Following the announcement of its latest earnings report, shares of Virco Mfg. Corporation (NASDAQ: VIRC) experienced a significant uptick last Friday. After rising by 21.45%, the stock ended the previous session at $13.19. With a 33.7% rise in shipments for the first quarter ended April 30, 2024, Virco recorded $2.1 million in net profits.
A normal quarterly dividend of $0.02 per share was also announced by the Board of Directors, and it will be paid to shareholders of record as of June 21, 2024, on July 12, 2024. Additionally, the business completed its initial $1.5 million round of open market share repurchases. A substantial order related to disaster relief and recovery significantly contributed to these robust first-quarter results, with the project now partially complete.
Operational Performance And Seasonal Trends
Virco’s annual business cycle typically reaches its zenith during the summer, coinciding with school vacations when furniture deliveries can occur without disrupting student activities. Management expects that after the completion of the significant disaster relief project, the company’s delivery cycle will return to its standard seasonal pattern.
Despite operating in a challenging economic climate, Virco’s domestic operations—which include vertically integrated sales, manufacturing, logistics, and field service—maintained efficient performance. For the first quarter, shipments totaled $46.7 million, and gross profit rose by 54.1% to $20.3 million.
Future Outlook And Planning Metrics
As of May 31, 2024, the company’s “Shipments plus Backlog” metric—a non-GAAP figure used by management for early-season planning—was approximately $167 million, slightly down from $168 million the previous year. However, this figure does not fully account for the partially completed disaster-recovery project.
The overall order intake, including the initial segment of this significant order, increased by about 7% compared to the same period last year. This, combined with high shipment volumes, led to a modest decline in “Shipments plus Backlog.” Management anticipates a year-over-year improvement in this metric as the large order progresses through the conversion cycle.
Virco looks forward to a productive summer delivery season, supporting the ongoing recovery of America’s public and private schools. The company also anticipates meeting with shareholders at the Annual Meeting in Torrance, California, on June 18th.
