Full Press Release Details
| SPACEHAB, Inc. 12130 Highway 3, Bldg. 1 Webster, Texas 77598-1504 | |
| 1.713.558.5000 | |
| fax: 1.713.558.5960 | |
| www.spacehab.com |
SPACEHAB REPORTS FINANCIAL RESULTS FOR THIRD
QUARTER FISCAL YEAR 2007
Houston, Texas, May 8, 2007
SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of
commercial space services, today announced financial results for
the third quarter ended March 31, 2007 of its fiscal year 2007.
SPACEHAB posted a third quarter
fiscal 2007 net loss of $1.2 million, or $0.09 per share, on revenue of $12.2
million compared with a third quarter fiscal 2006 net loss of $1.7 million, or
$0.13 per share, on revenue of $12.4 million.
Although the staff reductions
completed in January are expected to contribute to significant savings for the
Company in the long term, severance costs incurred for the restructuring, in
the amount of approximately $450,000, were booked during the third quarter,
said SPACEHAB Chief Financial Officer, Brian Harrington. Also during the
period, the Company dismissed its claims against NASA for losses resulting from
the Space Shuttle Columbia accident which is
expected to result in the reduction of legal expenses for future periods.
Additionally, due to the Sea
Launch accident on January 30, 2007 impacting the Odyssey
launch platform and subsequent missions on the manifest, a contracted mission
scheduled to be processed by Astrotech in March was delayed until October.
SPACEHAB s net loss for the
nine months ended March 31, 2007 was $3.1 million, or $0.24 per share, on
revenue of $39.9 million compared to a net loss of $12.4 million, or $0.98 per
share, on revenue of $36.2 million for first nine months of the prior fiscal
The previous nine month period
loss included a non-cash charge of $6.3 million as the Company wrote down the
book value of one of its two pressurized space shuttle modules and changed the
depreciable life of its remaining space shuttle assets to align with NASA s
current launch manifest that anticipates retiring the space shuttle fleet at
the end of 2010. The incurred revenue for the current nine month period,
resulting from the Company s support of three Space Shuttle missions
concurrently, two of which employed a combined module and pallet configuration,
as well as lower interest expense from the Company s November 2005 note
exchange tender, contributed to the reduction in net loss for the current
According to Astrotech s
original base contract with Lockheed Martin for satellite processing support,
which guarantees Astrotech revenue four Lockheed Martin missions per calendar
year, Astrotech had the opportunity to then contract with other Atlas customers
for use of its facilities and services. In accordance with this clause,
Astrotech signed contracts with The Boeing Company to process its STP-1 mission
and two Wideband Global SATCOM (WGS) missions. Space Test Program-1 (STP-1) was
successfully launched within
this period and the first WGS mission is currently scheduled for processing and
liftoff in late summer. To fulfill our contractual obligation with Lockheed
Martin, Astrotech credited the Lockheed Martin customer $2.6 million of the
guaranteed mission revenue for calendar year 2006.
March 31, 2007 SPACEHAB s cash and short-term investments were approximately
$19.5 million, including restricted cash of $7.2 million. Restricted cash
reflects payments in advance of milestones achieved on a contract to provide
customer-specific pre-launch facilities at the Company s Vandenberg Air Force
Base (VAFB) location.
the nine months ended March 31, 2007, the Company generated $15.2 million of
cash from operating activities. Cash
flow from operations benefited from the Company s outstanding lease payments
for the Integrated Cargo Carrier (ICC) and Vertical Cargo Carrier (VCC) assets
in the amount of $3.7 million. Cost incurred for integration and operations
services provided by Astrium on the STS-118 mission are also included in
accounts payable and accrued expenses as of
March 31, 2007 and will represent cash outflows upon expected payment
during the fourth quarter.
Company also invoiced its Cargo Mission Contract (CMC) customer for $3.1
million for flight insurance on SPACEHAB hardware manifested for the STS-118
mission. The payment is due to the insurance carrier 30 days prior to launch.
Also included in cash flow from operations is $7.2 million received by the
Company which is held in restricted cash as previously discussed.
of March 31, 2007 SPACEHAB carried a contract backlog of $33.5 million which
represents the expected value of contractually-committed work - portions of
which are subject to the Space Shuttle s launch schedule or future government
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
Update of Ongoing Operations
From both its Houston and Cape
Canaveral locations, the Company s Flight Services team continues payload
processing support for its last scheduled Space Shuttle mission, STS-118.
Although the launch has slipped from a June 2007 to August 2007 liftoff, the
Company anticipates an equitable adjustment from the CMC customer to compensate
for additional costs associated with the delay. During the 14-day mission, the
Space Shuttle Endeavor will carry SPACEHAB s
Logistics Single Module (LSM) to and from the International Space Station (ISS)
utilizing its 1,100 cubic feet of pressurized cargo storage space in support of
critical resupply requirements. SPACEHAB s External Stowage Platform-3 has a
one way ticket to the ISS on this mission as Endeavor
and her crew will deploy the platform from the shuttle s cargo bay onto the
orbiting laboratory as another permanent spare parts facility for station
Astrotech Space Operations
currently has two missions in work at its three nation-wide locations. The
January Sea Launch mission malfunction impacted the third quarter reporting
period and launches scheduled for processing at the Home Port facilities in the
fourth quarter have now slipped until October further impacting revenue for the
In addition to its high-scoring
configuration and data management (CM/DM) support to the Program Integration
and Control subcontract, SPACEHAB Government Services recently received a
contract extension for CM/DM work through September 2007 in support of United
Space Alliance and the Constellation Program. The extension brings the total
contract amount to $1.1 million.
Finally, as announced last