Virgin Galactic Delays Space Tourism Flights to 2022, Lost $273 Million Last Year

WhiteKnightTwo and SpaceShipTwo fly right overhead. (Credit: Kenneth Brown)
  • Rollout of Second Spaceship Scheduled to Take Place on March 30
  • Announced Expected Timing of Revenue-Generating Flight with the Italian Air Force
  • Next Rocket-Powered Spaceflight Targeted to Occur in May

LAS CRUCES, N.M. (Virgin Galactic PR) — Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”), a vertically integrated aerospace and space travel company, today announced 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.

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 (778) 560-2846 and enter the conference ID number 4979998. The live audio webcast along with accompanying presentation materials will be accessible on the Company’s Investor Relations website at investors.virgingalactic.com. A recording of the webcast will also be available following the conference call.

About Virgin Galactic Holdings

Virgin Galactic Holdings, Inc. is a 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. It is developing a spaceflight system designed to offer customers a unique and transformative experience. You can find more information at https://www.virgingalactic.com/.

Editor’s Note: You can view Virgin Galactic’s financial statements here. The tables were too complicated to paste in here.