- Commercial Service on Track for Q4 2022
- Strong Ticket Sales at Updated Pricing of $450,000 per
Seat
- Demonstrates Value of Differentiated Community Experience
- Commenced Fleet Enhancement Program to Increase Flight Rate and
Extend Vehicle Service Life Ahead of Commercial Launch
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”
or the "Company”) today announced its financial results for the
third quarter ended September 30, 2021.
“We are entering our fleet enhancement period with a clear
roadmap for increasing the durability, reliability and
predictability of our vehicles in preparation for commercial
service next year,” said Michael Colglazier, Chief Executive
Officer of Virgin Galactic. "Demand for space travel is strong, and
we've been selling seats ahead of the pace we had planned. This
demonstrates the incredible market for our product and appreciation
for the value of the unique experience we offer. It's a pivotal
time for the Company as we transition from a prototyping space
innovator to the global, scaled, commercial operation we are
becoming."
Business Highlights:
- Expected start of private astronaut commercial service on track
for Q4 2022.
- On July 11, 2021, successfully completed first fully crewed
spaceflight, Unity 22. The flight fulfilled several test objectives
including evaluating the cabin and customer experience. The
livestream was watched by tens of millions around the world and
brought in tens of thousands of requests for information on future
Virgin Galactic spaceflights.
- In August 2021, opened sales to our Spacefarer community, the
group of early hand-raisers who had reserved the right to be first
in line for tickets. The Company announced a target of 1,000
reservations prior to the launch of private astronaut commercial
service. Approximately 700 of these 1,000 have been sold to date.
Current pricing of $450,000 per seat has been well received.
- On October 14, 2021, announced the beginning of planned vehicle
enhancement period. This program will increase vehicle service life
and flight-rate capability in preparation for commercial
service.
- In October 2021, the Company entered into a lease agreement for
a new design and collaboration center where the next generation
vehicles will be designed and engineered.
Third Quarter 2021 Financial Highlights:
- Cash position remains strong at approximately $1.0 billion,
which includes cash and cash equivalents of $721 million and
marketable securities of $286 million as of September 30,
2021.
- In July 2021, the Company completed an “at-the-market” equity
offering program (the “ATM Offering”). In connection with the ATM
Offering, the Company filed a prospectus supplement with the U.S.
Securities and Exchange Commission to offer and sell up to $500
million of shares of the Company’s common stock from time to time.
The Company ultimately generated $500 million in gross proceeds
through the sale of approximately 13.7 million shares of common
stock. The Company intends to use the net proceeds generated from
the ATM Offering for general corporate purposes, with a priority on
expansion of its spaceship fleet.
- GAAP selling, general, and administrative expenses of $50
million, compared to $31 million in the third quarter of 2020.
Non-GAAP selling, general and administrative expenses of $40
million in the third quarter of 2021, compared to $24 million in
the third quarter of 2020.
- GAAP research and development expenses of $36 million, compared
to $46 million in the third quarter of 2020. Non-GAAP research and
development expenses of $31 million in the third quarter of 2021,
compared to $41 million in the third quarter of 2020.
- Adjusted EBITDA totaled $(68) million, compared to $(66)
million in the third quarter of 2020.
- Net loss of $48 million, compared to a $92 million net loss in
the third quarter of 2020.
- Cash paid for capital expenditures totaled $1 million, compared
to $4 million in the third quarter of 2020.
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 should dial (844) 200-6205
and enter the conference ID number 284644. 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 and space travel company, pioneering human spaceflight
for private individuals and researchers with its advanced air and
space vehicles. It is developing a spaceflight system designed to
connect the world to the wonder and awe created by space travel and
to offer customers a transformative experience. You can find more
information at https://www.virgingalactic.com.
