Virgin Galactic's net loss falls to just $130 million for the first quarter 2021, compared to a $377 million net loss in the first quarter of 2020

Virgin Galactic Holdings, the 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 has released its latest results. The company says its net loss in the first quarter was $130 million, compared to a $377 million net loss for the same period last year. 

“We continue to make strides towards our strategic objectives and have solid momentum as we focus on completing our flight test program,” said Michael Colglazier, Chief Executive Officer of Virgin Galactic. “We are committed to delivering one of the world's most unique and transformational customer experiences, with safety at the core of everything we do. Our greatest asset is our incredibly talented group of employees, and the strength of the leadership team we have assembled for the next phase of our journey."

First Quarter 2021 Business Highlights:

Unveiled VSS Imagine, the first SpaceShip III class vehicle in Virgin Galactic’s growing fleet, on March 30, 2021.

Total Future Astronauts remained at approximately 600, as of March 31, 2021.

Continue to build senior management team:

Appointed Doug Ahrens as Chief Financial Officer, effective March 1, 2021.

Appointed Swami Iyer as President of Aerospace Systems, effective March 22, 2021.

Appointed Stephen Justice as Vice President of Engineering, effective March 1, 2021.

Established and launched the Virgin Galactic Space Advisory Board, composed of leading experts from the aerospace sector.

Announced a three-year extension to the global Land Rover partnership.

First Quarter 2021 Financial Highlights:

Cash position remains strong, with cash and cash equivalents of $617 million as of March 31, 2021.

Net loss of $130 million, compared to a $377 million net loss in the first quarter of 2020.

GAAP selling, general, and administrative expenses of $45 million, compared to $27 million in the first quarter of 2020. Non-GAAP selling, general and administrative expenses of $27 million in the first quarter of 2021, compared to $23 million in the first quarter of 2020.

GAAP research and development expenses of $36 million, compared to $34 million in the first quarter of 2020. Non-GAAP research and development expenses of $32 million in the first quarter of 2020, compared to $33 million in the first quarter of 2020.

Adjusted EBITDA totaled $(56) million, compared to $(53) million in the first quarter of 2020.

Cash paid for capital expenditures totaled $1 million, compared to $4 million in the first quarter of 2020.

Recent Updates:

Completed corrective EMI work on VSS Unity such that the spaceship is ready to start pre-flight procedures for flight

Timing of next flight test is currently being evaluated

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 (Unaudited and in thousands except for per share data)
		Three Months Ended
		March 31, 2021					March 31, 2020
							(As restated)
Revenue		$	—				$	238
Cost of revenue		—					173
Gross profit		—					65
Selling, general, and administrative expenses		44,914					26,755
Research and development expenses		36,363					34,282
Operating loss		(81,277		)			(60,972		)
Change in fair value of warrants		(48,719		)			(316,896		)
Interest income (expense), net		318					1,168
Other income (expense), net		27					(172		)
Loss before income taxes		(129,651		)			(376,872		)
Income tax benefit (expense)		(43		)			46
Net loss		(129,694		)			(376,826		)
Other comprehensive loss:
Foreign currency translation adjustment		27					(54		)
Total comprehensive loss		$	(129,667	)			$	(376,880	)
Net loss per share:
Basic and diluted		$	(0.55	)			$	(1.86	)
Weighted-average shares outstanding:
Basic and diluted		234,191,636					202,409,552

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Balance Sheets (In thousands, except share data)
		March 31, 2021					December 31, 2020
		(Unaudited)					(As restated)
Assets
Current assets
Cash and cash equivalents		$	616,625				$	665,924
Restricted cash		13,031					13,031
Inventories		30,187					30,483
Prepaid expenses and other current assets		14,486					18,489
Total current assets		674,329					727,927
Property, plant, and equipment, net		50,936					53,148
Other non-current assets		22,762					22,915
Total assets		$	748,027				$	803,990
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable		$	3,738				$	5,998
Accrued expenses		28,351					22,982
Customer deposits		83,015					83,211
Other current liabilities		2,981					2,830
Total current liabilities		118,085					115,021
Non-current liabilities
Warrant liability		184,159					135,440
Other long-term liabilities		25,939					26,451
Total liabilities		$	328,183				$	276,912
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; 237,274,430 and 236,123,659 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		23					23
Additional paid-in capital		1,311,607					1,297,794
Accumulated deficit		(891,817		)			(770,744		)
Accumulated other comprehensive income		31					5
Total stockholders' equity		419,844					527,078
Total liabilities and stockholders' equity		$	748,027				$	803,990

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited and in thousands)
		Three Months Ended
		March 31, 2021					March 31, 2020
							(As restated)
Cash flows from operating activities
Net loss		$	(129,694	)			$	(376,826	)
Stock-based compensation		22,111					4,425
Depreciation and amortization		2,869					2,105
Change in fair value of warrant liability		48,719					316,896
Other operating activities, net		10					1
Change in assets and liabilities
Inventories		296					(1,980		)
Other current and non-current assets		3,692					2,142
Accounts payable and accrued expenses		3,322					(2,978		)
Customer deposits		(196		)			(98		)
Other current and non-current liabilities		102					—
Net cash used in operating activities		(48,769		)			(56,313		)
Cash flows from investing activity
Capital expenditures		(819		)			(4,036		)
Cash used in investing activity		(819		)			(4,036		)
Cash flows from financing activities
Payments of finance lease obligations		(34		)			(23		)
Proceeds from issuance of common stock pursuant to stock options exercised		10,837					—
Transaction costs		—					(697		)
Withholding taxes paid on behalf of employees on net settled stock-based awards		(10,514		)			—
Net cash provided by (used in) by financing activities		289					(720		)
Net decrease in cash and cash equivalents		(49,299		)			(61,069		)
Cash, cash equivalents and restricted cash at beginning of period		678,955					492,721
Cash, cash equivalents and restricted cash at end of period		$	629,656				$	431,652
Cash and cash equivalents		$	616,625				$	419,374
Restricted cash		13,031					12,278
Cash, cash equivalents and restricted cash		$	629,656				$	431,652

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