- Demand for Tickets Remains Strong, with Approximately 800
Future Astronaut Reservations
- VSS Unity Test Spaceflight Expected in Q4 2022
- Commercial Service Launch Expected to Move from Q4 2022 to Q1
2023 Due to Supply Chain and Labor Constraints
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”
or the "Company”) today announced its financial results for the
first quarter ended March 31, 2022 and provided a business
update.
“We are executing on our plans to scale the business by
developing our future fleet, investing in digital manufacturing
technologies, and building out our commercial strategy to deliver a
consumer experience like no other,” said Michael Colglazier, Chief
Executive Officer of Virgin Galactic. “Against a backdrop of
escalating supply chain and labor constraints, our teams are
containing the majority of these issues to minimize impact on
schedules. We look forward to returning to space in the fourth
quarter and launching commercial service in the first quarter of
next year.”
First Quarter 2022 Business Highlights:
- In January 2022, completed a convertible debt offering that
resulted in $425 million in gross proceeds to the Company. $52.3
million of net proceeds were used to fund the cost of capped call
premiums related to the transaction. The remainder of net proceeds
are expected to be used to fund working capital, general and
administrative matters, and capital expenditures to accelerate the
development of the Delta class spaceship fleet and next generation
motherships.
- On February 8, 2022, announced Blair Rich as President and
Chief Business Officer, Commercial and Consumer Operations.
- On February 15, 2022, announced the opening of ticket sales to
the general public and launched new consumer brand.
- On March 8-10, 2022, hosted supplier conference with potential
Tier 1 and Tier 2 suppliers for Delta fleet sub-assemblies.
- On March 30, 2022, announced appointment of Kelly Latimer to
Director of Flight Test, responsible for the Company’s flight test
program including design, planning, execution, and post-flight
analysis.
First Quarter 2022 Financial Highlights:
- Cash position remains strong, with cash and cash equivalents,
restricted cash and marketable securities of $1.22 billion as of
March 31, 2022.
- Net loss of $93 million, compared to a $130 million net loss in
the first quarter of 2021.
- GAAP selling, general, and administrative expenses of $37
million, compared to $43 million in the first quarter of 2021.
Non-GAAP selling, general and administrative expenses of $30
million in the first quarter of 2022, compared to $25 million in
the first quarter of 2021.
- GAAP research and development expenses of $52 million, compared
to $35 million in the first quarter of 2021. Non-GAAP research and
development expenses of $48 million in the first quarter of 2022,
compared to $31 million in the first quarter of 2021.
- Adjusted EBITDA totaled $(77) million, compared to $(56)
million in the first quarter of 2021.
- Cash paid for capital expenditures totaled $1.8 million,
compared to $0.8 million in the first quarter of 2021.
Recent Updates:
- Current fleet enhancement program progressing well, with the
goal of driving improved durability and reliability of current
ships, and enabling higher frequency flight rate.
- VSS Unity test spaceflight expected in Q4 2022.
- Expect to launch commercial service in Q1 2023.
- Demand for ticket sales remains strong, with approximately 800
future astronaut reservations.
- Progressing designs and location choice for new final assembly
manufacturing facility for the Delta class spaceships.
- Continued negotiations with preferred suppliers to manufacture
the next generation motherships.
- Following the supplier conference held in March 2022, the
Company has issued RFIs to identify the primary suppliers for Delta
class spaceships.
- Deploying “digital twin” architecture to underpin Delta class
and next generation mothership manufacturing schedules.
Financial Guidance:
The following forward-looking statements reflect our
expectations for the second quarter of 2022 as of May 05, 2022, and
are subject to substantial uncertainty. Our results are based on
assumptions that we believe to be reasonable as of this date, but
may be materially affected by many factors, as discussed below in
“Forward-Looking Statements.”
- Forecasted free cash flow for the second quarter of 2022 is
expected to be in the range of $(80) to $(90) million.
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 +1 844 200 6205
or +1 646 904 5544 and enter the conference ID number 712598. The
live audio webcast along with supplemental information will be
accessible on the Company’s Investor Relations website at
https://investors.virgingalactic.com/events-and-presentations/. A
recording of the webcast will also be available following the
conference call.
About Virgin Galactic Holdings
Virgin Galactic is an 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 love, 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 our Annual Report on
Form 10-K for the fiscal year ended December 31, 2021, 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.
USE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
This presentation references certain financial measures that are
not prepared in accordance with generally accepted accounting
principles in the United States (GAAP), including Adjusted EBITDA,
non-GAAP selling, general, and administrative expense, non-GAAP
research and development expense and free cash flow. 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-GAAP research
and development expenses as research and development expenses other
than stock-based compensation. It defines free cash flow as net
cash used by operating activities less capital expenditures. None
of these non-GAAP financial measures is a substitute for or
superior to measures prepared in accordance with GAAP and should
not be considered as an alternative to any other 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.
