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].

Revenue and Orders - The Company recognized approximately $9 million in additional revenue from disaster recovery orders in Q1 2024 compared to Q1 2023, with further orders of $4 million and $6 million delivered in Q2 and Q3, respectively [89]. - For the three-month period ended October 31, 2024, the Company experienced a 13% decrease in orders compared to the same period last year, but a 2% increase in orders for the nine-month period [90]. - The sales order backlog decreased to approximately $25 million at October 31, 2024, down from $42.6 million in the prior year [91]. Financial Performance - Net income for the three months ended October 31, 2024, was $8.4 million on sales of $82.6 million, compared to net income of $10.2 million on sales of $84.3 million in the prior year [97]. - Sales for the nine-month period ended October 31, 2024, increased by approximately $11.3 million or 5.0% compared to the same period in the prior year, driven by increased volume and product mix [102]. - Gross margin for the first nine months ended October 31, 2024, was 45.1%, up from 44.1% in the prior year, due to increased production levels and stable raw material costs [103]. - Selling, general and administrative expenses for the nine months ended October 31, 2024, increased to 30.0% of sales from 28.9% in the prior year, attributed to higher variable selling and service expenses [104]. Cash and Tax - The Company had $38.9 million in cash and no borrowings under its line of credit as of October 31, 2024, compared to $4.9 million in cash and approximately $3.7 million in borrowings at the same date in 2023 [92]. - The effective income tax rate for the nine months ended October 31, 2024, was 24.4%, compared to 24.0% in the prior year [106]. Lease and Assets - The Company executed a 5-year lease renewal for its facility in Torrance, CA, resulting in an increase in ROU Assets of approximately $33 million [93].

Economic Overview - Major indexes have experienced volatility, with soft economic data raising concerns about the economy's health [1][3] - The August jobs data showed private payrolls increased by only 142,000, below the expected 161,000, leading to worries about a cooling labor market [3] - The manufacturing sector continues to struggle, with the ISM manufacturing index declining for the fifth consecutive month [4] Market Performance - The S&P 500 declined 4.3% for the week, marking its worst week since March 2023, while the Nasdaq fell 5.8%, its worst weekly performance since 2022 [4] - September is historically one of the worst months for stocks, with the S&P 500 showing poor performance since 1950 due to portfolio adjustments by investors returning from summer vacations [7][6] Federal Reserve Actions - The Federal Reserve is expected to initiate rate cuts, with a 25 basis point cut anticipated in the upcoming FOMC meeting [5] - There is uncertainty regarding the extent of the rate cuts, especially with the Presidential election approaching [6] Dividend-Paying Stocks - In light of market volatility, investing in dividend-paying stocks is recommended for steady income and capital preservation [2][8] - Companies highlighted for their dividend performance include: - **Virco Mfg. Corporation (VIRC)**: Dividend of $0.03 per share, 0.61% yield, payout ratio of 5% [10] - **Brady Corporation (BRC)**: Dividend of $0.24 per share, 1.29% yield, payout ratio of 22% [12] - **Broadcom Inc. (AVGO)**: Dividend of $0.53 per share, 1.49% yield, payout ratio of 56% [15] - **Verizon Communications Inc. (VZ)**: Dividend of $0.68 per share, 6.23% yield, payout ratio of 58% [17]

Core Viewpoint - Virco Manufacturing Corporation (VIRC) reported mixed results for the second quarter of fiscal 2024, with earnings exceeding expectations while sales fell short, leading to a 9.3% decline in share price following the announcement [1]. Financial Performance - Adjusted earnings were reported at $1.04 per share, surpassing the Zacks Consensus Estimate of $1.00 by 4%, and increased from 95 cents per share in the previous quarter [5]. - Net sales reached $108.4 million, missing the consensus estimate of $115.9 million by 6.5%, but grew 1% year-over-year [5]. - Gross profit increased by 3.4% year-over-year to $50.2 million, with gross margin expanding by 100 basis points to 46.3% [6]. - Operating profit was reported at $21.9 million, compared to $21.2 million in the prior-year quarter [7]. Operational Highlights - The increase in earnings and sales was driven by higher factory output, improved operating efficiencies, and a significant counter-seasonal disaster recovery order [2]. - Although order rates slightly declined during summer, shipments and backlog remained higher than the previous year, indicating confidence in adapting to market changes [3]. Strategic Outlook - The company plans to pursue potential acquisition opportunities to enhance its business capabilities and aims to add shareholder value through quarterly dividends and share repurchases [4]. - Virco's strong financial position supports ongoing investments in new manufacturing equipment and service expansions, positioning the company to capitalize on unexpected opportunities in the post-pandemic market [3]. Financial Position - As of the end of the fiscal second quarter, cash stood at $0.8 million, down from $5.3 million at the end of fiscal 2023, while long-term debt slightly decreased to $4 million [8]. - Inventory at the end of the second quarter was $58.6 million, a slight increase from $58.4 million in the year-ago period [8].

