Exhibit 99.1



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:






 Three Months EndedTwelve Months Ended
1/31/20211/31/20201/31/20211/31/2020
(In thousands, except per share data)
  
Net sales$18,301 $27,148 $152,795 $193,001 
Cost of sales13,759 20,141 97,870 121,326 
Gross Profit4,542 7,007 54,925 71,675 
Selling, general administrative & other expense10,320 14,043 54,190 65,760 
Operating (loss) income (5,778)(7,036)735 5,915 
Pension expense547 162 2,173 726 
Interest expense, net221 252 1,538 2,462 
(Loss) income before income taxes(6,546)(7,450)(2,976)2,727 
Income tax (benefit) expense (979)(3,140)(744)345 
Net (loss) income $(5,567)$(4,310)$(2,232)$2,382 
 
Net (loss) income per share - basic (a)$(0.35)$(0.28)$(0.14)$0.15 
Net (loss) income per share - diluted$(0.35)$(0.28)$(0.14)$0.15 
 
Weighted average shares outstanding - basic (a)15,824 15,654 15,759 15,590 
Weighted average shares outstanding - diluted15,824 15,654 15,759 15,694 
(a) Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares.
 1/31/20211/31/2020
Current assets$50,967 $58,342 
Non-current assets74,069 80,650 
Current liabilities22,106 25,118 
Non-current liabilities48,743 59,056 
Stockholders' equity54,187 54,818 
   

As described in prior press releases during the pandemic, school closures were an unprecedented policy response to COVID-19 with no guidelines for students, schools, families, or suppliers to follow. At no time in the country’s history—not for either of the World Wars, the Spanish Flu of 1918-1919, the Great Depression, the Hong Kong Flu of 1968, or the Great Recession—had public schools been closed en masse due to government order. Despite this, and reflecting the truly diverse nature of the pandemic in different regions at different timescales, deliveries of school furniture did continue throughout the year although at significantly reduced levels.

One of the clearest lessons from the pandemic was the crucial importance of in-person, on-campus education, especially for disadvantaged students or those with learning disabilities. School closures provided an unintended referendum on the vital role played by public and private schools in all aspects of social and economic health, perhaps in a way that only a shock of such magnitude can provide.

As a result, many state and local governments are now directing substantial additional funds towards re-opening and provisioning of public schools. Some of these funds are time-lagged and extend out to 2025; others are being spent or invested right now. Reflecting this new interest in funding education, the Company’s indicator of forward business activity (“actual YTD shipments + the unshipped backlog”) is at a sixteen-year high in fiscal 2022.




As always, management cautions against using this positive early-season metric as guidance. Especially coming out of the unprecedented and unpredictable circumstances of the pandemic, many things in the market for school furniture might change between now and year-end. Nonetheless, management is encouraged by the robustness of current trends. Management also believes that given the concurrent challenges of global supply chain interruptions, raw material shortages and cost increases, and ongoing tariff impacts, the Company’s vertical business model positions it to operate efficiently in such an environment.

Reflecting on the year’s results and the prospects for nationwide school re-opening, Virco Chairman and CEO Robert Virtue said: “In my many years at Virco serving the public school market, I’ve never experienced anything quite as challenging as what we’ve just been through. At times our stubborn insistence on maintaining our U.S. factories might have been seen as old-fashioned, but last year we believe it delivered better control of finances, inventories, and customer support than any other alternative. We appreciate the positive role we’ll be able to play in this crucial year of recovery, and we thank our shareholders for their loyalty, understanding, and support.”

Virco President Doug Virtue thanked the Company’s employees: “There was a great deal of uncertainty in March 2020, when lockdowns were first announced and schools emptied out. Nevertheless, our diverse portfolio of direct school customers located in all 50 states and in foreign countries has managed to buffer the impact on revenues, and our outstanding workforce came together—remotely in many instances—to control variable expenses and deliver an operating profit despite a 21% reduction in revenue. We kept our factories open, paid all of our bills on time, didn’t borrow to finance our losses and reduced overall borrowings, while avoiding layoffs and keeping our facilities safer overall than the communities where they’re located.”

“I’m proud and humbled by the performance of our employees during the pandemic. Forty percent of our employees have more than 20 years of service with the company. The trust and support they’ve built together was severely tested last year but it proved equal to the challenge. It will be especially rewarding to turn that strength toward the positive aspects of re-opening.”


Contact:
Virco Mfg. Corporation (310) 533-0474
Robert A. Virtue, Chairman and Chief Executive Officer
Doug Virtue, President
Robert Dose, Chief Financial Officer

This news release contains “forward-looking statements” as defined by the Private Securities Reform Act of 1995. These statements include, but are not limited to, statements regarding: the impact of the COVID-19 pandemic on our business, customers, supply chain and workforce; business strategies; market demand and product development; order rates and trends in seasonality; product relevance; economic conditions and patterns; the educational furniture industry including the domestic market for classroom furniture; state and municipal bond and/or tax funding; the rate of completion of bond funded construction projects; cost control initiatives; absorption rates; the relative competitiveness of domestic vs. international supply chains; trends in shipping costs; use of temporary workers; marketing initiatives; and international or non K-12 markets. Forward-looking statements are based on current expectations and beliefs about future events or circumstances, and you should not place undue reliance on these statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors, many of which are out of our control and difficult to forecast. These factors may cause actual results to differ materially from those that are anticipated. Such factors include, but are not limited to: uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic; changes in general economic conditions including raw material, energy and freight costs; state and municipal bond funding; state, local, and municipal tax receipts; order rates; the seasonality of our markets; the markets for school and office furniture generally, the specific markets and customers with which we conduct our principal business; the impact of cost-saving initiatives on our business; the competitive landscape, including responses of our competitors and customers to changes in our prices; demographics; and the terms and conditions of available funding sources. See our Annual Report on Form 10-K for the year ended January 31, 2021 and other material filed with the Securities and Exchange Commission for a further description of these and other risks and uncertainties applicable to our business. We assume no, and hereby disclaim any, obligation to update any of our forward-looking statements. We nonetheless reserve the right to make such updates from time to time by press release, periodic reports, or other methods of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements which are not addressed by such an update remain correct or create an obligation to provide any other updates.

View differences made from one to another to evaluate Virco Mfg Corporation's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Virco Mfg Corporation.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account