Exhibit 99
TVI Corporation
________________________________________________________________
7100 Holladay Tyler Road, Suite 300 o Glenn Dale, Maryland 20769
Tel: 301-352-8800 o Fax: 301-352-8818
TVI Corporation Second Quarter Sales Increase 51%
Operating Income Increases 36%
GLENN DALE, MD -- August 5, 2004 -- TVI Corporation (OTC BB: TVIN), today
announced that sales increased 51% to $10.2 million for the second quarter ended
June 30, 2004, compared to $6.8 million for the same period last year. Operating
income increased 36% to $2.7 million for the three months ended June 30, 2004,
from $2.0 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 51% to $18.8 million for the first six months of 2004, compared
to $12.4 million for the same period in 2003. Operating income increased 39% to
$5.3 million for the first half of 2004, from $3.8 million for the first half of
2003.
Net income increased 40% to $1.7 million or $0.060 per basic share and $0.057
per diluted share for the second quarter of 2004, compared to $1.2 million or
$0.045 per basic share and $0.042 per diluted share for the same period last
year. Net income increased 44% to $3.4 million or $0.120 per basic share and
$0.113 per diluted share for the six month period ended June 30, 2004, compared
to $2.4 million or $0.087 per basic share and $0.080 per diluted share for the
same period last year.
Gross margins (gross profit as a percentage of net sales) were 48% for the
second quarter of 2004, compared to 50% for the first half of 2004, 51% for the
second quarter of 2003 and 52% for the full year of 2003. The slight decline in
gross margins was due primarily to a change in allocation of facilities,
occupancy and insurance costs, which increased overhead costs. In 2003 these
costs were charged to General and Administrative expenses.
Operating margins were 27% for the second quarter of 2004, compared to 28% for
the first half of 2004, 30% for the second quarter of 2003 and 30% for the full
year of 2003. The operating margin decline was due primarily to increased
expenditures on product development and the integration of CAPA into TVI's
operations.
TVI Corporation continues to improve its cash position and operate with no
long-term debt. During the first half of the year the Company generated $3.6
million in cash flow from operations. The Company invested $1.6 million of this
in fixed and intangible assets. Cash increased $2.7 million for the first half
of 2004. Cash at June 30, 2004 was $10.3 million.
"TVI plans to use its significant cash position and cash from operations to
expand into complimentary areas of our growing market segments," stated Rick
Priddy, CEO of TVI Corporation. "We have a considerable customer base throughout
the world and understand the need for first responder systems and have developed
products to meet the requirements of hospitals' in-patient isolation and surge
capacity. We have already seen results from our CAPA acquisition and it is our
mission to grow as a world-class homeland security systems provider through
leadership in developing and supplying rapidly deployable first responder
systems for hospitals, fire departments, police and military."
Orders received, but not shipped through the last week of July 2004, were
approximately $7 million. The Homeland Security budget for 2004 is expected to
grow in the 25% to 35% range and TVI expects sales growth in this year to match
the industry's growth rate.
"We continue to see large follow-on orders for decontamination systems and
hospital related shelters from existing customers," Priddy stated. "We are also
encouraged from the number of agencies that have standardized on our platform in
recent months. Many of these standardizations are accompanied by small initial
orders, however, they set the stage for larger orders for decon systems,
hospital surge capacity shelters and patient isolation systems."
The Company will host a conference call at 5:00 PM (EDT) today, August 5, 2004,
to discuss the Company's second quarter results. The call will be hosted by Rick
Priddy. Investors can listen to the call by dialing (877) 692-2592 (Domestic) or
(973) 582-2700 (International) or logging onto:
Real Player Live HTTP: //orion.calleci.com/servlet/estreamgetevent?id=4096&FOLDER=WEBSTREAM
Windows Media Live HTTP: //orion.calleci.com/servlet/estreamgetevent?id=4098&FOLDER=WEBSTREAM
The conference call may include "forward-looking statements," as described
below. A web replay will be available for two months on the archive web sites
noted below. No other replay will be available.
Real Player Archive HTTP: //orion.calleci.com/servlet/estreamgetevent?id=4097&FOLDER=WEBSTREAM
Windows Media Archive HTTP: //orion.calleci.com/servlet/estreamgetevent?id=4099&FOLDER=WEBSTREAM
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 also 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.
Contact: TVI Corporation, Glenn Dale, Maryland
Richard Priddy, CEO 301-352-8800
Mike Frank, Investor Relations 201-659-0101
mike@mikefrankassociates.com
TVI CORPORATION
STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES 10,238 6,784 18,831 12,438
COST OF SALES 5,316 3,292 9,392 5,766
--------- --------- --------- ---------
GROSS PROFIT 4,922 3,492 9,439 6,672
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,189 1,489 4,119 2,831
--------- --------- --------- ---------
OPERATING INCOME 2,733 2,003 5,320 3,841
--------- --------- --------- ---------
OTHER INCOME (EXPENSE) 13 5 28 10
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 2,746 2,008 5,348 3,851
INCOME TAXES 1,013 774 1,933 1,487
--------- --------- --------- ---------
NET INCOME 1,733 1,234 3,415 2,364
========= ========= ========= =========
EARININGS PER COMMON SHARE - BASIC 0.060 0.045 0.120 0.087
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC 28,729 27,230 28,520 27,155
EARNINGS PER COMMON SHARE - DILUTED 0.057 0.042 0.113 0.080
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - DILUTED 30,397 29,328 30,342 29,439
TVI CORPORATION
BALANCE SHEET
(DOLLARS IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
------------ ------------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 10,315 7,592
Accounts receivable 4,297 4,214
Inventories 2,549 2,028
Deferred tax assets 386 386
Prepaid expenses & other current assets 419 352
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Total Current Assets 17,966 14,572
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PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net 1,638 638
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OTHER ASSETS
Goodwill 523 --
Patents, net 94 109
Other Assets 48 24
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Net Other Assets 665 133
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TOTAL ASSETS 20,269 15,343
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 1,698 1,145
Accrued liabilities 2,328 2,058
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Total Current Liabilities 4,026 3,203
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TOTAL LIABILITIES 4,026 3,203
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STOCKHOLDERS' EQUITY
Stock 344 332
Additional paid in capital 13,497 12,821
Retained earnings (deficit) 2,402 (1,013)
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TOTAL STOCKHOLDERS' EQUITY 16,243 12,140
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 20,269 15,343
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