POWAY, CA -- 05/09/08 --
SpaceDev, Inc. (OTCBB: SPDV) reported its
financial results for the three months ended March 31, 2008 with revenue of
over $10.3 million, an increase of over 14%, net income of approximately
$57,000 and Adjusted EBITDA of over $490,000.
"We reached a new revenue milestone for SpaceDev this quarter with our
first $10 million quarter, as we continue to build the Company with major
new programs, while closing-out some of our legacy long-term fixed price
development programs," said Mark N. Sirangelo, SpaceDev's Chairman and
Chief Executive Officer. "We are successfully executing on our existing
work, while remaining focused on building the foundation of an emerging
mid-market aerospace company for our stockholders."
Revenue - SpaceDev reported revenue of approximately $10.3 million for the
three months ended March 31, 2008, an increase of approximately $1.3
million, or 14%, from the approximate $9.1 million in revenue reported for
the same period in 2007. Most of the revenue increase was due to the
growth of non-government sector programs by approximately $2.0 million
offset by a slight decline in government based contracts.
Income from Operations - SpaceDev realized income from operations of
approximately $58,000 in the first quarter of 2008, which included
approximately $99,500 for stock option expense, compared to an operating
income of $221,000 for the same three months in 2007, which included
approximately $105,000 for stock option expense.
Net Income; Adjusted EBITDA - Net income for the 2008 first quarter was
approximately $57,000, compared to approximately $109,000 for the same
period in 2007 with ($0.00) earnings per share for both quarters. During
the first quarter of 2008, SpaceDev's Adjusted EBITDA was approximately
$493,000, or 5% of net sales, compared to an adjusted EBITDA of $642,000,
or 7% of net sales, for the same quarter in 2007.
Cash Position - At March 31, 2008, SpaceDev's cash position, which included
cash reserves and cash available for investment, was approximately $4.7
million compared to approximately $6.5 million at December 31, 2007.
"A significant item of note in the quarter was our increased expenditure on
small satellite related research and development activities," said Richard
B. Slansky, SpaceDev's President and Chief Financial Officer. "During the
first quarter of 2008, our R&D expense totaled $259,000 compared to only
$39,000 during the same period in 2007. We will continue to invest
prudently in internal R&D to strengthen our intellectual property portfolio
in our key business areas for the future. Also, our cash position changed
primarily due to a government contract modification delay; however, our
accounts receivable increased by $3.1 million to $8.1 million at March 31,
2008 from $5.0 million at December 31, 2007."
First Quarter Conference Call Details
SpaceDev will host a conference call on Monday, May 12, 2008 at 11:00 a.m.
EDT to discuss the quarter results. All those interested in hearing
management's discussion are invited to join the call by dialing (866)
289-3234 and then entering PIN 8832 when prompted. A replay of the
conference call will also be available for seven days through the investor
relations section of SpaceDev's website, www.spacedev.com.
About SpaceDev
SpaceDev, Inc. is a space technology/aerospace company that creates and
sells affordable and innovative space products and mission solutions. For
more information, visit www.spacedev.com.
For more information on SpaceDev, please review the Company's filings on
the SEC EDGAR system at www.sec.gov or at www.spacedev.com.
Except for factual statements made herein, this news release consists of
forward-looking statements that involve risks, uncertainties and
assumptions that are difficult to predict. Words such as "believe,"
"intends," "expects," "plans," "anticipates" and variations thereof,
identify forward-looking statements, although their absence does not mean
that a statement is not forward looking. Forward-looking statements are
based on the Company's current expectations, and are not guarantees of
performance. The Company's actual results could differ materially from its
current expectations. Factors that could contribute to such differences
include risks and uncertainties associated with: the Company's ability to
effectively integrate acquisitions; rescheduling or cancellation of
customer orders; uncertainties in the government budgeting process; ability
to control costs and expenses; and larger competitors' competitive
advantages. Reference is also made to other factors described in the
Company's periodic reports filed with the SEC, including the Company's most
current Annual Report on Form 10-KSB. These forward-looking statements
speak only as of the date of this release. SpaceDev does not undertake to
update these forward-looking statements.
SpaceDev, Inc.
and Subsidiaries
Consolidated Balance Sheets
(Unaudited) (Audited)
March 31, December 31,
2008 2007
------------ ------------
Assets
Current Assets
Cash $ 4,716,190 $ 6,521,003
Accounts receivable, net 8,094,985 5,019,600
Costs in excess of billings 1,005,269 1,413,685
Inventory 1,233,971 1,006,229
Other current assets 609,387 702,120
------------ ------------
Total Current Assets 15,659,802 14,662,637
Fixed Assets - Net 4,232,047 4,420,020
Intangible Assets 698,564 746,392
Goodwill 11,233,665 11,233,665
Other Assets 1,031,669 1,045,272
------------ ------------
------------ ------------
Total Assets $ 32,855,747 $ 32,107,986
============ ============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses $ 2,124,511 $ 1,491,116
Current portion of notes payable and
capitalized lease obligations 142,132 162,885
Accrued payroll, vacation and related taxes 1,151,273 1,424,462
Billings in excess of costs 3,104,941 2,463,366
Other accrued liabilities 1,580,483 1,632,768
------------ ------------
Total Current Liabilities 8,103,340 7,174,597
Notes Payable and Capitalized Lease
Obligations, Less Current Maturities 305,322 343,621
Deferred Gain - Assets held for sale 566,815 596,133
Other Long Term Liabilities 669,219 643,168
------------ ------------
Total Liabilities 9,644,696 8,757,519
Commitments and Contingencies
Stockholders’ Equity
Convertible preferred stock, $0.001 par
value, 10,000,000 shares authorized, and
251,379 and 251,659 shares issued and
outstanding, respectively
Series C Convertible preferred stock 248 248
Series D-1 Convertible preferred stock 3 3
Common stock, $0.0001 par value;
100,000,000 shares authorized, and
42,517,192 and 42,306,871 shares issued and
outstanding, respectively 4,246 4,231
Additional paid-in capital 40,353,234 40,441,249
Accumulated deficit (17,146,680) (17,095,264)
------------ ------------
Total Stockholders’ Equity 23,211,051 23,350,467
------------ ------------
------------ ------------
Total Liabilities and Stockholders' Equity $ 32,855,747 $ 32,107,986
============ ============
Please reference SpaceDev's Form 10-Q to access the notes which are an
integral part of the consolidated financial statements.
