Virgin Galactic, after unveiling new ship, releases earnings

The company said it has a strong cash position; second quarter suffered a net loss of $63 million

Virgin Galactic released its earnings Monday, just a few hours after it unveiled a ship that the company called a “new frontier in high-speed travel.”

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The company said it has a strong cash position with cash and cash equivalents of $360 million as of June 30, 2020.

The second quarter suffered a net loss of $63 million, compared to a $60 million net loss in first quarter of 2020; cash paid for capital expenditures totaled $6 million, compared to $4 million in first quarter of 2020.

“We saw continued growth in customer demand, with increases in paid enrollments for our ‘One Small Step’ program, and entered into deposit agreements for orbital spaceflights with twelve customers," George Whitesides, chief space officer of Virgin Galactic, said. "During the period, our operations were impacted by the COVID-19 pandemic, despite our efforts to minimize disruption.”

The new high-speed travel technologies represent the future of aviation, he added. And the Virgina Galactic staff is looking forward to working with NASA, Boein and Rolls Royce to change the way people travel.

Shares of  Virgin Galactic Holdings rose 4.81 percent to $23.23 in Monday trading after the aerospace company unveiled its first renderings of a supersonic commercial jet that it hopes will be able to move passengers around the globe at speeds of up to 2,300 miles per hour -- about three times the speed of sound.

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The aerospace and space travel company also announced Monday it has an underwritten public offering of more than 20.48 million shares of its common stock, which is expected to gross proceeds of approximately $460 million.

The proceeds shall go to general corporate purposes, such as working capital, general and administrative matters and capital expenditures.

“We are making substantial progress across many areas of the company as we continue to focus on our path to commercial launch and the steps we are taking to get there," CEO Michael Colglazier added.