Financial Performance - Net income for the first quarter was $0.7 million, down from $2.1 million in the same period last year, primarily due to a large disaster recovery order last year [1]. - Net sales for the first quarter were $33.754 million, down from $46.735 million in the same period last year [19]. - Operating loss for the first quarter was $94, compared to an operating income of $2.971 million in the prior year [19]. Margins and Costs - Gross margin improved to 47.5%, up 400 basis points from 43.5% in the prior year, attributed to lower margins on last year's disaster recovery order and a higher proportion of full-service orders [2]. Shareholder Returns - The company repurchased $4.0 million worth of shares and paid $0.4 million in cash dividends during the first quarter [7]. - A quarterly dividend of $0.025 per share was declared, payable on July 11, 2025 [3]. Market Outlook - Shipments plus backlog declined by 22.9% to $105.6 million compared to the previous year [3]. - The current year is expected to represent a "pause" in the recovery of the school furniture market post-COVID, but there are hopeful signs for mid-term growth in school construction [10]. - The company maintains an opportunistic stance to navigate challenges and opportunities in the upcoming year [9]. Investments - The company invested over $2.0 million in major platform processes to expand operations and support domestic market expansion [7].

Financial Performance - For the three months ended April 30, 2025, the Company reported a net income of $0.7 million on sales of $33.8 million, a decrease of approximately 27.8% in sales compared to $46.7 million in the same period last year [81]. - Gross margin for the first quarter of 2025 was 47.5%, an increase from 43.5% in the prior year, attributed to a higher proportion of full-service orders [82]. - Selling, general and administrative expenses decreased by approximately $1.3 million compared to the same period last year, primarily due to lower variable selling expenses [83]. - The effective income tax rate for the three months ended April 30, 2025, was 26.4%, compared to 25.5% in the prior year [86]. Backlog and Orders - The Company's backlog as of April 30, 2025, was $70.4 million, down from $88.5 million on April 30, 2024, reflecting a decrease in incoming orders [77]. Share Repurchase - The Company spent $4.0 million to repurchase 348,944 shares of its common stock, with $7.2 million authorized for future repurchases as of April 30, 2025 [91]. Accounts and Inventory - Accounts Receivable decreased by $7.5 million at April 30, 2025, due to decreased shipments and improved collections [88]. - Inventory increased by $2.7 million at April 30, 2025, primarily due to increased material costs during the quarter [88]. Compliance and Future Outlook - The Company believes it will maintain compliance with its financial covenants under the Credit Agreement, despite risks related to economic conditions and raw material costs [92]. - Management cautions that future growth rates are unlikely to match those of the past several years due to various uncertainties, including trade policies and funding for educational institutions [78].

Virco Manufacturing Corporation (VIRC) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 92.31%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $0.35, delivering a surprise of -133.33%.Over the last four quarters, th ...

Shipments plus Backlog declines 22.9% to $105.6 millionGross Margin Improves 400 Basis Points to 47.5% vs. 43.5% LY Reinforcing Company’s Long-Standing Commitment to Domestic ManufacturingBoard Declares Quarterly Dividend of $0.025 per Share, payable July 11, 2025 to Shareholders of Record as of June 20, 2025First quarter shareholder returns reach $4.4 million, including buybacks and dividends TORRANCE, Calif., June 06, 2025 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ: VIRC), a leading manufacturer a ...

Virco Manufacturing Corporation’s (VIRC) shares tumbled 2.6% during Monday’s trading hours after it reported an adjusted loss in the fourth quarter of fiscal 2024 (ended Jan. 31, 2025), with the net sales missing the Zacks Consensus Estimate. On a year-over-year basis, the top and the bottom lines declined.The quarter’s performance was primarily hurt by the return of unfavorable weather conditions, resulting in lower volumes, and the ongoing uncertainties in the global trade market. Furthermore, the ongoing ...

