(Source: Business Wire)
Astrotech Corporation (NASDAQ:ASTC) today announced financial results
for its fourth quarter and fiscal year ended June 30, 2009.
"This reporting period commemorates our return to profitable earnings
and the completion of the turnaround for Astrotech that started in
January 2007," said Thomas B. Pickens III, Chairman and CEO. "The
Company is now on a firm foundation and I feel very confident about the
future of Astrotech and its expected earnings going forward."
Fourth Quarter Results
The Company posted a fourth quarter fiscal year 2009 net income of $2.6
million, or $0.15 per diluted share on revenue of $10.4 million compared
with a fourth quarter fiscal year 2008 net loss of $1.5 million, or
$(0.11) per diluted share on revenue of $6.1 million.
Fiscal Year Results
Astrotech's net income for the fiscal year ended June 30, 2009 was $4.7
million, or $0.28 per diluted share on revenue of $32.0 million compared
to a net loss of $36.0 million, or $(4.26) per diluted share on revenue
of $25.5 million for the prior fiscal year. These results represent a
25.2% increase in revenue over fiscal year 2008. Additionally, this
marks the first time since 2005 that the Company has reported net income
for the fiscal year.
Liquidity
As of June 30, 2009, we had cash on hand of $4.7 million and our working
capital was approximately $8.4 million. 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. On June
30, 2009, $3.6 million of the term loan, which expires in February 2011,
was outstanding. During third quarter fiscal year 2009, the Company
renewed the one-year revolving credit facility through February 2010 on
terms substantially similar to the previous facility. At June 30, 2009,
the Company had no outstanding liability under the revolving credit
facility.
Update of Ongoing Operations
Astrotech's growth strategy is to build on its industry-leading ground
support operations and offer a more comprehensive set of services to
government and commercial satellite customers through its wholly owned
and largest subsidiary, Astrotech Space Operations ("ASO").
Specifically, the Company has developed and has begun to offer an
End-to-End Mission Assurance capability that leverages Astrotech's
core-competency in ground processing services to provide pre-launch
mission design and planning services and post-launch command-and-control
and data management services. This initiative offers new opportunities
to meet what the Company believes is an increasing demand from
commercial and government customers for a cost-effective and reliable
provider of these services.
The Company has a backlog of $25.4 million as of June 30, 2009. The
majority of this backlog is for ASO pre-launch satellite processing
services, which include hardware launch preparation; advance planning;
use of unique satellite preparation facilities; and, spacecraft
checkout, encapsulation, fueling, transport, and remote control through
launch.
Strategic Financial and Business Alternatives
Astrotech also announced today that its Board of Directors has engaged
investment banking firm Lazard Ltd. to advise the Company in exploring
strategic financial and business alternatives to enhance shareholder
value. Lazard Middle Market is the midcap focused financial advisory
business of Lazard.
The range of alternatives which may be considered could include
strategic acquisitions, a sale of some or all of the company's assets or
a variety of other possible transactions. There can be no assurance
regarding the timing of or whether the Company will elect to pursue any
of the strategic alternatives it may consider, or that any such
alternatives will result in changes to the Company's plans or will be
consummated.
About Astrotech Corporation
Astrotech is one of the first space commerce companies and remains a
strong entrepreneurial leader in the aerospace industry. The Company
serves our government and commercial satellite and spacecraft customers
with our pre-launch services from our Astrotech Space Operations (ASO)
subsidiary and incubates space technology businesses having formed three
companies; the 1st Detect Corporation is developing what we believe is a
breakthrough mini-mass spectrometer; Astrogenetix, Inc. expects to
produce biotech products in space and has recently developed a vaccine
candidate for Salmonella; and AirWard Corporation is drawing on
Astrotech's space heritage of sending cargo to space by selling
hazardous material containers for the airline industry.
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, the ability to expand ASO,
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.
Tables follow
ASTROTECH CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended June 30, Twelve Months Ended June 30,
2009 2008 2009 2008
Revenue $ 10,377 $ 6,050 $ 31,985 $ 25,544
Costs of revenue 4,130 4,490 15,723 19,540
Gross profit 6,247 1,560 16,262 6,004
Operating expenses
Selling, general and administrative 3,240 2,824 9,760 9,148
Research and development 694 20 2,330 1,375
Asset impairment charge - 213 - 213
Total operating expenses 3,934 3,057 12,090 10,736
Gain (loss) from operations 2,313 (1,497 ) 4,172 (4,732 )
Debt conversion expense - - - (30,194 )
Gain on bond exchange - - 665 -
Interest expense and Other expense, net (293 ) 327 (622 ) (427 )
Gain (loss) before income taxes 2,020 (1,170 ) 4,215 (35,353 )
Income tax benefit (expense) 603 (325 ) 510 (675 )
Net Income (loss) $ 2,623 $ (1,495 ) $ 4,725 $ (36,028 )
Deemed dividend related to induced conversion of preferred shares - - - (3,344 )
Net Income (loss) applicable to common shares $ 2,623 $ (1,495 ) $ 4,725 $ (39,372 )
Net income (loss) per share, basic $ 0.16 $ (0.11 ) $ 0.29 $ (4.26 )
Weighted average common shares outstanding, basic 16,370 13,974 16,365 9,254
Net income (loss) per share, diluted $ 0.15 $ (0.11 ) $ 0.28 $ (4.26 )
Weighted average common shares outstanding, diluted 17,617 13,974 16,904 9,254
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ASTROTECH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
June 30,
Assets 2009 2008
Current assets
Cash and cash equivalents $ 4,730 $ 2,640
Accounts receivable, net 12,279 3,872
Prepaid expenses and other current assets 591 639
Total current assets 17,600 7,151
Property and equipment, net 40,226 40,999
Restricted cash - 8,386
Long term note receivable 691 717
Other assets, net 402 958
Total assets $ 58,919 $ 58,211
Liabilities and Stockholders' Equity
Current liabilities
Term note payable $ 267 $ 267
Accounts payable 2,965 2,599
Deferred revenue 3,594 1,007
Accrued liabilities and other 2,356 2,756
Total current liabilities 9,182 6,629
Advances on construction contract - 4,863
Deferred revenue 649 1,227
Senior convertible subordinated notes payable -- 5.5% 5,111 6,861
Term note payable, net of current portion 3,324 3,526
Other 105 169
Total liabilities 18,371 23,275
Stockholders' equity
Preferred stock, no par value, convertible, 2,500,000 authorized shares, 0 issued and
outstanding shares, at June 30, 2009 and 2008 (liquidation preference of $12,000) - -
Common stock, no par value, 75,000,000 and 7,000,000 shares authorized at June 30, 2009 and 2008 respectively,
16,754,378 and 14,966,038 shares issued at June 30, 2009 and 2008, respectively 183,341 183,306
Treasury stock, 311,660 shares at cost (237 ) (117 )
Additional paid-in capital 1,663 691
Retained earnings (144,219 ) (148,944 )
Total stockholders' equity 40,548 34,936
Total liabilities and stockholders' equity $ 58,919 $ 58,211
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