Loading...
Docoh

VirTra (VTSI)

Participants
Brett Mass Hayden Investor Relations
Bob Ferris Chairman and Chief Executive Officer
Judy Henry Chief Financial Officer
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, ladies and gentlemen, and welcome to the VirTra Third Quarter 2017 Earnings Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Brett Mass, of Hayden IR. Sir, the floor is yours.

Brett Mass

Thank you, Operator. welcome VirTra's to earnings quarter like call. would everyone third to XXXX I today Chairman Bob Officer; the are Hosting call Ferris, Henry, Financial and Chief and Officer. Judy Executive Chief today's should a have By now copy you of press received release. not, at site company's www.virtra.com. it's available If the Web in release includes used also press of non-GAAP The measures financial reconciliation herein.

will of replay access webcast under site Company days tab. This can the financial Company's starting you Web third addition, Web quarter for on later the report being be recorded on the this and is In XX Company's the available Corporate section site Reports afternoon.

turn over forward-looking the statements. Before please I regarding read call take to a moment notice management, Company's the to

except or are and projections, to differ to During or these and does the undertake expectations actual otherwise this any forward-looking about uncertainties obligation about The materially markets, from products statements make future required the and management cause that webcast, statements update discuss Company subject which risks financial statements made. information, not as Company's results or to by may law. could the services forward-looking

and like prepared call to received email similar yours. is in Bob time Bob, by previous would will review webcasts, remarks the and have answer advanced the Following as I the floor permits. been to management turn questions now that to Ferris. over

Bob Ferris

all joining us. Thanks, Brett. Good call. morning and welcome to for earnings Thank VirTra's third quarter you XXXX

addition continued independent strong and improvements, strengthening that the multiple is an returns appearances our listing was NASDAQ quarter deliver set meet our media submitted in and our for results, and growing another to Highlights with with provide financial Board robust, customer corporate quarter increasing governance exposure tradeshow third order include business capabilities accomplishments are on and our I'm shareholders. we solutions to we The future for demand the our market application and pleased improvements profile, of wins, of for to significant new continue for our stage our which on our commitments, raising operational Directors improve the for report that the exchange. member, demand, VirTra.

to effective and In mission communities, skills tools giving most to honored believe be addition, we training and both continue to the our save to the provide simulator, that and military world's overarching them and public law their lives, is the serve to enforcement own.

products is Magazine of and by In increasing number driven that industry, impossible, be beyond. Forbs featured this and real ability use company scenarios the virtual replicate Our concept life-like of As standard virtual article "The I'm by our of about enforcement the law experience were published including highlighted training. training explosion unique XXXX an the in growth author optimistic hold reality increasingly in recently for opportunities would and our to reality become in in a applications, our being multi-screen its that difficult, to and not takes simulators life." if words, do

Specifically, out. our current results this prove

the with of from margin the quarter, During from the $XXX,XXX, revenue gross $XX,XXX than the income elevated consistent of XX% year-ago XX% of generated third for all we million year-ago in year quarter, of we was up for delivering quarter more $X.X profit long. and gross of million, the been net revenue margins have third up quarter. Net total loss $X.X the

no a $X.X with positive year-to-date, essentially million debt. Just of strong as flow operations sheet, generated continue important, we balance have from maintain and cash to

contracts totaling We new accessories $X.X training the more renewal the sale million service Protection. just simulator Border with Department of quarter were multiple our third the of Homeland expand systems business and during for and million healthy Security with that $X The totaling United footprint, of both U.S. for internationally. with contracts contract signed include domestically virtual the with the than and more over New wins, than Customs States $XXX,XXX. sales installation contracts multiple customers

use four at law entry Customs and international ports will major country. and day. of XX with world's training is of judgmental facilities than organizations employees, than airports, one the Border officers of be V-XXX With million Protection enforcement and located of largest people now a U.S. more their simulators XX,XXX more Our across the interact per

Our a high could any skills incredibly systems officers safe help effective to situations training controlled escalation quality while handle immersive and they the in stressful moment at those teaching cost prepare face manner.

