TVI Corporation Announces Third-Quarter 2005 Financial Results; Government Spending Environment Remains Challenging; Improved Outlook for the Fourth Quarter.GLENN DALE, Md. -- TVI TVI Televisão Independente (Portuguese TV Channel) TVI Technical Vocational Institute (Albuquerque) TVI Teacher of the Visually Impaired TVI Television Interference TVI Tutored Video Instruction Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TVIN TVIN Thames Valley Investment Network (UK) ), a global supplier of rapidly deployable first responder first responder First response personnel Emergency medicine A person employed in the public sector–EMT, fire fighter, police, volunteer EMS–whose duties include provision of immediate medical care in the event of an emergency; FRs have basic emergency systems for homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States , hospitals, police and fire departments, the military and public health agencies, today announced its financial results for the third quarter ended September September: see month. 30, 2005. Third-Quarter 2005 Results --Revenue decreased to $7.0 million from $9.3 million for the third quarter of 2004 and $7.6 million in the second quarter of 2005. --Net income was $1.0 million, or $0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $1.5 million, or $0.05 per diluted share, reported for the third quarter of 2004, and $1.1 million, or $0.03 per diluted share reported for the second quarter of 2005. --Operating income was $1.8 million, compared with $2.2 million for the third quarter of 2004 and $1.7 million in the second quarter of 2005. --Cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaled $15.0 million at September 30, 2005 compared with $13.0 million at December December: see month. 31, 2004. --Gross profit margins improved to 57.1% in the third quarter of 2005 from 50.1% in the third quarter of 2004 and 52.8% in the second quarter of 2005. --Operating margins increased to 25.7% in the third quarter of 2005 versus 24.2% in the third quarter of 2004 and 22.8% in the second quarter of 2005. Comments on Third-Quarter Results "The slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in first responder purchasing activity continued to affect TVI's revenues during the third quarter," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a V. Priddy, President and Chief Executive Officer of TVI Corporation. "The slowdown among first responder agencies occurred at both the state and local levels as organizations awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. further standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting protocols and directives from the Department of Homeland Security Noun 1. Department of Homeland Security - the federal department that administers all matters relating to homeland security Homeland Security executive department - a federal department in the executive branch of the government of the United States and the Federal Emergency Management Agency The Federal Emergency Management Agency (FEMA) is the federal agency responsible for coordinating emergency planning, preparedness, risk reduction, response, and recovery. The agency works closely with state and local governments by funding emergency programs and providing technical (FEMA FEMA, n.pr See Federal Emergency Management Agency. ). In addition, virtually all third-quarter spending ceased in the aftermath of the hurricanes that struck the Gulf region as first responder agencies shifted their energies and resources to disaster relief efforts." "The government response to the hurricanes brought national attention to FEMA's difficulties in releasing Homeland Security funds, which has hindered TVI's sales in the past two quarters. In the near-term, however, attention continues to be focused on recovery from the hurricanes. TVI was awarded three contracts late in the third quarter to assist with first responder efforts in the Gulf region. FEMA, the National Guard and the American Red Cross American Red Cross: see Red Cross. awarded the Company contracts totaling approximately $2.8 million, which included a variety of TVI products." "While sales of our decontamination decontamination /de·con·tam·i·na·tion/ (de?kon-tam-i-na´shun) the freeing of a person or object of some contaminating substance, e.g., war gas, radioactive material, etc. de·con·tam·i·na·tion n. , surge capacity and infection control lines of business did not meet our expectations in the third quarter, we began to see an increasing interest in these products due to rising concerns over the Avian flu avian flu: see influenza. H5N1 virus that has spread from Asia to Europe," Priddy continued. "We believe the President's recent request for more than $4 billion for bio-defense activities at the Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Health and Human Services, HHS (HHS HHS Department of Health and Human Services. ) to improve local and state public health systems will translate into increased demand for TVI infection control products. We anticipate that there will be a more integrated approach that involves a number of state agencies in coordinating a proactive response to an Avian flu emergency." SafetyTech(TM) Acquisition In a separate news release, TVI Corporation today announced that it has acquired privately held SafetyTech(TM) International, Inc., a leader in the design, development and manufacture of Powered Air Purifying pu·ri·fy v. pu·ri·fied, pu·ri·fy·ing, pu·ri·fies v.tr. 1. To rid of impurities; cleanse. 2. To rid of foreign or objectionable elements. 3. Respirators (PAPRs) for Chemical, Biological, Radiological radiological pertaining to radiology. radiological diagnosis see radiological diagnosis. mobile radiological apparatus x-ray machines that can be moved but are not portable because of their weight. and Nuclear (CBRN CBRN Chemical, Biological, Radiological, and Nuclear CBRN Caribbean Basin Radar Network ) protection. Under the terms of the merger agreement, TVI acquired SafetyTech International, Inc. for an initial purchase price of approximately $16.9 million, consisting of approximately equal payments of cash and TVI common stock. TVI expects the acquisition to be accretive in the first full quarter of combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
