What changed in this filing

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Item 1. Financial Statements

2025-06-06 compared with 2024-12-09 · 92 added, 140 removed, 348 unchanged (40% of the section changed)

6 unchanged sentences

Trade accounts receivables, net 12,279 13,004 19,772

Income tax receivable 3,806 4,060 66

Inventories 74,029 55,647 71,333

2 unchanged sentences

Non-current assets

Property, plant and equipment

Land 3,731 3,731 3,731

Land improvements 697 694 694

Buildings and building improvements 51,950 51,576 51,498

Machinery and equipment 118,324 114,400 116,695

Leasehold improvements 523 523 976

Total property, plant and equipment 175,225 170,924 173,594

Less accumulated depreciation and amortization 139,604 136,356 138,650

Net property, plant and equipment 35,621 34,568 34,944

Property, plant, and equipment, net 36,482 36,428 34,074

Operating lease right-of-use assets 34,384 35,593 6,274

Deferred tax assets, net 6,550 6,634 7,031

Deferred income tax assets, net 5,862 5,821 6,705

Other assets, net 12,772 11,931 9,631

7 unchanged sentences

Accrued compensation and employee benefits 5,202 11,064 5,626

Income tax payable 1,463 145 3,130

Current portion of long-term debt 261 258 250

17 unchanged sentences

Authorized 25,000,000 shares, $ 0.01 par value;

issued and outstanding 16,289,406 shares at 10/31/2024, and 16,347,314 at 1/31/2024 and 10/31/2023

issued and outstanding 15,738,138 shares at 4/30/2025, 16,087,082 shares at 1/31/2025, and 16,207,612 shares at 4/30/2024

Additional paid-in capital 113,616 117,549 120,048

Accumulated deficit ( 8,528 ) ( 8,867 ) ( 27,235 )

Accumulated other comprehensive loss ( 1,366 ) ( 1,310 ) ( 1,197 )

Accumulated other comprehensive income (loss) 355 422 ( 1,338 )

Total stockholders’ equity 105,600 109,265 91,637

9 unchanged sentences

Selling, general and administrative expenses 16,114 17,376

Operating income 11,113 14,706

Unrealized (gain) loss on investment in trust account ( 246 ) 176

Pension expense 106 301

Interest (income) expense, net ( 24 ) 765

Income before income taxes 11,277 13,464

Income tax expense 2,876 3,304

Net income $ 8,401 $ 10,160

Cash dividends declared per common share:

Net income per common share:

Basic $ 0.52 $ 0.62

Diluted $ 0.52 $ 0.62

Weighted average shares of common stock outstanding:

Basic 16,289 16,347

Diluted 16,296 16,428

See accompanying notes to unaudited condensed consolidated financial statements.

Unaudited Condensed Consolidated Statements of Income

Nine months ended

10/31/2024 10/31/2023

(In thousands, except per share data)

Net sales $ 237,774 $ 226,516

Costs of goods sold 130,531 126,525

Gross profit 107,243 99,991

Selling, general and administrative expenses 71,265 65,343

Operating income 35,978 34,648

Operating (loss) income ( 94 ) 2,971

Unrealized gain on investment in trust account ( 1,175 ) ( 215 )

Pension expense 27 107

Interest expense 506 2,560

Interest expense, net 60 208

Income before income taxes 994 2,871

2 unchanged sentences

Cash dividends declared per common share:

$ 0.025 $ 0.020

Net income per common share:

11 unchanged sentences

Other comprehensive income:

Pension adjustments (net of tax adjustment of $( 29 ) and $ 406 at October 31, 2024 and 2023, respectively)

Net comprehensive income $ 8,392 $ 11,323

See accompanying notes to unaudited condensed consolidated financial statements.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Nine months ended

Pension adjustments (net of tax adjustment of $ 23 and $ 10 at April 30, 2025 and 2024, respectively)

( 67 ) ( 28 )

(In thousands)

Net income $ 27,374 $ 24,252

Other comprehensive income:

Pension adjustments (net of tax adjustment of $( 57 ) and $ 406 at October 31, 2024 and 2023, respectively)