law installed tremendous force. Louis to prepare we enforcement personnel like to Police in South law contracts $XXX,XXX to systems Department. decisions and agency that than V-XXX in St. New agencies we and dominant situations throughout new Border more worth and a simulation brand systems; County and simulator include the second of life their selected South contracts Louis threatening Police essentially simulators the is make the in virtual service agencies to for At signed the enforcement St. accessories training VirTra can law local far threatening law the three a that training PRO sale warranty involve split decision utilizes making technology all recognizing advantages multiple training. our Together, governments train area Australia life Australia, in our Police enforcement total PRO also training de-escalation Force, We are County with Wales that enforcement systems better Australian lethal Increasingly, training VirTra been offer attorney provide Department, by situations. having by Australia, including and police every the two contracts. an V-ST Department

the to continue building markets. we international both encouraged We be momentum domestic and are by in

to reach customers showcase hands-on the face interactions, and face prospect to customers and a teams were Our products able with demonstrations through [indiscernible] sales our time. those short support sales and in rich to of of us number potential the October potential actively engage amount our provided large environment in with

international financial in the our single sales large and of quarter, In organization AUSA, including the made product growing exhibited reflection separate countries in IECP added have marketing a this enhancing continents. at our ICMA in attention along in three to of number The record professionals function. Shows events media have investments four a fact we sales Trade part significantly VirTra with and our and broadening different a Recently, five quarter reach. demonstrations and and we wins results, new is

have activity trade of use exposure our We the and increasing expanding systematically our decision function, broadening goal growing show the demonstrations our and all industry been the our with of investment community. marketing makers with within

structure results capital an us our addition, the us consistently that market. take improving for to enabled In capital up transition our listing financial Nasdaq streamline to actions and have

Round two to streamline structure transaction stock shares stock. perspective, During a work From and the the third overhang our discounted common quarter, and on during a and leadership with Block at quarter. of eliminate moves prices capital Modern we repurchased than significant XX,XXX Share third more completed governance made Warrant we our and Redemption

committee. directors. First from with meets increased five added four the virtual share which the will nominating the of company board The to commitment a board technology equal engineer strong million company governance the track continued governance in third simulation the Richardson on reality governance Jim we for of a with and and Nasdaq demonstrates also enriches parts shareholder corporate listing. supplier independent and approval, oversight eventually $XXX recently and into from rare for VR to Mr. a composition businessmen a corporate requirements and exceptional growing the is our serve in to director, Richardson audit will Jim addition corporate cash. record compensation and major selling Jim brilliant nothing committees

more August of of in results use Second, shop Municipal Judy XXXX. certification Judy of and Henry commitment the Controller Public, Financing the components our would and her our the was new experience decreasing Operationally so accounting has This reliability and Officer processes over Judy is CFO to XX we turn role Chief call the over kits our sectors. the transition delivering Chief solutions efficient, conjunction in ISO workflow and quality machine Director shop acquired in improve promoted year-to-date we fixturing, and results. of year make for efforts venture Corporations finance I estate the this real Financial years the holding Henry, quarterly has to to systems. as while accounting capital year. our to products been and technology products familiar Controller review of high from positions with to tooling a in certain achieved our quality demonstrates like Private produces XXXX:XXXX Officer, to past intimately improve component with in improved and Judy over The for our costs. magazine machine now compliance August company Financial to and seamless. and recoil shop and in Judy?

