Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q4 2021 Earnings Presentation
20 slides from Virgin Galactic's earnings presentation, Feb 22, 2022
Slide 1: Fourth Quarter and 2021 Fiscal Year Update
FOURTH QUARTER AND 2 0 2 1 F I S C A L Y E A R U P D AT E 02.22.2022
Slide 2: Disclosures
DISCLOSURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of federal securities laws with respect to Virgin Galactic Holdings, Inc. (the "Company"), including statements regarding the Company’s expected spaceship rollout, flight schedule
Slide 3: Michael Colglazier, CEO
MICHAEL COLGLAZIER CEO Fourth Quarter and Full Year 2021 Financial Presentation 3
Slide 4: 2021 Highlights
2021 HIGHLIGHTS FAA Approval For Full Commercial Launch License Flew Two Crewed Spaceflights Began Enhancements To Our CurrentFourth Fleet Initiated Design Work On Future Fleet Quarter and Full Year 2021 Financial Presentation 4
Slide 5: Agenda
AGENDA • Vehicle Enhancement Program Update • Commercial Plans • Manufacturing Strategy • Financial Update Fourth Quarter and Full Year 2021 Financial Presentation 5
Slide 6: Vehicle Enhancement Program On Track
VEHICLE ENHANCEMENT PROGRAM ON TRACK Enhancement period designed to: Improve flight frequency Commercial service with VSS Unity and Increase time between maintenance VMS Eve on track for Q4, 2022 periods Commercial service with VSS Imagine Improve vehicle reliability, predictability on tra
Slide 7: Virgin Galactic Senior Leadership Team
VIRGIN GALACTIC SENIOR LEADERSHIP TEAM Michael Colglazier Doug Ahrens Aparna Chitale Michelle Kley Chief Executive Officer Chief Financial Officer Chief People Officer EVP, General Counsel, Corporate Secretary Blair Rich Swami Iyer Mike Moses Sirisha Bandla President, Chief Business Officer, Preside
Slide 8: Creating Robust Demand in a Growing Addressable Market
CREATING ROBUST DEMAND IN A GROWING ADDRESSABLE MARKET INTERESTED CRM HIGHLY QUALIFIED SALES MARKETING PARTIES ENGAGEMENT LEADS ENGAGEMENT ~250 SEATS REMAINING WITHIN FIRST 1,000 • PRIORITY LIST TO FOLLOW Fourth Quarter and Full Year 2021 Financial Presentation 8
Slide 9: Future Astronaut Membership Included with Spaceflight Reservation
FUTURE ASTRONAUT MEMBERSHIP INCLUDED WITH SPACEFLIGHT RESERVATION • Access to curated events, trips and experiences around the world • Exclusive access to the Gateway to Space at Spaceport America • VIP attendance to launches Fourth Quarter and Full Year 2021 Financial Presentation 9
Slide 10: Manufacturing Strategy
MANUFACTURING STRATEGY CURRENT FLEET MANUFACTURING APPROACH FUTURE FLEET MANUFACTURING APPROACH • Designed for prototyping and flight • Designed for higher rate production test phase • Maintain in-house design, • Vertically integrated manufacturing engineering, and final assembly • Highly flexible;
Slide 11: Doug Ahrens, CFO
DOUG AHRENS CFO Fourth Quarter and Full Year 2021 Financial Presentation 11
Slide 12: Fleet Expansion & Timeline
FLEET EXPANSION & TIMELINE VSS UNITY VSS IMAGINE DELTA CLASS 1st Spaceship In Fleet 2nd Spaceship In Fleet Production Model Enters Commercial Service Enters Commercial Service Enters Commercial Service – Q4 2022 est. – 1H 2023 est. 2025 – 2026 est. Estimated Turnaround Time: Estimated Turnaround Tim
Slide 13: Q4 & FY2021 Results
Q4 & FY2021 RESULTS FOURTH QUARTER FISCAL YEAR Ended December 31, 2021 Ended December 31, 2021 • Net loss of $81 million, compared to $104 • Net loss for fiscal year 2021 totaled $353 million in the prior year period million, compared to $645 million for fiscal year 2020 • Adjusted EBITDA of $(65) m
Slide 14: Cash, Cash Equivalents, and Marketable Securities
Q4 & FY2021 RESULTS CASH, CASH EQUIVALENTS, AND FREE CASH FLOW (1) MARKETABLE SECURITIES Pro Forma Cash: (3, 4) Approximately $1.3 B • Q4 2021: $(67) million • Q1 2022 Guidance: Expected to be in the range of $(75) million to $(85) million $931 M (3) $679 M (2) Dec. 31, 2020 Dec. 31, 2021 1. Virgin
Slide 15: Fourth Quarter and Full Year 2021 Financial Presentation
Fourth Quarter and Full Year 2021 Financial Presentation 15
Slide 16: Appendix
APPENDIX Fourth Quarter and Full Year 2021 Financial Presentation 16
Slide 17: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE MONTHS ENDED YEARS ENDED December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Net Loss $ (80,797) $ (104,116) $ (352,899) $ (644,887) Income tax (benefit) expense 5 (28) 79 6 Interest expense 6 10 25 36 Depreciation
Slide 18: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE MONTHS ENDED YEARS ENDED December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Selling, general, and administrative expenses $ 39,902 $ 32,854 $ 173,178 $ 116,592 Stock-based compensation 9,177 9,800 46,181 21,272 Dep
Slide 19: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE M ONTHS ENDED YEARS ENDED December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Net cash used in operating activities (65,126) (70,096) (230,763) (233,159) Capital expenditures (2,183) (3,540) (4,635) (17,201) Free ca
Slide 20: Reconciliation to Non-GAAP Measures – Q1 2022 Guidance
RECONCILIATION TO NON-GAAP MEASURES – Q1 2022 GUIDANCE (Amounts in thousands) FORECASTED RANGE Net cash used in operating activities $ (74,000) – (82,000) Capital expenditures $ (1,000) – (3,000) Free cash flow $ (75,000) – (85,000) Fourth Quarter and Full Year 2021 Financial Presentation 20
Virgin Galactic Holdings — Q4 2021 Earnings Presentation on 6ix