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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) 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.
Virco Mfg. Corporation (Nasdaq: VIRC) reported a robust third quarter with net revenue rising 35% to $77.4 million and year-to-date revenue up 32.9% to $192.3 million. Improved operational efficiencies and a gross margin increase to 39.8%, driven by higher volume and price adjustments, supported this growth. Operating income soared from $2.5 million to $8.8 million, while net income reached $7.9 million compared to $1.3 million last year. SG&A expenses declined to 28.4% as the company focuses on enhancing U.S. operations and delivering strong returns to shareholders.
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