Virgin Galactic Announces Third Quarter Fiscal 2019 Financial Results
13 November 2019 - 8:05AM
Business Wire
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“VG” or “the
Company”), 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)
Conference Calls
Beginning with the announcement of the Company’s fourth quarter
financial results in February 2020, the Company intends to host a
quarterly conference call with members of the management team to
discuss the results for the prior quarter. The quarterly conference
calls and supplementary presentation slides will be accessible on
the “Investor Relations” section of the Company’s website.
About Virgin Galactic Holdings
Virgin Galactic Holdings, Inc. is a vertically-integrated
aerospace company pioneering human spaceflight for private
individuals and researchers. It believes the commercial exploration
of space represents one of the most exciting and significant
technology initiatives of our time. It is embarking on this
commercial exploration journey with a mission to put humans into
space and return them safely to earth on a routine, consistent and
affordable basis. Using its proprietary and reusable technologies,
and supported by a distinctive, Virgin-branded customer experience,
it is developing a spaceflight system designed to offer customers a
unique, multi-day experience culminating in a spaceflight that
includes several minutes of weightlessness and views of Earth from
space. It is in the final stages of development, having already
completed multiple crewed flights of its vehicle into space, and
anticipates initial commercial launch in 2020.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of federal securities laws. 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
communication. You should carefully consider the risks and
uncertainties described in the “Risk Factors” section of the
registration statement on Form S-4 filed in connection with the
Business Combination and other documents filed by VG from time to
time with the SEC. These filings identify and address other
important risks and uncertainties that could cause 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.
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For media inquiries please contact:
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inquiries please contact: VirginGalactic-SVC@SARDVERB.com
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