CHANDLER, Ariz. — May 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, reported results for the first quarter ended March 31, 2023. The financial statements are available on VirTra’s website and here.

 

First Quarter 2023 Financial Summary:

  • Total revenue increased 48% to a record $10.0 million
  • Gross profit increased 88% to $6.9 million, or 69% of total revenue
  • Net income increased by $2.4 million to $2.9 million
  • Adjusted EBITDA increased to $4.0 million
  • Improved strong balance sheet with cash and cash equivalents of $14.3 million at March 31, 2023

 

First Quarter 2023 Financial Highlights:

 

Management Commentary

“Coming off our 17th consecutive year of revenue growth in 2022, in Q1 we worked from our record backlog to deliver VirTra’s first ever quarterly revenue performance in the double-digit millions,” said Bob Ferris, chairman and co-CEO of VirTra. “Simultaneously, our actions to improve internal processes and streamline the overall business have significantly enhanced the efficiency of our operations, leading to the strongest bottom-line performance in the Company’s history. To build on our market-leading position and expand our revenue pathways, we are pursuing additional product and content development to make VirTra’s training capabilities even stronger.”

John Givens, co-CEO of VirTra added: “We remain committed to optimizing our business operations and driving profitability while ramping up our sales efforts as we move into the second quarter and beyond. While we are making strides in clearing our backlog and fulfilling orders more efficiently, we recognize that there are still many untapped opportunities in the market, both domestic and international. To capitalize on this potential, we are implementing sales initiatives to maximize our market penetration and prioritize areas with the greatest growth potential. We are focused on continued success in the coming quarters as we execute our growth strategies.”

 

First Quarter 2023 Financial Results

Total revenue increased 48% to $10.0 million from $6.8 million in the first quarter of 2022. The increase in revenue was the result of the deliveries of two major government contracts and one large international contract.

Gross profit increased 88% to $6.9 million from $3.7 million in the first quarter of 2022. Gross profit margin, defined as total revenue less cost of sales, was 69.3%, an improvement compared to 54.6% in the first quarter of 2022. The increase in gross profit was primarily due to the increased sales achieved while maintaining cost of sales in line with 2022 levels. The increased gross margins resulted from the favorable product mix of systems, accessories and services sold in the quarter.

Net operating expense was $3.5 million, compared to $3.0 million in the first quarter of 2022. The increase in net operating expenses was due to increased R&D expenses additional costs related to the Orlando facility and one-time costs in payroll and related expenses.

Operating income increased by $2.8 million to $3.5 million from $0.7 million in the first quarter of 2022.

Net income was $2.9 million, or $0.27 per diluted share (based on 10.9 million weighted average diluted shares outstanding), compared to net income of $0.6 million, or $0.05 per diluted share (based on 10.8 million weighted average diluted shares outstanding), in the first quarter of 2022.

Adjusted EBITDA, a non-GAAP metric, increased to $4.0 million from $1.0 million in the first quarter of 2022.

 

Financial Commentary

“Our first quarter financial results represent vast year-over-year improvements and demonstrate the success of our ongoing efforts to drive growth and profitability,” said CFO Alanna Boudreau. “We achieved a strong gross profit margin of 69%, a reflection of our focus on maintaining cost of sales while effectively selling a favorable mix of simulators, accessories, and services. Our record net income of $2.9 million and adjusted EBITDA of $4.0 million highlight our ability to execute even amidst operational transformations. These strong results put us on track to meet our financial targets for 2023 and position us well for continued success in the law enforcement and military simulator markets.”

 

Conference Call

VirTra’s management will hold a conference call today (May 15, 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: 13738125

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 simultaneously and is 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 May 29, 2023.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13738125

 

About VirTra, Inc.

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 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 Tom Colton

Gateway Group, Inc.

VTSI@gatewayir.com

949-574-3860

 

VirTra, Inc.

Condensed Balance Sheets

 

VirTra, Inc.

Condensed Statements of Operations

(Unaudited)

 

VirTra, Inc.

