VirTra, Inc. (NASDAQ:VTSI) Q2 2022 Earnings Conference Call August 19, 2022 10:00 AM ET

Company Participants

Bob Ferris - Chairman, Co-CEO

John Givens - Co-CEO

Marsha Foxx - CAO

Conference Call Participants

Allen Klee - Maxim Group

Jaeson Schmidt - Lake Street Capital

Richard Baldry - ROTH

Operator

Good afternoon, and welcome to VirTra's Second Quarter 2022 Earnings Conference Call. My name is Laura, and I will be the operator for today's call. Joining us for today's presentation are the company's Chairman and Co-CEO, Bob Ferris; Co-CEO, John Givens; and Chief Accounting Officer, Marsha Foxx. Following their remarks, we will open the call for questions for VirTra's institutional analysts and investors.

Before we begin the call, I would like to provide VirTra's safe harbor statements that includes cautions regarding forward-looking statements made during this call. During this presentation, management may discuss financial projections, information or expectations about the company's products and services or markets or otherwise make statements about the future, which are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. The company does not undertake any obligation to update them as required by law.

Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.virtra.com.

Now I would like to turn the call over to VirTra's Chairman and co-CEO, Mr. Bob Ferris. Sir, please proceed.

Bob Ferris

Thank you, Laura, and thank you, everyone, for joining us this morning. Before the market opened today, we issued a press release that provided our financial results for the second quarter and six months ended June 30, 2022, along with highlighted business accomplishments. We also filed our 10-Q with the SEC, which is available for a review at your discretion.

The first half of 2022 has been a strong start for VirTra, putting us on track for another year of record revenues as total revenue in the first half of 2022 was up over 50% from the comparable period in 2021, which was our highest revenue period in our history. The operational momentum we are capturing is noteworthy as we continue to penetrate our key growth markets in commercial, government and international.

Additionally, this growth has been achieved while generating profits as adjusted EBITDA grew 33% in the first half of the year, and we remained profitable on a GAAP net income basis. The strong growth is being largely driven by the international commercial markets. You might notice that our government sales is down slightly, but keep in mind that normally the high season for us to receive new government orders is during the third quarter, and our sales pipeline is strong.