Tuesday September 15, 2:37 pm Eastern Time
Company Press Release
SOURCE: TVI Corporation
TVI Corporation Announces Completion of Independent
Audit for 1997
GLENN DALE, Md., Sept. 15 /PRNewswire/ -- TVI Corporation announced today that its independent audit for 1997 had
been completed and the Audit Report had been submitted to the Board of Directors. Completion of the audit enables the
Company to submit its Form KSB10 to the SEC, which will be done within the next few days.
The Company has set its Annual Meeting for Saturday, October 31st, at 10 a.m. at the corporate offices. The Proxy
Statement and Form KSB10 are scheduled to be mailed to shareholders next week. The meeting had been postponed
pending completion of the audit. Record date for entitlement to notice and vote was set at August 31.
The audited financials reflect little change from the preliminary numbers published in March 1998. A summary of financial
data for the year ending December 31, 1997 and 1996 is as follows:
1997 1996
Total Revenue $1,762,374 $2,632,802
Cost of Goods 1,285,021 1,976,832
Gross Profit 477,353 655,970
S,G,&A Expense 577,971 595,500
Operating Income (Loss) (100,618) 60,470
Other Income (Expense) 96,984 (132,773)
Net Income (Loss) (3,634) (72,303)
Shares outstanding at year end were 22,218,881 for 1997 and 22,217,981 for 1996.
The Audit Report contains a Qualified Opinion relative to the Company's ability to continue as a Going Concern for both
1996 and 1997. The Report also notes management's awareness of the problem and its initiatives intended to resolve the
problem.
In other news, the Company reported that it has been awarded an ''ordering agreement'' type contract by the Defense Supply
Center Philadelphia (DSCP) to supply shelters and trailers to the military. DSCP is a major purchasing activity for many
military products, including tents and related products. The contract does not obligate the Government to make any
purchases, but establishes an approved mechanism for any military agency to acquire the Company's products at the contract
price without further competition. The company's chief competitor was also awarded a similar contract. The Company
considers the award very important as it reflects recognition by military tent officials of the usefulness of quick erect tents
and of TVI as a leading supplier. Competition for the contract was initiated in October 1997, and a key part of the
evaluation was a site visit by and product demonstrations for a DSCP tent specialist.
The company also reported that it had received a contract from a large Army base for thermal targets valued at $213,000.
This was the first significant target contract the company had received during the past twelve months. Based upon customer
inquiries, the Company is optimistic that its sales of targets will continue over the next year.
The company noted that it had received reports indicating that two current Board members and a former board member had
recently exercised some of their incentive stock options. Messrs. Bender, Hammond, and Squires recently acquired a total
of 700,000 shares for a total payment to the Company of $35,000. Another Board member, Mr. Sample, earlier this year had
acquired 80,000 shares in open market purchases. Mr. Hammond earlier made an open market sale of 30,000 shares.
The Company also reported that it had been awarded, in federal court, ownership of 300,000 shares of common stock of
USA Access, an Internet Service Provider operating in Las Vegas, Nevada. It has a claim still pending in the Court for an
additional 200,000 shares. USA Access is a private company with no market for its stock, and the Company at this time has
not established a value for the stock. Additionally, the Company has filed suit in federal district court in Nevada seeking
repayment of $75,000 in promissory notes. The USA stock and notes were initially acquired by the Company's former
president with more than $250,000 embezzled from TVI.
Company president Allen Bender noted that completion of the 1997 audit marks the end of the long and arduous task of
rebuilding the Company's records. Financial compilations for the years 1993, 1994, and 1995 were completed in late 1997.
Audited financials for 1996 were completed in March 1998. Mr. Bender expressed confidence that every transaction
involving either cash or stock had been properly recorded. The Company will report financial results for the first six
months of 1998 in about two weeks, and is committed to timely reporting for all future periods.
TVI is a leading manufacturer of quick erect tents and thermal targets. Its common stock is traded on the OTC Bulletin
Board under the symbol TVIN. |
