Fri, Jun 7, 6:06 PM (230 days ago)
Virco Mfg. Corporation's Q1 2024 financial results show a notable turnaround with a net income of $2.1 million, compared to a net loss of $1.4 million in Q1 2023. This improvement is driven by a 33.7% increase in net sales to $46.7 million, primarily due to a large disaster relief project. Gross profit margins improved to 43.5% from 37.8%, aided by stable commodity costs and enhanced factory efficiency. SG&A expenses rose by $2.9 million but decreased as a percentage of sales to 37.2%. The company’s cash flow from operations was negative at $4.5 million, with inventory levels reducing by $14.3 million year-over-year. Debt levels decreased significantly, with the revolving credit line balance down to $2.7 million from $30.1 million in Q1 2023. The company remains confident in its liquidity and capital resources, supported by a recent amendment to its credit agreement with PNC Bank. Future uncertainties include commodity price volatility and supply chain disruptions.