VirTra, Inc. (Nasdaq: VTSI)
(“VirTra”), a global provider of judgmental use of force
training simulators, firearms training simulators for the law
enforcement and military markets, reported results for the first
quarter ended March 31, 2023. The financial statements are
available on VirTra’s website and here.
First Quarter 2023 Financial Summary:
- Total revenue increased 48% to a
record $10.0 million
- Gross profit increased 88% to $6.9
million, or 69% of total revenue
- Net income increased by $2.4 million
to $2.9 million
- Adjusted EBITDA increased to $4.0
million
- Improved strong balance sheet with
cash and cash equivalents of $14.3 million at March 31, 2023
First Quarter 2023 Financial Highlights:
|
For the Three Months Ended |
All figures in millions, except per share data |
March 31, 2023 |
March 31, 2022 |
% Δ |
Total Revenue |
$10.0 |
$6.8 |
48% |
|
|
|
|
Gross Profit |
$6.9 |
$3.7 |
88% |
Gross Margin |
69.3% |
54.6% |
27% |
|
|
|
|
Net Income (Loss) |
$2.9 |
$0.6 |
N/A |
Diluted EPS |
$0.27 |
$0.05 |
N/A |
Adjusted EBITDA |
$3.99 |
$1.05 |
N/A |
Management Commentary
“Coming off our 17th consecutive year of revenue
growth in 2022, in Q1 we worked from our record backlog to deliver
VirTra’s first ever quarterly revenue performance in the
double-digit millions,” said Bob Ferris, chairman and co-CEO of
VirTra. “Simultaneously, our actions to improve internal processes
and streamline the overall business have significantly enhanced the
efficiency of our operations, leading to the strongest bottom-line
performance in the Company’s history. To build on our
market-leading position and expand our revenue pathways, we are
pursuing additional product and content development to make
VirTra’s training capabilities even stronger.”
John Givens, co-CEO of VirTra added: “We remain
committed to optimizing our business operations and driving
profitability while ramping up our sales efforts as we move into
the second quarter and beyond. While we are making strides in
clearing our backlog and fulfilling orders more efficiently, we
recognize that there are still many untapped opportunities in the
market, both domestic and international. To capitalize on this
potential, we are implementing sales initiatives to maximize our
market penetration and prioritize areas with the greatest growth
potential. We are focused on continued success in the coming
quarters as we execute our growth strategies."
First Quarter 2023 Financial Results
Total revenue increased 48% to $10.0 million
from $6.8 million in the first quarter of 2022. The increase in
revenue was the result of the deliveries of two major government
contracts and one large international contract.
Gross profit increased 88% to $6.9 million from
$3.7 million in the first quarter of 2022. Gross profit margin,
defined as total revenue less cost of sales, was 69.3%, an
improvement compared to 54.6% in the first quarter of 2022. The
increase in gross profit was primarily due to the increased sales
achieved while maintaining cost of sales in line with 2022 levels.
The increased gross margins resulted from the favorable product mix
of systems, accessories and services sold in the quarter.
Net operating expense was $3.5 million, compared
to $3.0 million in the first quarter of 2022. The increase in net
operating expenses was due to increased R&D expenses,
additional costs related to the Orlando facility and one-time costs
in payroll and related expenses.
Operating income increased by $2.8 million to
$3.5 million from $0.7 million in the first quarter of 2022.
Net income was $2.9 million, or $0.27 per
diluted share (based on 10.9 million weighted average diluted
shares outstanding), compared to net income of $0.6 million, or
$0.05 per diluted share (based on 10.8 million weighted average
diluted shares outstanding), in the first quarter of 2022.
Adjusted EBITDA, a non-GAAP metric, increased to
$4.0 million from $1.0 million in the first quarter of 2022.
Financial Commentary
"Our first quarter financial results represent
vast year-over-year improvements and demonstrate the success of our
ongoing efforts to drive growth and profitability," said CFO Alanna
Boudreau. “We achieved a strong gross profit margin of 69%, a
reflection of our focus on maintaining cost of sales while
effectively selling a favorable mix of simulators, accessories, and
services. Our record net income of $2.9 million and adjusted EBITDA
of $4.0 million highlight our ability to execute even amidst
operational transformations. These strong results put us on track
to meet our financial targets for 2023 and position us well for
continued success in the law enforcement and military simulator
markets."
Conference CallVirTra’s
management will hold a conference call today (May 15, 2023) at 4:30
p.m. Eastern time (1:30 p.m. Pacific time) to discuss these
results. VirTra’s chairman and co-CEO, Bob Ferris, co-CEO John
Givens and Chief Financial Officer Alanna Boudreau, will host the
call, followed by a question-and-answer period.
