Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q3 2020 Earnings Presentation
21 slides from Virgin Galactic's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Investor Update
Third Quarter 2020 Investor Update November 5, 2020
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 spaceflight systems, markets and expected pe
Slide 3: Michael Colglazier, Chief Executive Officer
Michael Colglazier Chief Executive Officer 3
Slide 4: Third Quarter 2020 Milestones
Third Quarter 2020 Milestones ▪ Progress made on preparing spaceflight system for Fall test flight: ✓ Completed data review and analysis following June 25 glide flight ✓ Installed cabin interior camera system and hardware for live video downlink ✓ Implemented upgrades to flight control system ▪ Prep
Slide 5: Impact of COVID-19
Impact of COVID-19 ▪ Stringent operational protocols remain in place ✓ Staggered shifts and new communications methods ✓ Only essential employees working on-site ▪ Impacts to schedule and cost efficiency accumulating ✓ Impact to pace of build progress ✓ Expect impacts to continue in Q4 2020 and 2021
Slide 6: 100-Day Insights
100-Day Insights Initial Impressions ▪ Virgin Galactic has incredible assets: ✓ Spaceflight system (Spaceships, Rocket Motors, Motherships) ✓ Economic moat of intellectual property accumulated over 15 years ✓ Diverse and talented team ▪ Transformational experience supports pricing strategies ▪ Infle
Slide 7: 100-Day Insights
100-Day Insights The Next Chapter… ▪ Fly thousands and thousands of people to space ▪ Embarking on multi-year effort targeting 400 flights per year per Spaceport ▪ Approach suggests annual $1B revenue opportunity per Spaceport ▪ Fully-utilized Spaceport could be a powerful economic engine 7
Slide 8: 100-Day Insights: Key Roles Leading Transition from R&D to Production
100-Day Insights Key Roles Leading Transition from R&D to Production Tom Pugh Rob Sjostedt Sara Tatsch Patrick Moran Senior Vice President Vice President Vice President Business Virgin Galactic Pilot Programs & Engineering Manufacturing & New Program Development Byron Henning Eric Schwartz Jameel Ja
Slide 9: 100-Day Insights
100-Day Insights 9
Slide 10: Flight Test Program Update
Flight Test Program Update November 2020 Q1 2021 Q1 2021 • First spaceflight from • Second spaceflight from • Third spaceflight from Spaceport America, NM Spaceport America, NM Spaceport America, NM • Two pilots • Two pilots, plus four • Two pilots, plus employees in the cabin passengers in the cabi
Slide 11: Update on Second Spaceship
Update on Second Spaceship ▪ Rollout of Second Spaceship Expected in Q1 2021 ✓ Integrated Vehicle Ground Testing to commence following rollout ✓ Designed for higher rate service and reduced turnaround time ▪ COVID-19 required protocols impacting shop floor and engineering work processes 11
Slide 12: Commercial Update
Commercial Update ▪ Virgin Galactic at the Vanguard of the experience economy ▪ Focused on providing a transformative journey ▪ Plan to widen the experience and revenue opportunity beyond the Astronaut ticket ▪ Restarting ticket sales in 2021 following Sir Richard Branson’s flight ▪ Retiring “One Sm
Slide 13: Financials
Financials
Slide 14: Third Quarter 2020 Financials
Third Quarter 2020 Financials ▪ Strong cash position, with cash and cash equivalents of $742 million as of September 30, 2020 ▪ Net loss of $77 million, compared to $63 million net loss in Q2 2020 ▪ GAAP SG&A expenses of $31 million, compared to $26 million in Q2 2020. Non-GAAP SG&A expenses (1) of
Slide 15: Income Statement
Income Statement Amounts in thousands ($) Unaudited Three Months Ended Nine Months Ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenue - - $ 832 $ 238 $ 3,252 Cost of revenue - - 406 173 1,690 Gross profit - - 426 65 1,562 Selling, general, and adm
Slide 16: Cash Flow Statement
Cash Flow Statement Amounts in thousands ($) Unaudited Three Months Ended Nine Months Ended September 30, September 30, September 30, 2020 June 30, 2020 2019 2020 September 30, 2019 Cash flows from operating activities Net loss $ (76,950) $ (62,518) $ (51,475) $ (199,398) $ (138,136) Stock-based com
Slide 17: P Po | |
P Po | |
Slide 18: Appendix
Appendix
Slide 19: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Unaudited Three Months Ended Nine Months Ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net Loss $ (76,950) $ (62,518) $ (51,475) $ (199,398) $ (138,136) Income tax (benefit) expense 40 40 3
Slide 20: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Unaudited Three Months Ended Nine Months Ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Selling, general, and administrative expenses $ 30,936 $ 26,047 $ 17,814 $ 83,738 $ 44,719 Stock-based
Slide 21: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Unaudited Three Months Ended Nine Months Ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Research and development expenses $ 46,243 $ 37,150 $ 34,528 $ 117,675 $ 96,119 Stock-based compensati
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