Revenue Performance - Full year revenue for Virco Mfg. Corporation declined 1.1% to $266.24 million from $269.12 million in the prior year[1] - Fourth quarter revenue decreased 33.2% to $28.47 million from $42.60 million in the prior year, attributed to the absence of a counter-seasonal disaster recovery order[1] - Net sales for the year ended January 31, 2025, were $266,240, a decrease of 1% from $269,117 in 2024[21] Profitability Metrics - Gross margin for the full year remained steady at 43.1%, while it declined to 26.2% in the fourth quarter from 37.7% in the prior year[2] - Operating income for the full year was $27.86 million, or 10.5% of sales, compared to $31.88 million, or 11.8% of sales last year[4] - Operating income fell to $27,859, representing a decline of 12.3% compared to $31,877 in 2024[21] - Net income for the full year reached $21.64 million, slightly down from $21.91 million last year[4] - Net income for the year was $21,644, a slight decrease of 1.2% from $21,910 in 2024[21] Cash and Equity - Cash at year-end increased significantly to $26.87 million from $5.29 million last year[5] - Shareholder equity increased by 20% to $109.27 million compared to $91.18 million last year[5] - Cash dividends declared per common share increased to $0.09, up from $0.02 in the previous year[21] Expenses and Liabilities - Selling, general, and administrative expenses rose to $86,835, an increase of 3.1% from $84,181 in 2024[21] - Interest expense, net significantly decreased to $349, down from $2,679 in the previous year[21] - Income tax expense decreased to $6,780, down from $7,330 in the previous year[21] Operational Insights - Shipments plus backlog as of January 31, 2025, totaled $316.42 million, down from $318.40 million in the prior year[7] - The company executed a 5-year extension of its operating lease in Torrance, California, impacting right-of-use assets and liabilities[6] - Management emphasizes the importance of investing in domestic manufacturing to mitigate risks from global trade uncertainties[8] Shareholder Information - Basic net income per common share remained stable at $1.32, unchanged from the previous year[21] - Weighted average shares outstanding for basic shares increased to 16,365 from 16,295 in 2024[21]

