Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q3 2021 Earnings Presentation
18 slides from Virgin Galactic's earnings presentation, Nov 8, 2021
Slide 1: Third Quarter 2021 Investor Update
THIRD QUARTER 2021 I N V E S T O R U P D AT E 11.08.2021
Slide 2: Disclosures
DISCLOSURES FORWARD-LOO KIN G STATE ME N TS 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 sche
Slide 3: Today's Focus
MICHAEL COLGLAZIER CEO TO DAY ’ S FO C US Transitioning from a prototyping space innovator to a global, scaled, commercial operation. THIRD QUARTER 2021 INVESTOR UPDATE P — 3
Slide 4: Agenda
AGENDA ▪ Commercial Sales Update ▪ Enhancement Program and Timelines ▪ Fleet Expansion Overview ▪ Financial Update THIRD QUARTER 2021 INVESTOR UPDATE P — 4
Slide 5: Commercial Sales Update
COMMERCIAL SALES I N S P I R AT I O N A L M A R K E T I N G INTERESTED PARTIES ▪ New Customers Joined Future Astronaut Community ▪ Targeting 1,000 Future Astronauts Before Commercial Service - Approximately 700 of these currently onboard CRM ENGAGEMENT ▪ $450K Pricing Strategy Well Received - Demons
Slide 6: Unity 22 Highlights – Q3 2021
UNITY 22 HIGHLIGHTS – Q3 2021 First Spaceflight with a Full Cabin of Mission Fourth Spaceflight Specialists Demonstrated Transformative Customer Experience Second Spaceflight from Spaceport America THIRD QUARTER 2021 INVESTOR UPDATE P — 6
Slide 7: Protected Airspace
PROTECTED AIRSPACE \ Unity22 Flight Path V1IRGINGALSCTIC —— Spaceport America
Slide 8: Flight Program
FLIGHT PROGRAM ▪ Enhancement Program ▪ Increase Flight Rate Capability ▪ Increase the Number of Flights between Major Inspections ▪ Increase Vehicle Service Life THIRD QUARTER 2021 INVESTOR UPDATE P — 8
Slide 9: Flight Cadence Modifications
F L I G H T C A D E N C E M O D I F I C AT I O N S Area #1: Center Wing and Launch Pylon ▪ Reinforcing the Middle Wing ▪ Upgrading the Pylon to a New Design Area #2: Horizontal Stabilizers ▪ Remove and Replace H-Stabs Area #3: Avionics, Mechanical and Structural Systems ▪ Proactively Strengthening C
Slide 10: Flight Schedule
FLIGHT SCHEDULE VSS Unity: Private Astronaut Spaceflights VMS Eve: VSS Unity: Solo Flights Research Spaceflights Jul. 2022 Jan. 2023 2Q23 VSS Imagine: VSS Imagine: Glide Flight VSS Imagine: Private Astronaut Revenue Generating Spaceflights VSS Imagine: VSS Imagine: Spaceflights Captive Carry to Spac
Slide 11: Fleet Expansion
F L E E T E X PA N S I O N ▪ Design & Collaboration Center ▪ Delta Class Spaceship Program ▪ Next Generation Mothership Program THIRD QUARTER 2021 INVESTOR UPDATE P — 11
Slide 12: Capital Allocation
C A P I TA L A L LO C AT I O N C A S H & C A S H E Q U I VA L E N T S CAPITAL ALLOCATION PRIORITIES ▪ Maintain a Strong Balance Sheet and Cash Position ▪ Invest Organically for Growth ▪ Opportunistically Access the Capital Markets FREE CASH FLOW (1) $989 M (2) ▪ Q3 2021: ($53) million $742 M $666 M
Slide 13: Financial Results
F I N A N C I A L R ES U LTS (Amounts in thousands) THREE MONTHS ENDED September 30, 2021 September 30, 2020 Net Loss $ (48,368) $ (92,062) Adjusted EBITDA (1) $ (67,705) $ (65,599) 1. Virgin Galactic uses adjusted EBITDA as a key measure of its performance. Adjusted EBITDA excludes stock-based comp
Slide 14: Summary
S U M M A RY THIRD QUARTER 2021 INVESTOR UPDATE P — 14
Slide 15: Appendix
APPENDIX THIRD QUARTER 2021 INVESTOR UPDATE P — 15
Slide 16: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THRE E MON THS E N DE D September 30, 2021 September 30, 2020 Net Loss $ (48,368) $ (92,062) Income tax expense 25 40 Interest expense 6 9 Depreciation & amortization 2,895 2,509 Stock-based compensation 12,170 8,625 C
Slide 17: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THRE E MON THS E N DE D September 30, 2021 September 30, 2020 Selling, general, and administrative expenses $ 49,859 $ 30,936 Stock-based compensation 8,540 5,056 Depreciation & amortization 1,592 1,448 Non-GAAP sellin
Slide 18: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THRE E MON THS E N DE D September 30, 2021 September 30, 2020 Net cash used in operating activities $ (52,165) $ (54,976) Capital expenditures (805) (3,721) Free cash flow $ (52,970) $ (58,697) THIRD QUARTER 2021 INVES
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