Exhibit 99.1
TVI Corporation
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7100 Holladay Tyler Road, Suite 300 o Glenn Dale, Maryland 20769
Tel: 301-352-8800 o Fax: 301-352-8818
TVI Corporation Third Quarter Sales Increase 135%
Operating Income Increases 188%
GLENN DALE, MD -- November 5, 2003 -- TVI Corporation (OTC BB: TVIN), today
announced that sales increased 135% to $7.2 million for the third quarter ended
September 30, 2003, from $3.0 million for the third quarter of 2002. Operating
income increased 188% to $2.3 million for the third quarter of 2003, compared to
$0.8 million for the same period last year. TVI Corporation is a leading
supplier of rapid deployment shelters and chemical/biological decontamination
systems for the military, public health, and first response agencies.
Sales increased 204% to $19.6 million for the nine months ended September 30,
2003, compared to $6.5 million for the same period last year. Operating income
increased 368% to $6.1 million for the first nine months of 2003, from $1.3
million for the same period last year.
Net income for the third quarter of 2003 was $1.4 million or $0.051 per basic
share and $0.048 per fully diluted share, compared to $0.8 million or $0.030 per
basic share and $0.027 per fully diluted share for the third quarter of 2002.
Net income for first nine months of 2003 was $3.8 million or $0.139 per basic
share and $0.128 per fully diluted share, compared to $1.3 million or $0.050 per
basic share and $0.046 per fully diluted share for the same period last year.
Operating income margins increased to 32% for the third quarter of 2003 from 26%
for the third quarter of 2002 and increased to 31% for the first nine months of
2003 from 20% for the first nine months of 2002.
During the third quarter, the Company generated $1.2 million in operating cash
flow and cash totaled $4.4 million at September 30, 2003. TVI Corporation
continues to operate with no bank debt.
At the end of the third quarter, TVI's backlog was approximately $5.2 million
that included orders received from commitments from the State of Washington, the
State of California, the District of Columbia, and the Department of Defense.
TVI currently has a backlog in excess of $7.3 million.
"We are pleased with our progress this year in revenue growth and
profitability," stated Rick Priddy, CEO of TVI Corporation. "We have sold our
decontamination equipment in 12 states and 6 countries so far this year, and
expect more by year end. We will continue to market our shelters,
decontamination systems and recently introduced isolation systems to public
health and first response agencies around the world. The market for our
equipment has grown tremendously since the events of September 11th.. "Our
fundamental business and growth strategies are producing significant results,
and we are enthusiastic about our growth prospects for 2004 and beyond. The
financial, technical and human investments we have made in manufacturing
capacity and infrastructure, and sales and marketing have already delivered
substantial gains, while positioning our business for future growth. Our
commitment is to keep health care providers and first responders equipped with
the latest technology in case of a natural disaster or terrorist incident."
TVI announced today that it has retained a financial public relations firm to
provide comprehensive shareholder and investor relations services. As the
Company's strategic shareholder communications advisor, Mike Frank Associates,
LLC, will work closely with TVI management to develop a comprehensive investor
relations program to increase awareness of the Company throughout the investment
community.
"We are proud of our technological and financial accomplishments and are
embarking on a proactive campaign to educate the investment community about our
achievements and growth strategies going forward," stated TVI CEO, Rick Priddy.
"Mike Frank Associates will play an important role in helping develop and
deliver the TVI message to our shareholders and the financial community at
large. Our goal is to increase our awareness, drive shareholder value and trade
on a widely recognized national exchange."
About TVI Corporation:
TVI Corporation, located in Glenn Dale, Maryland, is a leading supplier of rapid
deployment shelters and chemical/biological decontamination systems for the
military, public health, and first response agencies. TVI is a primary source to
the military for thermal targets and thermal decoys. TVI's stock trades on the
OTC Bulletin Board under the symbol "TVIN."
The TVI designation is a service mark of TVI Corporation. All other company and
product names mentioned above are trade names and/or trademarks of their
respective owners.
Information contained in this press release constitutes forward-looking
statements within the meaning of the securities laws and involves expectations,
beliefs, plans, intentions or strategies regarding the future. These statements
may be identified by the use of forward-looking words or phrases such as
"should", "believes", expects", "might result", and others. These
forward-looking statements involve risks and uncertainties and are not
guarantees of future performance, as actual results could differ materially from
our current expectations. Such risks and uncertainties include achieving order
and sales levels to fulfill revenue expectations; our ability to respond to
changes in the counter-terrorism, military, public safety, and first responder
communities; adverse changes in governmental regulations; expected costs or
charges, certain of which may be outside the control of the Company; the time
and costs involved in the marketing and promotion for our products; the possible
cancellation of existing orders for our products; general economic and business
conditions; and competitive factors in our markets and industry generally.
Numerous other factors could cause or contribute to such differences, including,
but not limited to, those set forth in the Company's Annual Report to
Stockholders, 10-KSB, 10-QSB, and other SEC filings. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as
to the date of the press release. We assume no obligation to update any such
forward-looking statements.
For more information concerning TVI, please visit us at: www.tvicorp.com.
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Contact: TVI Corporation, Glenn Dale
Richard Priddy, CEO 301-352-8800
Tom Plunkett, VP of Finance 301-352-8800
Mike Frank 201-659-0101
mike@mikefrankassociates.com
TVI CORPORATION
STATEMENT OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS EDNED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
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NET SALES 7,207 3,062 19,645 6,462
COST OF SALES 3,256 1,511 9,023 3,381
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GROSS PROFIT 3,951 1,551 10,622 3,081
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,675 761 4,505 1,774
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OPERATING INCOME 2,276 790 6,117 1,307
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OTHER INCOME (EXPENSE) 6 (3) 16 (5)
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INCOME BEFORE INCOME TAXES 2,282 787 6,133 1,302
PROVISION FOR INCOME TAX EXPENSE 877 0 2,364 0
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NET INCOME 1,405 787 3,769 1,302
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BASIC EARNINGS PER COMMON SHARE 0.051 0.030 0.139 0.050
BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES 27,284 26,624 27,198 26,110
OUTSTANDING
DILUTED EARNINGS PER COMMON SHARE 0.048 0.027 0.128 0.046
DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND 29,484 28,991 29,473 28,301
EQUIVALENTS OUTSTANDING
TVI CORPORATION
BALANCE SHEET
(DOLLARS IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2003 2002
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(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,373 1,615
Accounts receivable 5,772 2,964
Inventories 1,790 887
Deferred tax assets 0 1,358
Prepaid Expenses & Other current assets 262 111
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Total Current Assets 12,197 6,935
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PROPERTY,PLANT AND EQUIPMENT
Property,plant and equipment,net 638 153
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OTHER ASSETS
Patents,net 104 88
Other assets 31 24
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Net Other Assets 135 112
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TOTAL ASSETS 12,970 7,200
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable and accrued interest 0 0
Current portion of long term debt 0 0
Accounts payable 648 580
Accrued liabilities 2,148 302
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Total Current Liabilities 2,796 882
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Long term debt,net of current portion 0 0
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TOTAL LIABILITIES 2,796 882
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STOCKHOLDERS' EQUITY
Preferred stock 53 53
Common stock 273 269
Additional paid in capital 12,458 12,376
Accumulated deficit (2,610) (6,380)
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TOTAL STOCKHOLDERS' EQUITY 10,174 6,318
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 12,970 7,200
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