CHANDLER, Ariz. — November 29, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, has debuted at the I/ITSEC 2023 its integration of VBS4 and BlueIG, offering added capability to its simulators. VBS (Virtual Battlespace) is a whole-Earth virtual and constructive simulation platform currently being used in over 60 countries and more than 300 integrators, supporting the training of hundreds of thousands of military personnel worldwide.
By integrating VBS4 into the VirTra Operating System (VOS), VirTra can provide military personnel with a rich, complex environment for training. VBS4 software allows organizations to create virtual battlespaces at any geospecific location for terrain building, mission planning, ground-based scenarios, and thorough debriefing.
VirTra’s primary objective in implementing the VBS4 software is to furnish military personnel with flexible, fast, and easily integrated virtual training experiences that prepare them for real-world decision-making. With its speed and flexibility, VBS4 can instantly integrate with classroom installations, and it has options for non-gun training and drone operations, ensuring that real-world scenario training is possible regardless of location.
“The integration of Bohemia Interactive Simulations Virtual Battlespace (VBS) into the VirTra product line enables military users of VBS to leverage their investment in models, terrain, scenarios and other integrated components instantly for part task and collective training” said VirTra CEO John Givens. “The combination of our V3 capture studio capabilities with the VBS integration enhances the ability of our existing law enforcement customers to effortlessly create intricate scenarios, putting the tools required for scenario creation in the hands of officers.”
VBS4 seamlessly integrates with VOS across all of VirTra’s simulators, making it usable regardless of the client’s simulator model. Starting in 2024, simulators with VBS4 integration will be made available to new customers, while existing VOS clients will have the option to upgrade their simulators.
Pete Morrison, Chief Commercial Officer at Bohemia Interactive Simulations, said, “VirTra is a pioneer in cutting-edge training simulations, driving innovation in their domain. We at BISim are proud to support VirTra with our VBS series of products, given their best-of-breed capability for marksmanship training and more. We look forward to further collaboration and success.”
About Bohemia Interactive Simulations
Bohemia Interactive Simulations (BISim) is a global software company at the forefront of simulation training solutions for defense and civilian organizations. We use the latest game-based technology and a large, experienced in-house team of engineers to develop high-fidelity, cost-effective training and simulation software products and components for defense applications. Learn more about the company at bisimulations.com/company
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
Quarterly Revenue Increases 54% Year-Over-Year to $7.6 Million
Quarterly Net Income Increases by $2.4 Million to $1.6 Million
CHANDLER, Ariz. — November 14, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, reported results for the third quarter ended September 30, 2023. The financial statements are available on VirTra’s website and here.
Third Quarter 2023 Financial Highlights:
- Total revenue increased 54% to $7.6 million
- Gross profit increased 114% to $5.4 million, or 71% of total revenue
- Net income increased by $2.4 million to $1.6 million
- Adjusted EBITDA increased to $2.9 million
- Cash and cash equivalents of $17.2 million at September 30, 2023
Nine Month 2023 Financial Highlights:
- Total revenue increased 42% to $27.9 million
- Gross profit increased 67% to $18.3 million, or 65% of total revenue
- Net income increased by $5.0 million to $5.6 million
- Adjusted EBITDA increased to $9.4 million
Third Quarter and Nine Month 2023 Financial Highlights:
Management Commentary
“Building on our record-breaking first half, we’ve made further strides in improving our operations and sales activity this quarter, resulting in a robust 54% increase in quarterly revenue,” said VirTra CEO John Givens. “These ongoing improvements, with significant developments made in the third quarter, such as enhancing our production facility and focusing on our machine shop processes and equipment upgrades, are set to continue bearing fruit in future quarters. These efforts have not only accelerated manufacturing but also improved product quality, ultimately leading to higher customer satisfaction. With our significantly improved business operations, we are directing our attention towards increasing sales productivity, and we’re already realizing early progress.
“The changes we’ve made to our sales methodology, compensation, and territory structuring are set to deliver substantial results in the near term and will continue to compound over the coming years. As part of these sales enhancements, we’ve expanded our team to boost customer success and enable our salesforce to focus on driving new business. This concerted effort, combined with our sustained success in the law enforcement market and the solid early progress achieved in key military contracts, positions VirTra for strong, sustained growth in the long term.
