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Virgin Galactic Announces First Quarter 2021 Financial Results

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Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the "Company”), a vertically integrated aerospace and space travel company, today announced its financial results for the first quarter ended March 31, 2021.

“We continue to make strides towards our strategic objectives and have solid momentum as we focus on completing our flight test program,” said Michael Colglazier, Chief Executive Officer of Virgin Galactic. “We are committed to delivering one of the world's most unique and transformational customer experiences, with safety at the core of everything we do. Our greatest asset is our incredibly talented group of employees, and the strength of the leadership team we have assembled for the next phase of our journey."

First Quarter 2021 Business Highlights:

  • Unveiled VSS Imagine, the first SpaceShip III class vehicle in Virgin Galactic’s growing fleet, on March 30, 2021.
  • Total Future Astronauts remained at approximately 600, as of March 31, 2021.
  • Continue to build senior management team:
    • Appointed Doug Ahrens as Chief Financial Officer, effective March 1, 2021.
    • Appointed Swami Iyer as President of Aerospace Systems, effective March 22, 2021.
    • Appointed Stephen Justice as Vice President of Engineering, effective March 1, 2021.
  • Established and launched the Virgin Galactic Space Advisory Board, composed of leading experts from the aerospace sector.
  • Announced a three-year extension to the global Land Rover partnership.

First Quarter 2021 Financial Highlights:

  • Cash position remains strong, with cash and cash equivalents of $617 million as of March 31, 2021.
  • Net loss of $130 million, compared to a $377 million net loss in the first quarter of 2020.
  • GAAP selling, general, and administrative expenses of $45 million, compared to $27 million in the first quarter of 2020. Non-GAAP selling, general and administrative expenses of $27 million in the first quarter of 2021, compared to $23 million in the first quarter of 2020.
  • GAAP research and development expenses of $36 million, compared to $34 million in the first quarter of 2020. Non-GAAP research and development expenses of $32 million in the first quarter of 2020, compared to $33 million in the first quarter of 2020.
  • Adjusted EBITDA totaled $(56) million, compared to $(53) million in the first quarter of 2020.
  • Cash paid for capital expenditures totaled $1 million, compared to $4 million in the first quarter of 2020.

Recent Updates:

  • Completed corrective EMI work on VSS Unity such that the spaceship is ready to start pre-flight procedures for flight
  • Timing of next flight test is currently being evaluated

COVID-19 Impact

The Company is continuing to experience ongoing delays to its business and operations due to COVID-19. The Company continues to operate under strict protocols and follows rigorous health and safety procedures, in line with CDC, state and local guidelines, to ensure employee safety.

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 (833) 968-2325 and enter the conference ID number 2488377. 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, as well as a manufacturer of advanced air and space vehicles. The Company is developing a spaceflight system designed to offer customers a unique and 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.

First 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

 

 

March 31, 2021

 

March 31, 2020

 

 

 

 

(As restated)

Revenue

 

$

 

 

 

$

238

 

 

Cost of revenue

 

 

 

 

173

 

 

Gross profit

 

 

 

 

65

 

 

Selling, general, and administrative expenses

 

44,914

 

 

 

26,755

 

 

Research and development expenses

 

36,363

 

 

 

34,282

 

 

Operating loss

 

(81,277

)

 

 

(60,972

)

 

Change in fair value of warrants

 

(48,719

)

 

 

(316,896

)

 

Interest income (expense), net

 

318

 

 

 

1,168

 

 

Other income (expense), net

 

27

 

 

 

(172

)

 

Loss before income taxes

 

(129,651

)

 

 

(376,872

)

 

Income tax benefit (expense)

 

(43

)

 

 

46

 

 

Net loss

 

(129,694

)

 

(376,826

)

 

Other comprehensive loss:

 

 

 

 

Foreign currency translation adjustment

 

27

 

 

 

(54

)

 

Total comprehensive loss

 

$

(129,667

)

 

 

$

(376,880

)

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

Basic and diluted

 

$

(0.55

)

 

 

$

(1.86

)

 

 

 

 

 

 

Weighted-average shares outstanding:

Basic and diluted

 

234,191,636

 

 

 

202,409,552

 

 

VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share data)

 

 

 

March 31, 2021

 

December 31, 2020

 

 

(Unaudited)

 

(As restated)

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

616,625

 

 

 

$

665,924

 

 

Restricted cash

 

13,031

 

 

 

13,031

 

 

Inventories

 

30,187

 

 

 

30,483

 

 

Prepaid expenses and other current assets

 

14,486

 

 

 

18,489

 

 

Total current assets

 

674,329

 

 

 

727,927

 

 

Property, plant, and equipment, net

 

50,936

 

 

 

53,148

 

 

Other non-current assets

 

22,762

 

 

 

22,915

 

 

Total assets

 

$

748,027

 

 

 

$

803,990

 

 

Liabilities and Stockholders' Equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

3,738

 

 

 

$

5,998

 

 

Accrued expenses

 

28,351

 

 

 

22,982

 

 

Customer deposits

 

83,015

 

 

 

83,211

 

 

Other current liabilities

 

2,981

 

 

 

2,830

 

 

Total current liabilities

 

118,085

 

 

 

115,021

 

 

Non-current liabilities

 

 

 

 

Warrant liability

 

184,159

 

 

 

135,440

 

 

Other long-term liabilities

 

25,939

 

 

 

26,451

 

 

Total liabilities

 

$

328,183

 

 

 

$

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; 237,274,430 and 236,123,659 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

 

23

 

 

 

23

 

 

Additional paid-in capital

 

1,311,607

 

 

 

1,297,794

 

 

Accumulated deficit

 

(891,817

)

 

 

(770,744

)

 

Accumulated other comprehensive income

 

31

 

 

 

5

 

 

Total stockholders' equity

 

419,844

 

 

 

527,078

 

 

Total liabilities and stockholders' equity

 

$

748,027

 

 

Virgin Galactic Holdings, Inc.

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