This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Virco Announces Fourth Quarter Results

Stocks in this article: VIRC

TORRANCE, Calif., April 19, 2013 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (Nasdaq:VIRC) today announced fourth quarter and year-end results in the following letter to stockholders from Robert A. Virtue, President and CEO:

Despite continued softness and volatility in our core K-12 public school market, the structural changes we made over a year ago allowed us to reduce our operating loss by almost $10,000,000 in fiscal 2012. For the year, sales decreased by 4.5% from $166,441,000 to $158,856,000. Our net loss decreased from $13,803,000 in 2011 to $3,830,000 in 2012.

Results in the fourth quarter reflected the ongoing volatility and weaker demand in our market. Partly due to internal cost-saving measures including discretionary plant furloughs in December, shipments for the quarter declined from $26,294,000 in 2011 to $18,154,000 in 2012. However, incoming order rates for the quarter were 8% higher than in the fourth quarter of the previous year, allowing us to enter fiscal 2013 with a larger backlog. As more of our business shifts to furnishing newly-constructed schools versus day-to-day replacement of existing classroom furniture, we expect this volatility in shipments and incoming orders to continue, overlaid as always on our strong seasonal pattern of peak summer deliveries and lower fall, winter, and spring shipments.

As previously discussed in the Company's Form 10-K for the year ended January 31, 2012, in the fall of 2011Virco implemented a voluntary separation program that provided for early retirement and severance payments based on years of service to employees who voluntarily elected to retire.  At the beginning of the 2011 fiscal year, the Company had approximately 1,045 employees. At January 31, 2012, after the effect of the voluntary retirement program coupled with attrition, the Company employed approximately 825 persons, a 20% reduction. As a result of attrition and other measures, by January 31, 2013 the number of full time employees declined to 760. As noted above, cost savings from these staff reductions along with pricing initiatives and stable raw material costs allowed us to reduce operating losses by almost $10,000,000 compared to the prior year.  In addition to the improvements in pricing and cost structure, 2012 results benefited from relative stability for raw material costs. The stable raw material costs allowed for pricing improvements and cost reductions to directly benefit gross margin. This stability was a significant improvement compared to 2011, when steel increased by approximately 30% during the critical second quarter and certain plastics increased by nearly 30% over the second and third quarters.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs