VirTra Reports Earnings for 2Q
OREANDA-NEWS. VirTra Systems, Inc., a leading provider of use of force simulators and firearms training simulators, today announced its financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights:
- Net sales of $3.4 million
- Gross profit of $2.0 million
- Gross profit margin of 58%
- Net income of $0.1 million
Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented: “We generated $3.4 million in net sales for the second quarter and $9.6 million for the first half of 2016, our highest level of revenue for the first six months of the year in the Company’s history. Our continued strong results reflect the increasing demand for our simulation solutions both in the U.S. and throughout the world. In 2016, we have expanded our list of strategic customers to include such prominent government agencies as the U.S. State Department and the Australian Border Force. We believe that if we exceed our customers’ expectations on these projects, we will benefit from a 'knock-on' effect in our efforts to secure new business and grow our market share. We are excited about the upcoming annual meeting and the opportunities that lie ahead for our business and for our shareholders as we continue to pursue our long term plans for growth and market liquidity.”
Second Quarter Results for the Three Months Ended June 30, 2016
Net sales were $3.4 million in the quarter, an increase of 9%, compared to $3.1 million for the second quarter of 2015.
Gross profit was $2.0 million for the quarter, an increase of 17%, compared to $1.7 million for the second quarter of 2015.
Gross margin for the quarter was 58%, compared to 54% for the second quarter of 2015. The year-over-year increase in gross margin was primarily due to a shift in the mix of products and services that we delivered between the two periods.
Selling, general and administrative expenses were $1.9 million for the quarter, an increase of 31%, compared to $1.4 million in the second quarter of 2015. The increase was primarily due to a $0.4 million non-recurring expense based on the redemption of previously issued stock options that were approaching the end of their expiration term for employees still in good standing. Under the former CEO, the Board approved stock options committed to employees over the course of many years, the result being an unusually large number of stock options that would all expire on April 1, 2016. As of the June 30, 2016, all stock options approved under the former CEO have either been cancelled or redeemed.
Operating income for the quarter was $0.1 million, compared to $0.3 million in the second quarter of 2015. The decrease in operating income was primarily due to the higher selling, general and administrative expenses in the quarter, impacted by the $0.4 million non-recurring expense discussed above.
Net income was $0.1 million for the quarter, or break-even per basic share, compared to $0.2 million, or break-even per basic share, for the second quarter of 2015.
Stockholders’ equity increased to $6.9 million at June 30, 2016, an increase of 113%, compared to $3.2 million at June 30, 2015.
The Company had no outstanding debt as of June 30, 2016.
Cash and cash equivalents were $4.1 million at June 30, 2016, compared to $1.2 million at June 30, 2015.
Matt Burlend, Chief Operating Officer for VirTra, said, “Our record first half of 2016 performance is the direct result of delivering quality products to customers, driven by our increased investment in sales, marketing and research and development, combined with our excellent reputation for customer service. While we understand that sales cycles and market conditions will impact our quarterly revenues and profitability, we continue to believe that 2016 will be another strong year for VirTra.”
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.