VirTra, Inc. (NASDAQ: VTSI)
(“VirTra”), a global provider of training simulators for
the law enforcement, military, educational and commercial markets,
reported results for the first quarter ended March 31, 2021. The
financial statements are available on VirTra’s website
and here.
First Quarter 2021 and Recent Highlights:
- Revenues increased 33% to $4.4 million
- Net income increased to $655,000 for the first quarter of
2021
- Adjusted EBITDA increased to $751,000
- Backlog increased 10% sequentially and 42% year-over-year to a
record $16.1 million as of March 31, 2021
- Subsequent to the quarter’s end, successfully executed a
registered direct offering, generating $18.0 million gross proceeds
for three million shares of common stock and increasing the
company’s cash and cash equivalents to approximately $23.7 million
as of May 17, 2021
First Quarter 2021 Financial Highlights:
All figures in millions, except per share data |
Q1 2021 |
|
Q1 2020 |
|
% Δ |
Total Revenue |
$4.4 |
|
$3.3 |
|
33% |
|
|
|
|
|
|
Gross Profit |
$2.6 |
|
$1.6 |
|
61% |
Gross Margin |
57.8% |
|
47.8% |
|
21% |
|
|
|
|
|
|
Net Income/Loss |
$0.7 |
|
($0.4) |
|
N/A |
Diluted EPS |
$0.08 |
|
($0.05) |
|
N/A |
Adjusted EBITDA |
$0.75 |
|
($0.33) |
|
N/A |
Management Commentary
“After completing a very successful 2020, we continued to build
on our momentum through the first quarter of 2021, delivering
another quarter of positive results as our sales and profits
increased,” said Bob Ferris, chairman and chief executive officer
of VirTra. “Financially, the quarter was highlighted by $4.4
million in revenue, net income of $655,000, and adjusted EBITDA of
$751,000, all of which are substantial improvements from the prior
year period. Perhaps most encouraging, while our revenues improved
33% year-over-year, our backlog increased 42% year-over-year and
10% sequentially to a record $16.1 million, which demonstrates that
demand for VirTra’s solutions is reaching new levels. To better
position VirTra to capitalize on opportunities to grow even
further, we raised $18 million in a direct offering subsequent to
the quarter’s end.
“With our current momentum and an enhanced balance sheet, we
believe our business has never been better positioned to grow than
it is today. Our pipeline is expanding, our sales are accelerating,
and the need for effective, certified training that improves skills
and saves lives in the real world shows no signs of diminishing. As
a result, we believe 2021 will be another strong year for our
business.”
First Quarter 2021 Financial Results
Total revenue increased 33% to $4.4 million from $3.3 million in
the first quarter of 2020. The increase in total revenue was due to
an increase in the number of simulators and accessories completed
and delivered, and therefore revenue recognized, compared to the
same period in 2020.
Gross profit increased 61% to $2.6 million (57.8% of total
revenue) from $1.6 million (47.8% of total revenue) in the first
quarter of 2020. The increase in gross profit was primarily due to
decreased costs, as well as differences in the product mix of
systems, accessories, and services sold.
Operating expense decreased 5% to $2.0 million from $2.1 million
in the first quarter of 2020. The decrease in operating expense was
mainly due to reduced selling and travel expenses, partially offset
by an increase in professional services expense.
Income from operations increased to $564,000 from a loss from
operations of $512,000 in the first quarter of 2020.
Net income totaled $655,000, or $0.08 per diluted share,
compared to a net loss of $389,000, or $(0.05) per diluted share,
in the first quarter of 2020.
Adjusted EBITDA increased to $751,000 from a loss of $326,000 in
the first quarter of 2020.
At December 31, 2020, backlog totaled approximately $16.1
million, compared to $14.6 million at December 31, 2020 and $11.3
million at March 31, 2020.
Accounts receivable and unbilled revenues totaled approximately
$8.9 million as of March 31, 2021, compared to $6.8 million at
December 31, 2020, an increase of $2.1 million. Cash and cash
equivalents totaled $5.0 million at March 31, 2021 compared to cash
and cash equivalents of $6.8 million at December 31, 2020, a change
of $1.8 million.
Subsequent to the quarter’s end, VirTra completed a registered
direct offering in which the company raised $18.0 million in gross
proceeds, before deducting expenses, for three million shares of
common stock. As a result, as of May 17, 2021, the company had
approximately $23.7 million in cash and cash equivalents and
10,777,530 shares outstanding.
Conference Call
VirTra’s management will hold a conference call today (May 17,
2021) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss
these results. VirTra’s chairman and CEO, Bob Ferris, and chief
accounting officer, Marsha Foxx, will host the call, followed by a
question and answer period.
U.S. dial-in number: 877-545-0320International number:
973-528-0016Conference code: 206857
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 VirTra’s IR team at
949-574-3860.
The conference call will be broadcast live and available for
replay here and via the investor relations section of the company’s
website.
A replay of the conference call will be available after 7:30
p.m. Eastern time on the same day through May 31, 2021.
