Virgin Galactic Announces Q2 Financial Results for 2021
VSS Imagine
Quarter of Strong Operational Progress Including:
Reopening Sales, with Prices Beginning at $450,000 Per Seat
- Successful Completion of 3rd Spaceflight; 1st Spaceflight from Spaceport America, NM; Unity 21 in May
- Approval from FAA for Full Commercial Launch License in June
- Successful Completion of 4th Spaceflight; 1st with a Full Crew; Unity 22 in July
Next Rocket-Powered Spaceflight, Unity 23, Targeted for Late-September
LAS CRUCES, N.M. – August 5, 2021 – 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 second quarter ended June 30, 2021.
Business Highlights:
- On July 11, 2021, successfully completed first fully crewed spaceflight. This spaceflight marked VSS Unity’s 22nd flight and its fourth spaceflight. The flight fulfilled test objectives including evaluating the cabin and customer experience.
- On May 22, 2021, successfully completed first spaceflight from Spaceport America, New Mexico. This spaceflight marked VSS Unity’s 21st flight and its third spaceflight. The flight fulfilled test objectives including confirming the technical readiness of the spaceship’s upgraded flight controls and horizontal stabilizers. The flight also carried revenue-generating scientific research experiments.
- In June, the Federal Aviation Administration ("FAA") updated the Company's existing commercial space transportation operator license to allow the spaceline to fly customers to space. The adjustment marked the first time the FAA has licensed a spaceline to fly customers.
- In June, we announced a new contract for a human-tended research spaceflight. The company will fly Kellie Gerardi, a researcher for the International Institute for Astronautical Sciences (IIAS), on a dedicated research flight, during which Kellie will conduct experiments and test new healthcare technologies while she is in space.
- Total retention of existing Future Astronaut reservations remained steady at approximately 600, as of June 30, 2021.
- Announced plans to reopen sales effective today. For the private astronaut market, the Company will have three consumer offerings: i) a single seat; ii) a multi‐seat couples / friends / family package; and iii) full-flight buy out. Pricing for these offers will begin at $450,000 per seat. Sales will initially open to the Company's significant list of early hand-raisers, prioritizing the Spacefarer Community, who, as promised, will be given first opportunity to reserve their place in space. A follow-on priority list will be opened to customers interested in reserving future spaceflights.
- Announced that the next rocket‐powered spaceflight, Unity 23, is targeted to occur in late- September from Spaceport
Second Quarter 2021 Financial Highlights:
- Cash position remains strong, with cash and cash equivalents of $552 million as of June 30, 2021.
- In July, 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 $39 million, compared to $26 million in the second quarter of 2020. Non-GAAP selling, general and administrative expenses of $26 million in the second quarter of 2021, compared to $21 million in the second quarter of 2020.
- GAAP research and development expenses of $36 million, compared to $37 million in the second quarter of 2020. Non-GAAP research and development expenses of $31 million in the second quarter of 2020, compared to $34 million in the second quarter of 2020.
- Adjusted EBITDA totaled $(56) million, compared to $(54) million in the second quarter of 2020.
- Net loss of $94 million, compared to a $72 million net loss in the second quarter of 2020.
- Cash paid for capital expenditures totaled $1 million, compared to $6 million in the second quarter of 2020
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.
About Galactic Experiences by DePrez
Galactic Experiences by DePrez is a member of the DePrez Group Of Travel Companies, which is the largest independent travel management firm in central and western NY. Founded in 1929, the group provides extensive and diverse travel services, including cruise sales by Just Cruises, Inc. a top 50 cruise-only agency in N.A., meeting and conventions planning to fortune 100 companies and large associations, corporate travel management, and luxury travel leisure sales through Whitaker & DePrez Travel Partners LLC. Galactic Experiences offers Out-of-this-World missions and curates exciting Adventure Travel experiences.
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. It is developing a spaceflight system designed to offer customers a unique and transformative experience.
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.
For More Information Please Contact:
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Galactic Experiences By DePrez, DePrez Travel Bureau, Inc.
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