31, 2006. As a result of this contract clause, Astrotech will
process three Atlas non-Lockheed Martin missions for Boeing. One of these missions
is currently being processed at the Titusville, Florida facilities and is
scheduled to launch mid-February 2007. The remaining two missions are scheduled
for processing in late 2007.
also completed the sale of its retail and internet business, The Space Store,
to a private investor, and sold its Destiny module
mockup to the Seattle Museum of Flight.
net loss for the six months ended December 31, 2006 was $1.9 million, or $0.15
per share, on revenue of $27.7 million compared to a net loss of $10.8 million,
or $0.85 per share, on revenue of $23.8 million for first six months of the
the six-month period, the Company was proud to participate in NASA s
highly-publicized Solar Terrestrial Relations Observations (STEREO) mission
through its Astrotech subsidiary s processing of the satellite at its
Titusville, Florida location. STEREO, which launched on October 25, 2006, is a
two-year mission using two nearly identical observatories to provide 3-D
measurements of the sun and its flow of energy. And through its contract with
Sea Launch, Astrotech also supported the XM Satellite Radio XM-4 mission which
successfully lifted off on October 30, 2006.
On December 31, 2006
SPACEHAB s cash and short-term investments were approximately $11.4 million,
including restricted cash of $6.0 million. During the quarter, Astrotech
received the $6.0 million from a governmental agency as an initial payment,
under the previously announced $20.0 million contract, to design and build a
payload processing facility. SPACEHAB has designated this cash as restricted
cash, recognizing its commitment to obligations under the contract and has
recognized a liability for those anticipated obligations. As of December 31,
2006 SPACEHAB carried a contract backlog of $43.4 million for calendar year
2007 which represents the expected value of contractually-committed work -
portions of which are subject to the space shuttle s launch schedule or future
government funding decisions.
For the six months in this
period, the Company generated $6.8 million of cash from operating activities
and expects to generate positive cash from operations through completion of the
STS-118 mission. Our ability to redeem our maturing debt of $10.3 million in
October 2007 and to execute new business initiatives will be dependent upon our
ability to re-negotiate leases for our space assets and attract and implement
new business initiatives.
had a mortgage loan with a financial institution for our Spacecraft Processing
Facility expansion project in Titusville, Florida. Although the loan agreement
was scheduled to mature in January 2007, SPACEHAB made the final payment on the
loan in December 2006.
With regards to SPACEHAB s
ongoing contract claim with NASA seeking recovery of losses incurred as a
result of the 2003 Columbia
accident, NASA and the Company have proposed a discovery plan that would lead
to a hearing by the Armed Services Board of Contract Appeals in July 2008. In
accordance with that plan, the parties have committed to a non-binding
settlement conference on a to-be-determined date later this month.
Update of Ongoing Operations
twelve years of service to SPACEHAB, Michael E. Kearney announced his
retirement as President and Chief Executive Officer. Thomas B. Pickens, III, a
member of the Board of Directors since 2003, serves as the new President and
Chief Executive Officer bringing 23 years of corporate management and
turnaround experience to the firm. Following the Company s annual shareholder
meeting, Barry A. Williamson, an attorney and board member, was elected as
SPACEHAB s Chairman of the Board.
Subsequent to quarter end,
the Company enacted a restructuring and reduction in staff, of approximately 36
positions for an annual savings of $3.9 million, to eliminate redundant
capabilities as SPACEHAB s support of NASA s space shuttle program moves toward
completion of the Company s last contracted mission, STS-118.
On the heels of the Company s
active involvement in the successful completion of the STS-116, the SPACEHAB
Flight Services business segment continues integration and operations work in
preparation for the June 2007 launch of space shuttle mission STS-118. During
the 11-day mission, SPACEHAB s cargo pallet is planned for permanent deployment
and attachment to the space station and SPACEHAB s patented module system will
transport thousands of pounds of equipment and provisions to the ISS astronaut
Operations continues to provide support necessary for its customers to
successfully process their spaceflight hardware for launch, the Company
recently completed satellite processing for two spacecraft set to launch
back-to-back NASA s THEMIS spacecraft, scheduled for launch on February 15,
2007, and the STP-1 spacecraft launching on February 22, 2007 both of which
were handled through the Titusville location.
January 30, 2007, Sea Launch experienced a launch explosion resulting in the
loss of the NSS-8 satellite and damage to the Odyssey
floating launch platform. A full inspection and evaluation of the damage is