“Furthermore, our focus on developing industry-leading technology continues to unlock long-term value. In Q3, we unveiled V-XR®, our extended reality training solution, to our product portfolio. This strategic addition prioritizes the development of essential interpersonal skills crucial for law enforcement professionals, enabling them to navigate sensitive situations, de-escalate conflicts, and build trust with their communities. By integrating soft skills training into our curriculum, we aim to provide law enforcement professionals with the tools and knowledge needed for more meaningful and effective community engagement. Emphasizing empathy, communication, and cultural awareness, V-XR® sets a new industry standard and maintains a competitive price point, making it accessible to law enforcement agencies, large and small. Strong pre-order demand signals its potential as a gateway to larger simulator sales. We’ve also streamlined aspects of our simulators, ensuring easier access to control computers while reducing assembly costs and time. These enhancements, combined with ongoing content updates, further solidify our position as the market leader in training technology.”
Third Quarter 2023 Financial Results
Total revenue increased 54% to $7.6 million from $4.9 million in the third quarter of 2022. The increase in revenue was driven by a continued improvement in sales strategy and continued demand for training solutions.
Gross profit increased 114% to $5.4 million from $2.5 million in the third quarter of 2022. Gross profit margin was 71%, an increase compared to 51% in the third quarter of 2022.
Net operating expense was $3.7 million, compared to $3.6 million in the third quarter of 2022. The slight increase in net operating expense was associated with additional staffing and the opening of our Orlando facility.
Operating income increased by $2.8 million to $1.7 million from $(1.1) million in the third quarter of 2022.
Net income was $1.6 million, or $0.15 per diluted share (based on 10.9 million weighted average diluted shares outstanding), an improvement compared to net income of $(0.8) million, or $(0.07) per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the third quarter of 2022.
Adjusted EBITDA, a non-GAAP metric, increased to $2.9 million from $(0.5) million in the third quarter of 2022.
Nine Months Ended September 30, 2023 Financial Results
Total revenue increased 42% to $27.9 million from $19.7 million in the first nine months of 2022. The increase in revenue was driven by record first-half performance and continued improvement in sales strategy.
Gross profit increased 67% to $18.3 million from $10.9 million in the first nine months of 2022. Gross profit margin was 65%, an increase compared to 56% in the first nine months of 2022. The increase in gross profit margin was primarily due to the aforementioned increase in revenue while maintaining cost of sales in line with 2022 levels.
Net operating expense was $11.2 million, compared to $10.3 million in the first nine months of 2022. The increase in net operating expense was primarily driven by an increase in salaries and benefits resulting from the addition of new staff, expenses for the new Orlando office, as well as an increase in R&D spend, and the implementation expense related to the launch of the Company’s new ERP system.
Operating income jumped to $7.1 million in the first nine months of 2023, a $6.4 million increase from $0.7 million in the prior year period.
Net income was $5.6 million, or $0.51 per diluted share (based on 10.9 million weighted average diluted shares outstanding), an improvement compared to net income of $0.6 million, or $0.05 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the first nine months of 2022.
Adjusted EBITDA, a non-GAAP metric, increased to $9.4 million from $1.7 million in the first nine months of 2022.
Financial Commentary
“The third quarter was highlighted by sustained revenue growth and significant profitability improvements,” said VirTra CFO Alanna Boudreau. “Our 71% gross margins reflect our commitment to managing cost of sales as we drive business expansion. Although we experienced a temporary slowdown in our bookings during Q3, partly due to a brief government shutdown, we expect them to rebound and accelerate as our sales initiatives gain further traction. Our pipeline continues to grow while our backlog remains heathy and will continue to provide our year-over-year revenue increase in the fourth quarter. Based on our excellent performance in the first nine months, we are very confident in surpassing our year-end targets for 2023, and we anticipate continued revenue and profitability expansion as we move into 2024.”
Conference Call
VirTra’s management will hold a conference call today (November 14, 2023) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chief Executive Officer John Givens, Chief Financial Officer Alanna Boudreau, and Executive Chairman Bob Ferris will host the call, followed by a question-and-answer period.
