VirTra(US:VTSI)2019-11-13 03:18Financial Data and Key Metrics Changes - Total revenue for Q3 2019 was $6.7 million, an 89% increase from $3.5 million in Q3 2018 [16] - EBITDA for Q3 2019 was $1.4 million, compared to $174,000 in Q3 2018 [21] - Net income for Q3 2019 was $937,000 or $0.12 per diluted share, compared to $61,000 or $0.01 per diluted share in Q3 2018 [19] - Gross profit for Q3 2019 increased 80% to $3.8 million, representing 55.9% of revenue, compared to 58.8% in Q3 2018 [17] - For the first nine months of 2019, total revenue decreased 18% to $12.8 million from $15.5 million in the same period of 2018 [16] Business Line Data and Key Metrics Changes - The increase in revenue for Q3 2019 was attributed to a higher number of simulators and accessories completed and delivered compared to Q3 2018 [16] - The introduction of driving simulators contributed significantly to revenue in Q3 2019, with initial orders recognized during the quarter [11][12] - The STEP program, while still a small portion of revenue, is progressing well and is expected to grow [35] Market Data and Key Metrics Changes - The backlog reached a record $11.3 million as of September 30, 2019, indicating strong future revenue potential [22] - Bookings for Q3 2019 totaled $7.8 million, reflecting a positive trend in contract signings [21] Company Strategy and Development Direction - The company aims to expand its presence in both current and new markets while enhancing its product offerings [11] - Recent advancements include the introduction of ultra-high definition simulators and the STEP program as a subscription alternative [15] - The company is focusing on building partnerships and conducting demos to enhance market presence [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong backlog and the potential for continued revenue growth [30] - The company has achieved 13 consecutive years of increasing revenues and aims to maintain this streak despite challenges [30] - Management remains cautiously optimistic about the military market, leveraging expertise gained from federal law enforcement contracts [29] Other Important Information - The company attended the IACP conference, showcasing new products and enhancing its reputation in the law enforcement training market [25][26] - Recent contract wins include significant orders from federal law enforcement agencies, indicating a growing market presence [27] Q&A Session Summary Question: Update on the STEP program and number of sign-ups - Management indicated that the STEP program is progressing well but remains a small revenue contributor, with no specific numbers provided at this time [35] Question: Availability of driving simulators on a pay-as-you-go method - Management confirmed that they are working on making driving simulators available through the STEP program [37]