Toll-free replay number: 877-481-4010International replay
number: 919-882-2331Replay ID: 41304
About VirTra
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 EBITDA
Adjusted 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 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Decrease) |
|
|
|
|
|
|
|
Net Income
(Loss) |
$ |
655,163 |
|
|
$ |
(389,410 |
) |
|
$ |
1,044,573 |
|
|
Adjustments: |
|
|
|
|
|
|
Provision for income taxes |
|
(77,163 |
) |
|
|
(103,000 |
) |
|
|
25,837 |
|
|
Depreciation and amortization |
|
97,290 |
|
|
|
89,676 |
|
|
|
7,614 |
|
EBITDA |
$ |
675,290 |
|
|
$ |
(402,734 |
) |
|
$ |
1,078,024 |
|
|
Right of use amortization |
|
76,209 |
|
|
|
72,843 |
|
|
|
3,366 |
|
|
Reserve for note receivable |
|
- |
|
|
|
3,639 |
|
|
|
(3,639 |
) |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
751,499 |
|
|
$ |
(326,252 |
) |
|
$ |
1,077,751 |
|
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 or Charlie Schumacher
VTSI@gatewayir.com949-574-3860
VirTra, Inc.Condensed
Balance Sheets
|
|
|
March 31, 2021 |
|
December 31, 2020 |
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,040,405 |
|
|
$ |
6,841,984 |
|
|
Accounts receivable, net |
|
|
2,650,045 |
|
|
|
1,378,270 |
|
|
Inventory,
net |
|
|
4,191,477 |
|
|
|
3,515,997 |
|
|
Unbilled
revenue |
|
|
6,259,020 |
|
|
|
5,408,598 |
|
|
Prepaid expenses and other
current assets |
|
|
704,226 |
|
|
|
382,445 |
|
|
|
|
|
|
|
|
Total current
assets |
|
|
18,845,173 |
|
|
|
17,527,294 |
|
|
|
|
|
|
|
Long-term
assets: |
|
|
|
|
|
Property and equipment,
net |
|
|
1,286,676 |
|
|
|
1,381,744 |
|
|
Operating lease right-of-use
asset, net |
|
|
1,018,318 |
|
|
|
1,094,527 |
|
|
Intangible assets,
net |
|
|
317,031 |
|
|
|
271,048 |
|
|
Security deposits,
long-term |
|
|
19,712 |
|
|
|
86,500 |
|
|
Other assets, long-term |
|
|
500,114 |
|
|
|
500,114 |
|
|
Deferred tax asset, net |
|
|
1,892,000 |
|
|
|
1,892,000 |
|
|
|
|
|
|
|
|
Total long-term
assets |
|
|
5,033,851 |
|
|
|
5,225,933 |
|
|
|
|
|
|
|
Total
assets |
|
$ |
23,879,024 |
|
|
$ |
22,753,227 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
976,969 |
|
|
$ |
345,573 |
|
|
Accrued compensation and
related costs |
|
|
979,026 |
|
|
|
843,101 |
|
|
Accrued expenses and other
current liabilities |
|
|
783,020 |
|
|
|
772,884 |
|
|
Note payable, current |
|
|
366,919 |
|
|
|
266,037 |
|
|
Operating lease liability,
short-term |
|
|
328,049 |
|
|
|
321,727 |
|
|
Deferred revenue,
short-term |
|
|
4,632,833 |
|
|
|
4,708,575 |
|
|
|
|
|
|
|
|
Total current
liabilities |
|
|
8,066,816 |
|
|
|
7,257,897 |
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
Deferred revenue,
long-term |
|
|
1,771,288 |
|
|
|
1,920,346 |
|
|
Note payable, long-term |
|
|
953,795 |
|
|
|
1,063,243 |
|
|
Operating lease liability,
long-term |
|
|
769,756 |
|
|
|
853,155 |
|
|
|
|
|
|
|
|
Total long-term
liabilities |
|
|
3,494,839 |
|
|
|
3,836,744 |
|
|
|
|
|
|
|
Total
liabilities |
|
|
11,561,655 |
|
|
|
11,094,641 |
|
|
|
|
|
|
|
Commitments and
contingencies (See Note 11) |
|
|
|
|
|
|
|
|
|
|
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;
7,777,530 shares issued and outstanding as of March 31, 2021
and 7,775,030 shares issued and outstanding as of December 31,
2020 |
|
778 |
|
|
|
778 |
|
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 |
|
|
13,897,280 |
|
|
|
13,893,660 |
|
Accumulated deficit |
|
|
(1,580,689 |
) |
|
|
(2,235,852 |
) |
|
|
|
|
|
|
Total stockholders' equity |
|
|
12,317,369 |
|
|
|
11,658,586 |
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
23,879,024 |
|
|
$ |
22,753,227 |
|
VirTra, Inc.Condensed
Statements of Operations(Unaudited)
|
|
|
Three Months Ended |
|
|
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
Net sales |
|
$ |
4,441,909 |
|
|
$ |
3,320,013 |
|
|
That's Eatertainment royalties/licensing fees, former related
party |
|
