SOURCE: VirTra Systems, Inc.

VirTra Systems, Inc.

March 31, 2014 08:00 ET

VirTra Reports Record 2013 Revenue and Earnings

Announces Date for Annual Shareholders' Meeting

TEMPE, AZ--(Marketwired - Mar 31, 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 year end 2013 audited financial statements. Included with the corporate financial statements for the year ended December 31, 2013, VirTra has released the report of its independent registered public accounting firm, Semple Marchal & Cooper, LLP. The audited financial statements are available on VirTra's website and here.

Financial Summary:

  • Net Sales were $9.8 million for the year ending December 31, 2013, an increase of $1.0 million, or 11%, compared to the previous year's sales of $8.8 million. The increase is mainly attributable to an increase in international sales.

  • Gross margin for 2013 was 66% of Net Sales, compared to 63% last year. The drivers for the improvement are primarily due to the increase in sales and corresponding leverage of fixed overhead.

  • Sales, general and administrative (SG&A) expenses of $4.9 million in 2013 decreased 10%, from $5.4 million in 2012. As a percent of revenue, SG&A was 50% for 2013 compared to 61% in the prior year. The change is mainly due to a portion of SG&A resources assigned to client paid customization projects.

  • Income from operations increased $1.5 million in 2013, to $1.6 million compared to $0.1 million in 2012.

  • Throughout 2013, the Company generated $2.3 million in cash from operating activities. Cash and cash equivalents were $2.4 million at the end of 2013, up from $0.4 million at December 31, 2012. No stock options were exercised.

  • The Company has no draw upon the line of credit as of December 31, 2013. The Company completely paid down the commercial term loan during the third quarter of 2013, fulfilling all loan obligations.

Mark Skidmore, Vice President - Chief Accounting Officer of the Company, stated, "2013 was the strongest overall financial performance since the inception of the Company. We continue to focus on excellence in developing, manufacturing, supporting and selling the highest quality products to our customers."

Bob Ferris, Chief Executive Officer of VirTra, commented, "I'm very pleased to announce the significant progress VirTra achieved during 2013, reaching both record revenues and earnings while still heavily investing in future products and opportunities. We still have much to accomplish but 2013 reflected our concentrated effort on gaining market share for the benefit of our stakeholders."

VirTra will hold its 2014 Annual Shareholders' Meeting on Thursday May 1st in Tempe, Arizona. VirTra has determined the close of business on March 31, 2014 as the record date for determining the shareholders entitled to vote at the Annual Shareholders' Meeting. Notice of the meeting, full details and related materials will be mailed on or about April 11, 2014.

The Company does not plan to register with the Securities and Exchange Commission at this time. However, the Board of Directors is monitoring the situation regularly and is prepared to proceed with registration, if and when the Board deems it is in the best interests of all the shareholders.

About VirTra Systems

VirTra is a global leading provider of the world's most realistic and effective small arms 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. AUDITED BALANCE SHEET AS OF DECEMBER 31:
             
    2013     2012  
Assets  
Current assets:                
  Cash and cash equivalents   $ 2,358,955     $ 372,119  
  Accounts receivable     786,877       462,942  
  Inventory     407,434       370,019  
  Prepaid expenses and other current assets     44,902       65,558  
                   
  Total current assets     3,598,168       1,270,638  
                 
Property and equipment, net     460,513       612,380  
                 
Total assets   $ 4,058,681     $ 1,883,018  
                 
Liabilities and Stockholders' Equity/(Deficit)  
                 
Current liabilities:                
  Accounts payable   $ 289,820     $ 227,331  
  Accrued compensation and related costs     588,097       335,879  
  Accrued expenses and other current liabilities     153,875       118,081  
  Term loan - short-term     -       80,499  
  Deferred revenue     1,516,792       1,173,449  
                   
  Total current liabilities     2,548,584       1,935,239  
                 
Long-term liabilities:                
  Term loan - long-term     -       143,636  
  Accrued rent liability - long-term     144,990       131,358  
                 
