Virco Announces First Quarter Results

Virco Announces First Quarter Results

TORRANCE, Calif., June 16, 2014 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation
(Nasdaq:VIRC) today announced first quarter results in the following letter to
stockholders from Robert A. Virtue, President and CEO:

First quarter results for the period ended April 30, 2014 continued the upward
trend that began last winter, reflecting better internal efficiencies and the
possible stabilization of funding in our core market of publicly funded
schools. For the period, revenues increased 18.3% from the prior year from
$19,890,000 to $23,530,000. Our pre-tax operating loss also improved,
declining from $4,484,000 to $3,874,000. As we've reported, our first and
fourth quarters are seasonally light and operating losses are typical in these
quarters.

As with so many other aspects of this uneven recovery, clear signals are hard
to come by. Incoming order rates, although up 5% for the quarter, remained
extremely volatile from month to month. Because of this, we remain cautious
about reading too much into the early season improvements, since the bulk of
this year's revenue is yet to be booked.

Here are our results for the first quarter ended April 30, 2014 and the
comparable period last year:

                                       Three Months Ended
                                       04/30/2014         04/30/2013
                                       (In thousands, except share data)
                                                         
Net sales                               $23,530            $19,890
Cost of sales                           15,353             13,481
Gross profit                            8,177              6,409
Selling, general
administrative & other                  12,051             10,893
expense
Loss before income taxes                (3,874)            (4,484)
Income tax benefits                     (19)               (37)
Net loss                                $(3,855)         $(4,447)
                                                         
Net loss per share -                    $(0.26)          $(0.31)
basic(a)
                                                         
Weighted average shares                 14,718             14,441
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.
                                                         
                           04/30/2014   01/31/2014        04/30/2013
Current assets              $54,490      $39,639            $50,406
Non-current assets          43,365       43,705             44,930
Current liabilities         40,439       22,656             35,389
Non-current liabilities     33,211       33,083             36,830
Stockholders' equity        24,205       27,605             23,117
                                                         

As explained in our annual report on Form 10-K for the recent year ended
January 31, 2014, we have made substantial reductions in our cost structure
over the past three years.In the fall of 2011 we offered a voluntary early
retirement program.Combined with normal attrition and a subsequent minor
reduction in force in May of 2013, our workforce is now 35% smaller than in
the summer of 2011. We have tried to balance these cuts with the preservation
of sufficient capacity and know-how to respond aggressively when a recovery
occurs.

First quarter gross margins reflect these efforts, improving sequentially over
the past three years from 29.4% in 2012 to 32.2% in 2013 to 34.8% in 2014.As
we look forward to the higher absorption rates of mid-year and the possibility
of a general lift in revenue due to economic recovery, these scalable
efficiencies offer the prospect of additional improvement in our financial
results.

We continue to seek out complementary markets that would further utilize our
proven ability to deliver quality furniture at globally competitive prices.In
the domestic U.S., we lost share in certain commercial markets during the
outsourcing boom of the last two decades.Just recently, we have begun to make
progress in re-establishing these non K-12 domestic revenue
streams.Internationally, we've also won some notable projects thanks to the
combination of American-made quality and a leveling of global sourcing
costs.

As we look forward to reestablishing the balance between commercial,
educational, and international markets that sustained us during our best
years, we believe the continuity of service we've worked so hard to maintain
will finally be rewarded.

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; order rates; absorption rates; economic
conditions (including without limitation the prospects of economic recovery);
the educational furniture industry; including the domestic market for
classroom furniture; state and municipal bond funding; the rate of completion
of bond funded construction projects; cost control initiatives; ability to
respondto a recovery in our industry; structural spending; pricing; use of
temporary workers; seasonality; marketing initiatives; and international
markets.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; order rates; 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; the impact of
cost-saving initiatives on our business; the competitive landscape, including
responses of our competitors and customers to changes in our prices;
demographics; and the terms and conditions of available financing sources.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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