- Successfully launched 7 customer satellites onboard its
LauncherOne rocket during the Above the Clouds mission on January
13, 2022, the company’s third successful launch.
- Full year 2021 revenue increased to $7.4 million, up from $3.8
million in the prior year period.
- Growing backlog of contracts, including selection by NASA’s
launch service program to support the agency’s VADR missions.
- Completed its going public transaction and began trading on the
Nasdaq stock exchange on December 30, 2021.
Virgin Orbit (Nasdaq: VORB) (“Virgin Orbit” or the “Company”),
the responsive launch and space solutions company, today announced
its financial results for the fourth quarter and full year ended
December 31, 2021.
Virgin Orbit’s Chief Executive Officer, Dan Hart, commented,
“2021 marked a transformational year for Virgin Orbit as we
completed several strategic milestones, including successful
launches in 2021 and January 2022, the completion of our going
public transaction and significant expansion of our global partners
and customers. We are rapidly growing our backlog which provides
launch visibility, and we continue to see a favorable response in
the market for our services and launch capabilities.”
Mr. Hart continued, “As we look ahead to 2022, we are
well-positioned to execute on multiple launches with a diverse set
of customers and geographies. This includes the first ever space
launch from the United Kingdom, which is made possible by our
flexible launch capabilities. Our pipeline of opportunities has
continued to grow as governments and private companies recognize
the value proposition of our services.”
Recent Business Highlights:
- Flew three launches with 100% mission success since January
2021, carrying 26 satellites to space serving all key customer
groups.
- Signed a new launch contract with Arqit Quantum Inc. that
covers five dedicated launches.
- Signed an MOU with Astroscale Holdings Inc. to establish a new
partnership to seek opportunities to cooperate on a series of space
initiatives.
- Selected by NASA to provide launch services for the VADR
missions.
- Signed an MOU with ANA Holdings to provide up to twenty
launches.
- Participated in the G7 Summit and met with the British and
Australian Prime Ministers.
- Awarded a funded study with the Missile Defense Agency.
- Signed several strategic investment agreements to enhance the
Company’s space activities.
- Completed a going public transaction with NexGen Acquisition
Corp. II and began trading on the Nasdaq exchange on December 30,
2021.
2021 Financial Highlights:
- As of December 31, 2021, our binding and non-binding backlog
was $575 million, an increase of over 500% from $86 million at the
end of 2020. Of this, binding agreements was $152 million, an
increase of more than 75% from $86 million at the end of 2020.
- Full year revenue of $7.4 million, up from $3.8 million in
prior year period.
- Full year operating loss of $(171.4) million, compared to an
operating loss of $(179.5) million in the prior year period.
- Full year net loss of $(157.3) million, compared to a net loss
of $(121.7) million in the prior year period.
- Full year Adjusted EBITDA of $(140.4) million, improved from
$(157.5) million in the prior year period.
- Cash and cash equivalents of $194.2 million as of December 31,
2021, up from $22.4 million as of December 31, 2020.
- Capital Expenditures totaled $25.3 million for the year ended
December 31, 2021, up from $13.3 million as of December 31,
2020.
Conference Call Information:
The Company will conduct a conference call starting at 4:30 pm
ET on Tuesday, March 29, 2022 to review the results for the fourth
quarter and full year ended December 31, 2021.
Participants may access the call at 1-877-407-0792,
international callers may use 1-201-689-8263, and request to join
the Virgin Orbit earnings call. A live webcast along with
supplemental information will also be available at
https://investors.virginorbit.com/news-events/ir-calendar.
A telephonic replay will be available shortly after the
conclusion of the call and until Tuesday, April 12, 2022.
Participants may access the replay at 1-844-512-2921, international
caller may use 1-412-317-6671 and enter access code 13727987. An
archived replay of the call will be available on the investors
portion of the Virgin Orbit website at
https://investors.virginorbit.com/.
ABOUT VIRGIN ORBIT
Virgin Orbit operates one of the most flexible and responsive
space launch systems ever built. Founded by Sir Richard Branson in
2017, the company began commercial service in 2021, and has already
delivered commercial, civil, national security, and international
satellites into orbit. Virgin Orbit’s LauncherOne rockets are
designed and manufactured in Long Beach, California, and are
air-launched from a modified 747- 400 carrier aircraft that allows
Virgin Orbit to operate from locations all over the world in order
to best serve each customer’s needs.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to the Company’s ability to access sources of capital,
including debt financing and other sources of capital to finance
operations and growth; its ability to grow market share in the
developing space economy; market acceptance of its current and
planned products and services and ability to achieve sufficient
production volumes, as well as the factors, risks and uncertainties
included in the Company’s prospectus dated February 2, 2022, as
well as in the Company’s subsequent filings with the Securities and
Exchange Commission (the "SEC"), accessible on the SEC’s website at
www.sec.gov and the Investor Information section of the Company’s
website at www.virginorbit.com. These filings identify and address
other important risks and uncertainties that could cause the
Company’s actual events and results to differ materially from those
contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and Virgin Orbit assumes no obligation and does not intend to
update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. Virgin
Orbit gives no assurance that it will achieve its expectations.
