TEMPE, Ariz., May 13, 2016 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2016. The financial statements are available on
VirTra’s website and here.
First Quarter 2016 Financial Highlights:
- Net sales of $6.2 million
- Gross profit of $4.1 million
- Gross profit margin of 66%
- Net income of $2.4 million
“We are pleased to announce that our first quarter performance delivered a substantial increase in revenue growth and
profitability,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “The success we have achieved through our
disciplined approach to operations, and our focus on new and emerging opportunities for our products, has translated into record
financial metrics, including revenues, margins and profitability. We still have much to accomplish, as world-wide, there are many
with lethal force responsibility who still lack access to quality training scenarios and simulators. We are excited about the
opportunities that lie ahead for our business and for our shareholders as we pursue our long term plans for growth and market
liquidity.”
First Quarter Results for the Three Months Ended March 31, 2016
Net sales were $6.2 million in the quarter, an increase of 141%, compared to $2.6 million for the first quarter
of 2015.
Gross profit was $4.1 million for the quarter, an increase of 173%, compared to $1.5 million for the first
quarter of 2015.
Gross margin for the quarter was 66%, compared to 59% for the first quarter of 2015. The year-over-year increase
in gross margin was primarily due to increased sales volume.
Selling, general and administrative expenses were $1.7 million for the quarter, compared to $1.5 million in the
first quarter of 2015. The higher expenses were primarily due to an increase in workforce to support the growth in revenues.
Operating income for the quarter was $2.4 million, compared to $0.1 million in the first quarter of 2015. The
increase in operating income was primarily due to increased sales volume.
Net income was $2.4 million for the quarter, or $0.01 per basic share, compared to $0.2 million, or break-even
per basic share, for the first quarter of 2015.
Stockholders’ equity increased to $6.8 million at March 31, 2016, an increase of 130%, compared to $2.9 million
at March 31, 2015.
The Company had no outstanding debt as of March 31, 2016.
Cash and cash equivalents were $3.1 million at March 31, 2016, compared to $1.3 million at March 31,
2015.
Mark Skidmore, Vice President and Chief Accounting Officer for VirTra, said, “Our record first quarter performance is the direct
result of our successful sales efforts and continued reinvestment into effective simulation products, all backed up by exceptional
customer support. We remain confident that we have both the right products and teams necessary to continue our success into the
future. While we understand that sales cycles and market conditions will impact our quarterly revenues and profitability, we
nonetheless believe that the future of our company remains strong.”
About VirTra Systems, Inc.
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.
VIRTRA SYSTEMS, INC. BALANCE SHEET
|
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| |
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| |
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March 31, |
|
December 31, |
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| |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Assets |
|
(unaudited) |
|
(audited) |
|
| Current assets: |
|
|
|
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
3,051,297 |
|
|
$ |
3,317,020 |
|
|
| |
Accounts receivable, net |
|
|
4,857,968 |
|
|
|
2,346,141 |
|
|
| |
Inventory |
|
|
|
|
971,480 |
|
|
|
902,642 |
|
|
| |
Prepaid expenses and other current assets |
|
96,464 |
|
|
|
51,620 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Total current assets |
|
8,977,209 |
|
|
|
6,617,423 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
502,576 |
|
|
|
516,005 |
|
|
| Investment in Modern Round |
|
136,579 |
|
|
|
136,579 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
9,616,364 |
|
|
$ |
7,270,007 |
|
|
| |
|
|
|
|
|
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Liabilities and Stockholders'
Equity |
|
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| |
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|
|
|
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| Current liabilities: |
|
|
|
|
|
|
|
| |
Accounts payable |
$ |
606,935 |
|
|
$ |
508,358 |
|
|
| |
Accrued compensation and related costs |
|
589,116 |
|
|
|
467,881 |
|
|
| |
Accrued expenses and other current liabilities. |
|
196,456 |
|
|
|
238,347 |
|
|
| |
Deferred revenue |
|
1,309,795 |
|
|
|
1,523,841 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Total current liabilities |
|
2,702,302 |
|
|
|
2,738,427 |
|
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| |
|
|
|
|
|
|
|
|
|
| Long-term liabilities: |
|
|
|
|
|
|
|
| |
Accrued rent liability - long-term |
|
151,936 |
|
|
|
159,941 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
2,854,238 |
|
|
|
2,898,368 |
|
|
| |
|
|
|
|
|
|
|
|
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| Commitments and contingencies |
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| |
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| Stockholders' equity: |
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| Preferred stock $0.005 par value; 2,000,000 shares authorized; |
|
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| |
no shares issued or outstanding as of March 31, 2016 and December 31,
2015 |
|
- |
|
|
|
- |
|
|
| Common stock $0.005 par value; 500,000,000 shares authorized; 158,293,245
shares |
|
|
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| |
issued and 158,250,045 shares outstanding as of March 31, 2016;
158,293,245 |
|
|
|
|
| |
shares issued and 158,250,045 shares outstanding as of December 31,
2015 |
|
791,466 |
|
|
|
791,466 |
|
|
| Additional paid-in capital |
|
13,386,517 |
|
|
|
13,352,527 |
|
|
| Treasury stock at cost, 43,200 common shares as of |
|
|
|
|
| |
March 31, 2016 and December 31, 2015, respectively |
|
(2,981 |
) |
|
|
(2,981 |
) |
|
| Accumulated deficit |
|
|
|
(7,412,876 |
) |
|
|
(9,769,373 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Total stockholders' equity |
|
6,762,126 |
|
|
|
4,371,639 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Total liabilities and stockholders' equity |
$ |
9,616,364 |
|
|
$ |
7,270,007 |
|
|
| |
|
|
|
|
|
|
|
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|
VIRTRA SYSTEMS, INC. STATEMENTS OF OPERATIONS (unaudited)
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| |
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| |
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|
Three months
ended March 31,
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2016 |
|
|
|
2015 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net revenues |
|
$ |
6,232,293 |
|
|
$ |
2,584,796 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Cost of products sold |
|
2,101,025 |
|
|
|
1,072,551 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
4,131,268 |
|
|
|
1,512,245 |
|
|
| |
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
1,742,048 |
|
|
|
1,462,418 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Income from operations |
|
|
2,389,220 |
|
|
|
49,827 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Other income/(expense): |
|
|
|
|
|
|
|
| Other income |
|
|
|
517 |
|
|
|
137,137 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Other expense |
|
|
|
- |
|
|
|
(2,064 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Net other income |
|
|
|
517 |
|
|
|
135,073 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
2,389,737 |
|
|
|
184,900 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
33,240 |
|
|
|
- |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
2,356,497 |
|
|
$ |
184,900 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted average of common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
| -Basic |
|
|
|
158,250,045 |
|
|
|
158,285,045 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income per common and common equivalent share: |
