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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. Corporation (Nasdaq: VIRC) reported a robust second quarter fiscal 2023, with net sales of $82.8 million, reflecting a 40.3% increase from $59.0 million a year prior. Net income surged to $9.7 million or $0.60 per diluted share, marking a 157% rise from $3.8 million. The company experienced heightened factory output by 30%, boosting its gross margin to 38.5%. Strong demand and effective management contributed to increased profitability, with a backlog of $194.7 million enhancing visibility for future revenue growth.
Virco Mfg. Corporation (Nasdaq: VIRC) reports a 13% year-over-year increase in net sales to $32.1 million for Q1 FY2023, despite a net loss of $5.1 million, exacerbated by inflationary pressures. Shipments and backlog reached $144.4 million, up 20% from the previous record, driven by robust demand from educational institutions. Management implemented contract adjustments for bi-annual price changes to mitigate inflation impacts. Gross margin improved to 30.3% from 27.1%, aided by a 45% increase in factory output compared to last year. Interest expense rose due to higher inventory levels.
Virco Mfg. Corp. (NASDAQ: VIRC) reported a 119% revenue increase for Q4 FY 2022, totaling $40.1 million, compared to $18.3 million last year. The fiscal year saw a 21% growth, reaching $184.8 million. Despite this, there was a pre-tax loss of $5.2 million in Q4, though this was an improvement from a loss of $6.5 million the previous year. Order rates surged by 65% in Q4, leading to a record backlog. A new $70 million credit facility was secured, enhancing liquidity for growth. The company anticipates profitability improvements in FY 2023, addressing margin pressures from material costs.
Virco Mfg. Corporation (NASDAQ: VIRC) reported third-quarter fiscal 2022 results with net sales of $57.3 million, slightly up from $57.2 million year-over-year. Net income fell 70.4% to $1.3 million or $0.08 per diluted share due to material shortages and rising input costs, impacting gross margin, which decreased to 35.4% from 38.9%. Despite these challenges, robust order rates are driven by stimulus funding. The backlog remains high at $45.1 million, signaling strong future demand as production capacity improves.
Virco Mfg. Corporation (Nasdaq: VIRC) announced an amendment to its credit facility, allowing for potential future shareholder distributions. This decision reflects positive business trends and a strong balance sheet, with a maturity date set for March 19, 2023. CEO Robert Virtue highlighted the company's flexibility to consider cash dividends and stock repurchases as vital elements of capital allocation. While no specific distribution plans are in place, the company sees growth opportunities ahead to enhance shareholder returns.
Virco Mfg. Corporation (Nasdaq: VIRC) reports a strong performance driven by increased stimulus funding for educational furniture, resulting in a record backlog of $60 million, nearly 200% higher than 2019. For Q2 of fiscal 2022, net sales were $59 million, slightly down from $59.5 million year-over-year, while net income rose 5.8% to $3.8 million. Fiscal year-to-date activity shows a $173.1 million backlog, indicating a promising outlook. Management expects reduced seasonality and increased revenue in Q3 and Q4, leveraging the ongoing stimulus funding through 2025.
Virco Mfg. Corporation (Nasdaq: VIRC) reported a 59% increase in net sales for Q1 2021, totaling $28.37 million compared to $17.82 million in Q1 2020. Gross profit rose 57%, reaching $7.69 million despite challenges from rising raw material and freight costs. The operating loss improved to $4.30 million from $7.03 million the previous year. Additionally, the company noted that its reliance on seasonal debt is at a three-year low, and strong indicators show a robust market recovery for school furniture, with shipment backlogs at a three-year high.
Virco Mfg. Corporation (NASDAQ: VIRC) reported a 21% decline in revenue due to COVID-19, totaling $152.8 million for the year ended January 31, 2021. Despite this, the company achieved modest operating income of $735,000, a significant improvement from the previous year's loss. Key metrics such as order backlog reached a sixteen-year high as schools prepare for re-opening. Notably, management avoided layoffs and reduced debt while maintaining U.S. factories, positioning the company for recovery amid ongoing supply chain challenges.
Virco Mfg. Corporation (NASDAQ: VIRC) reported its financial results for Q3 2020, showing net sales of $56.7 million, a 15.3% drop from $67.0 million in Q3 2019. Year-to-date sales also declined by 18.6%. Despite these challenges, net income improved by 15.1% to $4.5 million, thanks to operational expense controls and favorable tax benefits. The company is shifting production towards student desks and chairs to meet changing demands during the COVID-19 pandemic, and has effectively reduced inventory by $6.0 million, paying off its revolving credit line.
Virco Mfg. Corporation (Nasdaq: VIRC) reported its financial results for Q2 2020, revealing a 16% revenue decline from $70.4 million to $59.3 million compared to the previous year, alongside a 39% drop in net income. Year-to-date revenues also fell by 21%. Despite challenges due to COVID-19, the company pivoted production to meet increased demand for traditional student desks, achieving profitability in August. However, they faced a loan covenant default, which was waived. Management expresses optimism for market recovery and is focused on expanding business opportunities.
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