Friday, 26 February 2021

Virgin Galactic has issued its financial results for the fourth quarter and full-year ended December 31, 2020.

Virgin Galactic has issued its financial results for the fourth quarter and full-year ended December 31, 2020.


“We accomplished several significant milestones during 2020 despite the ongoing challenges posed by the COVID-19 pandemic,” said Michael Colglazier, Chief Executive Officer of Virgin Galactic. “Looking ahead, we’re focused on completing our test flight program, expanding our fleet of spaceships and motherships, and developing our unique and transformative customer experience. I am excited about the talent we’re bringing on to our leadership team and the investments we’re making in the business, both of which will position us well to scale for future growth.”

Fourth Quarter 2020 Business Highlights:

Completed significant build milestones on second spaceship, in preparation for its scheduled rollout on March 30, 2021.
Conducted safe test flight on December 12, 2020 during which the onboard computer lost connection and halted ignition of the rocket motor.
Appointed two new pilots into Virgin Galactic Pilot Corps, bringing the total number of pilots to eight as of October 27, 2020.
Successfully closed the “One Small Step” program on December 31, 2020, with approximately 1,000 participants enrolled.
Total Future Astronauts remained at approximately 600, as of December 31, 2020.
Appointed Alistair Burns as Chief Information Officer on November 9, 2020.

Fourth Quarter 2020 Financial Highlights:

Cash position remains strong, with cash and cash equivalents of $666 million as of December 31, 2020.
Net loss of $74 million, compared to a $77 million net loss in the third quarter of 2020.
GAAP selling, general, and administrative expenses of $33 million, compared to $31 million in the third quarter of 2020. Non-GAAP selling, general and administrative expenses of $23 million in the fourth quarter of 2020, compared to $26 million in the third quarter of 2020.
GAAP research and development expenses of $41 million, compared to $46 million in the third quarter of 2020. Non-GAAP research and development expenses of $40 million in the fourth quarter of 2020, compared to $43 million in the third quarter of 2020.
Adjusted EBITDA totaled $(60) million, compared to $(66) million in the third quarter of 2020.
Cash paid for capital expenditures totaled $3.5 million, compared to $3.7 million in the third quarter of 2020.#

Recent Updates:

Continue to prepare for next rocket-powered spaceflight from Spaceport America, targeted for May 2021. Completing modifications and conducting technical checks ahead of flight, which will include revenue-generating payloads as part of the NASA Flight Opportunities Program.
Re-confirmed second and third spaceflights from Spaceport America, including Sir Richard Branson’s flight, and announced timing for revenue-generating spaceflight with the Italian Air Force.
Accelerating multi-month enhancement program to mothership vehicle, VMS Eve, and preparing for second generation mothership build program.
Continue to build senior management team:
Appointed Swami Iyer as President of Aerospace Systems, effective end of March 2021.
Appointed Stephen Justice as Vice President of Engineering on March 1, 2021.
Appointed Doug Ahrens as Chief Financial Officer, effective March 1, 2021.
Appointed Seth Zaslow as Vice President of Investor Relations on February 8, 2021.


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.




VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands except for per share data)

  

 

 

Three Months Ended

 

Year Ended

(unaudited)

(unaudited)

 

 

December 31,
2020

 

September 30,
2020

 

December 31,
2019

 

December 31,
2020

 

December 31,
2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 

 

$

 

 

$

529

 

 

$

238

 

 

$

3,781

 

Cost of revenue

 

 

 

 

 

314

 

 

173

 

 

2,004

 

Gross profit

 

 

 

 

 

215

 

 

65

 

 

1,777

 

Selling, general, and administrative expenses

 

32,854

 

 

30,936

 

 

37,447

 

 

116,592

 

 

82,166

 

Research and development expenses1

 

41,463

 

 

46,095

 

 

36,754

 

 

158,757

 

 

132,873

 

Operating loss

 

(74,317

)

 

(77,031

)

 

(73,986

)

