Astra Announces Second Quarter 2021 Financial Results
“Astra achieved several key milestones in the first half of 2021 to further its mission to improve life on Earth from space,” said CEO, Chairman and Co-Founder
“Completing the Holicity merger and PIPE investment led by BlackRock added
Second Quarter 2021 and Recent Business Highlights:
- Completed our merger with Holicity, Inc. and began publicly trading on the Nasdaq.
- Closed our PIPE transaction led by accounts owned and managed by BlackRock.
- Added
$464 million to our balance sheet (net of fees) via merger and PIPE transactions. - NASA awarded Astra the Time-Resolved Observations of Precipitation Structure and Storm Intensity with a Constellation of Smallsats (TROPICS), a three-launch mission to observe and analyze the impact of tropical storms.
- Awarded a multi-launch contract from
Planet Labs , one of the leading small satellite companies focused on Earth Observation. - Began expansion of our
Alameda factory to 350,000 square feet, a tripling of current capacity. - Added to Astra’s leadership team with several executive-level and proven leaders from companies such as Apple, Tesla, Blue Origin, IBM, and
SpaceX . - Acquired Apollo Fusion, one of the leading propulsion engines in the market, which expands our total addressable market to mid-Earth, geosynchronous, and lunar orbits.
- Announced Space Force will be our first commercial launch customer during a sixteen-day window beginning
August 27, 2021 . - Awarded the Orbital Services Program (OSP)-4 contract from the Rocket Systems Launch Program (RSLP) of the Space Force. This agreement positions Astra to compete for several launches over the next 9 years.
- Announced Spire as a customer with plans to begin launching next spring.
- Welcomed new board members
Michèle Flournoy , a former Under Secretary of Defense for Policy underPresident Obama , andLisa Nelson , a former high-level finance executive at Microsoft, to join Astra’s board and partner with current independent directors,Scott Stanford ,Mike Lehman andCraig McCaw , to advise Astra.
Second Quarter 2021 Financial Highlights:
- GAAP Net Loss was
$(31.3) million for the three months endedJune 30, 2021 . - Adjusted Net Loss* was
$(23.1) million for the three months endedJune 30, 2021 . - Adjusted EBITDA* of
$(21.4) million for the three months endedJune 30, 2021 . - Capital expenditures totaled
$8.5 million for the three months endedJune 30, 2021 . - Cash, cash equivalents and restricted cash totaled
$452.4 million as ofJune 30, 2021 .
_________
*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.
Third Quarter 2021 Outlook
As of
- Adjusted EBITDA* between
$(32.0) million and$(35.0) million . - Depreciation and Amortization between
$1.0 million and$1.3 million . - Stock-based compensation between
$6.0 million and$10.0 million . - Cash taxes of approximately zero.
- Basic shares outstanding between 255 million and 260 million.
- Capital expenditures between
$10.0 million and$15.0 million .
_________
*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.
Conference Call Information
In conjunction with this announcement, Astra will host a conference call for investors at
About
Astra’s mission is to improve life on Earth from space by creating a healthier and more connected planet. Astra’s first flight to space was within 4 years of its inception, making it the fastest company to reach space. Visit www.astra.com for more information.
Forward Looking Statements
Certain statements made in this press release are “forward-looking statements”. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from Astra’s expectations or projections , including the following factors, among others: (i) the failure to meet projected development and launch targets, including as a result of the decisions of governmental authorities or other third parties not within our control; (ii) changes in applicable laws or regulations; (iii) the ability of the Astra to meet its financial and strategic goals, due to, among other things, competition; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability; (v) the possibility that Astra may be adversely affected by other economic, business, and/or competitive factors; (vi) the effect of the COVID-19 pandemic on Astra and (vii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the
Explanation of Adjusted (or Non-GAAP) Financial Measures
This press release includes information about Adjusted Net Loss and Adjusted EBITDA (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with
We believe that both management and shareholders benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in planning, monitoring and evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.
We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between Astra and other companies in our industry. In making any comparisons to other companies in our industry, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable
Adjusted Net Loss differs from GAAP Net Loss in that it excludes the following items: (a) loss on the extinguishment of convertible notes, (b) stock-based compensation, and (c) non-recurring expenses. During the second quarter, our non-recurring expense related solely amounts paid in settlement of a claim.
