SOURCE: VirTra Systems, Inc.

VirTra Systems, Inc.

May 15, 2014 08:00 ET

VirTra Releases 2014 First Quarter Financial Results

TEMPE, AZ--(Marketwired - May 15, 2014) - VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today announced the release of its unaudited 2014 first quarter financial statements. The financial statements are available on VirTra's website and here.

Financial Summary:

  • Net Sales were $2.0 million for the quarter ending March 31, 2014, a decrease of $0.5 million, or 20%, compared to the previous year's first quarter sales of $2.5 million. The decrease is consistent with the volatility between quarters.

  • Gross margin for the first quarter 2014 was 62% of Net Sales, compared to 70% last year. The drivers for the decrease are primarily due to timing of product shipments in the pipeline to customers and corresponding leverage of fixed overhead.

  • Sales, general and administrative (SG&A) expenses of $1.0 million in Q1 2014 decreased 20%, from $1.2 million in Q1 2013. As a percent of revenue, SG&A was 50% for Q1 2014 compared to 48% in Q1 2013.

  • Income from operations were $0.2 million for the quarter ending March 31, 2014, a decrease of $0.3 million, compared to income from operations of $0.5 million in Q1 2013.

  • Throughout Q1 2014, the Company used $0.7 million in cash from operating activities by fulfilling orders secured by deposits. Cash and cash equivalents were $1.6 million at the end of Q1 2014, down from $2.4 million at December 31, 2013.

  • The Company has no draw upon the line of credit as of March 31, 2014.

Bob Ferris, Chief Executive Officer of VirTra, commented, "The first quarter 2014 results of $2 million in sales and $238,000 of net income are positive and in-line with quarterly fluctuations. Our management team has worked extremely hard to position the Company for continued growth as an industry leader in firearms simulators."

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.

www.VirTra.com

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 SHEETS as of:

             
             
    March 31,
2014
    December 31,
2013
 
    (unaudited)     (audited)  
Assets        
Current assets:                
  Cash and cash equivalents   $ 1,605,084     $ 2,358,955  
  Accounts receivable     651,734       786,877  
  Inventory     572,356       407,434  
  Prepaid expenses and other current assets     107,734       44,902  
  Total current assets     2,936,908       3,598,168  
Property and equipment, net     423,489       460,513  
Total assets   $ 3,360,397     $ 4,058,681  
                 
Liabilities and Stockholders' Equity          
                 
Current liabilities:                
  Accounts payable   $ 282,897     $ 289,820  
  Accrued compensation and related costs     317,020       588,097  
  Accrued expenses and other current liabilities     159,108       153,875  
  Deferred revenue     839,863       1,516,792  
  Total current liabilities     1,598,888       2,548,584  
Long-term liabilities:                
  Accrued rent liability - long-term     132,586       144,990  
Total liabilities     1,731,474       2,693,574  
                 
Commitments and contingencies                
Stockholders' equity:                
  Preferred stock $0.005 par value; 2,000,000 shares authorized; no shares issued or outstanding as of December 31, 2013 and 2012    
-
     
-
 
  Common stock $0.005 par value; 500,000,000 shares authorized; 158,328,245 shares issued and 158,285,045 shares outstanding as of December 31, 2013 and 2012, respectively    

791,641
     

791,641
 
  Additional paid-in capital     13,169,477       13,144,044  
  Treasury stock at cost, 43,200 common shares as ofDecember 31, 2013 and 2012, respectively    
(2,981
)    
(2,981
)
  Accumulated deficit     (12,329,214 )     (12,567,597 )
  Total stockholders' equity     1,628,923       1,365,107  
Total liabilities and stockholders' equity   $ 3,360,397     $ 4,058,681  
                 
                 

VIRTRA SYSTEMS, INC. STATEMENTS OF OPERATIONS for the period:

           
           
    Three months ended March 31,  
    2014   2013  
               
Net revenues   $ 1,961,650   $ 2,489,666  
Cost of products sold     751,192     752,427  
Gross margin     1,210,458     1,737,239  
General and administrative expenses     972,882     1,203,879  
Income from operations     237,576     533,360  
Other income/(expense):              
  Other income     807     28  
  Other expense     -     (3,411 )
Net other income/(expense)     807     (3,383 )
Income before income taxes     238,383     529,977  
Income tax expense/(benefit)     -     -  
Net income   $ 238,383   $ 529,977  
Weighted average of common and common equivalent shares outstanding:              
  -Basic     158,285,045     158,285,045  
Net income per common and common equivalent share:              
  -Basic   $ 0.00   $ 0.00  
               
               

VIRTRA SYSTEMS, INC. STATEMENTS OF STOCKHOLDERS' (DEFICIT)/EQUITY for the period:

                               
                               
    Common stock                      
            Additional   Treasury     Accumulated        
    Shares   Amount   paid-in capital   Stock     Deficit     Total  
                                         
Balance at January 1, 2013   158,285,045   $ 791,641   $ 13,032,498   $ (2,981 )   $ (14,148,373 )   $ (327,215 )
Net income   -     -     -     -       1,580,776       1,580,776  
Stock-based compensation   -     -     111,546     -       -       111,546  
Balance at December 31, 2013   158,285,045     791,641     13,144,044     (2,981 )     (12,567,597 )     1,365,107  
Net income   -     -     -     -       238,383       238,383  
Stock-based compensation   -     -     25,433     -       -       25,433  
Balance at March 31, 2014   158,285,045   $ 791,641   $ 13,169,477   $ (2,981 )   $ (12,329,214 )   $ 1,628,923  
                                         
                                         
                                         
                                         

VIRTRA SYSTEMS, INC. STATEMENTS OF CASH FLOWS for the period:

             
             
    Three months ended March 31,  
    2014     2013  
Cash flows from operating activities:                
Net income   $ 238,383     $ 529,977  
Adjustments to reconcile net income to net cashprovided by operating activities:                
  Depreciation and amortization     52,024       56,067  
  Stock-based compensation     25,433       26,598  
Changes in operating assets and liabilities:                
  Accounts receivable     135,143       (263,673 )
  Inventory     (164,922 )     (12,715 )
  Prepaid expenses and other assets     (62,832 )     791  
  Accounts payable and other accrued expenses     (285,171 )     30,434  
  Deferred revenue     (676,929 )     (551,119 )
Net cash provided by operating activities     (738,871 )     (183,640 )
Cash flows from investing activities:                
  Purchase of property and equipment     (15,000 )     (970 )
Net cash used in investing activities     (15,000 )     (970 )
Cash flows from financing activities:                
  Draws on line of credit     -       150,000  
  Repayments of line of credit     -       (150,000 )
  Payments on term loan     -       (19,843 )
Net cash provided by/(used in) financing activities     -       (19,843 )
Increase/(decrease) in cash and cash equivalents     (753,871 )     (204,453 )
Cash and cash equivalents, beginning of period     2,358,955       372,119  
Cash and cash equivalents, end of period   $ 1,605,084     $ 167,666  
Cash paid during the period for:                
Interest   $ 7,738     $ 2,668  
Taxes   $ -     $ -  
                 
                 

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