Net comprehensive income $ 665 $ 2,112

1 unchanged sentence

Unaudited Condensed Consolidated Statements of Cash Flows

Nine months ended

Three months ended

4/30/2025 4/30/2024

2 unchanged sentences

Net income $ 732 $ 2,140

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization 1,534 1,334

4 unchanged sentences

Stock-based compensation 63 172

Defined pension plan settlement — 372

Amortization of net actuarial gain (loss) for pension plans ( 113 ) 3

Amortization of net actuarial gain for pension plans ( 90 ) ( 38 )

Non-cash unrealized gain on investment ( 1,175 ) ( 215 )

2 unchanged sentences

Trade accounts receivable 710 3,374

Other receivables ( 266 ) 41

Inventories ( 18,382 ) ( 12,962 )

2 unchanged sentences

Accounts payable and accrued liabilities ( 3,126 ) 3,688

Net cash provided by operating activities 41,420 22,273

Net cash used in operating activities ( 19,031 ) ( 4,507 )

Investing activities:

Purchases of property, plant and equipment ( 2,444 ) ( 1,088 )

Purchases of marketable securities in trust accounts ( 1,285 ) —

Proceeds from sale of fixed assets — 2

Proceeds from sale of marketable securities in trust accounts 1,285 —

Proceeds from surrendering life insurance policies — 145

4 unchanged sentences

Common stock repurchased ( 4,000 ) ( 1,499 )

Tax withholding payments on share-based compensation ( 412 ) ( 110 )

Payment of deferred financing costs ( 50 ) ( 175 )

Cash dividends paid ( 393 ) ( 327 )

Net cash used in financing activities ( 3,206 ) ( 13,838 )

Net increase in cash 33,572 3,830

Net cash (used in) provided by financing activities ( 4,457 ) 806

Net decrease in cash ( 25,932 ) ( 4,642 )

Cash at beginning of period 26,867 5,286

4 unchanged sentences

Cash paid during the period for income taxes, net of refunds $ 10 $ 971

Noncash investment in right-of-use assets in exchange for a lease liability $ 32,982 $ —

See accompanying notes to unaudited condensed consolidated financial statements.

Unaudited Consolidated Statements of Changes in Stockholders' Equity

Three-Month Period Ended October 31, 2024

In thousands, except share data Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholder's Equity

Balance at July 31, 2024 16,289,406 $ 163 $ 119,734 $ ( 10,728 ) $ ( 1,357 ) $ 107,812

Net income — — — 8,401 — 8,401

Cash dividends — — — ( 407 ) — ( 407 )

Pension adjustments — — — — ( 9 ) ( 9 )

Shares vested and others — — ( 1 ) — — ( 1 )

Stock compensation expense — — 63 — — 63

Stock repurchase — — — — — —

Balance at October 31, 2024 16,289,406 $ 163 $ 119,796 $ ( 2,734 ) $ ( 1,366 ) $ 115,859

Three-Month Period Ended October 31, 2023

In thousands, except share data Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholder's Equity

Balance at July 31, 2023 16,347,314 $ 164 $ 121,030 $ ( 36,539 ) $ ( 2,360 ) $ 82,295

Net income — — — 10,160 — 10,160

Cash dividends — — — — — —

Pension adjustments — — — — 1,163 1,163

Shares vested and others — — — — — —

Stock compensation expense — — 171 — — 171

Stock repurchase — — — — — —

Balance at October 31, 2023 16,347,314 $ 164 $ 121,201 $ ( 26,379 ) $ ( 1,197 ) $ 93,789

Nine-Month Period Ended October 31, 2024

Three-Month Period Ended April 30, 2025

In thousands, except share data Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholder's Equity

6 unchanged sentences

Stock repurchase ( 348,944 ) ( 4 ) ( 3,996 ) — — ( 4,000 )

Balance at October 31, 2024 16,289,406 $ 163 $ 119,796 $ ( 2,734 ) $ ( 1,366 ) $ 115,859

Nine-Month Period Ended October 31, 2023

Balance at April 30, 2025 15,738,138 $ 157 $ 113,616 $ ( 8,528 ) $ 355 $ 105,600

Three-Month Period Ended April 30, 2024

In thousands, except share data Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholder's Equity

