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Farewell!
Sold all of my Virtra stock, bought PRRVF with the proceeds. Up 40% since, and climbing higher.
Finally ran out of patience. I wish everyone here good luck.
Which is why I sold 80% of my Virtra holdings to reinvest elsewhere. Finally got tired of waiting for Bob to execute on his plan to benefit shareholders.
Wait a minute. He doesn't have a plan to benefit shareholders.
Oh well.
200,000+ ounces in the stockpiles?
I did some research on what percentage of gold got processed in the late 1800's/early 1900's, using stamp mills and simple sluicing of the product. About 40% yield, which means that the stockpiles contain upwards of 60% of the original grade. We could be looking at 200,000 ounces or more if they really did not get anymore than 40% of the gold the first time around.
And this is preprocessed ore. They don't have to drill and blast, just scoop it up and drop into a crushing/ball mill/gravity concentrator system.
The downside is no power on the property, so everything has to be portable, but if there really is that much gold they could quickly pay for installation of roads and power.
They finally made a profit!
VirTra Reports Third Quarter and Nine Month 2020 Financial Results
Sales Momentum Drives $6.4 Million in Revenue, EPS of $0.11, and Record $14.4 Million Backlog
TEMPE, Ariz. — November 10, 2020 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of training simulators for the law enforcement, military, educational and commercial markets, reported results for the third quarter and nine months ended September 30, 2020. The financial statements are available on VirTra’s website and here.
Third Quarter 2020 and Recent Highlights:
• Awarded $1.9 million IDIQ (indefinite delivery/indefinite quantity) contract to develop training content in support of the Air Force Research Laboratory’s Airman Decision Making and Interface Research (ADMIRE) program as a result of recent partnership with Infoscitex (IST)
• Received $1.5 million order from the U.S. Department of Homeland Security’s Federal Law Enforcement Training Centers (FLETC), which will result in VirTra’s simulators being installed at all four of FLETC’s training centers by December 2020
• Received $863,000 order from U.S. Customs and Border Protection (CBP) for simulation training products and services, including new, drop-in recoil kits
• Appointed military simulation training expert, John Givens, to the Company’s board of directors to fill the vacancy left by Mitchell Saltz’s passing
• Backlog increased to a record $14.4 million as of September 30, 2020
Third Quarter and Nine Month 2020 Financial Highlights:
Management Commentary
“Despite our sales and installation teams facing the inherent challenges of a pandemic, our talented staff adapted to changing circumstances to produce financial results for the third quarter that were essentially in-line with our near record performance last year and new sales that exceeded last year’s performance,” said Bob Ferris, chairman and chief executive officer of VirTra. “Financially, the quarter was highlighted by revenue of $6.4 million, net income of $0.9 million, which drove EPS of $0.11 and adjusted EBITDA of $1.6 million, and perhaps most impressive, a record backlog of $14.4 million. Operationally, we built upon our relationship with FLETC, a national leader in law enforcement training, and we expanded our footprint in the military market with the $1.9 million contract we received through our partnership with IST on the ADMIRE program for the benefit of the Department of Defense.
“In 2019, we surged in the latter part of the year to deliver our 14th consecutive year of topline growth. While challenges to installations persist, the financial results of this quarter coupled with our increasing backlog demonstrate that, despite the unprecedented COVID-19 related headwinds, VirTra continues to effectively sell and service the essential needs of our customers. We are cautiously optimistic that, should the macro environment in the fourth quarter be similar to what it was in the third, we will deliver strong results for the rest of 2020.”
Third Quarter 2020 Financial Results
Total revenue decreased 4% to $6.4 million from $6.7 million in the third quarter of 2019. The decrease in total revenue was due to reduced equipment installations due to COVID-19 travel restrictions.
Gross profit increased 6% to $4.0 million (61.9% of total revenue) from $3.8 million (55.9% of total revenue) in the third quarter of 2019. The increase in gross profit was primarily due to reduced direct material costs and travel costs resulting from reduced sales.
Operating expense was $2.7 million compared to $2.5 million in the third quarter of 2019. The increase in operating expense was mainly due to a $266,000 impairment in the investment in That’s Eatertainment Corp. (“TEC”) which was recorded as operating expense.
Operating income was $1.2 million compared to $1.2 million in the third quarter of 2019.
Net income totaled $868,000, or $0.11 per diluted share, compared to net income of $937,000, or $0.12 per diluted share, in the third quarter of 2019.
