Virgin Galactic : Press Release Open Event Link, Document, February 26, 2025,

Published: 2025-02-26 17:09:25 ET SPCE

Virgin Galactic Announces Fourth Quarter and Full Year 2024 Financial Results and Provides Business Update

ORANGE COUNTY, CALIFORNIA. - February 26, 2025 - Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") today announced its financial results for the fourth quarter and full year ended December 31, 2024 and provided a business update.

CEO Michael Colglazier said, "We are excited to share that our first spaceflight with our new Delta SpaceShips is planned for summer 2026. This first spaceflight will carry scientific research, and we expect to begin private astronaut spaceflights in the fall of 2026. We have made tremendous progress with the fabrication of tools and parts, and assembly of the first SpaceShip begins next month in Phoenix."

Fourth Quarter 2024 Financial Highlights

Full Year 2024 Financial Highlights

Business Updates

Financial Guidance

The following forward-looking statements reflect our expectations for the first quarter of 2025 as of February 26, 2025 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Forward-Looking Statements."

Non-GAAP Financial Measures

In addition to the Company's results prepared in accordance with generally accepted accounting principles in the United States (GAAP), the Company is also providing certain non-GAAP financial measures. A discussion regarding the use of non-GAAP financial measures and a reconciliation of such measures to the most directly comparable GAAP information is presented later in this press release.

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 +1 800-715-9871 or +1 646-307-1963 and enter the conference ID number 9301433. The live audio webcast along with supplemental information will be accessible on the Company's Investor Relations website at https://investors.virgingalactic.com/events-and-presentations/. A recording of the webcast will also be available following the conference call.

About Virgin Galactic Holdings

Virgin Galactic is an aerospace and space travel company, pioneering human-first spaceflight for private individuals and researchers with its advanced air and space vehicles. Scale and profitability are driven by next-generation vehicles capable of bringing humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, development, production and design of our Delta Class spaceships and proposed timeline for assembly and commercial service using such spaceships, our plans to advance design work on our next-generation SpaceShip launch vehicle, the acceleration of our next phase of growth, our plans to begin major parts delivery and assembly at our Phoenix-Mesa spaceship factory, our plans to work with Italy's civil aviation authority in connection with a potential second spaceport, and our objectives for future operations, growth plans and the Company's financial forecasts, including first quarter 2025 expected free cash flow, are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "strategy," "future," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC's website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward- looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Fourth Quarter 2024 Financial Results

VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share amounts)

Three Months Ended

Year Ended

December 31,

2024

2023

2024

2023

Revenue

429

2,809

7,036

6,800

Operating expenses:

Spaceline operations

20,271

24,338

90,024

50,538

Research and development

28,237

53,848

152,678

295,140

Selling, general and administrative

29,703

30,844

125,496

174,864

Depreciation and amortization

4,171

3,646

15,467

13,369

Special charges

4,398

Total operating expenses

82,382

117,074

383,665

538,309

Operating loss

(81,953)

(114,265)

(376,629)

(531,509)

Interest income

8,573

13,644

42,352

42,234

Interest expense

(3,237)

(3,224)

(12,927)

(12,872)

Other income, net

538

263

Loss before income taxes

(76,558)

(103,746)

(346,666)

(501,884)

Income tax expense (benefit)

(145)

238

453

Net loss

(76,413)

(103,984)

(346,740)

(502,337)

Other comprehensive income (loss):

Foreign currency translation adjustment

(25)

Unrealized gain (loss) on marketable

(939)

1,608

(93)

7,616

securities

Total comprehensive loss

(77,377)

(102,304)

(346,833)

(494,640)

Net loss per share:

Basic and diluted

(2.53)

(5.20)

(13.89)

(29.79)

Weighted-average shares outstanding:

Basic and diluted

30,254

19,988

24,955

16,863

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Balance Sheets (In thousands)

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

178,605

216,799

Restricted cash

32,280

36,793

Marketable securities, short-term

384,621

657,238

Other current assets

32,430

39,999

Total current assets

627,936

950,829

Marketable securities, long-term

61,280

71,596

Property, plant and equipment, net

209,114

93,806

Other non-current assets

62,895

63,286

Total assets

961,225

1,179,517

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

3,696

32,415

Customer deposits

84,493

97,841

Other current liabilities

61,821

55,404

Total current liabilities

150,010

185,660

Non-current liabilities:

Convertible senior notes, net

420,120

417,886

Other long-term liabilities

68,815

70,495

Total liabilities

638,945

674,041

Stockholders' Equity

Common stock

Additional paid-in capital

2,794,871

2,631,235

Accumulated deficit

(2,472,872)

(2,126,132)