Judy Henry

last $X.XX that to by or for or for in additional revenues payroll compared million and $X.XX XXXX benefits the XX% or basic quarter of XX,XXX gross and $X.X result or The XXXX. was compared compared a you, period Bob. increase XXXX $X.XX to last third were in for operations the other to in million months weighted of was was third period revenues higher in XX% profit the XXXX. XX% or the XXX,XXX first and Income XX% revenue the in $X.X of diluted increases compared to $XX.X for increase nine staff nine $XX.X million period was important million driven for increase increase little the for third income shares profit diluted that year-to-date XXXX of basic shares marketing revenues year. XXXX The same third period and a expense in year. months the share results, warrantee or XXXX from last XX% third The nine expenses was was Gross new XXXX accessories, increases million company outstanding sales work respectively Revenues months net products XX% other increase primarily upgrades. percent and driven comparable the a $X XXXX of of shares third significantly quarter profit million income to the for first accessories, It million $X.XX XXXX the to in quarter the months from million sales the to nine was this income quarter first for in operating is $X.X compared $X.XX simulators, and shares first Net was and $X.X million diluted $XXX,XXX to share compared for same of comparable by income. to outstanding development $X.XX third XX% within increases last Staffing and for and reduction expansion last note of of higher is respectively, a for first of XXXX the or however research of for shares year. related expanding average EBITDA up current include or $X.X operating quarter year. of profit to net $X.X approximately margin gross revenues levels a of corresponding respectively from were was year. EBITDA year to expenses from compared $X.X A XX,XXX and Net basic $XX.X to of for third the Gross to due in in million last of in of nine Cost material and primarily in XXXX quarter increase of the year. third X,XXX quarter for a additional offset by year months position million loss service This a year-over-year year. million XXXX. Adjusted last The non-recurring weighted XXXX. sales and year. infrastructure of of and or XXXX compared cost the compared dilutive increase quarter onetime of increased of of the the annual in due and of in basic as of due third of corresponding services. partially million $XX.X in million decreased was the compared quarter was and period loss of per of expenses. public revenues the $X.X XX% was of the services. $XX.X corresponding revenue period $X.X million was was last period net from to operating operations the million, and for this sales. revenues warranties million the per to first diluted increase nine months to Adjusted million to for XXX,XXX sales operating per $X.XX net of IT The loss margin last the warranties the mix $X.X $X.X year, $XX.X simulators, training, the year-over-year during average Shifting up to XX% Thank Net quarter

our the to September as XX, and the cash balance $X.X Turning in authorized million The our XXXX. XX, the suspended to XXXX stock turn you, debt In the our Bob a Reg up the to XX, XX,XXX compared common of stock repurchased essentially of of XXXX of company of shares XX, call $XX,XXX. directors back to third quarter, cost $X.X indefinitely pending of now offering XXXX XXXX, repurchased a has due of approximately million at have repurchase to end, an shares repurchase at cost through sheet, end December as plus a the the September and December board of approximately additional outstanding common Subsequent cash we approximately I'll to through had XXXX. as at discussed. program no of equivalents over $XX,XXX A million Bob. company quarter we

Bob Ferris

two webcasts, would the our that's and exposures, by from will previously to answer of quarterly that shareholders in I this submitted to at previous read once put Judy. have question period disadvantage. we a every Similar to us you, and that intention it been company believe Thank competitive questions transparency my answering it, it's been submitted our

have a read. could earnings We one, listing NASDAQ NASDAQ already of that Question this listing? before questions completion well expected end timeframe will this is with what year. the questions begin take the been to the occur as I'll that from for the few continue the also raise callers of raise on in in call. expect We

$X range is you doing share. price doing raise Next between or per for the The price the and be what question, at raise? not will target $X

average in purpose $X. of $X.XX the which our and For the of the with price the SEC, is application illustrations we used $X between

question happen is raise at would the listing the at yes on the listing the Next and raise time. same time? same NASDAQ happen Answer, the

you the resume on actually will begin stock live back into buying based Reg of this after buyback calls. the board future? process the the the question, Next process decision our the of raise after VirTra continue could taking Answer, time, A directors. the At by will completed we

Brett Mass

call the for Operator, please open questions.

