Virco Manufacturing Corp. (VIRC, Financial) filed Quarterly Report for the period ended 2008-10-31.
Virco Mfg. Corporation designs produces and distributes quality furniture for the contract and education markets worldwide. Examples of facilities served by Virco include public and private schools colleges and universities convention centers federal and state institutions churches and other businesses. They also sell to wholesalers distributors retailers and catalog retailers. In order to divide the workload into manageable amounts Virco has divided the sales force into two groups: Education and Commercial. Virco Manufacturing Corp. has a market cap of $39.21 million; its shares were traded at around $1.9 with a P/E ratio of 9.64 and P/S ratio of 0.17. The dividend yield of Virco Manufacturing Corp. stocks is 3.7%.
For the nine months ended October 31, 2008 the Company earned a pre-tax profit of $7,554,000 on sales of $184,276,000 compared to a pre-tax profit of $15,627,000 on sales of $197,030,000 in the same period last year.
Gross margin as a percentage of sales decreased to 32.5% for the nine months ended October 31, 2008 compared to 37.2% in the same period last year. In dollars, gross margin decreased by approximately $13.3 million for the nine months ended October 31, 2008. Approximately $5.2 million of the reduction was attributable to a change in sales volume, approximately $3.3 million due to decreased overhead variance, with the balance attributable to increased material costs.
As a result of seasonally high shipments in the second and third quarters of fiscal 2008, accounts receivable increased by approximately $10 million at October 31, 2008 compared to January 31, 2008. Receivables increased by approximately $1.7 million at October 31, 2008 compared to October 31, 2007 due to the timing of summer shipments and portion of shipments that were projects. The Company traditionally builds large quantities of inventory during the first and second quarters of each fiscal year in anticipation of seasonally high summer shipments during the second and third quarters. At October 31, 2008, inventories were nearly $17 million lower than at January 31, 2008 and $2.7 million less than the third quarter of fiscal 2007. The seasonal increase in receivables and inventory during the summer months was financed through the Companys credit facility with Wells Fargo Bank, which is discussed in Item 3 Quantitative and Qualitative Disclosures About Market Risk. The seasonal lines of credit were repaid at October 31, 2008 and October 31, 2007.
The Company established a goal of limiting capital spending to approximately $5,000,000 for fiscal 2008, which is slightly less than anticipated depreciation expense. Capital spending for the nine months ended October 31, 2008 was $3,185,000 compared to $3,444,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility established with Wells Fargo Bank and operating cash flow. Approximately $21,018,000 was available for borrowing under the Companys credit facility with Wells Fargo Bank as of October 31, 2008.
On June 5, 2008, the Company announced that its Board of Directors authorized a stock repurchase program under which the Company may acquire up to $3 million of the Companys common stock in fiscal year 2008. Such repurchases may be made pursuant to open market or privately negotiated transactions. This $3 million common stock repurchase program includes any unused amounts previously authorized for repurchase by Company such that the maximum aggregate amount of common stock that the Company may repurchase is $3 million of the Companys common stock. Actual repurchases will be made after due consideration of stock price, projected cash flows and alternative uses of capital. During the first nine months of fiscal 2008, the Company repurchased 108,817 shares of stock for $351,512.
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More on VIRC:
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10-year financial history of VIRC.
Insider buys/sells of VIRC.
Virco Mfg. Corporation designs produces and distributes quality furniture for the contract and education markets worldwide. Examples of facilities served by Virco include public and private schools colleges and universities convention centers federal and state institutions churches and other businesses. They also sell to wholesalers distributors retailers and catalog retailers. In order to divide the workload into manageable amounts Virco has divided the sales force into two groups: Education and Commercial. Virco Manufacturing Corp. has a market cap of $39.21 million; its shares were traded at around $1.9 with a P/E ratio of 9.64 and P/S ratio of 0.17. The dividend yield of Virco Manufacturing Corp. stocks is 3.7%.
Highlight of Business Operations:
For the three months ended October 31, 2008, the Company earned a pre-tax profit of $6,387,000 on sales of $74,866,000 compared to a pre-tax profit of $6,617,000 on sales of $76,977,000 in the same period last year. The third quarter of fiscal 2008 also includes a $1.1 million profit on sale of real estate associated with the sale of a property in Conway, Arkansas, as discussed above.For the nine months ended October 31, 2008 the Company earned a pre-tax profit of $7,554,000 on sales of $184,276,000 compared to a pre-tax profit of $15,627,000 on sales of $197,030,000 in the same period last year.
Gross margin as a percentage of sales decreased to 32.5% for the nine months ended October 31, 2008 compared to 37.2% in the same period last year. In dollars, gross margin decreased by approximately $13.3 million for the nine months ended October 31, 2008. Approximately $5.2 million of the reduction was attributable to a change in sales volume, approximately $3.3 million due to decreased overhead variance, with the balance attributable to increased material costs.
As a result of seasonally high shipments in the second and third quarters of fiscal 2008, accounts receivable increased by approximately $10 million at October 31, 2008 compared to January 31, 2008. Receivables increased by approximately $1.7 million at October 31, 2008 compared to October 31, 2007 due to the timing of summer shipments and portion of shipments that were projects. The Company traditionally builds large quantities of inventory during the first and second quarters of each fiscal year in anticipation of seasonally high summer shipments during the second and third quarters. At October 31, 2008, inventories were nearly $17 million lower than at January 31, 2008 and $2.7 million less than the third quarter of fiscal 2007. The seasonal increase in receivables and inventory during the summer months was financed through the Companys credit facility with Wells Fargo Bank, which is discussed in Item 3 Quantitative and Qualitative Disclosures About Market Risk. The seasonal lines of credit were repaid at October 31, 2008 and October 31, 2007.
The Company established a goal of limiting capital spending to approximately $5,000,000 for fiscal 2008, which is slightly less than anticipated depreciation expense. Capital spending for the nine months ended October 31, 2008 was $3,185,000 compared to $3,444,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility established with Wells Fargo Bank and operating cash flow. Approximately $21,018,000 was available for borrowing under the Companys credit facility with Wells Fargo Bank as of October 31, 2008.
On June 5, 2008, the Company announced that its Board of Directors authorized a stock repurchase program under which the Company may acquire up to $3 million of the Companys common stock in fiscal year 2008. Such repurchases may be made pursuant to open market or privately negotiated transactions. This $3 million common stock repurchase program includes any unused amounts previously authorized for repurchase by Company such that the maximum aggregate amount of common stock that the Company may repurchase is $3 million of the Companys common stock. Actual repurchases will be made after due consideration of stock price, projected cash flows and alternative uses of capital. During the first nine months of fiscal 2008, the Company repurchased 108,817 shares of stock for $351,512.
Read the The complete Report
More on VIRC:
Gurus buys and sells of VIRC
10-year financial history of VIRC.
Insider buys/sells of VIRC.