Business Outlook "As we approach the end of 2005, we are encouraged by our prospects," said Priddy. "Federal spending dollars and disaster preparation has increased our current backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. to the highest level in the past 18 months. Renewed customer interest in our broad array of products is beginning to build. State agencies, many of whom contributed their decontamination equipment to the hurricane response in the Gulf, are looking to restock re·stock tr.v. re·stocked, re·stock·ing, re·stocks To furnish new stock for; stock again. Verb 1. restock - stock again; "He restocked his land with pheasants" and reorder re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. products. Our IRAMs products continue to generate additional sales in the military market." "While we have yet to receive National Institute for Occupational Safety and Health National Institute for Occupational Safety and Health, n.pr an institute of the Centers for Disease Control and Prevention that is responsible for assuring safe and healthful working conditions and for developing standards of safety and health. (NIOSH NIOSH National Institute for Occupational Safety & Health, see there NIOSH Recommendations for Safety & Health Standards Agent NIOSH REL*/OSHA PEL† Health effects ) approval for our filter canister products, we remain positive about the outlook for this business, particularly in light of the SafetyTech acquisition," Priddy said. "We continue to anticipate receiving NIOSH approval for our filter canister products before year-end, and discussions with OEMs are promising. We remain in discussions with the U.S. military for a potential multi-million dollar filter canister contract. In addition, we have begun the submission process for approval of our filter canisters in Europe." Conference Call Information Richard V. Priddy, TVI Corporation's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, and George J. Roberts, CFO See Chief Financial Officer. and Senior Vice President will host a conference call today at 10:00 a.m. ET. To participate in the call, please dial (719) 457-2692 or (800) 310-1961. To listen to the webcast, visit the Company's website at www.tvicorp.com prior to the event's broadcast. Interested parties unable to listen to the live call may access an archived version of the call on TVI's website. The playback Playback could mean:
About TVI Corporation TVI Corporation, located in Glenn Dale, Maryland
Glenn Dale is a census-designated place (CDP) in Prince George's County, Maryland, United States. The population was 12,609 at the 2000 census. , is a global supplier of rapidly deployable first responder systems for homeland security, hospitals, police and fire departments, the military and public health agencies. The Company designs, fabricates and markets products and systems both through distributors and directly to end-users and OEMs. These systems include chemical and biological decontamination systems, infection control systems, and powered air respirator respirator /res·pi·ra·tor/ (res´pi-ra?ter) ventilator (2). cuirass respirator see under ventilator. systems for individuals. The Company's core systems are fabric shelter structures, which employ the Company's proprietary articulating frame. The Company also sells a line of thermal products, which includes targets, IFF 1. (file format) IFF - Interchange File Format. 2. IFF - Identify friend or foe (radar). 3. (mathematics, logic) iff - if and only if, i.e. necessary and sufficient. (Identification Friend or Foe The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ) devices, beacons and markers, and decoys. During the past several years, TVI's product line has expanded to include Chem/Bio Isolation systems for hospitals and first responders, trailerized first responder products, crime scene investigation Crime scene investigation may refer to:
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. For more information concerning TVI, please visit the Company at: www.tvicorp.com. This reference to the TVI website is an active textual tex·tu·al adj. Of, relating to, or conforming to a text. tex  tu·al·ly adv. reference and the contents of the site
are not part of this press release."Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Information contained in this press release constitutes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act of 1995 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", "anticipates", "believes", "expects", "might result", "estimates" 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 ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. revenue expectations; expected costs or charges, certain of which may be outside our control; the time and costs involved in the research, development, marketing and promotion for our products; the possible cancellation or non-fulfillment of existing orders or distributor commitments for our products; our ability to respond to product and other changes in the counter-terrorism, military, public safety and first responder communities; adverse changes in governmental regulations; our ability to maintain and manage our growth; difficulties in integrating the operations, technologies and products of any businesses we may acquire; 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, periodic reports, registration statements and other filings made with the Securities and Exchange Commission. 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, whether as a result of new information, future events or otherwise.
