TEMPE, Ariz., Nov. 15, 2016 (GLOBE NEWSWIRE) -- VirTra, Inc. (OTC Pink: VTSID), a leading provider of judgmental use of force simulators and firearms training simulators, today announced its financial results for the third quarter ended September 30, 2016. The financial statements are available on VirTra’s website and here .
Third Quarter 2016 Financial Highlights:
- Net sales of $3.0 million
- Gross profit of $1.6 million
- Gross profit margin of 55%
- Net loss of $0.1 million
Other Highlights:
- Approved and implemented a corporate redomestication from Texas to Nevada
- Implemented a 1 for 10 reverse stock split, effective October 20, 2016
- Appointed Mitchell A. Saltz to the Board of Directors, effective November 1, 2016, increasing the number of independent directors to two and the total number of directors to four
- Announced a $1.0 million share repurchase authorization
- Submitted an application to uplist the Company’s common stock to the OTCQX® U.S. market
- On October 20, 2016, the Company exercised its warrant option and purchased 1.7 million shares of stock of Modern Round Entertainment Corporation for approximately $335,000, resulting in the Company’s aggregate holdings of Modern Round to be 3.4 million shares, or 8.9% of its current issued and outstanding common shares
Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented: “We generated $3.0 million in net sales for the third quarter and $12.6 million for the first nine months of 2016, our highest level of revenue through the first nine months of the year in the Company’s history. In addition, we have been very busy with respect to our changes in corporate structure and governance, with the implementation of a number of initiatives that we believe will increase our visibility within the investment community and potentially lead to more trading liquidity and greater institutional ownership of our stock.”
“While we generated another strong quarter of net sales, our profitability was impacted by higher expenses, primarily due to increased professional fees in preparation of our corporate changes, as well as our increased investment in infrastructure, including sales, marketing and product development, which we view as necessary to support our plans for long term growth,” Ferris concluded.
Third Quarter Results for the Three Months Ended September 30, 2016
Net sales were $3.0 million in the quarter, compared to $3.9 million for the third quarter of 2015.
Gross profit was $1.6 million for the quarter, compared to $2.5 million for the third quarter of 2015.
Gross margin for the quarter was 55%, compared to 62% for the third quarter of 2015. The year-over-year decline in gross margin was primarily due to the lower revenues and a shift in the mix of products and services that we delivered between the two periods.
Selling, general and administrative expenses were $1.8 million for the quarter, compared to $1.5 million in the third quarter of 2015. The increase was primarily due to higher professional fees and expenses, as well as increased spending in sales, marketing, research and development.
Operating loss for the quarter was $0.1 million, compared to operating income of $1.0 million in the third quarter of 2015. The decrease was primarily due to the higher selling, general and administrative expenses in the quarter.
Net loss was $0.1 million for the quarter, or break-even per basic share, compared to $1.0 million, or $0.01 per basic share, for the third quarter of 2015. On a pro-forma basis, taking into account the 1 for 10 reverse stock split that occurred on October 20, 2016, net loss per basic share was break-even in the third quarter of 2016, compared to net income per basic share of $0.06 in the third quarter of 2015.
Stockholders’ equity increased to $6.8 million at September 30, 2016, compared to $4.2 million at September 30, 2015.
The Company has approximately $34,000 of outstanding debt as of September 30, 2016.
Cash and cash equivalents were $4.9 million at September 30, 2016, compared to $2.5 million at September 30, 2015.
Matt Burlend, Chief Operating Officer for VirTra, said, “Our record performance for the first nine months of 2016 is the result of our increased investment in our sales, marketing, research and development, combined with our excellent reputation for customer service. We have entered the fourth quarter with solid momentum and look forward to 2016 being another strong year for VirTra.”
About VirTra Systems, Inc.
VirTra is a global leading provider of the world's most realistic and effective judgmental use of force simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
Forward-looking Statements
This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by terminology such as "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, 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.