Total liabilities     2,693,574       2,210,233  
                 
Commitments and contingencies                
                 
Stockholders' equity/(deficit):                
  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     13,144,044       13,032,498  
  Treasury stock at cost, 43,200 common shares as of December 31, 2013 and 2012, respectively.     (2,981 )     (2,981 )
  Accumulated deficit     (12,567,597 )     (14,148,373 )
                   
  Total stockholders' equity/(deficit)     1,365,107       (327,215 )
                 
Total liabilities and stockholders' equity/(deficit)   $ 4,058,681     $ 1,883,018  
                 
   
   
VIRTRA SYSTEMS, INC. AUDITED STATEMENT OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31:  
             
    2013     2012  
                 
Net revenues   $ 9,819,519     $ 8,829,555  
                 
Cost of products sold     3,361,307       3,280,211  
                 
Gross margin     6,458,212       5,549,344  
                 
General and administrative expenses     4,864,056       5,411,333  
                 
Income from operations     1,594,156       138,011  
                 
Other income/(expense):                
  Other income     847       2,203  
                   
  Other expense     (14,227 )     (26,818 )
                 
Net other income/(expense)     (13,380 )     (24,615 )
                 
Income before income taxes     1,580,776       113,396  
                 
Income tax expense/(benefit)     -       -  
                 
Net income   $ 1,580,776     $ 113,396  
                 
Weighted average of common and common equivalent shares outstanding:                
  -Basic     158,285,045       158,285,045  
  -Diluted     159,199,484       161,637,802  
                 
Net income per common and common equivalent share:                
  -Basic   $ 0.01     $ 0.00  
  -Diluted   $ 0.01     $ 0.00  
                   
                   
 
VIRTRA SYSTEMS, INC. AUDITED STATEMENT OF STOCKHOLDERS' EQUITY/(DEFICIT):
                               
    Common stock                      
            Additional                  
    Shares   Amount   paid-in capital   Treasury Stock     Accumulated Deficit     Total  
                                         
                                         
Balance at January 1, 2012   158,285,045   $ 791,641   $ 12,912,365   $ (2,981 )   $ (14,261,769 )   $ (560,744 )
                                         
Net income   -     -     -     -       113,396       113,396  
                                         
Stock-based compensation   -     -     120,133     -       -       120,133  
                                         
                                         
Balance at December 31, 2012   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  
   
   
VIRTRA SYSTEMS, INC. AUDITED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED DECEMBER 31:  
             
    2013     2012  
                 
Cash flows from operating activities:                
  Net income   $ 1,580,776     $ 113,396  
                   
  Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     218,059       227,492  
    Stock-based compensation     111,546       120,133  
  Changes in operating assets and liabilities:                
    Accounts receivable     (323,935 )     (97,222 )
    Inventory     (37,415 )     434,529  
    Prepaid expenses and other assets     20,656       91,622  
    Accounts payable and other accrued expenses     364,133       3,427  
    Deferred revenue     343,343       (813,713 )
    Due to related parties     -       (35,048 )
                 
Net cash provided by operating activities     2,277,163       44,616  
                 
Cash flows from investing activities:                
  Purchase of property and equipment     (66,192 )     (40,683 )
                 
Net cash used in investing activities     (66,192 )     (40,683 )
                 
Cash flows from financing activities:                
  Draws on line of credit     150,000       1,655,000  
  Repayments of line of credit     (150,000 )     (1,655,000 )
  Proceeds from term loan     -       250,000  
  Payments on term loan     (224,135 )     (25,865 )
  Purchase of common stock     -       -  
                 
Net cash provided by/(used in) financing activities     (224,135 )     224,135  
                 
Increase/(decrease) in cash and cash equivalents     1,986,836       228,068  
Cash and cash equivalents, beginning of period     372,119       144,051  
                 
Cash and cash equivalents, end of period   $ 2,358,955     $ 372,119  
                 
Cash paid during the period for:                
                 
Interest   $ 7,738     $ 24,429  
                 
Taxes   $ -     $ -  
                 
                 

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