Tempe, Arizona (November 15, 2013) — VirTra Systems (OTC Pink: VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today reported unaudited financial results for its third quarter of 2013, ended September 30. The unaudited financial statements are available on VirTra’s website and here.
- Net sales were $2.71 million in the quarter, an increase of $1.3 million, or 91%, compared to third quarter 2012 sales of $1.4 million. Fluctuation in recognized revenue from quarter to quarter is the nature of VirTra Systems’ business. An increase in international sales is the main reason for the current quarter’s increase over third quarter 2012.
- Gross margin in the third quarter of 2013 was 68%, compared to 47% in the same period last year. The drivers for the improvement are primarily due to the increase in sales and corresponding leverage of overhead.
- Sales, general and administrative (SG&A) expenses of $1.0 million in the third quarter of 2013 decreased 23% from $1.3 million in the third quarter of 2012. As a percent of revenue, SG&A was 37% in the third quarter 2013 compared to 91% in the prior year. The change is largely due to the 91% increase in sales.
- Income from operations increased $1.5 million to $0.8 million in the third quarter of 2013 compared to the third quarter of 2012.
- Through three quarters of 2013, the Company generated $1.7 million in cash from operating activities. The Company’s cash and cash equivalents were $1.8 million at the end of the third quarter of 2013, up from $0.4 million at December 31, 2012. No stock options were exercised.
- The Company has no significant debt outstanding.
Mark Skidmore, Vice President – Chief Accounting Officer of the Company, stated, “VirTra achieved shareholder equity of approximately $1 million, an increase of nearly $1.3 million as compared with the same period in 2012. The good quarter performance is a result of delivering products to customers on time through exceptional teamwork.”
Bob Ferris, Chief Executive Officer of VirTra, commented, “Management has invested substantial time and capital over the past 18 months, developing an international market position. Our 3rd quarter results represent a healthy combination of increased revenue from international business and carefully managed expenses. We also continued to invest in developing our product capabilities and in pursuing opportunities for future revenue growth.”
About VirTra Systems
VirTra is a global leading provider of the world’s most realistic and effective shooting 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 of 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.