Business
Virco Reports First Quarter Results
Net Sales Grew 59%Market for School Furniture in Strong RecoveryForward Indicator of Shipments + Backlog at Three-Year HighU.S. Factories, Vertical Model
About this update from Virco Manufacturing Corporation
[{"type":"text","content":"Net Sales Grew 59%Market for School Furniture in Strong RecoveryForward Indicator of Shipments + Backlog at Three-Year HighU.S. Factories, Vertical Model Deliver Superior On-Time Customer Service, Shorten Order-to-Cash CycleReliance on Seasonal Debt at Three-Year Low TORRANCE, Calif., June 11, 2021 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (Nasdaq: VIRC) released First Quarter results for the period ended April 30, 2021, in the following letter to Shareholders: Reflecting a strong recovery in the market for school furniture, Virco reported a 59% increase in net sales for the first quarter ended April 30, 2021. For the months of February through April, net sales were $28,367,000 versus $17,817,000 in the same period last year. Gross profit increased 57% from $4,904,000 to $7,688,000, consistent with the revenue increase, as the Company responded effectively to higher raw material and freight costs. The operating loss for the seasonally light first quarter declined from $7,027,000 last year to $4,295,000 this year. The Company’s preferred forward-looking indicator is “Shipments + Backlog,” which the Company defines as actual year-to-date net sales on a given date for the current fiscal year plus the un-shipped backlog that is expected to be recognized within that same fiscal year from customers that have already placed orders at confirmed prices and service terms. Recognizing that year-over-year comparisons to last year’s pandemic might not provide sufficient perspective, management looked back an additional year for comparison to more “normal” market conditions. The following chart shows three years of Shipments + Backlog at May 31 for the year indicated: Shipments + Backlog at May 31, 2021 2020 2019 $ 107,334,000 $ 84,050,000 $ 99,396,000 In addition to robust levels of business activity, the Company has also achieved iterative efficiencies in its vertical business model. These have been highlighted by current stresses in global supply chains. The speed and flexibility with which the Company can convert low-cost raw materials into higher-value customer-specified finished goods, combined with the precise demand visibility provided by direct relationships with public and private schools, has allowed the Company to reduce its dependence on debt-financed inventory compared to prior years while still providing superior on-time deliv...