U.S. dial-in number: 1-877-407-9208
International number: 1-201-493-6784
Conference ID: 13742019
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through November 28, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13742019
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
– Financial Tables to Follow –
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CONDENSED BALANCE SHEETS
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CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
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CONDENSED STATEMENTS OF CASH FLOWS
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On November 8, VirTra and IADLEST officially announced “Taskforce Santa.” This initiative will provide a V-100 simulator to an agency that would be unable to purchase one otherwise.
The chosen agency will not only receive the simulator itself, but its full suite of training software, NCP-certified coursework, a carrying case for the screens and projector, and a full year of service and warranty. The goal is to provide a true Christmas gift to an agency without adding any stress or concerns.
You can read IADLEST’s press release here. If you would like to nominate a deserving agency, download the flyer and nomination form. It is only one page and will not take a long time to complete.
CHANDLER, Ariz. — November 1, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, will hold a conference call on Tuesday, November 14, 2023 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the third quarter ended September 30, 2023. Financial results will be issued in a press release prior to the call.
VirTra management will host the presentation, followed by a question-and-answer period.
Date: Tuesday, November 14, 2023
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: 1-877-407-9208
International dial-in: 1-201-493-6784
Conference ID: 13742019
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through November 28, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13742019
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
CHANDLER, Ariz. — October 31, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, today announces the induction of its Founder and Executive Chairman, Bob Ferris, into the National Center for Simulation (NCS) Modeling & Simulation (M&S) Hall of Fame. This prestigious recognition, bestowed upon Ferris for his groundbreaking work and continued thought leadership in the simulation industry, reflects VirTra’s legacy of innovation and its commitment to continually improving training effectiveness. Ferris was inducted alongside other 2023 inductees at a ceremony on October 12, 2023. The video of the Hall of Fame Induction Ceremony can be viewed here.
Ferris is widely acknowledged as a trailblazer in the early adoption of virtual reality (VR) technology for educational and entertainment purposes, with his pioneering efforts dating back to the 1990s. He is sometimes recognized as a “Grandfather of VR” for his visionary contributions to the field. Initially, his company, Ferris Productions, focused on immersive VR for other markets, however, a pivotal moment arose when Ferris was inspired to leverage this emerging technology to support first responders, including police and the military, in the aftermath of the 9/11 attacks. This transformative decision led to the evolution of Ferris Productions into VirTra, a company that now extends its support to military and law enforcement agencies across 40 countries worldwide. VirTra has garnered an industry-leading reputation for its innovative solutions in training simulation.
The M&S Hall of Fame represents a very rare and highly regarded achievement. As per information available on the NCS website, the NCS’s objective is ‘to honor, recognize, and protect the legacy of individuals who have significantly contributed to advancements in modeling and simulation.’ Ferris’s inclusion in the 10th Hall of Fame class is a testament to his esteemed position within the simulation community. After the upcoming induction, the Wall of Fame in the Orange County Convention Center’s South Concourse will feature 39 simulation pioneers to now include Ferris.
“It is a great honor to be inducted into the NCS M&S Hall of Fame alongside a group of individuals who have shaped the foundations of the simulation industry,” said Executive Chairman Bob Ferris. “I am confident in the trajectory of simulation training to improve and save lives with certified curriculum and ever advancing technology. It has been rewarding beyond words to dedicate my career to giving every advantage possible for those courageous men and women who, daily, put themselves in harm’s way to serve their communities and country.”
For a comprehensive list of all Hall of Fame members, including Bob Ferris, and access to their biographies, please click here to visit the NCS website.
As VirTra marks its three decades in business, the Company remains focused on a future characterized by continued growth, enhanced market presence and industry-leading solutions for the simulation and training industry.
About National Center for Simulation (NCS)
The NCS is a non-profit trade association supporting and expanding the M&S community and is committed to promoting M&S technology expansion, education and workforce development and providing business development assistance to its members. Learn more at www.simulationinformation.com.
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
CHANDLER, Ariz. — October 24, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, today announced the appointment of Tony Cianflone as Vice President of Sales, effective October 23, 2023.
With over 25 years of professional sales leadership experience, Tony Cianflone brings a proven track record of success to his new role at VirTra. His expertise lies in sales leadership, sales process optimization, talent acquisition, training, and the development of teams and individuals to consistently exceed sales quotas. Tony’s career includes driving revenue growth for multibillion-dollar corporations as well as contributing to the successful sales of three startup companies. He has a remarkable history of leading high-performing sales teams and organizations.