 

(275,284

)

 

(213,262

)

Interest income

 

272

 

 

322

 

 

1,160

 

 

2,277

 

 

2,297

 

Interest expense

 

(10

)

 

(9

)

 

(34

)

 

(36

)

 

(36

)

Other income (expense)

 

9

 

 

(44

)

 

 

 

14

 

 

128

 

Loss before income taxes

 

(74,046

)

 

(76,762

)

 

(72,860

)

 

(273,029

)

 

(210,873

)

Income tax (benefit) expense

 

(28

)

 

40

 

 

(61

)

 

6

 

 

62

 

Net loss

 

(74,018

)

 

(76,802

)

 

(72,799

)

 

(273,035

)

 

(210,935

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(48

)

 

48

 

 

56

 

 

(54

)

 

(23

)

Total comprehensive loss

 

$

(74,066

)

 

$

(76,754

)

 

$

(72,743

)

 

$

(273,089

)

 

$

(210,958

)

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.31

)

 

$

(0.34

)

 

$

(0.37

)

 

$

(1.25

)

 

$

(1.09

)

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

Basic and diluted

 

236,722,884

 

 

225,253,536

 

 

194,378,154

 

 

219,107,905

 

 

194,378,154

 

 

1Please refer to Reclassification section for prior period adjustment.

 
  

VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share data)

  

 

 

As of

 

 

December 31,
2020

 

December 31,
2019

 

 

(unaudited)

 

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

665,924

 

 

$

480,443

 

Restricted cash

 

13,031

 

 

12,278

 

Accounts receivable

 

470

 

 

461

 

Inventories1

 

30,483

 

 

31,855

 

Prepaid expenses and other current assets

 

17,949

 

 

16,672

 

Due from related party, net

 

70

 

 

 

Total current assets

 

727,927

 

 

541,709

 

Property, plant, and equipment, net1

 

53,148

 

 

44,295

 

Right-of-use asset

 

19,914

 

 

16,927

 

Other non-current assets

 

3,001

 

 

2,615

 

Total assets

 

$

803,990

 

 

$

605,546

 

Liabilities and Stockholders' Equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

5,998

 

 

$

7,038

 

Current portion of operating lease obligation

 

2,384

 

 

2,354

 

Current portion of finance lease obligation

 

136

 

 

47

 

Current portion of note payable

 

310

 

 

 

Accrued expenses

 

22,982

 

 

22,277

 

Customer deposits

 

83,211

 

 

83,362

 

Due to related party, net

 

 

 

767

 

Total current liabilities

 

115,021

 

 

115,845

 

Finance lease obligation, net of current portion

 

236

 

 

274

 

Operating lease obligation, net of current portion

 

24,148

 

 

21,867

 

Note payable, net of current portion

 

310

 

 

 

Other long-term liabilities

 

1,757

 

 

 

Total liabilities

 

$

141,472

 

 

$

137,986

 

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; 236,123,659 and 196,001,038 shares issued and outstanding as of December 31, 2020 and 2019, respectively

 

23

 

 

20

 

Additional paid-in capital

 

1,057,202

 

 

589,158

 

Accumulated deficit

 

(394,712)

 

 

(121,677)

 

Accumulated other comprehensive income

 

5

 

 

59

 

Total stockholders' equity

 

662,518

 

 

467,560

 

Total liabilities and stockholders' equity

 

$

803,990

 

 

$

605,546

 

 

1Please refer to Reclassification section for prior period adjustment.