6 unchanged sentences

Stock repurchase ( 139,702 ) ( 2 ) ( 1,497 ) — — ( 1,499 )

Balance at October 31, 2023 16,347,314 $ 164 $ 121,201 $ ( 26,379 ) $ ( 1,197 ) $ 93,789

Balance at April 30, 2024 16,207,612 $ 162 $ 120,048 $ ( 27,235 ) $ ( 1,338 ) $ 91,637

See accompanying notes to unaudited condensed consolidated financial statements.

Notes to unaudited Condensed Consolidated Financial Statements

October 31, 2024

April 30, 2025

Basis of Presentation

4 unchanged sentences

In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

Operating results for the three months and nine months ended October 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2025.

Operating results for the three months ended April 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2026.

The balance sheet at January 31, 2025 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.

18 unchanged sentences

Recently Issued Accounting Standards

New Accounting Pronouncements Recently Adopted

Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

In November 2023, the FASB issued this ASU to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company adopted ASU 2023-07 during the year ended January 31, 2025.

Refer to Note 16 for required disclosures.

Recently Issued Accounting Pronouncements

ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

2 unchanged sentences

The amendments are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted.

A public entity should apply the amendments either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements.

presented in the financial statements.

We are currently evaluating the impact that this guidance will have on our consolidated financial statements and disclosures.

Accounting Standards Updates ("ASUs") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

We do not expect that this guidance will have a material impact on our consolidated financial statements and disclosures.

ASU 2023-09, Income Taxes (Topic 740):

32 unchanged sentences

The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation.

The following table presents a breakdown of the Company’s inventories as of October 31, 2024, January 31, 2024 and October 31, 2023:

The following table presents a breakdown of the Company’s inventories as of April 30, 2025, January 31, 2025 and April 30, 2024:

4/30/2025 1/31/2025 4/30/2024

25 unchanged sentences

The quantitative information regarding our leases is as follows:

Three Months Ended Nine Months Ended

Three Months Ended

4/30/2025 4/30/2024

7 unchanged sentences

Cash paid for amounts included in the measurement of lease liabilities $ 1,638 $ 1,621

Right-of-use assets obtained in exchange for new lease liabilities (a) $ 34,309 $ 364

Right-of-use assets obtained in exchange for new lease liabilities $ 237 $ 954

Weighted-average remaining lease term (years) 5.2 1.2

Weighted-average discount rate 9.82 % 6.36 %

Minimum future lease payments for operating leases in effect as of October 31, 2024, are as follows:

Minimum future lease payments for operating leases in effect as of April 30, 2025, are as follows:

Operating Lease

4 unchanged sentences

Short-term lease liabilities 2,562

Long-term lease liabilities 37,380

Long-term lease liabilities (a) 34,628

Total lease liabilities 37,190

16 unchanged sentences

The Company and Virco Inc., its wholly-owned subsidiary (collectively, the “Borrowers”) have a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association, as administrative agent and lender (“PNC”).

The Credit Agreement was amended numerous times since its origination in December 2011, most recently on November 22, 2024.

The Credit Agreement was amended numerous times since its origination in December 2011, most recently on April 9, 2025.

The Credit Agreement as currently in effect permits the Company to issue cash dividends or make payments with respect to the Company’s capital stock in an aggregate amount up to $ 8.0 million during any fiscal year, provided that no default shall have occurred or is continuing or would result from any such payment, and the Company must demonstrate pro forma compliance with a 12-month trailing fixed charge coverage ratio of not less than 1.20 :1.00 as of the fiscal quarter immediately preceding the date of any such dividend or payment.

The Credit Agreement also requires the Company to maintain a minimum fixed charge

coverage ratio, and contains numerous other covenants that limit under certain circumstances the ability of the Borrowers and their subsidiaries to, among other things, merge with or acquire other entities, incur new liens, incur additional indebtedness, sell assets outside of the ordinary course of business, enter into transactions with affiliates, or substantially change the general nature of the business of the Borrowers.

The Credit Agreement also requires the Company to maintain a minimum fixed charge coverage ratio, and contains numerous other covenants that limit under certain circumstances the ability of the Borrowers and their subsidiaries to, among other things, merge with or acquire other entities, incur new liens, incur additional indebtedness,

sell assets outside of the ordinary course of business, enter into transactions with affiliates, or substantially change the general nature of the business of the Borrowers.

In addition to the financial covenants, the Credit Agreement provides for customary events of default, subject to certain cure periods and other limitations.

10 unchanged sentences

The Credit Agreement also contains certain financial covenants, including covenants requiring a minimum fixed charge coverage ratio and limits on capital expenditures.

The Company was in compliance with its debt covenants as of October 31, 2024.

The Company was in compliance with its debt covenants as of April 30, 2025.

The Company's revolving line of credit with PNC is structured to provide seasonal credit availability during the Company's peak summer season.

Approximately $ 18.7 million was available for borrowing as of October 31, 2024.

Approximately $ 42.9 million was available for borrowing as of April 30, 2025.

The interest rate is determined as a sum of the applicable margin rate, which is 3.00 % from January through July and 2.50 % from August through December, plus the Secured Overnight Financing Rate (SOFR).

The Company did not have an outstanding amount under the Credit Agreement as of October 31, 2024.

The Company also incurred a fee on the unused portion of the revolving line of credit at a rate of 0.375 % through September 30, 2024 and 0.250 % thereafter.

The Company did not have an outstanding amount under the Credit Agreement as of April 30, 2025.

The Company also incurred a fee on the unused portion of the revolving line of credit at a rate of 0.250 %.

On November 22, 2024, the Company entered into Amendment No.

6 unchanged sentences

Increased limits on cash dividends and common stock repurchase payments from $ 5 million to $ 8 million in the aggregate during any fiscal year.

On April 9, 2025, the Company entered into Amendment No.

6 to the Credit Agreement with PNC Bank, which established a new category of permitted share repurchases in an amount up to $ 7.5 million, which is in addition to the dollar limits on permitted share repurchases under the Credit Agreement discussed above.

The share repurchases under the new category must occur during the fiscal year ending January 31, 2026, may not occur while any Default or Event of Default exists or would result from such repurchases, and must be made solely from cash on hand and not from the proceeds of advances under the Credit Facility.

The permitted share repurchases under this new category are also not counted as “Restricted Payments” when calculating the Company’s compliance with the Fixed Charge Coverage Ratio covenants in the Credit Agreement.

The Company also carries a mortgage on its manufacturing building in Conway, Arkansas.

The original note was dated August 2017 with a principal balance of $ 5.8 million, at a fixed rate of 4.0 % per year and 20 -year term.

The outstanding amount under this note was $ 4.2 million as of October 31, 2024.

On April 29, 2024, the Company entered into Amendment No.

4 to the Credit Agreement ("Amendment No.

4") with PNC.

Amendment No.4 amended the Credit Agreement to reflect the following material changes:

Maximum size of the PNC line of credit was lowered from $ 72.5 million to $ 70.0 million during the months of June through August, and

Maximum amount allowed for the Company to issue dividends or repurchase stock has been increased from $ 3.0 million to $ 5.0 million in the aggregate during any fiscal year.

Management believes that the carrying value of debt approximated fair value at October 31, 2024, as all of the long-term debt bears interest at variable rates based on prevailing market conditions, except mortgage on a manufacturing building in Conway Arkansas at a fixed rate of 4.0 % per year.

The outstanding amount under this note was $ 4.1 million as of April 30, 2025.

Management believes that the carrying value of debt approximated fair value at April 30, 2025, as all of the long-term debt bears interest at variable rates based on prevailing market conditions, except mortgage on a manufacturing building in Conway Arkansas at a fixed rate of 4.0 % per year.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized.

1 unchanged sentence

As a part of this evaluation, the Company assesses all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, the availability of tax carrybacks, tax-planning strategies, and results of recent operations, to determine whether sufficient future taxable income will be generated to realize existing deferred tax assets.

