Registrations of interest continue to grow to
7,957, more than doubling since last update1
“One Small Step” initiative announced, enabling
prospects to take first step toward ticket to space
Virgin Galactic Holdings, Inc. (NYSE: SPCE)
(“Virgin Galactic” or “the Company”), a vertically integrated
aerospace company, today announced its financial results for the
fourth quarter and full year ended December 31, 2019.
“Throughout 2019, we continued to achieve key milestones in our
mission to open access to space in a safe, innovative and
affordable way,” said George Whitesides, Chief Executive Officer of
Virgin Galactic. “During the fourth quarter, we took major steps
toward reaching that goal by completing our transaction with Social
Capital Hedosophia and becoming publicly listed on the NYSE, as
well as building operational readiness at Spaceport America in New
Mexico. The progress we made in 2019, combined with the high level
of interest from potential customers, underpin the steps we are
taking toward reopening ticket sales. We are continuing to build on
our strong momentum as we enter the most exciting chapter of our
story to date and prepare for commercial launch.”
Fourth Quarter 2019 Business Highlights:
- Completed transaction with Social Capital Hedosophia and
commenced public trading on the NYSE.
- Achieved key operational milestones at Spaceport America,
including exercising our new mission control, ground operational
elements and external agreements/communications that were required
for flights of VMS Eve and other aircraft types.
- Transitioned a total of 70 Virgin Galactic operations personnel
from Mojave, CA to New Mexico by year end, bringing our current
total number of staff in New Mexico to 145, following the interior
build-out of two floors at Spaceport America earlier in the
year.
- Commenced construction of the third floor at Spaceport America,
which will be used for astronaut training and flight preparation
activities.
- Achieved critical design and build milestones on the second
spaceship and achieved 50% completion of the third spaceship’s
structure and systems fabrication.
- Activated key elements of rocket motor higher rate production
facility.
- Continued to clear FAA Verification and Validation
provisos.
- Announced strategic partnership with Boeing and $20 million
investment by Boeing’s HorizonX Ventures.
- Entered into new contract with the Italian Air Force.
- Announced collaboration with Under Armour and unveiled Future
Astronaut spacesuits.
- Launched Astronaut Readiness Program at Under Armour Global
Headquarters in Baltimore, MD.
- Added three new Board Directors and appointed Executive Vice
President, General Counsel and Secretary.
Fourth Quarter 2019 Financial Highlights:
- Cash and cash equivalents of $480 million as of December 31,
2019.
- Revenue of $529,000 for the three months ended December 31,
2019.
- Net loss of $73 million for the three months ended December 31,
2019, including applicable transaction costs.
- Adjusted EBITDA totalled $(55) million for the three months
ended December 31, 2019.
- Capital expenditures totalled $6 million for the three months
ended December 31, 2019.
Recent Business Highlights:
- Received 7,957 registrations of interest in flight reservations
– February 23, 2020.
- Appointed Diane Prins Sheldahl as Executive Vice President,
People and Organization – February 17, 2020.
- Relocated VSS Unity to Spaceport America – February 13,
2020.
- Appointed Enrico Palermo as Chief Operating Officer – January
15, 2020.
- Achieved “Weight on Wheels” milestone for second spaceship –
January 8, 2020.
“One Small Step” Sales Initiative
In a separate press release issued today, Virgin Galactic
announced its “One Small Step” initiative, an important milestone
in its strategy to position the Company optimally for the
re-opening of spaceflight sales. Under this program, interested
online registrants will be invited to pay a refundable $1,000
deposit to secure a front-of-line position for future ticket
reservations. Upon Virgin Galactic releasing its next tranche of
seats for sale, “One Small Step” registrants will be offered the
tickets first, allowing them to make the “One Giant Leap” to a
confirmed spaceflight reservation and gain full membership to the
thriving Virgin Galactic Future Astronaut Community. Additional
details on this initiative can be found in the separate press
release, accessible on the Company’s Investor Relations website at
investors.virgingalactic.com.
