Virco Manufacturing Corp. (VIRC, Financial) filed Quarterly Report for the period ended 2010-04-30.
Virco Manufacturing Corp. has a market cap of $45.9 million; its shares were traded at around $3.24 with a P/E ratio of 162 and P/S ratio of 0.2. The dividend yield of Virco Manufacturing Corp. stocks is 3.1%.VIRC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
As a result of seasonally lower shipments in the three months ended April 30, 2010, compared to the three months ended January 31, 2010, accounts and notes receivable were reduced at April 30, 2010, compared to January 31, 2010. Accounts and notes receivable were higher at April 30, 2010, than at April 30, 2009, due to increased days sales outstanding. The Company traditionally builds large quantities of inventory during the first quarter of each fiscal year in anticipation of seasonally high summer shipments. For the current fiscal quarter, the Company increased inventory by approximately $14,200,000 compared to January 31, 2010, and increased inventory by approximately $1,900,000 compared to April 30, 2009. The increase in inventory during the first quarter of 2010 compared to the January 31, 2010, was financed through the Companys credit facility with Wells Fargo Bank.
Borrowings under the Companys revolving line of credit with Wells Fargo Bank at April 30, 2010, increased by approximately $6 million compared to April 30, 2009, primarily due to increased levels of inventory and receivables and a reduction in other long-term liabilities. The Company established a goal of limiting capital spending to less than $5,000,000 for fiscal year 2010, which is slightly less than the Companys anticipated depreciation expense. Capital spending for the three months ended April 30, 2010, was $679,000 compared to $1,070,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility with Wells Fargo Bank and operating cash flow.
Net cash used in operating activities for the three months ended April 30, 2010, was $14,132,000 compared to $17,586,000 for the same period last year. The decrease in cash used was primarily attributable to a decrease in the amount of inventory added to stock in the first quarter, in addition to an increase in accounts payable and accrued liabilities.
The Agreement provides the Company with a secured revolving line of credit (the Revolving Credit) of up to $50,000,000, with seasonal adjustments to the credit limit and subject to borrowing base limitations. The Revolving Credit includes a letter of credit sub-facility with a sub-limit of up to $10,000,000 and is secured by a first priority security interest in substantially all of the personal and real property of the Company and its subsidiaries in favor of the Lender. The Revolving Credit is an asset-based line of credit that is subject to a borrowing base limitation and generally provides for advances of up to 80% on eligible accounts receivable and up to 20-60% of eligible inventory, with exceptions and modifications as provided in the Agreement. The Agreement is also subject to an annual clean down provision requiring a 30-day period each fiscal year during which advances and letter of credit usage may not exceed $7,500,000 in the aggregate.
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Virco Manufacturing Corp. has a market cap of $45.9 million; its shares were traded at around $3.24 with a P/E ratio of 162 and P/S ratio of 0.2. The dividend yield of Virco Manufacturing Corp. stocks is 3.1%.VIRC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the three months ended April 30, 2010, the Company incurred a pre-tax loss of $6,494,000 on net sales of $24,860,000 compared to a pre-tax loss of $4,887,000 on net sales of $27,049,000 in the same period last year.As a result of seasonally lower shipments in the three months ended April 30, 2010, compared to the three months ended January 31, 2010, accounts and notes receivable were reduced at April 30, 2010, compared to January 31, 2010. Accounts and notes receivable were higher at April 30, 2010, than at April 30, 2009, due to increased days sales outstanding. The Company traditionally builds large quantities of inventory during the first quarter of each fiscal year in anticipation of seasonally high summer shipments. For the current fiscal quarter, the Company increased inventory by approximately $14,200,000 compared to January 31, 2010, and increased inventory by approximately $1,900,000 compared to April 30, 2009. The increase in inventory during the first quarter of 2010 compared to the January 31, 2010, was financed through the Companys credit facility with Wells Fargo Bank.
Borrowings under the Companys revolving line of credit with Wells Fargo Bank at April 30, 2010, increased by approximately $6 million compared to April 30, 2009, primarily due to increased levels of inventory and receivables and a reduction in other long-term liabilities. The Company established a goal of limiting capital spending to less than $5,000,000 for fiscal year 2010, which is slightly less than the Companys anticipated depreciation expense. Capital spending for the three months ended April 30, 2010, was $679,000 compared to $1,070,000 for the same period last year. Capital expenditures are being financed through the Companys credit facility with Wells Fargo Bank and operating cash flow.
Net cash used in operating activities for the three months ended April 30, 2010, was $14,132,000 compared to $17,586,000 for the same period last year. The decrease in cash used was primarily attributable to a decrease in the amount of inventory added to stock in the first quarter, in addition to an increase in accounts payable and accrued liabilities.
The Agreement provides the Company with a secured revolving line of credit (the Revolving Credit) of up to $50,000,000, with seasonal adjustments to the credit limit and subject to borrowing base limitations. The Revolving Credit includes a letter of credit sub-facility with a sub-limit of up to $10,000,000 and is secured by a first priority security interest in substantially all of the personal and real property of the Company and its subsidiaries in favor of the Lender. The Revolving Credit is an asset-based line of credit that is subject to a borrowing base limitation and generally provides for advances of up to 80% on eligible accounts receivable and up to 20-60% of eligible inventory, with exceptions and modifications as provided in the Agreement. The Agreement is also subject to an annual clean down provision requiring a 30-day period each fiscal year during which advances and letter of credit usage may not exceed $7,500,000 in the aggregate.
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