Valuation allowances of $ 218,000 , $ 251,000 and $ 255,000 as of October 31, 2024, January 31, 2024 and October 31, 2023, respectively, are needed for federal deferred tax assets and certain state net operating loss carryforwards to reduce the carrying amount of deferred tax assets to an amount that is more likely than not to be realized.

The net change in the valuation allowance for the three months and nine months ended October 31, 2024 was $ 0 and a decrease of $ 33,000 , respectively.

The net change in the valuation allowance for the three months and nine months ended October 31, 2023 was a decrease of $ 135,000 and a decrease of $ 609,000 , respectively.

For the three months ended October 31, 2024 and 2023, the effective income tax rates were 25.5 % and 24.5 %, respectively.

For the nine months ended October 31, 2024 and 2023, the effective income tax rates were 24.4 % and 24.0 %, respectively.

Valuation allowances of $ 216,000 , $ 236,000 and $ 217,000 as of April 30, 2025, January 31, 2025 and April 30, 2024, respectively, are needed for certain state net operating loss carryforwards to reduce the carrying amount of deferred tax assets to an amount that is more likely than not to be realized.

The net change in the valuation allowance for the three months ended April 30, 2025 and April 30, 2024 were a decrease of $ 20,000 and $ 34,000 , respectively.

For the three months ended April 30, 2025 and 2024, the effective income tax rates were 26.4 % and 25.5 %, respectively.

Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

The January 31, 2019 and subsequent fiscal years remain open for examination by the IRS and state tax authorities.

The Company is not currently under any state examination.

The January 31, 2022 and subsequent fiscal years remain open for examination by the IRS and some state jurisdictions.

The January 31, 2021 and subsequent fiscal years remain open for the remaining state jurisdictions.

The Company is not currently under federal or state examination.

Net Income per Share

The following table sets forth the computation of basic and diluted net income per share:

Three Months Ended Nine Months Ended

Three Months Ended

4/30/2025 4/30/2024

11 unchanged sentences

The Company determines the fair value of its restricted stock units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted.

During the nine-month period ended October 31, 2024, the Company granted 16,066 awards, vested

164,110 shares according to their terms and forfeited 0 shares under the 2019 Plan.

As of October 31, 2024, there were approximately 521,859 shares available for future issuance under the 2019 Plan.

The following table summarizes the stock-based compensation expense related to restricted stock units and awards recognized in the Company's statements of operations for the three and nine months ended October 31, 2024 and 2023:

Three Months Ended Nine Months Ended

During the three-month period ended April 30, 2025, the Company granted 0 awards, vested 0 shares according to their terms and forfeited 0 shares under the 2019 Plan.

As of April 30, 2025, there were approximately 521,859 shares available for future issuance under the 2019 Plan.

The following table summarizes the stock-based compensation expense related to restricted stock units and awards recognized in the Company's statements of income for the three months ended April 30, 2025 and 2024:

Three Months Ended

4/30/2025 4/30/2024

3 unchanged sentences

Total stock-based compensation expense $ 63 $ 172

As of October 31, 2024, there was $ 146,000 of unrecognized compensation expense related to unvested restricted stock units and/or awards, which is expected to be recognized over a weighted average period of approximately one year .

As of April 30, 2025, there was $ 21,000 of unrecognized compensation expense related to unvested restricted stock awards, which is expected to be recognized in one month.

Retirement Plans

5 unchanged sentences

There is no service cost incurred under the VIP Plan.

The following table summarizes the net periodic pension cost for the Pension Plan and the VIP Plan for the three and nine months ended October 31, 2024 and 2023:

Three Months Ended Nine Months Ended

The following table summarizes the net periodic pension cost for the Pension Plan and the VIP Plan for the three months ended April 30, 2025 and 2024:

Three Months Ended

4/30/2025 4/30/2024

5 unchanged sentences

Amortization of prior service cost — —

Recognized net actuarial (gain) loss ( 38 ) 26 ( 113 ) 26

Recognized net actuarial gain ( 90 ) ( 35 )

Benefit cost $ 27 $ 107

3 unchanged sentences

The plan includes Virco stock as one of the investment options.

