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Virgin Galactic(SPCE) - 2024 Q3 - Quarterly Report
SPCEVirgin Galactic(SPCE)2024-11-06 21:46
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Revenue and Financial Performance - Revenue for the three months ended September 30, 2024, was 402,000,adecreaseof77402,000, a decrease of 77% compared to 1.728 million for the same period in 2023[105] - Operating loss for the three months ended September 30, 2024, was (81.728)million,comparedto(81.728) million, compared to (114.272) million for the same period in 2023[104] - Total operating expenses for the three months ended September 30, 2024, were 82.130million,downfrom82.130 million, down from 116 million in the same period in 2023[104] - Net cash used in operating activities was 271.7millionfortheninemonthsendedSeptember30,2024,comparedto271.7 million for the nine months ended September 30, 2024, compared to 352.9 million for the same period in 2023[126][127] - Interest income increased from 28.6millionfortheninemonthsendedSeptember30,2023to28.6 million for the nine months ended September 30, 2023 to 33.8 million for the nine months ended September 30, 2024, primarily due to higher investment returns on marketable securities[121] Research and Development - Research and development expenses decreased by 47% to 23.937millionforthethreemonthsendedSeptember30,2024,from23.937 million for the three months ended September 30, 2024, from 44.848 million in the same period in 2023[111] - Research and development expenses decreased from 241.3millionfortheninemonthsendedSeptember30,2023to241.3 million for the nine months ended September 30, 2023 to 124.4 million for the nine months ended September 30, 2024, primarily due to a 48.2milliondecreaseinmaterialsandconsultingcosts[113]CashandInvestments−AsofSeptember30,2024,thecompanyhadcash,cashequivalents,andrestrictedcashof48.2 million decrease in materials and consulting costs[113] Cash and Investments - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash of 204.7 million and marketable securities of 539.2million[124]−Netcashprovidedbyinvestingactivitieswas539.2 million[124] - Net cash provided by investing activities was 116.4 million for the nine months ended September 30, 2024, consisting primarily of 729.4millioninproceedsfrommaturitiesandcallsofmarketablesecurities[128]−Netcashprovidedbyfinancingactivitieswas729.4 million in proceeds from maturities and calls of marketable securities[128] - Net cash provided by financing activities was 106.3 million for the nine months ended September 30, 2024, primarily from net cash proceeds from the sale and issuance of common stock[130] Future Plans and Expectations - As of September 30, 2024, the company has reservations for approximately 700 future astronauts, representing approximately 194millioninexpectedfuturespaceflightrevenue[98]−ThecompanyexpectstocommencecommercialservicewithitsnewDeltaClassspaceshipsin2026[92]−Thecompanyanticipatesdeployinganewmothershipforcommercialservicein2028,supportedbyadditionalengineeringresourcesandgrowthcapital[100]−Thecompanyexpectsexpenditurestoincreaseasitscalesupmanufacturingprocessesandcapabilitiestosupporttheexpansionofitsfleetofspaceships[132]−Thecompanyanticipatesthatcoststomanufactureadditionalvehicleswillbegintodecreaseasitcontinuestoscaleupmanufacturingprocesses[133]OperationalDevelopments−Thecompanycompleteditssecondspaceflightof2024,′Galactic07,′inJune,carryingoneresearcherandthreeprivateastronauts[92]−ThecompanycompletedanewmanufacturingfacilityinMesa,Arizona,withfinalassemblyofDeltaClassspaceshipsscheduledtobeginin2025[95]ComplianceandRiskManagement−Followinga1−for−20reversestocksplit,thecompanyregainedcompliancewithNYSElistingrequirementsonJuly1,2024[93]−NosignificantchangestocriticalaccountingpoliciesandestimatesduringthefiscalquarterendedSeptember30,2024[143]−NosignificantchangestomarketriskscomparedtopreviousdisclosuresduringthefiscalquarterendedSeptember30,2024[145]CostManagement−Selling,generalandadministrativeexpensesdecreasedfrom194 million in expected future spaceflight revenue[98] - The company expects to commence commercial service with its new Delta Class spaceships in 2026[92] - The company anticipates deploying a new mothership for commercial service in 2028, supported by additional engineering resources and growth capital[100] - The company expects expenditures to increase as it scales up manufacturing processes and capabilities to support the expansion of its fleet of spaceships[132] - The company anticipates that costs to manufacture additional vehicles will begin to decrease as it continues to scale up manufacturing processes[133] Operational Developments - The company completed its second spaceflight of 2024, 'Galactic 07,' in June, carrying one researcher and three private astronauts[92] - The company completed a new manufacturing facility in Mesa, Arizona, with final assembly of Delta Class spaceships scheduled to begin in 2025[95] Compliance and Risk Management - Following a 1-for-20 reverse stock split, the company regained compliance with NYSE listing requirements on July 1, 2024[93] - No significant changes to critical accounting policies and estimates during the fiscal quarter ended September 30, 2024[143] - No significant changes to market risks compared to previous disclosures during the fiscal quarter ended September 30, 2024[145] Cost Management - Selling, general and administrative expenses decreased from 144.0 million for the nine months ended September 30, 2023 to 95.8millionfortheninemonthsendedSeptember30,2024,drivenbya95.8 million for the nine months ended September 30, 2024, driven by a 30.7 million decrease in cash compensation and other employee benefit costs[116] - The company expects to meet its short-term liquidity requirements primarily through its cash, cash equivalents, and marketable securities on hand[138]