Tri-S Security Corporation Announces Second Quarter 2005 Results.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- Tri-S Security 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 :TRIS TRIS tromethamine. tris (tris) 1. tromethamine. 2. tris(2,3-dibromopropyl) phosphate. ) (NASDAQ:TRISW): --Revenue exceeds $7.7 million for the second quarter of 2005, a 3.7% increase --Gross profit margin increases to 9.7% from 4.3% --Loss from operations in the second quarter of 2005 decreased by $290,000 compared to first quarter 2005 --Announcement of letter of intent to acquire a security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the firm; negotiating definitive agreement --Announcement of hiring experienced management for wholly-owned subsidiary, Paragon Systems, Inc. Tri-S Security Corporation (NASDAQ:TRIS) (NASDAQ:TRISW), a provider of contract guard services to various Federal government agencies pursuant to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts, announced today its financial results for the second quarter of 2005. Revenue for the second quarter of 2005 increased $277,000 to $7.7 million, or 3.7%, compared to revenue for the second quarter of 2004. The increase in revenue was generated primarily from a new contract which began operations in the fourth quarter of 2004 and other contractual revenue changes. Gross profit for the second quarter of 2005 was $753,000, which was an improvement of $431,000 from the second quarter of 2004. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 9.7% for the second quarter 2005 compared to 4.3% for the second quarter of 2004 and compared to 4.4% for the first quarter of 2005. Loss from operations for the second quarter of 2005 was $40,000, which was an improvement of $82,000 from the second quarter of 2004. The improvement in operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was primarily attributable to gross margin increases resulting from revenue growth and reductions in cost of revenue. The loss from operations in the second quarter of 2005 decreased by $290,000 compared to the first quarter of 2005. The net loss for the second quarter of 2005 was $133,000, or $0.04 per share, compared to $402,000, or $0.49 per share, for the second quarter of 2004. During the second quarter of 2005, the company received distributions in an aggregate amount of $455,000 with respect to its equity interest in Army Fleet Support, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a provider of logistics support for U.S. Army aviation training at Fort Rucker Fort Rucker is a U.S. Army post located mostly in Dale County, Alabama. It was named for Confederate General Edmund Rucker. The post is the primary flight training base for Army Aviation and is home to the United States Army Aviation Warfighting Center (USAAWC) and the United , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . The distributions received with respect to this equity interest are not reflected on the company's statements of operations; however, the distributions contribute significant cash to the company's operations. Recently, the company announced several significant events. On May 12, 2005, the company announced the signing of a letter of intent to acquire a security services firm that provides a full range of security and investigative services. The company is currently negotiating a definitive agreement with respect to the acquisition. On August 4, 2005, the company announced the addition of Les Kaciban as President and Mark Machi Machi may refer:
Ronald Farrell Farrell, city (1990 pop. 6,841), Mercer co., W central Pa., on the Shenango River at the Ohio line and adjoining Sharon, Pa.; inc. 1901. It is a railroad center, and its steel- and ironworks industries have declined. , Chairman and Chief Executive Officer of the company, said, "I am pleased with the developments for Tri-S during the second quarter. We were able to improve our operating margins and increase our cash flow, especially when you consider the impact of the distributions from Army Fleet Support. I am excited about the growth prospects for the business, including the acquisition we are currently pursuing and the new management talent we have added. We are continuing to pursue our strategy of growing the business organically and through acquisitions." About Tri-S Corporation Tri-S Security Corporation provides contract guard services to Federal government agencies pursuant to long term contracts. These guard services include providing uniformed and armed guards for access control, personnel protection, plant security, theft prevention, surveillance, vehicular and foot patrol, crowd control and prevention of sabotage sabotage [Fr., sabot=wooden shoe; hence, to work clumsily], form of direct action by workers against employers through obstruction of work and/or lowering of plant efficiency. Methods range from peaceful slowing of production to destruction of property. , terrorist and criminal activities. In connection with providing these services, we assume responsibility for a variety of functions, including recruiting, hiring training and supervising security guards deployed to the Federal agencies we serve. We strive to continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improve the protection we provide for their personnel, programs, resources and facilities. 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. This press release includes "forward-looking statements" within the meaning of the Federal securities laws. Forward-looking statements are commonly identified by such terms and phrases as "should", "expects", "plans", "anticipates", "believes", "estimates", "projects", and other terms with similar meaning indicating potential impact on our business. Although we believe that the assumptions upon which such forward looking statements are based are reasonable, we can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from our projections and expectations are disclosed in our filings with the Securities and Exchange Commission, including the "Risk Factors" section set forth in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2004. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to their underlying assumptions. We do not undertake to publicly update the forward-looking statements contained herein to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" actual results or changes in our expectations, whether as a result of new information, future events or otherwise. You may obtain and review our filings with the Securities and Exchange Commissions by visiting http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. .
Tri-S Security Corporation and Subsidiary
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended
June 30,
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2005 2004
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Revenues $7,745 $7,468
Cost of revenues 6,992 7,146
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Gross Profit 753 322
Selling, general and administrative
costs 793 454
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Operating Income (loss) (40) (132)
Interest income 9 2
Interest expense (108) (446)
Interest on preferred stock subject to
mandatory redemption (75) (75)
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Income (loss) before income taxes (214) (651)
Income tax expense (benefit) (81) (249)
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Net Income ($133) ($402)
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Basic net income (loss) per
common share ($0.04) ($0.49)
Diluted net income (loss) per
common share ($0.04) ($0.49)
Basic weighted average number of
common shares 3,315 828
Diluted weighted average number of
common shares 3,376 1,265
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