Wednesday, 13 November 2019

Virgin Galactic's latest results


Virgin Galactic Holdings, a vertically integrated aerospace company, today announced financial results for its third quarter of fiscal year 2019.
Third-quarter results for VG reflect the three months ended September 30, 2019, prior to the closing on October 25, 2019 of the recent business combination (the “Business Combination”) between VG’s predecessor, VGH, LLC, and Social Capital Hedosophia, a public investment vehicle. The Business Combination provided net proceeds to VG of over $430 million, which VG intends to use to fund its operations. Pre-transaction owners of VGH, LLC retained over 58% ownership of VG following the Business Combination.
“We believe our third quarter results reflect our ongoing progress as we execute on our strategy toward commercial launch,” said George Whitesides, Chief Executive Officer of VG. “We are thrilled to have completed our merger with Social Capital Hedosophia and to be trading publicly, both of which are major steps forward in the Company’s mission to open space for everyone.”


Recent Business Highlights:
  • Transitioned approximately 60% of Virgin Galactic operations personnel from the headquarters in Mojave to Spaceport America, located in New Mexico.
  • Achieved several operational milestones at Spaceport America, including the relocation of mothership VMS Eve, completing installation of the ground infrastructure, ground tests of all systems to ensure they are flight-ready and unveiling the operational hubs of Spaceport America as open and operational.
  • Achieved several design and build milestones on the second SpaceShipTwo vehicle, including the attachment of the wing, fuselage cabin and tail booms.
  • Announced strategic partnership with Boeing, which invested $20 million in VG on October 25, 2019.
VG Pre-Business Combination Third Quarter Fiscal 2019 Financial Highlights:
  • Received customer reservations as of September 30, 2019 from more than 600 people in 60 countries, representing approximately $80 million in total collected deposits, and over $120 million of potential revenue as of September 30, 2019.
  • Received 3,557 expressions of interest in flight reservations as of September 30, 2019.
  • Cash and cash equivalents were $85.5 million as of September 30, 2019.
  • Revenue of $0.8 million and $3.3 million for the three and nine months ended September 30, 2019, respectively, which was generated by transporting scientific payloads and providing engineering services.
  • Net loss of $51.5 million and $138.1 million for the three and nine months ended September 30, 2019, respectively.
  • Net cash used in operating activities for the nine months ended September 30, 2019 was $128.3 million.

Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 

(In thousands)

2019
 
2018
 
2019
 
2018 

 

 
Revenue............................................................................................
$ 832
 
$ 386
 
$ 3,252
 
$ 1,562
Cost of revenue..................................................................................
406
 
68
 
1,690
 
387

426
 
318
 
1,562
 
1,175
Selling, general, and administrative expenses......................................
17,814
 
13,636
 
44,719
 
37,389
Research and development expenses..................................................
34,528
 
26,456
 
96,119
 
84,971
Operating loss....................................................................
(51,916)
 
(39,774)
 
(139,276)
 
(121,185)
Interest income..................................................................................
387
 
164
 
1,137
 
344
Interest expense................................................................................
-
 
2
 
2
 
8
Other income.....................................................................................
91
 
463
 
128
 
28,542
Loss before income taxes...................................................
(51,438)
 
(39,149)
 
(138,013)
 
(92,307)
Income tax expense...........................................................................
37
 
35
 
123
 
115
Net loss.............................................................................
(51,475)
 
(39,184)
 
(138,136)
 
(92,422)
Other comprehensive income (loss):

 

 

 

Foreign currency translation
adjustment…………………...…………………...
(58)
 
5
 
(79)
 
(17)
Total comprehensive loss…………………...
$(51,533)
 
$(39,179)
 
$(138,215)
 
$(92,439)


 

 

 








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