SOURCE: SpaceDev, Inc.

November 13, 2008 20:36 ET

SpaceDev Reports Third Quarter Fiscal 2008 Results

Revenues Increase With Growth in Operating Income, Net Income and Adjusted EBITDA

POWAY, CA--(Marketwire - November 13, 2008) - SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the three and nine months ended September 30, 2008 with year to date revenues of approximately $28.3 million, an increase of over 11.6%, net income for the nine months of almost $500,000 and Adjusted EBITDA of approximately $2.1 million for the same nine month period.

"We are fortunate to have the industry's most outstanding employees and I would like to thank them for their dedication and hard work which enabled these results," said Mark N. Sirangelo, SpaceDev's Chairman and Chief Executive Officer.

Revenue -- SpaceDev reported revenue of approximately $9.0 million and $28.3 million for the three and nine months ended September 30, 2008, an increase of approximately $1.4 million and $3.0 million, or 18.9% and 11.7% for the three and nine month periods respectively, from the approximate $7.6 million and $25.3 million in revenue reported for the same three and nine month periods in 2007.

Income from Operations -- SpaceDev realized income from operations of approximately $348,000 and $586,000 in the three and nine months ended September 30, 2008, which included approximately $164,000 and $420,000 for stock option expense, compared to an operating income of $164,000 and $539,000 for the same three and nine months in 2007, which included approximately $90,000 and $302,000 for stock option expense. In addition and included as operating expenses, the Company increased by 135% its investment in R&D, investing year to date over $623,000 in 2008 compared to $265,000 in 2007.

Net Income -- Net income for the three and nine months ended September 30, 2008 was approximately $293,000 and $498,000 respectively, compared to approximately $58,000 and $214,000 for the same three and nine month periods in 2007 with $0.00 earnings per share for both quarters and earnings per share of $0.01 for the nine months to date in 2008 and $0.00 for 2007.

Cash Position -- At September 30, 2008, SpaceDev's cash position, which included cash reserves and cash available for investment, was approximately $5.8 million compared to approximately $6.5 million at December 31, 2007. The change is primarily due to the repurchase of preferred stock of $1,368,000 year to date. The Company's current ratio improved to 2.11 (at September 30, 2008) from 2.04 (at September 30, 2007).

Adjusted EBITDA

During the three and nine months ended September 30, 2008, SpaceDev's Adjusted EBITDA was approximately $0.9 million, or 10.0% of net sales, and $2.1 million or 7.4% of net sales, respectively, compared to an adjusted EBITDA of $0.5 million, or 6.6% of net sales, and $1.4 million, or 5.5% of net sales, for the same three and nine months in 2007.

Conference Call

Due to legal requirements associated with submission to the Company's stockholders of a proposal to adopt the October 20, 2008 Agreement and Plan of Merger under which the Company would be acquired by Sierra Nevada Corporation, SpaceDev will not be hosting a conference call this quarter.

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 success or failure of the Company's agreement to be acquired by Sierra Nevada Corporation, 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)
                                               September 30,  December 31,
                                                    2008          2007
                                                ------------  ------------
Assets

Current Assets
   Cash                                         $  5,802,077  $  6,521,003
   Accounts receivable, net                        4,483,032     5,019,600
   Costs in excess of billings                       658,843     1,413,685
   Inventory                                       1,130,934     1,006,229
   Other current assets                              456,579       702,120
                                                ------------  ------------
Total Current Assets                              12,531,465    14,662,637

Fixed Assets - Net                                 5,095,024     4,420,020

Intangible Assets                                    789,032       746,392

Goodwill                                          11,875,331    11,233,665

Other Assets                                       1,003,377     1,045,272
                                                ------------  ------------

                                                ------------  ------------
Total Assets                                    $ 31,294,229  $ 32,107,986
                                                ============  ============

Liabilities and Stockholders' Equity

Current Liabilities
   Accounts payable and accrued expenses        $  1,734,197  $  1,491,116
   Current portion of notes payable and
    capitalized lease obligations                    217,495       162,885
   Accrued payroll, vacation and related taxes     1,189,446     1,424,462
   Billings in excess of costs                     1,835,251     2,463,366
   Other accrued liabilities                       1,022,912     1,632,768
                                                ------------  ------------
Total Current Liabilities                          5,999,301     7,174,597