|
- |
|
|
|
16,740 |
|
|
Other royalties/licensing
fees |
|
|
- |
|
|
|
1,410 |
|
|
Total revenue |
|
|
4,441,909 |
|
|
|
3,338,163 |
|
|
|
|
|
|
|
|
Cost of sales |
|
|
1,873,404 |
|
|
|
1,742,936 |
|
|
|
|
|
|
|
|
Gross profit |
|
|
2,568,505 |
|
|
|
1,595,227 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
General and
administrative |
|
|
1,710,233 |
|
|
|
1,777,376 |
|
|
Research and development |
|
|
294,217 |
|
|
|
329,755 |
|
|
|
|
|
|
|
|
Net operating expense |
|
|
2,004,450 |
|
|
|
2,107,131 |
|
|
|
|
|
|
|
|
Income from operations |
|
|
564,055 |
|
|
|
(511,904 |
) |
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
Other income |
|
|
16,379 |
|
|
|
19,495 |
|
|
Other expense |
|
|
(2,434 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
Net other income |
|
|
13,945 |
|
|
|
19,494 |
|
|
|
|
|
|
|
|
Income before provision for
income taxes |
|
|
578,000 |
|
|
|
(492,410 |
) |
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
(77,163 |
) |
|
|
(103,000 |
) |
|
|
|
|
|
|
Net income
(loss) |
|
$ |
655,163 |
|
|
$ |
(389,410 |
) |
|
|
|
|
|
|
Net income (loss)
per common share: |
|
|
|
|
|
Basic |
|
$ |
0.08 |
|
|
$ |
(0.05 |
) |
|
Diluted |
|
$ |
0.08 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
Basic |
|
|
7,775,212 |
|
|
|
7,745,363 |
|
|
Diluted |
|
|
7,835,830 |
|
|
|
7,745,363 |
|
VirTra, Inc.Condensed
Statements of Cash Flows(Unaudited)
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
Net Income
(loss) |
|
$ |
655,163 |
|
|
$ |
(389,410 |
) |
|
Adjustments to reconcile net income (loss) to net cash (used in)
provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
97,290 |
|
|
|
89,676 |
|
|
|
Right of use amortization |
|
|
76,209 |
|
|
|
72,843 |
|
|
|
Reserve for note
receivable |
|
|
- |
|
|
|
3,639 |
|
|
|
Deferred taxes |
|
|
- |
|
|
|
(103,000 |
) |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(1,271,775 |
) |
|
|
(1,063,062 |
) |
|
|
That's Eatertainment note
receivable, net, related party |
|
|
- |
|
|
|
(3,639 |
) |
|
|
Interest receivable |
|
|
- |
|
|
|
588 |
|
|
|
Inventory, net |
|
|
(675,480 |
) |
|
|
(195,672 |
) |
|
|
Unbilled revenue |
|
|
(850,422 |
) |
|
|
1,758,306 |
|
|
|
Prepaid expenses and other
current assets |
|
|
(321,781 |
) |
|
|
(117,453 |
) |
|
|
Other assets |
|
|
- |
|
|
|
17,677 |
|
|
|
Security deposits,
long-term |
|
|
66,788 |
|
|
|
- |
|
|
|
Accounts payable and other
accrued expenses |
|
|
777,457 |
|
|
|
142,705 |
|
|
|
Payments on operating lease
liability |
|
|
(77,077 |
) |
|
|
(71,139 |
) |
|
|
Deferred revenue |
|
|
(224,800 |
) |
|
|
581,305 |
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities |
|
|
(1,748,428 |
) |
|
|
723,364 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Redemption of
certificates of deposit |
|
|
- |
|
|
|
1,195,000 |
|
|
Purchase of
intangible assets |
|
|
(48,205 |
) |
|
|
(23,187 |
) |
|
Purchase of
property and equipment |
|
|
- |
|
|
|
(196,897 |
) |
Net cash (used in)
provided by investing activities |
|
|
(48,205 |
) |
|
|
974,916 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Repurchase of
stock options |
|
|
- |
|
|
|
(2,778 |
) |
|
Stock options
exercised |
|
|
3,620 |
|
|
|
6,300 |
|
|
Note payable-PPP
Loan |
|
|
(8,566 |
) |
|
|
- |
|
Net cash (used in)
provided by financing activities |
|
|
(4,946 |
) |
|
|
3,522 |
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash |
|
|
(1,801,579 |
) |
|
|
1,701,802 |
|
Cash, beginning of
period |
|
|
6,841,984 |
|
|
|
1,415,091 |
|
Cash, end of
period |
|
$ |
5,040,405 |
|
|
$ |
3,116,893 |
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
Cash (refunded)
paid: |
|
|
|
|
|
Taxes refunded |
|
$ |
(77,163 |
) |
|
$ |
- |
|
|
Interest paid |
|
|
2,434 |
|
|
|
- |
|
Virtra (NASDAQ:VTSI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Virtra (NASDAQ:VTSI)
Historical Stock Chart
From Apr 2023 to Apr 2024