Virco Announces Third Quarter Results

Virco Announces Third Quarter Results

TORRANCE, Calif., Dec. 6, 2013 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation
(Nasdaq:VIRC) today announced third quarter and year-to-date results in the
following letter to stockholders from Robert A. Virtue, President and CEO:

For the three months ended October 31, 2013, traditionally the tail end of our
summer delivery season, revenue increased 5.0% from $56,642,000 last year to
$59,454,000 this year. For the nine months ended October 31, 2013, revenue
decreased by 3.1% from $140,702,000 last year to $136,277,000 this year.

Reflecting our lower cost structure following our cost-saving activities, net
income improved even further. In this year's third quarter, net income was
$3,408,000 compared to $2,908,000 last year. Results for the third quarter of
2013 include a pension settlement charge of approximately $800,000. Through
nine months, net income was $5,171,000 compared to $5,128,000 last year
despite a reduction in revenue.

Our core market for public education furniture and equipment continues to face
serious funding challenges. The Company experienced significant volatility in
order rates during the first four months of the year, followed by five months
of relatively stable order activity. Incoming order rates increased by 2.0%
during the third quarter, but for the year have declined by 3.9%. Order
backlog at the end of our third quarter of 2013 increased by $1,750,000
compared to the same period last year.

Here are our results for the three and nine months ended October 31, 2013 and
the comparable periods last year:

                                                                
                                  Three Months Ended    Nine Months Ended
                                  10/31/2013 10/31/2012 10/31/2013 10/31/2012
                                  (In thousands, except share data)
                                                                
Net sales                          $ 59,454   $ 56,642   $ 136,277  $ 140,702
Cost of sales                      38,293     37,324     87,121     91,550
Gross profit                       21,161     19,318     49,156     49,152
Selling, general administrative &  17,767     16,561     43,961     43,953
other expense
Income before income taxes         3,394      2,757      5,195      5,199
Income tax expense                 (14)       (151)      24         71
Net income                         $ 3,408    $ 2,908    $ 5,171    $ 5,128
                                                                
Net income per share - basic       $ 0.23     $ 0.20     $ 0.35     $ 0.36
Net income per share - diluted     0.23       0.20       0.35       0.35
                                                                
Weighted average shares            14,647     14,441     14,582     14,369
outstanding - basic
Weighted average shares            14,790     14,629     14,712     14,474
outstanding - diluted
                                                                
                                                                
                                            10/31/2013 1/31/2013  10/31/2012
Current assets                               $ 45,598   $ 37,037   $ 43,666
Non-current assets                           44,608     45,201     46,432
Current liabilities                          26,747     24,511     23,990
Non-current liabilities                      30,278     30,707     29,613
Stockholders' equity                         33,181     27,020     36,495
                                                                

As previously discussed in our Annual Report on Form 10-K for the fiscal year
ended January 31, 2013 and in prior quarterly reports, in 2011 we executed a
restructuring based on voluntary early retirement. Approximately 150 employees
accepted this offer and, combined with normal attrition, our headcount
declined from 1,045 at February 1, 2011 to 825 at February 1, 2012.This
restructuring was supplemented with smaller reductions in force in the fourth
quarter of 2012 and second quarter of 2013.At October 31, 2013, our headcount
of permanent employees had declined to 695.It is the Company's intention to
meet the severe seasonal summer peak utilizing temporary help, while
maintaining a lower permanent cost structure to minimize losses during the
slow first and fourth quarters.

Our efforts are not only limited to cost controls.As the dynamics of global
sourcing continue to evolve, we believe our vertical business model and
domestic factories are ideally positioned to deliver a higher-quality customer
experience.

To that end, I am pleased to announce the appointment of Mr. James Makuuchi as
Virco's new Chief Marketing Officer.Mr. Makuuchi brings a customer-centered
approach to sales and marketing leadership.Although he will report directly
to me, he will also be working closely with Virco's entire management team to
maximize the potential of our vertical business model in delivering the best
possible combination of products, services, and distribution.Having weathered
the worst industry downturn in our 63-year history, we look forward to a
return to growth and welcome Mr. Makuuchi to our corporate family.

This news release contains "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995.These statements include,
but are not limited to, statements regarding: business strategies; market
demand and product development; economic conditions; revenues; the educational
furniture industry; public school district customers; raw material and
commodity costs; state and municipal bond funding; order rates (including
those relating to tax-based fill-in orders); operating efficiencies;
cost-control initiatives; supply chains; the Company's domestic factories and
distribution centers; and seasonality.Forward-looking statements are based on
current expectations and beliefs about future events or circumstances, and you
should not place undue reliance on these statements.Such statements involve
known and unknown risks, uncertainties, assumptions and other factors, many of
which are out of our control and difficult to forecast.These factors may
cause actual results to differ materially from those which are
anticipated.Such factors include, but are not limited to: changes in general
economic conditions; raw material, commodity, energy and freight costs; state
and municipal bond funding; state, local and municipal tax receipts; the
seasonality of our markets; the markets for school and office furniture
generally; the specific markets and customers with which we conduct our
principal business; and the competitive landscape, including responses of our
competitors to changes in our prices.See our Annual Report on Form 10-K for
the year ended January 31, 2013, and other materials filed with the Securities
and Exchange Commission for a further description of these and other risks and
uncertainties applicable to our business.We assume no, and hereby disclaim
any, obligation to update any of our forward-looking statements.We
nonetheless reserve the right to make such updates from time to time by press
release, periodic reports or other methods of public disclosure without the
need for specific reference to this press release.No such update shall be
deemed to indicate that other statements which are not addressed by such an
update remain correct or create an obligation to provide any other updates.

CONTACT: Robert A. Virtue, President
         Douglas A. Virtue, Executive Vice President
         Robert E. Dose, Vice President Finance
         Virco Mfg. Corporation
         (310) 533-0474

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