T.J.T., Inc. Posts Higher Earnings in Second Quarter
EMMETT, Idaho--May 1, 20044, 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, posted net income of $0.0l per share for the second quarter ended March 31, 2004, compared to a loss of $0.03 per share in the same quarter a year ago.Improved financial results in the quarter occurred as sales declined 5 percent to $4.3 million from $4.6 million in the 2003 same quarter. The comparable quarter last year included $782,000 of sales from the company's Phoenix, Arizona, location which was closed in June 2003. Sales at the remaining locations, however, were stronger, increasing 14 percent, or $548,000.
Gross profit, as a percentage of sales, rose 6 percent to 25 percent, fueled by lower cost of goods sold. Higher gross profit, lower selling, general and administrative expense, and income from non-operating sources resulted in net income of $64,000, or $0.01 per share, compared to a loss of $155,000, or $0.03 per share, in the year-ago quarter.
"Operating improvements at three of our locations in the past six months is contributing to positive results of the company," said Terrence Sheldon, president and chief executive officer of T.J.T. "We are continuing to find ways to offset the soft manufactured housing market which reported 4 percent fewer home shipments in our market area for the quarter as compared to the same period a year ago."
For the six months ended March 31, 2004, sales of $8.7 million declined 8 percent from $9.5 million due to the closure of the Phoenix, Arizona, location which contributed $1.4 million to sales in the same 2003 period. Net income of $119,000, or $0.03 per share, improved significantly from a loss of $149,000, or $0.03 per share, a year ago. The gain was attributable to higher gross profit, lower selling, general and administrative expenses and increased income from non-operating sources.
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 eleven 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.
STATEMENTS OF OPERATION
(Dollars in thousands except per-share amounts)
Three Months Ended Six Months Ended
March 31, March 31,
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Sales (net of returns and
allowances):
Axles and tires $3,414 $3,638 $6,740 $7,425
Accessories and siding 923 933 1,974 2,064
---------- ---------- ---------- ----------
Total sales 4,337 4,571 8,714 9,489
Cost of goods sold
Axles and tires 2,636 3,098 5,228 6,180
Accessories and siding 618 624 1,339 1,424
---------- ---------- ---------- ----------
Total cost of goods
sold 3,254 3,722 6,567 7,604
---------- ---------- ---------- ----------
Gross profit 1,083 849 2,147 1,885
Selling, general and
administrative expenses 1,094 1,141 2,122 2,179
---------- ---------- ---------- ----------
Operating income (loss) (11) (292) 25 (294)
Interest income 11 12 25 25
Investment property income (2) 23 29 23
Income from joint venture 79 - 78 -
Rental income 22 4 33 6
Other income 10 8 10 8
---------- ---------- ---------- ----------
Income (loss) before
taxes 109 (245) 200 (232)
Income taxes (benefit) 45 (90) 81 (83)
---------- ---------- ---------- ----------
Net income (loss) $ 64 $ (155) $ 119 $ (149)
========== ========== ========== ==========
Net income (loss) per
common share
Basic and fully diluted:
Continuing operations $ .01 $ (.03) $ .03 $ (.03)
---------- ---------- ---------- ----------
Net income (loss) $ .01 $ (.03) $ .03 $ (.03)
========== ========== ========== ==========
Weighted average shares
outstanding 4,504,939 4,504,939 4,504,939 4,504,939
========== ========== ========== ==========
T.J.T., INC.
BALANCE SHEETS
(Dollars in thousands)
Mar. 31 Sept. 30
2004 2003
------------- ------------
Current assets:
Cash and cash equivalents $ 983 $1,072
Accounts receivable (net of allowance for
doubtful accounts of $17 and $68) 965 1,336
Notes receivable 91 38
Inventories 2,605 2,566
Prepaid expenses and other current assets 153 107
------------- ------------
Total current assets 4,797 5,119
Property, plant and equipment, net of
accumulated depreciation 715 594
Notes receivable 313 323
Notes receivable from related parties 70 89
Real estate held for investment 318 341
Investment in joint venture 530 452
Other assets 173 174
Deferred tax asset 369 450
------------- ------------
Total assets $7,285 $7,542
============= ============
Current liabilities:
Accounts payable $ 680 $ 864
Accrued liabilities 354 549
------------- ------------
Total current liabilities 1,034 1,413
Deferred income and other noncurrent
obligations 81 79
------------- ------------
Total liabilities 1,115 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 5,789 5,788
Retained earnings 376 257
------------- ------------
Total shareholders' equity 6,170 6,050
------------- ------------
Total liabilities and shareholders'
equity $7,285 $7,542
============= ============
T.J.T., INC.
STATEMENTS OF CASH FLOWS (unaudited)
(Dollars in thousands)
For the six months ended
March 31,
--------------------------
2004 2003
------------- ------------
Cash flows from operating activities:
Net income (loss) $ 119 $ (149)
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 89 120
(Gain) loss on sale of assets (39) (32)
Equity earnings in joint venture (78) -
Stock compensation 1 -
Change in receivables 372 (106)
Change in inventory (39) (647)
Change in prepaid expenses and other
current assets (46) (2)
Change in accounts payable (184) 234
Change in taxes 81 (84)
Change in other assets and
liabilities (192) (34)
------------- ------------
Net cash provided (used) by
operating activities 84 (700)
Cash flows from investing activities:
Additions to property, plant and
equipment (210) (48)
Proceeds from sale of assets 10 8
Issuance of notes receivable (10) -
Payments on notes receivable 26 46
Land purchased for investment (25) -
Sale of land purchased for investment 36 99
------------- ------------
Net cash provided (used) by investing
activities (173) 105
------------- ------------
Net decrease in cash and cash equivalents (89) (595)
Cash and cash equivalents at October 1 1,072 767
------------- ------------
Cash and cash equivalents at March 31 $ 983 $ 172
============= ============
Supplemental information:
Interest paid $ 1 $ 1
Sale of land by issuance of note
receivable 35 120