Second Quarter 2022 Financial Results Released by Virgin Galacitc
Virgin Galactic Holdings has released second quarter 2022 financial results. The reporting period closed June 30, 2022. The company also provided a business update.
"As we prepare to return to the skies, we have put in place many powerful initiatives to drive our long-term success."
Michael Colglazier, Chief Executive Officer of Virgin Galactic.
"As we prepare to return to the skies, we have put in place many powerful initiatives to drive our long-term success. Our agreement with Aurora to develop new motherships, siting our new Spaceship factory in Phoenix, and acquisition of an incredible land parcel in New Mexico for our Future Astronaut Campus are cornerstone elements of how we will build and operate our global Spaceline," said Michael Colglazier, Chief Executive Officer of Virgin Galactic. "While our short-term plans now call for commercial service to launch in the second quarter of 2023, progress on our future fleet continues and many of the key elements of our roadmap are now in place to scale the business in a meaningful way."
Highlights from the Second Quarter 2022 Financial results include:
The cash position remains strong, with cash and cash equivalents and marketable securities of $1.1 billion as of June 30, 2022.
A net loss of $111 million compared to a $94 million net loss in the second quarter of 2021.
GAAP selling, general, and administrative expenses of $45 million, compared to $37 million in the second quarter of 2021. Non-GAAP selling, general and administrative expenses of $36 million in the second quarter of 2022, compared to $26 million in the second quarter of 2021.
GAAP research and development expenses of $62 million, compared to $35 million in the second quarter of 2021. Non-GAAP research and development expenses of $59 million in the second quarter of 2022, compared to $31 million in the second quarter of 2021.
Adjusted EBITDA totaled $(93) million, compared to $(56) million in the second quarter of 2021.
Free cash flow totaled $(91) million, compared to $(66) million in the second quarter of 2021.
Cash paid for capital expenditures totaled $5 million, compared to $1 million in the second quarter of 2021.
Business Highlights and Recent Updates:
On July 06, 2022, announced the selection of Boeing subsidiary, Aurora Flight Sciences, to build two new motherships, each designed to fly up to 200 launches per year. The first new mothership is expected to enter service in 2025.
On July 14, 2022, a new Delta class manufacturing facility in Mesa, Arizona was announced. This site will have the capacity to produce up to six spaceships per year and is expected to be fully operational in late 2023, bringing hundreds of new highly skilled jobs to the Greater Phoenix area.
On July 21, 2022, announced a partnership with Virtuoso to make a limited number of reservations within Virgin Galactic's first 1,000 seats available to their exclusive global portfolio offering.
On August 02, 2022, announced an expanded presence in New Mexico to support scaled operations.
Commercial service launching in Q2 2023 due to extended completion dates within the mothership enhancement program.
Separately, the Company filed a prospectus supplement with the Securities and Exchange Commission under which it may offer and sell, from time to time, up to $300 million worth of shares of its Class A common stock in “at-the-market offerings.” Net proceeds from sales of shares under the “at-the-market” program would be used for general corporate purposes, including working capital, general and administrative matters, development of its spaceship fleet, and other infrastructure to scale its commercial operations. The timing and amount of sales of shares will depend on a variety of factors, including prevailing market conditions, the trading price of shares, and other factors as determined by the Company.
(Source: Virgin Galactic Holdings news release. Images from file)