Quarterly Highlights
• 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 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 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
and market acceptance of products and services, 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 September 30, 2014
2013
(unaudited)
Revenue $ 320 $ — Cost of revenue 277 —
Gross profit 43 —
Operating expenses: Selling, general and administrative 1,960 1,551
Research and development 692 805 Total
operating expenses 2,652 2,356
Loss
from operations (2,609 ) (2,356 )
Interest and other expense, net 12 12
Loss from continuing operations before income taxes
(2,597 ) (2,344 ) Income tax
benefit 1,325 1,173
Loss from
continuing operations (1,272 ) (1,171
) Discontinued operations Income from operation of
ASO business (including gain from sale of $25.6 million) 26,933
3,352 Income tax expense (2,378 ) (1,173 )
Income
from discontinued operations 24,555
2,179 Net income 23,283
1,008 Less: Net loss attributable to
noncontrolling interest* — (245 )
Net
income attributable to Astrotech Corporation $
23,283 $ 1,253 Amounts
attributable to Astrotech Corporation: Income (loss) from
continuing operations, net of tax
$ (1,272 )
$ (926 )
Income from discontinued operations, net of tax 24,555
2,179
Net income attributable to Astrotech
Corporation $ 23,283 $ 1,253
Weighted average common shares outstanding: Basic and
diluted 19,548 19,470 Basic and diluted net income (loss)
per common share: Net income (loss) attributable to Astrotech
Corporation from continuing operations
$ (0.09 )
$
(0.05 ) Net income from discontinued operations 1.25
0.11 Net income attributable to Astrotech Corporation
$ 1.16
$ 0.06
* 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) September 30,
June 30, 2014 2013
(unaudited) Assets Cash and cash equivalents $ 45,271
$ 3,831 Accounts receivable, net of allowance 327 59 Prepaid
expenses and other current assets 1,132 389 Discontinued operations
– current assets — 1,405
Total current assets
46,730 5,684 Property and equipment, net 1,168 1,211
Indemnity receivable 6,100 — Discontinued operations – net of
current assets — 33,887
Total assets $
53,998 $ 40,782 Liabilities and
stockholders’ equity Current liabilities Accounts payable $ 217
$ 996 Accrued liabilities and other 1,326 1,753 Income tax payable
1,053 — Discontinued operations – current liabilities —
7,344
Total current liabilities 2,596
10,093 Other liabilities 148 152 Discontinued
operations – net of current liabilities — 237
Total liabilities 2,744 10,482
Total stockholders’ equity 51,254
30,300 Total liabilities and stockholders’ equity
$ 53,998 $ 40,782
ASTROTECH CORPORATION AND SUBSIDIARIES Unaudited
Reconciliation of Non-GAAP Measures Earnings Before
Interest, Taxes, Depreciation and Amortization (In
thousands) Three Months Ended September
30, 2014 2013 (unaudited)
Adjusted EBITDA from continuing operations including gain from
the sale of ASO business $ 23,122 $
(2,261 ) Gain from sale of ASO business 25,630
—
EBITDA from continuing operations
$ (2,508 ) $ (2,261 )
Depreciation & amortization 89 83 Interest expense — — Income
tax benefit (1,325 ) (1,173 )
Loss from continuing
operations $ (1,272 ) $
(1,171 )
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.
Astrotech CorporationEric Stober, 512-485-9530Chief Financial
Officer
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