Exhibit 99.1
TECHNOLOGY RESEARCH CORPORATION
ANNOUNCES STRONG YEAR END AND FOURTH FISCAL QUARTER RESULTS
CLEARWATER, FLORIDA, April 23, 2003 --Robert S. Wiggins, Chairman and Chief
Executive Officer of Technology Research Corporation (TRC), (NASDAQ-TRCI),
announced today that the Company's operating revenues for the fourth quarter
ended March 31, 2003 were $5,355,518, compared to $3,981,533 reported in the
same quarter last year, an increase of approximately 35%. Net income for the
fourth quarter was $367,242, compared to $98,843 for the same quarter last
year, an increase of approximately 272%. Basic and diluted earnings were $.07
per share for the fourth quarter, compared to $.02 per share for the same
quarter last year.
Net income improved in the Company's fourth quarter ended March 31, 2003,
compared to the prior year's quarter primarily due to an increase in revenues.
The Company's commercial sales increased by $891,870, of which $650,000 was
attributed to the Company's shipments to a major sprayer/washer manufacturer in
the quarter, as previously reported. Military sales increased by $499,966, and
royalty income was down $17,851.
The Company's operating revenues for the year ended March 31, 2003 were
$17,761,936, compared to $16,684,285 reported in the prior year, an increase of
approximately 6%. Net income was $1,014,791 for the year, compared to $200,360
reported in the prior year, an increase of approximately 406%. Basic and
diluted earnings were $.19 per share for the year, compared to $.04 per share
for the prior year.
Mr. Wiggins commented, "I am pleased with the Company's performance in Fiscal
Year 2003. The improvement over the prior year was the result of increased
revenues, higher gross profit margins and lower interest expense. Gross profit
margins improved as the result of product mix plus productivity and quality
improvements in manufacturing. Interest expense was reduced as a result of the
Company remaining debt-free during the last three quarters of its fiscal year.
Currently, all of the Company's $3,000,000 line of credit is available for use,
and the Company's cash balance as of March 31, 2003 increased to $2,529,562.
While uncertainties still exist in the economy, the Company expects its
business to remain stable throughout Fiscal Year 2004."
For the fiscal year ended March 31, 2003, commercial revenues decreased
slightly by $21,167, military revenues improved by $1,144,878 and royalty
income was down by $46,060 compared to the prior year. Commercial revenues
continued to be affected in Fiscal Year 2003 by competitive pressures and the
current weakness in the global economy; however, commercial revenues for the
fourth quarter strengthened as the result of shipments of $650,000 to a major
sprayer/washer manufacturer. Increased direct military shipments of field
support parts for existing systems and strong shipments of control devices
related to the Tactical Quiet Generator (TQG) programs resulted in record
military revenues of $7,386,144 for Fiscal Year 2003. Raymond B. Wood, Senior
Vice President and Director of Government Operations and Marketing, commented,
"We have completed an extraordinary year for the Company. In support of recent
military deployment, the Company has responded to the demand with on-time
shipments while achieving its highest level of production ever for its military
products."
The market for the Company's Fire Shield(r) products continued to develop
during Fiscal Year 2003. The Company shipped Fire Shield Power Surge Strips, a
new product, to approximately 620 Wal-Mart Stores, Inc. In addition, Fire
Shield licensed technology generated royalties of approximately $50,000 during
the fiscal year. Fire Shield product sales and royalties currently represent
approximately 2% of the Company's total revenues. The Company believes that
its patented Fire Shield technology represents its most significant opportunity
for growth.
The fourth quarter dividend of $.015 per share will be paid on April 25, 2003
to shareholders of record on March 31, 2003. The Company paid dividends of
$.045 per share for Fiscal Year 2003.
TRC is an internationally recognized leader in electrical safety products that
prevent electrocution and electrical fires and protect against serious injury
from electrical shock. Based on its core technology in ground fault sensing,
products are designed to meet the needs of the consumer, commercial and
industrial markets worldwide. The Company also supplies power monitors and
control equipment to the United States Military and its prime contractors.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Some of the statements in this report constitute forward-looking
statements, within the meaning of the Private Securities Litigation Reform Act
of 1995 and the Securities Exchange Act of 1934. These statements are related
to future events, other future financial performance or business strategies,
and may be identified by terminology such as "may," "will," "should,"
"expects," "scheduled," "plans," "intends," "anticipates," "believes,"
"estimates," "potential," or "continue," or the negative of such terms, or
other comparable terminology. These statements are only predictions. Actual
events as well as results may differ materially. In evaluating these
statements, you should specifically consider the factors described throughout
this report. We cannot be assured that future results, levels of activity,
performance or goals will be achieved.
Comparative Operating Results
Three Months Ended Twelve Months Ended
3/31/2003 3/31/2002 3/31/2003 3/31/2002
Operating revenues $ 5,355,518 $ 3,981,533 $17,761,936 $16,684,285
Income before taxes $ 496,537 $ 159,601 $ 1,424,329 $ 294,471
Net income $ 367,242 $ 98,843 $ 1,014,791 $ 200,360
Basic earnings per share $ .07 $ .02 $ .19 $ .04
Weighted average number
of common shares
outstanding 5,440,370 5,437,497 5,438,381 5,437,497
Diluted earnings per share $ .07 $ .02 $ .19 $ .04
Weighted average number
of common and equivalent
shares outstanding 5,554,020 5,449,515 5,482,450 5,457,896
Dividends paid $ .015 $ .01 $ .045 $ .04
Net income $ 367,242 $ 98,843 $ 1,014,791 $ 200,360
Interest expense - 7,624 1,153 79,337
Income taxes 129,295 60,758 409,538 94,111
Depreciation 199,962 234,936 857,374 897,236
Amortization 119,390 86,957 445,021 380,737
EBITDA $ 815,889 $ 489,118 $ 2,727,877 $ 1,651,781
Note: EBITDA refers to earnings before interest, income taxes, depreciation
and amortization. The Company wishes to present its EBITDA results as an
indication of its liquidity and should not be interpreted as earnings.
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