Exhibit 99.1
Technology Research Corporation Announces Strong Third Fiscal Quarter
Results and Record Performance for the Nine-Month Period
CLEARWATER, Fla.--(BUSINESS WIRE)--Jan. 20, 2004--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 third quarter ended December 31, 2003 were
$5,805,556, compared to $4,582,284 reported in the same quarter last
year, an increase of 27% with military revenues increasing by
$958,773, commercial revenues by $255,834 and royalty income by
$8,665. Net income for the current quarter was $680,388, compared to
$311,963, for the same quarter last year, an increase of 118%. Basic
earnings were $.12 per share and diluted earnings were $.11 per share
for the current quarter compared to basic and diluted earnings of $.06
per share for the same quarter last year. The Company recorded
expenses of $137,923 in the quarter for new account setup and the
promotion of its Fire Shield(R) products in retail stores. In
addition, the Company recorded a non-recurring expense of
approximately $75,000 due to a change in its severance policy at its
Honduran subsidiary during the quarter.
The Company's operating revenues for the nine-month period ended
December 31, 2003 were $17,678,125, compared to $12,406,418 reported
in the same period of the prior year, an increase of 42%. Net income
for the nine-month period was $2,058,348, compared to $647,549, for
the same period in the prior year, an increase of 218%. Basic earnings
were $.37 per share and diluted earnings were $.36 per share for the
nine-month period compared to basic and diluted earnings of $.12 per
share for the same period of the prior year.
Mr. Wiggins commented, "The Company achieved its best performance
ever with record high revenues and net income through nine months. Our
manufacturing facilities continue to operate efficiently, and the
Company ended the quarter with $5,195,426 in cash and remained
debt-free." Mr. Wiggins added, "The outlook for the remainder of the
fiscal year continues to be positive."
For the nine-month period ended December 31, 2003, commercial
revenues increased by $1,933,095, military revenues improved by
$3,358,171 and royalty income was down by $19,559 compared to the same
period of the prior year. The increase in commercial revenues was
primarily attributed to product sales of $1,008,831 into retail stores
and $450,000 to a major sprayer/washer manufacturer. New accounts in
the Recreational Vehicle, Brand Label and Commercial Distribution
markets contributed to the remainder of the growth. Military revenues
continue to be strong due to direct military shipments of support
parts for existing systems and control devices related to the Tactical
Quiet Generator (TQG) programs. The increase in direct military
shipments is primarily the result of current U.S. military activity.
The Company continues to make progress in establishing its Fire
Shield(R) brand name. Fire Shield(R) product sales were $750,957, or
8.3% of commercial sales, for the nine-month period. In addition, the
Company recorded royalty income of $67,536 for the nine-month period
from Applica Inc., a licensee that incorporates a Fire Shield(R) cord
set on its line of Black & Decker(R) portable heaters. The Company's
patented Fire Shield(R) technology has numerous applications and
represents a significant opportunity for growth. One example is that
the Company is well-positioned to participate in the estimated $60
million annual market created by the 2002 National Electrical Code
(NEC) and the Underwriters Laboratories (UL) currently scheduled
requirement for cord fire protection on portable room air conditioners
which are manufactured after August 1, 2004. The Company's products
are currently under evaluation by a number of room air conditioner
manufacturers.
The third quarter dividend of $.015 per share will be paid on
January 23, 2004 to shareholders of record on December 31, 2003. The
Company's annual dividend is expected to be $.06 per share.
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
Unaudited
Three Months Ended Nine Months Ended
12/31/2003 12/31/2002 12/31/2003 12/31/2002
Operating revenues $ 5,805,556 4,582,284 $ 17,678,125 12,406,418
Net income before
taxes $ 939,476 442,635 $ 2,886,188 927,792
Net income $ 680,388 311,963 $ 2,058,348 647,549
Basic earnings per
share $ .12 .06 $ .37 .12
Weighted average
number of
common shares
outstanding 5,664,032 5,438,215 5,549,324 5,437,784
Diluted earnings
per share $ .11 .06 $ .36 .12
Weighted average
number of common
and equivalent
shares outstanding 5,974,485 5,449,051 5,763,281 5,453,231
Dividends declared $ 0.015 0.01 $ 0.045 0.03
Net income $ 680,388 311,963 $ 2,058,348 647,549
Interest expense - - - 1,153
Income taxes 259,088 130,672 827,840 280,243
Depreciation 194,972 192,682 623,930 657,412
Amortization - - - -
EBITDA $ 1,134,448 635,317 3,510,118 1,586,357
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.
CONTACT: Technology Research Corporation, Clearwater
Scott J. Loucks, 727-535-0572
Fax: 727-535-4828
Web Page: http://www.trci.net