Business
Virco Reports 8.7% Increase in First Quarter Revenue and 16.4% Increase in “Shipments + Backlog”
Shipments + Backlog Achieves New Record on May 31, 2023Revenue Growth and Greater Margins Drive Improvement Operating Loss in Seasonally Light First Quarter
About this update from Virco Manufacturing Corporation
[{"type":"text","content":"Shipments + Backlog Achieves New Record on May 31, 2023Revenue Growth and Greater Margins Drive Improvement Operating Loss in Seasonally Light First Quarter Declines 72.3% from $4.7 million to $1.3 million TORRANCE, Calif., June 12, 2023 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ: VIRC), the largest manufacturer and supplier of movable furniture and equipment for educational environments in the United States, today reported financial results for the quarterly period ended April 30, 2023 (first quarter of fiscal 2024). Net Sales were $34.9 million for the first quarter of fiscal 2024, an 8.7% increase from $32.1 million for the same period of the prior fiscal year. Operating Loss in the seasonally light first quarter declined 72.3% to $1.3 million from $4.7 million in the same period of the prior year, reflecting the broad positive impacts of higher revenue combined with higher margins. Selling, General, and Administrative(SG&A) expenses were virtually flat at $14.5 million or 41.5% of sales, versus $14.5 million, or 45.0% of sales, for the same period of the prior year. Interest expense for the first quarter of fiscal 2024 was $0.7 million compared to $0.4 million in the prior year, reflecting both higher interest rates and a modestly higher balance on the Company’s line of seasonal working capital. For investors unfamiliar with Virco’s seasonal business cycle, the Company typically books orders and builds inventory during the first and fourth quarters, corresponding to the months when public schools are in session and thus unable to receive deliveries that might interrupt student instruction. The Company then delivers between 50-60% of total annual revenue in the second and third quarters, which correspond to “summer vacation” in most public and private schools. Given this extreme seasonality, Management has developed several internal, non-GAAP metrics to evaluate trends in the business cycle during seasonally light quarters, when revenue alone may provide incomplete information. Management believes that one of the most helpful of these early-season metrics is “Shipments + Backlog” (technically the sum of year-to-date shipments + unshipped orders on the Company’s backlog) which is used for planning production schedules, staffing, and borrowings under the Company's seasonal credit revolver. Because the Company books orde...