Virco(US:VIRC)2024-12-09 19:03Revenue 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].