Condensed Statements of Cash Flows

(Unaudited)

CHANDLER, Ariz. — May 1, 2023 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, and firearms training simulators for the law enforcement and military markets, will hold a conference call on Monday, May 15, 2023 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the first quarter ended March 31, 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: Monday, May 15, 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: 13738125

 

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 May 29, 2023.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13738125

 

About VirTra, Inc.

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 and Tom Colton

Gateway Group, Inc.

VTSI@gatewayir.com

949-574-3860

VirTra Reports First Quarter 2022 Financial Results

Total Revenue Increased 52% Year-Over-Year, Driving 44% Year-Over-Year Increase in Gross Profit

 

CHANDLER, Ariz. — August 11, 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, reported results for the first quarter ended March 31, 2022. The financial statements are available on VirTra’s website and here.

 

First Quarter 2022 Highlights:

  • Backlog as of March 31, 2022 totaled $21.0 million, up 30% year-over-year
  • Received first order for multiple systems associated with a standing offer VirTra was awarded by the Government of Canada
  • Bookings totaled $6.4 million
  • Working capital surplus of $25.9 million as of March 31, 2022, including cash and cash equivalents of $15.7 million

 

First Quarter 2022 Financial Summary:

  • Total revenue increased 52% to $6.8 million
  • Gross profit increased 44% to $3.7 million, or 55% of revenue
  • Net income was $577,000
  • Adjusted EBITDA increased 33% to $997,000

 

First Quarter 2022 Financial Highlights:

 

Management Commentary

“We started off 2022 continuing our positive momentum from 2021, generating year-over-year revenue and adjusted EBITDA growth of 52% and 33%, respectively, while gross margins expanded from full-year 2021 levels to 55%,” said Bob Ferris, chairman and co-CEO of VirTra. “We realized strong growth in multiple markets with government revenue increasing 38% year-over-year and commercial revenue, which includes the military market, increasing almost five-fold from the prior year period to $1.6 million.

“Backlog grew 30% year-over-year to $21.0 million but declined from our prior quarter record of $23.1 million as we had a strong quarter of deliveries as demonstrated by our revenue growth and was impacted by $1.8 million in budgetary cuts and government de-funding that removed prior bookings. Nonetheless, our sales pipeline remains robust as we continue to pursue attractive growth opportunities, which we expect will be further augmented by our new co-CEO, John Givens, who is actively leveraging his extensive experience and relationships in the military simulation industry to further penetrate this significant market for VirTra.”

 

First Quarter 2022 Financial Results

Total revenue increased 52% to $6.8 million from $4.4 million in the first quarter of 2021. The increase in total revenue was due to an increase in the number of simulators and accessories completed, delivered and revenue recognized compared to the same period in 2021.

Gross profit increased 44% to $3.7 million (55% of total revenue) from $2.6 million (58% of total revenue) in the first quarter of 2021. The increase in gross profit dollars was due to the increase in total revenue, while the decrease in gross profit margin was due to increased costs and the product mix of systems, accessories and services sold in the period.

Operating expenses increased 48% to $3.0 million from $2.0 million in the first quarter of 2021. The increase in operating expenses was mainly due to increases in payroll, marketing, research and development, and professional services expenses.

Income from operations increased to $711,000 from $564,000 in the first quarter of 2021.

Net income totaled $577,000, or $0.05 per diluted share, compared to $655,000, or $0.08 per diluted share, in the first quarter of 2021.

Adjusted EBITDA increased to $997,000 from $751,000 in the first quarter of 2021.

At March 31, 2022, backlog totaled approximately $21.0 million, compared to $23.1 million at December 31, 2021 and $16.1 million at March 31, 2021.

Cash and cash equivalents totaled $15.7 million at March 31, 2022 compared to $19.7 million at December 31, 2021. The sequential decrease in cash and cash equivalents was primarily due to increases in accounts receivable, inventory and unbilled revenues, partly offset by increases in trade accounts payable, accrued compensation and deferred revenues. Net working capital surplus at March 31, 2022 was $25.9 million, essentially unchanged from December 31, 2021.

