Virco Manufacturing Corporation · NASDAQ:VIRC
Virco Manufacturing — Virco Mfg. — Investor Presentation (December 2022)
25 slides from Virco Manufacturing's investor presentation, Dec 12, 2022
Slide 1: Virco Investor Presentation December 2022
VIRCO Investor Presentation December, 2022 Investor Presentation - December 2022 1Virco Mfg. Corporation: VIRC
Slide 2: Forward-Looking Statements
2Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding: our future financial results
Slide 3: Corporate Overview
Investor Presentation - December 2022 Business Dynamics and Key Trends 3 • Largest manufacturer and supplier of movable furniture and equipment for the education market in the United States • Founded in 1950 by Julian Virtue • Founding family still owns over 30% of outstanding shares; actively engag
Slide 4: Investment Highlights
Business Dynamics and Key Trends 4Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Investment Highlights • Exceptional brand awareness with reputation for safety, reliability and quality earned over 70+ years of serving the education market • Well positioned to benefit from ongoing
Slide 5: Virco Timeline – 1965 to 2023
Business Dynamics and Key Trends Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Baby Boom Baby Boom Echo Virco Timeline – 1965 to 2023 $300,000 N et S al es (i n th ou sa nd s) $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 Rest
Slide 6: Timeline
Business Dynamics and Key Trends 6Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Timeline • Virco founded in 1950 • Virco goes public in 1965 and releases “9000” series, possibly the world’s largest-selling chair with over 60,000,000 units sold. • Virco prospers through the long
Slide 7: Seasonal Impact of Education Market
Business Dynamics and Key Trends Investor Presentation - December 2022 • Schools typically place orders in late Spring or early Summer for delivery prior to the start of the upcoming school year • Approximately 50% of Virco’s annual sales are recognized in the months of June, July and August • Due t
Slide 8: Shipments + Backlog at May 31 vs. Year-Ending Revenue: 2001-2023
Business Dynamics and Key Trends 8Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Virco Shipments + Backlog at May 31 vs. Year-Ending Revenue: 2001-2023 • Shipments + Backlog is a non- GAAP internal metric used by management to plan production, staffing, inventories, and seasonal
Slide 9: Shift in Price/Cube Threshold Creating Additional Opportunities for Virco
Business Dynamics and Key Trends Investor Presentation - December 2022 9 • Following China’s entry into the WTO, many furniture and equipment markets shifted to Chinese suppliers to take advantage of lower cost labor and production • Education market was less impacted as large, bulky items required
Slide 10: Main Product Categories
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 10 Main Product Categories Chairs Desks Tables
Slide 11: "Education" Encompasses A Diverse Number Of Venues
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 11 • Classrooms • Administration • Cafeterias and Food-Service • Science Labs • Libraries & Media Centers • Clinics • Performing Arts • Break Rooms • Seminar • Career Training and Technology • Hospitality • Places o
Slide 12: Classrooms, Administration, Cafeterias, Science Labs
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 12 CLASSROOMS ADMINISTRATION CAFETERIAS AND FOOD-SERVICE SCIENCE LABS
Slide 13: Libraries, Clinics, Performing Arts, Break Rooms
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 13 LIBRARIES & MEDIA CENTERS CLINICS PERFORMING ARTS BREAK ROOMS
Slide 14: Seminar, Career Training, Hospitality, Places of Worship
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 14 SEMINAR CAREER TRAINING AND TECHNOLOGY HOSPITALITY PLACES OF WORSHIP
Slide 15: Direct sales and project process
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 15 • Virco sales managers work directly with educators to specify products, provide layout and design, establish service and delivery expectations. • Pricing is confirmed with the nation’s leading public procurement
Slide 16: Proprietary PlanSCAPE Software & Project Management
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 16 Proprietary PlanSCAPE® Software & Project Management Virco’s Direct Sales Force Uses PlanSCAPE to Help Schools Design and Plan Projects Comprehensive Project Management Process Representative PlanSCAPE Project DE
Slide 17: Competitive advantages
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 17 One-stop shop • Product line expansion has enabled Virco to provide all furniture and equipment needs for schools and meet the desire for one vendor relationship Full-service capability • Layout planning, deliver
Slide 18: Substantial Manufacturing And Logistical Strength
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 18 Conway, AR - 1.75mm sq.ft. Torrance, CA - 0.55mm sq.ft. Virco Has Substantial Manufacturing And Logistical Strength • Facilities are designed, operated, and strategically positioned to support extreme throughput
Slide 19: Long-Term Value of Customer Base
Business Overview Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 19 • Largest installed base of furniture in U.S. education market creates significant annuity stream resulting from reorders • End users are 55,000,000 public and private school students plus 7,000,000 teachers and
Slide 20: Recent Trends Restored Revenue and Operating Margins
Financial Review and Growth Opportunities 20Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Recent Trends appear to have Restored Revenue and Operating Margins to Historic Levels of Profitability Financial Results of nine-month period ended October 31, 2022 compared to the same pe
Slide 21: Quarterly Revenue & Pre-Tax Income (Loss), FYE 2018-FYE 2023
Financial Review and Growth Opportunities 21Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Quarterly Revenue & Pre-Tax Income (Loss), FYE 2018-FYE 2023 (Unaudited) Pr e- Ta x In co m e (L os s) - (in th ou sa nd s) N et S al es (i n th ou sa nd s) $100,000 $75,000 $50,000 $25,000
Slide 22: Strong Balance Sheet
Financial Review and Growth Opportunities 22Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC Strong Balance Sheet Key Takeaways • Minimal long-term debt • Operations are largely self-funding • Improved working capital management resulting in lower year-over-year inventory levels de
Slide 23: Near-Term Growth Opportunities
Financial Review and Growth Opportunities 23Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC • Total addressable education market increasing to as much as $1 billion due to stimulus funding(1) • Stimulus funding driving long-delayed refurbishment projects among aging schools • Risi
Slide 24: Long-Term Strategies for Improving Financial Performance
Financial Review and Growth Opportunities 24Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC • Penetrate legacy markets over next 3-5 years - Prior to China entering WTO, furniture for retail market accounted for ~$40 million in annual sales (major customers included Walmart and Ho
Slide 25: Summary
Financial Review and Growth Opportunities Investor Presentation - December 2022 Virco Mfg. Corporation: VIRC 25 Market leading company with seasoned leadership, strong balance sheet, and valuable infrastructure Favorably positioned to capitalize on multiple positive catalysts and generate near-term