Astrotech Corporation (NASDAQ: ASTC), a leader in commercializing space technology and chemical detection technologies for use in the research, security, industrial, process flow and healthcare markets, today announced financial results for its second quarter ended December 31, 2014.
“This was an important transition quarter for Astrotech Corporation as we prepared for 1st Detect’s evolution from a research and development organization to one that will be focused on commercialization of its technology,” said Thomas B. Pickens III, Chairman and CEO of Astrotech Corporation. “With ample resources provided by the sale of Astrotech Space Operations (ASO), we have attracted the premier talent necessary to take 1st Detect to the next level. In addition, we are actively seeking acquisitions to complement our 1st Detect technology or technology companies that are positioned to be dominant in their respective industries.”
Second Quarter Results
The Company posted second quarter fiscal year 2015 net loss of ($2.4) million, or ($0.12) per diluted share, compared with a second quarter fiscal year 2014 net loss of ($2.6) million or ($0.13) per diluted share. It also posted year to date fiscal year 2015 net income of $20.9 million, or $1.04 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 second quarter year to date fiscal year 2014 net loss of ($1.3) million or ($0.07) per diluted share.
Financial Position and Liquidity
Working capital was $41.5 million as of December 31, 2014, which primarily consisted of $42.4 million in cash and cash equivalents, short-term investments, and a working capital receivable held in escrow of $0.6 million related to the sale of our former ASO business. Additionally, the Company continues to record a receivable of $6.1 million for an amount held in escrow related to the sale, which is not included in working capital. The Company believes it will fully realize $0.6 million in February 2015 and the remaining $6.1 million held in escrow in February 2016.
About Astrotech Corporation
Astrotech is a leader in identifying and commercializing space technology for terrestrial use. 1st Detect Corporation is developing 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. Both 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, our ability to successfully develop our remaining Spacetech business unit, our ability to develop and integrate our miniaturized mass spectrometer, the MMS-1000™, product performance, market acceptance of products and services, and our ability to identify, execute and integrate potential acquisitions, as well as other risk factors and business considerations. 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.
| ASTROTECH CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
| Revenue | $ | 4 | $ | 82 | $ | 324 | $ | 82 | |||||||||||||
| Cost of revenue | 4 | — | 281 | — | |||||||||||||||||
| Gross profit | — | 82 | 43 | 82 | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||
| Selling, general and administrative | 2,012 | 2,023 | 3,972 | 3,575 | |||||||||||||||||
| Research and development | 984 | 350 | 1,676 | 1,156 | |||||||||||||||||
| Total operating expenses | 2,996 | 2,373 | 5,648 | 4,731 | |||||||||||||||||
| Loss from operations | (2,996 | ) | (2,291 | ) | (5,605 | ) | (4,649 | ) | |||||||||||||
| Other income (expense), net | 24 | (1 | ) | 36 | 11 | ||||||||||||||||
| Loss from continuing operations before income taxes | (2,972 | ) | (2,292 | ) | (5,569 | ) | (4,638 | ) | |||||||||||||
| Income tax benefit | 734 | 557 | 2,059 | 1,730 | |||||||||||||||||
| Loss from continuing operations | (2,238 | ) | (1,735 | ) | (3,510 | ) | (2,908 | ) | |||||||||||||
| Discontinued operations | |||||||||||||||||||||
| Income (loss) from operations of ASO business (including gain from sale of $25.6 million) | — | (475 | ) | 26,933 | 2,877 | ||||||||||||||||
| Income tax expense | (184 | ) | (564 | ) | (2,562 | ) | (1,736 | ) | |||||||||||||
| Income (loss) on discontinued operations | (184 | ) | (1,039 | ) | 24,371 | 1,141 | |||||||||||||||
| Net (loss) income | (2,422 | ) | (2,774 | ) | 20,861 | (1,767 | ) | ||||||||||||||
| Less: Net loss attributable to noncontrolling interest* | — | (220 | ) | — | (466 | ) | |||||||||||||||
| Net (loss) income attributable to Astrotech Corporation | $ | (2,422 | ) | $ | (2,554 | ) | $ | 20,861 | $ | (1,301 | ) | ||||||||||
| Amounts attributable to Astrotech Corporation: | |||||||||||||||||||||
| Loss from continuing operations, net of tax | $ | (2,238 | ) | $ | (1,515 | ) | $ | (3,510 | ) | $ | (2,442 | ) | |||||||||
| Income (loss) from discontinued operations, net of tax | (184 | ) | (1,039 | ) | 24,371 | 1,141 | |||||||||||||||
| Net (loss) income attributable to Astrotech Corporation | $ | (2,422 | ) | $ | (2,554 | ) | $ | 20,861 | $ | (1,301 | ) | ||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||
| Basic and diluted | 19,637 | 19,479 | 19,593 | 19,476 | |||||||||||||||||
| Basic and diluted net income (loss) per common share: | |||||||||||||||||||||
| Net loss attributable to Astrotech Corporation from continuing operations | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.13 | ) | |||||||||
| Net income (loss) from discontinued operations | (0.01 | ) | (0.05 | ) | 1.24 | 0. 06 | |||||||||||||||
| Net (loss) income attributable to Astrotech Corporation | $ | (0.12 | ) | $ | (0.13 | ) | $ | 1.04 | $ | (0.07 | ) | ||||||||||
* Noncontrolling interest resulted from grants of restricted stock in 1st Detect and Astrogenetix to certain employees, officers and directors. Please refer to the September 30, 2014 10-Q filed with the Securities and Exchange Commission for further detail.
