VirTra, Inc. (NASDAQ:VTSI) shares lost ground Wednesday after the company reported better-than-expected Q4 results.
The Arizona-based VirTra, a global provider of training simulators for the law enforcement, military, educational and commercial markets, reported net income increased to $1.6 million for the fourth quarter of 2020. Adjusted EBITDA for the full year 2020 increased 161% year-over-year to $2.8 million. Backlog increased to a record $14.6 million as of December 31, 2020.
Said CEO Bob Ferns, "Our confidence in the future is buoyed by our ability to generate higher revenues in 2020 and exit the year with increased backlog of $14.6 million. Our cash position has more than doubled from 2019, and we continue to carry no debt other than our PPP loan.
"While international sales were substantially impacted by COVID-19 travel restrictions in 2020, we compensated with our proven ability to effectively sell to domestic law enforcement and to expand further in the military market. An improving domestic and international market gives us reason to be optimistic about our prospects in 2021 and beyond."
VTSI also made headlines Tuesday by signing a securities purchase agreement with certain institutional investors, to purchase 3M common shares at $6.00/share. The total gross proceeds are $18 million. Net proceeds will be used for general corporate purposes, including general working capital. The registered direct offering will close on April 5.
VTSI shares lost $1.87, or 23.5%, first thing Wednesday to $6.10.
