A company 's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA , pronounced / ˈ iː b ɪ t d ɑː , - b ə -, ˈ ɛ -/ ) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. It is derived by subtracting from revenues all costs of the operating business (e.g. wages, costs of raw materials, services ...) but not decline in asset value, cost of borrowing and obligations to governments. Although lease have been capitalised in the balance sheet (and depreciated in the profit and loss statement) since IFRS 16 , its expenses are often still adjusted back into EBITDA given they are deemed operational in nature.
43-758: Virgin Orbit was a company within the Virgin Group that provided launch services for small satellites . The company was formed in 2017 as a spin-off of Richard Branson 's Virgin Galactic space tourism venture to develop and market the LauncherOne rocket, which had previously been a project under Virgin Galactic. LauncherOne was a two-stage launch vehicle, air-launched from a Boeing 747 carrier aircraft, designed to deliver 300 kg of payload to low Earth orbit. On December 30, 2021, Virgin Orbit underwent
86-724: A SPAC merger with NextGen Acquisition Corp, and became a publicly traded company (symbol VORB ) at the NASDAQ stock exchange. Upon listing Virgin Orbit was valued at $ 3.7 billion. LauncherOne made six flights from 2020 to 2023, resulting in four successes and two failures. After the second failure in January 2023 and amid an inability to secure additional financing, the company laid off staff and suspended operations in March 2023, finalizing Chapter 11 bankruptcy auction on May 22, 2023. Remaining assets were divested for $ 36 million, less than 1% of
129-834: A 747-400 launch aircraft at Toowoomba Wellcamp Airport in Queensland with a demonstrator launch planned for 2024. In the end, no launches from Australia were performed. Virgin Orbit considered a mission to Mars in 2022. In the end, Virgin Orbit did not perform any interplanetary missions; especially the Mars mission did not happen. Virgin Group Virgin Group is a British multinational venture capital conglomerate founded by Richard Branson and Nik Powell in February 1970. Virgin Group's date of incorporation
172-442: A business has fundamental problems with profitability. A positive EBITDA, on the other hand, does not necessarily mean that the business generates cash. This is because the cash generation of a business depends on capital expenditures (needed to replace assets that have broken down), taxes, interest and movements in working capital as well as on EBITDA. While being a useful metric, one should not rely on EBITDA alone when assessing
215-640: A complex structure that contains elements of a generic conglomerate and a keiretsu , and sometimes it simply licences its brand. Examples of licensing are Virgin Records and Virgin Media , which are owned by Universal Music Group and Liberty Global respectively. In mid-May 2013, the Virgin Group expressed its intention to seek out opportunities in Australia's healthcare industry to consolidate on
258-473: A more accurate reflection of financial performance for high-growth, capital-intensive businesses. Originally, Malone used EBITDA to attract lenders and investors, positioning it as a key element of his growth strategy. By focusing on EBITDA, he showcased a company's capacity to generate cash flow while effectively utilizing leveraged debt and reinvesting profits to minimize taxes—an approach that defined his investment philosophy. EBITDA regained popularity during
301-455: A successful mission. On January 9, 2023, LauncherOne failed to orbit despite a nominal drop from the aircraft, with Virgin Orbit citing "an anomaly" with the upper stage. The failed payload included nine satellites from seven different customers. This was Virgin Orbit's first attempted launch from the UK at Spaceport Cornwall ; previous launches were from Mojave Air and Space Port . Cosmic Girl
344-491: Is a non- GAAP metric that has been introduced following the global COVID-19 pandemic . EBITDAC is a special case of adjusted EBITDA. On 13 May 2020, the Financial Times mentioned that German manufacturing group Schenck Process was the first European company to use the term in their quarterly reporting. The company had added back €5.4m of first-quarter 2020 profits that it said it would have made were it not for
387-459: Is listed as 1989 by Companies House , who class it as a holding company ; however, Virgin's business and trading activities date back to the 1970s. The net worth of Virgin Group was estimated at £3 billion as of early 2023. The name "Virgin" arose in 1970 when Richard Branson and Nik Powell formed a record shop , first as mail order and in 1971 with a physical store. They considered themselves virgins in business. Branson has described
430-412: Is to assess a business on the metric EBITDA - Capital Expenditures. EBITDA margin refers to EBITDA divided by total revenue (or "total output", "output" differing from "revenue" according to changes in inventory). Earnings before interest, taxes, and amortization ( EBITA ) is derived from EBITDA by subtracting Depreciation. EBITA is used to include effects of the asset base in the assessment of
