Business
Virco Reports Full Year Revenue Increased 25% to $231.1 Million, Delivering Operating Income of $10.8 Million
Market for School Furniture Continues Post-Pandemic RecoveryFull Year Gross Margin Expands to 36.9% vs. 33.0% in prior yearGross Profit Improves 40% as
About this update from Virco Manufacturing Corporation
[{"type":"text","content":"Market for School Furniture Continues Post-Pandemic RecoveryFull Year Gross Margin Expands to 36.9% vs. 33.0% in prior yearGross Profit Improves 40% as Revenue Growth Pushes U.S. Factories and Logistics Solidly Above Break EvenPositive Momentum Continues into 2023 with Strong Order Flows and Record Backlog TORRANCE, Calif., April 28, 2023 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (Nasdaq:VIRC) reported today that net sales for the Company’s fiscal year ended January 31, 2023 increased 25.0% to $231.1 million compared to $184.8 million in the prior year. The Company’s revenue and operating margins have now returned to profitable levels following major market disruptions from the pandemic and related school closures. Net revenue in the Company’s seasonally light fourth quarter declined to $38.8 million compared to $40.1 million in the same period last year. The modest decline in revenue was attributable to improved delivery performance in the second and third quarters of the 2023 fiscal year. In the prior year supply chain issues caused delayed deliveries extending into the fourth quarter. Despite the minor decline in revenue, operating margins continued to improve on a year-over-year basis. For the fourth quarter, gross margin was 33.5% up from 26.5% for the same period in the prior year. This improvement was due to three factors: price increases implemented earlier in the year; stabilizing raw material and freight costs; and improved manufacturing efficiencies. For the fourth quarter SG&A as a percentage of sales increased to 44.9% compared to 38.0% in the prior year. Higher expenses were due primarily to the large number of new business opportunities being developed by the Company’s sales and marketing teams in addition to a provision for a bonus payable to all salaried employees based upon the Company’s financial results. As of March 31, 2023 many of these opportunities had converted to actual orders, pushing year-to-date “shipments plus backlog” to an all-time high of $106.9 million, an increase of 25.7% from the year ago period, which was also a record. The operating loss in the seasonally light fourth quarter was $4.4 million versus $4.6 million for the same period last year, again reflecting improvements in margin and operating efficiencies that more than offset modest decline in shipments. As reported above, net sales fo...