Company Summary: Virco Mfg. Corporation

Business Overview

• Type of Business: Designing, manufacturing, and distributing high-value furniture primarily for the education sector, with over 75 years of experience.
• Product Lines:
  • Classroom furniture such as mobile tables, activity tables, desks, chairs (including ergonomic, stacking, and flexible seating), and related equipment.
  • Specialized collections like ZUMA®, Analogy®, Civitas™, Metaphor®, Sage™, Plateau®, Topaz®.
  • Ancillary products for higher education, government, hospitality, and corporate environments.
  • Complementary products from third-party suppliers to offer comprehensive FF&E (Furniture, Fixtures, & Equipment) solutions.

Market & Customers

• Primary Market: K-12 educational institutions (public/private schools, preschools, colleges, universities, technical/vocational schools).
• Additional Markets:
  • Convention centers and arenas
  • Hospitality industry (banquet and meeting facilities)
  • Government facilities (federal, state, local)
  • Places of worship
  • Wholesalers, distributors, retailers, & catalog sources
• Customer Base:
  • Thousands of customers nationwide.
  • No single customer exceeded 10% of annual sales in fiscal 2025 or 2024.
  • Major Contract: About 59% of fiscal 2025 sales were under a single exclusive nationwide contract with a purchasing organization (extended into 2026).
• Number of Employees: Approximately 810 full-time employees as of January 31, 2025.
  • 632 in manufacturing and distribution
  • 115 in sales and marketing
  • 63 in administration
  • Seasonal temporary workers (200-300 during peak summer months)

Revenue & Financials (Fiscal Year Ended January 31, 2025)

• Total Revenue: ~$266.2 million (down 1.1% from ~$269.1 million in 2024).
• Net Income: $21.6 million (Net income per diluted share: $1.32).
• Gross Profit: ~$114.7 million, with gross margin at 43.1%.
• Operating Income: ~$27.9 million.
• Pre-Tax Profit: ~$28.4 million.
• Cash Flow from Operations: $33.1 million (up from $27.0 million in 2024).
• Balance Sheet Highlights (Jan 31, 2025):
  • Total Assets: ~$192 million
  • Liabilities: ~$82 million
  • Stockholders' Equity: ~$109.3 million

Manufacturing & Facilities

• Main Facilities:
  • Torrance, California: 560,000 sq. ft. leased complex including corporate headquarters, showroom, distribution tied to 23.5 acres of land (lease until September 30, 2030).
  • Conway, Arkansas: 3 facilities totaling 1.675 million sq. ft. on 100 acres for manufacturing, warehousing, assembly, and distribution.
    • Main Conway Plant: 1.2 million sq. ft. for manufacturing steel components and plastic injection-molding.
    • Additional Conway Facilities: 375,000 sq. ft. for metal fabrication, chrome plating, and injection-molded plastic components; purchased in 2017.
    • 175,000 sq. ft. for compression-molded plastic components, acquired in 2018.
• Product Capabilities: Metal fabrication, woodworking, finishing, plastic molding, chrome plating, assembly, and packaging.
• Domestic Manufacturing: Key competitive advantage due to recent global supply chain disruptions, with extensive in-house manufacturing enabling rapid delivery, customization, and sufficient inventory to meet seasonal peaks.

Strategic Initiatives & Product Development

• Focus on innovative and contemporary furniture for flexible, active, and modern learning environments.
• Launch of Healthy Movement furniture collections, including flexible seating and sit-to-stand workstations (e.g., R2M Collection, Floor Rockers, 4-Leg Chairs, mobile task chairs).
• Expansion of product lines like activity tables, media tables, classroom carts, storage, and technology-ready furniture.
• Collaborations with notable designers (e.g., Peter Glass, Bob Mills) for product design.
• Environmental commitments including GREENGUARD Gold-certified products and programs like furniture take-back and recycling.

Market & Revenue Outlook

• Seasonality: ~47-49% of revenue earned in June-August.
• Revenue influenced by school funding, bond initiatives, and budget cycles.
• The company’s revenue is sensitive to educational funding, economic conditions, raw material costs, tariffs, and supply chain disruptions.
• Customer Funding: Reliant on public budgets, bond sales, and regional/national contracts.
• Growth Drivers: Improving supply chain stability, domestic manufacturing, product innovation, comprehensive service offerings, and reputation for high-quality, customizable products.

Summary

Virco Mfg. Corporation is a leading domestic producer of educational and commercial furniture, with a strong emphasis on innovation, quality, and comprehensive service. Its broad product line is geared towards active, flexible, and modern learning environments, backed by extensive manufacturing facilities in California and Arkansas, and a diverse customer base with significant contractual relationships. The company reported over $266 million in revenue for fiscal 2025, with substantial net income and a robust balance sheet supporting ongoing growth and strategic initiatives.