T.J.T., Inc. Net Income and Earnings Rise in First Quarter 2004
EMMETT, Idaho--Feb. 1, 20043, 2004--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, today reported stronger net income and earnings per share for the first quarter ended December 31, 2003. The improved results, achieved on lower sales compared to the same quarter a year ago, were driven primarily by increased operating efficiencies.Sales of $4.4 million declined 11 percent from $4.9 million in the same quarter a year ago. The decrease reflected the closure in June 2003 of the company's Phoenix, Arizona location which in the 2003 first quarter contributed $607,000 in net sales. Sales from ongoing operations rose 2 percent, partially offsetting the decrease.
Cost of goods sold dropped 15 percent in the quarter to $3.3 million from $3.9 million in the same fiscal year 2003 period, increasing gross profit 3 percent quarter over quarter. Higher gross profit, combined with lower selling, general and administrative expense, boosted net income to $55,000, or $0.012 per share, from $6,000, or $.001 per share, in the comparable year ago quarter.
"Income from operations improved as a result of the elimination of lower margin sales at the now closed Arizona location as well as increased operating efficiency at the company's California and Colorado facilities," said Terrence Sheldon, president and chief executive officer of T.J.T. "We're also pleased that sales at our ongoing facilities rose in the first quarter which historically is one of our toughest, due to seasonal weather conditions."
Established in 1977, T.J.T. is a wholesale distributor of O.E.M. parts and aftermarket materials to the manufactured housing industry and the largest recycler and supplier of manufactured home axles and tires in the western United States. The company operates recycling facilities in Idaho, Washington, California, and Colorado and serves customers in thirteen Western states.
This release contains certain forward-looking statements, which are based on management's current expectations including, but not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values and competition changes in legislation or regulations, and other economic, competitive, governmental, regulatory and technological factors affecting the company's operations, pricing, products and services.
T.J.T., INC.
BALANCE SHEETS
(unaudited)
(Dollars in thousands)
Dec. 31, Sept. 30,
2003 2003
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Current assets:
Cash and cash equivalents $770 $1,072
Accounts receivable (net of allowance
for doubtful accounts of $73
and $68) 847 1,336
Notes receivable 47 38
Inventories 2,611 2,566
Prepaid expenses and other current
assets 109 107
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Total current assets 4,384 5,119
Property, plant and equipment, net of
accumulated depreciation 706 594
Notes receivable 320 323
Notes receivable from related parties 79 89
Real estate held for investment 341 341
Investment in joint venture 451 452
Other assets 174 174
Deferred tax asset 414 450
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Total assets $6,869 $7,542
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Current
liabilities:
Accounts payable $377 $864
Accrued liabilities 312 549
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Total current liabilities 689 1,413
Deferred income and other noncurrent
obligations 75 79
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Total liabilities 764 1,492
Shareholders' equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized; 0 shares issued
and outstanding -- --
Common stock, $.001 par value;
10,000,000 shares authorized;
4,504,939 shares issued and
outstanding 5 5
Capital surplus 5,788 5,788
Retained earnings 312 257
------ ------
Total shareholders' equity 6,105 6,050
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Total liabilities and
shareholders' equity $6,869 $7,542
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T.J.T., INC.
STATEMENTS OF OPERATION (unaudited)
(Dollars in thousands except per share amounts)
For the three months ended December 31, 2003 2002
---- ----
Sales (net of returns and
allowances):
Axles and tires $3,326 $3,787
Accessories and siding 1,051 1,131
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Total sales 4,377 4,918
Cost of goods sold:
Axles and tires 2,592 3,082
Accessories and siding 721 800
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Total cost of goods sold 3,313 3,882
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Gross profit 1,064 1,036
Selling, general and administrative expenses 1,028 1,038
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Operating income (loss) 36 (2)
Interest income 14 12
Investment property income 31 --
Income (loss) from joint venture (1) --
Rental income 11 2
Other income -- 1
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Income (loss) before taxes 91 13
Income taxes (benefit) 36 7
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Net income (loss) $55 $6
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Net income (loss) per common share
Basic and fully diluted:
Continuing operations $.012 $.001
------ ------
Net income (loss) $.012 $.001
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Weighted average shares outstanding 4,504,939 4,504,939
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T.J.T., INC.
STATEMENTS OF CASH FLOWS (unaudited)
(Dollars in thousands)
For the three months ended December 31, 2003 2002
---- ----
Cash flows from operating activities:
Net income $55 $ 6
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 51 59
(Gain) loss on sale of assets (31) --
Equity earnings in joint venture 1 --
Change in receivables 489 (64)
Change in inventory (45) (390)
Change in prepaid expenses and other
current assets (2) 61
Change in accounts payable (487) 231
Change in taxes 36 7
Change in other assets and liabilities (241) (75)
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Net cash provided (used) by operating
activities (174) (165)
Cash flows from investing activities:
Additions to property, plant and
equipment (163) (11)
Payments on notes receivable 10 23
Land purchased for investment (11) --
Sale of land purchased for investment 36 --
----- -----
Net cash provided (used) by investing
activities (128) 12
----- -----
Net increase (decrease) in cash and cash
equivalents (302) (153)
Cash and cash equivalents at October 1 1,072 767
----- -----
Cash and cash equivalents at December 31 $770 $614
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Supplemental information:
Interest paid $ 1 $ 1