Virco(VIRC) - 2022 Q1 - Quarterly Report

Orders and Sales Performance - Orders received for the first quarter increased by 26.7% compared to the same period of the prior year, while sales volume increased by 59.2%[81] - Backlog of orders at April 30, 2021, was approximately $2.1 million greater than the prior year[85] Financial Metrics - Gross margin for the first quarter was 27.1% of sales, slightly down from 27.5% in the prior year[87] - Selling, general and administrative expenses increased by less than 1% compared to the same period last year, decreasing as a percentage of sales to 42.2% from 67.0%[88] - The Company incurred a pre-tax loss of $5.094 million on sales of $28.367 million for the three months ended April 30, 2021[86] Accounts and Inventory Management - Accounts receivable increased by $6.77 million at April 30, 2021, attributed to increased sales volume and timing[92] - Inventory decreased by $15.315 million at April 30, 2021, due to cautious inventory management and increased sales activity[92] Expenses and Capital Expenditures - Interest expense decreased by $111,000 for the three months ended April 30, 2021, due to lower average outstanding borrowings[89] - Capital expenditures for the three months ended April 30, 2021, were $428,000, down from $922,000 in the prior year[94] Anticipated Costs - The Company anticipates an additional cost of $1.5 million for overtime pay during the seasonal summer peak[84]