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Jan 31, 2024
Virco Q4 2024 Earnings Report
Virco's Q4 2024 revenue increased by 9.8% to $42.6 million, and the company reported a net income of $21.9 million for the full fiscal year.
Key Takeaways
Virco Mfg. Corporation reported a 9.8% increase in revenue for the seasonally light fourth quarter, reaching $42.6 million. For the full fiscal year, revenue increased by 16.5% to $269.1 million, with net income growing 32.4% to $21.9 million. The company ended the year effectively debt-free.
Full year revenue increased 16.5% to $269.1 million.
Full year net income reached $21.9 million, a 32.4% growth.
The company ended the fiscal year effectively debt-free.
Full year gross margin expanded to 43.1% from 36.9% in the prior year.
Virco
Virco
Forward Guidance
Management expects to utilize its revolving credit facility during the peak summer season and views its strong financial position as essential for providing continuity of service to schools and balanced returns to investors. The company's 'Shipments + Backlog' metric, a key indicator for planning, reached a record $317.6 million.
Positive Outlook
- Strong financial position and effective debt-free status at year-end.
- Continued growth in demand for PlanSCAPE project-management services.
- Integrated strategy combining reliable customer service and control of order-to-cash cycle.
- Ability to modulate inventories and borrowings despite supply chain disruptions.
- Record 'Shipments + Backlog' indicating strong future business velocity.
Challenges Ahead
- Markets and competition are always evolving, presenting ongoing challenges.
- Seasonal transition from backlog to shipments and receivables creates operational and financing burdens.
- Uncertainties and disruptions in the supply chain can impact operations.
- Higher interest rates contributed to increased interest expense.
- Reliance on proprietary systems, which may not be easily adaptable to rapid market changes.