Fourth Quarter and FY 2019 Financial Results
Three Months Ended December
31
Twelve Months Ended December
31
(In thousands)
2019
2018
2019
2018
Revenue
$
529
$
1,287
$
3,781
$
2,849
Cost of revenue
314
814
2,004
1,201
Gross Profit
215
473
1,777
1,648
Selling, general, and administrative
expenses
37,447
13,513
82,166
50,902
Research and development expenses
36,754
32,961
132,873
117,932
Operating loss
(73,986
)
(46,001
)
(213,262
)
(167,186
)
Interest income
1,160
289
2,297
633
Interest expense
34
2
36
10
Other income
-
29
128
28,571
Loss before income taxes
(72,860
)
(45,685
)
(210,873
)
(137,992
)
Income tax expense (benefit)
(61
)
32
62
147
Net loss
(72,799
)
(45,717
)
(210,935
)
(138,139
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
56
(35
)
(23
)
(52
)
Total comprehensive loss
$
(72,743
)
$
(45,752
)
$
(210,958
)
$
(138,191
)
Conference Call Information
Virgin Galactic will host a conference call to discuss the
results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today.
To access the conference call, parties in the United States should
dial (833) 224-0545 and international parties should dial (825)
312-2253, and enter the conference ID number 7782487. The live
audio webcast along with supplemental information will be
accessible on the Company’s Investor Relations website at
investors.virgingalactic.com. A recording of the webcast will also
be available following the conference call.
About Virgin Galactic Holdings
Virgin Galactic Holdings, Inc. is a vertically integrated
aerospace company, pioneering human spaceflight for private
individuals and researchers, as well as a manufacturer of advanced
air and space vehicles. Using its proprietary and reusable
technologies and supported by a distinctive, Virgin-branded
customer experience, it is developing a spaceflight system designed
to offer customers a unique, multi-day, transformative experience.
This culminates in a spaceflight that includes views of Earth from
space and several minutes of weightlessness that will launch from
Spaceport America, New Mexico. Virgin Galactic and The Spaceship
Company believe that one of the most exciting and significant
opportunities of our time lies in the commercial exploration of
space and the development of technology that will change the way we
travel across the globe in the future. Together we are opening
access to space to change the world for good.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of federal securities laws with respect to
Virgin Galactic Holdings, Inc. (the "Company"), including
statements regarding the Company’s spaceflight systems, markets and
expected performance. These forward-looking statements generally
are identified by words such as “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “may,” “should,” “will,” “would,” 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 presentation, including but not limited to the
factors, risks and uncertainties regarding the Company's business
described in the "Risk Factors" section of the Company’s annual
report on Form 10-K that it will file with the Securities and
Exchange Commission (the "SEC"), in addition to the Company’s
subsequent filings with the SEC. 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, except as required by law, the Company 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.
Use of Non-GAAP Financial Measures
This press release references Adjusted EBITDA, a non-GAAP
financial measure. 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.
Adjusted EBITDA is not a substitute for or superior to measures of
financial performance prepared in accordance with generally
accepted accounting principles in the United States (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 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 and years ended December 31, 2019 and 2018, respectively,
are set forth below:
Amounts in thousands ($)
Three Months Ended Dec.
31
Twelve Months Ended Dec.
31
2019
2018
2019
2018
Net Loss
$
(72,799
)
$
(45,717
)
$
(210,935
)
$
(138,139
)
Income Tax Expense (Benefit)
(61
)
32
62
147
Interest Expense
34
2
36
10
Depreciation & Amortization
2,079
1,552
6,999
5,807
EBITDA
(70,747
)
(44,131
)
(203,838
)
(132,175
)
Cash Incentive Plan Disbursement*
9,867
-
9,867
-
Non-capitalized Transaction Costs**
3,577
-
4,692
-
Stock-Based Compensation
2,535
-
2,535
-
Adjusted EBITDA
(54,768
)
(44,131
)
(186,744
)
(132,175
)
* Represents a cash disbursement to settle amounts owed to
participants of the VG Companies’ amended Cash Incentive Plan upon
the achievement of the second qualifying milestone in connection
with the closing of the transaction with Social Capital
Hedosophia.
** Non-capitalized transaction costs include non-recurring
expenses related to public listing (i.e., consulting, legal,
professional fees, business organizational expenses, etc.)
__________________________________
1 Registrations of interest in flight reservations as of
February 23, 2020, up 124% from 3,557 as of September 30, 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200225006005/en/
For media inquiries please contact:
VirginGalacticPress@virgingalactic.com
UK, Middle East, Asia, Africa – Ollie Bailey-Pratt, FTI
Consulting
US, Canada, South America, Australia – Antonia Gray, FTI
Consulting
VirginGalacticFin@fticonsulting.com /
VirginGalacticcorp@fticonsulting.com
For Investor Relations inquiries please contact:
VirginGalactic-SVC@SARDVERB.com
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Feb 2024 to Mar 2024
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Mar 2023 to Mar 2024