Astra defines Adjusted EBITDA as Adjusted Net Loss, excluding the following items: (a) interest expense and interest income, (b) income tax expense and (c) depreciation and amortization. Astra is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(Unaudited, in thousands, except per share data) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
|||||||||||||||
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|||||
Results of Operations: |
||||||||||||||||
Research & Development |
$ |
10,458 |
|
$ |
7,221 |
|
$ |
22,435 |
|
$ |
15,532 |
|
||||
Sales & Marketing |
1,125 |
|
- |
|
1,189 |
|
- |
|
||||||||
General & Administrative |
18,318 |
|
3,861 |
|
30,931 |
|
6,983 |
|
||||||||
Total Operating Loss |
(29,901 |
) |
(11,082 |
) |
(54,555 |
) |
(22,515 |
) |
||||||||
Other Expenses |
||||||||||||||||
Interest Expense |
(678 |
) |
(1,253 |
) |
(1,213 |
) |
(2,252 |
) |
||||||||
Other Expense (Income) |
(718 |
) |
3,510 |
|
(718 |
) |
3,961 |
|
||||||||
Loss on extinguishment |
- |
|
- |
|
(133,783 |
) |
- |
|
||||||||
Loss before taxes |
(31,297 |
) |
(8,825 |
) |
(190,269 |
) |
(20,806 |
) |
||||||||
Income tax expense |
- |
|
- |
|
- |
|
- |
|
||||||||
Net Loss |
$ |
(31,297 |
) |
$ |
(8,825 |
) |
$ |
(190,269 |
) |
$ |
(20,806 |
) |
||||
Basic and Diluted Loss per Share |
||||||||||||||||
Weighted Average basic and diluted shares - Class A |
20,035 |
|
6,353 |
|
18,132 |
|
6,317 |
|
||||||||
Loss per share |
$ |
(0.47 |
) |
$ |
(0.16 |
) |
$ |
(2.93 |
) |
$ |
(0.38 |
) |
||||
Weighted Average basic and diluted shares - Class B |
46,722 |
|
48,898 |
|
46,784 |
|
48,475 |
|
||||||||
Loss per share |
$ |
(0.47 |
) |
$ |
(0.16 |
) |
$ |
(2.93 |
) |
$ |
(0.38 |
) |
|
|||||||||
Condensed Consolidated Balance Sheets |
|||||||||
(Unaudited, in thousands) |
|||||||||
|
|
||||||||
Summary Balance Sheet Data: |
|||||||||
Assets: |
|||||||||
Cash and Cash Equivalents |
$ |
447,456 |
$ |
10,611 |
|
||||
Restricted cash |
4,931 |
- |
|
||||||
Inventories |
1,832 |
649 |
|
||||||
Prepaid and other current assets |
5,377 |
485 |
|
||||||
Total current assets |
459,596 |
11,745 |
|
||||||
Property, plant and equipment, net |
29,326 |
24,069 |
|
||||||
Right-of-use asset |
9,603 |
- |
|
||||||
Trademark |
3,200 |
- |
|
||||||
Other non-current assets |
76 |
77 |
|
||||||
Total assets |
$ |
501,801 |
$ |
35,891 |
|
||||
Liabilities and Stockholders Deficit: |
|||||||||
Accounts payable |
$ |
6,180 |
$ |
2,474 |
|
||||
Operating lease obligation, current portion |
1,649 |
- |
|
||||||
Accrued expenses and other current liabilities |
5,505 |
4,390 |
|
||||||
Long-term debt, current portion |
4,850 |
41,132 |
|
||||||
Long-term debt, current portion due to related parties |
- |
10,503 |
|
||||||
Total current liabilities |
18,184 |
58,499 |
|
||||||
Long-term debt |
- |
7,286 |
|
||||||
Warrant liabilities |
56,786 |
- |
|
||||||
Operating lease obligation, net of current portion |
7,681 |
- |
|
||||||
Other non-current liabilities |
2,136 |
1,685 |
|
||||||
Total liabilities |
84,787 |
67,470 |
|
||||||
Total temporary equity |
- |
108,829 |
|
||||||
Total stockholders equity (deficit) |
417,014 |
(140,408 |
) |
||||||
Total liabilities, temporary equity and stockholders equity (deficit) |
$ |
501,801 |
$ |
35,891 |
|
|
|||||||||||||||
Summary Cash Flow Data: |
|||||||||||||||
(Unaudited, in thousands) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
(in thousands, except per share data) |
|
|
|||||||||||||
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Summary Cash Flow Data: |
|||||||||||||||
Cash used in |
$ |
(20,978 |
) |
$ |
(8,600 |
) |
$ |
(34,655 |
) |
$ |
(19,778 |
) |
|||
Capital Expenditures |
(8,472 |
) |
(280 |
) |
(8,796 |
) |
(1,454 |
) |
|||||||
Free Cash Flow (non-GAAP) |
(29,450 |
) |
(8,880 |
) |
(43,451 |
) |
(21,232 |
) |
|||||||
Cash used in investing activities |
(8,472 |
) |
(280 |
) |
(11,996 |
) |
(1,454 |
) |
|||||||
Cash provided by financing activities |
459,289 |
|
5,364 |
|
488,427 |
|
22,341 |
|
Reconciliation of GAAP to Non-GAAP |
|||||||||||||||
(in thousands except per share data) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
|
|
||||||||||||||
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
GAAP Net Loss |
$ |
(31,297 |
) |
$ |
(8,825 |
) |
$ |
(190,269 |
) |
$ |
(20,806 |
) |
|||
Loss on extinguishment |
- |
|
- |
|
133,783 |
|
- |
|
|||||||
Stock based compensation |
7,444 |
|
141 |
|
17,777 |
|
513 |
|
|||||||
Non-recurring expenses |
750 |
|
- |
|
750 |
|
- |
|
|||||||
Adjusted Net Loss |
(23,103 |
) |
(8,684 |
) |
(37,959 |
) |
(20,293 |
) |
|||||||
Interest Expense, net |
678 |
|
1,253 |
|
1,213 |
|
2,252 |
|
|||||||
Income tax expense |
- |
|
- |
|
- |
|
- |
|
|||||||
Depreciation & Amortization |
1,030 |
|
808 |
|
1,918 |
|
1,664 |
|
|||||||
Adjusted EBITDA |
$ |
(21,395 |
) |
$ |
(6,622 |
) |
$ |
(34,828 |
) |
$ |
(16,377 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005850/en/
Investor Relations:
dane@astra.com
cbass@marketstreetpartners.com
Press Contact:
kati@astra.com
Source: