Virco Announces Fourth Quarter Results

Virco Announces Fourth Quarter Results

TORRANCE, Calif., April 28, 2014 (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 have made over the last two years allowed us
to reduce our operating loss despite a reduction in sales. For the year, sales
decreased by 1.8% from $158,856,000 in 2012 to $155,920,000 in 2013. Our net
loss decreased from $3,830,000 in 2012 to $1,730,000 in 2013.

For the fourth quarter, sales increased modestly from $18,154,000 in 2012 to
$19,643,000 in 2013. The fourth quarter loss decreased from $8,958,000 in 2012
to $6,901,000 in 2013. In 2012, the Company scheduled several unpaid furloughs
in order to reduce costs in the seasonally slow fourth quarter. In 2013, the
Company reduced its cost structure which enabled it to reduce the number of
furlough days to our traditional Thanksgiving and Christmas closures. This had
a favorable effect on factory operations and shipments for the quarter.

As previously discussed in the Company's public filings, the Company has taken
a variety of actions to reduce its cost structure over the last three years.
The combined effect of a voluntary reduction in force in 2011, a reduction in
force in 2013, and attrition over the last three years has reduced the
Company's headcount from 1,045 in 2011, to less than 700 today. The Company
has supplemented its workforce of full time employees with temporary workers
in the summer to meet seasonal business operations. The intent of these
actions is to enable the Company to make a modest profit in the short term
until the market for school furniture and equipment recovers. In addition to
modest improvements in pricing and cost changes discussed above, 2013 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.

Here are the numbers for the 4^th quarter and the full fiscal year 2013:


                       Three Months Ended          Twelve Months Ended
                       1/31/2014     1/31/2013     1/31/2014     1/31/2013
                       (In thousands, except per share data)
                                                              
Net sales               $19,643       $18,154       $155,920      $158,856
Cost of sales           15,367        15,754        102,488       107,304
Gross profit            4,276         2,400         53,432        51,552
                                                              
Selling, general
administrative & other  12,204        11,638        56,165        55,591
expense
Loss before income      (7,928)       (9,238)       (2,733)       (4,039)
taxes
Income tax benefits     (1,027)       (280)         (1,003)       (209)
Net loss                $(6,901)    $(8,958)    $(1,730)    $(3,830)
                                                              
                                                              
Net loss per share -    $(0.47)     $(0.62)     $(0.12)     $(0.27)
basic (a)
                                                              
Weighted average shares 14,467        14,441        14,620        14,387
outstanding - basic (a)
                                                              
                                                              
(a)Net loss per share was calculated based on basic shares outstanding due to
the anti-dilutive effect on the inclusion of common stock equivalent shares.
                                                              
                                    1/31/2014                  1/31/2013
Current assets                       $39,639                    $36,962
Non-current assets                   43,705                     45,201
Current liabilities                  22,656                     24,436
Non-current liabilities              33,083                     30,707
Stockholders' equity                 27,605                     27,020

Our efforts are not only limited to cost controls.We continue to focus on
maintaining the strength of our balance sheet and continuing to develop our
brand.One of our core strategies is to source as much product as is
economically practical from our own U.S. factories.We continually invest in
process improvements, software enhancements, and new products as well as
product family extensions to better serve our market.Offering customers
custom colors and configurations combined with timely delivery during an
intensely seasonal delivery window is easier to manage with the shorter supply
chain of our vertical business model.

We cannot predict how long the underlying challenges facing our market will
persist.For this reason, we continue to evaluate cost-saving initiatives in
an effort to return the Company to profitability at reduced sales volumes.As
discussed in prior communications, longer-term underlying demographic trends
remain favorable.Annual births in the U.S. are now near 4 million per year,
about the same as during the years of the famed "Baby Boom"
(1945-1964).Nonetheless, funding for education and educational furniture and
equipment will likely be constrained until spending priorities and structural
budget challenges are resolved.We support the general consensus that
education is the most positive response to our country's current challenges
and look forward to supplying America's schools with 21^st Century furniture
and equipment solutions.

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; the educational furniture
industry; international markets; product sourcing; raw material costs; state
and municipal bond funding; order rates; shipments; cost control initiatives;
operating efficiencies; supply chains; the Company's domestic factories; new
school construction 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 including raw material, 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; our ability to access cash under our credit facility; 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, 2014, 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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