Quarterly Revenue Increases 54% Year-Over-Year to
Quarterly Net Income Increases by
Third Quarter 2023 Financial Highlights:
- Total revenue increased 54% to
$7.6 million - Gross profit increased 114% to
$5.4 million , or 71% of total revenue - Net income increased by
$2.4 million to$1.6 million - Adjusted EBITDA increased to
$2.9 million - Cash and cash equivalents of
$17.2 million atSeptember 30, 2023
Nine Month 2023 Financial Highlights:
- Total revenue increased 42% to
$27.9 million - Gross profit increased 67% to
$18.3 million , or 65% of total revenue - Net income increased by
$5.0 million to$5.6 million - Adjusted EBITDA increased to
$9.4 million
Third Quarter and Nine Month 2023 Financial Highlights:
For the Three Months Ended | For the Nine Months Ended | ||||||||||
All figures in millions, except per share data | % Δ | % Δ | |||||||||
Total Revenue | 54% | 42% | |||||||||
Gross Profit | 114% | 67% | |||||||||
Gross Margin | 71% | 51% | N/A | 65% | 56% | N/A | |||||
Net Income (Loss) | ( | N/A | N/A | ||||||||
Diluted EPS | ( | N/A | N/A | ||||||||
Adjusted EBITDA | ( | N/A | N/A |
Management Commentary
"Building on our record-breaking first half, we’ve made further strides in improving our operations and sales activity this quarter, resulting in a robust 54% increase in quarterly revenue,” said
“The changes we’ve made to our sales methodology, compensation, and territory structuring are set to deliver substantial results in the near term and will continue to compound over the coming years. As part of these sales enhancements, we’ve expanded our team to boost customer success and enable our salesforce to focus on driving new business. This concerted effort, combined with our sustained success in the law enforcement market and the solid early progress achieved in key military contracts, positions
“Furthermore, our focus on developing industry-leading technology continues to unlock long-term value. In Q3, we unveiled V-XR®, our extended reality training solution, to our product portfolio. This strategic addition prioritizes the development of essential interpersonal skills crucial for law enforcement professionals, enabling them to navigate sensitive situations, de-escalate conflicts, and build trust with their communities. By integrating soft skills training into our curriculum, we aim to provide law enforcement professionals with the tools and knowledge needed for more meaningful and effective community engagement. Emphasizing empathy, communication, and cultural awareness, V-XR® sets a new industry standard and maintains a competitive price point, making it accessible to law enforcement agencies, large and small. Strong pre-order demand signals its potential as a gateway to larger simulator sales. We’ve also streamlined aspects of our simulators, ensuring easier access to control computers while reducing assembly costs and time. These enhancements, combined with ongoing content updates, further solidify our position as the market leader in training technology.”
Third Quarter 2023 Financial Results
Total revenue increased 54% to
Gross profit increased 114% to
Net operating expense was
Operating income increased by
Net income was
Adjusted EBITDA, a non-GAAP metric, increased to
Nine Months Ended
Total revenue increased 42% to
Gross profit increased 67% to
Net operating expense was
Operating income jumped to
Net income was
Adjusted EBITDA, a non-GAAP metric, increased to
Financial Commentary
“The third quarter was highlighted by sustained revenue growth and significant profitability improvements,” said VirTra CFO
Conference Call
VirTra’s management will hold a conference call today (
International number: 1-201-493-6784
Conference ID: 13742019
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 live and available for replay here and via the investor relations section of the Company’s website.
A replay of the call will be available after
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13742019
About
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.
