Record Sales and Earnings!
TEMPE, Ariz., March 31, 2015 (GLOBE NEWSWIRE) -- VirTra Systems (OTC Pink:VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today announced the release of its year end 2014 audited financial statements. Included with the corporate financial statements for the year ended December 31, 2014, 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.
Financial Summary:
• Net sales were a record $9.9 million for the year ending December 31, 2014, compared to the previous year's sales of $9.8 million.
• Gross margin for 2014 was 56% of net sales, compared to 66% last year. The primary drivers for the decrease were client-paid customization projects, with some personnel expenses recorded in cost of products sold versus selling, general and administrative expenses (SG&A).
• SG&A expenses of $4.2 million in 2014 decreased 13%, from $4.9 million in 2013. As a percent of revenue, SG&A was 43% for 2014 compared to 50% in the prior year. The change is due to the recording of certain customization project personnel expenses in cost of products sold.
• Income from operations was $1.3 million for the year ending December 31, 2014. Net income for the current year is 13% of net sales.
• Stockholders' equity increased to $2.7 million at December 31, 2014, compared to $1.4 million at December 31, 2013. The company had no debt as of December 31, 2014.
• Throughout 2014, the company used $0.3 million in cash from operating activities. Cash and cash equivalents were $1.9 million at the end of 2014, down from $2.4 million at December 31, 2013.
Other Significant Events:
• During the second half of 2014, the company signed two new high-profile clients: the Los Angeles County Sheriff's Department, on October 17, 2014, and the U.S. Department of Homeland Security on September 22, 2014.
• During third quarter 2014, VirTra received a record $10.7 million in purchase orders.
Mark Skidmore, Vice President and Chief Accounting Officer for VirTra, said, "The fourth quarter of 2014 was one of our best quarters ever, as the company generated $3.6 million in revenues and $0.8 million in income from operations. Income from operations for the year declined compared to 2013 primarily as a result of expenditures related to increased investment in personnel, product development, and sales efforts for domestic and international projects."
Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented, "VirTra laid a strong foundation for growth during 2014 in a number of areas. First, several of the largest and most influential law enforcement agencies selected VirTra as a vendor, propelling us to record financial results. Second, VirTra aggressively pursued business development work in conjunction with highly respected international distributors. Third, we increased the staff, investment dollars and intensity of pace in every area of product development at VirTra. Finally, we negotiated a co-venture agreement with Modern Round for VirTra's technology to power a commercial market simulator-based shooting concept with industry veterans. Our shareholders enjoyed a 100% increase in our stock price during 2014 and we believe our strong position in multiple markets gives us potential for sustained growth."
