Business
Virco Reports $0.08 Per Share Net Income for Fiscal Third Quarter, 7.6% Increase in Revenue through Nine Months, and Record Backlog
Highlights: Stimulus funding continues to drive high order ratesMaterial shortages and higher input costs impact third quarter net sales and gross
About this update from Virco Manufacturing Corporation
[{"type":"text","content":"Highlights: Stimulus funding continues to drive high order ratesMaterial shortages and higher input costs impact third quarter net sales and gross marginOutput and shipments accelerating into fiscal fourth quarter TORRANCE, Calif., Dec. 13, 2021 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ: VIRC), the largest manufacturer and supplier of movable furniture and equipment to the education market in the United States, today reported financial results for the quarter ended October 31, 2021 (third quarter of fiscal 2022 ending January 31, 2022). Net sales were $57.3 million for the third quarter of fiscal 2022, up slightly from $57.2 million for the same period of the prior fiscal year. Net income was $1.3 million, or $0.08 per diluted share for the third quarter of fiscal 2022, a decline of 70.4%, compared to net income of $4.5 million, or $0.28 per diluted share, for the same period of the prior fiscal year. Material shortages and higher input costs due to supply chain problems had negative impacts on both gross margin and overall factory output and shipments during the fiscal third quarter. Order rates and demand for school furniture remain very strong. As of November 30, 2021, the fiscal year-to-date shipments plus unshipped backlog (“Shipments + Backlog), the Company’s preferred measure of current and future business activity, was $205.7 million. This compares to $158.7 million and $191.2 million on the same date in 2020 and 2019, respectively. As availability of material supplies has improved, factory output and shipments have begun to accelerate in recent weeks. The backlog component still remains in record territory at $45.1 million, compared to $18.9 million and $19.0 million on the same date in 2020 and 2019, respectively. Robert Virtue, Chairman and CEO of Virco, said, “While our U.S. production facilities continue to provide a significant competitive advantage with shorter delivery times on orders, we have not been immune from the impact of global supply chain problems. Shortages of steel and other components limited factory output, and related inflationary pressures on all raw materials reduced our gross margin during our fiscal third quarter. However, supplies of component materials have recently improved, and factory output has increased as a result. For the months of October and November, factory output was rough...