Replies to post #53251 on VirTra Inc (VTSI)

[fishhunter]

I just read the cc notes and a few things made me happy.
1. Givens said Q3 was off to a strong start. That means something since it is now half over.
2. Ferris said how floored he was with what VirTra has accomplished and credited Givens. I think Ferris has now realized how even a single all star employee can be a game changer. My hope is he now understands the importance of surrounding himself with stellar people. If they can simply get one all star sales guy it will take the company to the next level.
3. Givens and Ferris focus on the sales org is now real, not just talk, they are doing the right things and understand what needs to be done. I liked the talk about incentives for salespeople and Givens certainly implied that a great sales guy who produces could now make a ton of money. Amen!

Feel really good about the company right now. I will need to stop being the frequent ahole.

[bborden51]

Looks like they only had $4 MM in bookings in the 2nd qtr. Hmmm! 1st qtr bookings was $4.4 million. Backlog went from $18.9 MM @ 3/31 to $16.4 MM @ 6/30. With 2nd qtr revenues of $10.3MM does this make sense.

And that Accounts Receivable number...$17.9MM! That makes no sense at all to me. It was $4.7MM @ 3/31. Must have something to do with the big drop in Unbilled Revenue. I've never seen A/R that high.

Not sure how they handled that $7MM in STEP contracts.

Not trying to throw a monkey wrench into the works. Somebody enlighten me.

From 10-Q:

Bookings and Backlog

The Company defines bookings as the total of newly signed contracts and purchase orders received in a defined time period. The Company received bookings totaling $8.4 million for the six months ended June 30, 2023. The Company defines backlog as the accumulation of bookings that have not started or are uncompleted performance objectives and cannot be recognized as revenue until delivered in a future quarter. Backlog also includes extended warranty agreements and STEP agreements that are deferred revenue recognized on a straight-line basis over the life of each respective agreement. As of June 30, 2023, the Company’s backlog was $16.4 million. The breakout of this backlog includes $7.8 million in capital, $6.3 million in service and warranties, and $2.3 million in STEP contracts. Warranties/Service and STEP backlog calculated in this number is revenue that will be recognized on a straight-line basis over the next 7 years. In addition, there is $7 million in renewable STEP contracts over the next 5 years. Management estimates the majority of the new bookings received in the first six months of 2023 will be converted to revenue in 2023. Management estimates the conversion of backlog based on current contract delivery dates; however, contract terms and dates are subject to modification and are routinely changed at the request of the customer.