Virco Reports Results for Fourth Quarter and Year-Ended January 31, 2021
•Company generates modest operating income despite 21% decline in revenue due to COVID-19;
•Management avoided layoffs during pandemic and looks forward to recovery;
•YTD Fiscal 2022 Shipments + order backlog at sixteen-year high as schools move toward re-opening.
April 28, 2021—Torrance, California—Virco Mfg. Corporation (NASDAQ: VIRC) today reported financial results for the fourth quarter and full year ended January 31, 2021, in the following press release to shareholders and customers:
A full year of pandemic-related school closures resulted in lower revenues for the fourth quarter and full year ended January 31, 2021. For the quarter, which includes the seasonally slow months of November, December and January, net sales totaled $18,301,000 compared to $27,148,000 in the prior year, a decline of 33%. Due to our aggressive cost controls, especially in sales, administration, and general activities, operating results for the fourth quarter improved 18% from a loss of ($7,036,000) in the prior year to a loss of ($5,778,000) in the most recent fourth quarter.
Full year net sales declined 21% to $152,795,000 from $193,001,000. Aggressive variable cost controls enacted at the beginning of the pandemic crisis resulted in operating income of $735,000 compared to $5,915,000 in the prior year. Inclusive of pension expense, interest, and taxes, the Company incurred a net loss of ($2,232,000) for the year compared to net income of $2,382,000 in the prior year.
Key balance sheet metrics improved over the course of the year, reflecting diligent cost controls while exercising precise execution matching revenue opportunities within the downturn made possible by the Company’s U.S. factories and short supply chain. Inventories and related bank borrowings under the Company’s seasonal credit facility were both lower at year end compared to the prior year. Shareholder equity was almost unchanged at $54,187,000 compared to $54,818,000 the prior year.
Here are the numbers:
The following information was filed by Virco Mfg Corporation (VIRC) on Wednesday, April 28, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.