ASTROTECH REPORTS FIRST QUARTER 2015 FINANCIAL RESULTS
Austin, TX (November 14, 2014) -
GAAP results: net income of $23.3 million (attributable to Astrotech Corporation), or $1.16 per diluted share for the quarter ended September 30, 2014
The sale of Astrotech Space Operations (“ASO”) to Lockheed Martin was completed on August 22, 2014 for an agreed upon purchase price of $61.0 million, less a working capital adjustment of $1.7 million
Adjusted EBITDA of $23.1 million from continuing operations for the quarter ended September 30, 2014, which includes a gain from the sale of our former ASO business
1st Detect was awarded a pivotal competitive contract for the Next Generation Chemical Detector (NGCD) program
1st Detect was granted one U.S. patent and two International patents during the quarter
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 30, 2014.
“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 Tables for First Quarter and Fiscal Year 2015 [PDF 38KB]
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 what we believe is 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. Astral Images provides an advanced film scanning and digital defect removal solution. All 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, 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 and 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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Chief Financial Officer