Virco Manufacturing Corporation · NASDAQ:VIRC
Virco Manufacturing — Virco Mfg. — Investor Presentation (March 2024)
22 slides from Virco Manufacturing's investor presentation, March 2024
Slide 1: Virco is a post-pandemic re-shoring play
Virco (NASDAQ: VIRC) is a post-pandemic re-shoring play without the risk and expense of re-shoring. MARCH 2024 VIRCO MFG. CORPORATION
Slide 2: Bring Production Home? Virco Never Left.
Bring Production Home? Virco Never Left. VIRCO MFG. CORPORATION 2 MARCH 2024
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding: our future financial results and growth in our business; business strategies;
Slide 4: Virco is America's leading manufacturer and supplier of educational furniture and equipment
Virco is America’s leading manufacturer and supplier of educational furniture and equipment. You know our furniture, but you may not know our name. 55,000,000 public and private school students and 7,000,000 teachers and support staff spend time on school campuses during the school year. Most of the
Slide 5: Virco Mfg. Corporation Corporate Overview
Virco Mfg. Corporation (NASDAQ:VIRC) Corporate Overview • 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 engaged in day-to-day
Slide 6: Main Product Categories
Main Product Categories Chairs Library & Media Desks STEM Tables Storage Cafeteria Administration VIRCO MFG. CORPORATION 6 MARCH 2024
Slide 7: Why Virco. Why now?
“Why Virco. Why now?” China’s admission to the World Trade Organization in 2001 had the effect of capping prices and revenue for many U.S. manufacturers. This impact was partially buffered for Virco by two “moats” around the market for school furniture: extreme seasonality and the Price/ Cube Thresh
Slide 8: Investment Highlights
Investment Highlights • Exceptional brand awareness with reputation for safety, reliability and quality earned over 74+ years of serving the education market • Well positioned to benefit from ongoing rationalization of extended supply chains • Economic barriers to entry like seasonality and the “pri
Slide 9: Virco Timeline – 1965 to 2024
Virco Timeline – 1965 to 2024 (Virco’s fiscal year ends on January 31. This can lead to potential confusion about which years are under discussion. The timeline below uses Virco’s fiscal year end [FYE]. For example, the last year in the timeline, FYE ’24, was “calendar 2023.” Net income displayed be
Slide 10: Timeline
Timeline • Virco founded in 1950 • After going public in June of 1964, Virco released the “9000 Classic Series”, possibly the world’s largest-selling chair with over 60,000,000 units sold • Virco prospers through the long Baby Boom and its “echo” • 2000: Investment of over $60mm in Conway “Plant II”
Slide 11: Net Sales & Operating Cash Flow – 2001 to 2024
Net Sales & Operating Cash Flow – 2001 to 2024 China enters the WTO putting pressure on U.S. manufacturers Virco introduces the award winning ZUMA Series to the market, launching a whole new era in school furniture. $300,000 Preliminary Virco becomes the first company to be awarded GREENGUARD for La
Slide 12: Virco Shipments + Backlog at Fiscal Year End 2002-2024
Virco Shipments + Backlog at Fiscal Year End 2002-2024 • “Shipments + Backlog” is a non-GAAP internal metric used 320 by management to plan production, staffing, inventories, and seasonal working capital. 300 • It combines actual year-to-date shipments as of a particular 280 date plus the unshipped
Slide 13: Virco is a different investment because its market and business model are different
Virco is a different investment because its market and its business model are different. Extreme seasonality and the Price/Cube Threshold create structural barriers to entry for bulky, long-lead time imports. The speed and flexibility of Virco’s U.S. factories turn these market characteristics into
Slide 14: Proprietary PlanSCAPE Software & Project Management
Proprietary PlanSCAPE® Software & Project Management Virco’s Direct Sales Force Uses PlanSCAPE to Help Schools Design and Plan Projects Comprehensive Project Management Process DESIGN PROCUREMENT INSTALLATION CLOSING PHASE PHASE PHASE PHASE Define the project Secure products Receive, Resolve open sc
Slide 15: MARCH 2024 VIRCO MFG. CORPORATION
VIRCO MFG. CORPORATION 15 MARCH 2024
Slide 16: Classrooms, Cafeterias and Food-Service, Administration, Science Labs
CLASSROOMS CAFETERIAS AND FOOD-SERVICE ADMINISTRATION SCIENCE LABS VIRCO MFG. CORPORATION 16 MARCH 2024
Slide 17: Libraries & Media Centers, Performing Arts, Clinics, Break Rooms
LIBRARIES & MEDIA CENTERS PERFORMING ARTS CLINICS BREAK ROOMS VIRCO MFG. CORPORATION 17 MARCH 2024
Slide 18: Seminar, Hospitality, Career Training and Technology, Places of Worship
SEMINAR HOSPITALITY CAREER TRAINING AND TECHNOLOGY PLACES OF WORSHIP VIRCO MFG. CORPORATION 18 MARCH 2024
Slide 19: Highly seasonal market for school furniture and equipment
The market for school furniture and equipment is highly seasonal: 60% of deliveries take place in the months of June through August. Extreme seasonality creates a significant barrier to entry for products with long lead times, like those that come from factories overseas. The peak month for incoming
Slide 20: The Price/Cube Threshold
The Price/Cube Threshold is the The Price/Cube Threshold minimum selling price per cubic foot needed to Retail selling price per cubic foot offset the costs and risks of ocean freight. The price/cube threshold forms a protective moat around Virco’s bulky school furniture, which sells $30 below the t
Slide 21: Virco has a strong balance sheet and limited debt
Virco has a strong balance sheet and limited debt. Financial efficiencies actually improved during the pandemic. The Company Is currently well-capitalized to support growth into adjacent markets, as well as a balanced portfolio of shareholder returns. Preliminary Unaudited 120 ($ In thousands) 1/31/
Slide 22: Fully capitalized U.S. infrastructure staffed by the most experienced workforce
Fully capitalized U.S. infrastructure staffed by the most experienced workforce in the industry. Virco’s operating assets match the unique characteristics of the U.S. school furniture market. The Torrance, California factory and distribution center serve states west of the Rockies, as well as intern