Company Overview - Virco Mfg. Corporation is the largest domestic manufacturer and distributor of Furniture, Fixtures, and Equipment (FF&E) for the education market, with approximately 70% to 80% of sales being direct to customers [168]. Financial Performance - The Company reported a pre-tax profit of $28.4 million on net sales of $266.2 million for fiscal 2025, compared to a pre-tax profit of $29.2 million on net sales of $269.1 million in fiscal 2024, indicating a slight decline in both profit and sales [196]. - Net sales decreased by 1.1% in fiscal 2025, attributed to a slight increase in selling prices offset by a minimal decrease in unit volume, while order rates increased by approximately 3.3% compared to 2024 [197]. - Selling, general and administrative expenses increased by $2.6 million to $86.8 million in fiscal 2025, primarily due to an increase in variable selling and other compensation expenses [202]. - Cash flow provided by operations was $33.1 million in fiscal 2025, an increase from $27.0 million in fiscal 2024, primarily due to a decrease in accounts receivable [207]. - The effective tax rate for fiscal 2025 was 23.9%, reflecting the forecasted mix of income before taxes in various jurisdictions and the recording of a partial valuation allowance on net deferred tax assets [204]. - The material portion of costs as a percentage of sales was 33.2% in fiscal 2025, a decrease from 34.7% in fiscal 2024, primarily due to stable commodity costs [200]. Market Conditions - The company experienced a decline in order rates by 20% during fiscal 2021 due to the COVID-19 pandemic, but order rates recovered during fiscal 2022, 2023, and 2024, with 47% to 49% of annual revenue generated in June, July, and August [173][175]. - The company anticipates continued uncertainty and volatility in commodity costs, particularly with respect to steel, plastic, and energy, due to new tariffs and trade policies announced in early 2025 [183]. - The Company anticipates continued volatility in costs for fiscal 2026, particularly regarding imported components, transportation, and energy, which may adversely affect profitability [211]. - The Company is subject to market risk from changes in raw material prices, which can adversely impact operating results if costs increase unexpectedly [246]. Operational Efficiency - The company has maintained its domestic fabrication facilities, which are well-maintained and automated, providing a competitive advantage over companies that import finished products [171]. - The company has invested in automation at its domestic manufacturing facilities, allowing for rapid product development and customization to meet seasonal demand [185]. - The educational furniture market is highly seasonal, with average weekly shipments during peak months being as much as six times the level in winter months [177]. - The company has developed proprietary PlanSCAPE® software to enhance project management and logistics for FF&E solutions, supporting classroom-specific product selection and delivery [170]. Inventory and Costs - As of January 31, 2025, the company's inventory obsolescence adjustments were $5.6 million, representing 9.1% of inventories on a FIFO basis [187]. - The Company has negotiated increased flexibility in long-term contracts to allow for price increases on future orders [246]. - The Company actively works to offset increased raw material costs through sourcing initiatives and product re-engineering [246]. - The Company benefits from decreases in raw material costs under its contracts [246]. Shareholder Returns and Capital Management - The company spent $3.8 million to repurchase 342,026 shares of its common stock in fiscal 2025, with $11.2 million authorized for future repurchases [219]. - The company declared cash dividends in the fourth quarter of 2024 and in each quarter of 2025 [235]. - The equity section of the balance sheet on January 31, 2025 reflects additional paid-in capital of approximately $117.5 million and an accumulated deficit of approximately $8.9 million [236]. - The company has a secured revolving line of credit of up to $65.0 million, which can increase to $70.0 million during the peak months of June, July, and August 2024 [222]. - As of January 31, 2025, approximately $30.0 million was available for borrowing under the revolving line of credit [228]. Employee and Benefit Plans - The Company intends to continue offering lump sum benefits to terminated and retired employees to de-risk the Employee Plan, which may result in future settlement costs [191]. - Contributions to the Qualified Plan Trust and benefit payments under the VIP Plan totaled $623,000 in fiscal 2025 [232]. Risk Management and Compliance - The Company was self-insured for product liability losses up to $250,000 per occurrence and general liability losses up to $50,000 per occurrence in fiscal 2025 [240]. - The Company has purchased insurance to cover losses exceeding self-insured retention up to a limit of $30 million [240]. - Management does not anticipate that any related settlements would materially affect the Company's financial position or cash flows [241]. - The Company's exposure to self-insured retentions may vary based on market conditions in the insurance industry [240]. - The company maintains compliance with financial covenants, although uncertainties exist regarding raw material costs and supply chain challenges [228]. Environmental Initiatives - The company has enacted policies for recycling and resource recovery, earning multiple environmental commendations [238]. - The Company has implemented a program to improve product quality, resulting in reductions in product liability claims and litigated cases [241].

Long-Term Strategy of Investing in Domestic Manufacturing and Service Proves SuccessfulNet Income For FYE 1.31.25 reaches $21.6 MMFYE 1.31.25 Revenue tops $266 MMOperating Cash Flow tops $33 MMDividends and Share Repurchases exceed $5 MMStrategic Capital Expenditures Grow to $6 MMShareholder Equity Increases 20% to $109 MM TORRANCE, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ:VIRC), a leading manufacturer and direct supplier of moveable furniture and equipment for educational e ...

Group 1 - Virco Mfg. Corporation (NASDAQ: VIRC) is a small company with a long operational history, being public since 1964, although its business is somewhat cyclical [1] - The company recently experienced a significant decline of 30% from $16 per share after reporting worse-than-expected results [1] Group 2 - The company is analyzed in the context of long-term fundamentals driving share prices, with a focus on predicting earnings per share [1]

Core Viewpoint - Virco Mfg. Corporation has announced a new share repurchase program for up to $10,000,000 of its Common Stock, starting February 1, 2025, with no specified time limit [1]. Group 1 - The share repurchase program allows for purchases at management's discretion through various means, including open market purchases and privately negotiated transactions [2]. - The timing and total amount of stock repurchases will be influenced by business, economic, and market conditions, as well as corporate and regulatory requirements [2]. - The company plans to use its existing cash and cash equivalents to fund the repurchases under the new program [2].