VirTra, Inc. (NASDAQ: VTSI ) , a micro-cap U.S.-based company by market standards, makes immersive simulation training systems. These are used by law enforcement, military, and security personnel in various parts of the world. The company is known, at least withinThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap c ...

VirTra, Inc. (NASDAQ:VTSI) Q4 2024 Earnings Conference Call March 27, 2025 4:30 PM ET Company Participants John Givens ??? Chief Executive Officer Alanna Boudreau ??? Chief Financial Officer Conference Call Participants Jaeson Schmidt ??? Lake Street Capital Markets Richard Baldry ??? ROTH Capital Partners Operator Good afternoon, and welcome to VirTra’s Fourth Quarter and Full Year 2024 Earnings Call. My name is Diego, and I will be your operator for today’s call. Joining us for today’s presentation are th ...

Financial Performance - VirTra, Inc. reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.07, and a significant decline from earnings of $0.25 per share a year ago, representing an earnings surprise of -214.29% [1] - The company posted revenues of $5.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 33.25%, and down from $10.12 million in the same quarter last year [2] - Over the last four quarters, VirTra has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - VirTra shares have declined approximately 21.5% since the beginning of the year, contrasting with the S&P 500's decline of -2.9% [3] - The current Zacks Rank for VirTra is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $8.5 million, and for the current fiscal year, it is $0.58 on revenues of $39.16 million [7] - The trend of estimate revisions for VirTra is mixed, and changes in these estimates may occur following the recent earnings report [6] Industry Context - The Electronics - Military industry, to which VirTra belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenue for the fourth quarter was $5.4 million, a decrease of 50% compared to $10.9 million in the prior year period[3]. - For the full year 2024, total revenue was $26.4 million, a decline of 32% from $38.8 million in 2023[10]. - Total revenue for 2024 decreased to $26,350,819 from $38,791,337 in 2023, representing a decline of approximately 32%[30]. - Gross profit for the fourth quarter was $3.7 million, representing a gross margin of 68.5%, down from 84.4% in the prior year[3]. - Gross profit for 2024 was $19,412,515, down from $27,413,073 in 2023, indicating a decrease of about 29%[30]. - Net loss for the fourth quarter was $(0.9) million, or $(0.08) per diluted share, compared to net income of $3.5 million, or $0.32 per diluted share, in the fourth quarter of 2023[15]. - Net income for 2024 was $1,363,681, a significant drop from $9,150,835 in 2023, reflecting a decline of approximately 85%[30]. - Adjusted EBITDA for the fourth quarter was $(1.8) million, compared to $3.0 million in the fourth quarter of 2023[16]. Cash and Liquidity - Cash and cash equivalents were $18.0 million at December 31, 2024, providing a solid liquidity position[18]. - Cash and cash equivalents at the end of 2024 were $18,040,827, down from $18,849,842 at the end of 2023, a decrease of approximately 4%[32]. - The company reported a net cash provided by operating activities of $1,257,266 in 2024, down from $6,682,616 in 2023, a decline of approximately 81%[32]. Backlog and Bookings - Fourth quarter bookings increased by 37% sequentially to $12.2 million, with a significant portion recorded in December, positioning the company for revenue conversion in early 2025[6]. - Year-end backlog expanded to $22.0 million as of December 31, 2024, reflecting continued sales momentum despite federal funding delays[6]. Expenses and Liabilities - Operating expenses increased slightly to $17,416,184 in 2024 from $17,029,508 in 2023, showing an increase of about 2%[30]. - Total liabilities decreased to $19,762,198 in 2024 from $27,012,175 in 2023, representing a reduction of approximately 27%[30]. Research and Development - Research and development expenses increased to $3,003,302 in 2024 from $2,794,314 in 2023, an increase of about 7%[30]. Assets - Total assets decreased to $65,453,086 in 2024 from $70,382,019 in 2023, a decline of about 7%[30]. Federal Funding and Growth Outlook - The company is focused on expanding its role in federal law enforcement training initiatives and has secured contracts in Europe and Latin America[5]. - The company anticipates continued variability in federal funding cycles but remains optimistic about long-term growth in tactical training needs[9]. Share Information - The weighted average shares outstanding for basic shares increased to 11,162,917 in 2024 from 10,958,448 in 2023, an increase of about 2%[30].