Accumulated other comprehensive income

278

371

Total stockholders' equity

322,280

505,476

Total liabilities and stockholders' equity

961,225

1,179,517

VIRGIN GALACTIC HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

Three Months Ended

Year Ended

December 31,

2024

2023

2024

2023

Cash flows from operating activities:

Net loss

$ (76,413)

$ (103,984)

(346,740)

$ (502,337)

Stock-based compensation

5,712

8,660

29,752

44,258

Depreciation and amortization

4,171

3,646

15,467

13,369

Amortization of debt issuance costs

565

548

2,234

2,166

Accretion of marketable securities purchased at a

(2,673)

(7,077)

(16,635)

(15,085)

discount

Other non-cash items

827

1,457

1,509

Change in operating assets and liabilities:

Other current and non-current assets

(3,058)

2,262

10,566

16,555

Accounts payable

(3,839)

(394)

(29,203)

8,625

Customer deposits

(1,647)

(82)

(13,348)

(4,806)

Other current and non-current liabilities

(4,680)

1,111

(6,253)

(12,447)

Net cash used in operating activities

(81,035)

(95,309)

(352,703)

(448,193)

Cash flows from investing activities:

Capital expenditures

Purchases of marketable securities

Proceeds from maturities and calls of marketable securities

Other investing activities

Net cash provided by (used in) investing activities

Cash flows from financing activities:

(35,709)

(18,368)

(121,855)

(44,309)

(16,073)

(136,886)

(543,434)

(1,009,836)

110,982

235,526

840,335

937,872

610

59,212

80,272

175,656

(116,273)

Payments of finance lease obligations

Proceeds from issuance of common stock

Withholding taxes paid on behalf of employees on net settled stock-based awards

Transaction costs related to issuance of common stock

Other financing activities

Net cash provided by (used in) financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

Cash and cash equivalents

Restricted cash

Cash, cash equivalents and restricted cash

(44)

(60)

(193)

(235)

29,098

137,796

484,145

(54)

(239)

(1,207)

(3,240)

(1,008)

(133)

(2,054)

(5,239)

(2)

27,992

(432)

134,340

475,431

6,169

(15,469)

(42,707)

(89,035)

204,716

269,061

253,592

342,627

210,885

253,592

210,885

253,592

178,605

216,799

178,605

216,799

32,280

36,793

32,280

36,793

210,885

253,592

210,885

253,592

USE OF NON-GAAP FINANCIAL MEASURES

This press release references certain financial measures that are not prepared in accordance with GAAP, including non-GAAP total operating expenses, Adjusted EBITDA and free cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation, depreciation and amortization and certain other items the Company believes are not indicative of its core operating performance. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock- based compensation, and certain other items the Company believes are not indicative of its core operating performance. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended December 31, 2024 and 2023 and years ended December 31, 2024 and 2023, respectively, is set forth below (in thousands):

Three Months Ended

Year Ended

December 31,

2024

2023

2024

2023

Total operating expenses

82,382

117,074

383,665

538,309

Stock-based compensation

5,712

8,660

29,752

44,258

Depreciation and amortization

4,171

3,646

15,467

13,369

Special charges(1)

4,398

Non-GAAP total operating expenses

72,499

100,370

338,446

476,284

A reconciliation of net loss to Adjusted EBITDA for the three months ended December 31, 2024 and 2023 and years ended December 31, 2024 and 2023, respectively, is set forth below (in thousands):

Three Months Ended

Year Ended

December 31,

2024

2023

2024

2023

Net loss

(76,413)

(103,984)

(346,740)

(502,337)

Interest expense

3,237

3,224

12,927

12,872

Income tax expense (benefit)

(145)

238

453

Depreciation and amortization

4,171

3,646

15,467

13,369

Stock-based compensation

5,712

8,660

29,752

44,258

Special charges(1)

4,398

Adjusted EBITDA

(63,438)

(83,818)

(288,520)

(426,987)

The following table reconciles net cash used in operating activities to free cash flow for the three months ended December 31, 2024 and 2023 and years ended December 31, 2024 and 2023, respectively (in thousands):

Three Months Ended

Year Ended December 31,

December 31,

2024

2023

2024

2023

Net cash used in operating activities

(81,035)

(95,309)

(352,703)

(448,193)

Capital expenditures

(35,709)

(18,368)

(121,855)

(44,309)

Free cash flow

(116,744)

(113,677)

(474,558)

(492,502)

The Company has not provided a reconciliation of forward-looking free cash flow to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and the fact that there is substantial uncertainty associated with predicting any future adjustments that we may make to our GAAP financial measures in calculating our non-GAAP financial measures.

_______________

For media inquiries:

Aleanna Crane - Vice President, Communications [email protected]

575.800.4422

For investor inquiries:

Eric Cerny - Vice President, Investor Relations [email protected]

949.774.7637

Disclaimer

Virgin Galactic Holdings Inc. published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 22:06:48.464.