 

Second Quarter 2022 Earnings Release and Conference Call Timing

VirTra plans to release its second quarter 2022 results ended June 30, 2022 on August 19, 2022 before market open. Management will hold a conference call August 19, 2022 at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) to discuss results for the first quarter 2022 and second quarter 2022. VirTra’s chairman and co-CEO, Bob Ferris, co-CEO John Givens and chief accounting officer, Marsha Foxx, 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 code: 13732200

 

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 the company’s website.

A replay of the conference call will be available after 1:00 p.m. Eastern time on the same day through September 2, 2022.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13732200

 

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.

 

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 Jeff Grampp, CFA

Gateway Group, Inc.

VTSI@gatewayir.com

949-574-3860

 

 

VirTra, Inc.

Condensed Balance Sheets

 

VirTra, Inc.

Condensed Statements of Operations

(Unaudited)

 

VirTra, Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

Sales Momentum Drives 9% Increase in Revenue and $11.3 Million Backlog

TEMPE, Ariz. — May 12, 2020 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of training simulators for the law enforcement, military, educational and commercial markets, reported results for the first quarter ended March 31, 2020. The financial statements are available on VirTra’s website and here.

First Quarter 2020 and Recent Highlights:

• Received $1.6 million IDIQ (indefinite delivery/indefinite quantity) contract from the Department of State for the Republic of Mexico for use-of-force simulators and police driving simulators
• Received $1.1 million order through new distributor in Europe to provide European law enforcement and military personnel with industry-leading technology and training methods
• Released new V-VICTA (VirTra Virtual Interactive Coursework Training Academy) training curriculum to help law enforcement communicate and interact more effectively and positively with individuals with autism
• Launched a new website catered to both law enforcement and military to better market products to prospective customers and increase sales
• Secured contracts with new customers in Belleview, Orlando, and other police departments and received maintenance renewal and upgrades with existing customers, including multiple across Australia
• Attended 23 events, demos and tradeshows in the first ten weeks of the year

Management Commentary

“During the first quarter of 2020, we continued to build upon the momentum generated in the second half of last year, despite impediments that arose at the end of March,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “Financially, the quarter was highlighted by a 9% increase in revenues to $3.3 million from the first quarter of last year. Operationally, the quarter was highlighted by a $1.1 million order from a new distributor in Europe, which is helping expand VirTra’s reputation as the leader in simulation training to more countries abroad. In the last two weeks of March as stay-at-home policies were instituted, some customers requested to delay delivery and installation of orders, which cut into our first quarter results but contributed to our record $11.3 million backlog.

“Despite the uncertain COVID-19 macro environment, we have not seen evidence of sales declining or demand weakening as of today. However, out of an abundance of caution, we have taken prudent measures to fortify our balance sheet and ensure we have the necessary resources to continue executing against our strategic initiatives. Properly trained law enforcement and military personnel is integral to the security and well-being of everyone, and we plan to ensure our growing list of customers have access to the best simulation training available throughout 2020 and beyond.”

First Quarter 2020 Financial Results

Total revenue increased 9% to $3.3 million from $3.1 million in the first quarter of 2019. The increase in total revenue was due to increases in sales of simulators, accessories, curriculum and training.

Gross profit decreased 11% to $1.6 million (47.8% of total revenue) from $1.8 million (59.0% of total revenue) in the first quarter of 2019. The decrease in gross profit was due to increases in production staff to support larger volumes of sales in the future as well as product mix with varying quantity of systems, accessories and services sold.

Net operating expense decreased 7% to $2.1 million from $2.3 million in the first quarter of 2019. The decrease was mainly due to reduced selling, general and administrative costs for labor, benefits, travel, and professional services expense.
Loss from operations was $512,000, compared to a loss of $457,000 in the first quarter of 2019.

