Virgin Galactic Reports $130 Million Q1 Net Loss, Delays Next Flight Test

Flight test, delayed from February, postponed again due to problem discovered on WhiteKnightTwo carrier aircraft. Company will update schedule next week.

LAS CRUCES, N.M., May 10, 2021 (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 first quarter ended March 31, 2021.

“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 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.

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.

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.