CHANDLER, Ariz. — December 1, 2022 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, has appointed Alanna Boudreau as chief financial officer, effective December 1, 2022.
Boudreau brings over 20 years of experience in managerial, financial and operating functions, most recently serving as group controller for The 600 Group PLC (AIM: SIXH), a publicly listed U.K.-based global industrial laser company. At The 600 Group, she oversaw all accounting activities for a business with over $30 million of revenues that included two manufacturing plants and offices in Orlando, Florida and United Kingdom. Prior to The 600 Group, Boudreau was an Accounting Manager at AdventHealth, a leading U.S.-based nonprofit health care company, where she oversaw accounting functions for 12 locations. Boudreau graduated Summa Cum Laude from the New York Institute of Technology, receiving a Bachelor of Science in Business Administration. She received an MBA from the University of Phoenix.
“Alanna’s familiarity in public company reporting requirements, combined with her extensive management experience and complementary skillset, will allow her to immediately contribute to the Company in a meaningful way,” said John Givens, co-CEO of VirTra. “Additionally, she comes highly recommended from prior professional history within the management team, which coupled with her over two decades of experience give us confidence that VirTra will benefit greatly from her addition.”
Boudreau commented: “I look forward to joining VirTra and hitting the ground running as CFO. This is an excellent opportunity to join a rapidly growing company that is making a meaningful difference in the efficacy of law enforcement and military training with world-class solutions. I am eager to work alongside the executive team in this role to continue the Company’s strong track record of financial performance.”
About VirTra
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.
Investor Relations Contact:
Matt Glover or Jeff Grampp
949-574-3860
Foxx to Replace Outgoing Chief Financial Officer Judy Henry
TEMPE, Ariz. — December 11, 2020 — VirTra, Inc. (NASDAQ: VTSI), a global provider of training simulators for the law enforcement, military, educational, and commercial markets, has appointed Marsha J. Foxx as Interim Vice President Chief Accounting Officer to replace outgoing Chief Financial Officer Judy Henry, who, as previously announced in November 2020, will be retiring this month.
Foxx brings to VirTra over 20 years of experience in financial operations, business transformation strategies, and all phases of the accounting processes and controls. Throughout her career, she has held numerous leadership positions in a variety of industries including technology and healthcare. Prior to joining VirTra, she served as vice president of finance for Cerebus Cyber Sentinel, a cyber security startup, global executive vice president finance at Column5 Consulting Group, and chief financial officer of Tactical Air Services, a civilian-based military aggressor flight training company. Foxx holds a Bachelor of Science in Business Administration, majoring in Accounting, from Central Michigan University, and has been a Certified Public Accountant (CPA) for over 25 years.
“Marsha brings to VirTra two decades of financial expertise and executive leadership that are directly complementary to our organization,” said Bob Ferris, chairman and chief executive officer of VirTra. “We believe the hands-on proficiency she’s developed in finance and accounting, as well as her strategic thinking, will be of great value as we look to continue scaling the business. On behalf of our entire team, I’d like to welcome Marsha to VirTra.”
Judy Henry, retiring chief financial officer added, “I’m grateful to have had the opportunity to help ensure a seamless transition of responsibilities. As Marsha takes over leading VirTra’s financial operations, I remain confident that the whole team, with her assistance, will continue building on VirTra’s prior successes.”
Marsha J. Foxx commented, “Given the company’s long history of consistent growth and the operational progress of the past year, it’s a particularly exciting time to be joining VirTra. I look forward to leveraging my expertise and working in tandem with the rest of the management team to help lead the company through the next phase of expansion.”
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving 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 or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860
Board of Directors Initiates Search for a Permanent Replacement
TEMPE, Ariz. — November 13, 2020 — VirTra, Inc. (NASDAQ: VTSI),a global provider of training simulators for the law enforcement, military, educational, and commercial markets, today announced that its chief financial officer, Judy Henry, intends to retire in December 2020. As a result, VirTra’s board of directors has initiated a search for a permanent replacement.