U.S. dial-in number: 1-877-407-9208International
number: 1-201-493-6784Conference ID: 13738125
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 Gateway Investor Relations at
949-574-3860.
The conference call will be broadcast
simultaneously and is available for replay here and via the
investor relations section of the company’s website.
A replay of the call will be available after
7:30 p.m. Eastern time on the same day through May 29, 2023.
Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
13738125
About VirTra, Inc.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
EBITDAAdjusted 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:
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
Increase |
|
|
% |
|
|
|
2023 |
|
|
2022 |
|
|
(Decrease) |
|
|
Change |
|
Net Income (Loss) |
|
$ |
2,946,373 |
|
|
$ |
577,074 |
|
|
$ |
2,369,299 |
|
|
|
411 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
641,345 |
|
|
|
124,000 |
|
|
|
517,345 |
|
|
|
417 |
% |
Depreciation and amortization |
|
|
227,570 |
|
|
|
215,746 |
|
|
|
11,824 |
|
|
|
5 |
% |
Interest (net) |
|
|
48,183 |
|
|
|
57,246 |
|
|
|
(9,063 |
) |
|
|
-16 |
% |
EBITDA |
|
$ |
3,863,471 |
|
|
$ |
974,066 |
|
|
$ |
2,889,405 |
|
|
|
296 |
% |
Right of use amortization |
|
|
121,774 |
|
|
|
79,853 |
|
|
|
41,921 |
|
|
|
52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
3,985,245 |
|
|
$ |
1,053,919 |
|
|
$ |
2,931,326 |
|
|
|
278 |
% |
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 and Tom ColtonGateway Group, Inc.
VTSI@gatewayir.com949-574-3860
-Financial Tables to Follow
VirTra, Inc. |
Condensed Balance Sheets |
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,257,735 |
|
|
$ |
13,483,597 |
|
Accounts receivable, net |
|
|
4,689,725 |
|
|
|
3,002,887 |
|
Inventory, net |
|
|
10,747,794 |
|
|
|
9,592,328 |
|
Unbilled revenue |
|
|
7,916,478 |
|
|
|
7,485,990 |
|
Prepaid expenses and other current assets |
|
|
532,726 |
|
|
|
531,051 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
38,144,458 |
|
|
|
34,095,853 |
|
|
|
|
|
|
|
|
|
|
Long-term
assets: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
15,208,876 |
|
|
|
15,267,133 |
|
Operating lease right-of-use asset, net |
|
|
1,091,040 |
|
|
|
1,212,814 |
|
Intangible assets, net |
|
|
582,151 |
|
|
|
587,777 |
|
Security deposits, long-term |
|
|
35,691 |
|
|
|
35,691 |
|
Other assets, long-term |
|
|
377,253 |
|
|
|
376,461 |
|
Deferred tax asset, net |
|
|
3,104,507 |
|
|
|
2,238,762 |
|
|
|
|
|
|
|
|
|
|
Total long-term assets |
|
|
20,399,518 |
|
|
|
19,718,638 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
58,543,976 |
|
|
$ |
53,814,491 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,568,651 |
|
|
$ |
1,251,240 |
|
Accrued compensation and related costs |
|
|
1,334,707 |
|
|
|
1,494,890 |
|
Accrued expenses and other current liabilities |
|
|
3,374,717 |
|
|
|
1,917,922 |
|
Note payable, current |
|
|
229,398 |
|
|
|
232,537 |
|
Operating lease liability, short-term |
|
|
565,949 |
|
|
|
557,683 |
|
Deferred revenue, short-term |
|
|
3,803,298 |
|
|
|
4,302,492 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
10,876,720 |
|
|
|
9,756,764 |
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
Deferred revenue, long-term |
|
|
2,345,698 |
|
|
|
1,605,969 |
|
Note payable, long-term |
|
|
7,992,612 |
|
|
|
8,050,116 |
|
Operating lease liability, long-term |
|
|
585,165 |
|
|
|
720,023 |
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
10,923,475 |
|
|
|
10,376,108 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
21,800,195 |
|
|
|
20,132,872 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(See Note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares
issued or outstanding |
|
|
- |
|
|
|
- |
|
Common stock $0.0001 par value; 50,000,000 shares authorized;
10,924,274 shares issued and outstanding as of March 31, 2023, and
10,900,759 shares issued and outstanding as of December 31,
2022 |
|
|
1,091 |
|
|
|
1,089 |
|
Class A common stock $0.0001 par value; 2,500,000 shares
authorized; no shares issued or outstanding |
|
|
- |
|
|
|
|
|
Class B common stock $0.0001 par value; 7,500,000 shares
