WEB NEWS Research
Virco Mfg. Corporation (NASDAQ:VIRC)($10.86; $177.5m Market cap), reported Q1 2025 results:
Sales of $46.7 million vs $34.9 million in the prior year; beat analyst estimate of $37.7 million
EPS of $0.13 vs a loss of $0.09 in the prior year and ahead of analyst estimate of a loss of $0.13
Seasonally Light Quarter Swings to Profit on Strong Shipments, Steady Margins
Company Completes First Round of Open Market Share Repurchases Totaling $1.5 million; Current Authorization Includes Additional $3.5 Million for Future Repurchases
“Our large disaster recovery order allowed our factories to run at high volume while simultaneously generating strong shipments, a pattern that we rarely see during our normal annual cycle. While this exact pattern may not repeat itself in the future, it is reflective of the kinds of large opportunities supported by the flexibility of our U.S. factories and the underlying strength of our balance sheet. In the past we’ve described two competitive “moats” around our core market of school furniture and equipment. These are 1) extreme seasonality; and 2) the price/cube threshold, which makes bulky school furniture more costly to import. We may be seeing the development of a third moat —financial strength— that allows us to take advantage of seasonal, complex, logistically intensive opportunities that may be increasingly difficult for import-based models to finance. We are also actively evaluating potential acquisitions that would expand and strengthen our current capabilities. These including major equipment purchases, as well as bolt-on acquisitions of smaller companies or suppliers who might appreciate and contribute to our strong operating culture.”
VIRC, a past Model Portfolio holding , is trading at forward P/E of 6.7 on full year 2025 analyst estimates of $1.60, which may need to be adjusted since they crushed Q1.
VIRC is the largest manufacturer and supplier of movable furniture and equipment for educational environments in the US.
Research
Virco Mfg. Corporation (NASDAQ:VIRC) ($10.93; $178.6 market cap) provided an updated investor presentation with preliminary results for the fiscal year ending January 31, 2024. The preliminary full year sales of $269.1 million is slightly ahead of current analyst estimates of $267.3 million.
As of January 31, 2024, the Company’s fiscal year end, shipments plus backlog had reached an all-time Company record of $317.6 million. Preliminary, unaudited cash flow and net income for fiscal 2024 also set records not achieved in the last 20 plus years.
VIRC is the largest manufacturer and supplier of movable furniture and equipment for educational environments in the US
Research
Virco Mfg. Corporation (NASDAQ:VIRC), the largest manufacturer and supplier of movable furniture and equipment for educational environments in the US, reported Q2 2024 results:
Sales of $107.3 million vs $82.7 million in the prior year; beat analyst estimate of $95.2 million
EPS of $0.95 vs EPS of $0.60 in the prior year and ahead of analyst estimate of a EPS of $0.64
“We performed exceptionally well in this year’s back-to-school season. We had a record backlog of deliveries to make, and we made them. This ability to execute is directly tied to our domestic U.S. factories and logistics teams. As schools have extended their instruction calendar to make up for pandemic-related learning loss, our summer delivery window has effectively been narrowed. We have the physical footprint and the operating know-how to make and deliver millions of pounds of furniture in what is now a six- to eight-week delivery season. This environment has been increasingly challenging for import-based competitors. We are seeing a meaningful gain in new customers in this new competitive landscape.”
PodClips
Virco Mfg. Corporation (NASDAQ:VIRC) ($4.01; $65.0 market cap), the largest manufacturer and supplier of movable furniture and equipment for educational environments in the US, provided a new investor presentation .
Please listen to this PodClip from Maj where he discusses some of the details included in the presentation.
The most important takeaway is that management is aware that they need to find a way to reduce the seasonality of the business, which has been our biggest concern.
Again, you can listen to the PodClip here .
Research
Virco Mfg. Corporation (NASDAQ:VIRC) ($4.85; $78.0 market cap), the largest manufacturer and supplier of movable furniture and equipment for educational environments in the US, reported strong Q3 2023 results:
“We devoted a lot of energy to enhancing the capabilities of our U.S. operations. These enhancements continued even during the COVID pandemic, when many of our school customers were closed. We always believed that in-person schooling was essential—not just for students—but for parents, teachers, communities, and our shared aspirations as people.
I was inspired by the activity in our factories and shipping docks during this year’s summer season. Thanks to the optimism and resolve of our staff, we proved there is dignity in a job well done. I am thankful to our employees for their heroic efforts, and to our shareholders whose patience supported this performance. I also look forward to supporting the renaissance in public and private education. The last few years were hard, but the future looks bright.”
The company mentions a new investor presentation in the press release, we do not see it published yet, but will review to determine if there is any forward looking guidance in the presentation once available.
Research
Virco Mfg. Corporation (NASDAQ:VIRC) ($4.79; $77.6 market cap) - Director Agnieszka Winkler filed a form 4 adding 2,000 shares of VIRC on the open market at an average price of $4.76 bringing total shares to 57,701. VIRC is the largest manufacturer and supplier of movable furniture and equipment for educational environments in the United States.
In related news, Wedbush maintained VIRC with an “Outperform” rating and raised the price target to $9.00 (prior was 8). Analyst EPS estimates has been raised to $0.71 for fiscal 2023 from $0.39.
Comments & Business Outlook
Third Quarter 2014 Results
Revenue for the third quarter of 2014 totaled $62,652,000, an increase of 5.4% compared to last year's $59,454,000.
Q3 2014 EPS of $0.31 vs $0.23 in the prior year
Multiple indicators suggest that the Company's core market for public school furniture is finally experiencing a more evenly distributed recovery. A surge of late summer fill-in orders pushed more revenues into the third quarter and drove backlogs higher as the Company heads into its traditionally slower fourth quarter. These types of orders are typically purchased from tax-funded operating budgets as opposed to bond-funded construction budgets, which tend to be more volatile. Management believes fill-in orders are indicative of overall industry health because they reflect school districts' confidence in budgeting. Management also believes that the Company's large installed base positions it to take advantage of this recovering demand, since schools often mirror their existing furniture with matching replacements.
Perhaps most encouraging is the Company's overall trend on incoming orders. For seven of this year's nine months, incoming orders were higher than the low ebb of the recession cycle, which stretches back six years. This is a more sustained upward trend than at any time since the onset of the recession. Most importantly, incoming orders were substantially higher during the peak summer months, which with their higher volume have a disproportionate impact on full-year results. Through November (as of this writing) incoming orders have increased by 7.8% compared to last year.
Taken as a group, these industry indicators drawn from Company results suggest a general upward trend of about 4-5%. They also highlight the Company's ability to respond efficiently to last-minute demand through a combination of extensive sales history, forecasting, and nimble domestic fabrication. While no single one of these measures should be taken as the most accurate indicator of industry health, Management believes that together they provide evidence of economic conditions at the state and local level finally improving enough to translate into stronger public school funding and a long-anticipated upgrading of moveable furniture and equipment.
Virco has enjoyed a continuity of management and strategic focus since its founding in 1950 by Julian Virtue. As Virco's core public school market begins to recover and the Company expands its strategic possibilities for growth, the Company's Board of Directors has adopted a formal succession plan to support growth. As part of this plan, Douglas Virtue has been named President and Chief Operating Officer. Robert Virtue will continue as Chairman of the Board and CEO.
