VirTra Reports Earnings for the First Quarter of 2017
TEMPE, Ariz., May 15, 2017 (GLOBE NEWSWIRE) -- VirTra, Inc. (VTSI), (the “Company”), a leading provider of judgmental use of force simulators and firearms training simulators, today announced its financial results for the first quarter ended March 31, 2017. The financial statements are available on VirTra’s website and here.
First Quarter 2017 Financial Highlights:
Total revenue of $4.2 million
Gross profit of $2.4 million
Gross profit margin of 58%
Net income of $0.4 million, or $0.03 and $0.02 per basic and diluted share, respectively
Adjusted EBITDA of $0.6 million
“We are pleased with the start of our fiscal year, where we delivered revenue of $4.2 million and net income of $0.4 million, while at the same time booking new orders of $4.9 million, a record for any first quarter in our history,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “While our first quarter revenues did not exceed last year’s record amount, they increased sequentially by approximately $1.2 million from the fourth quarter of 2016. We are encouraged by our record level of new orders received during the first quarter of 2017 and the traction that we continue to receive in both the domestic and international markets based on our ongoing investment in sales and marketing. As a result, year-to-date in 2017, we have secured more new business from the top 50 law enforcement agencies in the United States than at any other time in our past.”
Financial Results for the Three Months Ended March 31, 2017
Total revenue was $4.2 million for the first quarter of 2017, compared to $6.2 million for the record first quarter of 2016. The year-over-year decline primarily resulted from recognizing $2.7 million in revenue on a single international contract during the first quarter of 2016, which was not repeated in this year’s first quarter.
Gross profit was $2.4 million for the first quarter of 2017, compared to $4.1 million for the first quarter of 2016.
Gross profit margin for the first quarter of 2017 was 58%, compared to 66% for the first quarter of 2016. The year-over-year decrease in gross profit margin was primarily due to product and service mix and the lower amount of system sales.
Operating expenses were $2.0 million for the first quarter of 2017, compared to $1.7 million in the first quarter of 2016. The higher expenses were primarily due to increases in employee costs, higher professional fees and expenses, and increased spending in research and development and sales and marketing, as compared to the prior year’s first quarter.
Operating income for the first quarter of 2017 was $0.5 million, compared to operating income of $2.4 million in the first quarter of 2016. The decline in operating income was primarily due to the lower revenue and gross profit margin, combined with the higher operating expenses.
Net income was $0.4 million for the first quarter of 2017, or $0.02 per diluted share, compared to net income of $2.4 million, or $0.14 per diluted share for the prior year’s first quarter.
Adjusted EBITDA was $0.6 million for the first quarter of 2017, compared to adjusted EBITDA of $2.5 million for the first quarter of 2016.
Stockholders’ equity increased to $6.9 million at March 31, 2017, compared to $6.4 million at December 31, 2016.
Cash and cash equivalents were $4.6 million at March 31, 2017, compared to $3.7 million at December 31, 2016.
The Company had essentially no outstanding debt at March 31, 2017.
Webcast
The Company will host a live webcast later today at 12:30 p.m. Eastern time/9:30 a.m. local time, to discuss these results. As part of the webcast, management will be answering questions received in advance by email. Individuals interested in listening to the webcast live via the Internet may do so by visiting the Company’s website at www.VirTra.com. A webcast replay will be available for 60 days.