authorized; no shares issued or outstanding |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
31,536,182 |
|
|
|
31,420,395 |
|
Retained earnings |
|
|
5,206,508 |
|
|
|
2,260,135 |
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
36,743,781 |
|
|
|
33,681,619 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
58,543,976 |
|
|
$ |
53,814,491 |
|
VirTra, Inc. |
Condensed Statements of Operations |
(Unaudited) |
|
|
|
Three Months Ended |
|
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
Revenue: |
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
10,026,935 |
|
|
$ |
6,753,228 |
|
Total Revenue |
|
|
10,026,935 |
|
|
|
6,753,228 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
3,077,997 |
|
|
|
3,066,138 |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
6,948,938 |
|
|
|
3,687,090 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
General and administrative |
|
|
2,711,337 |
|
|
|
2,296,392 |
|
Research and Development |
|
|
766,296 |
|
|
|
679,395 |
|
|
|
|
|
|
|
|
|
|
Net Operating expense |
|
|
3,477,633 |
|
|
|
2,975,787 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
3,471,305 |
|
|
|
711,303 |
|
|
|
|
|
|
|
|
|
|
Other Income (expense): |
|
|
|
|
|
|
|
|
Other Income |
|
|
183,642 |
|
|
|
54,323 |
|
Other Expense |
|
|
(67,229 |
) |
|
|
(64,552 |
) |
Net other income (expense) |
|
|
116,413 |
|
|
|
(10,229 |
) |
|
|
|
|
|
|
|
|
|
Income before provision for
income taxes |
|
|
3,587,718 |
|
|
|
701,074 |
|
|
|
|
|
|
|
|
|
|
Provision (Benefit) for income
taxes |
|
|
641,345 |
|
|
|
124,000 |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
2,946,373 |
|
|
$ |
577,074 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.27 |
|
|
$ |
0.05 |
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
10,917,311 |
|
|
|
10,807,269 |
|
Diluted |
|
|
10,919,391 |
|
|
|
10,850,376 |
|
VirTra, Inc. |
Condensed Statements of Cash Flows |
(Unaudited) |
|
|
|
Three Months Ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,946,373 |
|
|
$ |
577,074 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
227,570 |
|
|
|
215,746 |
|
Right of use amortization |
|
|
121,774 |
|
|
|
79,853 |
|
Employee stock compensation |
|
|
24,063 |
|
|
|
26,250 |
|
Stock issued for service |
|
|
75,000 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(1,686,838 |
) |
|
|
(1,242,273 |
) |
Inventory, net |
|
|
(1,155,466 |
) |
|
|
(1,933,137 |
) |
Deferred taxes |
|
|
(865,745 |
) |
|
|
(63,210 |
) |
Unbilled revenue |
|
|
(430,488 |
) |
|
|
(1,887,960 |
) |
Prepaid expenses and other current assets |
|
|
(1,675 |
) |
|
|
(20,391 |
) |
Other assets |
|
|
(792 |
) |
|
|
(186,727 |
) |
Accounts payable and other accrued expenses |
|
|
1,610,884 |
|
|
|
603,601 |
|
Operating lease liability |
|
|
(126,592 |
) |
|
|
(83,399 |
) |
Deferred revenue |
|
|
240,535 |
|
|
|
798,319 |
|
Net cash (used in) operating
activities |
|
|
978,603 |
|
|
|
(3,116,254 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
|
- |
|
|
|
(51,644 |
) |
Purchase of property and equipment |
|
|
(163,441 |
) |
|
|
(804,433 |
) |
Net cash provided by (used in)
investing activities |
|
|
(163,441 |
) |
|
|
(856,077 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Principal payments of debt |
|
|
(57,750 |
) |
|
|
(57,975 |
) |
Stock options exercised |
|
|
16,726 |
|
|
|
7,975 |
|
Net cash (used in) financing
activities |
|
|
(41,024 |
) |
|
|
(50,000 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and restricted cash |
|
|
774,138 |
|
|
|
(4,022,331 |
) |
Cash and restricted cash,
beginning of period |
|
|
13,483,597 |
|
|
|
19,708,565 |
|
Cash and restricted cash, end
of period |
|
$ |
14,257,735 |
|
|
$ |
15,686,234 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of
cash flow information: |
|
|
|
|
|
|
|
|
Cash (refunded) paid: |
|
|
|
|
|
|
|
|
Income taxes paid (refunded) |
|
$ |
- |
|
|
$ |
99,035 |
|
Interest paid |
|
|
3,345 |
|
|
|
63,776 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Conversion of inventory to property and equipment |
|
$ |
- |
|
|
$ |
75,976 |
|
Virtra (NASDAQ:VTSI)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Virtra (NASDAQ:VTSI)
Gráfica de Acción Histórica
De May 2023 a May 2024