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Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or “the Company”), a vertically integrated aerospace company, today announced its financial results for the fourth quarter and full year ended December 31, 2019.

“Throughout 2019, we continued to achieve key milestones in our mission to open access to space in a safe, innovative and affordable way,” said George Whitesides, Chief Executive Officer of Virgin Galactic. “During the fourth quarter, we took major steps toward reaching that goal by completing our transaction with Social Capital Hedosophia and becoming publicly listed on the NYSE, as well as building operational readiness at Spaceport America in New Mexico. The progress we made in 2019, combined with the high level of interest from potential customers, underpin the steps we are taking toward reopening ticket sales. We are continuing to build on our strong momentum as we enter the most exciting chapter of our story to date and prepare for commercial launch.”

Fourth Quarter 2019 Business Highlights:

  • Completed transaction with Social Capital Hedosophia and commenced public trading on the NYSE.
  • Achieved key operational milestones at Spaceport America, including exercising our new mission control, ground operational elements and external agreements/communications that were required for flights of VMS Eve and other aircraft types.
  • Transitioned a total of 70 Virgin Galactic operations personnel from Mojave, CA to New Mexico by year end, bringing our current total number of staff in New Mexico to 145, following the interior build-out of two floors at Spaceport America earlier in the year.
  • Commenced construction of the third floor at Spaceport America, which will be used for astronaut training and flight preparation activities.
  • Achieved critical design and build milestones on the second spaceship and achieved 50% completion of the third spaceship’s structure and systems fabrication.
  • Activated key elements of rocket motor higher rate production facility.
  • Continued to clear FAA Verification and Validation provisos.
  • Announced strategic partnership with Boeing and $20 million investment by Boeing’s HorizonX Ventures.
  • Entered into new contract with the Italian Air Force.
  • Announced collaboration with Under Armour and unveiled Future Astronaut spacesuits.
  • Launched Astronaut Readiness Program at Under Armour Global Headquarters in Baltimore, MD.
  • Added three new Board Directors and appointed Executive Vice President, General Counsel and Secretary.

Fourth Quarter 2019 Financial Highlights:

  • Cash and cash equivalents of $480 million as of December 31, 2019.
  • Revenue of $529,000 for the three months ended December 31, 2019.
  • Net loss of $73 million for the three months ended December 31, 2019, including applicable transaction costs.
  • Adjusted EBITDA totalled $(55) million for the three months ended December 31, 2019.
  • Capital expenditures totalled $6 million for the three months ended December 31, 2019.

Recent Business Highlights:

  • Received 7,957 registrations of interest in flight reservations – February 23, 2020.
  • Appointed Diane Prins Sheldahl as Executive Vice President, People and Organization – February 17, 2020.
  • Relocated VSS Unity to Spaceport America – February 13, 2020.
  • Appointed Enrico Palermo as Chief Operating Officer – January 15, 2020.
  • Achieved “Weight on Wheels” milestone for second spaceship – January 8, 2020.

“One Small Step” Sales Initiative

In a separate press release issued today, Virgin Galactic announced its “One Small Step” initiative, an important milestone in its strategy to position the Company optimally for the re-opening of spaceflight sales. Under this program, interested online registrants will be invited to pay a refundable $1,000 deposit to secure a front-of-line position for future ticket reservations. Upon Virgin Galactic releasing its next tranche of seats for sale, “One Small Step” registrants will be offered the tickets first, allowing them to make the “One Giant Leap” to a confirmed spaceflight reservation and gain full membership to the thriving Virgin Galactic Future Astronaut Community. Additional details on this initiative can be found in the separate press release, accessible on the Company’s Investor Relations website at investors.virgingalactic.com.

Fourth Quarter and FY 2019 Financial Results

Three Months Ended
December 31

Twelve Months Ended
December 31

(In thousands)

2019

2018

2019

2018

Revenue

$

529

$

1,287

$

3,781

$

2,849

Cost of revenue

314

814

2,004

1,201

Gross Profit

215

473

1,777

1,648

Selling, general, and administrative expenses

37,447

13,513

82,166

50,902

Research and development expenses

36,754

32,961

132,873

117,932

Operating loss

(73,986

)

(46,001

)

(213,262

)

(167,186

)

Interest income

1,160

289

2,297

633

Interest expense

34

2

36

10

Other income

–

29

128

28,571

Loss before income taxes

(72,860

)

(45,685

)

(210,873

)

(137,992

)

Income tax expense (benefit)

(61

)

32

62

147

Net loss

(72,799

)

(45,717

)

(210,935

)

(138,139

)

Other comprehensive income (loss):

Foreign currency translation adjustment

56

(35

)

(23

)

(52

)

Total comprehensive loss

$

(72,743

)

$

(45,752

)

$

(210,958

)

$

(138,191

)

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 in the United States should dial (833) 224-0545 and international parties should dial (825) 312-2253, and enter the conference ID number 7782487. The live audio webcast along with supplemental information 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.