SPACEHAB Reports Financial Results for Fiscal 1998 Third Quarter.VIENNA, Va.--(BUSINESS WIRE)--May 6, 1998--SPACEHAB, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SPAB SPAB Society for the Protection of Ancient Buildings (UK) SPAB School Pupil Activity Bus SPAB Supply Priorities and Allocations Board SPAB Security Policy Advisory Board SPAB Society for the Preservation of Adolescent Behavior ) today announced financial results for its fiscal 1998 third quarter and first nine months, which ended March 31, 1998. The company recorded revenue of $19.0 million for the third quarter and $39.3 million for the first nine months of fiscal 1998. Revenue for the comparable three and nine-month periods that ended March 31, 1997, was $15.0 million and $38.1 million, respectively. Of fiscal 1998's third-quarter revenues, $13.6 million was recognized for SPACEHAB's sixth mission under the Mir contract, $2.5 million was contributed by its ASTROTECH subsidiary, and $2.9 million was reported under the Research and Logistics Module Services (REALMS) contract with NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. . On a comparative basis the three-month and nine-month periods ended March 31, 1998 and 1997, are significantly different. Depreciation expenses were substantially lower in the three-month and nine-month periods this year because SPACEHAB extended the estimated useful lives of its space modules to more accurately reflect their long-term value by conforming with NASA's extension of the Space Shuttle space shuttle, reusable U.S. space vehicle. Developed by the National Aeronautics and Space Administration (NASA), it consists of a winged orbiter, two solid-rocket boosters, and an external tank. program life through 2012. Costs of revenue, excluding depreciation, increased for both the quarter and year-to-date due primarily to the inclusion of costs of the ASTROTECH subsidiary, which was acquired on February 12, 1997. For the nine months ended March 31, 1997, integration and operations costs reported for the Commercial Middeck Augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. Module contract were lower than in previous years by approximately $3.2 million due to the close-out of that contract. General and administrative expenses increased for both the quarter and year-to-date as the company added people and processes to strengthen marketing, design and engineering. Research and development costs increased due to the company's successful efforts to develop space-related assets including the Integrated Cargo Carrier (ICC ICC See: International Chamber of Commerce ) and the SPACEHAB Universal Communications System In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. (SHUCS SHUCS SPACEHAB Universal Communications System ) that will be flown on STS-91 in June. There is no income tax expense recorded for the three-month and nine-month periods ended March 31, 1998, primarily due to depreciation timing differences between book and tax on the company's flight modules. In December 1997, the company adopted the provisions of Statement of Financial Accounting Standards No. 128 (FAS 128), which established new guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for the calculations of earnings per share. Earnings per share for all prior periods presented have been restated to reflect the provisions of FAS 128. Net income in the table that follows this release presents both basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . SPACEHAB's net income for the quarter that ended March 31, 1998, was $4.9 million, or $0.44 per share (basic EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ), as compared with $3.2 million, or $0.29 per share (basic EPS), for the same period last year. For the first nine months of fiscal 1998, net income was $5 million, or $0.45 per share (basic EPS), as compared with $7.2 million, or $0.65 per share, before extraordinary gain and $10.5 million, or $0.94 per share, including extraordinary gain (basic EPS) a year ago. "Net income so far in fiscal 1998 remains consistent with our business plan, which calls for substantial investment to make available the assets, people, and processes we need to support our growth in conjunction with the advent of the International Space Station and stepped up telecommunications satellite launches," said Dr. Shelley A. Harrison, SPACEHAB Chairman and Chief Executive Officer. "The nearly $88 million in new financing arrangements SPACEHAB has completed within the last 12 months are being used to develop and build assets that are vital to the future of human space flight and the satellite telecommunications industry." "The SPACEHAB Research Double Module will enable the continued growth of microgravity mi·cro·grav·i·ty n. 1. An environment in which there is very little net gravitational force, as of a free-falling object, an orbit, or interstellar space. 2. research aboard the Space Shuttle," Dr. Harrison said. "The Module's first use is scheduled for STS-107 in May 2000." "Construction of SPACEHAB's Integrated Cargo Carrier system has also begun," Dr. Harrison continued. "This highly flexible system can be used as a stand-alone carrier or combined with SPACEHAB single and double modules to increase the Space Shuttle's capability to carry unpressurized cargo to the International Space Station." The company's ASTROTECH subsidiary recently completed a $2.3 million expansion of its facility in Titusville, Florida Titusville is a city in Brevard County, Florida, United States. The population was 40,670 at the 2000 census. According to the U.S. Census Bureau's 2004 estimates, the city had a population of 42,614. It is the county seat of Brevard CountyGR6. , to add a new Encapsulation (1) In object technology, the creation of self-contained modules that contain both the data and the processing. See object-oriented programming. (2) The transmission of one network protocol within another. High Bay to enable parallel encapsulation activities in support of Atlas II Atlas II was a member of the Atlas family of launch vehicles, which evolved from the successful Atlas missile program of the 1950s. Atlas II was the last Atlas to use a three engine, "stage-and-a-half" design: two of its three engines were jettisoned during ascent, but its fuel and the new Delta III Delta III could refer to:
