Astrotech Reports Third Quarter 2014 Financial Results

Astrotech Reports Third Quarter 2014 Financial Results

  *GAAP results: net loss of $2.8 million (attributable to Astrotech
    Corporation), on revenue of $1.6 million, or $(0.15) per diluted share for
    the quarter ended March 31, 2014
  *Astrotech Space Operations ("ASO"), the Company's core business, supported
    the Tracking and Data Relay Satellite System (TDRS-L) mission which
    launched during the third quarter of fiscal year 2014
  *1^st Detect received another key patent during its fiscal year 2014 for
    the Company's unique ion trap used for chemical analysis and detection,
    further protecting our ground breaking miniature mass spectrometer
    technology

AUSTIN, Texas, May 14, 2014 (GLOBE NEWSWIRE) -- Astrotech Corporation
(Nasdaq:ASTC), a leading provider of commercial aerospace services, today
announced financial results for its fiscal year 2014 third quarter ended March
31, 2014.

"Our core satellite processing business, Astrotech Space Operations, had a
slow third quarter due to a relatively light launch schedule. However, the
18-month backlog at ASO looks relatively healthy as we continue to attract
valued customers by delivering the best satellite processing services in the
industry. Additionally, we are very excited about the prospects at 1^st Detect
now that we have signed our first significant commercial OEM agreement with
Rigaku," said Thomas B. Pickens III, Chairman and CEO of Astrotech.

Third Quarter Results

The Company posted a third quarter fiscal year 2014 net loss of $2.8 million,
or $(0.15) per diluted share on revenue of $1.6 million compared with a third
quarter fiscal year 2013 net loss of $0.1 million, or $(0.01) per diluted
share on revenue of $4.6 million.

Update of Ongoing Operations

ASO's 18-month rolling backlog, which includes contractual backlog and
scheduled but uncommitted missions was $27.0 million at March 31, 2014. The
majority of the revenue at ASO consists of pre-launch satellite processing
services, which include hardware launch preparation, advance planning, use of
unique satellite preparation facilities and spacecraft checkout,
encapsulation, fueling, and transport and design and fabrication of equipment
and hardware for space launch activities at our Titusville, Florida and
Vandenberg Air Force Base locations.

1^st Detect is the leading commercial developer of miniature mass spectrometry
technology. We are paving the way with next generation chemical detection
instrumentation and we are aggressively pursuing new strategic partnerships as
we move to drive a paradigm shift in this marketplace.

Financial Position and Liquidity

Working capital was $(3.9) million as of March 31, 2014, which included $4.6
million in cash and cash equivalents. During the quarter, the Company did not
meet its negotiated covenants, for which the Company received a waiver. This
was primarily due to the delay of a mission and required the reclassification
of our long-term debt to current.

About Astrotech Corporation

Astrotech is one of the first space commerce companies and remains a strong
entrepreneurial force in the aerospace industry. We are leaders in
identifying, developing and marketing space technology for commercial use. Our
ASO business unit serves our government and commercial satellite and
spacecraft customers with pre-launch services on the eastern and western
range. 1^stDetect Corporation is developing what we believe is a breakthrough
miniature mass spectrometer, the MMS-1000™, while Astrogenetix, Inc. is a
biotechnology company utilizing microgravity as a research platform for drug
discovery and development.

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 Astrotech'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. Astrotech assumes no obligation to update these
forward-looking statements.

                                Tables follow

ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
                                                              
                          Three Months Ended        Nine Months Ended
                           March31,                 March31,
                          2014          2013        2014         2013
                          (unaudited)               (unaudited)
Revenue                    $1,556      $4,565    $10,783    $14,815
Cost of revenue            2,308         2,550      8,076        10,581
Gross profit (loss)        (752)         2,015      2,707        4,234
Operating expenses:                                            
Selling, general and       1,593         1,758      5,540        5,341
administrative
Research and development   645          459        1,801        1,494
Total operating expenses   2,238         2,217      7,341        6,835
Loss from operations       (2,990)       (202)       (4,634)      (2,601)
Interest and other         (61)          (36)        (178)        (121)
expense, net
Loss before income taxes   (3,051)       (238)       (4,812)      (2,722)
Income tax expense         (2)           —          (9)          —
Net loss                   (3,053)       (238)       (4,821)      (2,722)
Less: Net loss
attributable to            (216)         (125)       (681)        (382)
noncontrolling interest*
Net loss attributable to   $(2,837)    $(113)    $(4,140)   $(2,340)
Astrotech Corporation
                                                              
Net loss per share
attributable to Astrotech  $(0.15)     $(0.01)   $(0.21)    $(0.12)
Corporation, basic
Weighted average common    19,486        19,463     19,479       19,279
shares outstanding, basic
                                                              
Net loss per share
attributable to Astrotech  $(0.15)     $(0.01)   $(0.21)    $(0.12)
Corporation, diluted
Weighted average common
shares outstanding,        19,486        19,463     19,479       19,279
diluted
                                                              
* Noncontrolling interest resulted from grants of restricted stock in 1^st
Detect and Astrogenetix to certain employees, officers and directors. Please
refer to the March31, 2014 10-Q filed with the Securities and Exchange
Commission for further detail.


ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
                                                     
                                          March31,   June30,
                                           2014        2013
                                          (unaudited)
Assets                                                
Cash and cash equivalents                  $4,552    $5,096
Accounts receivable, net                   2,146       5,317
Prepaid expenses and other current assets  540         503
Total current assets                       7,238       10,916
Property, plant, and equipment, net        35,590      37,035
Other assets, net                          35          51
Total assets                               $42,863   $48,002
                                                     
Liabilities and stockholders' equity                  
Current liabilities                        $11,182   $6,609
Long-term liabilities                      401         5,913
Stockholders' equity                       31,280      35,480
Total liabilities and stockholders' equity $42,863   $48,002


ASTROTECH CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of Non-GAAP Measures
(In thousands)
Earnings Before Interest, Taxes, Depreciation and Amortization
                                                             
                        ThreeMonths              NineMonths
                         EndedMarch31,           EndedMarch31,
                        2014          2013        2014          2013
EBITDA                   $(2,414)    $344      $(2,868)    $(981)
Depreciation&           580           520         1,767         1,552
amortization
Interest expense         57            62          177           189
Income tax expense       2             —          9             —
Net loss                 (3,053)       (238)       (4,821)       (2,722)
Net loss attributable to (216)         (125)       (681)         (382)
noncontrolling interest
Net lossattributable to $(2,837)    $(113)    $(4,140)    $(2,340)
Astrotech Corporation
                                                             
EBITDA (earnings before interest, taxes, depreciation and amortization) is a
non-U.S. GAAP financial measure. We included information concerning EBITDA
because we use such information when evaluating operating earnings (loss)to
better evaluate the underlying performance of the Company. EBITDA does not
represent, and should not be considered an alternative to, net income (loss),
operating earnings (loss), or cash flow from operations as those terms are
defined by U.S. GAAP and does not necessarily indicate whether cash flows will
be sufficient to fund cash needs. While EBITDA is frequently used as measures
of operations and the ability to meet debt service requirements by other
companies, our use of this financial measure is not necessarily comparable to
such other similarly titled captions of other companies.

CONTACT: FOR MORE INFORMATION:

         Eric Stober
         Astrotech Corporation
         512.485.9530

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