Tempe, Ariz. (March 31, 2016) – VirTra Systems, Inc. (OTC Pink: VTSI), a leading provider of use of force simulators and firearms training simulators, today announced its financial results for the fourth quarter and year ended December 31, 2015. The financial statements are available on VirTra’s website and here.
Fourth Quarter 2015 Financial Highlights:
- Net sales of $3.7 million
- Gross profit of $2.0 million
- Gross profit margin of 55%
- Net income of $0.1 million
Full Year 2015 Financial Highlights:
- Record net sales of $13.3 million
- Gross profit of $7.7 million
- Gross profit margin of 58%
- Net income of $1.5 million
- Stockholders’ equity of $4.4 million as of December 31, 2015
- Cash and cash equivalents of $3.3 million as of December 31, 2015
“2015 was a year of significant growth for VirTra as we delivered the strongest annual revenues in the history of our company,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “I am proud of the efforts of our entire VirTra team in achieving these outstanding results and extremely pleased with growing our revenues by 35%. We remain focused on executing and delivering solid results.”
Financial Results for the Three Months Ended December 31, 2015
Net sales were $3.7 million for the fourth quarter of 2015, an increase of 2%, compared to $3.6 million for the fourth quarter of 2014.
Gross profit was $2.0 million for the fourth quarter of 2015, a decrease of 2%, compared to $2.1 million for the fourth quarter of 2014.
Gross margin for the fourth quarter of 2015 was 55%, compared to 58% for the fourth quarter of 2014. The year-over-year decline in gross margin was primarily due to product and service mix and a year-end inventory adjustment for higher raw materials costs, partially offset by a decline in project personnel costs.
Selling, general and administrative expenses were $1.8 million for the fourth quarter of 2015, compared to $1.2 million in the fourth quarter of 2014. The higher expenses were primarily due to an increase in workforce to support the growth in revenues.
Operating income for the fourth quarter of 2015 was $0.2 million, compared to $0.9 million in the fourth quarter of 2014. The decline in operating income was primarily due to the higher selling, general and administrative costs.
Net income was $0.1 million for the fourth quarter of 2015, or break-even per basic share, compared to $0.9 million, or $0.01 per basic share for the fourth quarter of 2014.
Financial Results for the Twelve Months Ended December 31, 2015
Net sales were $13.3 million for the year, an increase of 35%, compared to $9.9 million in 2014.
Gross profit was $7.7 million for the year, an increase of 40%, compared to $5.5 million in 2014.
Gross margin for 2015 was 58%, compared to 56% for 2014. The year-over-year increase in gross margin was primarily due to scale efficiencies resulting from the higher revenue.
Selling, general and administrative expenses were $6.2 million for the year, an increase of 46%, compared to $4.2 million in 2014. The higher expenses were primarily due to an increase in workforce to support the growth in revenues and future business, including higher R&D spending and increased investment in sales and marketing, both domestically and internationally.
Operating income for the year was $1.5 million, an increase of 18%, compared to $1.3 million in 2014. The increase in operating income was primarily due to the higher revenues and gross profit and was partially offset by the increase in selling, general and administrative costs.
Net income was $1.5 million for fiscal year 2015, or $0.01 per basic share, an increase of 22%, compared to $1.3 million, or $0.01 per basic share for 2014.
Stockholders’ equity increased to $4.4 million as of December 31, 2015, an increase of 63%, compared to $2.7 million at December 31, 2014.
The Company had no outstanding debt at year-end.
Cash and cash equivalents were $3.3 million at December 31, 2015, compared to $1.9 million at December 31, 2014.
Mark Skidmore, Vice President and Chief Accounting Officer for VirTra, said, “Fiscal year 2015 resulted in several financial achievements for the company as we generated $13.3 million in revenues, $1.5 million in net income and increased our stockholder’s equity to $4.4 million. Our years of profitable growth demonstrate that our business is succeeding. We have a strong balance sheet and ample liquidity to fund future growth.”
About VirTra
VirTra is a global leading provider of the world’s most realistic and effective judgmental use of force simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
www.VirTra.com
Forward-looking Statements
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.
Investor Relations Counsel
Larry Clark
Financial Profiles, Inc.
(310) 478-2700
vtsi@finprofiles.com
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