by Douglas Messier
Virgin Galactic’s stock decline in extended trading after Sir Richard Branson’s spaceline reported second quarter earnings.
The stock closed on Monday at $24.02 after rising $1.57 (6.99%). In after-hours trading, the stock declined to $22.23, a decrease of $1.79 (-7.45%).
The decline seems to have resulted from two factors. Virgin Galactic had zero revenues for the quarter. The company reported a net loss of $63 million, up from $60 million in Q1, and an adjusted EBITDA of $54 million, up from $53 million in Q1.
The second reason is the company announced plans to offer 20,489,977 shares of common stock for an expected gross of $460 million.
Virgin Galactic reported it had $360 million in cash as of June 30. The additional stock sale appears to be to help fund work on a supersonic jetliner capable of flying at Mach 3 the company announced on Monday.
Virgin Galactic officials also laid out a schedule for resuming suborbital flight tests by SpaceShipTwo VSS Unity.
The vehicle’s last suborbital flight was conducted in February 2019. VSS Unity completed two glide flights earlier this year at Spaceport America in New Mexico.
Beginning Fall 2020
- Suborbital flight test with two pilot and science experiments
- Suborbital flight test with two pilots and four mission specialists in cabin
First Quarter 2021
- First commercial suborbital flight with Branson aboard
If the schedule holds, Branson’s flight will more than 16 years after the billionaire announced plans for SpaceShipTwo in late September 2004.
For those keeping score at home, Virgin Galactic plans to complete its flight test program with 11 powered flights, including four suborbital launches above 50 miles.
The total would include seven powered flights by VSS Unity and four by VSS Enterprise. The latter vehicle was destroyed in an in-flight accident on Oct. 31, 2014.
Virgin Galactic reported it has completed 27 of 29 FAA Verification and Validation elements required to begin flying passengers. The company completed three elements during the second quarter.
For more information about Virgin Galactic’s second quarter, click here.