Revenue up 55% and Net Income up over Fivefold
TEMPE, Ariz., Aug. 14, 2017 (GLOBE NEWSWIRE) -- VirTra, Inc. (OTCQX:VTSI), (the "Company"), a global provider of simulators for the law enforcement, military, educational and commercial markets, today announced its financial results for the second quarter ended June 30, 2017. The financial statements are available on VirTra's website and here.
Second Quarter 2017 Financial Highlights:
-- Total revenue of $5.3 million
-- Gross profit of $3.8 million
-- Gross profit margin of 71%
-- Net income of $1.6 million, or $0.10 per basic and diluted share
-- Adjusted EBITDA of $1.8 million
"We are very pleased with our financial results for the second quarter of 2017, where we delivered revenue of $5.3 million and net income of $1.6 million, converting a significant amount of our record first quarter orders into revenue and profit," said Bob Ferris, Chairman and Chief Executive Officer of VirTra. "Our exceptionally strong gross profit margins were due to a mix of higher margin products and services, as well as realizing the benefits from producing our own parts and products at our recently acquired machine shop. We continue to be encouraged by the traction that we are receiving in both the domestic and international markets based on our ongoing investment in sales and marketing."
Financial Results for the Three Months Ended June 30, 2017
Total revenue was $5.3 million for the second quarter of 2017, compared to $3.4 million for the second quarter of 2016, an increase of 55%. The year-over-year increase was due to higher sales of simulators, accessories, warranties and other services, compared to the second quarter of 2016. In addition, royalties increased by approximately $150,000, compared to the prior year's second quarter.
Gross profit was $3.8 million for the second quarter of 2017, compared to $1.9 million for the second quarter of 2016, an increase of 90%.
Gross profit margin for the second quarter of 2017 was 71%, compared to 58% for the second quarter of 2016. The year-over-year increase in gross profit margin was primarily due to product and service mix, the higher amount of system sales and the benefit of producing a number of our own parts and products at our recently acquired machine shop.
Operating expenses were $2.1 million for the second quarter of 2017, compared to $1.6 million in the second 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, compared to the prior year's second quarter.
Income from operations for the second quarter of 2017 was $1.6 million, compared to $0.4 million in the second of 2016. The increase in operating income was primarily due to the higher revenue and gross profit margin, partially offset by the higher operating expenses.
Net income was $1.6 million for the second quarter of 2017, or $0.10 per basic and diluted share, compared to net income of $0.3 million, or $0.02 per basic and diluted share for the prior year's second quarter.
Adjusted EBITDA was $1.8 million for the second quarter of 2017, compared to adjusted EBITDA of $0.4 million for the second quarter of 2016.
Stockholders' equity increased to $10.0 million at June 30, 2017, compared to $6.4 million at December 31, 2016.
Cash and cash equivalents were $4.3 million at June 30, 2017, compared to $3.7 million at December 31, 2016.
The Company had essentially no outstanding bank debt at June 30, 2017.
Share Repurchase
The Company has recently begun to repurchase shares of its common stock under the current share repurchase authorization approved by its Board of Directors in October of 2016. To date, these shares have been purchased in the open market pursuant to a trading plan that has been adopted in accordance with Rule 10b-18 of the Securities and Exchange Commission. During the six months ended June 30, 2017, the Company purchased 6,900 shares at a cost of $13,800. Subsequent to June 30, 2017, and through today's date, the Company purchased an additional 10,851 shares in the open market at a cost of $21,656. The Company plans to retire any shares purchased through this program before the end of the current year.
Capital Raise
We are committed to positioning VirTra for further potential growth by raising funds in the capital markets in a Regulation A+ offering in the coming months and a possible uplisting of our common stock to a national stock exchange. Any additional funds we raise are planned for expansion of our products and services offered, enhancement to our sales and marketing efforts and effectiveness, and aggressively taking advantage of market opportunities. As of today, no offering statement relating to our plans to raise capital has been filed with the Securities and Exchange Commission. We will, however, provide more information as we move forward with our plans.
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.
About VirTra
VirTra is a global provider of 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 realistic and highly-effective virtual reality and simulator technology. Learn more about VirTra at www.VirTra.com.
Forward-looking Statements
This news release includes certain information that may constitute forward-looking statements. Forward-looking statements are typically identified by terminology such as "could," "may," "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, and 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.
No money or consideration is being solicited by the information in this press release or any other communication and, if sent, money will not be accepted and will be promptly returned. No offer by a potential investor to buy our securities can be accepted and, if made, any such offer can be withdrawn before qualification of an offering by the SEC. A potential investor's indication of interest does not create a commitment to purchase the securities we are considering offering. Any such indication of interest may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given and all other requirements to accept an investment from a potential investor are met after the offering qualification date. Any offering will be made only by means of an Offering Circular. Any information in this press release or any other communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification for sale as provided in Regulation A+ in any such state or jurisdiction.
