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Virgin Galactic Announces Third Quarter Fiscal 2019 Financial Results

November 12, 2019

MOJAVE, Calif.--(BUSINESS WIRE)--Nov 12, 2019--

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:

VG Pre-Business Combination Third Quarter Fiscal 2019 Financial Highlights:

 

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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112006055/en/

CONTACT: For media inquiries please contact:

VirginGalacticPress@virgingalactic.com

UK, Middle East, Asia, Africa – Ollie Bailey-Pratt

vg@fticonsulting.com, +44 (203) 727-1000

US, Canada, South America, Australia – Antonia Gray

vg@fticonsulting.com, +1 (347) 574-4352

For Investor Relations inquiries please contact:

VirginGalactic-SVC@SARDVERB.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: AEROSPACE MANUFACTURING TRAVEL PROFESSIONAL SERVICES OTHER TRANSPORT AIR TRANSPORT OTHER MANUFACTURING ENGINEERING OTHER TRAVEL FINANCE

SOURCE: Virgin Galactic Holdings, Inc.

Copyright Business Wire 2019.

PUB: 11/12/2019 04:05 PM/DISC: 11/12/2019 04:06 PM

http://www.businesswire.com/news/home/20191112006055/en