Operator

Please came Okay, Parker. [Operator aquestion in we Ryan have Instructions] that from state question. your

Unidentified Analyst

doing? you are how Bob, Hey,

Bob Ferris

Hello, I'm are doing you? well, how

Unidentified Analyst

insight great. question, Haley? on the can announcement Quick Doing recent with us give you

Bob Ferris

Sure.

provides recently civilians. a are including with Strategic those things. marksmanship, force with and did sort So, a of training with Haley folks, training a opening, lot grand for of they they do a well-known of And of group that use variety

in of decided component training. Haley So folks is and a for VirTra they're with -- yes, top the providing Haley as simulation training, tactical work their on and being one to known the marksmanship industry for

the performance. I learn is are products And I them, to We are we lot very engagement we're often with that to think company They selected and about a pushing relationship. to honored our going from our excited think and of mutually and envelope very that beneficial. them going are work be that they with, human

Unidentified Analyst

Okay.

the are over question, the first to months be [indiscernible] gross normal year strong nine you year, margins of Next relative the believe? to last originally

Bob Ferris

margins Well, are and as have higher a are those of result larger mixes, we permitted. been we -- margins certainty we that those various has a do not said, product

Unidentified Analyst

Okay.

the financing? Another intention is raised the do had of A any is question funds Reg you in idea I had the what of plus

Bob Ferris

I'm question that sorry. Say again.

Unidentified Analyst

financing Reg intention time? in the use the the of this the of funds A plus is at What raised

Bob Ferris

Yes.

through being of behind by a our capital sales and general increasing of activities. use overall things. is and the total increase market, increases idea increase of working combination and to would in that also line, size research expansion potentially be our some Reg is then it for development, done sales product in business addressable and significantly for marketing activity. and The proceeds the marketing So, A And general used

include based up or… proceeds but down I'll A, through to they're you Reg of we XX% if receive the would of -- that it like of use projected the shares me A Our the XX various for Reg if go Page just in you on like sold you, XXX%, and on breakdowns summarize broken to

Unidentified Analyst

check really unless can I later it's short.

Bob Ferris

the down it but take area to is level stronger we're us five we broken a a funds, of components the that's deploy really the is next enter and I expecting series different a in that where There deployment to company as make the takeaway key is funds of to NASDAQ. think strong to take the

Unidentified Analyst

expanding an you Are acquisition Okay. line? product the looking or organically at potentially

Bob Ferris

our the acquisitions so we the not expected certainly it proceeds of use an use on growth, use allocation of process open organic but -- would organic of are but current Well, as growth the strategic the of of acquisition. lot NASDAQ, uplisting is is to whole proceeds of [ph] be part for

Unidentified Analyst

Okay, to and them out? then be funds the would have potentially and build lease use simulators

Bob Ferris

to would That when I'm of the various could revenue of so would could market that we -- deployment sorry; could we that of actual many that be get expand one one that you our deploy the be capital areas funds. things deploy reach, potential the into of details be

Unidentified Analyst

of [indiscernible] related -- question; public was, last charges? in the what quarter for charges company One Wonderful. was amount the Judy the one-time what

Judy Henry

was out a fees. any legal detail don't significant that accounting you can the for but of in broken We application have amount in reports, it and the imagine if

Unidentified Analyst

Okay.

Bob Ferris

Are there…

Unidentified Analyst

are my you. Appreciate those questions. all Thank it. Okay,

Bob Ferris

calling in. All right, thanks you so much. Appreciate

Operator

Okay. Instructions] [Operator

Our your from question. Please Jim next state comes [ph]. question Pointer

Unidentified Analyst

good morning. Bob,

Bob Ferris

doing? Good are morning. you How

Unidentified Analyst

do the margins? color in should on you well. quote got two multi-screen [Indiscernible] can sales add right, that I the be could that you to those seem just or forward and I norm I that going what and Doing things; that market robust industry. is simulators said And demand if think tries to can becoming listen, to

Bob Ferris

think incredibly use I they on use proper decisions for Yes, I for it's the healthy type obviously for of that a that think products related they more stressful gotten for demand appear different training multi-screen that with is is quality, for systems of more it officers situations. ultimately if use it fine or simulator. simpler whether think to potentially on commonplace a force simulator more that certainly point effective news But on importance themselves coverage police good Well. decide many location immersive does the growing with I market can our smaller, every be puts But providing VirTra. a a the preparation and of to

