UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
Commission file Number 0-10449
TVI CORPORATION
(Exact name of registrant as specified in its charter.)
Maryland 52-1085536
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7100 Holladay Tyler Road, Glenn Dale, MD 20769
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code:
(301) 352-8800
Indicate by check mark whether the registrant(1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of September 30, 2000:
Preferred Stock, $1 Par Value - 61,518
Common Stock, $.01Par Value - 24,527,493
PART I. - FINANCIAL INFORMATION
TVI CORPORATION
STATEMENTS OF LOSS AND ACCUMULATED DEFICIT
FOR THE THREE MONTHS AND NINE MONTHS
ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
(Amounts in thousands, except per share data)
Three months ended Nine months ended
September 30 September 30
__________________ _________________
2000 1999 2000 1999
______ ______ ______ ______
Net Sales $ 913 $ 420 $2,417 $1,289
Cost of goods sold 562 216 1,251 649
______ ______ ______ ______
Gross Profit 352 204 1,166 640
Selling, general and
administrative expenses 200 145 632 492
______ ______ ______ ______
Operating Income 152 60 534 148
Interest Expense 10 10 17 24
Other Income 0 0 105 105
______ ______ ______ ______
Net Income 143 50 623 229
Accumulated Deficit -
Beginning of Period (11,506) 11,822) (11,649) (12,002)
_______ _______ _______ _______
Accumulated Deficit -
End of Period (11,026) (11,777) (11,026)(11,777)
Earnings per share $ .006 $ .002 $ .025 $ .010
<FN>
See Accompanying Notes to Financial Statements
TVI CORPORATION
BALANCE SHEET
(Unaudited)
(Amounts in thousands, except per share data)
Sep 30, 2000 Sep 30, 1999
______________ ______________
ASSETS
Current Assets
Cash $ 307 $ 42
Accounts receivable trade 436 225
Inventories 782 632
Prepaid expenses 17 15
Other current assets 159 182
______ ______
Total Current Assets 1,703 1,097
Property, Plant and Equipment 759 719
less accumulated depreciation (599) (565)
Deferred Costs and Other Assets 19 12
______ ______
TOTAL ASSETS (NOTE 3) 1,882 1,263
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 113 $ 87
Accrued Compensation 88 80
Other accrued liabilities 51 298
______ ______
Total Current Liabilities 252 465
Long Term Debt 248 259
Stockholder's Equity (Deficiency)
Preferred Stock, $1 62 61
Common stock par value $.01
Authorized 35,000,000 shares
Issued and outstanding -
24,527,493 and 23,277,974 shares 245 232
Capital in excess of par value 12,101 12,022
Accumulated deficit (11,026) (11,776)
_______ _______
Total Stockholders' Equity $1,382 $ 539
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,882 $1,263
<FN>
See Accompanying Notes to Financial Statements
TVI CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
(Amounts in thousands)
2000 1999
Cash Flow From Operating Activities:
Loss From Operations $ 622 $ 225
_______ _______
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities
Depreciation 31 49
Increase (Decrease) From Changes:
Receivables (19) (86)
Inventories (193) (141)
Prepaid Expenses 60 1
Other assets 32 (34)
Accounts payable (11) 52
Accrued compensation (13) 1
Other accrued liabilities (5) 18
Customer deposits (95) 47
_________ _______
Net Cash Used In Operating Activities $ (211) $ (94)
_______ _______
Cash Flow From Investing Activities:
Capital expenditures $ (38) $ (33)
Capitalized patent costs (3) 0
______ _____
Net Cash Used In
Investing Activities $ (41) $ (33)
Cash Flow From Financing Activities:
Issuance of stock $ 83 $ 17
Decrease in Loans Payable 186 17
Increase in Loans Receivable (5) (75)
Net Cash Provided (Used) From
Financing Activities $ (110) $ (74)
_______ _______
INCREASE IN CASH $ 260 $ 24
Cash at Beginning of Year $ 47 $ 19
_______ _______
Cash at End of Period $ 307 $ 42
<FN>
See Accompanying Notes to Financial Statements
TVI CORPORATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
Note 1. Summary of Significant Accounting Policies
The accompanying financial statements, which should be read
in conjunction with the financial statements of TVI Corporation
("the Company") included in the 1999 Annual Report filed on Form
10-KSB, are unaudited but have been prepared in the ordinary course
of business for the purpose of providing information with respect
to the interim period. The Company believes that all adjustments
necessary for a fair presentation for such periods have been
included.