Notes Payable and Capitalized Lease
 Obligations, Less Current Maturities                767,616       343,621

Deferred Gain - Assets held for sale                 508,179       596,133

Other Long Term Liabilities                          693,660       643,168
                                                ------------  ------------
Total Liabilities                                  7,968,756     8,757,519

Commitments and Contingencies

Stockholders’ Equity
   Convertible preferred stock, $0.001 par
    value, 10,000,000 shares authorized, and
    250,291 and 251,659 shares issued and
    outstanding, respectively
   Series C Convertible preferred stock                  248           248
   Series D-1 Convertible preferred stock                  2             3
   Common stock, $0.0001 par value;
    100,000,000 shares authorized, and
    43,528,769 and 42,306,871 shares issued and
    outstanding, respectively                          4,353         4,231
   Additional paid-in capital                     40,194,274    40,441,249
   Accumulated deficit                           (16,873,404)  (17,095,264)
                                                ------------  ------------
Total Stockholders’ Equity                        23,325,473    23,350,467
                                                ------------  ------------
Total Liabilities and Stockholders' Equity      $ 31,294,229  $ 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
September 30,                        2008        %        2007        %
                                 ------------  -----  ------------  -----

Net Sales                        $  9,042,268  100.0% $  7,606,322  100.0%
Total Cost of Sales*                7,263,658   80.3%    5,402,113   71.0%
                                 ------------  -----  ------------  -----

Gross Margin                        1,778,610   19.7%    2,204,209   29.0%
                                 ------------  -----  ------------  -----
Operating Expenses

  Marketing and sales                 811,384    9.0%      796,695   10.5%
  Research and development            169,446    1.9%      101,890    1.3%
  General and administrative          449,728    5.0%    1,141,599   15.0%
                                 ------------  -----  ------------  -----
Total Operating Expenses*           1,430,558   15.8%    2,040,184   26.8%
                                 ------------  -----  ------------  -----

Income from Operations                348,052    3.8%      164,025    2.2%
                                 ------------  -----  ------------  -----

Non-Operating Income/(Expense)
  Interest and other income            22,233    0.2%       13,868    0.2%
  Interest and other expense          (45,929)  -0.5%      (63,104)  -0.8%
  Gain on building sale                29,318    0.3%       29,319    0.4%
  Loan fee                            (49,635)  -0.5%      (86,302)  -1.1%
                                 ------------  -----  ------------  -----

Total Non-Operating
 Income/(Expense)                     (44,013)  -0.5%     (106,219)  -1.4%
                                 ------------  -----  ------------  -----
Income Before Taxes                   304,039    3.4%       57,806    0.8%

Income tax provision                   10,700    0.1%            -    0.0%
                                 ------------  -----  ------------  -----
Net Income                       $    293,339    3.2% $     57,806    0.8%
                                 ============  =====  ============  =====

Net Income                            293,339               57,806
    Less Preferred dividend
     payments                         (80,979)            (133,462)
    Net Income (Loss) Available
     to Common Stockholders           212,360              (75,656)
Net Income Per Share:            $       0.00         $      (0.00)
                                 ------------  -----  ------------  -----
  Weighted-Average Shares
   Outstanding                     43,337,330           30,914,735
Fully Diluted Net Income (Loss)
 Per Share:                      $       0.00         $      (0.00)
                                 ------------  -----  ------------  -----
  Fully Diluted Weighted-Average
   Shares Outstanding              43,563,060           30,914,735
                                 ============  =====  ============  =====

 * The following table shows how the Company's stock option
          expense would be allocated to all expenses.

 Cost of sales                   $     52,529         $     84,701
 Marketing and sales                   16,219               25,536
 Research and development                   -                    -
 General and administrative            95,103              (20,197)
                                 ------------  -----  ------------  -----
Total Non-Cash Stock Option
 Expense                         $    163,851         $     90,040
                                 ============  =====  ============  =====



                              SpaceDev, Inc.
                             and Subsidiaries
                  Consolidated Statements of Operations

                                            Nine Months Ended
September 30,                        2008        %        2007        %
                                 ------------  -----  ------------  -----

Net Sales                        $ 28,261,633  100.0% $ 25,310,938  100.0%
Total Cost of Sales*               22,023,363   77.9%   18,519,652   73.2%
                                 ------------  -----  ------------  -----