At October 31, 2024 and 2023, the plan held 1,105,376 shares and 1,404,774 shares of Virco stock, respectively.

For the three months ended October 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $ 387,000 and $ 356,000 respectively.

For the nine months ended October 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $ 1,165,000 and $ 1,078,000 respectively.

At April 30, 2025 and 2024, the plan held 1,063,340 shares and 1,240,365 shares of Virco stock, respectively.

For the three months ended April 30, 2025 and 2024, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $ 545,000 and $ 441,000 respectively.

Warranty Accrual

4 unchanged sentences

The Company accrues an estimate of its exposure to warranty claims based upon both product sales data and an analysis of actual warranty claims incurred.

The following is a summary of the Company’s warranty-claim activity for the three and nine months ended October 31, 2024 and 2023:

Three Months Ended Nine Months Ended

The following is a summary of the Company’s warranty-claim activity for the three months ended April 30, 2025 and 2024:

Three Months Ended

4/30/2025 4/30/2024

11 unchanged sentences

Delivery Costs

For the three months ended October 31, 2024 and 2023, shipping and classroom delivery costs of approximately $ 8.8 million and $ 8.6 million, respectively, were included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

For the nine months ended October 31, 2024 and 2023, shipping and classroom delivery costs of approximately $ 23.1 million and $ 22.0 million, respectively, were included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

For the three months ended April 30, 2025 and 2024, shipping and classroom delivery costs of approximately $ 3.4 million and $ 4.2 million, respectively, were included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.

Property, Plant, and Equipment

Property, plant, and equipment consisted of the following (in thousands):

4/30/2025 1/31/2025 4/30/2024

(In thousands)

Land $ 3,731 $ 3,731 $ 3,731

Land improvements 706 706 694

Buildings and building improvements 52,050 52,030 51,575

Machinery and equipment 121,400 119,972 115,215

Leasehold improvements 657 657 523

Property, plant and equipment, gross 178,544 177,096 171,738

Less accumulated depreciation and amortization ( 142,062 ) ( 140,668 ) ( 137,664 )

Property, plant and equipment, net $ 36,482 $ 36,428 $ 34,074

Depreciation and amortization expenses related to property, plant, and equipment recorded within cost of goods sold was $ 1.2 million and $ 1.0 million for the three months ended April 30, 2025 and 2024, respectively.

Depreciation and amortization expenses related to property, plant, and equipment recorded within selling, general, and administrative expenses was $ 0.3 million and $ 0.3 million for the three months ended April 30, 2025 and 2024, respectively.

Segment Information

The Company operates in one segment and has one reportable segment.

The Company determines operating segments based on how its Chief Operating Decision Maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance.

The Company’s CODM is a group of individuals comprised of our senior executives, who regularly review the Company’s operating results on a consolidated basis.

The Company’s CODM regularly reviews financial information presented on a consolidated basis.

The CODM uses consolidated revenue, gross profit, net income to allocate operating and capital resources and assess performance by comparing actual results to historical results and previously forecasted financial information.

The Company’s measure of segment assets is reported on the consolidated balance sheets as total assets.

Subsequent Events

On November 22, 2024, the Company executed Amendment No.

5 to the Restated Credit Agreement, with an effective date of October 31, 2024.

On December 5, 2024, the Company’s Board of Directors declared a cash dividend for the Company’s fourth fiscal quarter of

On June 3, 2025, the Company’s Board of Directors declared a cash dividend for the Company’s second fiscal quarter of

$ 0.025 on each outstanding share of common stock.

The dividend is payable on January 10, 2025 to stockholders of record of the common stock as of the close of business on December 20, 2024.

The dividend is payable on July 11, 2025 to stockholders of record of the common stock as of the close of business on June 20, 2025.

While the Company currently intends to pay future dividends on a quarterly basis, following review and approval by the Board of Directors, the declaration and payment of future dividends, as well as the amounts thereof, are subject to the discretion of the Board as well as restrictive covenants in the Company’s lending agreements.

1 unchanged sentence

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.

What changed 10-Q

Item 1. Financial Statements