“It has been my pleasure and privilege to serve as VirTra’s CFO and to be part of the company’s growth,” said Judy Henry. “To make the transition as smooth as possible, I intend to stay on through early December 2020. I’m very grateful to have been part of VirTra these last four years and especially proud of everything the team has accomplished during that time. These accomplishments have culminated in the company being in its strongest position ever, and I am confident the team will be able to continue building on this success in the years ahead.”
Bob Ferris, chairman and chief executive officer of VirTra, commented, “On behalf of our entire organization, I’d like to thank Judy for the numerous contributions she made to VirTra during a critical stage of our company’s evolution. She’s been an integral part of our leadership team, and we’re very grateful to have benefitted from her expertise. We wish her well, and her accomplishments at VirTra will long be remembered.”
Jeffrey Brown, chairman of VirTra’s audit committee, added, “We’re fortunate to have Judy stay on as VirTra’s CFO into December to help us with the transition period. The board of directors has already initiated a search for a permanent replacement to help lead VirTra through its next phase of growth.”
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving 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 or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860
TEMPE, Ariz. — August 13, 2019 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of training simulators for the law enforcement, military, educational and commercial markets, reported results for the second quarter and six months ended June 30, 2019. The unaudited financial statements and notes thereto are available on VirTra’s website and here.
Second Quarter 2019 and Recent Highlights:
- Received two new orders for driving simulators from the Department of State for Pakistan in support of U.S. Foreign Assistance programs, with a total contract value of approximately $782,000
- Expanded simulator deployments across Southern California with recent contract wins and installations in four separate departments for a cumulative value of nearly $780,000
- Received a follow-on order from the U.S. Department of Homeland Security for Customs and Border Protection (CBP) valued at approximately $630,000 for annual service agreements
- Engaged JL O’Connell & Associates, a highly regarded business development consultancy, to expand VirTra’s sales and marketing efforts in the military market
Second Quarter and Six Month 2019 Financial Highlights:
| All figures in millions, except per share data | Q2 2019 | Q2 2018 | % Δ | YTD 2019 | YTD 2018 | % Δ |
| Total Revenue | $3.05 | $8.71 | -65% | $6.11 | $12.00 | -49% |
| Gross Profit | $1.52 | $5.74 | -74% | $3.32 | $8.01 | -59% |
| Gross Margin | 49.6% | 66.0% | -25% | 54.3% | 66.7% | -19% |
| Net (Loss)/ Income | ($0.63) | $2.11 | N/A | ($0.95) | $2.03 | N/A |
| Diluted Earnings per Share (EPS) | ($0.08) | $0.26 | N/A | ($0.12) | $0.25 | N/A |
Management Commentary
“In the second quarter of 2019, we continued implementing new business expansion initiatives, which will take time to mature, but which we believe will increase our competitive advantage, expand and diversify our revenue base, and ultimately, create a more stable and robust business,” said Bob Ferris, Chairman and CEO of VirTra. “While our financial results for the second quarter were lighter than we would have liked, we made significant progress against our strategic, long-term growth plan.
“Due to our traditional hardware sales model and the way in which revenue is recognized, our business has historically experienced fluctuations from quarter-to-quarter. From a financial perspective, the second quarter was an extreme example of these quarterly oscillations. Our year-over-year results were exacerbated by a tough comparison from the second quarter of 2018, in which we recognized a $4.2 million order for simulators and accessories from one of our federal customers. This was further exacerbated by several installation postponements from multiple customers in Q2 2019. However, the good news is our new sales are robust as evidenced by our record backlog of approximately $10.1 million.
