7 unchanged sentences
Our sales are significantly impacted by the level of education funding primarily in North America, which, in turn is a function of the general economic environment.
−Removed: In a weak economy, state and local tax revenues for many of our customers are flat or
−Removed: decline, restricting funding for K-12 education spending, which typically leads to a decrease in demand for school furniture.
+Added: In a weak economy, state and local tax revenues for many of our customers are flat or decline, restricting funding for K-12 education spending, which typically leads to a decrease in demand for school furniture.
Sustained declines in the per-student funding levels provided for in state and local budgets in the future could have a materially adverse impact on our business, financial condition, and results of operations as they have in the past.
28 unchanged sentences
Contracts with most of our suppliers are short-term.
−Removed: These suppliers may not continue to provide raw materials and components to us at attractive prices, or at all, and we may not be able to obtain the raw materials we need in the future from these or other providers on the scale and within the time frames we require.
−Removed: In a deteriorating economic environment, including the current economic disruption caused by COVID-19 and global supply chain disruptions, many of the Company's suppliers may experience difficulty obtaining
−Removed: financing and may go out of business.
+Added: These suppliers may not continue to provide raw materials and components to us at attractive prices, or at all,
+Added: and we may not be able to obtain the raw materials we need in the future from these or other providers on the scale and within the time frames we require.
+Added: In a deteriorating economic environment, including the current economic disruption caused by COVID-19 and global supply chain disruptions, many of the Company's suppliers may experience difficulty obtaining financing and may go out of business.
The Company may have difficulty replacing these suppliers, especially if the supplier fails as the Company is entering the seasonal summer shipping season.
3 unchanged sentences
In addition, the current conflict in Ukraine and global sanctions recently placed on Russia have increased the cost and negatively impacted the availability of fuel, plastic and other materials.
−Removed: In fiscal 2023, the cost of commodities remained volatile, but the volatility dampened noticeably compared to fiscal 2022.
−Removed: Some commodities decreased in cost, but others increased, resulting in a net modest increase in costs.
+Added: In fiscal 2024 the cost of commodities was relatively stable.
+Added: In fiscal 2023, the cost of commodities was volatile, but the volatility dampened noticeably compared to fiscal 2022.
Any failure to obtain raw materials and components on a timely basis, or any significant delays or interruptions in the supply of raw materials, could prevent us from being able to manufacture and deliver products ordered by our customers in a timely fashion and increase our cost of obtaining raw materials and components in excess of our ability to pass along such costs to customers, any of which could have a negative impact on our reputation, sales and profitability.
7 unchanged sentences
During fiscal 2022, freight costs for containers from China increased by a factor of nearly eight.
−Removed: The cost of ocean freight declined during fiscal 2023, nearly returning to more typical levels.
+Added: The cost of ocean freight declined during fiscal 2023, nearly returning to more typical levels and remained stable in 2024.
Ongoing disruptions in the cost or availability of ocean freight or disruptions in port operations, may adversely impact the Company’s ability to obtain adequate component parts on a cost-effective basis to support sales, particularly in the busy summer season, which could have an adverse effect on our sales and profitability.
38 unchanged sentences
Fluctuations in the price, availability and quality of the commodities, raw materials and components used in manufacturing our products could have an adverse effect on our costs of sales, profitability and our ability to meet customers' demand.
−Removed: The price of commodities, raw materials and components, including steel and plastics, our largest raw material categories, have been volatile in prior years, and the cost, quality and availability of such commodities have been significantly affected in recent years by, among other things, changes in global supply and demand, changes in laws and regulations (including tariffs and duties), changes in exchange rates and worldwide price levels, natural disasters, public health issues such as the current COVID-19
−Removed: pandemic (or other future pandemics), labor disputes, terrorism and political unrest or instability.
+Added: The price of commodities, raw materials and components, including steel and plastics, our largest raw material categories, have been volatile in prior years, and the cost, quality and availability of such commodities have been significantly affected in recent years by, among other things, changes in global supply and demand, changes in laws and regulations (including tariffs and duties), changes in exchange rates and worldwide price levels, natural disasters, public health issues such as the current COVID-19 pandemic (or other future pandemics), labor disputes, terrorism and political unrest or instability.
These factors could lead to further price increases or supply interruptions in the future.
−Removed: As discussed above, in the short term, rapid changes in raw material costs can be very difficult for us to offset with price increases because, in the case of many of our contracts, we have committed to selling prices for goods and services for periods of one year, and occasionally longer.
+Added: As discussed above, in the short term, rapid changes in raw
+Added: material costs can be very difficult for us to offset with price increases because, in the case of many of our contracts, we have committed to selling prices for goods and services for periods of one year, and occasionally longer.
Our profit margins could be adversely affected if commodity, raw material, and component costs remain high or escalate further, and we are unable to pass along a portion of the higher costs to our customers.
In fiscal 2022, the Company incurred material increases in commodity costs and shortages in commodity availability that were material and adversely impacted the results of operations.