TVI CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE-MONTHS ENDED SEPTEMBER 30, 2005 and 2004
(all data in thousands, except per share data)
(Unaudited)
2005 2004
------- -------
NET SALES $7,042 $9,260
COST OF SALES 3,020 4,620
------- -------
GROSS PROFIT 4,022 4,640
------- -------
OPERATING EXPENSES
Selling, general and administrative expenses 1,913 2,141
Research and development expenses 300 257
------- -------
Total operating expenses 2,213 2,398
------- -------
OPERATING INCOME 1,809 2,242
INTEREST AND OTHER INCOME, NET 69 17
------- -------
INCOME BEFORE INCOME TAXES 1,878 2,259
PROVISION FOR INCOME TAXES 835 788
------- -------
NET INCOME $1,043 $1,471
------- -------
EARNINGS PER COMMON SHARE - BASIC $0.034 $0.050
------- -------
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 30,254 29,524
------- -------
EARNINGS PER COMMON SHARE - DILUTED $0.033 $0.048
------- -------
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 31,734 30,567
------- -------
TVI CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE-MONTHS ENDED SEPTEMBER 30, 2005 and 2004
(all data in thousands, except per share data)
(Unaudited)
2005 2004
---------- ----------
NET SALES $23,532 $28,091
COST OF SALES 10,781 14,012
---------- ----------
GROSS PROFIT 12,751 14,079
---------- ----------
OPERATING EXPENSES
Selling, general and administrative expenses 5,952 5,792
Research and development expenses 865 725
---------- ----------
Total operating expenses 6,817 6,517
---------- ----------
OPERATING INCOME 5,934 7,562
INTEREST AND OTHER INCOME, NET 201 45
---------- ----------
INCOME BEFORE INCOME TAXES 6,135 7,607
PROVISION FOR INCOME TAXES 2,456 2,803
---------- ----------
NET INCOME $3,679 $4,804
---------- ----------
EARNINGS PER COMMON SHARE - BASIC $0.123 $0.166
---------- ----------
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
BASIC 29,935 28,892
---------- ----------
EARNINGS PER COMMON SHARE - DILUTED $0.118 $0.1574
---------- ----------
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
DILUTED 31,214 30,513
---------- ----------
TVI CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2005 and DECEMBER 31, 2004
(all data in thousands, except per share data)
September December
30, 31,
2005 2004
----------- ----------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $15,011 $13,054
Accounts receivable less allowance for
doubtful accounts 5,706 4,418
Inventories 3,175 1,829
Deferred income taxes 151 227
Other current assets 777 506
----------- ----------
Total current assets 24,820 20,034
----------- ----------
PROPERTY, PLANT AND EQUIPMENT, NET 3,184 2,506
----------- ----------
OTHER ASSETS
Goodwill 554 554
Intangible assets, net 548 148
Other assets 48 48
----------- ----------
Total other assets 1,150 750
----------- ----------
TOTAL ASSETS $29,154 $23,290
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, trade $1,908 $1,073
Accrued expenses 2,862 1,857
----------- ----------
Total current liabilities 4,770 2,930
----------- ----------
TOTAL LIABILITIES 4,770 2,930
----------- ----------
MINORITY INTEREST 28 0
----------- ----------
STOCKHOLDERS' EQUITY
Preferred stock 0 0
$1 par value; 1,200 shares authorized, -0-
issued and outstanding
Common stock 301 298
$0.01 par value; 98,800 shares authorized,
30,004 and 29,771 shares issued and
outstanding in 2005 and 2004, respectively.
Additional paid in capital 14,947 14,633
Retained earnings 9,108 5,429
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 24,356 20,360
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $29,154 $23,290
----------- ----------
TVI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE-MONTHS ENDED SEPTEMBER 30, 2005 and 2004
(all data in thousands, except per share data)
(Unaudited)
2005 2004
-------- -------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $3,679 $4,804
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 482 198
Provision for doubtful accounts 69 35
Provision for warranty expense (317) (169)
Stock-based compensation 90 0
Changes in assets and liabilities:
(Increase) in accounts receivable (1,357) (2,466)
(Increase) decrease in inventories (1,569) 250
(Increase) decrease in other current assets (285) 57
Increase in accounts payable 835 373
Increase in accrued expenses 1,322 25
-------- -------
Net cash provided by operating activities 2,949 3,107
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets (421) (243)
Purchases of property, plant and equipment (916) (1,385)
-------- -------
Net cash used in investing activities (1,337) (1,628)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock 317 428
Minority interest in joint venture 28 0
-------- -------
Net cash provided by financing activities 345 428
-------- -------
NET INCREASE IN CASH 1,957 1,907
Cash and cash equivalents at beginning of year 13,054 7,592
-------- -------
Cash and cash equivalents at end of interim period $15,011 $9,499
-------- -------
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