Financial Performance - EPS improved by 9.5% in the second quarter and 33.3% year-to-date to a record $1.16 per share[1] - Operating income reached 20.2% in the second quarter and 16.0% year-to-date, with a record operating income of $21,894,000 in Q2[4] - Revenue increased by 1.0% in the second quarter to $108,419,000 and by 9.1% year-to-date to $155,154,000[2] - Gross profit for the second quarter improved to $50,218,000, with a gross margin of 46.3%[2] - Net sales for the three months ended July 31, 2024, increased to $108,419,000, up from $107,321,000 for the same period in 2023, representing a growth of 1.02%[14] - Gross profit for the six months ended July 31, 2024, was $70,565,000, compared to $61,780,000 for the same period in 2023, reflecting an increase of 14.5%[15] - Net income for the three months ended July 31, 2024, was $16,833,000, compared to $15,534,000 for the same period in 2023, marking a rise of 8.35%[14] - Operating income for the six months ended July 31, 2024, was $24,865,000, compared to $19,942,000 for the same period in 2023, an increase of 24.4%[15] - The company reported a basic net income per common share of $1.04 for the three months ended July 31, 2024, compared to $0.95 for the same period in 2023, an increase of 9.5%[14] Debt and Liabilities - Interest expenses decreased significantly to $322,000 in Q2 from $1,083,000 last year, with year-to-date interest expenses at $530,000[3] - The company is effectively debt-free, marking a significant milestone in its 75-year history[3] - Total current liabilities decreased to $55,506,000 as of July 31, 2024, from $91,063,000 as of July 31, 2023, indicating a reduction of 39%[13] - The current portion of long-term debt decreased significantly to $253,000 as of July 31, 2024, from $32,256,000 as of July 31, 2023[13] Equity and Dividends - Total stockholders' equity increased to $107,812,000 as of July 31, 2024, up from $82,295,000 as of July 31, 2023, representing a growth of 31.1%[13] - The quarterly dividend was increased to $0.025 per share, payable on October 11[1] - The company declared cash dividends of $0.02 per common share for the three months ended July 31, 2024, compared to no dividends declared in the same period of 2023[14] Management Insights - Management noted a slight softening in order rates as summer progressed, indicating potential challenges in post-pandemic recovery[6] - The company completed a 5-year lease renewal on its Torrance headquarters, enhancing its logistical advantages[5] - Management is actively reviewing options for capital allocation, including dividends, share repurchases, and potential acquisitions[10]

Virco Manufacturing Corporation (VIRC) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced earnings of $0.13, delivering a surprise of 200%. Over the last four quarters, the c ...

Virco Mfg. Corporation (VIRC) is expected to have generated stronger performance in second-quarter fiscal 2025. In the last reported quarter, VIRC's earnings per share (EPS) and net sales surpassed the Zacks Consensus Estimate by 200% and 24%, respectively. On a year-over-year basis, revenues increased 33.7% and EPS expanded 244.4%. The company's bottom line topped the consensus mark in seven of the trailing eight quarters. Trend in Estimate Revision The Zacks Consensus Estimate for the to-be-reported quart ...

Exhibit 99.1 Virco Reports 33.7% Increase in First Quarter Revenue; Net Income of $2.1 million; Declares Regular Quarterly Dividend The Company's Board also declared a regular quarterly dividend of $0.02 per share, payable on July 12, 2024 to shareholders of record as of June 21, 2024. In addition, the Company reported that it has completed its first round of open market share repurchases totaling $1.5 million. A large individual order related to disaster relief and recovery contributed materially to the st ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File number 1-8777 VIRCO MFG. CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 95-1613718 (State or Other Jurisdiction of Incorp ...