EELV End-Expiratory Lung Volume EELV Extended Expendable Launch Vehicle ), which is scheduled to begin commercial payload (1) Refers to the "actual data" in a packet or file minus all headers attached for transport and minus all descriptive meta-data. In a network packet, headers are appended to the payload for transport and then discarded at their destination. activities in 2001. ASTROTECH's Vandenberg facility is also spending approximately $1.4 million for site improvements and a new technical support building to prepare for the NASA EOS-AM and WIRE missions scheduled for 1998. "We are pleased with our performance through the first nine months of fiscal 1998 and are enthusiastic about the future of commercial space activities," commented Dr. Harrison. SPACEHAB, Inc., with its ASTROTECH subsidiary, is the world's leading provider of commercial payload processing services for both astronaut-tended and unmanned payloads. SPACEHAB is the first company to commercially develop, own and operate habitable habitable adj. referring to a residence that is safe and can be occupied in reasonable comfort. Although standards vary by region, the premises should be closed in against the weather, provide running water, access to decent toilets and bathing facilities, heating, modules that provide space-based laboratory facilities and logistics resupply re·sup·ply tr.v. re·sup·plied, re·sup·ply·ing, re·sup·plies To provide with fresh supplies, as of weapons and ammunition. re aboard the U.S. Space Shuttles The term Space Shuttles refers to partly or fully reusable launch vehicles for regularly placing payloads into low earth orbit. See:
This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Such risks and uncertainties include, but are not limited to, whether the company will fully realize the economic benefits under its NASA and other customer contracts, the successful development and commercialization of new commercial space assets, technological difficulties, product demand, timing of new contracts and business, market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, and other risks detailed in the company's Securities and Exchange Commission filings. (Table follows) -0-
SPACEHAB, INCORPORATED AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Operations
Three Months Nine Months
Ended March 31, Ended March 31,
1998 1997 1998 1997
________________________________________________
Revenue $18,997,057 $15,031,345 $39,290,001 $38,136,763
Costs of revenue:
Integration and
operations 7,563,134 5,804,721 18,370,066 14,777,180
Depreciation 978,460 2,376,139 2,935,381 7,128,416
Insurance and other
direct costs 520,116 136,801 915,116 243,051
____________________________________________________________________
Total costs of
revenue 9,061,710 8,317,661 22,220,563 22,148,647
____________________________________________________________________
Gross profit 9,935,347 6,713,684 17,069,438 15,988,116
Operating expenses:
Marketing, general
and administrative 3,979,981 2,663,375 10,021,402 6,543,551
Research and
development 741,796 136,776 1,793,373 451,340
____________________________________________________________________
Total operating
expenses 4,721,777 2,800,151 11,814,775 6,994,891
____________________________________________________________________
Income from
operations 5,213,570 3,913,533 5,254,663 8,993,225
Interest expense,
net of capitalized
amounts (1,253,367) (187,201) (2,631,701) (865,518)
Interest and other
income 931,151 375,501 2,341,030 1,190,075
____________________________________________________________________
Income before
income taxes 4,891,354 4,101,833 4,963,992 9,317,782
Income tax expense -- 894,659 -- 2,124,659
____________________________________________________________________
Income before
extraordinary
item 4,891,354 3,207,174 4,963,992 7,193,123
Extraordinary item -
gain on early
retirement of debt,
net of taxes - - - 3,274,029
____________________________________________________________________
Net income $ 4,891,354 $ 3,207,174 $ 4,963,992 $10,467,152
____________________________________________________________________
____________________________________________________________________
Basic earnings per
share:
Income before
extraordinary
item $ 0.44 $ 0.29 $ 0.45 $ 0.65
Extraordinary item - - - 0.29
____________________________________________________________________
Net income per
share - basic $ 0.44 $ 0.29 $ 0.45 $ 0.94
____________________________________________________________________
____________________________________________________________________
Shares used in
computing net
income per share 11,156,274 11,146,236 11,152,312 11,109,721
____________________________________________________________________
____________________________________________________________________
Diluted earnings
per share:
Income before extra-
ordinary item $ 0.37 $ 0.29 $ 0.44 $ 0.65
Extraordinary item - - - 0.29
____________________________________________________________________
Net income per share
- diluted $ 0.37 $ 0.29 $ 0.44 0.94
____________________________________________________________________
____________________________________________________________________
Shares used in
computing net
income per share -
assuming dilution 16,062,335 11,153,855 11,407,595 11,149,679
____________________________________________________________________
____________________________________________________________________
Required Disclosure: In February 1997, the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). issued Statement of Financial Accounting Standards No. 128, Earnings Per Share ("FAS 128"). FAS 128 simplified the earnings per share ("EPS") computations previously required under Accounting Principles Board The Accounting Principles Board (APB) is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was created by the American Institute of Certified Public Accountants in 1959 and issued pronouncements on accounting principles until 1973, Opinion No. 15, Earnings Per Share, and revised the related disclosure requirements. In simplifying the EPS computations, the presentation of primary EPS is replaced with basic EPS, with the principal difference being that common stock equivalents are not considered in computing basic EPS. In addition, FAS 128 requires dual presentation of basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS. FAS 128 is effective for both interim and annual financial statements issued for periods ending after December 15, 1997. SPACEHAB's financial statements and presentation of EPS for the three and nine months ended March 31, 1998 and 1997 are presented using the computations required under FAS 128. CONTACT: SPACEHAB, Inc. Media: Penelope Longbottom, 703/821-3000 Financial: Margaret E. Grayson, 703/821-3000 www.spacehab.com |
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