Net loss totaled $389,000, or $(0.05) per diluted share, compared to net loss of $313,000, or $(0.04) per diluted share, in the first quarter of 2019.

Adjusted EBITDA loss was $326,000, compared to a loss of $278,000 in the first quarter of 2019.

At March 31, 2020, backlog totaled approximately $11.3 million. At March 31, 2020, accounts receivable and unbilled revenues totaled approximately $5.2 million compared to $5.9 million at December 31, 2019, a decrease of $695,000. Cash and cash equivalents and certificates of deposit totaled $3.8 million at March 31, 2020.

Subsequent Events

On May 8, 2020, VirTra received approval for a $1.3 million Paycheck Protection Program (PPP) loan from Wells Fargo Bank under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan, which is administered through the Small Business Association (SBA), matures on May 8, 2022 and bears an interest rate of 1% per annum. In accordance with the Paycheck Protection Program, VirTra intends to use the funds for designated expenses, which may include payroll costs, group healthcare benefits, and other permitted expenses. Under the terms of the PPP loan, up to the entire amount of principal and accrued interest may be forgiven to the extent PPP loan proceeds are used for qualifying expenses. VirTra intends to use its entire PPP loan amount for designated qualifying expenses and to apply for forgiveness in accordance with the terms of the PPP loan. No assurance can be given that VirTra will obtain forgiveness of the PPP loan in whole or in part.

Conference Call

VirTra management will hold a conference call today (May 12, 2020) 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: 844-369-8770
International number: 862-298-0840

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 May 26, 2020.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 34580

About VirTra

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 income 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

VirTra, Inc. Condensed Balance Sheets

VirTra, Inc. Condensed Statements of Operations (Unaudited)

VirTra, Inc. Condensed Statements of Cash Flows (Unaudited)

TEMPE, Ariz. — May 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 first quarter ended March 31, 2019. The financial statements are available on VirTra’s website and here.

First Quarter 2019 and Recent Highlights:

  • In January 2019, the board of directors increased the company’s stock repurchase program from $1.0 million to $2.0 million; between January 1 and April 30, 2019, the company purchased an additional $318,000 of common stock
  • Launched Subscription Training Equipment and Partnership (STEP) program, allowing agencies to utilize VirTra’s products on a subscription basis, thereby increasing VirTra’s total addressable market and recurring revenue
  • Launched Driving Simulator product line and secured a $1.9 million, inaugural contract for driving simulators from the Department of State for the Republic of Mexico
  • Acquired simulated firearm technology patent portfolio to enhance its current product lineup of drop-in recoil kits with jamming as well as create new training equipment for both military and law enforcement simulation training
  • Launched the only accredited simulator training curriculum for high-risk vehicle stops
  • VirTra V-300 simulator and Threat-Fire™ used in joint behavioral study by the U.S. Army Research Laboratory, University of Pennsylvania, and University of California, Santa Barbara to measure interdependence among emotional reactivity, stress, and anxiety
  • Debuted new drop-in recoil kits for new weapons at the Shot Show in January 2019

First Quarter 2019 Financial Highlights:

All figures in millions, except per share data

Q1 2019

Q1 2018 % Δ Q1 2019 Q4 2018

% Δ

Total Revenue

$3.05

$3.29 -7% $3.05 $2.53

20%

Gross Profit

$1.80 $2.26 -20% $1.80 $0.96

88%

Gross Margin

59.0%

68.8% -14% 59.0% 37.8%

56%

Net Income (Loss)

($0.31)

($0.09) -265% ($0.31) ($1.06)

70%

Diluted Earnings per Share (EPS)

($0.04)

($0.01) -300% ($0.04) ($0.13)

69%

             

Management Commentary
“The first quarter of 2019 marked an important point in our company’s development, as we began implementing new strategic growth initiatives, which we believe will have a substantial positive impact on our business in the years to come,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “In the first quarter, we launched the STEP program, a subscription model for our products that lowers the barrier to entry for many customers, we introduced new curriculum for high-risk vehicle stops, and announced our new Driving Simulator product line for which we have already secured a $1.9 million contract with an existing customer. In addition to these exciting new initiatives, we strengthened our product offerings by acquiring key patents for drop-in recoil kits, along with bolstering our management team with the addition of industry veteran Steve Handel, who is now serving as our new VP of Program Management.

