Advancing strategic initiatives positions the company for growth at scale
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Aurora Flight Sciences, a subsidiary of Boeing, has been selected to build two new motherships; The first new generation mother ship scheduled to enter service in 2025
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Delta-class spacecraft manufacturing facility in the Phoenix area, expected to be fully operational by the end of 2023
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Commercial launch planned for the second quarter of 2023
TUSTIN, Calif.–( BUSINESS WIRE )– Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”) today announced its financial results for the second quarter ended June 30, 2022 and provided a business update.
Michael Colglazier, CEO of Virgin Galactic, said: “As we prepare to return to the skies, we have launched many powerful initiatives to drive our long-term success. Our agreement with Aurora to develop new motherships, the selection of Phoenix as the location for our new spacecraft factory in Phoenix and the acquisition of an incredible parcel of land in New Mexico for our future astronaut campus are critical elements of how we will build and operate our global planet Space Line While our short-term plans now call for commercial service to be launched in the second quarter of 2023, progress on our future fleet continues and many of the key elements of our route are already underway to scale the business in a significant way.”
Financial highlights for the second quarter of 2022:
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The cash position remains strong, with cash and cash equivalents and marketable securities of $1.1 billion at June 30, 2022.
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Net loss of $111 million compared to a net loss of $94 million in the second quarter of 2021.
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GAAP selling, general and administrative expenses of $45 million, compared to $37 million in the second quarter of 2021. Non-GAAP selling, general and administrative expenses of $36 million in the second quarter of 2022, compared to with $26 million in the second quarter of 2021.
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GAAP research and development expenses of $62 million, compared to $35 million in the second quarter of 2021. Non-GAAP research and development expenses of $59 million in the second quarter of 2022, compared to $31 million in the second quarter of 2021.
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Adjusted EBITDA was $(93) million, compared to $(56) million in the second quarter of 2021.
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Net cash used in operating activities was $(87) million, compared to $(65) million in the second quarter of 2021.
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Free cash flow was $(91) million, compared to $(66) million in the second quarter of 2021.
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Cash paid for capital expenditures was $5 million, compared to $1 million in the second quarter of 2021.
Business highlights and recent updates:
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On July 6, 2022, it was announced that Boeing subsidiary Aurora Flight Sciences had been selected to build two new motherships, each designed to fly up to 200 launches per year. The first mothership is expected to enter service in 2025.
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On July 14, 2022, a new Delta-class manufacturing facility was announced in Mesa, Arizona. This site is expected to have the capacity to produce up to six spacecraft per year and is expected to be fully operational by the end of 2023, bringing hundreds of new highly skilled jobs to the Greater Phoenix area.
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On July 21, 2022, it announced a partnership with Virtuoso to make a limited number of reservations within the first 1,000 Virgin Galactic seats available for its exclusive global portfolio offer.
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On August 2, 2022, an expanded presence was announced in New Mexico to support scale operations.
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Commercial service is expected to launch in the second quarter of 2023 due to extended completion dates within the mothership upgrade program.
Financial guidance:
The following forward-looking statements reflect our expectations for the third quarter of 2022 as of August 4, 2022 and are subject to substantial uncertainty. Our results are based on assumptions that we believe are reasonable as of this date, but which may be materially affected by many factors, as discussed below under “Forward-Looking Statements.”
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Estimated free cash flow for the third quarter of 2022 is expected to be between $(110) and $(120) million.
Conference call information
Virgin Galactic will hold a conference call to discuss the results at 2:00 PM Pacific (5:00 PM ET) today. To access the conference call, parties should dial +1 844 200 6205 or +1 646 904 5544 and enter the conference ID number 643846. The live audio stream along with additional information will be available access the company’s investor relations website at A recording of the The webcast will also be available after the conference call.
About Virgin Galactic Holdings
Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for individuals and researchers with its advanced air and space vehicles. It is developing a space flight system designed to connect the world with the love, wonder and awe created by space travel and to provide customers with a transformative experience. You can find more information at
Forward-looking statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws regarding Virgin Galactic Holdings, Inc. (the “Company”), including statements about the Company’s spaceflight systems, markets, planned flight schedule, timing of commercial launch. , the completion of new motherships and launch capacity, the expected time of completion and the profits of the Mesa manufacturing facility and the company’s financial forecast. These forward-looking statements are generally identified by words such as “believe”, “project”, “expect”, “anticipate”, “estimate”, “attempt”, “strategy”, “future”, “opportunity”, “plan” . ,” “may,” “should,” “will,” “could,” “could,” “continue” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on expectations and current 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 factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as these 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 on the Investor Relations section of our website at www.virgingalactic.com. These documents 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 place 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 such forward-looking statements, whether as a result of new information, events, or otherwise.
USE OF NON-GAAP (UNAUDITED) FINANCIAL MEASURES
This press release refers to certain financial measures that are not prepared in accordance with US generally accepted accounting principles (GAAP), such as adjusted EBITDA, non-GAAP selling expenses, general and administrative expenses , non-GAAP research and development expenses and gratuity expenses. cash flow The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation and other items that the Company believes are not indicative of its core operating performance. 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 in shares. It defines free cash flow as the 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 measure derived in accordance with GAAP.
The Company believes that the presentation of 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 the financial keys. metrics used by its management in making financial and operational decisions. However, there are a number of limitations related to the use of non-GAAP measures and their closest 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 used by the company may not be directly comparable to measures with a title similar from other companies.
Financial results for the second quarter of 2022
VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Operations and Global Losses
(Unaudited and in thousands, except data per share)
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