473-461: Is useful to get a view of the profitability of the operating business alone, as the cost items ignored in the EBITDA computation are largely independent from the operating business: The interest payments depend on the financing structure of the company, the tax payments in the relevant jurisdictions as well as the interest payments, the depreciation on the asset base (and depreciation policy chosen), and
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#1732782922912516-788: The Alcantara Launch Center in Brazil . On June 27, 2022, Virgin Orbit announced a Brazil-based subsidiary, Virgin Orbit Brasil Ltda, to facilitate launches from the Alcantara Launch Center. The Brazil-based launch center is just two degrees south of the Equator , allowing launches to almost every orbital inclination . In the end, no launches from Brazilia took place. In September 2022, Virgin Orbit signed an agreement with Wagner Corporation to base
559-553: The COVID-19 pandemic in early 2020, Virgin Orbit announced it was a partner with the University of California Irvine and the University of Texas at Austin in a new venture to build simplified mechanical ventilators — specifically "bridge ventilators" for partially recovered patients and patients not in intensive care — to address the critical global shortage of ventilators. They were granted an emergency use authorization by
602-474: The Pacific Ocean . The rocket was dedicated to the memory of the mother of Richard Branson , founder of Virgin - Eve Branson , who died from COVID-19 on January 8, 2021. On June 30, 2021, LauncherOne successfully delivered its first commercial payload to space. On January 13, 2022, LauncherOne successfully delivered seven cubesats for three customers into orbit. On July 2, 2022, LauncherOne flew
645-436: The dot-com boom , gaining popularity as a benchmark for assessing the financial health of rapidly expanding, technology companies. EBITDA is widely used when assessing the performance of a company. EBITDA is useful to assess the underlying profitability of the operating businesses alone, i.e. how much profit the business generates by providing the services, selling the goods etc. in the given time period. This type of analysis
688-509: The "Foodpreneur" food and drink focused start-up competition. Winners received mentorship from Branson, legal support, and brand counseling. The 2014 winners included Proper Beans, Killer Tomato, Sweetpea Pantry, and Sweet Virtues. In 2015, winners were given the opportunity to pitch Target Corporation buyers in the US. The 2015 winners included Pip & Nut, Double Dutch Drinks, Harry Bromptons, Cauli Rice, and Mallow and Marsh. Only one start-up
731-456: The "V" in the logo as an expressive tick , representing the Virgin seal of approval. The original logo from 1973 was a completely different design intended to be used for the record company that was founded by Richard Branson and Nik Powell . The logo was designed by British science-fiction artist and designer Roger Dean . According to Richard Branson in interviews and on the Virgin website,
774-708: The Group's Australian fitness centres. The Group also runs over 100 National Health Service (NHS) services in the United Kingdom and the healthcare division of medical services group Assura after entering the British healthcare industry in 2011. Virgin Group announced the establishment of Virgin Voyages on 4 December 2014 with financial backing from Bain Capital . The cruise line would be led by CEO Tom McAlpin , would have two new large ships built and be based in
817-596: The Miami/Fort Lauderdale area. Virgin StartUp is the Virgin Group's non-profit company, helping entrepreneurs across the UK to start, fund and scale their business. In 2013, Sir Richard visited Boxpark in Shoreditch, London, to launch the new organisation, revealing that he wanted to support anyone that had the same dreams and ambitions that he did as a young boy: “It was £300 from my mum that sparked
860-514: The SEC requires that companies registering securities with it (and when filing its periodic reports) reconcile EBITDA to net income . The original concept of EBITDA was pioneered in the 1970s by billionaire investor John Malone . Early in his career, Malone developed EBITDA as a tool to evaluate the cash-generating ability of telecom companies. He advocated for its use over traditional metrics like Earnings per share (EPS) , arguing that EBITDA offered
903-657: The US Food and Drug Administration (FDA) in April 2020. Virgin Orbit agreed to launch space flights from Spaceport Cornwall in a project partly funded by the UK Space Agency . Virgin Orbit's first and only UK launch took place on January 9, 2023. The rocket failed to reach orbit. In April 2021, the Brazilian Space Agency disclosed the company among those selected to operate orbital launches from
