Virgin Galactic(US:SPCE)2022-08-03 16:00Reservations and Revenue Expectations - As of June 30, 2022, Virgin Galactic received reservations for approximately 800 spaceflight tickets, collecting about $104.8 million in deposits from future astronauts[123]. - Ticket sales for spaceflights are priced at a base price of $450,000 per seat, with approximately $212.0 million in expected future revenue from tickets sold as of June 30, 2022[132]. - The company expects to commence commercial service in the second quarter of 2023, pending the completion of maintenance and enhancements to its vehicles[131]. - The company expects to begin generating revenue from its human spaceflight program, anticipated to launch in the second quarter of 2023[183]. Spaceflight System and Development - The company has developed a fully reusable spaceflight system consisting of a mothership and a spaceship, designed to carry passengers and research payloads into space[125]. - The next generation spaceship, VSS Imagine, is expected to commence test flights in mid-2023, with private astronaut service anticipated by the fourth quarter of 2023[134]. - Research and development expenses focus on advancing the human spaceflight system, including the development of the mothership, spaceship, and hybrid rocket propulsion system[140]. - The operational capacity for commercial flights will initially be limited to a single spaceship and mothership, with plans to expand the fleet to increase annual flight rates[134]. - The company aims to provide affordable and repeatable access to microgravity for scientific research, enhancing opportunities for a broader range of individuals and organizations[127]. Financial Performance - Revenue for the three months ended June 30, 2022, was $0.4 million, a decrease of 37% from $0.6 million in the same period of 2021[152]. - Revenue for the six months ended June 30, 2022, was $0.7 million, an increase of 18% from $0.6 million in the same period of 2021[153]. - Total operating expenses for the three months ended June 30, 2022, were $110.1 million, an increase of 47.8% from $74.5 million in 2021[152]. - Net loss for the three months ended June 30, 2022, was $110.7 million, compared to a net loss of $94.0 million in the same period of 2021[152]. Research and Development Expenses - Research and development expenses increased by $27.7 million, or 80%, to $62.3 million for the three months ended June 30, 2022, compared to $34.6 million in 2021[158]. - Research and development expenses increased by $44.5 million, or 64%, to $114.2 million for the six months ended June 30, 2022, compared to $69.7 million in 2021[159]. Administrative and Other Expenses - Selling, general and administrative expenses increased by $7.8 million, or 21%, to $44.7 million for the three months ended June 30, 2022, from $36.9 million in 2021[156]. - Selling, general and administrative expenses increased by $1.5 million, or 2%, to $81.7 million for the six months ended June 30, 2022, from $80.2 million in 2021[157]. - Customer experience expenses increased by 94% to $0.1 million for the three months ended June 30, 2022, compared to $0.06 million in 2021[154]. Cash Flow and Financial Position - Net cash used in operating activities was $153.0 million for the six months ended June 30, 2022, primarily due to $203.8 million of net losses[173]. - Net cash used in investing activities was $385.5 million for the six months ended June 30, 2022, mainly from $379.3 million in marketable securities purchases[175]. - Net cash provided by financing activities was $358.5 million for the six months ended June 30, 2022, primarily from the issuance of the 2027 Notes[176]. - As of June 30, 2022, the company had cash, cash equivalents, and restricted cash totaling $370.1 million, along with $752.5 million in marketable securities[170]. Interest Income and Expense - Interest income for the three months ended June 30, 2022, was $2.0 million, compared to $0.2 million in the same period of 2021[147]. - Interest income increased by $1.8 million, or 802%, to $2.0 million for the three months ended June 30, 2022, compared to $0.2 million for the same period in 2021[163]. - Interest income for the six months ended June 30, 2022, rose by $2.3 million, or 414%, to $2.8 million from $0.5 million in 2021[164]. - Interest expense surged by $3.2 million, or 52,517%, to $3.2 million for the three months ended June 30, 2022, from less than $0.1 million in 2021[166]. - Interest expense for the six months ended June 30, 2022, increased by $5.6 million, or 43,215%, to $5.6 million from less than $0.1 million in 2021[167]. Tax and Valuation - The company maintains a valuation allowance against its net U.S. federal and state deferred tax assets due to accumulated net operating losses[169]. - The company issued the 2027 Notes with an aggregate principal amount of $425.0 million at a fixed annual interest rate of 2.50%[191]. - As of June 30, 2022, a hypothetical 100 basis point change in interest rates would not have had a material impact on the value of the company's cash equivalents or investment portfolio[192]. - The company does not use foreign currency forward contracts to manage exchange rate risk, as the amount subject to foreign currency risk is not material to overall operations[194].