|
|
|
|
| -Basic |
|
|
$ |
0.01 |
|
|
$ |
0.00 |
|
|
| |
|
|
|
|
|
|
|
|
|
VIRTRA SYSTEMS, INC. STATEMENTS OF STOCKHOLDERS' EQUITY
|
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| |
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|
|
|
|
|
| |
|
|
|
|
Common
stock
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Additional |
|
Treasury |
|
Accumulated |
|
|
|
| |
|
|
|
|
Shares |
|
Amount |
|
paid-in
capital |
|
Stock |
|
Deficit |
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at January 1, 2015 |
|
|
158,285,045 |
|
|
$ |
791,641 |
|
|
$ |
13,239,621 |
|
|
$ |
(2,981 |
) |
|
$ |
(11,306,356 |
) |
|
$ |
2,721,925 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,536,983 |
|
|
|
1,536,983 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Issued shares purchased and canceled |
|
(35,000 |
) |
|
|
(175 |
) |
|
|
(5,422 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5,597 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
- |
|
|
|
- |
|
|
|
118,328 |
|
|
|
- |
|
|
|
- |
|
|
|
118,328 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2015 |
|
|
158,250,045 |
|
|
|
791,466 |
|
|
|
13,352,527 |
|
|
|
(2,981 |
) |
|
|
(9,769,373 |
) |
|
|
4,371,639 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,356,497 |
|
|
|
2,356,497 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
- |
|
|
|
- |
|
|
|
33,990 |
|
|
|
- |
|
|
|
- |
|
|
|
33,990 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at March 31, 2016 |
|
|
158,250,045 |
|
|
$ |
791,466 |
|
|
$ |
13,386,517 |
|
|
$ |
(2,981 |
) |
|
$ |
(7,412,876 |
) |
|
$ |
6,762,126 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VIRTRA SYSTEMS, INC. STATEMENTS OF CASH FLOWS (unaudited)
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
Three months ended March
31,
|
|
| |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
| |
|
|
|
|
|
|
|
| Cash flows from operating activities: |
|
|
|
|
| |
Net income |
$ |
2,356,497 |
|
|
$ |
184,900 |
|
|
| |
|
|
|
|
|
|
|
| |
Adjustments to reconcile net income to net cash |
|
|
|
|
| |
|
provided by operating activities: |
|
|
|
|
| |
|
|
Depreciation and amortization |
|
45,555 |
|
|
|
44,144 |
|
|
| |
|
|
Stock-based compensation |
|
33,990 |
|
|
|
38,149 |
|
|
| |
|
|
Other income received in Modern Round equity |
|
- |
|
|
|
(136,579 |
) |
|
| |
Changes in operating assets and liabilities: |
|
|
|
|
| |
|
Accounts receivable, net |
|
(2,511,827 |
) |
|
|
(880,420 |
) |
|
| |
|
Inventory |
|
(68,838 |
) |
|
|
(199,915 |
) |
|
| |
|
Prepaid expenses and other current assets |
|
(44,844 |
) |
|
|
8,444 |
|
|
| |
|
Accounts payable and other accrued expenses |
|
169,916 |
|
|
|
337,192 |
|
|
| |
|
Deferred revenue |
|
(214,046 |
) |
|
|
156,490 |
|
|
| |
|
|
|
|
|
|
|
| Net cash provided/(used) by operating activities |
|
(233,597 |
) |
|
|
(447,595 |
) |
|
| |
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
| |
Purchase of property and equipment |
|
(32,126 |
) |
|
|
(139,452 |
) |
|
| |
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
(32,126 |
) |
|
|
(139,452 |
) |
|
| |
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
| |
Draws on line of credit |
|
- |
|
|
|
- |
|
|
| |
Repayments of line of credit |
|
- |
|
|
|
- |
|
|
| |
|
|
|
|
|
|
|
| Net cash used in financing activities |
|
- |
|
|
|
- |
|
|
| |
|
|
|
|
|
|
|
| Increase/(decrease) in cash and cash equivalents |
|
(265,723 |
) |
|
|
(587,047 |
) |
|
| Cash and cash equivalents, beginning of period |
|
3,317,020 |
|
|
|
1,912,729 |
|
|
| |
|
|
|
|
|
|
|
| Cash and cash equivalents, end of period |
$ |
3,051,297 |
|
|
$ |
1,325,682 |
|
|
| |
|
|
|
|
|
|
|
| Cash paid during the period for: |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Interest |
$ |
- |
|
|
$ |
- |
|
|
| |
|
|
|
|
|
|
|
| |
Taxes |
$ |
21,610 |
|
|
$ |
- |
|
|
| |
|
|
|
|
|
|
|
| Noncash investing and financing activities: |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Receipt of Modern Round equity |
$ |
- |
|
|
$ |
136,579 |
|
|
| |
|
|
|
|
|
|
|
Investor Relations Counsel Larry Clark Financial Profiles, Inc. (310) 478-2700 vtsi@finprofiles.com