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#1732782922912946-483: The Virgin adventure 40 years ago. Today, young people need that same help and I believe Virgin StartUp will provide it – with access to early capital, strong mentorship, advice and promotion.” The organisation became a delivery partner for the UK Government's Start Up Loans Company, providing loan finance of between £500 and £25,000, advice, and mentoring to thousands of start-ups across the country. In 2016, it
989-402: The amortisation on takeover history with its effect on goodwill among others. EBITDA is widely used to measure the valuation of private and public companies (e.g. saying that a certain company trades at x times EBITDA, meaning that the company value as expressed through its stock price equates to x times its EBITDA). In its attempt to display EBITDA as a measure of the underlying profitability of
1032-564: The balance sheet allows for a better comparison between the energy companies. Operating income before depreciation and amortization ( OIBDA ) refers to an income calculation made by adding depreciation and amortization to operating income . OIBDA differs from EBITDA because its starting point is operating income, not earnings. It does not, therefore, include non-operating income, which tends not to recur year after year. It includes only income gained from regular operations, ignoring items like FX changes or tax treatments. Historically, OIBDA
1075-1031: The company raised $ 228 million, less than half than the $ 483 million it expected to raise. Virgin Orbit held an "opening bell" ceremony at Nasdaq on January 7, 2022, to celebrate going public; it opened at $ 10 per share. When the SPAC merger was announced in August 2021, Virgin Orbit aimed to be profitable on an EBITDA -basis by end of Q4 2024. The company said it had about $ 300 million in active contracts, and expected its rocket launch business to grow to about 18 launches in 2023. The company expected to have about $ 15 million in revenue in 2021, with an EBITDA loss of $ 156 million; however, it aimed at further revenue growth, reaching $ 2.1 billion in revenue by 2026. The company's third-quarter financial report, issued in November 2022, showed cash on hand of $ 71.2 million, $ 30.9 million in revenue, and an adjusted EBITDA loss of $ 42.9 million for
1118-480: The company's Long Beach facility, manufacturing and tooling assets for $ 16 million, Launcher purchased the company's Mojave test site for $ 3 million, and the Cosmic Girl aircraft was sold to Stratolaunch Systems for $ 17 million. An additional $ 3.8 million in assets were sold to Firefly Aerospace on June 15. Virgin Orbit intellectual property is for sale. VOX Space was a subsidiary of Virgin Orbit that
1161-414: The company's valuation upon IPO. On May 25, 2020, LauncherOne's first launch failed to reach orbit. On January 17, 2021, LauncherOne became the first Virgin Orbit vehicle to reach orbit, successfully deploying 10 CubeSats into Low Earth Orbit for NASA on its final demonstration mission. LauncherOne was deployed from the left (port) wing of a retrofitted Boeing 747 , 33,000 feet (10 kilometers) above
1204-650: The country. The NHS bodies settled out of court with a £328,000 payout to Virgin Care, resulting in some controversy. More than 100,000 people backed a petition calling on the company to stop "dragging the NHS through the courts". EBITDA Though often shown on an income statement , it is not considered part of the Generally Accepted Accounting Principles (GAAP) by the SEC , and hence
1247-610: The event are cited as both capital management and technical. Virgin Orbit recorded a loss of US$ 139.5 million for the first nine months of 2022. Matthew Brown Companies, a Texas and Hawaii based venture capital firm led by Dallas-based Matthew Brown, a businessman, made a $ 200 million tender for the company but ultimately fell through. Board members had approved golden parachute plans for executives previously. The company declared Chapter 11 bankruptcy on April 4, 2023. Assets were divested to three major bidders in May 2023: Rocket Lab acquired
1290-938: The head offices for other Virgin Group owned companies, such as Virgin Red, Virgin Unite, Virgin StartUp, Virgin Limited Edition & Big Change. Previously, the Virgin Group were based at the Porchester Building in the London Borough of Tower Hamlets , The Battleship Building in Paddington , a district of the City of Westminster and at The School House in Brook Green , in the London Borough of Hammersmith and Fulham . The Virgin Group of companies have
1333-460: The hit caused by 'missing contribution margin and cost absorption reduced by direct financial state support received majorly in China so far'. Other companies picked up this EBITDAC measure as well, claiming the state-mandated lockdowns and disruptions to the supply chains distort their true profitability, and EBITDAC would show how much these companies believe they would have earned in the absence of
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1376-666: The more recent signature logo, introduced in 1978, was based on one that designer Ray Kyte scribbled on a napkin after a design meeting. Virgin Group has its headquarters in Whitfield Studios in Soho , a district of the City of Westminster . The group moved to this location in November 2024, the space is renowned for its music history as a creative hub for musical legends such as the Rolling Stones, Madonna, Spice Girls & Amy Winehouse. Whitfield Studios also houses