−Removed: Both availability and volatility in cost moderated in fiscal 2023.
+Added: Both availability and volatility in cost moderated in fiscal 2024 and 2023.
Total material costs for fiscal 2025, as a percentage of sales, could be higher than in fiscal 2024.
14 unchanged sentences
In addition, on an annual basis, we prepare a lender-approved forecast of seasonal working capital requirements and use borrowings under our credit facility with PNC Bank to help meet these seasonal cash flow and working capital requirements.
−Removed: Uncertainty in the credit markets may negatively impact our ability to obtain approval of our annual forecast, make changes in our forecast or renew our credit facility upon its maturity in 2027
−Removed: on favorable terms or at all.
+Added: Uncertainty in the credit markets may negatively impact our ability to obtain approval of our annual forecast, make changes in our forecast or renew our credit facility upon its maturity in 2027 on favorable terms or at all.
If we are unable to access or renew our credit facility on favorable terms (including available borrowing line and the rate of interest charged thereunder), or at all, or we are in violation of our financial covenants in the future and do not receive a waiver, our ability to fund our operations would be impaired, which would have a material adverse effect on our results of operations.
2 unchanged sentences
This requires management to make estimates and judgments with respect to the Company's working capital requirements during, and in anticipation of, the peak summer season.
−Removed: These estimates are complicated by the lingering economic impact of the COVID-19 pandemic, particularly with respect to anticipated future demand and the ability to maintain our supply chain.
Management expends a significant amount of time in the fourth quarter of the prior year and the first quarter of each year developing a stocking plan and estimating the number of temporary summer employees, the amount of raw materials and the types of components and products that will be required during the peak season.
If management does not accurately forecast the Company's requirements, the Company's results of operations could be adversely affected.
−Removed: For example, if management underestimates any of these requirements, Virco's ability to meet customer orders in a timely manner or to provide adequate
−Removed: customer service may be diminished.
+Added: For example, if management underestimates any of these requirements, Virco's ability to meet customer orders in a timely manner or to provide adequate customer service may be diminished.
If management overestimates any of these requirements, the Company may be required to absorb higher storage, labor and related costs, each of which may negatively affect the Company's results of operations.
1 unchanged sentence
Our capital requirements depend on many factors, including capital improvements, tooling and new product development.
−Removed: To the extent that our existing capital is insufficient to meet these requirements and cover any losses, we may need to raise additional funds through financings or curtail our growth and reduce our assets.
+Added: To the extent that our existing capital is insufficient to meet these requirements and cover any losses, we may need to raise
+Added: additional funds through financings or curtail our growth and reduce our assets.
Any equity or debt financing, if available at all, may be on terms that are not favorable to us.
36 unchanged sentences
Compliance with more stringent laws or regulations, or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material.
−Removed: If new environmental laws and regulations are introduced and enforced domestically, but not implemented or enforced internationally, we will operate at a competitive disadvantage compared to competitors who source product primarily from international sources.
+Added: If new environmental laws and regulations are introduced and enforced domestically, but not implemented or enforced internationally, we will operate at a competitive disadvantage
+Added: compared to competitors who source product primarily from international sources.
In addition, in the past we have been identified as a potentially responsible party pursuant to the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”) for remediation costs associated with waste disposal sites previously used by us.
26 unchanged sentences
Various aspects of our business, including our manufacturing operations, suppliers, and customers, may be negatively affected by severe weather events tied to climate change, including extreme storms, flooding, wildfires, extreme temperatures, and chronic changes in meteorological patterns.
−Removed: The frequency and severity of severe weather conditions affecting our business may be impacted by climate change, although it is currently impossible to predict with accuracy the scale of such impact.
+Added: The frequency and severity of severe weather conditions affecting our business
+Added: may be impacted by climate change, although it is currently impossible to predict with accuracy the scale of such impact.
These impacts could have a material adverse effect on our business, results of operations and financial condition.
26 unchanged sentences
In November 2020, California voters passed the California Privacy Rights and Enforcement Act of 2020, which further expands the California Consumer Privacy Act with additional data privacy compliance requirements that may impact our business, and establishes a regulatory agency dedicated to enforcing those requirements.
−Removed: Aspects of these new laws and their interpretation and enforcement remain uncertain, and their potential effects are far-reaching and may require us to modify our data processing practices and policies and incur substantial costs and expenses in order to comply.
+Added: Aspects of these new laws and their interpretation and enforcement remain uncertain, and their potential effects are far-reaching and may require us to modify our data processing practices and policies and incur substantial costs and expenses in order to
These new laws may also lead other states to pass comparable legislation, with potentially greater penalties and more rigorous compliance requirements relevant to our business.
14 unchanged sentences
• changes in stock market analyst recommendations or earnings estimates regarding our common stock, other comparable companies or the education furniture industry generally.
−Removed: Unresolved Staff Comments
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.