Fourth Quarter and Full Year 2021 Financial Results
VIRGIN ORBIT HOLDINGS,
INC.
Unaudited Consolidated
Statements of Operations and Comprehensive Loss
(In thousands, except for per
share data)
Three Months Ended December
31,
Years Ended December
31,
2021
2020
2021
2020
Revenue
$
155
$
1,167
$
7,385
$
3,840
Cost of revenue
12,502
1,241
37,872
3,168
Gross profit
(12,347
)
(74
)
(30,487
)
672
Selling, general and administrative
expenses
23,659
9,493
92,796
43,003
Research and development expenses
11,606
35,661
48,079
137,135
Operating loss
(47,612
)
(45,228
)
(171,362
)
(179,466
)
Other income (expense):
Change in fair value of equity
investments
1,940
—
6,792
—
Change in fair value of liability
classified warrants
3,749
—
3,749
—
Interest expense, net
(5
)
(1,222
)
(24
)
(4,852
)
Other income, net
208
62,169
3,560
62,671
Total other income (expense), net:
5,892
60,947
14,077
57,819
Loss before income taxes
(41,720
)
15,719
(157,285
)
(121,647
)
Provision for income taxes
6
—
6
5
Net loss
(41,726
)
15,719
(157,291
)
(121,652
)
Other comprehensive loss
Foreign currency translation
adjustment
35
(59
)
137
(93
)
Total comprehensive loss
$
(41,691
)
$
15,660
$
(157,154
)
$
(121,745
)
Net loss per share:
Basic and diluted
$
(0.14
)
$
0.06
$
(0.55
)
$
(0.50
)
Weighted average shares outstanding
Basic and diluted
302,162,066
258,509,661
287,527,234
244,163,821
VIRGIN ORBIT HOLDINGS,
INC.
Unaudited Consolidated Balance
Sheets
As of December 31, 2021 and
December 31, 2020
(In thousands, except per share
data)
As of
December 31,
2021
December 31,
2020
Assets
Current assets
Cash and cash equivalents
$
194,154
$
22,433
Restricted cash
828
4,353
Accounts receivable, net
2,080
3,358
Contract assets
3,077
—
Inventory
33,927
66
Prepaid expenses
4,712
6,421
Total current assets
238,778
36,631
Property, plant and equipment, net
61,425
49,103
Right-of-use assets
14,685
14,466
Investments
13,498
—
Deferred transaction costs
—
—
Other noncurrent assets
3,354
403
Total assets
$
331,740
$
100,603
Liabilities and Stockholders’
Equity (Deficit)
Current liabilities
Accounts payable
$
10,334
$
3,303
Current portion of lease obligation
1,642
1,154
Accrued liabilities
23,790
18,419
Deferred revenue
12,150
4,119
Due to related party
42
117
Total current liabilities
47,958
27,112
Lease obligation, net of current
portion
14,078
14,179
Deferred revenue, net of current
portion
28,991
23,520
Long-term debt due to Parent Company
—
235,108
Public and private placement warrant
liabilities
20,188
—
Provision for contract losses and other
long-term liabilities
7,555
306
Total liabilities
118,770
300,225
Commitments and contingencies (Note
17)
Stockholders’ equity (deficit)
Preferred stock, $0.0001 par value,
25,000,000 shares authorized; none issued and outstanding
—
—
Common stock, $0.0001 par value,
2,000,000,000 shares authorized; 334,919,914 and 0 shares issued
and outstanding as of December 31, 2021 and 2020, respectively
34
27
Additional paid-in capital
1,033,393
463,380
Accumulated deficit
(820,454
)
(663,163
)
Accumulated other comprehensive (loss)
income
(3
)
134
Total stockholders’ equity (deficit)
212,970
(199,622
)
Total liabilities and stockholders’ equity
(deficit)
$
331,740
$
100,603
VIRGIN ORBIT HOLDINGS,
INC.
