T.J.T., Inc. reports the quarter ending June 30, 2005.
EMMETT, Idaho--Aug. 1, 20055, 2005--T.J.T., Inc. (the Company), (Pink Sheets:AXLE) T.J.T., Inc. today reported 141 percent higher income on 9 percent higher sales for its third quarter, as compared to a year ago.Sales were $5.7 million in the current quarter compared to $5.2 million in the same quarter a year ago. The improvement was a result of increased volumes of axle and tire sales, partially offset by a decline in the sale of dealer accessories. Sales for the nine months ended June 30, 2005 were $16.5 million compared to $13.9 million in the same period in 2004.
Gross margin was 27 percent, an increase of two percent for the quarter, as compared to the same quarter a year ago. However, margins declined two percent for the nine months, as compared to same year ago period. This decline was a result of higher axle and tire costs in the first and second quarters of fiscal 2005. "I am pleased with the profit margin performance for this quarter, as our pricing strategy has allowed us to effectively reclaim our margins," said Terrence Sheldon, President and CEO of T.J.T., Inc.
Selling, general and administrative expenses increased two percent, and 11 percent, respectively, in the current quarter and nine month periods, compared to the same periods a year ago. The increase is a result of costs related to development of the dealer accessories product line in the current quarter, and increases in performance and incentive pay programs combined with product development costs in the nine month period.
Net income after taxes increased $155,000 in the 2005 quarter as compared to the same quarter in 2004, as a result of increased sales and higher gross margins. Net income for the nine months is $352,000, or $.08 per share, compared to $229,000, or $.05 per share, for the year ago period.
Pre-tax income for the nine month period ending June 30, 2005 increased $197,000, or 52 percent, from the same period in 2004, primarily as a result of an additional $286,000 of other income being recognized in 2005 from the joint venture and the sale of fixed assets used to manufacture hanger parts.
Established in 1977, TJT is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho, Washington, California and Colorado and serves 13 western states. In addition to the recycling business, the company also sells aftermarket products to the manufactured housing industry, recreational vehicle industry and residential markets.
T.J.T., INC.
BALANCE SHEETS (Unaudited)
(Dollars in thousands)
June 30 Sept. 30
2005 2004
------ ------
Current assets:
Cash and cash equivalents $ 919 $ 843
Accounts receivable (net of allowances and discounts
of $70 and $23) 1,465 1,349
Current portion of notes receivable 149 105
Inventories 2,631 2,847
Prepaid expenses and other current assets 91 202
------ ------
Total current assets 5,255 5,346
Property, plant and equipment, net of
accumulated depreciation 763 728
Notes receivable, net of current portion 328 338
Real estate held for investment 222 224
Investment in joint venture 854 676
Other assets 243 212
Deferred tax asset 157 179
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Total assets $7,822 $7,703
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Current liabilities:
Accounts payable $ 485 $ 556
Accrued liabilities 444 640
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Total current liabilities 929 1,196
Deferred income and other noncurrent obligations 87 57
------ ------
Total liabilities 1,016 1,253
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 5,795 5,791
Retained earnings 1,006 654
------ ------
Total shareholders' equity 6,806 6,450
------ ------
Total liabilities and shareholders' equity $7,822 $7,703
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T.J.T., INC.
STATEMENTS OF OPERATION
(Dollars in thousands except per share amounts)
Three Months Ended Nine Months Ended
June 30 June 30
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Sales (net of returns
and allowances):
Axles and tires $ 4,320 $ 3,706 $ 12,542 $ 10,446
Accessories and
siding 1,360 1,524 3,926 3,498
---------- ---------- ---------- ----------
Total sales 5,680 5,230 16,468 13,944
Cost of goods sold
Axles and tires 3,205 2,889 9,958 8,117
Accessories and siding 967 1,080 2,752 2,419
---------- ---------- ---------- ----------
Total cost of
goods sold 4,172 3,969 12,710 10,536
---------- ---------- ---------- ----------
Gross profit 1,508 1,261 3,758 3,408
Selling, general and
administrative expenses 1,228 1,204 3,700 3,326
---------- ---------- ---------- ----------
Operating income
(loss) 280 57 58 82
Interest income 13 23 41 48
Investment property
income (expense) - 8 - 37
Undistributed equity
interest in joint
venture income 109 83 297 161
Rental income 9 8 17 41
Other income 14 3 166 13
---------- ---------- ---------- ----------
Income (loss)
before taxes 425 182 579 382
Income taxes (benefit) 160 72 227 153
---------- ---------- ---------- ----------
Net income (loss) $ 265 $ 110 $ 352 $ 229
========== ========== ========== ==========
Net income (loss) per
common share
Basic and fully
diluted:
Continuing
operations $ .06 $ .02 $ .08 $ .05
---------- ---------- ---------- ----------
Net income (loss) $ .06 $ .02 $ .08 $ .05
========== ========== ========== ==========
Weighted average
shares outstanding 4,504,939 4,504,939 4,504,939 4,504,939
========== ========== ========== ==========
T.J.T., INC.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the nine
months ended
June 30,
------------
2005 2004
----- -----
Cash flows from operating activities:
Net income $ 352 $ 229
Adjustments to reconcile net income to net cash
used by operating activities:
Depreciation and amortization 125 131
Change in deferred income taxes 22 153
Gain on sale of assets (166) (13)
Gain on sale of investment property 0 (29)
Equity earnings in joint venture (178) (161)
Stock compensation 4 2
Change in receivables (116) (161)
Change in inventories 73 (233)
Change in prepaid expenses and other current assets 111 (12)
Change in accounts payable (71) (124)
Change in other assets and liabilities (199) (239)
----- -----
Net cash (used) provided by operating activities (43) (457)
----- -----
Cash flows from investing activities:
Additions to property, plant and equipment (197) (284)
Proceeds from sale of assets 156 13
Issuance of notes receivable (13) (10)
Payments on notes receivable 173 180
Investment in joint venture - -
Land purchased for investment - (25)
Sale of land purchased for investment - 36
----- -----
Net cash (used) provided by investing activities 119 (90)
----- -----
Net decrease in cash and cash equivalents 76 (547)
Beginning cash and cash equivalents 843 1072
----- -----
Ending cash and cash equivalents $ 919 $ 525
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Supplemental information:
Interest paid $ - $ 1
Income taxes paid, net of refunds 180 11
Noncash transactions:
Issuance of note receivable for sale of land - 41
Issuance of note receivable for sale of hanger
inventory 143 -
Issuance of note receivable for sale of fixed assets 51 -
Gain recognized on fair market value of asset trade-in 10 -
Discount on investment property payoff - 19