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Virco Mfg. Corporation (NASDAQ: VIRC) is a leading manufacturer and supplier of moveable furniture and equipment specifically designed for educational environments in the United States. Established in 1950, Virco has built a strong reputation for American quality and innovation. The company offers an extensive range of products, including mobile tables, storage equipment, desks, computer furniture, chairs, activity tables, folding chairs, and folding tables. These products are primarily constructed using tubular metal legs and frames, with wood and plastic tops, plastic seats and backs, and upholstered options.
Virco's commitment to excellence is evident in its state-of-the-art manufacturing facilities located in Torrance, California, and Conway, Arkansas. The company’s vertically integrated operations ensure that all products are designed, manufactured, and assembled in the USA, utilizing the highest quality raw materials. This enables Virco to maintain stringent quality control standards and deliver reliable solutions for schools, colleges, universities, trade and technical schools, and vocational institutions.
The company has recently reported strong financial performance. For the fiscal year ended January 31, 2024, Virco achieved net revenue of $269.1 million, a 16.5% increase from the previous year. This growth was driven by the robust execution of a record backlog and stabilizing material and freight costs. Operating income for the year was $31.9 million, while net income amounted to $21.9 million. The company’s gross margin improved to 43.1%, reflecting operational efficiencies and higher volumes.
Virco’s operations are highly seasonal, with significant activity during the summer months when schools are out of session. This seasonality poses logistical and operational challenges, which the company addresses through its experienced workforce and a comprehensive strategy encompassing production scheduling, staffing, and inventory management. The company uses a proprietary metric, 'Shipments + Backlog,' to evaluate business performance and plan for the busy delivery season.
In response to its strong financial position, Virco has reinstated a quarterly dividend and authorized a $5 million share repurchase program, reflecting its commitment to delivering shareholder value. The company’s leadership is confident in sustaining growth and adapting to evolving market conditions, ensuring continued support for educational institutions.
Virco’s ability to deliver high-quality, durable products has cemented its role as a trusted partner within the education sector. The company remains dedicated to supporting 21st-century learning environments, contributing to the well-being of students and educators across the nation.
Virco Mfg. (NASDAQ:VIRC) has announced a new share repurchase program authorized by its Board of Directors. The program allows for the repurchase of up to $10 million worth of the company's Common Stock, commencing February 1, 2025.
The company, which specializes in manufacturing and supplying movable furniture and equipment for educational environments and public spaces, will execute the repurchases through various means, including open market purchases, privately negotiated transactions, and trading plans under Rule 10b5-1. The program has no time limit and can be suspended or discontinued at the company's discretion.
Virco plans to fund the repurchases using existing cash and cash equivalents. The timing and amount of stock repurchases will be determined based on various factors, including market conditions, stock prices, trading volume, and regulatory requirements.
Virco Mfg. (NASDAQ:VIRC) reported its Third Quarter and Nine Months results ended October 31, 2024. Third quarter revenue slightly declined to $82.62M from $84.25M, while nine-month revenue grew 5.0% to $237.77M. Gross profit for Q3 declined 4.0% to $36.68M, though nine-month gross profit increased 7.3% to $107.24M.
The company's financial position strengthened with $38.86M cash on hand and no credit utilization. Inventories decreased 16.9% to $48.95M, and accounts receivable declined 14.7% to $28.17M. The Board declared a quarterly dividend of $0.025 per share. The company maintains $3.5M for share repurchases and reports Shipments plus Backlog approximately 1% higher than last year.
Virco Mfg. (NASDAQ: VIRC) reported improved financial results for Q2 and H1 2024. Key highlights include:
- Q2 revenue up 1.0% to $108.4M; H1 revenue up 9.1% to $155.2M
- Q2 EPS improved 9.5%; H1 EPS up 33.3% to record $1.16 per share
- Q2 operating income reached 20.2% of revenue; H1 at 16.0%
- Company is effectively debt-free, financing growth through cash flow
- Quarterly dividend increased to $0.025 per share
The company noted strong order rates but signs of slowing post-pandemic recovery. Virco completed a 5-year lease renewal for its Torrance, CA headquarters and owns significant space in Conway, AR, providing logistical advantages in the seasonal school furniture market.
Virco (NASDAQ: VIRC) reported a strong first quarter for 2024, with a 33.7% increase in revenue, reaching $46.7 million. The company achieved a net income of $2.1 million, a significant improvement from a $1.4 million loss in the same quarter last year. This growth was largely driven by a large disaster recovery order. Gross margin improved to 43.5%, up from 37.8% the previous year.
Virco's board declared a quarterly dividend of $0.02 per share, payable on July 12, 2024. The company completed $1.5 million in share repurchases, with authorization for an additional $3.5 million. Despite increased Selling, General and Administrative expenses, they decreased as a percentage of sales. Interest expenses also fell due to lower borrowings.
On the balance sheet, current liabilities dropped 37.4%, and long-term liabilities fell 41.3%. Total stockholder equity rose 37.3% to $91.6 million. Inventories decreased by 16.7%, and working capital borrowings dropped significantly. The management highlighted their strong balance sheet and operational efficiency as key drivers for these results.
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