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Apr 30, 2024
Virco Q1 2025 Earnings Report
Virco reported a 33.7% increase in first quarter revenue, achieving a net income of $2.1 million, and declared a regular quarterly dividend.
Key Takeaways
Virco Mfg. Corporation announced a significant increase in shipments for the First Quarter ended April 30, 2024, with revenue growing 33.7% compared to the prior year, resulting in a net income of $2.1 million, a substantial improvement from a $1.4 million loss in the same period last year. The company also declared a quarterly dividend of $0.02 per share and completed a $1.5 million share repurchase.
First Quarter revenue increased by 33.7% year-over-year, reaching $46.7 million.
The company swung to a net income of $2.1 million from a net loss of $1.4 million in the prior year's first quarter.
Gross margin improved significantly to 43.5% from 37.8% in the prior year, driven by higher factory output efficiencies and stable raw material costs.
The Board declared a regular quarterly dividend of $0.02 per share, payable on July 12, 2024, and completed a $1.5 million open market share repurchase.
Virco
Virco
Forward Guidance
Management anticipates that after the completion of a large disaster relief project, the Company's delivery cycle will revert to its normal seasonal pattern. They also expect modest year-over-year improvement in 'Shipments plus Backlog' as the balance of the large order moves through the conversion cycle. The company is actively evaluating potential acquisitions to expand and strengthen current capabilities.
Positive Outlook
- Anticipated modest YOY improvement in 'Shipments plus Backlog' as large orders convert.
- Flexibility of U.S. factories and strong balance sheet support large, logistically intensive opportunities.
- Actively evaluating potential acquisitions to expand and strengthen current capabilities.
- Considering major equipment purchases to enhance operations.
- Looking forward to a busy and productive summer delivery season and continued recovery of public and private schools.
Challenges Ahead
- The exact pattern of high-volume factories and strong shipments seen in Q1 may not repeat itself.
- The 'Shipments plus Backlog' metric is cautioned against for forecasting due to timing reasons.
- The company's delivery cycle is expected to revert to its normal seasonal pattern after the large project, implying a return to seasonality.
- Import-based models may find it increasingly difficult to finance seasonal, complex, logistically intensive opportunities.
- Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially.