LONG BEACH, Calif.--(BUSINESS WIRE )--Virgin Orbit (Nasdaq: VORB) (“Virgin Orbit” or the “Company”), the responsive space flight and services company, today announced its financial results for the second quarter ended June 30, 2022.
Virgin Orbit’s Chief Executive Officer, Dan Hart, commented, “We had another strong quarter of execution, culminating in our latest launch on July 1st. Our 'Straight Up' mission, which was our fourth successful launch in 18 months, delivered seven satellites for the DoD. We continue to see strong efficiency gains as we scale production and increase launch rate.”
Mr. Hart continued, “Looking ahead, we have turned our attention to our upcoming launch from spaceport Cornwall, where we are enabling the United Kingdom to have space launch access for the first time. We believe this historic event will showcase our unique capabilities for establishing international spaceports as we continue to build momentum with our space agency and MoD partners around the world.”
The Company will conduct a conference call starting at 4:30 pm ET on Friday, August 12, 2022 to review the results for the second quarter ended June 30, 2022 and provide a business update.
Participants may access the call at 1-877-407-0792, international callers may use 1-201-689-8263, and request to join the Virgin Orbit earnings call. A live webcast along with supplemental information will also be available at https://investors.virginorbit.com/news-events/ir-calendar.
A telephonic replay will be available shortly after the conclusion of the call and until Friday, August 26, 2022. Participants may access the replay at 1-844-512-2921, and international callers may use 1-412-317-6671 and enter access code 13731912. An archived replay of the call will be available on the investors portion of the Virgin Orbit website at https://investors.virginorbit.com/.
Virgin Orbit operates one of the most flexible and responsive space launch systems ever built. Founded by Sir Richard Branson in 2017, the company began commercial service in 2021, and has already delivered commercial, civil, national security, and international satellites into orbit. Virgin Orbit’s LauncherOne rockets are designed and manufactured in Long Beach, California, and are air-launched from a modified 747- 400 carrier aircraft that allows Virgin Orbit to operate from locations all over the world in order to best serve each customer’s needs.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations for certain operational and financial results for the year ending December 31, 2022, expectations as to the rate and timing and success of future launches, expectations as to the anticipated benefits of the Company’s air launch capabilities, and anticipated growth. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the Company’s ability to access adequate sources of capital and continue as a going concern; its ability to grow market share in the developing space economy; its ability to convert backlog and potential revenue into revenue; its expected timing for and success of future missions; market acceptance of its current and planned products and services and ability to achieve sufficient production volumes and anticipated mission timing, as well as the factors, risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (the “SEC”), as well as in the Company’s subsequent filings with the SEC, including but not limited to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022, accessible on the SEC’s website at www.sec.gov and the Investor Information section of the Company’s website at www.virginorbit.com. These filings identify and address other important risks and uncertainties that could cause the Company’s actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Virgin Orbit assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Virgin Orbit gives no assurance that it will achieve its expectations.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except for per share data)
Selling, general and administrative expenses
Change in fair value of equity investments
Change in fair value of liability classified warrants
Total other (expense) income, net:
As of June 30, 2022 and December 31, 2021
(In thousands, except per share data)
Prepaid expenses and other current assets
Property, plant and equipment, net
Current portion of lease obligation
Current portion of provision for contract losses
Accrued liabilities and other current liabilities
Lease obligation, net of current portion
Deferred revenue, net of current portion
Public and private placement warrant liabilities
Provision for contract losses, net of current portion and other long-term liabilities
Preferred stock, $0.0001 par value, 25,000,000 shares authorized; none issued and outstanding
Common stock, $0.0001 par value, 2,000,000,000 shares authorized; 335,102,523 and 334,919,914 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
Total liabilities and stockholders’ equity
Condensed Consolidated Statements of Cash Flows
For the Three and Six Months Ended June 30, 2022 and 2021
Cash flows from operating activities
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash investment in Sky and Space
Change in fair value of equity investments
Change in fair value of liability classified warrants
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
Due to related party, net
Net cash used in operating activities
Cash flows from investing activities:
Purchase of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Payments of finance lease obligations
Proceeds from the exercise of stock options
Advances to stock option holders
Net cash provided by financing activities
Net decrease in cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash at the beginning of the period
Cash and cash equivalents and restricted cash at the end of the period
Cash and cash equivalents and restricted cash
Virgin Orbit Holdings, Inc. Use of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Adjusted (Non-GAAP) Results
This press release references Adjusted EBITDA and free cash flow, financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (GAAP). The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items the Company believes are not indicative of its core operating performance. The Company defines free cash flow as net cash used in operating activities less capital expenditures. Non-GAAP financial measures are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.
The Company believes that presenting Adjusted EBITDA and free cash flow 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 Adjusted EBITDA, and free cash flow or any other 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 the Company’s free cash flow guidance to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.
Non-cash investment in Sky and Space
Change in fair value of equity investments
Change in fair value of liability classified warrants
Net cash used in operating activities
INQUIRIES: Media, Virgin Orbit: Alison Patch, Senior Director of Communications Alison.patch@virginorbit.com 949-616-2504 Investor Relations, Virgin Orbit: Stephen Zhang, Vice President of Investor Relations Stephen.Zhang@virginorbit.com 562-384-4400
INQUIRIES: Media, Virgin Orbit: Alison Patch, Senior Director of Communications Alison.patch@virginorbit.com 949-616-2504 Investor Relations, Virgin Orbit: Stephen Zhang, Vice President of Investor Relations Stephen.Zhang@virginorbit.com 562-384-4400