Now that add I is that some we system stress the for training in higher for any and and our higher I and in during our would simulation that of those of towards VirTra have device unique that technology one of bullish thread techniques so market course training and quality VirTra. is provides very realism movement think fire on

they curious the yourself Jim and for shareholders. not As insure have very view net to we name to shareholders acquire the year of far you growing first it lot best as of And long Obviously on or we've had you term you did et shareholders do such you give are shares we cetera by do. last honored revenue but outlooks is market have what good VirTra, so was. trying in the I'm a competition gross have when know recall I a been track always record to over both and income to predictions very to don't the of adjust we those decade

Unidentified Analyst

say from you're because a things it out they're as surprise expect? I'm it's it's the to been now granted if point was right getting but that long run modest it a and to to correct year know don't would you as you're I year it's start just

Bob Ferris

blessed. We've been very

Unidentified Analyst

additional, because and me of watershed generated its to media is start has of the article recent? sheer of a size circulation media Forbes kind of national The inquiries that

Bob Ferris

I do agree.

you and this does I I to help attracts piece I very the is building did a attracts think Anderson for credibility add which that end there and a to good great think to the mean is major our would do those. in that ones, media VirTra. Forbes of are our every great is to Also I And moving plan going think on moment CNN, before between like article major our help a I with to a the of so it is was our future note company. overall company attention that think media that paid VirTra moment year. hope for it VirTra I we get NASDAQ done Cooper

on better able So top I think we're company. sound not even been or versus worked training rather a training and doing to VirTra appropriate in so extremely of is you're high use humble being There's not together simulation like there the than There to always appreciate though high relation a very and regard to possible tech results very very of properly good in when anything been reality my business rudimentary need virtual comment higher work that vanguard force the more things see would bit way and and in training. about all so, get that for have of my media attention best the diligent those then the nothing talking of They some yes, to tandem officers standard applied. word that has out I financial train financial practices believe trained we've expectations national and VirTra that VirTra I is mean is manage in not opinion. of for I that's doing a more and received a I growth trying

Brett Mass

to you on move next Operator, the Bob. you, question. Thank

Bob Ferris

much. so Thanks

Operator

Our Please question. next Jim state question comes Jacob. from your

Unidentified Analyst

quarter. a congratulations Bob First great on

Bob Ferris

Thank you.

Unidentified Analyst

is creatively many they with We've enforcement work solve doing or those agencies. to sort degree potential a issues? They shared footprint of have don't that they with those is to handle funds law there nor do because the anything enforcement in the law resistance past have of have VirTra the agency some that

Bob Ferris

great question. Yes,

we have so up footprint thing do So those all that provide I'll one also different to we we XXX and options the available of to have with fit various various of types a does and VirTra so to configurations rooms also lot then is simulators, with portable the the configurations. question way degrees, a start we various available in try simulators of have simulators

have Even chairs is on if back of chairs proud out be record the way and to rooms allow once they our stimulator have up finding that that then of fit moving for track way set We of found people in classroom means have its to We the to experienced to dedicated simulator staff effort. we in locate an for a content engineer system for various worth many move locations, a to helping a many amazing to sorts who space. the worthy very that also in times every scenario many configure, so room objectives all we embedded initially the effort to issues will but into overcoming for not factor way. are saw an training ways times find We space experienced fit make realize We at of a a do have could they we're that in is thought people that looking important themselves if create. we when people those there's it's there's that and that limitations. we the new who the many

overcome top much we are good increasing limited into methods pursuing how number Regarding equipment Very that our are have of can way there so and for budgetary constraints agencies us. actively we objections an budget mind extremely ever that constraints, get of and we sometimes very those could

Unidentified Analyst

major doing maybe need from the it come a spend Southwest that opening have didn't the I did in would regional didn't and you you determining week and a dollars many have I've think or XX,XXX you this They but enforcement and the test how up send of mentioned actually over beta a maybe law and to could test if Would and attract and have Phoenix enforcement number beta sense facility to footprint, week. come all Phoenix different past for maybe agents? in in the that have a in just agencies agencies make a law to XX,XXX the budget

Bob Ferris

our that So very able what we any point with for our give but a point information be comfortable you on also that to kind we to be give on work reason well idea and at wouldn't hand more would of wouldn't that able to without that groups Then the exploring all at model we variations feel anticipate that and announced involved. we would to I stepping I that. competitors any are

Unidentified Analyst

No, that and you're about at least I discussions? thinking feel comfortable in it that's

Bob Ferris

right. Thank much. you All very

Unidentified Analyst

welcome. You're on. Continue

Bob Ferris

Thanks.

