Full Press Release Details
| SPACEHAB, Inc. | |
| 907 Gemini | |
| Houston, Texas 77058-2762 | |
| 1.713.558.5000 | |
| fax: 1.713.558.5960 | |
| www.spacehab.com |
REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER AND
Houston, Texas, September 29,
2008 SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a
leading provider of commercial space services, today announced financial
results for its fourth quarter and fiscal year ended June 30, 2008.
Fourth Quarter Results
The Company s reported a
net loss of $1.5 million on revenue of $6 million for fourth quarter fiscal
year 2008 compared to a fiscal year 2007 fourth quarter net loss of $13.2
million on revenues $12.8. The fourth quarter of fiscal year 2008 includes a
net gain of $0.6 million on early termination of a lease on the Company s
corporate offices in Houston, Texas and compensation expenses and directors
fees of $1.1 million reflecting bonus awards to the Chief Executive Officer and
certain directors. The fiscal 2007
results included write-downs of the Company s space shuttle modules of $10.4
million, $3.8 million for its fleet of cargo carriers, as well as $1.6 million
SPACEHAB posted a net
loss of $36.0 million for the year, or ($4.26) per share, on revenue of $25.5
million compared with fiscal year 2007 net income of $16.3 million, or ($1.26)
per share, on revenue of $52.8 million.
The decrease in fiscal year 2008 revenues resulted primarily from the
conclusion of the Company s space shuttle module mission with STS-120 in October 23,
2007. The Company has no further
scheduled mission manifested to utilize its unique logistics and research
The current fiscal year
includes debt conversion expenses of $30.2 million resulting from the October 7,
2007 conversion of $10.3 million of the Company s outstanding 8.0% convertible
notes due October 15, 2007, and $52.9 million of 5.5% senior convertible
notes due October 2010 (the Senior Notes ) into common stock of the
Company. As of June 30, 2008, $6.9
million of the 5.5% convertible notes remain outstanding.
we had cash and restricted cash on hand of $11.0 million and our working
capital was approximately $1.0 million. Restricted cash consists of advance
payments on a government contract to modify certain spacecraft processing
facilities, and restricted deposits per bank covenant. For fiscal year 2008 we
used $8.6 million of cash from operating activities. A $4.0 million term note
and a $2.0 million revolving credit facility was established in February 2008
SPACEHAB, Incorporated (the Company ) entered into a Securities Purchase
Agreement (the Securities Purchase Agreement ) with Lanphier Capital
Management, Inc. and Trace Partners, L.P. (the Investors ), under which
the Investors agreed to subscribe for and purchase 1,329,787 shares of the
Company s common stock for an aggregate purchase price of $625,000. The
consummation of the transaction under the Securities Purchase Agreement was
contingent upon certain customary conditions precedent to each party s
obligation to close.
The 1,329,787 shares of
common stock issued under the Securities Purchase Agreement were sold in
reliance on the exemption from registration pursuant to Rule 506 of Regulation
D promulgated by the Commission pursuant to the Securities Act of 1933. The
Company believes that such issuance of securities qualifies for an exemption
under Rule 506 because there are no more than 35 purchasers of securities
and each Investor represents to the Company under the Securities Purchase
Agreement at the time of execution and closing that it is an accredited
investor within the meaning of Rule 501 of Regulation D.
Update of Ongoing Operations
backlog of $30.2 million as of June 30, 2008. The majority of this backlog is from our
wholly-owned and largest subsidiary, Astrotech Space Operations ( ASO ), which
provides all support necessary for its government and commercial satellite
customers to successfully process their multi-million dollar spacecraft for
launch on expendable launch vehicles. Processing activities include hardware
launch preparation; advance planning; use of unique facilities; and, spacecraft
checkout, encapsulation, fueling, transport, and remote control through launch.
Through the SPACETECH, Inc.
business unit the Company is developing commercial products derived from
space-based technologies. SPACETECH has now spun-off three potentially valuable
business units, BioSpace Technologies, Inc. ( BioSpace ), AirWard, and 1st
Detect. Additionally, SPACETECH is
securing rights, resolving licensing issues and establishing product marketing
and distribution strategies.
Company s BioSpace subsidiary continues to process microgravity products and is
currently preparing for the October 8, 2008, STS-125 space shuttle
mission, which will transport several production samples as part of the ongoing
vaccine development program. This
mission marks the fourth and final flight of the previously discovered
salmonella vaccine target, utilizing the Company s proprietary microgravity
processing ( MGP ) program and Vaccine Processing Platform ( VPP ). BioSpace is an extension of SPACEHAB s many
years of experience preparing, launching and operating science payloads in space,
and plays a key role in transitioning the Company from supporting
government-sponsored research to developing production models that use the
research to produce commercial products in space. This new business initiative involves the
commercial utilization of the International Space Station ( ISS ), and other
microgravity platforms for the development of valuable biotech products to save
and improve lives on Earth. Previous
missions have successfully shown positive results in determining a commercial vaccine
Company s AirWard division recently received an initial order for 64 thermal
resistant transport containers that were designed to meet the Hazardous
Materials regulations (HMR; 49CFR Parts 171-180) issued by the U.S. Department
Company s 1st Detect division continues to make progress in the
development of its ion trap mini mass spectrometer that began as a response to
a Space Act Agreement that was entered into with NASA in May 2005, as a
replacement to the mass spectrometer that monitors the air quality on the ISS.
Astrotech Engineering
Services ( AES ), formerly SPACEHAB Government Services, provides large-scale
program technical support and specialized engineering analysis, products and
services and configuration and data management support to NASA and other
government customers. AES derived most of its revenue from NASA s Program
Integration and Control ( PI&C ) contract for the ISS. As issued in a press
release dated May 2008, the PI&C contract was terminated by the prime
contract holder, ARES Corporation, due to matters of convenience effective June 6,