VirTra Reports Record 2013 Revenue and Earnings and Announces Date for Annual Shareholders’ Meeting
Tempe, Arizona (March 31, 2014) — VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today announced the release of its year end 2013 audited financial statements. Included with the corporate financial statements for the year ended December 31, 2013, VirTra has released the report of its independent registered public accounting firm, Semple Marchal & Cooper, LLP. The audited financial statements are available on VirTra’s website and here.
- Net Sales were $9.8 million for the year ending December 31, 2013, an increase of $1.0 million, or 11%, compared to the previous year’s sales of $8.8 million. The increase is mainly attributable to an increase in international sales.
- Gross margin for 2013 was 66% of Net Sales, compared to 63% last year. The drivers for the improvement are primarily due to the increase in sales and corresponding leverage of fixed overhead.
- Sales, general and administrative (SG&A) expenses of $4.9 million in 2013 decreased 10%, from $5.4 million in 2012. As a percent of revenue, SG&A was 50% for 2013 compared to 61% in the prior year. The change is mainly due to a portion of SG&A resources assigned to client paid customization projects.
- Income from operations increased $1.5 million in 2013, to $1.6 million compared to $0.1 million in 2012.
- Throughout 2013, the Company generated $2.3 million in cash from operating activities. Cash and cash equivalents were $2.4 million at the end of 2013, up from $0.4 million at December 31, 2012. No stock options were exercised.
- The Company has no draw upon the line of credit as of December 31, 2013. The Company completely paid down the commercial term loan during the third quarter of 2013, fulfilling all loan obligations.
Mark Skidmore, Vice President – Chief Accounting Officer of the Company, stated, “2013 was the strongest overall financial performance since the inception of the Company. We continue to focus on excellence in developing, manufacturing, supporting and selling the highest quality products to our customers.”
Bob Ferris, Chief Executive Officer of VirTra, commented, “I’m very pleased to announce the significant progress VirTra achieved during 2013, reaching both record revenues and earnings while still heavily investing in future products and opportunities. We still have much to accomplish but 2013 reflected our concentrated effort on gaining market share for the benefit of our stakeholders.”
VirTra will hold its 2014 Annual Shareholders’ Meeting on Thursday May 1st in Tempe, Arizona. VirTra has determined the close of business on March 31, 2014 as the record date for determining the shareholders entitled to vote at the Annual Shareholders’ Meeting. Notice of the meeting, full details and related materials will be mailed on or about April 11, 2014.
The Company does not plan to register with the Securities and Exchange Commission at this time. However, the Board of Directors is monitoring the situation regularly and is prepared to proceed with registration, if and when the Board deems it is in the best interests of all the shareholders.
About VirTra Systems
VirTra is a global leading provider of the world’s most realistic and effective small arms simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such 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, 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.