Prior to joining VirTra, Tony held leadership positions at CR Bard, a leading medical device corporation specializing in vascular access devices, and subsequently, he led a team at Intuitive Surgical, a pioneer in minimally invasive surgical robots. Cianflone graduated with a Bachelor of Science degree in Economics from the State University of New York College at Fredonia.
“Tony’s extensive experience and leadership in driving revenue growth align perfectly with our strategy,” said VirTra CEO John Givens. “His appointment represents a critical next step in our strategic sales plan as we work to surpass our year-over-year bookings performance and unlock the true potential of VirTra’s technology. Tony will be instrumental in strengthening our sales efforts and expanding our presence in the law enforcement and military markets.”
Cianflone added: “With strong industry tailwinds and clear direction, it is a great time to be joining VirTra. I am honored to be working with an accomplished team as we move the company forward.”
As part of its comprehensive sales strategy, VirTra is actively restructuring sales territories and expanding its sales team to tap into new markets and seize growth opportunities. These strategic sales initiatives, combined with a continued focus on content creation and new product development, position VirTra for heightened success moving forward.
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
CHANDLER, Ariz. — October 17, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, today officially launched its pioneering Extended Reality (XR) training system, V-XR®, at the International Association of Chiefs of Police (IACP) Conference. VirTra has come full circle in its training capability by adding a comprehensive soft skills trainer that transcends boundaries, expanding VirTra’s impact beyond traditional law enforcement applications.
V-XR®, powered by VirTra’s innovative technology, revolutionizes training by bringing adaptive soft skills training to our traditional law enforcement and military clients as well as private security, hospital security, educational institutions, and criminal justice academies. The V-XR® is not a “shoot-don’t-shoot” marksmanship trainer. This transformative platform focuses on essential skills such as communication, de-escalation, and the recognition of mental health conditions, including autism spectrum disorders.
Additionally, V-XR® sets itself apart from other solutions through its flexible modes: Educate, Experience, and Engage. Each mode delivers transferable information on multiple topics for comprehensive training. “Educate” provides an enhanced lesson plan with voice, images, and videos. “Experience” allows users to participate in a scenario in a virtual V-300® on a curved screen. The final is “Engage,” which allows interaction with volumetric video characters.
Unlike traditional virtual reality solutions, V-XR® utilizes characters captured using VirTra’s pioneering volumetric studio, the V3™. With three-dimensional human characters, users can now discern nuanced facial expressions and subtle micro-cues that once eluded computer-generated imagery (CGI).
“The introduction of V-XR® marks a strategic leap forward for VirTra, reaffirming our position as leaders in the evolution of training methodologies,” said VirTra Chief Executive Officer John Givens. “This milestone extends beyond V-XR® itself – it encompasses the synergies it creates with our existing, screen-based simulators. This launch reinforces our dedication to innovation and excellence in training solutions. V-XR® enhances realism, integrates soft skills development, and diversifies training scenarios, providing a comprehensive and cost-effective training ecosystem that surpasses the expectations of our valued customers.”
VirTra’s new XR solution represents a true paradigm shift in training, offering flexibility, adaptability, and a small physical footprint to empower agencies and units of all sizes, providing a scalable, modular, and customizable platform that redefines the possibilities of training.
Discover the capabilities of V-XR® by visiting VirTra’s webpage at www.virtra.com/overview/v-xr.
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
CHANDLER, Ariz. — September 19, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, will hold its 2023 Annual Meeting of Shareholders virtually on Monday, October 23, 2023 at 4:30 p.m. Eastern Time (2:30 p.m. Mountain Time) and will be accessible via a live webcast here.
Shareholders of record at the close of business on August 28, 2023, will be entitled to vote. Proxy materials and voting instructions can be found on the investor relations section of the company’s website and here.
About VirTra
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
Ferris and Givens to Continue Guiding VirTra Following Successful Track Record as Co-CEOs
CHANDLER, Ariz. — August 15, 2023 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, announced that John Givens will assume the role of the Company’s Chief Executive Officer (CEO). Bob Ferris, the Company’s founder and current chairman and co-CEO will transition to the position of Executive Chairman of the Board effective today.
