TEMPE, Ariz., Aug. 14, 2015 (GLOBE NEWSWIRE) -- VirTra Systems (OTC Pink:VTSI), a leading provider of use-of-force and firearms simulators to military, law enforcement agencies and other organizations, today announced its results for the second quarter ended June 30, 2015. The financial statements are available on VirTra's website and here.
Second Quarter 2015 Financial Summary:
- Net sales were $3.1 million for the quarter ending June 30, 2015, up 48% compared to $2.1 million in the second quarter of 2014. Year-to-date net sales were $5.7 million through June 30, 2015, an increase of 40% compared to $4.1 million for the year ago period.
- Gross margin for the second quarter of both periods was 54%.
- SG&A expenses were $1.4 million, an increase of $0.3 million from $1.1 million in the same period last year. The higher expenses were primarily due to an increase in our workforce to support our increased business and potential future growth. In addition, the Company also increased its sales and marketing activity in both the U.S. and internationally compared to the second quarter of 2014.
- Net income was $0.2 million for the second quarter 2015, compared to $0.1 million for the second quarter 2014.
- Stockholders' equity increased to $3.2 million, up $0.5 million from $2.7 million at December 31, 2014. The Company had no outstanding debt as of June 30, 2015.
- Cash and cash equivalents were $1.2 million at June 30, 2015, compared to $1.9 million at December 31, 2014.
Other Information:
- In September 2014 the Department of Homeland Security selected VirTra for an approximate $6.0 million award. As of the end of the second quarter of 2015 approximately $2.3 million of revenue has been recognized under this contract. The Company expects to complete the remainder of the contract, but the exact timing is dependent on when the remaining customer locations are ready to receive the equipment.
Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented: "We generated $3.1 million in net sales for the second quarter and $5.7 million for the first half of 2015, our highest level of revenue for the first six months of the year in the Company's history. Our continued strong results reflect the increasing demand for our simulation solutions in the law enforcement and military marketplaces. Our revenues increased by $1.0 million from the second quarter of 2014, and our net income increased by $0.2 million, as we continue to invest in our infrastructure, leverage our proprietary and superior technology and execute on our goal to increase our market penetration. We are well positioned to deliver on our existing projects and to accommodate new business going forward."
Mark Skidmore, Vice President - Chief Accounting Officer for VirTra, said: "We have nearly $2.0 million of liquidity between our cash balances and our undrawn line of credit as we are focused on maintaining a strong balance sheet that will support our growth plans. We continue to be on track for a very strong 2015."
About VirTra Systems
VirTra is a global leading provider of the world's most realistic and effective shooting 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.
- - - -FINANCIALS FOLLOWING- - - -
| VIRTRA SYSTEMS, INC. BALANCE SHEET | ||
| June 30, 2015 | December 31, 2014 | |
| Assets | (unaudited) | (audited) |
| Current assets: | ||
| Cash and cash equivalents | $ 1,165,163 | $ 1,912,729 |
| Accounts receivable | 2,552,312 | 1,610,381 |
| Inventory | 1,117,229 | 702,829 |
| Prepaid expenses and other current assets | 56,370 | 58,124 |
| Total current assets | 4,891,074 | 4,284,063 |
| Property and equipment, net | 480,337 | 367,898 |
| Investment in Modern Round, LLC | 136,579 | -- |
| Total assets | $ 5,507,990 | $ 4,651,961 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 471,513 | $ 339,373 |
| Accrued compensation and related costs | 535,960 | 394,920 |
| Accrued expenses and other current liabilities | 155,064 | 147,904 |
| Deferred revenue | 949,366 | 952,464 |
| Total current liabilities | 2,111,903 | 1,834,661 |
| Long-term liabilities: | ||
| Accrued rent liability - long-term | 175,952 | 95,375 |