Adjusted EBITDA was $1.6 million compared to $1.4 in the third quarter of 2019.
Financial Results for the Nine Months Ended September 30, 2020
Total revenue was $12.5 million compared to $12.8 million in the first nine months of 2019. The change in total revenue was due to reduced equipment installations due to COVID-19 travel restrictions.
Gross profit was $7.1 million (57.0% of total revenue) compared to $7.1 million (55.2% of total revenue) in the first nine months of 2019. The slight increase in gross profit was primarily due to sales volume and product mix, which tends to remain fairly consistent as a percentage of total revenue when compared annually.
Operating expense was $7.3 million compared to $7.2 million in the first nine months of 2019. The increase in net operating expense was primarily due to a $406,000 impairment in the investment of TEC, which was recorded as operating expense and was offset by reduced selling, general, and administrative costs from COVID-19 restrictions on travel and tradeshows.
Loss from operations was $115,000 compared to a loss from operations of $94,000 in the first nine months of 2019.
Net loss totaled $123,000, or $(0.02) per diluted share, compared to net loss of $10,000, or $(0.00) per diluted share in the comparable period a year ago.
Adjusted EBITDA was $615,000 compared to adjusted EBITDA of $339,000 in the first nine months of 2019.
At September 30, 2020, backlog totaled approximately $14.4 million, a $3.1 million increase compared to backlog of $11.3 million as of September 30, 2019. Accounts receivable and unbilled revenues totaled approximately $6.2 million as of September 30, 2020, compared to $5.9 million at December 31, 2019, an increase of $325,000. Cash and cash equivalents totaled $4.1 million at September 30, 2020 compared to cash and cash equivalents and certificates of deposit of $3.3 million at December 31, 2019, an increase of $0.8 million.
Conference Call
VirTra management will hold a conference call today (November 10, 2020) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s chairman and CEO, Bob Ferris, and CFO, Judy Henry, will host the call, followed by a question and answer period.
U.S. dial-in number: 844-602-0380
International number: 862-298-0970
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact VirTra’s IR team at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 24, 2020.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 38151
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860
VirTra, Inc.
Condensed Balance Sheets
VirTra, Inc.
Condensed Statements of Operations
(Unaudited)
VirTra, Inc.
Condensed Statements of Cash Flows
(Unaudited)
VirTra Appoints John Givens to Board of Directors
virtra.com/virtra-appoints-military-simulation-training-expert-john-givens-to-board-of-directors/
VirTra Appoints Military Simulation Training Expert, John Givens, to Board of Directors
TEMPE, Ariz. — November 3, 2020 — VirTra, Inc. (NASDAQ: VTSI), a global provider of training simulators for the law enforcement, military, educational, and commercial markets, has appointed John Givens to its board of directors. With Givens’s appointment, VirTra’s board of directors returns to five directors, including three independent directors and two inside directors.
Givens brings to VirTra’s board over 20 years of experience as a board member, entrepreneur, and corporate executive with a unique track record of successfully selling and implementing large military simulation contracts worldwide. Currently, Givens serves as a military board advisor to Bohemia Interactive Simulations (BISim), a global developer of advanced military simulation and training software. In 2010, he established the US company of BISim, and during his tenure as president of the company, he led the business development of its military simulation products from inception to becoming one of the most widely used simulation products throughout all branches of the U.S. military. He has achieved numerous awards and honors throughout his career, including an appointment to the board of directors of the National Center for Simulation (NCS), an association of defense companies, government, academic, and industry members, and the “Pioneer Award” for outstanding contributions and innovations to the training and effectiveness of U.S. and overseas soldiers, sailors, and airmen. Givens graduated with a Bachelor of Science degree in Computer Science from Florida Institute of Technology and proudly served in the United States Army.
“John’s an incredibly well respected and accomplished simulation industry executive, and we’re very fortunate to have him join our board,” said Bob Ferris, chairman and chief executive officer of VirTra. “The wealth of hard-earned experience and industry relationships he brings to VirTra from his remarkable success in building one of the most prominent simulation training companies in the world will be of tremendous value to our organization.”
Givens added, “It’s a privilege to join VirTra’s board of directors and to have the opportunity to leverage my expertise to contribute to the company’s strategic decisions, independent oversight and corporate governance. I look forward to helping steer VirTra towards ever greater successes and enhance VirTra’s value to its customers, to the market, and to its shareholders.”