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 flight schedule. 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 press release, including but not limited to the
factors, risks and uncertainties included in Amendment No. 2 to our
Annual Report on Form 10-K for the fiscal year ended December 31,
2020, as such factors may be updated from time to time in our other
filings with the Securities and Exchange Commission (the "SEC"),
accessible on the SEC’s website at www.sec.gov and the Investor
Relations section of our website at www.virgingalactic.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, 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.
Third Quarter 2021 Financial
Results
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited and in thousands
except for per share data)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
(As restated)
(As restated)
Revenue
$
2,580
$
—
$
3,151
$
238
Cost of revenue
207
—
270
173
Gross profit
2,373
—
2,881
65
Selling, general, and administrative
expenses
49,859
30,936
133,276
83,738
Research and development expenses
35,593
46,075
107,859
117,276
Operating loss
(83,079
)
(77,011
)
(238,254
)
(200,949
)
Change in fair value of warrants
34,432
(15,280
)
(34,650
)
(341,772
)
Interest income, net
234
313
766
1,979
Other income (loss), net
70
(44
)
110
5
Loss before income taxes
(48,343
)
(92,022
)
(272,028
)
(540,737
)
Income tax expense
(25
)
(40
)
(74
)
(34
)
Net loss
(48,368
)
(92,062
)
(272,102
)
(540,771
)
Other comprehensive loss:
Foreign currency translation
adjustment
3
48
11
(6
)
Unrealized loss on marketable
securities
(437
)
—
(437
)
—
Total comprehensive loss
$
(48,802
)
$
(92,014
)
$
(272,528
)
$
(540,777
)
Net loss per share:
Basic
(0.19
)
(0.41
)
(1.11
)
(2.54
)
Diluted
(0.32
)
(0.41
)
(1.11
)
(2.54
)
Weighted-average shares outstanding:
Basic
254,749,195
225,253,536
244,157,923
213,193,386
Diluted
255,147,228
225,253,536
244,157,923
213,193,386
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(In thousands, except share
data)
September 30, 2021
December 31, 2020
(Unaudited)
(As restated)
Assets
Current assets
Cash and cash equivalents
$
702,565
$
665,924
Restricted cash
18,078
13,031
Marketable securities, short-term
29,441
—
Inventories
29,306
30,483
Prepaid expenses and other current
assets
8,963
18,489
Total current assets
788,353
727,927
Marketable securities, long-term
256,691
—
Property, plant, and equipment, net
48,130
53,148
Other non-current assets
24,449
22,915
Total assets
$
1,117,623
$
803,990
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable
$
7,997
$
5,998
Accrued expenses
23,298
22,982
Customer deposits
84,769
83,211
Other current liabilities
2,416
2,830
Total current liabilities
118,480
115,021
Non-current liabilities
Warrant liability
—
135,440
Other long-term liabilities
29,214
26,451
Total liabilities
$
147,694
$
276,912
Stockholders' Equity
Preferred stock, $0.0001 par value;
10,000,000 authorized; none issued and outstanding
$
—
$
—
Common stock, $0.0001 par value;
700,000,000 shares authorized; 257,397,850 and 236,123,659 shares
issued and outstanding as of September 30, 2021 and December 31,
2020, respectively
25
23
Additional paid-in capital
2,013,171
1,297,794
Accumulated deficit
(1,042,846
)
(770,744
)
Accumulated other comprehensive income
(421
)
5
Total stockholders' equity
969,929
527,078
Total liabilities and stockholders'
equity
$
1,117,623
$
803,990
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited and in thousands)
Nine Months Ended September
30,
2021
2020
(As restated)
Cash flows from operating activities
Net loss
$
(272,102
)
$
(540,771
)
Stock-based compensation
48,704
18,575
Depreciation and amortization
8,635
6,998
Change in fair value of warrant
liability
34,650
341,772
Other operating activities, net
(42
)
75
Change in assets and liabilities
Inventories
1,178
1,195
Other current and non-current assets
6,342
6,152
Accounts payable and accrued expenses
1,824
719
Customer deposits
2,148
(172
)
Other current and non-current
liabilities
3,026
2,394
Net cash used in operating activities