SpaceDev, Inc.
and Subsidiaries
Consolidated Statements of Operations
Three Months Ended
March 31, 2008 % 2007 %
------------ ----- ------------ -----
(Unaudited) (Unaudited)
Net Sales $ 10,328,996 100.0% $ 9,057,048 100.0%
Total Cost of Sales* 7,963,147 77.1% 6,966,071 76.9%
------------ ----- ------------ -----
Gross Margin 2,365,849 22.9% 2,090,977 23.1%
------------ ----- ------------ -----
Operating Expenses
Marketing and sales 640,500 6.2% 586,614 6.5%
Research and development 258,549 2.5% 39,360 0.4%
General and administrative 1,408,830 13.6% 1,243,555 13.7%
------------ ----- ------------ -----
Total Operating Expenses* 2,307,878 22.3% 1,869,529 20.6%
------------ ----- ------------ -----
Income from Operations 57,971 0.6% 221,448 2.4%
------------ ----- ------------ -----
Non-Operating Income/(Expense)
Interest and other income 37,583 -0.2% 20,956 0.2%
Interest expense (17,979) 0.4% (75,358) -0.8%
Gain on building sale 29,317 0.3% 29,318 0.3%
Loan fee (49,315) -0.5% (86,301) -1.0%
------------ ----- ------------ -----
Total Non-Operating
Income/(Expense) (394) 0.0% (111,385) -1.2%
------------ ----- ------------ -----
Income Before Taxes 57,577 0.6% 110,063 1.2%
Income tax provision 307 0.0% 800 0.0%
------------ ----- ------------ -----
Net Income $ 57,270 0.6% $ 109,263 1.2%
============ ===== ============ =====
Net Income 57,270 109,263
Less Preferred dividend
payments (108,687) (143,762)
Net Loss Available to Common
Stockholders (51,417) (34,499)
Net Income Per Share: $ (0.00) $ (0.00)
------------ ----- ------------ -----
Weighted-Average Shares
Outstanding 42,444,225 29,570,306
============ ===== ============ =====
Fully Diluted Net Income Per
Share: $ (0.00) $ (0.00)
------------ ----- ------------ -----
Fully Diluted Weighted-Average
Shares Outstanding 42,444,225 29,570,306
* The following table shows how the Company's stock option expense
would be allocated to all expenses.
Cost of sales $ 68,767 $ 41,373
Marketing and sales 8,351 13,652
Research and development - -
General and administrative 22,418 49,594
------------ ----- ------------ -----
Total Non-Cash Stock Option
Expense $ 99,536 $ 104,619
============ ===== ============ =====
Please reference SpaceDev's Form 10-Q to access the notes which are an
integral part of the consolidated financial statements.
Non-GAAP Financial Measures and Adjusted EBITDA
Adjusted EBITDA is net income before interest, taxes, depreciation and
amortization, loan fees on SpaceDev's revolving credit facility, stock
option expense, and gain on the 2003 sale of SpaceDev's headquarters
building in Poway, CA. Not every company calculates EBITDA or Adjusted
EBITDA in the same way. The following table reconciles Adjusted EBITDA to
net income for the three months ended March 31, 2008 and 2007:
March 31, March 31,
For the three months ended 2008 2007
(Unaudited) (Unaudited)
------------ ------------
Net Income $ 57,270 $ 109,263
------------ ------------
Interest Income (37,583) (20,956)
Interest Expense 17,979 75,358
Provision for Income Taxes 307 800
Depreciation and Amortization 335,174 316,238
Loan Fees on Revolving Credit Facility 49,315 86,301
Stock Option Expense 99,536 104,619
Gain on Building Sale (29,317) (29,318)
------------ ------------
Adjusted EBITDA $ 492,681 $ 642,305
------------ ------------
This release contains disclosure of Adjusted EBITDA, which is a non-GAAP
financial measure within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. The definition of Adjusted EBITDA used
to calculate the Adjusted EBITDA figures presented above, while generally
consistent with the most common definition of EBITDA used by investors and
financial analysts, may not be comparable to similarly titled measures
reported by other companies. SpaceDev believes that Adjusted EBITDA
provides an important additional perspective on its operating results, its
ability to service its long-term obligations, its ability to fund
continuing growth, and its ability to continue as a going concern.
SpaceDev's management regularly evaluates its progress based on Adjusted
EBITDA. SpaceDev believes that Adjusted EBITDA, while providing useful
information, should not be considered in isolation or as an alternative to
other financial measures determined under GAAP, such as net income or loss
or cash flow.
SpaceDev Contacts:
Investor: Richard Slansky/Jessica Schwarz
Media: Mark Sirangelo
(858) 375-2026
