EMPE, Ariz., May 13, 2016 (GLOBE NEWSWIRE) — VirTra Systems, Inc. (OTC Pink:VTSI), a leading provider of use of force simulatorsand firearms training simulators, today announced its financial results for the first quarter ended March 31, 2016. The financial statements are available on VirTra’s website and here.
First Quarter 2016 Financial Highlights:
- Net sales of $6.2 million
- Gross profit of $4.1 million
- Gross profit margin of 66%
- Net income of $2.4 million
“We are pleased to announce that our first quarter performance delivered a substantial increase in revenue growth and profitability,” said Bob Ferris, Chairman and Chief Executive Officer of VirTra. “The success we have achieved through our disciplined approach to operations, and our focus on new and emerging opportunities for our products, has translated into record financial metrics, including revenues, margins and profitability. We still have much to accomplish, as world-wide, there are many with lethal force responsibility who still lack access to quality training scenarios and simulators. We are excited about the opportunities that lie ahead for our business and for our shareholders as we pursue our long term plans for growth and market liquidity.”
First Quarter Results for the Three Months Ended March 31, 2016
Net sales were $6.2 million in the quarter, an increase of 141%, compared to $2.6 million for the first quarter of 2015.
Gross profit was $4.1 million for the quarter, an increase of 173%, compared to $1.5 million for the first quarter of 2015.
Gross margin for the quarter was 66%, compared to 59% for the first quarter of 2015. The year-over-year increase in gross margin was primarily due to increased sales volume.
Selling, general and administrative expenses were $1.7 million for the quarter, compared to $1.5 million in the first quarter of 2015. The higher expenses were primarily due to an increase in workforce to support the growth in revenues.
Operating income for the quarter was $2.4 million, compared to $0.1 million in the first quarter of 2015. The increase in operating income was primarily due to increased sales volume.
Net income was $2.4 million for the quarter, or $0.01 per basic share, compared to $0.2 million, or break-even per basic share, for the first quarter of 2015.
Stockholders’ equity increased to $6.8 million at March 31, 2016, an increase of 130%, compared to $2.9 million at March 31, 2015.
The Company had no outstanding debt as of March 31, 2016.
Cash and cash equivalents were $3.1 million at March 31, 2016, compared to $1.3 million at March 31, 2015.
Mark Skidmore, Vice President and Chief Accounting Officer for VirTra, said, “Our record first quarter performance is the direct result of our successful sales efforts and continued reinvestment into effective simulation products, all backed up by exceptional customer support. We remain confident that we have both the right products and teams necessary to continue our success into the future. While we understand that sales cycles and market conditions will impact our quarterly revenues and profitability, we nonetheless believe that the future of our company remains strong.”
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.
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.