1419-440: The operating business, EBITDA is often adjusted for extraordinary expenses, i.e. expenses that the company believes do not occur on a regular basis. These adjustments can include bad debt expenses, any legal settlements paid, costs for acquisitions, charitable contributions and salaries of the owner or family members. The resulting metric is called adjusted EBITDA or EBITDA before exceptionals . A negative EBITDA indicates that
1462-421: The performance of a company. The biggest criticism of using EBITDA as a measure to assess company performance is that it ignores the need for capital expenditures in its assessment. However, capital expenditures are needed to maintain the asset base which in turn allows for generating EBITDA. Warren Buffett famously asked, "Does management think the tooth fairy pays for capital expenditures?". A fix often employed
1505-407: The period. The company's backlog of binding contracts fell by 12%, to $ 143 million, compared to the end of the prior quarter, and forecast that it would only have three launches in 2022, compared to a forecast of four to six, made earlier in 2022. On March 16, 2023, Virgin Orbit announced a pausing of operations and furloughing of nearly its entire staff, while seeking additional funding. Causes for
1548-418: The profitability of a business. In that, it is a better metric than EBITDA, but has not found widespread adoption. Earnings Before Interest, Depreciation, Amortization and Exploration ( EBIDAX ) is a non- GAAP metric that can be used to evaluate the financial strength or performance of oil, gas or mineral company. Costs for exploration are varied by methods and costs. Removal of the exploration portion of
1591-698: Was about to start testing its Cosmic Girl launch platform. A few months prior to going public, Virgin Orbit was owned by Richard Branson's Virgin Group and the Emirati state-owned Mubadala , which had invested about $ 1 billion in Virgin Orbit through August 2021. In August 2021 when the SPAC merger was announced, Virgin Orbit estimated it needed $ 420 million in cash, starting in the second half of 2021, to reach positive cash flow in 2024. When it went public in December 2021, after completing its SPAC merger,
1634-492: Was announced winner of the 2017 Foodpreneur prize, The Snaffling Pig Co ., who won a six-week rental space at Intu Lakeside, the retail center with the highest foot traffic in the U.K. The group's health business received significant media coverage over its legal battle with NHS groups. It sued clinical commissioning groups (CCGs) in Surrey after it lost out on an £82 million contract to provide children's health services across
1677-449: Was awarded European Regional Development Funding and subsequently launched Ready, Steady, Grow with Virgin StartUp, a programme of support aimed at start-ups that were ready to grow. A year later, it launched the UK's first equity-based crowdfunding accelerator programme, Crowdboost. By 2018, the organisation had supported over 11,000 UK-based entrepreneurs, with over £35m in pre-seed funding. In 2014, Branson and Virgin StartUp launched
1720-616: Was created in 2020. The company supplied launch services for the US military , sometimes referred to as the " national security launch market". The company used the Virgin Orbit LauncherOne launch vehicle . The president as of July 2022 was Mark Baird , who took over on August 17, 2021. In April 2020, VOX Space was awarded a US$ 35 million contract for three launches of 44 cubesats for US Space Force . The first of these launches succeeded on July 2, 2022. In response to
1763-421: Was created to exclude the impact of write-downs resulting from one-time charges, and to improve the optics for analysts comparing to previous period EBITDA. An example is the case of Time Warner , who shifted to divisional OIBDA reporting subsequent to write downs and charges resulting from the company's merger into AOL . Earnings before interest, taxes, depreciation, amortization, and coronavirus ( EBITDAC )
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1806-493: Was spun off, Virgin Galactic , continued to focus on two other capabilities: human suborbital spaceflight operations and advanced aerospace design, manufacturing, and testing. In October 2019, Virgin Orbit announced that Matthew Stannard was joining as a pilot on a three-year contract. Stannard had previously served in the Royal Air Force as a test and evaluation pilot notably on Typhoon jets . At that time Orbit
1849-523: Was the name of the modified Boeing 747-400 that Virgin Orbit used to launch its rockets. In 2022, Virgin Orbit announced plans to acquire additional 747s with the ability to transport the rocket and ground support equipment internally. Based in Long Beach, California , at its founding in 2017, Virgin Orbit had more than 300 employees led by president Dan Hart, a former vice president of government satellite systems at Boeing . The company from which it
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