Virgin Galactic Holdings, Inc. (NYSE:SPCE) (“Virgin Galactic” or the "Company”) today announced its financial results for the second quarter ended June 30, 2022 and provided a business update.
Michael Colglazier, Chief Executive Officer of Virgin Galactic said “As we prepare to return to the skies, we have put in place many powerful initiatives to drive our long-term success. Our agreement with Aurora to develop new motherships, selection of Phoenix as the location for our new Spaceship factory in Phoenix, and acquisition of an incredible land parcel in New Mexico for our Future Astronaut Campus are cornerstone elements of how we will build and operate our global Spaceline. While our short-term plans now call for commercial service to launch in the second quarter of 2023, progress on our future fleet continues and many of the key elements of our roadmap are now in place to scale the business in a meaningful way."
Second Quarter 2022 Financial Highlights:
- Cash position remains strong, with cash and cash equivalents and marketable securities of $1.1 billion as of June 30, 2022.
- Net loss of $111 million compared to a $94 million net loss in the second quarter of 2021.
- GAAP selling, general, and administrative expenses of $45 million, compared to $37 million in the second quarter of 2021. Non-GAAP selling, general and administrative expenses of $36 million in the second quarter of 2022, compared to $26 million in the second quarter of 2021.
- GAAP research and development expenses of $62 million, compared to $35 million in the second quarter of 2021. Non-GAAP research and development expenses of $59 million in the second quarter of 2022, compared to $31 million in the second quarter of 2021.
- Adjusted EBITDA totaled $(93) million, compared to $(56) million in the second quarter of 2021.
- Net cash used in operating activities totaled $(87) million, compared to $(65) million in the second quarter of 2021.
- Free cash flow totaled $(91) million, compared to $(66) million in the second quarter of 2021.
- Cash paid for capital expenditures totaled $5 million, compared to $1 million in the second quarter of 2021.
Business Highlights and Recent Updates:
- On July 6, 2022, announced selection of Boeing subsidiary, Aurora Flight Sciences, to build two new motherships, each designed to fly up to 200 launches per year. The first new mothership is planned to enter service in 2025.
- On July 14, 2022, announced new Delta class manufacturing facility in Mesa, Arizona. This site is expected to have the capacity to produce up to six spaceships per year and is expected to be fully operational in late 2023, bringing hundreds of new highly skilled jobs to the Greater Phoenix area.
- On July 21, 2022, announced partnership with Virtuoso to make a limited number of reservations within Virgin Galactic's first 1,000 seats available to their exclusive global portfolio offering.
- On August 2, 2022, announced expanded presence in New Mexico to support scaled operations.
- Commercial service expected to launch in Q2 2023 due to extended completion dates within the mothership enhancement program.
Financial Guidance:
The following forward-looking statements reflect our expectations for the third quarter of 2022 as of August 04, 2022 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”
- Forecasted free cash flow for the third quarter of 2022 is expected to be in the range of $(110) million to $(120) million.
Conference Call Information
Virgin Galactic will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. To access the conference call, parties should dial +1 844 200 6205 or +1 646 904 5544 and enter the conference ID number 643846. The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.virgingalactic.com/events-and-presentations/. A recording of the webcast will also be available following the conference call.