Q1 Business Highlights:
- Completed third consecutive successful launch on January 13,
2022; delivered satellites for the DoD, NASA, and a commercial
customer
- Selected by NASA to provide launch services for the VADR
missions
- Added Poland and Oman to list of potential Spaceports
- Announced payloads for first launch from UK
Virgin Orbit (Nasdaq: VORB) (“Virgin Orbit” or the “Company”),
the responsive space flight and services company, today announced
its financial results for the first quarter ended March 31,
2022.
Virgin Orbit’s Chief Executive Officer, Dan Hart, commented, “We
had a strong start to the year, beginning with our third
consecutive successful launch. As we ramp production and launch
rate, our team is laser focused on flawless execution of our next
mission for the DoD, followed by the first ever orbital launch from
the UK.”
Mr. Hart continued, “With the escalating geopolitical
environment, our ability to launch from airports around the world
has attracted growing interest. The differentiated capabilities of
our system to launch from anywhere, at any time, to any orbit, can
uniquely serve the national security community and our allies. We
believe Virgin Orbit is well positioned for future growth as the
space economy continues to rapidly develop.”
Recent Business Highlights:
- Announced our next launch, serving the U.S. Space Force Rocket
Systems Launch Program (RSLP) and the Department of Defense (DoD)
Space Test Program (STP)
- Signed binding launch contract with IQPS in May 2022 for launch
of synthetic aperture radar
- Secured two additional 747 aircraft
- Renamed and rebranded national security arm to Virgin Orbit
National Systems
- Craig R. Cooning (Major General USAF Ret.), former president of
Boeing’s Space and Network Systems business and Kimberly A. Crider
(Major General USSF Ret.), former U.S. Space Force acting Chief
Technology and Innovation Officer joined Virgin Orbit National
Systems’ board of directors
First Quarter 2022 Financial Highlights:
- Revenue of $2.1 million, compared to $5.5 million in first
quarter 2021, driven by launches contracted during early
development phase with introductory pricing
- Net loss of $62.6 million, compared to a net loss of $32.3
million in first quarter 2021, as a result of the expected revenue
recognition of contract losses given our initial low-rate
production phase as well as higher SG&A associated with
becoming a public company
- Adjusted EBITDA of $(49.6) million, compared to $(29.0) million
in the same prior year period
- Net cash used from operations of $61.6 million, compared to
$39.5 million in the same prior year period, as the Company
continues to invest in the business
- Capital expenditures of $5.0 million, compared to $5.2 million
in the same prior year period
- Free cash flow of $(66.6) million, compared to $(44.7) million
in the same prior year period
- Cash and cash equivalents of $127.4 million
- As of March 31, 2022, total non-binding and binding backlog was
$575.6 million* of which $156.9 million was binding
*Backlog as of March 31, 2022 included $22 million for a
non-binding memorandum of understanding that was terminated after
March 31, 2022, and will not be included in such amounts after such
termination.
Conference Call Information:
The Company will conduct a conference call starting at 4:30 pm
ET on Wednesday, May 11, 2022 to review the results for the first
quarter ended March 31, 2022 and provide a business update.
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 Wednesday, May 25, 2022.
Participants may access the replay at 1-844-512-2921, and
international callers may use 1-412-317-6671 and enter access code
13729410. 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, capable of launching at any time,
from any place, and to any orbit. 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, including
statements regarding the Company’s expectations as to the rate and
timing of future launches and anticipated growth. 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; its ability to convert backlog and
potential revenue into revenue; its expected timing for future
missions; market acceptance of its current and planned products and
services and ability to achieve sufficient production volumes and
anticipated mission timing, as well as the factors, risks and
uncertainties described in the “Risk Factors” section of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2021,
filed with the U.S. Securities and Exchange Commission (the “SEC”),
as well as in the Company’s subsequent filings with the SEC,
including but not limited to the Company’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2022, 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.
First Quarter 2022 Financial Results
VIRGIN ORBIT HOLDINGS, INC.
Condensed Consolidated Statements of Operations and Comprehensive
Loss (In thousands, except for per share data) (Unaudited)
Three Months Ended March
31,
2022
2021
Revenue
$
2,111
$
5,535
Cost of revenue
17,441
2,381
Gross (loss) profit
(15,330
)
3,154
Selling, general and administrative
expenses
32,426
19,483
Research and development expenses
10,803
17,831
Operating loss
(58,559
)
(34,160
)
Other (expense) income :
Change in fair value of equity
investments
(4,185
)
—
Change in fair value of liability
classified warrants
—
—
Interest expense, net
(28
)
(7
)
Other income
202
1,842
Total other (expense) income, net:
(4,011
)
1,835
Loss before income taxes
(62,570
)
(32,325
)
Provision for income taxes
—
—
Net loss
(62,570
)
(32,325
)
Other comprehensive loss
Foreign currency translation
adjustment
(61
)
(33
)
Total comprehensive loss
$
(62,631
)
$
(32,358
)
Net loss per share:
Basic and diluted
$
(0.19
)
$
(0.12
)
Weighted average shares outstanding
Basic and diluted
334,919,905
275,958,168
VIRGIN ORBIT HOLDINGS, INC.
