Virgin Galactic's latest results

Virgin Galactic Holdings, a vertically integrated aerospace company, today announced financial results for its third quarter of fiscal year 2019.

Third-quarter results for VG reflect the three months ended September 30, 2019, prior to the closing on October 25, 2019 of the recent business combination (the “Business Combination”) between VG’s predecessor, VGH, LLC, and Social Capital Hedosophia, a public investment vehicle. The Business Combination provided net proceeds to VG of over $430 million, which VG intends to use to fund its operations. Pre-transaction owners of VGH, LLC retained over 58% ownership of VG following the Business Combination.

“We believe our third quarter results reflect our ongoing progress as we execute on our strategy toward commercial launch,” said George Whitesides, Chief Executive Officer of VG. “We are thrilled to have completed our merger with Social Capital Hedosophia and to be trading publicly, both of which are major steps forward in the Company’s mission to open space for everyone.”

Recent Business Highlights:

• Transitioned approximately 60% of Virgin Galactic operations personnel from the headquarters in Mojave to Spaceport America, located in New Mexico.
• Achieved several operational milestones at Spaceport America, including the relocation of mothership VMS Eve, completing installation of the ground infrastructure, ground tests of all systems to ensure they are flight-ready and unveiling the operational hubs of Spaceport America as open and operational.
• Achieved several design and build milestones on the second SpaceShipTwo vehicle, including the attachment of the wing, fuselage cabin and tail booms.
• Announced strategic partnership with Boeing, which invested $20 million in VG on October 25, 2019.

VG Pre-Business Combination Third Quarter Fiscal 2019 Financial Highlights:

• Received customer reservations as of September 30, 2019 from more than 600 people in 60 countries, representing approximately $80 million in total collected deposits, and over $120 million of potential revenue as of September 30, 2019.
• Received 3,557 expressions of interest in flight reservations as of September 30, 2019.
• Cash and cash equivalents were $85.5 million as of September 30, 2019.
• Revenue of $0.8 million and $3.3 million for the three and nine months ended September 30, 2019, respectively, which was generated by transporting scientific payloads and providing engineering services.
• Net loss of $51.5 million and $138.1 million for the three and nine months ended September 30, 2019, respectively.
• Net cash used in operating activities for the nine months ended September 30, 2019 was $128.3 million.

	Three Months Ended September 30,				Nine Months Ended September 30,
	(In thousands)
	2019		2018		2019		2018
Revenue............................................................................................	$ 832		$ 386		$ 3,252		$ 1,562
Cost of revenue..................................................................................	406		68		1,690		387
	426		318		1,562		1,175
Selling, general, and administrative expenses......................................	17,814		13,636		44,719		37,389
Research and development expenses..................................................	34,528		26,456		96,119		84,971
Operating loss....................................................................	(51,916)		(39,774)		(139,276)		(121,185)
Interest income..................................................................................	387		164		1,137		344
Interest expense................................................................................	-		2		2		8
Other income.....................................................................................	91		463		128		28,542
Loss before income taxes...................................................	(51,438)		(39,149)		(138,013)		(92,307)
Income tax expense...........................................................................	37		35		123		115
Net loss.............................................................................	(51,475)		(39,184)		(138,136)		(92,422)
Other comprehensive income (loss):
Foreign currency translation adjustment…………………...…………………...	(58)		5		(79)		(17)
Total comprehensive loss…………………...	$(51,533)		$(39,179)		$(138,215)		$(92,439)

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