TORRANCE, Calif. - Virco Mfg. Corporation (NASDAQ:VIRC), a leading manufacturer of educational furniture, has reported a significant turnaround in its first-quarter results with shipments increasing by 33.7% and net income reaching $2.1 million. This marks a substantial improvement from the $1.4 million loss experienced in the same quarter last year.
The company's shipments for the first quarter, which ended April 30, 2024, totaled $46.7 million, up from $34.9 million in the prior year. Gross margin also saw an increase to 43.5% from 37.8%, attributed to higher factory output and stable raw material costs.
Virco's Board has declared a quarterly dividend of $0.02 per share, set to be paid on July 12, 2024, to shareholders of record as of June 21, 2024. Additionally, the company has completed the first round of open market share repurchases, totaling $1.5 million, with an additional $3.5 million authorized for future repurchases.
A significant individual order related to disaster relief and recovery was a major contributor to the robust first-quarter results. This project is currently partially complete, and management expects the company's delivery cycle to return to its normal seasonal pattern once the project is finalized.
The company's efficient performance has been highlighted amidst challenging economic conditions, with a strong balance sheet showing a 37.4% decline in current liabilities and a 41.3% reduction in long-term liabilities. Total stockholder's equity increased by 37.3% to $91.6 million.
Virco's management advises caution regarding the use of "Shipments plus Backlog", a non-GAAP metric, for forecasting purposes, as it is primarily used for internal planning and may not fully reflect business trends.
This positive performance comes as Virco continues to evaluate potential acquisitions to expand its capabilities, including equipment purchases and smaller company acquisitions. The company's competitive advantages have been reinforced by its financial strength, allowing it to take on seasonal and logistically complex opportunities.
The information in this article is based on a press release statement from Virco Mfg. Corporation.
InvestingPro Insights
Virco Mfg. Corporation (NASDAQ:VIRC) has demonstrated a strong financial performance in the first quarter of 2024, and the outlook is optimistic according to the latest data from InvestingPro. With a market capitalization of $177.53 million USD and a P/E ratio that stands at a competitive 8.21, Virco is trading at a low earnings multiple, which suggests the stock might be undervalued relative to its near-term earnings growth.
InvestingPro Tips highlight that Virco has a perfect Piotroski Score of 9, indicating a very healthy financial situation, and the company has been operating with a high shareholder yield. Additionally, Virco’s liquid assets exceed its short-term obligations, providing financial flexibility and stability.
Key financial metrics from InvestingPro Data further reinforce the company's positive trajectory, with a robust revenue growth of 16.47% over the last twelve months as of Q4 2024, and a significant year-to-date price total return of 187.64%. The company also maintains a solid gross profit margin of 43.13%, aligning closely with the reported gross margin increase in the first quarter.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, providing a comprehensive financial overview of Virco. To explore these insights and make more informed investment decisions, visit https://www.investing.com/pro/VIRC and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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