The company considers its Accounts Receivable to be fully
collectible, and no allowance for doubtful accounts has been
recorded.
No accrual has been made for compensated absences because
unused amounts of leave do not vest and are not paid upon
termination of employment.
Note 2. Long Term Debt
Long term debt includes matured promissory notes $236,702 of
which $172,500 is principal and the balance accrued interest as of
December 1998. The notes were issued as part of an embezzlement
scheme in 1993 and matured in December 1998. Additional accrued
interest on the notes in the amount of $20,974 is carried as a
current liability. Most of the original notes have been exchanged
for common stock, and the company expects that the remaining debt
will be exchanged also.
Long term debt also includes $10,879 in pre-bankruptcy state
taxes which is being paid off on an installment basis without interest.
Note 3. Inventory
Inventories at September 30, 2000 and 1999 consisted of the
following:
September 30, 2000 September 30, 1999
Finished Goods $ 83,601 $ 26,955
Raw Materials 698,394 604,924
__________ ________
Total $ 781,995 $631,879
TVI CORPORATION
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
September 30, 2000
Liquidity and Capital Resources
The Company's working capital increased significantly for the
first nine months of 2000 as compared to the same period in 1999.
The increase in working capital was due to the increased amount of
operating profit and receipt of cash from sale of the company's
interest in another company. Additionally, a debt of $55,000 was
exchanged for the company's common stock. While significant amounts
of net income were used to pay off debt, increase inventory, and
purchase some equipment, cash on hand increased by about $260,000
for the nine month period.
During the period the company paid off about $25,000 in
deferred salary. It also repaid all of the loans and interest
from the president amounting to about $146,000.
The company had at the beginning of the period a tax loss
carry-forward of $7.4 million, and recorded no income tax obligation.
The company's capital expenditures for the period were $40
thousand. The company needs and intends to make additional investments
in equipment to increase capacity and productivity.
Results of Operations
Net sales for the first nine months of 2000 were $2,417,050,
an increase of 87% over sales of $1,288,956 for the same period in
1999. There was an increase in sales in all three quarters of the
period over the same periods in 1999. The increase in sales was
due to substantially increased sales in the company's Public Safety
products and its Hospitality and Promotion products. Sales of Thermal
Target products were slightly higer, while sales of Tactical Shelters
were lower.
Cost of Goods increased due to higher sales volume. Gross
margin for the period was 48.3% as compared to 49.7% for the 1999
period. The decrease was due to inclusion of a sub-contract in the
third quarter which carried a lower mark-up. The cost of aluminum
tubes increased about 22% on July 1, and average hourly wage was
slightly higher. The company's waste and inventory adjustments were
also slightly higher in current period.
Selling, General,and Administrative expense increased to
$632,138 for the 2000 period from $491,800 in the 1999 period.
The 28.5% increase was due to several factors associated with
increased sales volume such as marketing costs, sales commissions,
insurance premiums, and production payroll taxes.
Net income for the first nine months of 2000 increased to
$622,566, an increase of 171% over income of $229,457 for 1999.
Both periods include extraordinary income of $105,000 received
from recovery and sale of company assets.
Interest expense for the first nine months decreased to
$18,000 from $24,000 in the prior period. The reduction was due
to repayment of debt during the period.
PART II - OTHER INFORMATION
Item #6 Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on Form 8-K
No reports have been filed on Form 8-K during this
quarter.
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly cause this report to be signed on its
behalf by the undersigned thereunto duly authorized.
TVI CORPORATION
Registrant
November 8, 2000 /s/Allen E. Bender
Date Allen E. Bender
President