Tempe, Ariz. (May 15, 2017) – VirTra, Inc. (OTCQX: VTSI), (the “Company”), a leading provider of judgmental use of force simulators and firearms training simulators, today announced its financial results for the first quarter ended March 31, 2017. The financial statements are available on VirTra’s website and here.
First Quarter 2017 Financial Highlights:
• Total revenue of $4.2 million
• Gross profit of $2.4 million
• Gross profit margin of 58%
• Net income of $0.4 million, or $0.03 and $0.02 per basic and diluted share, respectively
• Adjusted EBITDA of $0.6 million
“We are pleased with the start of our fiscal year, where we delivered revenue of $4.2 million and net income of $0.4 million, while at the same time booking new orders of $4.9 million, a record for any first quarter in our history,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “While our first quarter revenues did not exceed last year’s record amount, they increased sequentially by approximately $1.2 million from the fourth quarter of 2016. We are encouraged by our record level of new orders received during the first quarter of 2017 and the traction that we continue to receive in both the domestic and international markets based on our ongoing investment in sales and marketing. As a result, year-to-date in 2017, we have secured more new business from the top 50 law enforcement agencies in the United States than at any other time in our past.”
Financial Results for the Three Months Ended March 31, 2017
Total revenue was $4.2 million for the first quarter of 2017, compared to $6.2 million for the record first quarter of 2016. The year-over-year decline primarily resulted from recognizing $2.7 million in revenue on a single international contract during the first quarter of 2016, which was not repeated in this year’s first quarter.
Gross profit was $2.4 million for the first quarter of 2017, compared to $4.1 million for the first quarter of 2016.
Gross profit margin for the first quarter of 2017 was 58%, compared to 66% for the first quarter of 2016. The year-overyear decrease in gross profit margin was primarily due to product and service mix and the lower amount of system sales.
Operating expenses were $2.0 million for the first quarter of 2017, compared to $1.7 million in the first quarter of 2016. The higher expenses were primarily due to increases in employee costs, higher professional fees and expenses, and increased spending in research and development and sales and marketing, as compared to the prior year’s first quarter.
Operating income for the first quarter of 2017 was $0.5 million, compared to operating income of $2.4 million in the first quarter of 2016. The decline in operating income was primarily due to the lower revenue and gross profit margin, combined with the higher operating expenses.
Net income was $0.4 million for the first quarter of 2017, or $0.02 per diluted share, compared to net income of $2.4 million, or $0.14 per diluted share for the prior year’s first quarter.
Adjusted EBITDA was $0.6 million for the first quarter of 2017, compared to adjusted EBITDA of $2.5 million for the first quarter of 2016.
Stockholders’ equity increased to $6.9 million at March 31, 2017, compared to $6.4 million at December 31, 2016.
Cash and cash equivalents were $4.6 million at March 31, 2017, compared to $3.7 million at December 31, 2016.
The Company had essentially no outstanding debt at March 31, 2017.
The Company will host a live webcast later today at 12:30 p.m. Eastern time/9:30 a.m. local time, to discuss these results. As part of the webcast, management will be answering questions received in advance by email. Individuals interested in listening to the webcast live via the Internet may do so by visiting the Company’s website at www.VirTra.com. A webcast replay will be available for 60 days.
VirTra is a global leading provider of the world’s most realistic and effective judgmental use of force simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
This press release includes certain information that may constitute forward-looking statements which are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forwardlooking information. Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Counsel
Financial Profiles, Inc.