SPACEHAB REPORTS FINANCIAL RESULTS FOR SECOND QUARTER FISCAL YEAR 2009
Houston, TX (February 10, 2009) -
SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced financial results for the second quarter ended December 31, 2008 of its fiscal year 2009.
Second Quarter Results
SPACEHAB posted a second quarter fiscal year 2009 (December 31, 2008) net loss of $1.6 million, or $0.09 per share, on revenue of $3.8 million compared with a second quarter fiscal year 2008 (December 31, 2007) net loss of $32.8 million, or $4.36 per share, on revenue of $4.3 million. The net loss for the quarter ended December 31, 2008 included a non-cash gain of $0.7 million resulting from the repurchase of $1.8 million principal amount of the Company's outstanding notes at a discount. The loss for the quarter ended December 31, 2007 included a non-cash debt conversion expense of $30.2 million from the induced conversion of the Company's convertible notes. The net loss for the quarter ended December 31, 2007 also includes a deemed dividend of $3.3 million relative to the induced conversion of the Company's preferred stock.
Six Months Results
SPACEHAB's net loss for the six months ended December 31, 2008 was $1.5 million, or $0.09 per share, on revenue of $9.8 million compared to a net loss of $33.7 million, or $7.72 per share, on revenue of $12.9 million for first six months of the prior fiscal year.
On December 31, 2008 SPACEHAB's cash and short-term investments were approximately $7.3 million. Included in this was $7.1 million of Restricted Cash consisting of advance payments received on a government contract to modify certain spacecraft processing facilities. The Company carries a current liability of $4.0 million for obligations under this construction contract.
SPACEHAB's working capital deficit at the end of the quarter was $0.3 million. As of December 31, 2008 SPACEHAB carried a contract backlog of $29.1 million which represents the expected value of contractually-committed work and future government funding decisions.
The Company maintains a $6.0 million financing facility with Green Bank, N.A., consisting of a $4.0 million term loan and a $2.0 million revolving credit facility. The term loan terminates in February 2011. The Company renewed the one-year revolving credit facility on substantially similar terms to February 6, 2010.
Update of Ongoing Operations
The Company experienced a slower quarter than anticipated as missions planned for the Astrotech Space Operations (ASO) subsidiary in second quarter fiscal 2009 have slipped into third quarter fiscal 2009. The ASO subsidiary has secured several additional contracts, which are currently being processed at ASO facilities. Included in the backlog are several National Aeronautics and Space Administration Indefinite Delivery Indefinite Quantity contracts including the Space Tracking and Surveillance System totaling $2.6 million; Kepler mission Baseline Launch Site Support Plan totaling $1.4 million; NASA's Lunar Reconnaissance Orbiter (LRO) and Lunar Crater and Observation and Sensing Satellite (LCROSS) missions, which will launch simultaneously on the same launch vehicle totaling $3.1 million cumulatively; the Orbiting Carbon Observatory Mission (OCO) $.4 million contract; a Solar Dynamics Observatory (SDO) Expendable Launch Vehicle contract, totaling $2.2 million; and, the Widefield Infrared Survey Explorer mission (WISE) totaling $1.3 million.
The Company's Astrogenetix subsidiary (formerly BioSpace Technologies) continues to process microgravity products and is currently preparing for Shuttle Discovery (STS-119) scheduled to launch on February 12, 2009. Astrogenetix has a payload on Discovery, and will transport several samples as part of the ongoing vaccine development program. This mission marks the initial flight for methicillin-resistant Staphylococcus Aureus (MRSA), and other microorganisms that will be surveyed for novel characteristics in the microgravity environment. The Company flew its fourth and final flight of the previously discovered salmonella vaccine target on shuttle Endeavor (STS-126) which launched on November 17, 2008. Initial data from that flight show positive results as a developmental step in the discovery of a potentially commercial vaccine for salmonella. Astrogenetix was formed to leverage 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 in space to developing production models that use the research to produce commercial products. This new business initiative involves the commercial utilization of the International Space Station (ISS) and other microgravity platforms for the development of potentially valuable biotech products to save and improve lives on Earth.
About SPACEHAB, Incorporated
SPACEHAB is a commercial leader and entrepreneurial force in the space industry providing a full spectrum of products and services to both the government and private sectors. The Company offers space access and payload integration services, production of valuable commercial products in space, spacecraft pre-launch processing facilities and services, development and extension of space-based products to the consumer market, and program and engineering support ranging from development and manufacturing of flight hardware to large scale government project management.
The statements in this document may contain 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, product performance and market acceptance of products and services, as well as other risk factors and business considerations described in the company's Securities & 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 statements.
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