- 'Galactic 07' Mission Planned for June 8, 2024
- Delta Class Spaceships on Track for Commercial Service in
2026
- VMS Eve Expected to Support Increased Flight Rate of up to 125
Flights per Year
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”
or the "Company”) today announced its financial results for the
first quarter ended March 31, 2024 and provided a business
update.
Michael Colglazier, Chief Executive Officer of Virgin Galactic
said, “It’s an exciting time for Virgin Galactic as we celebrate
the success of VSS Unity with its upcoming 'Galactic 07' mission
and remain laser focused on executing our Delta Class program. Tool
delivery and parts fabrication are beginning to accelerate as we
work to complete the bulk of the Delta design phase this summer and
move more fully into the build phase. We remain on track for
commercial service in 2026.”
First Quarter 2024 Financial Highlights
- Cash position remains strong, with cash, cash equivalents and
marketable securities of $867 million as of March 31, 2024.
- Revenue of $2 million, compared to $0.4 million in the first
quarter of 2023, driven by commercial spaceflight and membership
fees related to future astronauts.
- GAAP total operating expenses of $113 million, compared to $164
million in the first quarter of 2023. Non-GAAP total operating
expenses of $101 million in the first quarter of 2024, compared to
$148 million in the first quarter of 2023.
- Net loss of $102 million, compared to a $159 million net loss
in the first quarter of 2023, with the improvement primarily driven
by lower operating expenses and an increase in interest
income.
- Adjusted EBITDA totaled $(87) million, compared to $(140)
million in the first quarter of 2023, primarily driven by lower
operating expenses and an increase in interest income.
- Net cash used in operating activities totaled $113 million,
compared to $136 million in the first quarter of 2023.
- Cash paid for capital expenditures totaled $13 million,
compared to $3 million in the first quarter of 2023.
- Free cash flow totaled $(126) million, compared to $(139)
million in the first quarter of 2023.
- Generated $7.3 million in gross proceeds through the issuance
of 5.1 million shares of common stock as part of the Company's
at-the-market offering program.
Business Updates
- Spaceship final assembly facility in Arizona on track to open
in summer 2024.
- Production schedule for the Delta Class spaceships remains on
track for revenue service in 2026.
- VMS Eve expected to support increased flight rate of up to 125
flights per year and an annualized run-rate of $450 million in
revenue with the first two Delta Class spaceships.
Financial Guidance The following forward-looking
statements reflect our expectations for the second quarter of 2024
as of May 7, 2024 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.”
- Revenue for the second quarter of 2024 is expected to be
approximately $3.5 million.
- Free cash flow for the second quarter of 2024 is expected to be
in the range of $(110) million to $(120) million.
Non-GAAP Financial Measures In addition to the Company's
results prepared in accordance with generally accepted accounting
principles in the United States (GAAP), the Company is also
providing certain non-GAAP financial measures. A discussion
regarding the use of non-GAAP financial measures and a
reconciliation of such measures to the most directly comparable
GAAP information is presented later in this press release.
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 +1 888-660-6431 or +1 929-203-2118 and enter
the conference ID number 4014201. 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 Virgin Galactic is an aerospace and
space travel company, pioneering human spaceflight for private
individuals and researchers with its advanced air and space
vehicles. Scale and profitability are driven by next generation
vehicles capable of bringing humans to space at an unprecedented
frequency with an industry-leading cost structure. You can find
more information at https://www.virgingalactic.com/.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended (the “Securities Act”)
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). All statements contained in this press
release other than statements of historical fact, including,
without limitation, statements regarding our spaceflight systems,
next commercial space mission and proposed timing thereof, scaling
of our future fleet, increasing our flight rate, providing
repeatable and reliable access to space, development of our Delta
Class spaceships and proposed timeline for testing and commercial
service using such spaceships, development of our next generation
motherships and proposed timing of delivery thereof, the timing of
the opening of our spaceship factory in Arizona, the timing of the
design process of our Delta Class spaceships and the delivery of
parts ahead of assembling the initial Delta Class spaceships,
expansion plans for spaceports around the world, and our objectives
for future operations, growth plans and the Company’s financial
forecasts, including second quarter 2024 expected revenue and free
cash flow, are forward-looking statements. The words “believe,”
“may,” “will,” “estimate,” “potential,” “continue,” “anticipate,”
“intend,” “expect,” “strategy,” “future,” “could,” “would,”
“project,” “plan,” “target,” and similar expressions are intended
to identify forward-looking statements, though not all
forward-looking statements use these words or expressions. These
statements are neither promises nor guarantees, but involve known
and unknown risks, uncertainties and other important factors that
may cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements, including but not limited to any delay in future
commercial flights of our spaceflight fleet, our ability to
successfully develop and test our next generation vehicles, and the
time and costs associated with doing so, our expected capital
requirements and the availability of additional financing, and the
other factors, risks and uncertainties included in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2023, 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, which could cause
our actual results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change.