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
Increase | % | Increase | % | ||||||||||||||||||||||||||||
2023 | 2022 | (Decrease) | Change | 2023 | 2022 | (Decrease) | Change | ||||||||||||||||||||||||
Net Income | $ | 1,634,790 | $ | (802,881 | ) | $ | 2,437,671 | 304 | % | $ | 5,607,804 | $ | 561,567 | $ | 5,046,237 | 899 | % | ||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Provision for income taxes | 244,316 | (222,683 | ) | 466,999 | 210 | % | 1,863,150 | 148,001 | 1,715,149 | 1159 | % | ||||||||||||||||||||
Depreciation and amortization | 121,054 | 423,069 | (302,015 | ) | -71 | % | 602,535 | 659,775 | (57,240 | ) | -9 | % | |||||||||||||||||||
Interest (net) | 23,957 | - | 23,957 | 100 | % | 133,377 | - | 133,377 | 100 | % | |||||||||||||||||||||
EBITDA | $ | 2,024,117 | $ | (602,495 | ) | $ | 2,626,612 | 436 | % | $ | 8,206,866 | $ | 1,369,343 | $ | 6,837,523 | 499 | % | ||||||||||||||
Right of use amortization | 843,042 | 131,221 | 711,821 | 542 | % | 1,209,397 | 291,879 | 917,518 | 314 | % | |||||||||||||||||||||
Adjusted EBITDA | $ | 2,867,159 | $ | (471,274 | ) | $ | 3,338,433 | 708 | % | $ | 9,416,263 | $ | 1,661,222 | $ | 7,755,041 | 467 | % |
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
Investor Relations Contact:
VTSI@gateway-grp.com
949-574-3860
- Financial Tables to Follow - | |||||||
CONDENSED BALANCE SHEETS | |||||||
2023 | 2022 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 17,201,178 | $ | 13,483,597 | |||
Accounts receivable, net | 14,134,515 | 3,002,887 | |||||
Inventory, net | 10,775,630 | 9,592,328 | |||||
Unbilled revenue | 2,998,700 | 7,485,990 | |||||
Prepaid expenses and other current assets | 1,310,589 | 531,051 | |||||
Total current assets | 46,420,612 | 34,095,853 | |||||
Long-term assets: | |||||||
Property and equipment, net | 15,096,353 | 15,267,133 | |||||
Operating lease right-of-use asset, net | 843,042 | 1,212,814 | |||||
Intangible assets, net | 569,762 | 587,777 | |||||
Security deposits, long-term | 35,691 | 35,691 | |||||
Other assets, long-term | 201,670 | 376,461 | |||||
Deferred tax asset, net | 5,361,667 | 2,238,762 | |||||
Total long-term assets | 22,108,185 | 19,718,638 | |||||
Total assets | $ | 68,528,797 | $ | 53,814,491 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,386,038 | $ | 1,251,240 | |||
Accrued compensation and related costs | 1,381,507 | 1,494,890 | |||||
Accrued expenses and other current liabilities | 5,936,871 | 1,917,922 | |||||
Note payable, current | 207,220 | 232,537 | |||||
Operating lease liability, short-term | 578,517 | 557,683 | |||||
Deferred revenue, short-term | 7,738,550 | 4,302,492 | |||||
Total current liabilities | 17,228,703 | 9,756,764 | |||||
Long-term liabilities: | |||||||
Deferred revenue, long-term | 3,446,423 | 1,605,969 | |||||
Note payable, long-term | 7,872,784 | 8,050,116 | |||||
Operating lease liability, long-term | 307,086 | 720,023 | |||||
Total long-term liabilities | 11,626,293 | 10,376,108 | |||||
Total liabilities | 28,854,996 | 20,132,872 | |||||
Stockholders’ equity: | |||||||
Preferred stock | - | - | |||||
Common stock | 1,094 | 1,089 | |||||
Class A common stock | - | - | |||||
Class B common stock | - | - | |||||
Additional paid-in capital | 31,804,768 | 31,420,395 | |||||
Retained earnings | 7,867,939 | 2,260,135 | |||||
Total stockholders’ equity | 39,673,801 | 33,681,619 | |||||
Total liabilities and stockholders’ equity | $ | 68,528,797 | $ | 53,814,491 |
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Revenue: | |||||||||||||||
$ | 7,561,582 | $ | 4,903,397 | $ | 27,925,420 | $ | 19,654,008 | ||||||||
Total Revenue | 7,561,582 | 4,903,397 | 27,925,420 | 19,654,008 | |||||||||||
