Business
Virco Reports Third Quarter Revenue Increased 35%, Driving Improved Financial Performance Across Multiple Metrics
Strong Execution by U.S. Factories and Logistics Provide Timely Delivery to Public and Private SchoolsYTD Revenue up 32.9% to $192.3 millionYTD Gross Margin
About this update from Virco Manufacturing Corporation
[{"type":"text","content":"Strong Execution by U.S. Factories and Logistics Provide Timely Delivery to Public and Private SchoolsYTD Revenue up 32.9% to $192.3 millionYTD Gross Margin Improves to 37.6% vs. 34.8% in Prior YearYTD SG&A Declines from 31.8% to 29.7%YTD Operating Income Up Over 3X, from $4.3 million to $15.2 millionCompany Releases Updated Investor Presentation and Corporate Governance Guidelines at www.virco.com TORRANCE, Calif., Dec. 12, 2022 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (Nasdaq: VIRC) reported today that net revenue for the Company’s third quarter ended October 31, 2022 increased 35.0% to $77.4 million compared to $57.3 million in the same period of the prior year. While last year’s operations were constrained by supply chain and staffing challenges, the conclusion of this year’s summer delivery season was notable for improved efficiencies across most levels of the Company’s vertical business model. Gross margin for the third quarter was 39.8%, up from 35.4% in the same period of the prior year. The improvement in gross margin was due to a combination of higher volume and previously implemented price increases, which partially offset the ongoing impacts of inflation. SG&A declined to 28.4% from 31.0% in the prior year. Operating income improved proportionately to $8.8 million from $2.5 million in the prior year. After interest and taxes, total net income for the third quarter was $7.9 million vs. $1.3 million for the same period in the prior year. Through nine months, net revenue increased 32.9% to $192.3 million from $144.7 million last year. Gross margin improved to 37.6% from 34.8%. SG&A through nine months declined to 29.7% from 31.8%. Operating income through nine months was up 3.6 times, from $4.3 million last year to $15.2 million this year. Interest expense through nine months was $1.7 million vs. $1.0 million in the prior year, due to a combination of higher revenue and higher interest rates. As a percent of sales, interest was 0.9% through nine months vs. 0.7% in the same period last year. For the nine months ended October 31, 2022 and 2021, the effective income tax rates were 2.6% and 22.2%, respectively. The change in effective tax rates for the nine months ended October 31, 2022, was primarily due to the recording of a valuation allowance needed for federal deferred tax assets and certain state net operating loss ...