| Total liabilities | 2,287,855 | 1,930,036 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock $0.005 par value; 2,000,000 shares authorized; no shares issued or outstanding as of June 30, 2015 and December 31, 2014 | -- | -- |
| Common stock $0.005 par value; 500,000,000 shares authorized; 158,293,245 shares issued and 158,250,045 shares outstanding as of June 30, 2015; 158,328,245 shares issued and 158,285,045 shares outstanding as of Dec. 31, 2014 | 791,466 | 791,641 |
| Additional paid-in capital | 13,313,240 | 13,239,621 |
| Treasury stock at cost, 43,200 common shares as of June 30, 2015 and December 31, 2014, respectively | (2,981) | (2,981) |
| Accumulated deficit | (10,881,590) | (11,306,356) |
| Total stockholders' equity | 3,220,135 | 2,721,925 |
| Total liabilities and stockholders' equity | $ 5,507,990 | $ 4,651,961 |
| VIRTRA SYSTEMS, INC. STATEMENTS OF OPERATIONS (unaudited) | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net revenues | $ 3,109,976 | $ 2,107,014 | $ 5,694,772 | $ 4,068,664 |
| Cost of products sold | 1,425,712 | 966,087 | 2,498,263 | 1,717,279 |
| Gross profit | 1,684,264 | 1,140,927 | 3,196,509 | 2,351,385 |
| General and administrative expenses | 1,424,992 | 1,055,591 | 2,887,410 | 2,028,472 |
| Income from operations | 259,272 | 85,336 | 309,099 | 322,913 |
| Other income/(expense): | ||||
| Other income | 136 | 2,620 | 137,273 | 3,427 |
| Other expense | -- | -- | (2,064) | -- |
| Net other income | 136 | 2,620 | 135,209 | 3,427 |
| Income before income taxes | 259,408 | 87,956 | 444,308 | 326,340 |
| Income tax expense | 19,542 | -- | 19,542 | -- |
| Net income | $ 239,866 | $ 87,956 | $ 424,766 | $ 326,340 |
| Weighted average of common and common equivalent shares outstanding: | ||||
| -Basic | 158,250,045 | 158,285,045 | 158,250,045 | 158,285,045 |
| Net income per common and common equivalent share: | ||||
| -Basic | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| VIRTRA SYSTEMS, INC. STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||
| Common stock | ||||||
| Additional | Treasury | Accumulated | ||||
| Shares | Amount | paid-in capital | Stock | Deficit | Total | |
| Balance at January 1, 2014 | 158,285,045 | $ 791,641 | $ 13,144,044 | $ (2,981) | $ (12,567,597) | $ 1,365,107 |
| Net income | -- | -- | -- | -- | 1,261,241 | 1,261,241 |
| Stock-based compensation | -- | -- | 95,577 | -- | -- | 95,577 |
| Balance at December 31, 2014 | 158,285,045 | 791,641 | 13,239,621 | (2,981) | (11,306,356) | 2,721,925 |
| Net income | -- | -- | -- | -- | 424,766 | 424,766 |
| Issued shares canceled | (35,000) | (175) | (5,422) | -- | -- | (5,597) |
| Stock-based compensation | -- | -- | 79,041 | -- | -- | 79,041 |
| Balance at June 30, 2015 | 158,250,045 | $ 791,466 | $ 13,313,240 | $ (2,981) | $ (10,881,590) | $ 3,220,135 |
| VIRTRA SYSTEMS, INC. STATEMENTS OF CASH FLOWS (unaudited) | ||
| Six months ended June 30, | ||
| 2015 | 2014 | |
| Cash flows from operating activities: | ||
| Net income | $ 424,766 | $ 326,340 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Depreciation and amortization | 93,512 | 100,385 |
| Stock-based compensation | 73,444 | 46,352 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (941,931) | (319,817) |
| Inventory | (414,400) | (221,630) |
| Prepaid expenses and other current assets | 1,754 | (12,851) |
| Accounts payable and other accrued expenses | 360,917 | (273,460) |
| Deferred revenue | (3,098) | (1,024,944) |
| Net cash used in operating activities | (405,036) | (1,379,625) |
| Cash flows from investing activities: | ||
| Investment in Modern Round, LLC | (136,579) | -- |
| Purchase of property and equipment | (205,951) | (47,564) |
| Net cash used in investing activities | (342,530) | (47,564) |
| Cash flows from financing activities: | ||
| Draws on line of credit | -- | -- |
| Repayments of line of credit | -- | -- |
| Net cash used in financing activities | -- | -- |
| Decrease in cash and cash equivalents | (747,566) | (1,427,189) |
| Cash and cash equivalents, beginning of period | 1,912,729 | 2,358,955 |
| Cash and cash equivalents, end of period | $ 1,165,163 | $ 931,766 |
| Cash paid during the period for: | ||
| Interest | $ -- | $ -- |
| Taxes | $ 19,542 | $ -- |