RESULTS OF SECOND QUARTER 2000 OPERATIONS
The table below sets forth for the Second Quarter and First Half of 2000
and 1999 the percentage of net sales represented by certain items in the
company's Consolidated Statement of Operations.
Product sales increased in the second quarter ending June 30, 2000 to
$636,281 from $496,873 in the year ago quarter. Operating profit was
$117,419 as compared to $60,468 in 1999. Net income increased to
$223,103 in 2000 from $53,945 in 1999.
During the second quarter sales of thermal products decreased while sales
of commercial products increased. Sales of thermal products vary from
quarter to quarter depending upon when one of the large Army ranges
places its orders. Commercial products have a slightly higher margin,
and gross margin increased in 2000 to 51.3% from 47.7% in 1999.
G & A expenses increased about 10% in the quarter from a year ago. As a
percentage of revenues, G & A expenses decreased in 2000 to 33.9% from
39.3% in 1999. Due to higher margin and lower G & A expense, operating
profit increased to $117,419 or 17.9% from $60,468 or 11.7% in 1999.
Net income in second quarter 2000 includes an extraordinary item of
$102,644 from recovery of assets embezzled by a previous officer.
For the six months periods ending June 30, product sales in creased in
2000 to $1,465,962 from $821,080 in 1999. Net income increased to
$469,076 in 2000 from $180,345 in 1999.
Sales of commercial products increased substantially in 2000, to about
$900,000 from $150,000 in 1999. Increases occurred in both the Public
Safety line and the Hospitality and Promotions line. Sales of
decontamination shelters and equipment in support of the anti-terrorist
programs accounted for the increase in Public Safety sales. Sales of
shelters and signage primarily for the car seat inspection programs
accounted for the other increase. Sales of military tentage remained
flat, while sales of thermal products were down. Gross margin was 53% in
2000 as compared to 47.3% in 1999.
G & A expense increased about 25% for the first half of 2000. Due to
higher level of revenues, G & A expense dropped to 28.8% from 39.9% in
1999. Due to higher gross margin and lower G & A expense, operating
profit increased to $380,294 or 25.3% from $87,645 or 10.1% in 1999.
Net income for first half of 2000 includes an extraordinary item of
$102,644 and for 1999 an extraordinary item of $104,813. Both of these
items resulted from recovery of assets embezzled by a previous officer.
During the Second Quarter on June 29, the annual meeting of shareholders
was held. Two proposals were submitted to the shareholders for vote,
election of directors and ratification of auditor for 1999. The results
of the voting are set forth in the following table.
For Against/Abstain
Election of Directors:
Allen Bender 17,378,606 3,500
Joseph Borkoski 17,038,606 343,500
Rudy Diaz 16,958,606 423,500
Joseph Duffy 17,038,606 343,500
Mark Hammond 17,373,606 8,500
Charles Sample 17,378,606 3,500
Ratification of Daniel C.
Gilliland, CPA as auditor 17,890,842 117,000
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TVI CORPORATION
By: /s/ Allen E. Bender
Allen E. Bender, President
July 31, 2000