Unaudited Consolidated
Statements of Cash Flows
Year ended December 31, 2021
and 2020
(In thousands)
Three Months Ended December
31,
Years Ended December
31,
2021
2020
2021
2020
Cash flows from operating activities
Net loss
$
(41,729
)
$
15,720
$
(157,291
)
$
(121,652
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
3,650
3,461
14,433
13,975
Stock-based compensation
2,313
904
10,621
3,154
Inventory write-down
2,509
—
4,078
—
Non-cash interest on long-term debt, due
to Parent
—
1,217
—
4,831
Non-cash investment in Sky and Space
—
—
(1,706
)
—
Change in fair value of equity
investments
(1,940
)
—
(6,792
)
—
Change in fair value of liability
classified warrants
(3,749
)
—
(3,749
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(757
)
(1,904
)
1,278
(1,351
)
Contract assets
(409
)
—
(3,077
)
—
Inventory
(13,595
)
1,117
(37,940
)
(66
)
Prepaid expenses
1,233
(458
)
(1,259
)
320
Deferred transaction costs
230
—
—
—
Other noncurrent assets
(2
)
28
(32
)
(82
)
Due (to) from related party, net
8
(38
)
(75
)
898
Accounts payable
1,512
(4,608
)
6,639
(480
)
Other long-term liabilities
2,869
(228
)
2,142
(472
)
Accrued liabilities
3,719
3,212
5,326
5,921
Deferred revenue
1,821
(48,569
)
13,502
(48,090
)
Other, net
14
63
(95
)
78
Net cash used in operating activities
(42,303
)
(30,083
)
(153,997
)
(143,016
)
Cash flows from investing activities:
Purchase of property and equipment
(8,489
)
(3,688
)
(25,280
)
(13,337
)
Purchase of investment in Arqit
—
—
(5,000
)
—
Proceeds from sale of property and
equipment
—
—
—
39
Net cash used in investing activities
(8,489
)
(3,688
)
(30,280
)
(13,298
)
Cash flows from financing activities:
Payments of finance lease obligations
(69
)
(61
)
(257
)
(243
)
Proceeds from the exercise of stock
options
1,075
409
2,807
409
Advances to stock option holders
—
(18
)
18
(18
)
Cash received from non-controlling
interest
—
(220
)
—
—
Parent Company contributions
31,998
34,000
169,139
150,000
Parent Company distributions
—
—
—
(118,488
)
Proceeds from reverse recapitalization
200,102
—
200,102
—
Payment of transaction costs related to
reverse recapitalization
(19,336
)
—
(19,336
)
—
Net cash provided by financing
activities
213,770
34,110
352,473
31,660
Net increase (decrease) in cash and cash
equivalents and restricted cash
162,978
339
168,196
(124,654
)
Cash and cash equivalents and restricted
cash at the beginning of the period
32,004
26,447
26,786
151,440
Cash and cash equivalents and restricted
cash at the end of the period
$
194,982
$
26,786
$
194,982
$
26,786
Cash and cash equivalents
$
194,154
$
22,433
$
194,154
$
22,433
Restricted cash
828
4,353
828
4,353
Cash and cash equivalents and restricted
cash
$
194,982
$
26,786
$
194,982
$
26,786
Use of Non-GAAP Financial Measures
(Unaudited)
This press release references Adjusted EBITDA, a financial
measure that is not prepared in accordance with generally accepted
accounting principles in the United States (GAAP). The Company
defines Adjusted EBITDA as earnings before interest expense, taxes,
depreciation and amortization, stock-based compensation, and
certain other items the Company believes are not indicative of its
core operating performance. Non-GAAP financial measures are not a
substitute for or superior to measures of financial performance
prepared in accordance with GAAP and should not be considered as an
alternative to any other performance measures derived in accordance
with GAAP.
The Company believes that presenting Adjusted EBITDA provides
useful supplemental information to investors about the Company in
understanding and evaluating its operating results, enhancing the
overall understanding of its past performance and future prospects,
and allowing for greater transparency with respect to key financial
metrics used by its management in financial and
operational-decision making. However, there are a number of
limitations related to the use of Adjusted EBITDA or any other
non-GAAP measures and their nearest GAAP equivalents. For example,
other companies may calculate non-GAAP measures differently, or may
use other measures to calculate their financial performance, and
therefore any non-GAAP measures the Company uses may not be
directly comparable to similarly titled measures of other
companies.
A reconciliation of Adjusted EBITDA to net loss for the three
months ended December 31, 2021 and 2020 and years ended December
31, 2021 and 2020, respectively, are set forth below:
Three Months Ended December
31,
Years Ended December
31,
2021
2020
2021
2020
(In thousands)
Net Loss
$
(41,726
)
$
15,719
$
(157,291
)
$
(121,652
)
Depreciation and amortization
3,650
3,461
14,433
13,975
Stock-based compensation
2,313
904
10,621
3,154
Inventory write-down
2,509
—
4,078
—
Loss on sale of fixed asset disposal
—
—
—
—
Non-cash interest on long-term debt, due
to Parent Company
—
1,217
—
4,831
Non-cash investment in Sky and Space
—
—
(1,706
)
—
Change in fair value of equity
investments
(1,940
)
—
(6,792
)
—
Change in fair value of liability
classified warrants
(3,749
)
—
(3,749
)
—
Gain on contract termination
—
(62,671
)
—
(62,671
)
Interest expense, net
5
1,222
24
4,852
Provision for income taxes
6
—
6
5
Adjusted EBITDA
$
(38,932
)
$
(40,148
)
$
(140,376
)
$
(157,506
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220329005910/en/
INQUIRIES: Investor
Relations, Virgin Orbit: investors@virginorbit.com
Media, Virgin Orbit: Alison Patch, Senior Director of
Communications press@virginorbit.com 949-616-2504
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