Since joining the Company’s board of directors in 2020 and subsequently being named co-CEO in 2022, Givens has played a pivotal role in driving VirTra’s rapid progress. His leadership has led to vast operational improvements and the implementation of key customer expansion initiatives that have resulted in record revenue and profitability in the first half of 2023. Givens’ extensive knowledge and established reputation in the simulation and military markets are invaluable assets to VirTra. His previous successes of quickly growing a company in this industry indicate strong promise for VirTra’s future endeavors as he assumes the role of sole CEO.
John Givens brings a wealth of unique industry experience from his time as the founder of Bohemia Interactive Simulations Inc. (BISim). Since its inception in 2010 under Givens’ leadership, BISim rapidly evolved to become one of the most widely utilized simulation products across all branches of the U.S. and allied military forces. This success was underscored by BAE Systems plc’s acquisition of BISim in 2022 for a noteworthy $200 million. Givens has been honored with several prestigious awards, notably the simulation industry’s first ever ‘Pioneer Award.’ This accolade was awarded by the trainees and industry peers and underscores his extraordinary contributions that have enhanced the training and effectiveness of U.S. and overseas military personnel.
“I am honored and humbled to carry forward the innovative legacy that Bob has established at VirTra,” said CEO John Givens. “Our collaboration has already led to significant advancements, a testament to what we can accomplish together. As I assume the role of CEO, I am mindful of the solid foundation laid by Bob’s thirty years of dedication and visionary leadership. As we look forward, we share an unwavering commitment to VirTra’s growth and optimization. We aren’t satisfied at all with the status quo and have plans to reach new milestones to make our recent progress pale in comparison.”
Ferris founded the Company in 1993 as Ferris Productions. Following the terrorist attacks on September 11, 2001, he shifted the company’s focus to simulation training to support law enforcement, first responders and the warfighters. The Company’s name was changed to ‘VirTra’ and since then Ferris has led VirTra to become the leader in effective virtual reality and simulator training in the law enforcement and military markets.
Ferris stated, “At the heart of our efforts at VirTra is the goal of saving and improving lives through our highly effective product line. Beginning as the smallest effective simulation company in our industry in 1993 to becoming the largest in 2023 is beyond my dreams. I am tremendously proud of the work we have done over the three decades as a company to support the men and women who serve and protect. I wish I could adequately express the vast number of people who have contributed to VirTra’s success and the immense effort that each person has provided. I have always been, and continue to be, just a small piece of VirTra. I wanted John to push VirTra to new heights, to find areas where we could improve, and then execute multiple improvement plans at the same time. John exceeded my high expectations; he blew past the limits of what I thought was possible. His instrumental role in enhancing every aspect of our operations, opening our state-of-the-art Orlando facility, and achieving two back-to-back $10+ million quarters is just a taste of what is possible. As I transition to my new role, VirTra is in excellent hands under John’s leadership, and I look forward to supporting him as he propels VirTra to new levels of success.”
About VirTra
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
Record Quarterly and First Half Revenue of $10 Million and $20 Million, Up 29% and 38% Year-Over-Year, Respectively
Quarterly Net Income Increases by $239,000 to $1.0 Million
CHANDLER, Ariz. — August 14, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, reported results for the second quarter ended June 30, 2023. The financial statements are available on VirTra’s website and here.
Second Quarter 2023 Financial Highlights:
- Total revenue increased 29% to a record $10.3 million
- Gross profit increased 25% to $5.9 million, or 57% of total revenue
- Net income increased by $0.2 million to $1.0 million
- Adjusted EBITDA increased to $2.6 million
- Cash and cash equivalents of $13.3 million at June 30, 2023
Six Month 2023 Financial Highlights:
- Total revenue increased 38% to $20.4 million
- Gross profit increased 53% to $12.9 million, or 63% of total revenue
- Net income increased by $2.6 million to $4.0 million
- Adjusted EBITDA increased to $6.5 million
Second Quarter and Six Month 2023 Financial Highlights:
Management Commentary
“Led by record-breaking revenue in the double-digit millions during the first two quarters of 2023, we have achieved the best bottom-line results in our 30-year history,” said Bob Ferris, chairman and co-CEO of VirTra. “This exceptional financial performance is a testament to the effectiveness of our internal process improvements and streamlined operations. To further solidify our market leadership and expand revenue streams, we continue to actively pursue additional product and content development initiatives to enhance VirTra’s already powerful training capabilities.”