  

VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

  

 

 

Three Months Ended

 

Year Ended

(unaudited)

(unaudited)

 

 

December
31, 2020

 

September
30, 2020

 

December
31, 2019

 

December
31, 2020

 

December
31, 2019

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(74,018

)

 

$

(76,802

)

 

$

(72,799

)

 

$

(273,035

)

 

$

(210,935

)

Stock-based compensation

 

11,749

 

 

8,625

 

 

2,535

 

 

30,324

 

 

2,535

 

Depreciation and amortization

 

2,765

 

 

2,529

 

 

2,079

 

 

9,781

 

 

6,999

 

Deferred rent

 

 

 

 

 

375

 

 

 

 

 

(Gain) Loss on disposal of property and equipment1

 

21

 

 

8

 

 

(555

)

 

96

 

 

(555

)

Change in assets and liabilities

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(100

)

 

414

 

 

431

 

 

(106

)

 

819

 

Inventories1

 

176

 

 

3,182

 

 

(6,256

)

 

1,371

 

 

(8,566

)

Prepayments and other current assets

 

(8,674

)

 

4,724

 

 

(13,089

)

 

(342

)

 

(12,476

)

Other non-current assets

 

47

 

 

(1,251

)

 

8,107

 

 

(1,131

)

 

1,178

 

Due from related party, net

 

158

 

 

(996

)

 

9,734

 

 

(838

)

 

9,734

 

Accounts payable and accrued expenses

 

(1,729

)

 

1,633

 

 

(2,883

)

 

(1,010

)

 

(323

)

Customer deposits

 

21

 

 

1,456

 

 

1,160

 

 

(151

)

 

2,479

 

Other current and non-current liabilities

 

(512

)

 

1,502

 

 

(9,664

)

 

1,882

 

 

 

Net cash used in operating activities

 

(70,096

)

 

(54,976

)

 

(80,825

)

 

(233,159

)

 

(209,111

)

Cash flows from investing activity

 

 

 

 

 

 

 

 

 

 

Capital expenditures1

 

(3,540

)

 

(3,721

)

 

(176

)

 

(17,201

)

 

(13,856

)

Cash used in investing activity1

 

(3,540

)

 

(3,721

)

 

(176

)

 

(17,201

)

 

(13,856

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Payments of finance lease obligations

 

(34

)

 

(40

)

 

(49

)

 

(123

)

 

(104

)

Repayment of notes payable

 

(310

)

 

 

 

 

 

(310

)

 

 

Net transfer from Parent Company

 

 

 

 

 

 

 

 

 

106,119

 

Proceeds from Parent Company

 

 

 

 

 

16,310

 

 

 

 

56,310

 

Proceeds from issuance of common stock pursuant to stock options exercised

 

2,582

 

 

 

 

 

 

2,582

 

 

 

Proceeds from issuance of common stocks

 

 

 

460,200

 

 

20,000

 

 

460,200

 

 

20,000

 

Proceeds from reverse acquisition

 

 

 

 

 

500,000

 

 

 

 

500,000

 

Transaction costs

 

(122

)

 

(19,399

)

 

(48,005

)

 

(20,988

)

 

(48,005

)

Withholding taxes paid on behalf of employee on net settled stock-based awards

 

(4,368

)

 

(399

)

 

 

 

(4,767

)

 

 

Net cash provided by (used in) by financing activities

 

(2,252

)

 

440,362

 

 

488,256

 

 

436,594

 

 

634,320

 

Net increase (decrease) in cash and cash equivalents1

 

(75,888

)

 

381,665

 

 

407,255

 

 

186,234

 

 

411,353

 

Cash, cash equivalents and restricted cash at beginning of period

 

754,843

 

 

373,178

 

 

85,466

 

 

492,721

 

 

81,368

 

Cash, cash equivalents and restricted cash at end of period

 

$

678,955

 

 

$

754,843

 

 

$

492,721

 

 

$

678,955

 

 

$

492,721

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

665,924

 

 

$

741,575

 

 

$

480,443

 

 

$

665,924

 

 

$

480,443

 

Restricted cash

 

13,031

 

 

13,268

 

 

12,278

 

 

13,031

 

 

12,278

 

Cash, cash equivalents and restricted cash

 

$

678,955

 

 

$

754,843

 

 

$

492,721

 

 

$

678,955

 

 

$

492,721

 

 

1Please refer to Reclassification section for prior period adjustment.

 



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