First Quarter 2022 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
March 31,
2022
March 31,
2021
Revenue
$
319
$
—
Operating expenses:
Customer experience
25
—
Selling, general, and administrative
37,007
43,319
Research and development
51,827
35,089
Depreciation and amortization
2,852
2,869
Total operating expenses
91,711
81,277
Operating loss
(91,392
)
(81,277
)
Interest income
818
325
Interest expense
(2,474
)
(7
)
Change in fair value of warrants
—
(48,719
)
Other income, net
16
27
Loss before income taxes
(93,032
)
(129,651
)
Income tax expense
(25
)
(43
)
Net loss
(93,057
)
(129,694
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
(25
)
27
Unrealized loss on marketable
securities
(5,780
)
—
Total comprehensive loss
$
(98,862
)
$
(129,667
)
Net loss per share:
Basic and diluted
$
(0.36
)
$
(0.55
)
Weighted-average shares outstanding:
Basic and diluted
258,287,847
234,191,636
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(In thousands, except share
data)
March 31,
2022
December 31,
2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
601,464
$
524,481
Restricted cash
35,361
25,549
Marketable securities, short-term
265,859
79,418
Inventories
29,467
29,668
Prepaid expenses and other current
assets
17,433
19,476
Total current assets
949,584
678,592
Marketable securities, long-term
314,140
301,463
Property, plant, and equipment, net
47,476
47,498
Other non-current assets
40,944
41,281
Total assets
$
1,352,144
$
1,068,834
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
9,711
$
9,237
Accrued expenses
30,552
28,787
Customer deposits
100,091
90,863
Other current liabilities
2,529
2,636
Total current liabilities
142,883
131,523
Non-current liabilities
Convertible senior notes, net
414,155
—
Other long-term liabilities
43,009
43,047
Total liabilities
$
600,047
$
174,570
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; 258,473,888 and 258,166,417 shares
issued and outstanding as of March 31, 2022 and December 31, 2021,
respectively
26
26
Additional paid-in capital
1,976,445
2,019,750
Accumulated deficit
(1,216,700
)
(1,123,643
)
Accumulated other comprehensive income
(7,674
)
(1,869
)
Total stockholders' equity
752,097
894,264
Total liabilities and stockholders'
equity
$
1,352,144
$
1,068,834
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited and in thousands)
Three Months Ended
March 31,
2022
March 31,
2021
Cash flows from operating activities
Net loss
$
(93,057
)
$
(129,694
)
Stock-based compensation
10,895
22,111
Depreciation and amortization
2,852
2,869
Amortization of debt issuance costs
403
—
Change in fair value of warrant
liability
—
48,719
Other operating activities, net
86
10
Change in assets and liabilities
Inventories
201
296
Other current and non-current assets
2,282
3,692
Accounts payable and accrued
liabilities
1,126
3,322
Customer deposits
9,228
(196
)
Other current and non-current
liabilities
(67
)
102
Net cash used in operating activities
(66,051
)
(48,769
)
Cash flows from investing activity
Capital expenditures
(1,773
)
(819
)
Investment in marketable securities
(204,898
)
—
Cash used in investing activity
(206,671
)
(819
)
Cash flows from financing activities
Payments of finance lease obligations
(34
)
(34
)
Proceeds from convertible senior notes
425,000
—
Debt issuance costs
(11,248
)
—
Purchase of capped calls
(52,318
)
—
Proceeds from issuance of common stock
pursuant to stock options exercised
49
10,837
Withholding taxes paid on behalf of
employees on net settled stock-based awards
(1,932
)
(10,514
)
Net cash provided by financing
activities
359,517
289
Net increase (decrease) in cash and cash
equivalents
86,795
(49,299
)
Cash, cash equivalents and restricted cash
at beginning of period
550,030
678,955
Cash, cash equivalents and restricted cash
at end of period
$
636,825
$
629,656
Cash and cash equivalents
$
601,464
$
616,625
Restricted cash
35,361
13,031
Cash, cash equivalents and restricted
cash
$
636,825
$
629,656
Use of Non-GAAP Financial Measures (Unaudited)
This press release references certain financial measures that
are not prepared in accordance with generally accepted accounting
principles in the United States (GAAP), 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-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 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
months ended March 31, 2022 and March 31, 2021, respectively, are
set forth below:
Amounts in thousands ($)
Three Months Ended
March 31,
2022
March 31,
2021
Net Loss
$
(93,057
)
$
(129,694
)
Income tax expense
(25
)
(43
)
Interest expense
2,474
7
Depreciation & amortization
2,852
2,869
Stock-based compensation
10,895
22,111
Change in fair value of warrants
—
48,719
Adjusted EBITDA
$
(76,811
)
$
(55,945
)
A reconciliation of selling, general, and administrative
expenses to non-GAAP selling, general, and administrative expenses
for the three months ended March 31, 2022 and March 31, 2021,
respectively, are set forth below:
Amounts in thousands ($)
Three Months Ended
March 31,
2022
March 31,
2021
Selling, general, and administrative
$
37,007
$
43,319
Stock-based compensation
7,277
18,038
Non-GAAP selling, general, administration
expenses
$
29,730
$
25,281
A reconciliation of research and development expenses to
non-GAAP research and development expenses for the three months
ended March 31, 2022 and March 31, 2021, respectively, are set
forth below:
Amounts in thousands ($)
Three Months Ended
March 31,
2022
March 31,
2021
Research and development
$
51,827
$
35,089
Stock-based compensation
3,619
4,074
Non-GAAP Research and development
expenses
$
48,208
$
31,015
The following table reconciles forecasted net cash used in
operating activities to forecasted free cash flow for the second
quarter of 2022 (in thousands):
Forecasted Range
Net cash used in operating activities
($78,000) - ($86,000)
Capital expenditures
($2,000) - ($4,000)
Free cash flow.
($80,000) - ($90,000)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005482/en/
For media inquiries: Aleanna Crane - Vice President
Communications Virgingalacticpress@virgingalactic.com
575.800.4422
For investor inquiries: vg-ir@virgingalactic.com
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Virgin Galactic (NYSE:SPCE)
Historical Stock Chart
From Apr 2023 to Apr 2024