“From a financial perspective, we saw many sequential improvements in our results, including a 20% increase in revenue, an 88% increase in gross profit, and gross margins increasing to 59%, which is more in-line with our historical numbers. Our balance sheet continues to remain strong with nearly $4.6 million in cash, cash equivalents and CDs. During the first quarter, we repurchased 68,239 shares of common stock at an average cost of $3.82 per share and retired all outstanding treasury shares of our common stock. Subsequent to the quarter, we repurchased an additional 14,450 shares at an average cost of $3.97 per share. In addition, new bookings for the first quarter totaled $5.3 million and backlog increased to $9.0 million, which bodes well for our business and gives us confidence in our outlook that 2019 has the potential to be a strong year for VirTra.

“While the benefits of these new initiatives will take time to come to fruition, we are confident that they will be of great value to our business over the coming quarters and years. We believe that the additions of our new programs and our ever-improving product suite, combined with our strong balance sheet, mean that VirTra is now more flexible, dynamic, and in the best position in our company’s history to capture a greater share of our core law enforcement market, while also expanding into the military market. We believe that these positive changes ultimately will translate to greater value for our loyal shareholders and better training that saves lives. This is an exciting time at VirTra, and we look forward to building on our progress throughout the year.”

First Quarter 2019 Financial Results
Total revenue increased 20% to $3.1 million from $2.5 million in the prior quarter and decreased 7% from $3.3 million in the first quarter of 2018. The year-over-year decrease in total revenue was due to lower simulator and accessories sales, which were partially offset by increases in recurring extended warranty and other revenues.

Gross profit increased 88% to $1.8 million (59.0% of total revenue) from $1.0 million (37.8% of total revenue) in the prior quarter and decreased 20% from $2.3 million (68.8% of total revenue) in the first quarter of 2018. The year-over-year decrease in gross profit was primarily due to differences in the product mix and quantity of systems, accessories and services sold.

Net operating expense decreased 20% to $2.3 million from $2.8 million in the prior quarter and decreased 7% from $2.4 million in the first quarter of 2018. The decrease in net operating expense was due to reduced selling, general and administrative costs for labor, benefits, professional services, public company expense, research and development expenses and bad debt.

Loss from operations was $457,000 compared to a loss of $1.9 million in the prior quarter and a loss of $158,000 in the first quarter of 2018.

Net loss totaled $313,000, or $(0.04) per diluted share, compared to a loss of $1.1 million, or $(0.13) per diluted share, in the prior quarter and a loss of $86,000, or $(0.01) per diluted share, in the first quarter of 2018.

Cash and cash equivalents and certificates of deposit totaled $4.6 million at quarter end.

Adjusted EBITDA loss totaled $278,000 compared to a loss of $46,000 in the first quarter of 2018.

Conference Call
VirTra management will hold a conference call today (May 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: 877-407-8031
International number: 201-689-8031

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 May 27, 2019.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 48710

About VirTra
VirTra (NASDAQ: VTSI) is a global provider of 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 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.

###

Media Contact:
Susan Lehman
Slehman@virtra.com
510-599-6555

Investor Relations Contact:
Matt Glover or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860

FINANCIALS FOLLOWING



 

TEMPE, Ariz. — May 3, 2019 — VirTra, Inc. (NASDAQ: VTSI), a global provider of training simulators for the law enforcement, military, educational and commercial markets, will hold a conference call on Monday, May 13, 2019 at 4:30 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2019. Financial results will be issued in a press release prior to the call.

VirTra management will host the conference call, followed by a question and answer period.

