Virco Issues Updated Investor Presentation
- None.
- None.
Virco Mfg. Corporation's recent investor presentation update represents a signal of resilience and potential growth within the educational furniture and equipment sector. The highlighted recovery, following the adverse effects of the pandemic, indicates a rebound in institutional spending as schools reopen and renew their facilities. The 'Shipments plus Backlog' metric, while not a standard GAAP measure, offers an insight into the company's operational momentum, combining both current and future revenue potential. This figure reaching a record high suggests an increased demand for Virco's products, which could translate into sustained revenue growth over the short to medium term.
However, investors should approach the preliminary financial results with caution. The unaudited nature of these results and the potential for adjustments during the final audit process introduce a degree of uncertainty that must be factored into any financial analysis. The forward-looking statements provided by the company are inherently subject to risks and uncertainties, which means actual results could differ materially from expectations.
The announcement of record-setting preliminary cash flow and net income figures for Virco is a positive indicator for the company's financial health and operational efficiency. This performance, particularly when set against the backdrop of the last 20 years, suggests that the company has not only navigated the pandemic effectively but may have emerged in a stronger competitive position. The avoidance of additional debt or capital investment during the recovery phase is commendable and reflects prudent financial management.
For stakeholders, the financial strength of Virco implies a potential for increased valuation and investor confidence. However, it's essential to recognize that these figures are not yet audited and there remains the possibility of revisions. The stock market's reaction to such preliminary announcements can be volatile and any material adjustments post-audit could impact the stock price significantly. Thus, while the short-term outlook may seem promising, long-term investors should wait for the audited results before making strategic decisions.
The educational sector's recovery and the subsequent impact on suppliers like Virco Mfg. Corporation can be seen as a microcosm of the broader economic recovery post-pandemic. The company's ability to adapt and maintain operational continuity during the downturn and its subsequent success, underscores the importance of resilience in the face of economic shocks. Virco's experience highlights the cyclical nature of the economy and the potential for rapid recovery following periods of contraction.
From an economic standpoint, the increase in 'Shipments plus Backlog' could be indicative of pent-up demand being released as schools resume normal operations. This demand may continue to grow as educational institutions aim to modernize and upgrade facilities to adapt to new learning paradigms. However, it is also important to monitor whether this demand is sustainable or a temporary surge post-pandemic, which could affect the company's long-term growth trajectory.
TORRANCE, Calif., April 01, 2024 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ: VIRC) (the “Company”), the nation’s largest manufacturer and supplier of educational furniture and equipment, today issued an update of its investor presentation, highlighting the Company’s strong recovery following pandemic-related school closures. The investor update is available on the Company’s website at www.virco.com.
The investor presentation includes preliminary, unaudited financial results for the Company’s Fiscal Year Ended January 31, 2024. Included in these figures is Management’s preferred forward-looking indicator of business velocity: “Shipments plus Backlog,” a non-GAAP measure of actual year-to-date shipments plus the unshipped backlog of orders for the upcoming delivery season.
As of January 31, 2024, the Company’s fiscal year end, Shipments plus Backlog had reached an all-time Company record of
Virco CEO and Chairman Robert Virtue commented on the Company’s strong performance: “During the critical months of the pandemic, when schools were closed, we always retained our focus on eventual recovery. We knew from prior experience that coming out of downturns is often just as difficult as the downturn itself. We made every effort to protect our extraordinary staff and U.S.-based operating assets. We also preserved and actually reinforced our financial strength, allowing us to support school re-opening without the need for additional debt or capital investment. We are pleased to share our success with investors old and new, and especially express our gratitude to those loyal investors who understood our long-term strategy, and supported us through the challenging years of the pandemic. Their support has in turn allowed Virco to support the recovery of America’s schools, both public and private, as well as international schools around the world.”
Preliminary Financial Information
The fiscal 2024 financial results presented in this press release and included in the Company’s investor presentation referred to in this press release are preliminary, estimated and unaudited, and reflect management’s estimates based solely upon information available to management as of the date of this press release and are subject to change upon the completion of Virco’s financial closing procedures, final adjustments and other developments, including audit and review by its independent registered public accounting firm. During the course of that process, Virco may identify items that would require it to make adjustments, which may be material, to the information in this press release. As a result, the preliminary unaudited financial information included in this press release is forward-looking information and is subject to risks and uncertainties, including possible material adjustments to the preliminary financial information and the other risks and uncertainties described below under “Statement Concerning Forward-Looking Information.” Accordingly, you should not place undue reliance on these estimates, which should not be considered a substitute for the financial information to be filed with the SEC in Virco’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024 once it becomes available.
Statement Concerning Forward-Looking Information
This news release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. 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, which may cause actual results to differ materially from those that are anticipated. See the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports and material that it files with the Securities and Exchange Commission for a further description of these and other risks and uncertainties. The Company assumes no, and hereby disclaims any, obligation to update any forward-looking statements.
Contact:
Virco Mfg. Corporation
(310) 533-0474
Robert A. Virtue, Chairman and Chief Executive Officer
Doug Virtue, President
Robert Dose, Chief Financial Officer
A PDF accompanying this announcement is available at
http://ml.globenewswire.com/Resource/Download/32a76e4f-1e32-4a4a-a131-45afb6578a93
FAQ
What update did Virco Mfg. provide?
What is the non-GAAP measure of business velocity mentioned in the update?
What financial records did Virco Mfg. achieve for fiscal 2024?
Who commented on the company's strong performance in the update?
What cautionary statement was included regarding the financial information in the update?
