Fri, Jun 6, 5:14 PM (15 days ago)
**Virco Mfg. Corporation (VIRC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $33.8 million, down 27.8% YoY due to the absence of one-time disaster recovery orders. - **Net Income:** $0.7 million, down from $2.1 million YoY. - **Gross Margin:** 47.5%, up from 43.5% YoY due to higher full-service order margins. - **Operating Income:** $(0.1) million, down from $2.9 million YoY. - **Earnings per Share (EPS):** $0.05, down from $0.13 YoY. **Cash Flow:** - **Net Cash Used in Operations:** $(19.0) million, worse than $(4.5) million YoY due to increased inventory and lower accounts receivable. - **Capital Expenditures:** $2.4 million, up from $1.1 million YoY. - **Free Cash Flow:** $(21.4) million, worse than $(5.6) million YoY. **Balance Sheet:** - **Cash:** $0.9 million, down from $26.9 million YoY. - **Inventory:** $74.0 million, up 33.0% YoY due to increased material costs. - **Accounts Receivable:** $12.3 million, down 25.4% YoY due to decreased shipments and improved collections. - **Total Debt:** $4.1 million, down from $7.0 million YoY. **Trends and Uncertainties:** - **Seasonality:** Approximately 50% of annual sales occur in June-August. - **Trade Uncertainties:** Potential impacts from U.S. trade policies and retaliatory responses. - **Economic Conditions:** Risks from changes in economic conditions, raw material costs, and supply chain challenges. - **Future Operations:** Management intends to reinvest in operating systems, employee training, and customer development and retention. **Future Outlook:** - **Backlog:** $70.4 million, down from $88.5 million YoY, expected to be delivered in Q2-Q3 2025. - **Share Repurchases:** $4.0 million spent in Q1 2025, $7.2 million authorized and available. - **Debt Compliance:** Management believes it will maintain compliance with financial covenants under the Credit Agreement. **Ticker:** VIRC