Date: Monday, May 13, 2019
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in number: 877-407-8031
International number: 201-689-8031

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 Liolios 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 conference call will be available after 7:30 p.m. Eastern time on the same day through May 27, 2019.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 48710

About VirTra
VirTra (NASDAQ: VTSI) is a global provider of 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.

###

Media Contact:
Susan Lehman
Slehman@virtra.com
510-599-6555

Investor Relations Contact:
Matt Glover or Charlie Schumacher
VTSI@liolios.com
949-574-3860

Record Q1 Bookings Drive $8.3 Million Backlog

Tempe, Ariz. (May 14, 2018)VirTra, Inc. (Nasdaq: VTSI) (the “Company”), a global provider of simulators for the law enforcement, military, educational and commercial markets, today announced its financial results for the first quarter ended March 31, 2018. The financial statements are available on VirTra’s website and here.

First Quarter 2018 Financial Highlights:

  Q1 2018 Q1 2017 % Δ
Revenues $3.2M $4.2M (22.9)%
Gross Profit $2.2M $2.4M (8.7)%
Gross Margin 68.4% 57.7% +1,063 bps
Net Income (Loss) $(0.1)M $0.4M (121.3)%
Diluted EPS $(0.01) $0.05 (120.0)%

Business and Financial Highlights:

  • Generated a record $8.6 million in bookings in the first quarter of 2018.
  • Received a new $1.25 million contract early in the second quarter for training simulators from the United States Department of State.
  • Gross profit margin of 68.4% for the first quarter of 2018 compared to 57.7% in the year ago period.
  • VirTra’s backlog as of March 31, 2018, was approximately $8.3 million.

“VirTra generated a record level of bookings in the first quarter, demonstrating strong execution by our expanded and improved sales organization and the growing demand from law enforcement professionals around the world for our products,” commented Bob Ferris, Chairman and Chief Executive Officer of VirTra. “However, a large portion of these orders were booked too late in the quarter to convert to revenue, and instead have created a meaningful backlog to be filled during 2018. The $8.3 million backlog, combined with the $3.2 million in recognized revenue and a $1.25 million order secured early in the second quarter, represents a strong start to 2018 and provides confidence that this will be another year of growth. In the aggregate, this represents more than $12.5 million in revenue and potential revenue, approaching the $16.5 million in recognized revenue for all of 2017.”

“I am encouraged by our sales pipeline and the strong performance in closing bookings during the first quarter,” continued Mr. Ferris. “Our margin for the quarter was boosted based on deliveries of higher margin products to customers and some improvements in production methods. However, our operating expenses for the first quarter absorbed many one-time costs, totaling $132,000, which were directly related to our qualification and completion of our Regulation A+ offering, completion of SEC registration, and Nasdaq listing.”

“The market for simulators to help train the police, military personnel and civilians is robust.  With growing demand, accelerating adoption of simulation training as a way to improve skills and reduce costs, we are positioned for an outstanding 2018,” concluded Mr. Ferris. “The Board of Directors, management and the entire VirTra team are committed to serving our worldwide customers and creating sustainable value for our shareholders, and I am increasingly optimistic about the future of VirTra.”

Financial Results for the Three Months Ended March 31, 2018

Total revenues were $3.2 million for the first quarter of 2018 compared to $4.2 million for the first quarter of 2017, a decrease of 22.9%. The year-over-year decrease was due to the receipt of contracts late in the quarter, resulting in lower deliveries of simulators and accessories and consequentially not being able to recognize revenue in the current period, partially offset by increased sales of scenarios and warranties.

As of March 31, 2018, the Company’s backlog was approximately $8.3 million. The Company’s backlog consists of orders (all products and services, including extended warranties) for which a signed purchase order is in place but delivery is scheduled for a future date or has not yet been scheduled. Management expects the majority of the backlog received in the first quarter to be converted to revenue during 2018 with the exception of the extended warranties which will convert to revenue on a straight-line basis over the term of the warranty period ranging between 1-5 years.