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Investor Relations Contact:
Matt Glover or Charlie Schumacher
VTSI@gatewayir.com
949-574-3860
Who cares? Mr. Market Suddenly LOVES Virtra
Haven't seen this kind of action with no PR in a long time. Maybe Mr. Market finally figured out how undervalued VTSI really is.
If no PR does this....
Did that
I've been very impressed at how well VTSI has held up with what normally would tank the stock. Built a very strong base at around 3.15 that it just does not want to close under. So I'm guessing it wants to go up, if only Bob would allow them to make a profit. I think someone asked about that in the webinar. I certainly did, emailing Bob and asking how did he expect people to invest with no profit.
Only if Bob allows Virtra to make a Profit
Somehow he always reports a small loss, every quarter. Its like he looks for expenses he can add to results so they never report a profit. New investors will want to see that profits can get out, otherwise....
I'm thinking somebody knows something...
Or somebodies. Its almost like buyers have foreknowledge of something is going to happen, so they are buying up the stock. I've never seen Virtra trade like this in all the years I've owned it. We had a one day spike in volume last August, this time around the volume is more than one day. Record volume for the last 5 years, with heavy price improvement.
Same problem.
Got family and friends to invest, then watched them lose on paper. Hopefully this is just the start of something BIG.
Investor Relations is reading these posts
Just got off the phone with IR. May be wasting my time, but what would the shareholders like management to do differently with respect to communicating information back to shareholders that they are not doing now?
They are NOT issuing shares
This is just a way to shorten the time they need to issue shares sometime over the next three years for reasons unknown at this point. But I can think of two reasons to raise $20 million on short notice:
1. To finance a really large contract.
2. To purchase another company.
Here's my Speculation
Nobody knows anything, and everyone wants to speculate, so here is mine.
A shelf offering is a Securities and Exchange Commission (SEC) provision that allows an equity issuer (such as corporation) to register a new issue of securities without having to sell the entire issue at once. The issuer can instead sell portions of the issue over a three-year period without re-registering the security or incurring penalties.
A shelf offering enables an issuer to access markets quickly, with little additional administrative paperwork, when market conditions are optimal for the issuer.
So let's suppose Virtra knows there is a possibility of a really large contract in the offing, one where they will burn through their cash very quickly to execute the contract. They will need to raise funds very fast, on short notice. Presumably they will have announced said contract, so the market has pushed the price up to the point where Virtra can sell stock on more favorable terms than today.
No shenanigans, just smart business planning.
That's my take.
I bought in 2004, sold in 2007, bought back in 2009. Long term profit.
You and me both. I bought in 2004, sold in 2007 to take the loss, bought back in 2009, been waiting patiently ever since. I've made 300%, so can't really complain, but like you, just waiting.
I'm thinking maybe after this year they can pull it off. They certainly have the product line, and recent news events certainly indicate the desperate need for training.
Both of my broker accounts show that VTSI closed at the high for the day, a rare occurrence indeed!
This might explain the sudden surge in US government sales announcements:
https://www.zerohedge.com/economics/why-us-decoupling-miracle-ends-72-hours
Yep. Took two days instead of one. Anytime they come out with news now it spikes up, then drifts lower after. Someday...
We FINALLY closed substantially higher for a day. I thought for sure we would repeat the July experience. Way to go!
Been there, done that. I feel for whomever bought at the top of this spike. We used to get these spikes where the price dropped suddenly, then closed higher or even Now we get the reverse. VTSI is becoming a quick trade stock rather than a viable investment vehicle. I keep waiting for management to get their act together.
They can't even get the conference call to work!
They just cannot get their act together!
First Quarter report says they have the funds
For an 8 cents per quarter dividend.
I suspect most shareholders would elect to get it in stock, so the cost to the company would not be that much.
Bob: "Our balance sheet continues to remain strong with nearly $4.6 million in cash, cash equivalents and CDs."
If they paid a dividend, would the price rise?
Something like 8 cents per quarter, with a dividend reinvestment plan, so they get most of it back.
Do you think the price would go up then?
Nothing else is working.
Insider Buying
Virtra Inc (OTCMKTS:VTSI) CFO Judy A. Henry purchased 3,460 shares of the business’s stock in a transaction on Wednesday, May 22nd. The stock was purchased at an average cost of $2.98 per share, for a total transaction of $10,310.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
Another crappy report!
