Exhibit 99
FOR IMMEDIATE RELEASE
TVI Corporation First Quarter Sales Increase 52%
Operating Income Increases 41%
GLENN DALE, MD -- April 28, 2004 -- TVI Corporation (OTC BB: TVIN), today
announced that sales increased 52% to $8.6 million for the quarter ended March
31, 2004, compared to $5.7 million for the same period last year. Operating
income increased 41% to $2.6 million for the three months ended March 31, 2004,
from $1.8 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.
Net income for the first quarter of 2004 was $1.6 million or $0.056 per basic
share and $0.053 per diluted share, compared to $1.1 million or $0.042 per basic
share and $0.038 per diluted share for the same period last year.
Gross margins (gross profit as a percentage of net sales) were 53% for the first
quarter of 2004, compared to 52% for the full year 2003. Gross margins declined
from 56% in the first quarter of 2003 due to increased material and overhead
costs. Part of the increase in overhead was a change in allocation of
facilities, occupancy and insurance costs. In the first quarter of 2003 these
costs were charged to General and Administrative expenses.
Operating margins were 30% for the first quarter 2004, compared to 30% for the
full year of 2003. Compared to the first quarter of 2003, operating margins were
lower by two percentage points. The operating margin decline was due primarily
to increased expenditures on product development.
We do not expect gross margins or operating margins to change dramatically for
the full year of 2004.
TVI Corporation continues to improve its cash position and operate with no bank
debt. During the first quarter, the Company generated $1.3 million in cash flow
from operations. Cash at March 31, 2004 was $8.9 million.
At the end of the first quarter, TVI's backlog was approximately $8.2 million
that included orders received from the State of West Virginia, the Italian Civil
Protection Department, Emergency Management Australia and the Department of
Defense. TVI currently has a backlog of approximately $6.7 million. The Homeland
Security budget for 2004 is expected to grow in the 25% to 35% range and we
expect our sales growth in this period to match the industry's growth rate.
"During the first quarter, major customers placed significant follow-on orders
for decontamination systems and hospital surge capacity shelters," stated Rick
Priddy, CEO of TVI Corporation. "We expect this trend to continue as state and
national agencies determine the best way to prepare for a catastrophic event.
Accordingly, international sales have increased dramatically this year with
orders from the United Kingdom, Australia, and Italy."
"As the nuclear, biological, and chemical terror threat increases, our growth
strategy is to continue to sell decontamination systems to new and existing
customers, cross sell our infection control products and hospital surge capacity
shelters, while expanding our international marketing efforts," Priddy stated.
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Product Innovation and Leadership Since 1977
www.tvicorp.com
The Company will host a conference call at 5:00 PM (EDT) today, April 28, 2004,
to discuss the Company's first quarter results. The call will be hosted by
Richard Priddy, TVI Corporation's CEO and President. Investors can listen to the
call by dialing (800) 810-0924 (Domestic) or (913) 981-4900 (International) or
logging onto http://www.shareholder.com/tvi/medialist.cfm. The conference call
may include forward-looking statements as described below. A web replay will be
available for one year on the web site noted above. No other replay will be
available.
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. Any 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
Mike Frank, Investor Relations 201-659-0101
mike@mikefrankassociates.com
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Product Innovation and Leadership Since 1977
www.tvicorp.com
TVI CORPORATION
STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
2004 2003
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(UNAUDITED)
NET SALES 8,593 5,654
COST OF SALES 4,076 2,474
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GROSS PROFIT 4,517 3,180
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,930 1,342
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OPERATING INCOME 2,587 1,838
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OTHER INCOME (EXPENSE) 15 5
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INCOME BEFORE INCOME TAXES 2,602 1,843
INCOME TAXES 1,002 713
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NET INCOME 1,600 1,130
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BASIC EARININGS PER COMMON SHARE 0.056 0.042
BASIC WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 28,408 27,063
DILITED EARNINGS PER COMMON SHARE 0.053 0.038
DILUTED WEIGHTED AVERAGE NUMBER OF COMMON
SHARES AND EQUIVALENTS OUTSTANDING 30,402 29,552
TVI CORPORATION
BALANCE SHEET
(DOLLARS IN THOUSANDS)
MARCH 31, MARCH 31,
2004 2003
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(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 8,894 1,276
Accounts receivable 5,858 5,163
Inventories 2,724 1,615
Deferred tax assets 385 645
Prepaid expenses & other current assets 452 84
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Total Current Assets 18,313 8,783
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PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net 769 431
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OTHER ASSETS
Patents, net 100 97
Other Assets 33 24
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Net Other Assets 133 121
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TOTAL ASSETS 19,215 9,335
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 1,894 1,297
Accrued liabilities 3,445 572
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Total Current Liabilities 5,339 1,869
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TOTAL LIABILITIES 5,339 1,869
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STOCKHOLDERS' EQUITY
Stock 287 309
Additional paid in capital 13,002 12,407
Accumulated deficit 587 (5,250)
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TOTAL STOCKHOLDERS' EQUITY 13,876 7,466
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 19,215 9,335
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