Condensed Consolidated Balance Sheets As of March 31, 2022 and
December 31, 2021 (In thousands, except per share data)
As of
March 31, 2022
December 31,
2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
127,440
$
194,154
Restricted cash
828
828
Accounts receivable, net
3,500
2,080
Inventory
44,728
33,927
Prepaid expenses and other current
assets
10,792
7,789
Total current assets
187,288
238,778
Property, plant and equipment, net
63,503
61,425
Right-of-use assets
14,379
14,685
Investments
9,313
13,498
Other noncurrent assets
1,423
3,354
Total assets
$
275,906
$
331,740
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
8,010
$
10,334
Current portion of lease obligation
1,663
1,642
Current portion of provision for contract
losses
4,750
—
Accrued liabilities
22,490
23,832
Deferred revenue
19,123
12,150
Total current liabilities
56,036
47,958
Lease obligation, net of current
portion
13,757
14,078
Deferred revenue, net of current
portion
23,303
28,991
Public and private placement warrant
liabilities
20,188
20,188
Provision for contract losses, net of
current portion and other long-term liabilities
8,469
7,555
Total liabilities
121,753
118,770
Commitments and contingencies (Note
17)
Stockholders’ equity
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 shares issued and
outstanding as of March 31, 2022 and December 31, 2021.
34
34
Additional paid-in capital
1,037,207
1,033,393
Accumulated deficit
(883,024
)
(820,454
)
Accumulated other comprehensive loss
(64
)
(3
)
Total stockholders’ equity
154,153
212,970
Total liabilities and stockholders’
equity
$
275,906
$
331,740
VIRGIN ORBIT HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows Three Months Ended
March 31, 2022 and 2021 (In thousands) (Unaudited)
Three Months Ended March
31,
2022
2021
Cash flows from operating activities
Net loss
$
(62,570
)
$
(32,325
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
3,348
3,629
Stock-based compensation
3,814
1,421
Inventory write-down
1,581
—
Non-cash investment in Sky and Space
—
(1,706
)
Change in fair value of equity
investments
4,185
—
Changes in operating assets and
liabilities:
Accounts receivable
(1,420
)
352
Inventory
(6,717
)
(8,495
)
Prepaid expenses and other current
assets
(3,004
)
(1,227
)
Deferred transaction costs
—
(10
)
Other noncurrent assets
1,913
88
Accounts payable
(2,327
)
1,424
Other long-term liabilities
(339
)
(210
)
Accrued liabilities
(1,317
)
(2,378
)
Deferred revenue
1,285
(9
)
Other, net
(59
)
(21
)
Net cash used in operating activities
(61,627
)
(39,467
)
Cash flows from investing activities:
Purchase of property and equipment
(4,996
)
(5,188
)
Net cash used in investing activities
(4,996
)
(5,188
)
Cash flows from financing activities:
Payments of finance lease obligations
(91
)
(61
)
Proceeds from the exercise of stock
options
—
21
Advances to stock option holders
—
18
Parent Company contributions
—
46,141
Net cash (used in) provided by financing
activities
(91
)
46,119
Net (decrease) increase in cash and cash
equivalents and restricted cash
(66,714
)
1,464
Cash and cash equivalents and restricted
cash at the beginning of the period
194,982
26,786
Cash and cash equivalents and restricted
cash at the end of the period
$
128,268
$
28,250
Cash and cash equivalents
$
127,440
$
27,234
Restricted cash
828
1,016
Cash and cash equivalents and restricted
cash
$
128,268
$
28,250
Supplemental disclosures
Schedule for non-cash investing activities
and financing activities
Unpaid property, plant and equipment
received
$
86
$
26
Virgin Orbit Holdings, Inc. Use of
Non-GAAP Financial Measures (Unaudited)
Reconciliation of Adjusted (Non-GAAP) Results
This press release references Adjusted EBITDA and free cash
flow, 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. The Company defines
free cash flow as net cash used in operating activities less
capital expenditures. 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 and free
cash flow 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, and free cash flow 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.
Adjusted EBITDA Reconciliation
Three Months Ended March
31,
2022
2021
(In thousands)
Net Loss
$
(62,570
)
$
(32,325
)
Depreciation and amortization
3,348
3,629
Stock-based compensation
3,814
1,421
Inventory write-down
1,581
—
Non-cash investment in Sky and Space
—
(1,706
)
Change in fair value of equity
investments
4,185
—
Interest expense, net
28
7
Adjusted EBITDA
$
(49,614
)
$
(28,974
)
Free Cash Flow Reconciliation
Three Months Ended March
31,
2022
2021
(In thousands)
Net cash used in operating activities
$
(61,627
)
$
(39,467
)
Capital expenditures
(4,996
)
(5,188
)
Free cash flow
$
(66,623
)
$
(44,655
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511006015/en/
INQUIRIES:
Media, Virgin Orbit: Linda Rivera, Principal Communications
Officer Linda.Rivera@virginorbit.com 323-316-6499
Investor Relations, Virgin Orbit: Stephen Zhang, Vice President
of Investor Relations Stephen.Zhang@virginorbit.com
562-384-4400
Virgin Orbit (NASDAQ:VORB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Virgin Orbit (NASDAQ:VORB)
Historical Stock Chart
From Apr 2023 to Apr 2024