Virco(US:VIRC)2024-09-09 18:04Financial 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]