Gross Margin                        6,238,270   22.1%    6,791,286   26.8%
                                 ------------  -----  ------------  -----
Operating Expenses

  Marketing and sales               2,271,189    8.0%    2,189,571    8.7%
  Research and development            622,913    2.2%      265,045    1.0%
  General and administrative        2,758,020    9.8%    3,798,169   15.0%
                                 ------------  -----  ------------  -----
Total Operating Expenses*           5,652,122   20.0%    6,252,785   24.7%
                                 ------------  -----  ------------  -----

Income from Operations                586,148    2.1%      538,501    2.1%
                                 ------------  -----  ------------  -----

Non-Operating Income/(Expense)
  Interest and other income            83,004    0.3%       44,847    0.2%
  Interest and other expense          (88,440)  -0.3%     (196,417)  -0.8%
  Gain on building sale                87,952    0.3%       87,955    0.3%
  Loan fee                           (148,814)  -0.5%     (259,865)  -1.0%
                                 ------------  -----  ------------  -----

Total Non-Operating
 Income/(Expense)                     (66,298)  -0.2%     (323,480)  -1.3%
                                 ------------  -----  ------------  -----
Income Before Taxes                   519,850    1.8%      215,021    0.8%

Income tax provision                   21,915    0.1%          800    0.0%
                                 ------------  -----  ------------  -----
Net Income                       $    497,935    1.8% $    214,221    0.8%
                                 ============  =====  ============  =====

Net Income                            497,935              214,221
    Less Preferred dividend
     payments                        (276,075)            (416,096)
    Net Income (Loss) Available
     to Common Stockholders           221,860             (201,875)
Net Income Per Share:            $       0.01         $      (0.01)
                                 ------------  -----  ------------  -----
  Weighted-Average Shares
   Outstanding                     42,841,536           30,044,852
Fully Diluted Net Income (Loss)
 Per Share:                      $       0.00         $      (0.01)
                                 ------------  -----  ------------  -----
  Fully Diluted Weighted-Average
   Shares Outstanding              47,724,890           30,044,852
                                 ============  =====  ============  =====


 * The following table shows how the Company's stock option
          expense would be allocated to all expenses.

 Cost of sales                   $    182,040         $    162,074
 Marketing and sales                   28,277               58,864
 Research and development                   -                    -
 General and administrative           209,962               81,206
                                 ------------  -----  ------------  -----
Total Non-Cash Stock Option
 Expense                         $    420,279         $    302,144
                                 ============  =====  ============  =====

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 nine and three months ended September 30, 2008 and 2007:

For the three months ended          September 30, 2008  September 30, 2007
                                        (Unaudited)         (Unaudited)
                                    ------------------  ------------------
Net Income                          $          293,339  $           57,806
                                    ------------------  ------------------
Interest and other Income                      (22,233)            (13,868)
Interest and other Expense                      45,929              63,104
Provision for Income Taxes                      10,700                   -
Depreciation and Amortization                  369,655             294,110
Loan Fees on Revolving Credit
 Facility                                       49,635              86,302
Stock Option Expense                           163,851              90,040
Gain on Building Sale                          (29,318)            (29,319)
                                    ------------------  ------------------
Adjusted EBITDA                     $          881,558  $          548,175
                                    ==================  ==================


For the nine months ending          September 30, 2008  September 30, 2007
                                        (Unaudited)         (Unaudited)
                                    ------------------  ------------------
Net Income                          $          497,935  $          214,221
                                    ------------------  ------------------
Interest and other Income                      (83,004)            (44,847)
Interest and other Expense                      88,440             196,417
Provision for Income Taxes                      21,915                 800
Depreciation and Amortization                1,045,365             887,031
Loan Fees on Revolving Credit
 Facility                                      148,814             259,865
Stock Option Expense                           420,279             302,144
Gain on Building Sale                          (87,952)            (87,955)
                                    ------------------  ------------------
Adjusted EBITDA                     $        2,051,792  $        1,727,675
                                    ==================  ==================

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, 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.

Contact Information

  • SpaceDev Contacts

    Investor:
    Richard Slansky/Jessica Schwarz

    Media:
    Mark Sirangelo
    (858) 375-2026