John Givens, co-CEO of VirTra, added: “Our topline results reflect the transformation we have made in fulfillment efficiency, which serves as a key indicator of our scaling abilities and our long-term operational capabilities. We are now applying that same focus and tenacity by taking proactive measures to increase our bookings and maximize our market potential, both domestically and internationally. Our sales enhancement initiatives are already underway and coupled with our unwavering commitment to product quality and a customer-centric approach, we are advancing along our strategic roadmap while further optimizing our business operations to even greater profitability and efficiency in the years ahead.”
Second Quarter 2023 Financial Results
Total revenue increased 29% to $10.3 million from $8.0 million in the second quarter of 2022. The increase in revenue was driven by an improvement in operations which helped to move through backlog and ship orders at a record pace.
Gross profit increased 25% to $5.9 million from $4.7 million in the second quarter of 2022. Gross profit margin was 57%, a decrease compared to 59% in the second quarter of 2022. The decrease in gross margins resulted from one-time inventory adjustments made when we went live with our new ERP system, which had the effect of increasing the cost of sales in Q2 2023.
Net operating expense was $4.0 million, compared to $3.7 million in the second quarter of 2022. The increase in net operating expense was associated with salary and benefits increase and the Orlando office expenses.
Operating income increased by $0.9 million to $1.9 million from $1.0 million in the second quarter of 2022.
Net income was $1.0 million, or $0.09 per diluted share (based on 10.9 million weighted average diluted shares outstanding), an improvement compared to net income of $0.8 million, or $0.07 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the second quarter of 2022.
Adjusted EBITDA, a non-GAAP metric, increased to $2.6 million from $1.3 million in the second quarter of 2022.
Six Months Ended June 30, 2023 Financial Results
Total revenue increased 38% to $20.4 million from $14.8 million in the first six months of 2022. The increase in revenue was driven by improvements in operations, which helped the Company to move through the backlog and ship orders at a record pace.
Gross profit increased 53% to $12.9 million from $8.4 million in the first six months of 2022. Gross profit margin was 63%, an increase compared to 57% in the first half of 2022. The increase in gross profit margin was primarily due to the aforementioned increase in revenue while maintaining cost of sales in line with 2022 levels.
Net operating expense was $7.5 million, compared to $6.7 million in the first six months of 2022. The increase in net operating expense was primarily due to an increase in salaries and benefits due to additional staff and the expenses for the new Orlando office, as well as an increase in R&D spend.
Operating income jumped to $5.4 million, a $3.6 increase from $1.8 million in the prior year period.
Net income was $4.0 million, or $0.36 per diluted share (based on 10.9 million weighted average diluted shares outstanding), an improvement compared to net income of $1.4 million, or $0.13 per diluted share (based on 10.9 million weighted average diluted shares outstanding), in the first half of 2022.
Adjusted EBITDA, a non-GAAP metric, increased to $6.5 million from $2.3 million in the first six months of 2022.
Financial Commentary
“The strong first half results underscore the successful execution of our growth and profitability initiatives,” said CFO Alanna Boudreau. “Achieving a robust gross profit margin of 63%, we exemplify our dedication to maintaining cost of sales while effectively selling a favorable mix of simulators, accessories, and services. Our record net income of $4.0 million and adjusted EBITDA of $6.5 million demonstrate the leverage in our model and our ability to effectively manage expenses. As we progress into the second half of the year with a markedly lower backlog of $16.4 million, we’ve clearly proven our new and enhanced ability to promptly fulfill orders. Simultaneously, it presents a challenge that encourages us to continue operating efficiently as we proactively optimize our sales pipeline. These efforts, combined with the impressive first half performance, set us well on pace to exceed our targets for the year.”
Conference Call
VirTra’s management will hold a conference call today (August 14, 2023) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s chairman and co-CEO, Bob Ferris, co-CEO John Givens and Chief Financial Officer Alanna Boudreau, will host the call, followed by a question-and-answer period.
U.S. dial-in number: 1-877-407-9208
International number: 1-201-493-6784
Conference ID: 13739497
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 28, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13739497
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
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