Gross profit was $2.2 million, or 68.4% gross profit margin, for the first quarter of 2018 compared to gross profit of $2.4 million, or 57.7% gross profit margin, for the first quarter of 2017, a gross profit decrease of 8.7% but a gross margin improvement of 1,063 basis points. The year-over-year increase in gross profit margin was primarily due to a reduction in the cost of the Company’s machine shop manufacturing system and product components and increases in the sales mix of higher margin products, combined with a reduction in material costs due to favorable pricing of raw materials and systems components in 2018 compared to the same period in 2017.

Operating expense was $2.4 million for the three months ended March 31, 2018 compared to $2.0 million for the same period in 2017, an increase of $419,559. SG&A increases resulted from expanding staffing levels and increases in payroll and benefit costs, professional services increases in annual audit, accounting and legal fees, public company expense and other fees, licenses, subscriptions and professional services.  The year-over-year increase in professional services included approximately $132,000 of non-recurring legal and public company expense directly related to the Company’s qualification and conclusion of its Regulation A+ offering, completion of SEC registration, and Nasdaq listing.

Inclusive of the $132,000 in non-recurring legal and public company costs, VirTra’s loss from operations for the first quarter of 2018 was $158,000 compared to income from operations of $474,000 in the first quarter of 2017. Income tax benefit was $29,194 compared to income tax expense of $78,000 for the same period in 2017, an increase of 137%. In accordance with accounting guidance, the Company made updates to provisional estimates for the deferred taxes of the Company based on new information obtained during the three months ended March 31, 2018 and re-measured the updated provision estimates using the new effective tax rate under the Tax Act.

Inclusive of the $132,000 in non-recurring legal and public company costs, Net loss for the first quarter of 2018 was $85,787, or $(0.01) per basic and diluted share, compared to net income of $402,000, or $0.05 per basic and diluted share, for the prior year’s first quarter.

Balance Sheet Summary

Stockholders’ equity decreased to $10.3 million at March 31, 2018 compared to $10.4 million at December 31, 2017. Cash and cash equivalents were $4.5 million at March 31, 2018 compared to $5.1 million at December 31, 2017. The Company had essentially no outstanding bank debt at March 31, 2018.

Conference Call and Webcast

The Company will host a first quarter 2018 results and business update investor conference call and webcast on Monday, May 14, 2018. 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.

Date: Monday, May 14, 2018

Time: 4:30 p.m. ET / 1:30 p.m. local

Dial-in Number: 877-407-8031

International Dial-in Number: 201-689-8031

Webcast: http://www.investorcalendar.com/event/29320

Participants are recommended to dial-in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through May 28, 2018. To listen to the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international) and use replay ID 29320. The webcast replay will be available through August 14, 2018.

About VirTra

VirTra is a global provider of 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 realistic and highly-effective virtual reality and simulator technology. Learn more about VirTra at www.VirTra.com.

Forward-looking Statements

This news release includes certain information that may constitute forward-looking statements.  Forward-looking statements are typically identified by terminology such as “could,” “may,” “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 forward-looking 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, and 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.

Media contact:
VirTra
info@virtra.com
480-968-1488

Investor Relations contact:
Brett Maas
vtsi@haydenir.com
(646) 536-7331

View/Print PDF Version of Press Release/Financials

FINANCIALS FOLLOWING


TEMPE, AZ – May 27, 20009 – In spite of the current economy, one company continues to dramatically improve across the board.  Bob Ferris, VirTra Systems’ CEO and president (OTC:VTSI.PK), today announced that VirTra had another record breaking quarter.  VirTra System’s is best known for selling the world’s most effective and realistic firearm training systems to both law enforcement and military organizations throughout the world.  With today’s announcement, VirTra has now posted four consecutive profitable quarters since new management took control approximately 1 year ago.

For the quarter ending March 31, 2009, gross revenue grew 80.6% from $522,165 (in first quarter 2008) to $942,957, due to an overall increase in sales activity.

(more…)