First Quarter 2024 Financial Results
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(In thousands, except per share
amounts)
Three Months Ended March
31,
2024
2023
Revenue
$
1,985
$
392
Operating expenses:
Spaceline operations
22,591
318
Research and development
58,969
109,870
Selling, general and administrative
27,884
50,365
Depreciation and amortization
3,699
3,245
Total operating expenses
113,143
163,798
Operating loss
(111,158
)
(163,406
)
Interest income
12,308
7,330
Interest expense
(3,227
)
(3,211
)
Other income, net
145
30
Loss before income taxes
(101,932
)
(159,257
)
Income tax expense
80
128
Net loss
(102,012
)
(159,385
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
(8
)
35
Unrealized gain (loss) on marketable
securities
(864
)
3,101
Total comprehensive loss
$
(102,884
)
$
(156,249
)
Net loss per share:
Basic and diluted
$
(0.25
)
$
(0.57
)
Weighted-average shares outstanding:
Basic and diluted
400,387
278,450
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(In thousands)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
195,433
$
216,799
Restricted cash
34,918
36,793
Marketable securities, short-term
569,778
657,238
Other current assets
37,324
39,999
Total current assets
837,453
950,829
Marketable securities, long-term
67,105
71,596
Property, plant and equipment, net
110,610
93,806
Other non-current assets
63,093
63,286
Total assets
$
1,078,261
$
1,179,517
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
32,886
$
32,415
Customer deposits
92,334
97,841
Other current liabilities
46,534
55,404
Total current liabilities
171,754
185,660
Non-current liabilities:
Convertible senior notes, net
418,438
417,886
Other non-current liabilities
70,487
70,495
Total liabilities
660,679
674,041
Stockholders' Equity
Common stock
41
40
Additional paid-in capital
2,646,186
2,631,197
Accumulated deficit
(2,228,144
)
(2,126,132
)
Accumulated other comprehensive income
(loss)
(501
)
371
Total stockholders' equity
417,582
505,476
Total liabilities and stockholders'
equity
$
1,078,261
$
1,179,517
VIRGIN GALACTIC HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
Three Months Ended March
31,
2024
2023
Cash flows from operating activities:
Net loss
$
(102,012
)
$
(159,385
)
Stock-based compensation
8,244
12,976
Depreciation and amortization
3,699
3,245
Amortization of debt issuance costs
552
535
Other non-cash items
(5,328
)
(236
)
Change in operating assets and
liabilities:
Other current and non-current assets
3,835
7,594
Accounts payable
(7,480
)
2,146
Customer deposits
(5,507
)
(569
)
Other current and non-current
liabilities
(9,232
)
(2,375
)
Net cash used in operating activities
(113,229
)
(136,069
)
Cash flows from investing activities:
Capital expenditures
(13,072
)
(2,767
)
Purchases of marketable securities
(161,843
)
(83,287
)
Proceeds from maturities and calls of
marketable securities
257,414
305,791
Other investing activities
598
—
Net cash provided by investing
activities
83,097
219,737
Cash flows from financing activities:
Payments of finance lease obligations
(60
)
(59
)
Proceeds from issuance of common stock
7,272
32,044
Withholding taxes paid on behalf of
employees on net settled stock-based awards
(269
)
(1,870
)
Transaction costs related to issuance of
common stock
(52
)
(320
)
Net cash provided by financing
activities
6,891
29,795
Net increase (decrease) in cash, cash
equivalents and restricted cash
(23,241
)
113,463
Cash, cash equivalents and restricted cash
at beginning of period
253,592
342,627
Cash, cash equivalents and restricted cash
at end of period
$
230,351
$
456,090
Cash and cash equivalents
$
195,433
$
415,682
Restricted cash
34,918
40,408
Cash, cash equivalents and restricted
cash
$
230,351
$
456,090
Use of Non-GAAP Financial Measures
This press release references certain financial measures that
are not prepared in accordance with generally accepted accounting
principles in the United States (GAAP), including total non-GAAP
operating expenses, Adjusted EBITDA and free cash flow. The Company
defines total non-GAAP operating expenses as total operating
expenses other than stock-based compensation and depreciation and
amortization. The Company defines Adjusted EBITDA as earnings
before interest expense, income taxes, depreciation and
amortization and stock-based compensation. The Company defines free
cash flow as net cash provided 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.
A reconciliation of total operating expenses to total non-GAAP
operating expenses for the three months ended March 31, 2024 and
2023, respectively, is set forth below (in thousands):
Three Months Ended March
31,
2024
2023
Total operating expenses
$
113,143
$
163,798
Stock-based compensation
8,244
12,976
Depreciation and amortization
3,699
3,245
Total non-GAAP operating expenses
$
101,200
$
147,577
A reconciliation of net loss to Adjusted EBITDA for the three
months ended March 31, 2024 and 2023, respectively, is set forth
below (in thousands):
Three Months Ended March
31,
2024
2023
Net loss
$
(102,012
)
$
(159,385
)
Interest expense
3,227
3,211
Income tax expense
80
128
Depreciation and amortization
3,699
3,245
Stock-based compensation
8,244
12,976
Adjusted EBITDA
$
(86,762
)
$
(139,825
)
The following table reconciles net cash used in operating
activities to free cash flow for the three months ended March 31,
2024 and 2023, respectively (in thousands):
Three Months Ended March
31,
2024
2023
Net cash used in operating activities
$
(113,229
)
$
(136,069
)
Capital expenditures
(13,072
)
(2,767
)
Free cash flow
$
(126,301
)
$
(138,836
)
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version on businesswire.com: https://www.businesswire.com/news/home/20240507384831/en/
For media inquiries: Aleanna Crane - Vice President,
Communications news@virgingalactic.com 575.800.4422
For investor inquiries: Eric Cerny - Vice President,
Investor Relations vg-ir@virgingalactic.com 949.774.7637
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