Cost of sales | 2,175,508 | 2,387,307 | 9,669,708 | 8,707,096 | |||||||||||
Gross Profit | 5,386,074 | 2,516,090 | 18,255,712 | 10,946,912 | |||||||||||
Operating Expenses: | |||||||||||||||
General and administrative | 3,229,075 | 2,900,100 | 9,220,751 | 8,281,543 | |||||||||||
Research and Development | 487,388 | 687,890 | 1,965,438 | 1,984,343 | |||||||||||
Net Operating expense | 3,716,463 | 3,587,990 | 11,186,189 | 10,265,886 | |||||||||||
Income from operations | 1,669,611 | (1,071,900 | ) | 7,069,523 | 681,026 | ||||||||||
Other Income (expense): | |||||||||||||||
Other Income | 233,521 | 112,571 | 625,761 | 223,950 | |||||||||||
Other Expense | (24,026 | ) | (66,235 | ) | (224,330 | ) | (195,408 | ) | |||||||
Net other income (expense) | 209,495 | 46,336 | 401,431 | 28,542 | |||||||||||
Income before provision for income taxes | 1,879,106 | (1,025,564 | ) | 7,470,954 | 709,568 | ||||||||||
Provision (Benefit) for income taxes | 244,316 | (222,683 | ) | 1,863,150 | 148,001 | ||||||||||
Net Income | $ | 1,634,790 | $ | (802,881 | ) | $ | 5,607,804 | $ | 561,567 | ||||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.15 | $ | (0.07 | ) | $ | 0.51 | $ | 0.05 | ||||||
Diluted | $ | 0.15 | $ | (0.07 | ) | $ | 0.51 | $ | 0.05 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 10,934,962 | 10,867,745 | 10,924,486 | 10,850,912 | |||||||||||
Diluted | 10,942,509 | 10,867,745 | 10,929,155 | 10,870,842 |
CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Nine Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 5,607,804 | $ | 561,567 | |||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 701,536 | 659,775 | |||||
Right of use amortization | 369,772 | 291,879 | |||||
Stock issued for service | 342,475 | 444,025 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (11,131,628 | ) | 1,578,205 | ||||
Interest receivable | - | - | |||||
Inventory, net | (1,183,302 | ) | (4,755,126 | ) | |||
Deferred taxes | (3,122,905 | ) | 112,377 | ||||
Unbilled revenue | 4,487,290 | (158,905 | ) | ||||
Prepaid expenses and other current assets | (779,538 | ) | 235,824 | ||||
Other assets | 174,791 | (186,727 | ) | ||||
Security deposits, long-term | - | (15,979 | ) | ||||
Accounts payable and other accrued expenses | 4,015,047 | 137,762 | |||||
Payments on operating lease liability | (392,103 | ) | (291,039 | ) | |||
Deferred revenue | 5,276,512 | (66,237 | ) | ||||
Net cash provided by (used in) operating activities | 4,365,751 | (1,452,599 | ) | ||||
Cash flows from investing activities: | |||||||
Purchase of intangible assets | - | (120,016 | ) | ||||
Purchase of property and equipment | (512,249 | ) | (2,324,058 | ) | |||
Net cash (used in) investing activities | (512,249 | ) | (2,444,074 | ) | |||
Cash flows from financing activities: | |||||||
Principal payments of debt | (177,824 | ) | (172,589 | ) | |||
Stock issued for options exercised | 41,903 | 33,851 | |||||
Net cash (used in) financing activities | (135,921 | ) | (138,738 | ) | |||
Net increase (decrease) in cash and restricted cash | 3,717,581 | (4,035,411 | ) | ||||
Cash and restricted cash, beginning of period | 13,483,597 | 19,708,565 | |||||
Cash and restricted cash, end of period | $ | 17,201,178 | $ | 15,673,154 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash (refunded) paid: | $ | - | $ | 99,035 | |||
Income taxes paid (refunded) | $ | - | $ | 128,507 | |||
Interest paid | $ | - | $ | - | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Addition of new lease and corresponding ROU asset and lease liability | $ | - | $ | 840,843 | |||
Conversion of inventory to property and equipment | $ | - | $ | 322,968 | |||
Source:
2023 GlobeNewswire, Inc., source