| ASTROTECH CORPORATION AND SUBSIDIARIES | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
(In thousands, except share data) | |||||||||||
| December 31, 2014 | June 30, 2014 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 6,790 | $ | 3,831 | |||||||
| Short-term investments | 35,580 | — | |||||||||
| Accounts receivable, net of allowance | 55 | 59 | |||||||||
| Prepaid expenses and other current assets | 993 | 389 | |||||||||
| Discontinued operations – current assets | — | 1,405 | |||||||||
| Total current assets | 43,418 | 5,684 | |||||||||
| Property and equipment, net | 1,154 | 1,211 | |||||||||
| Indemnity receivable | 6,100 | — | |||||||||
| Discontinued operations – net of current assets | — | 33,887 | |||||||||
| Total assets | $ | 50,672 | $ | 40,782 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 300 | $ | 996 | |||||||
| Accrued liabilities and other | 1,201 | 1,753 | |||||||||
| Income tax payable | 448 | — | |||||||||
| Discontinued operations – current liabilities | — | 7,344 | |||||||||
| Total current liabilities | 1,949 | 10,093 | |||||||||
| Other liabilities | 127 | 152 | |||||||||
| Discontinued operations – net of current liabilities | — | 237 | |||||||||
| Total liabilities | 2,076 | 10,482 | |||||||||
| Stockholders’ equity | |||||||||||
| Preferred stock, no par value, convertible, 2,500,000 authorized shares, no issued and outstanding shares, at December 31, 2014 and June 30, 2014 | — | — | |||||||||
| Common stock, no par value, 75,000,000 shares authorized; 20,013,787 and 19,856,454 shares issued at December 31, 2014 and June 30, 2014 | 184,089 | 183,866 | |||||||||
| Treasury stock, 470,460 shares at cost | (641 | ) | (237 | ) | |||||||
| Additional paid-in capital | 1,088 | 1,671 | |||||||||
| Accumulated deficit | (135,940 | ) | (156,800 | ) | |||||||
| Noncontrolling interest | — | 1,800 | |||||||||
| Total stockholders’ equity | 48,596 | 30,300 | |||||||||
| Total liabilities and stockholders’ equity | $ | 50,672 | $ | 40,782 | |||||||
| ASTROTECH CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
| Unaudited Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||
| EBITDA | $ | (2,886 | ) | $ | (2,122 | ) | $ | 21,884 | $ | (454 | ) | |||||||||
| Depreciation & amortization | 86 | 581 | 457 | 1,176 | ||||||||||||||||
| Interest expense | — | 65 | 63 | 131 | ||||||||||||||||
| Income tax benefit | (550 | ) | 6 | 503 | 6 | |||||||||||||||
| Net Income (loss) | (2,422 | ) | (2,774 | ) | 20,861 | (1,767 | ) | |||||||||||||
| Less: Net loss attributable to NCI | — | (220 | ) | — | (466 | ) | ||||||||||||||
| Net loss attributable to ASTC | $ | (2,422 | ) | (2,554 | ) | 20,861 | (1,301 | ) | ||||||||||||
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.
Contacts:
Eric Stober, 512-485-9530
Chief
Financial Officer