“Nevertheless, we made substantial operational progress this past quarter generating new business, increasing our sales pipeline, and pursuing our strategic initiatives. We expanded our presence in Southern California and recently received two new orders from the Department of State for driving simulators. We’ve also made progress building our recurring revenue base by securing multiple STEP contracts. We hired an experienced consultant to help propel our sales and marketing efforts in the massive military market. In addition, we’ve strengthened VirTra’s brand by expanding our relationships with strategic partners, performing a record number of product demonstrations for potential customers, and exhibiting at a variety of trade shows.
“Ultimately, we remain encouraged by the operational success we’ve experienced in the first half of the year and are confident that the strategic initiatives we’ve implemented will have positive, material impacts on our business over the long-run. We’re excited about what the future holds for VirTra as we work diligently to scale these new programs, improve the quality of training worldwide, and grow our business over the next several quarters and years.”
Second Quarter 2019 Financial Results
Total revenue was $3.1 million compared to $8.7 million in the second quarter of 2018. The decrease in total revenue was due to a reduction in the number of simulators and accessories delivered compared to the same period in 2018.
Gross profit was $1.5 million (49.6% of total revenue) compared to $5.7 million (66.0% of total revenue) in the second quarter of 2018. The decrease in gross profit was primarily due to differences in the product mix and the quantity of systems, accessories, and services sold.
Net operating expense was $2.4 million compared to $2.8 million in the second quarter of 2018. The decrease in net operating expense was due to reduced selling, general and administrative expenses (“SG&A”), costs for labor, benefits, professional services, and public company expense compared to the second quarter of 2018.
Loss from operations was $883,000 compared to income from operations of $3.0 million in the second quarter of 2018.
Net loss totaled $634,000, or $(0.08) per diluted share, compared to net income of $2.1 million, or $0.26 per diluted share in the second quarter of 2018.
Adjusted EBITDA loss, a non-GAAP financial measure, was $604,000 compared to positive adjusted EBITDA of $3.2 million in the same period a year-ago.
As of June 30, 2019, cash and cash equivalents and certificates of deposit totaled $3.3 million compared to $4.6 million at the end of the prior quarter and working capital was $4.8 million.
Financial Results for the Six Months Ended June 30, 2019
Total revenue was $6.1 million compared to $12.0 million in the first six months of 2018. The decrease in total revenue was due to a reduction in the number of simulators and accessories delivered compared to the same period in 2018.
Gross profit was $3.3 million (54.3% of total revenue) compared to $8.0 million (66.7% of total revenue) in the first six months of 2018. The decrease in gross profit was primarily due to differences in the product mix and the quantity of systems, accessories, and services sold.
Net operating expense was $4.7 million compared to $5.2 million in the first six months of 2018. The decrease in net operating expense was due to reduced SG&A, costs for labor, benefits, professional services, and public company expense compared to the same period in 2018.
Loss from operations was $1.3 million compared to income from operations of $2.8 million in the first six months of 2018.
Net loss totaled $947,000, or $(0.12) per diluted share, compared to net income of $2.0 million, or $0.25 per diluted share in the comparable period a year ago.
Adjusted EBITDA loss was $883,000 compared to positive adjusted EBITDA of $3.1 million in the first six months of 2018.
Deferred revenue totaled $3.9 million as of June 30, 2019, compared to $2.9 million as of June 30, 2018. The current portion of deferred revenue was $2.7 million as of June 30, 2019, compared to $1.9 million as of June 30, 2018. The increase in deferred revenue was primarily due to customer deposits received on new orders, new service agreements, and new STEP agreements received.
Conference Call
VirTra management will hold a conference call today (August 13, 2019) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chairman and CEO, Bob Ferris, and CFO, Judy Henry, will host the call, followed by a question and answer period.
U.S. dial-in number: 888-428-7458
International number: 862-298-0702
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 VirTra’s IR team at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of VirTra’s website.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 27, 2019.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 52547
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving 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 loss to Adjusted EBITDA is provided in the following table:
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 SEC. You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the Securities and Exchange Commission 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 or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860
FINANCIALS FOLLOWING