Makes The Gang That Couldn't Shoot Straight look good.
Show me some evidence that the company cares at all about shareholder value. Price today is where it was at almost 5 years ago.
I'll say it again, how about a dividend?
Reinvested (and increasing) dividends are a more important and stable source of stock market wealth than price gains.
8 cents a share per quarter, with dividend reinvestment would enable the company to return value to the shareholders without severely depleting their available cash. 8 cents a share yields about a 10% return. You could keep it or reinvest. VTSI should be able to raise that amount by 10% a year or more.
With lumpy earnings for the foreseeable future the only way to get a decent return on an investment in VTSI is going to be through a dividend plan. Nothing else the company has done has had any material effect on the stock price.
Price climbed to $3.10 in October 2014, we are still there. If everyone agitated for a dividend then maybe we might start to get a rising stock price along with a decent return on our investment.
WHAT huge losses?
Anyone who bought years ago is sitting on a FAT profit. I certainly am.
Eventually they are going to make it. The STEP program should help a lot, new driving simulator as well, and beefing up their management, assuming they are serious.
Speculation about Steve Handel's affect on Virtra
Handel came from a much larger company that has tasted success for many years. What do you think is the likelihood that he might be able to convince Virtra's management to upgrade itself to get better performance?
Up all day, down at the close. Just wish it could find a way to close up for the day. Who is stepping on it at the last minute?
I can speak from personal experience that Subscription works, and works well. Our niche market software for used booksellers struggled to make us any decent amount of money from our first release in December 1998. Some years we did well, others were a bust. Then we switched to SAS in 2012 (monthly subscription) and since then have experienced a steady stream of profitable revenue. Because we are lazy we have to maximized the revenue like we could, but at least we made money every year. Just increased prices for the first time in February, revenue will increase by about 30% over what we did before. We are now finally starting to take advantage of SAS by developing and releasing new apps that we can charge for.
Wishful thinking that we would close the week with a gain...
For once we squeaked out a positive gain for the day. Wasn't sure that was going to happen.
Have you contacted Bob about a dividend?
Maybe if shareholders asked for a dividend....
Management might do something to benefit shareholders for a change.
Bob Ferris <bferris@virtra.com>
8 cents a share, quarterly. Better what we've seen so far!
They have $7.9 million in CASH. 8 cents would cost $2.52 million a year. In 2017 they made $3.26 million, this year, who knows? $2 million so far.
32 cents would give us a yield of 9% today.
I suspect the price would start going up once Wall Street realized that not only can Virtra cover the dividend, they may actually be able to increase it over time.
Yes, price appreciation is preferable. Seen any of that lately?
With lumpy earnings Virtra is never going to become a classic growth stock.
HOW about a Dividend?
I just looked at a 5 year chart. Price today is about the same as when we started 2015. A lot has changed at Virtra, yet the stock price doesn't reflect that.
How about 8 cents every quarter? At least with that we would something back on our investment in the company's stock. Right now we are getting NOTHING.
All it would take is for every shareholder emailed Bob at bferris@virtra.com or the IR people at VTSI@liolios.com and ask for an 8 cent quarterly dividend. Maybe then he would listen.
Andy
The lone wolf asking management for a dividend.
And you KNOW this how?
How do you KNOW they sit at their desks, waiting for the phone to ring?
Just curious...
Just got off the phone with this guy, (see below) who confirms Bob is looking around for an acquisition, but what can he really acquire that fits what they do?
As to stock buybacks, Bob has been talking about that for some time, we've yet to see it happen.
What I want is a dividend. That way I get not only some return on my investment but quite likely some price appreciation based on a potential rising dividend return.
Virtra is never going to be a conventional growth stock, they cannot deliver quarter over quarter sales and earnings growth. But they are a cash cow, so why not take advantage of that and start paying dividends?
8 cents a share for starters yields about 8% yield at current prices, the SP 500 yields 1.9%. Pay that and they still have boatloads of cash left over.
Charlie Schumacher
Analyst | Liolios | Investor Relations
Main 949.574.3860 | charlie@liolios.com
I called in on Skype. Was unable to do the *1 to ask a question. Didn't want to hold a phone to my ear for endless pithy comments about the company, especially the nonsense about Wall Street should be looking at year over year vs quarterly.
In what universe does Bob live in where WS looks at YOY?