Financial Performance - Revenues for the year ended December 31, 2024, were $26,350,819, a decrease of $12,440,518 or 32% compared to $38,791,337 in 2023, primarily due to delayed contract signings [105]. - Gross profit for 2024 was $19,412,515, down $8,000,558 or 29% from $27,413,073 in 2023, with a gross profit margin of 74% in 2024 compared to 71% in 2023 [107]. - Net income for 2024 was $1,363,681, representing a decrease of $7,787,154 or 85% from $9,150,835 in 2023, largely driven by the revenue decline [111]. - Adjusted EBITDA for 2024 was $2,926,169, a decrease of $9,447,710 or 76% from $12,373,879 in 2023 [112]. - Cash and cash equivalents as of December 31, 2024, were $18,040,827, down from $18,849,842 in 2023 [112]. - Net cash provided by operating activities decreased to $1,257,266 in 2024 from $6,682,616 in 2023, primarily due to lower net income [113]. Operating Expenses - Operating expenses increased by $386,676 or 2% to $17,416,184 in 2024, with R&D expenses rising by $208,988 or 7% [108]. Market Strategy - The Company plans to broaden its product offerings and enter new market segments through innovative products and services [101]. - VirTra aims to expand its total addressable market by targeting new customer types and enhancing marketing efforts [101]. - The Company is open to partnerships and acquisitions to optimize long-term growth and shareholder value [102]. Bookings and Backlog - The Company received bookings totaling $12.2 million for Q4 2024, bringing total bookings for the year to $29.6 million [117]. - The Company has a backlog of $22 million as of December 31, 2024, which includes $10.6 million in Capital, $6.6 million in Service, and $4.8 million in STEP [118]. - Management estimates that the majority of new bookings from Q4 2024 will convert to revenue in 2025, although contract terms and install dates may change [119]. - There are $5.3 million in renewable STEP contract options outstanding, with an expected 95% exercise rate based on current renewal rates [117]. - The Company has strengthened booking qualifications by ensuring STEP contracts are recorded for their full three-year value, adding $1.9 million to bookings [117]. Funding and Financial Strategy - The Company is open to raising additional funds from capital markets to expand production capacity and enhance sales and marketing efforts, but there is no assurance that financing will be available [121]. Regulatory and Economic Environment - The impact of the new federal administration on bookings for 2025 is uncertain, with discussions of budget cuts and frozen federal funding observed [120]. Accounting and Warranty - Revenue recognition is based on ASC 606, with revenue recognized when performance obligations are satisfied [129]. - The Company provides a one-year warranty on products, estimating warranty liabilities based on historical claims data [138]. - The Company employs a conservative approach to bad debt reserves, calculating a percentage of all outstanding accounts receivable [125].

Fourth Quarter Bookings Grow 37% Sequentially to $12.2 Million Year-End Backlog Expands to $22.0 Million CHANDLER, Ariz., March 27, 2025 (GLOBE NEWSWIRE) -- VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, reported results for the fourth quarter and full year ended December 31, 2024. The financial statements are available on VirTra’s website and here. Fourth ...

Company Performance - VirTra, Inc. (VTSI) closed at $5.16, reflecting a +0.39% change from the previous day, outperforming the S&P 500's daily loss of 1.07% [1] - The company's stock has decreased by 16.42% over the past month, underperforming the Aerospace sector's gain of 2.24% and the S&P 500's loss of 7.03% [1] Earnings Expectations - The upcoming earnings report for VirTra, Inc. is anticipated to show an EPS of $0.07, which represents a 72% decline from the same quarter last year [2] - Revenue is projected to be $8.09 million, indicating a 20.06% decrease compared to the previous year’s quarter [2] Analyst Estimates - Recent adjustments to analyst estimates for VirTra, Inc. are crucial as they reflect near-term business trends, with positive revisions being a favorable sign for the company's outlook [3] - The Zacks Rank system, which assesses estimate changes, indicates that stocks with a 1 rating have historically delivered an average annual return of +25% since 1988 [4][5] Industry Context - VirTra, Inc. operates within the Electronics - Military industry, which is part of the Aerospace sector and currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The strength of the industry is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [6]

Core Viewpoint - VirTra, Inc. will hold a conference call on March 27, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1] Group 1: Conference Call Details - The conference call is scheduled for March 27, 2025, at 4:30 p.m. Eastern time [2] - U.S. dial-in number is 1-877-407-9208, and international dial-in number is 1-201-493-6784 [2] - A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 10, 2025 [3] Group 2: Company Overview - VirTra is a global provider of judgmental use of force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets [3] - The company's technologies and software provide training for de-escalation, judgmental use-of-force, and marksmanship, simulating real-world situations [3] - VirTra's mission is to save and improve lives worldwide through effective virtual reality and simulator technology [3]

VirTra, Inc. (VTSI) ended the recent trading session at $6.03, demonstrating a -0.82% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow experienced a rise of 0.37%, and the technology-dominated Nasdaq saw a decrease of 1.35%.Coming into today, shares of the company had lost 4.55% in the past month. In that same time, the Aerospace sector lost 5.12%, while the S&P 500 lost 1.78%.Market participants will be closely following th ...

The latest trading session saw VirTra, Inc. (VTSI) ending at $6.10, denoting a -1.93% adjustment from its last day's close. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.Coming into today, shares of the company had lost 5.61% in the past month. In that same time, the Aerospace sector gained 4.66%, while the S&P 500 gained 4.19%.The upcoming earnings release of VirTra, Inc. will be of great interest to investors. The compan ...