Virco Manufacturing Corp. (VIRC, Financial) filed Quarterly Report for the period ended 2009-07-31.
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 $43.6 million; its shares were traded at around $3.08 with a P/E ratio of 51.3 and P/S ratio of 0.2. The dividend yield of Virco Manufacturing Corp. stocks is 3.2%.
Selling, general and administrative expense for the three months ended July 31, 2009 decreased by approximately $1,368,000 to $18,242,000 compared to $19,610,000 in the same period last year, and remained stable as a percentage of sales. The decrease in selling, general and administrative expense was primarily attributable to decreased variable expenses for freight and field service expenses. Interest expense decreased by approximately $124,000 compared to the same period last year as a result of reduced interest rates and reduced levels of borrowing.
For the six months ended July 31, 2009 the Company earned a pre-tax profit of $2,206,000 on sales of $101,672,000 compared to a pre-tax profit of $1,167,000 on sales of $109,410,000 in the same period last year.
As a result of seasonally high shipments in the three months ended July 31, 2009, accounts and notes receivable increased by approximately $27.4 million at July 31, 2009 compared to January 31, 2009. When compared to receivables at July 31, 2008, receivables, however, decreased by approximately $1,540,000. This decrease was due to the decline in sales in the three months ended July 31, 2009 compared to the same period last year. The Company traditionally builds large quantities of component inventory during the first quarter in anticipation of seasonally high summer shipments. During the second and third quarters, the Company reduces levels of component production and assembles components to a finished goods state as customer orders are received. At July 31, 2009, inventories were lower than the prior year by approximately $5,014,000. The decrease in inventory is partially attributable to reductions in the cost of steel and plastic, and partially attributable to reductions in unit quantity. The proportion of finished goods to total inventory increased from July 31, 2008 as the Company assembled components to finished goods earlier in the year in order to achieve improved on time delivery during the summer.
The Company has established a goal of limiting capital spending to approximately $5,000,000 for fiscal 2009, which is slightly less than anticipated depreciation expense. Capital spending for the six months ended July 31, 2009 was $2,110,000 compared to $2,487,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility with Wells Fargo and operating cash flow. Approximately $25,267,000 was available for borrowing under the Companys credit facility as of July 31, 2009.
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. 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. Through July 31, 2009, the Company repurchased 414,000 shares of stock for $1,347,000.
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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 $43.6 million; its shares were traded at around $3.08 with a P/E ratio of 51.3 and P/S ratio of 0.2. The dividend yield of Virco Manufacturing Corp. stocks is 3.2%.
Highlight of Business Operations:
For the three months ended July 31, 2009, the Company earned a pre-tax profit of $7,093,000 on sales of $74,623,000 compared to a pre-tax profit of $5,714,000 on sales of $80,216,000 in the same period last year.Selling, general and administrative expense for the three months ended July 31, 2009 decreased by approximately $1,368,000 to $18,242,000 compared to $19,610,000 in the same period last year, and remained stable as a percentage of sales. The decrease in selling, general and administrative expense was primarily attributable to decreased variable expenses for freight and field service expenses. Interest expense decreased by approximately $124,000 compared to the same period last year as a result of reduced interest rates and reduced levels of borrowing.
For the six months ended July 31, 2009 the Company earned a pre-tax profit of $2,206,000 on sales of $101,672,000 compared to a pre-tax profit of $1,167,000 on sales of $109,410,000 in the same period last year.
As a result of seasonally high shipments in the three months ended July 31, 2009, accounts and notes receivable increased by approximately $27.4 million at July 31, 2009 compared to January 31, 2009. When compared to receivables at July 31, 2008, receivables, however, decreased by approximately $1,540,000. This decrease was due to the decline in sales in the three months ended July 31, 2009 compared to the same period last year. The Company traditionally builds large quantities of component inventory during the first quarter in anticipation of seasonally high summer shipments. During the second and third quarters, the Company reduces levels of component production and assembles components to a finished goods state as customer orders are received. At July 31, 2009, inventories were lower than the prior year by approximately $5,014,000. The decrease in inventory is partially attributable to reductions in the cost of steel and plastic, and partially attributable to reductions in unit quantity. The proportion of finished goods to total inventory increased from July 31, 2008 as the Company assembled components to finished goods earlier in the year in order to achieve improved on time delivery during the summer.
The Company has established a goal of limiting capital spending to approximately $5,000,000 for fiscal 2009, which is slightly less than anticipated depreciation expense. Capital spending for the six months ended July 31, 2009 was $2,110,000 compared to $2,487,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility with Wells Fargo and operating cash flow. Approximately $25,267,000 was available for borrowing under the Companys credit facility as of July 31, 2009.
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. 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. Through July 31, 2009, the Company repurchased 414,000 shares of stock for $1,347,000.
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