| VIRTRA, INC. | |||||||||||||
| CONDENSED BALANCE SHEETS | |||||||||||||
| September 30 | December 31, | ||||||||||||
| 2016 | 2015 | ||||||||||||
| ASSETS | (unaudited) | (audited) | |||||||||||
| CURRENT ASSETS | |||||||||||||
| Cash and cash equivalents | $ | 4,921,398 | $ | 3,317,020 | |||||||||
| Accounts receivable, net | 3,016,585 | 2,346,141 | |||||||||||
| Inventory | 1,044,955 | 902,642 | |||||||||||
| Prepaid expenses and other current assets | 243,644 | 51,620 | |||||||||||
| Total current assets | 9,226,582 | 6,617,423 | |||||||||||
| Property and equipment, net | 823,352 | 516,005 | |||||||||||
| Investment in Modern Round | 136,579 | 136,579 | |||||||||||
| TOTAL ASSETS | $ | 10,186,513 | $ | 7,270,007 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
| CURRENT LIABILITIES | |||||||||||||
| Accounts payable | $ | 536,814 | $ | 508,358 | |||||||||
| Accrued compensation and related costs | 424,850 | 467,881 | |||||||||||
| Accrued expenses and other current liabilities | 95,837 | 238,347 | |||||||||||
| Notes payable | 33,750 | - | |||||||||||
| Deferred revenue | 2,160,950 | 1,523,841 | |||||||||||
| Total current liabilities | 3,252,201 | 2,738,427 | |||||||||||
| Long-term liabilities: | |||||||||||||
| Accrued rent liability | 132,304 | 159,941 | |||||||||||
| Total liabilities | 3,384,505 | 2,898,368 | |||||||||||
| Commitments and contingencies | |||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||
| Preferred stock $0.005 par value; 2,000,000 shares authorized; no shares | |||||||||||||
| or outstanding as of September 30, 2016 and December 31, 2015 | - | - | |||||||||||
| Common stock $0.005 par value; 500,000,000 shares authorized; | |||||||||||||
| 158,550,045 shares issued and 158,250,045 shares outstanding | |||||||||||||
| as of September 30, 2016 and December 31, 2015 | 792,750 | 791,466 | |||||||||||
| Additional paid-in capital | 13,416,583 | 13,352,527 | |||||||||||
| Treasury stock at cost, 0 and 43,200 common shares as of | |||||||||||||
| September 30, 2016 and December31, 2015, respectively | - | (2,981 | ) | ||||||||||
| Accumulated deficit | (7,407,325 | ) | (9,769,373 | ) | |||||||||
| Total stockholders' equity | 6,802,008 | 4,371,639 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 10,186,513 | $ | 7,270,007 | |||||||||
| VIRTRA, INC. | ||||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
| REVENUES | ||||||||||||||||||
| Net sales | $ | 2,989,292 | $ | 3,936,888 | $ | 12,597,552 | $ | 9,631,660 | ||||||||||
| Cost of sales | 1,345,181 | 1,481,860 | 4,856,906 | 3,980,123 | ||||||||||||||
| Gross profit | 1,644,111 | 2,455,028 | 7,740,646 | 5,651,537 | ||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||
| General and administrative expenses | 1,756,658 | 1,466,386 | 5,362,816 | 4,353,796 | ||||||||||||||
| Income from operations | (112,547 | ) | 988,642 | 2,377,830 | 1,297,741 | |||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Other income | 48,267 | 252 | 60,817 | 137,525 | ||||||||||||||
| Other expense | 6,790 | - | (2,981 | ) | (2,064 | ) | ||||||||||||
| Net other income (expense) | 55,057 | 252 | 57,836 | 135,461 | ||||||||||||||
| Income before income taxes | (57,490 | ) | 988,894 | 2,435,666 | 1,433,202 | |||||||||||||
| Income tax expense | 8,415 | - | 73,618 | 19,542 | ||||||||||||||
| NET INCOME | $ | (65,905 | ) | $ | 988,894 | $ | 2,362,048 | $ | 1,413,660 | |||||||||
| Basic and diluted weighted average shares outstanding | 158,308,741 | 158,250,045 | 158,269,825 | 158,250,045 | ||||||||||||||
| Basic and diluted income per share | $ | (0.00 | ) | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
| VIRTRA, INC. | ||||||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
| (unaudited) | ||||||||||||
| For Nine Months Ended | ||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 2,362,048 | $ | 1,413,660 | ||||||||
| Adjustments to reconcile net income | ||||||||||||
| to net cash provided (used) in operating activities | ||||||||||||
| Depreciation and amortization | 133,131 | 140,857 | ||||||||||
| Common stock issued for option exercise | 16,350 | - | ||||||||||
| Stock-based compensation | 93,990 | 104,871 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (670,444 | ) | (246,966 | ) | ||||||||
| Inventory | (142,313 | ) | (371,689 | ) | ||||||||
| Prepaid expenses and other current assets | (192,024 | ) | (25,396 | ) | ||||||||
| Accounts payable and other accrued expenses | (157,086 | ) | 23,275 | |||||||||
| Deferred revenue | 637,110 | (5,255 | ) | |||||||||
| Net cash provided/(used) by operating activities | 2,080,762 | 1,033,357 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Investment in Modern Round | - | (136,579 | ) | |||||||||
| Common stock shares cancelled | - | (5,597 | ) | |||||||||
| Treasury stock cancelled | 2,981 | - | ||||||||||
| Purchase of property and equipment | (468,115 | ) | (300,292 | ) | ||||||||
| Net cash used in investing activities | (465,134 | ) | (442,468 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from line of credit | - | - | ||||||||||
| Note payable - Profiles Purchase | (11,250 | ) | - | |||||||||
| Repayments of line of credit | - | - | ||||||||||
| Net cash used in financing activities | (11,250 | ) | - | |||||||||
| Net increase in cash | 1,604,378 | 590,889 | ||||||||||
| Cash, beginning of period | 3,317,020 | 1,912,729 | ||||||||||
| Cash, end of period | $ | 4,921,398 | $ | 2,503,618 | ||||||||
| Supplemental Information: | ||||||||||||
| Cash paid for: | ||||||||||||
| Interest | $ | - | $ | - | ||||||||
| Taxes | $ | 143,618 | $ | 19,542 | ||||||||
| Noncash investing and financing activities: | ||||||||||||
| Receipt of Modern Round equity | $ | - | $ | 136,579 | ||||||||
Investor Relations Counsel Larry Clark Financial Profiles, Inc. (310) 622-8223 vtsi@finprofiles.com
