T.J.T., Inc. Lowers Losses 50 Percent in Second Quarter
EMMETT, Idaho--May 3, 2001--T.J.T., Inc. (OTCBB:AXLE), a recycler of axles and tires and wholesale distributor of O.E.M. parts and aftermarket material to the manufactured housing industry, lowered losses by 50 percent in the second quarter ended March 31, 2001 compared to the same period a year ago.It was the second consecutive quarter that losses improved despite sluggish market conditions and a decline in sales.
During the quarter, sales were $4.8 million, compared to $5.6 million in the same period a year ago, a decline of 15 percent. Gross profit margin improved in the quarter to 16.3 percent of sales compared to 15.4 percent a year ago and slightly higher than 16.2 percent in the first quarter of fiscal 2001.
A 20 percent decrease in sales and general administrative expenses contributed significantly to paring the company's net loss in the second quarter to $241,000, or $0.05 per share, from $457,000, or $0.10 per share, in the same quarter a year ago. Cost savings included a scaling back of activities at T.J.T.'s plant in Colorado during the quarter.
"Weaker sales reflect the ongoing contraction in the manufactured housing industry, "said Terrence Sheldon, president and chief executive officer of the company. "While T.J.T cannot control industry demand, we are making solid progress in reducing our costs of operation to offset this industry-wide problem."
Sheldon said that the company is stronger from a cash flow position. For the six months ended March 31, 2001, operating activities provided $523,000 of cash flow. "Lower operating costs and improved liquidity make T.J.T. operationally stronger and ready to take advantage of opportunities when the industry does turn around," he noted.
For the six months ended March 31, 2001, the company reduced losses to $464,000, or $0.10 per share, down from $768,000, or $0.17 per share, in the prior year same period. A 21 percent -- or $650,000 -- savings in sales and general administrative expenses offset a sales decrease to $10.3 million, down 14 percent from $11.9 million in the same 2000 period.
T.J.T., INC.
STATEMENTS OF OPERATION
(Dollars in thousands except per share amounts)
Three Months Ended Six Months Ended
March 31, March 31,
2001 2000 2001 2000
------ ------ ------ ------
Sales (net of returns and
allowances):
Axles and tires $ 3,479 $ 3,988 $ 7,359 $ 8,375
Accessories and siding 1,332 1,646 2,968 3,568
------ ------ ------ ------
Total sales 4,811 5,634 10,327 11,943
Cost of goods sold
Axles and tires 3,088 3,524 6,523 7,399
Accessories and siding 938 1,241 2,127 2,671
------ ------ ------ ------
Total cost of goods
sold 4,026 4,765 8,650 10,070
------ ------ ------ ------
Gross profit 785 869 1,677 1,873
Selling, general and
administrative expenses 1,240 1,552 2,517 3,167
------ ------ ------ ------
Operating loss (455) (683) (840) (1,294)
Interest income 19 7 40 27
Interest expense 35 40 74 74
Investment property income
(expense) 101 (16) 148 130
Other income 4 25 10 25
------ ------ ------ ------
Loss before taxes (366) (707) (716) (1,186)
Income tax benefit 125 250 252 418
------ ------ ------ ------
Net loss $ (241) $ (457) $ (464) $ (768)
====== ====== ====== ======
Net loss per common share $ (.05) $ (.10) $ (.10) $ (.17)
Weighted average shares
outstanding 4,504,939 4,504,939 4,504,939 4,528,396
T.J.T., INC.
BALANCE SHEETS
(Dollars in thousands)
March 31, Sept. 30,
2001 2000
-------- --------
Current assets:
Cash and cash equivalents $ 43 $ 54
Accounts receivable and notes receivable
(net of allowances for doubtful accounts
of $82 and $8) 1,458 1,893
Inventories 3,472 3,816
Income taxes receivable 8 296
Prepaid expenses and other current assets 33 43
-------- --------
Total current assets 5,014 6,102
Property, plant and equipment, net of
accumulated depreciation 1,155 1,320
Notes receivable 351 330
Notes receivable from related parties 228 237
Real estate held for investment 601 649
Deferred charges and other assets 152 192
Deferred tax asset 673 420
Goodwill 828 867
-------- --------
Total assets $ 9,002 $ 10,117
Current liabilities:
Line of credit $ 1,129 $ 1,787
Accounts payable 784 699
Accrued liabilities 357 435
-------- --------
Total current liabilities 2,270 2,921
Deferred credits and other noncurrent
obligations 149 149
Total liabilities 2,419 3,070
-------- --------
Shareholders' equity:
Common stock, $.001 par value;
10,000,000 shares authorized;
4,854,739 shares issued and outstanding 5 5
Common stock warrants -- 113
Capital surplus 6,181 6,068
Retained earnings 790 1,254
Treasury stock (349,800 shares at cost) (393) (393)
-------- --------
Total shareholders' equity 6,583 7,047
-------- --------
Total liabilities and shareholders'
equity $ 9,002 $ 10,117
======== ========