Virco MFG Corporation reported a solid performance for the three and six months ended July 31, 2024, with notable increases in revenue and profitability compared to the same periods in the previous fiscal year.
For the three months ended July 31, 2024, net sales reached $108.4 million, a slight increase of $1.1 million or 1.0% from $107.3 million in the prior year. Gross profit for the same period rose to $50.2 million, up from $48.6 million, resulting in a gross margin improvement to 46.3% from 45.3%. Operating income also increased to $21.9 million from $21.3 million, while net income grew to $16.8 million, compared to $15.5 million in the previous year. This translated to a net income per share of $1.04, up from $0.95.
For the six-month period, net sales totaled $155.2 million, reflecting a $12.9 million or 9.1% increase from $142.3 million in the prior year. Gross profit for the six months was $70.6 million, compared to $61.8 million, with a gross margin of 45.5%, up from 43.4%. Operating income for the period rose to $24.9 million from $19.9 million, and net income increased to $19.0 million from $14.1 million, resulting in a basic net income per share of $1.16, compared to $0.87.
The company’s total current liabilities decreased to $55.5 million as of July 31, 2024, from $91.1 million a year earlier, while long-term debt significantly declined to $4.0 million from $14.3 million. Total stockholders’ equity increased to $107.8 million, up from $82.3 million in the prior year, contributing to a total liabilities and stockholders’ equity of $216.3 million.
Virco also reported a decrease in accounts receivable by approximately $12.5 million, attributed to improved collections and earlier shipments. Inventory levels decreased by $13.3 million, reflecting effective inventory management and increased shipments.
Strategically, the company entered into a new lease agreement for a 560,000 sq. ft. facility in Torrance, California, with a total lease liability recorded at approximately $33.0 million. The lease includes a tenant improvement allowance of up to $1.7 million and is set to commence in May 2025.
Overall, Virco's financial results indicate a positive trajectory, driven by increased sales volume, improved operational efficiencies, and effective cost management.
About VIRCO MFG CORPORATION
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