(165,637
)
(163,063
)
Cash flows from investing activity
Capital expenditures
(2,452
)
(13,661
)
Purchases of marketable securities
(286,132
)
—
Cash used in investing activity
(288,584
)
(13,661
)
Cash flows from financing activities
Payments of finance lease obligations
(105
)
(89
)
Proceeds from issuance of common stock
pursuant to stock options exercised
18,856
—
Payment of notes payable
(310
)
—
Proceeds from issuance of common stock
500,000
460,200
Transaction costs
(6,753
)
(20,866
)
Withholding taxes paid on behalf of
employees on net settled stock-based awards
(15,779
)
(399
)
Net cash provided by (used in) by
financing activities
495,909
438,846
Net increase in cash and cash
equivalents
41,688
262,122
Cash, cash equivalents and restricted cash
at beginning of period
678,955
492,721
Cash, cash equivalents and restricted cash
at end of period
$
720,643
$
754,843
Cash and cash equivalents
$
702,565
$
741,575
Restricted cash
18,078
13,268
Cash, cash equivalents and restricted
cash
$
720,643
$
754,843
Use of Non-GAAP Financial Measures (Unaudited)
This press release references certain non-GAAP financial
measures, including adjusted EBITDA, non-GAAP selling, general, and
administrative expense and non-GAAP research and development
expense. 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. It defines non-GAAP
selling, general, and administrative expenses as selling, general,
and administrative expenses other than stock-based compensation and
non-capitalized transaction costs, and non-GAAP research and
development expenses as research and development expenses other
than stock-based compensation. None of these non-GAAP financial
measures is 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 these non-GAAP financial
measures 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
and nine months ended September 30, 2021 and September 30, 2020 ,
respectively, are set forth below:
Amounts in thousands ($)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Net Loss
$
(48,368
)
$
(92,062
)
$
(272,102
)
$
(540,771
)
Income tax expense
25
40
74
34
Interest expense
6
9
19
26
Depreciation & amortization
2,895
2,509
8,635
6,998
Non-capitalized transaction costs*
—
—
—
697
Stock-based compensation
12,169
8,625
48,704
18,575
Change in fair value of warrants
(34,432
)
15,280
34,650
341,772
Adjusted EBITDA
$
(67,705
)
$
(65,599
)
$
(180,020
)
$
(172,669
)
A reconciliation of selling, general, and administrative
expenses to non-GAAP selling, general, and administrative expenses
for the three and nine months ended September 30, 2021 and
September 30, 2020, respectively, are set forth below:
Amounts in thousands ($)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Selling, general, and administrative
expenses
49,859
30,936
133,276
83,738
Stock-based compensation
8,540
5,056
37,004
11,472
Non-capitalized transaction costs*
—
—
—
697
Depreciation & amortization
1,592
1,448
4,774
3,809
Non-GAAP selling, general, and
administration expenses
$
39,727
$
24,432
$
91,498
$
67,760
A reconciliation of research and development expenses to
non-GAAP research and development expenses for the three and nine
months ended September 30, 2021 and September 30, 2020,
respectively, are set forth below:
Amounts in thousands ($)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Research and development expenses
35,593
46,075
107,859
117,276
Stock-based compensation
3,629
3,570
11,700
7,103
Depreciation & amortization
1,304
1,156
3,861
3,189
Non-GAAP Research and development
expenses
$
30,660
$
41,349
$
92,298
$
106,984
_____________
∗ Non-capitalized transaction costs include non-recurring
expenses related to preparation and filing of an S-1 registration
statement in the first quarter of 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211108005984/en/
For investor relations inquiries: Seth Zaslow – Vice
President, Investor Relations seth.zaslow@virgingalactic.com
For media inquiries: Aleanna Crane – Vice President,
Communications aleanna.crane@virgingalactic.com
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Sep 2023 to Sep 2024