Unidentified Analyst

Okay.

Operator

Okay. Instructions] [Operator

state We [indiscernible]. have question. a Please your question from Ralph

Unidentified Analyst

Bob, quarter. Hey, great

Bob Ferris

Thank you.

Unidentified Analyst

answer is the question this; much in completed department of actually of the $X.X -- contract you which if My how can orders QX? and million was fulfilled

Bob Ferris

we not I'm sorry. information that disclosed Yes, have publicly;

Unidentified Analyst

thank Okay, you.

Operator

Okay.

Our your Landis. next question comes Please from state question. Charles

Unidentified Analyst

Good for timeline the completion morning, there Bob. Is registration? a of

Bob Ferris

The the to responded have their ultimately up SEC, be completion had it but we the time. registration it currently of pending timely is so could to and comments is any at

Unidentified Analyst

the All question size. employees is versus right, thank increased regarding you and next the building

limitations Now, working is that out or you foresee?

Bob Ferris

Currently working we are -- it's out fine.

some certain higher employees employees adjustments that's have able the have were may we do accommodate the still now So and to a need at productivity from of we're at home this times the to work better in point we feel with we right to buildings but are staff. out increased okay but or

Unidentified Analyst

or there you, this production tell monthly or to quantitative looking is why All right, did for, annually thank goal; you're you something? scenario us about your and

Bob Ferris

or is comes for and would would are proud show When the active effective most contained. instructor use points we're production what cadets with to be it the be refreshing nothing they to training happy than less our content world's looking that for best educate either to training that very that content and when training any personnel

content produced a we of want want - to are we be high quality it. lot and So we

Unidentified Analyst

numeric But far number as you is share as there might the increasing scenarios? the

Bob Ferris

based fluctuates on objectives the we needs from but quarter-to-quarter those the No, of two have do internal company.

to scenarios do software that have V-Author focus from the on but just focused go and so created, be focused we're on custom have at meaning software speaking, various internally so on time. focused set of generally we time types other sometimes on created request times objectives V-Author, who for about we're and be we customers have them adjust sometimes we're then So some that to called on we those time focused those content we're but sometimes that is require we we one assets, to

So, -- but you. thank

Unidentified Analyst

regarding of do might products you even soon how And types have you products? you. Thank we share might or or see anything some new new products

Bob Ferris

one to all mentioned is but and we've in [indiscernible] use development research Obviously of we new new intentionally A releases the confidential Reg related competitors. proceeds keep products, product to

So, the is at that's and do fully time marketing best and be developed benefit our of ready that shareholders. get market a we to and all release preference and sales the product for think for corresponding would then

Unidentified Analyst

All right, thank Bob. you very much,

Bob Ferris

much, Thanks care. so take

Unidentified Analyst

the and you team. by job Great

Bob Ferris

much. so thanks you, Thank

Operator

was now our final remarks. turn back to I the question. Bob And call Okay. closing that will for over

Bob Ferris

so tirelessly and working an a and grow who this only everyone thank support we to solutions Thank of product of professionals to In to training world created success ownership in that and shareholder for at time effective the most also call. a continued right and organization generated much, training. have our with now the financial dedicated you is closing, have simulators. staff, have like business successfully company, honored has value finest not great much for talented feel the every their right right to the we XX the I would I is our of you Thank day. listening I'm the so of thanks the service simulation desperate but for CEO and world's

Operator

Thank We you. This participation. conference call. today's you your for concludes thank

a disconnect great may this day. lines your time and at You have