T.J.T., Inc. Reports Income of $.12 per Share for its First Quarter of Fiscal Year 2006
EMMETT, Idaho--Feb. 2, 20060, 2006--T.J.T., Inc. (the Company), (Pink Sheets:AXLE) -- T.J.T., Inc. today reported increased sales and substantially higher income for the first quarter ending December 31, 2005.Sales for the Company's first quarter ending December 31, 2005, were $6.1 million. Axle and tire sales rose 24 percent while accessories and siding sales declined by 1%. The sales increase is primarily a result of an 11 percent increase in axles and tires sold and market driven price increases. The Company sold more higher priced new tires during the quarter as compared to the same quarter in 2004. Gross profit increased $912,000 as a result of higher sales volume and gross profit margin increased to 32 percent from 20 percent a year ago.
The Company's net income was $540,000 or $.12 per share compared to a net loss of $67,000 or $.01 per share in the same quarter a year ago. Net income rose primarily due to higher gross margin which resulted in a $799,000 increase in the Company's operating income and a $181,000 increase of income contributed by the Company's Joint Venture as compared to the same quarter in 2004.
"The Company's improved earnings performance is in large part a result of higher demand creating a shortage of supply, which drove selling prices higher. The Company took preemptive action to increase inventories early in this cycle," said Terrence Sheldon, President and Chief Executive Officer of T.J.T. "Securing inventories of used axles and tires, at good prices, combined with higher sales volumes had a very positive effect on our gross profit margins." Mr. Sheldon went on to say, "Production of manufactured homes in the Company's market remained strong during the quarter and we expect sales performance in 2006 to continue to increase over 2005."
Established in 1977, T.J.T. is a major provider of recycled axles and tires to the manufactured housing industry. The Company operates recycling facilities in Idaho, Washington, California, and Colorado, and serves 13 western states. In addition to the recycling business, T.J.T. also sells aftermarket products to manufactured housing, recreational vehicle, and residential markets.
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, competition, and 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
2005 2005
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Current assets:
Cash and cash equivalents $1,930 $1,551
Accounts receivable (net of allowances and
discounts of $104 and $81) 910 1,425
Current portion of notes receivable 35 44
Inventories 3,482 3,072
Prepaid expenses and other current assets 79 19
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Total current assets 6,436 6,111
Property, plant and equipment, net of
accumulated depreciation 790 758
Notes receivable, net of current portion 298 298
Real estate held for investment 221 221
Investment in joint venture 1,106 969
Other assets 241 243
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Total assets $9,092 $8,600
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Current liabilities:
Accounts payable $ 630 $ 671
Accrued liabilities 522 $ 695
Income tax payable 109 17
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Total current liabilities 1,261 1,383
Deferred income and other noncurrent obligations 60 54
Deferred tax liability 116 48
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Total liabilities 1,437 1,485
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 5,795
Retained earnings 1,855 1,315
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Total shareholders' equity 7,655 7,115
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Total liabilities and shareholders' equity $9,092 $8,600
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See accompanying notes to financial statements.
T.J.T., INC.
STATEMENTS OF OPERATION (Unaudited)
(Dollars in thousands except per share amounts)
For the three months ended December 31, 2005 2004
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Sales (net of returns and allowances):
Axles and tires $ 4,747 $ 3,813
Accessories and siding 1,430 1,441
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Total sales 6,177 5,254
Cost of goods sold
Axles and tires 3,206 3,190
Accessories and siding 992 997
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Cost of goods sold 4,198 4,187
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Gross profit 1,979 1,067
Selling, general and administrative expenses 1,342 1,229
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Operating income (loss) 637 (162)
Interest income 29 16
Undistributed equity interest in joint venture
income 216 35
Rental income 7 4
Other income 4 1
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Income (loss) before taxes 893 (106)
Income taxes (benefit) 353 (39)
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Net income (loss) $ 540 $ (67)
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Net income (loss) per common share
Basic and diluted:
Continuing operations $ 0.12 $ (0.01)
---------- ----------
Net income (loss) per common share $ 0.12 $ (0.01)
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Weighted average shares outstanding 4,504,939 4,504,939
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See accompanying notes to financial statements.
T.J.T., INC.
STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For the three months ended December 31, 2005 2004
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Cash flows from operating activities:
Net income (loss) $ 540 $ (67)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 44 42
Gain on sale of assets (4) (1)
Undistributed equity earnings in joint venture (216) (35)
Change in accounts receivables 515 297
Change in inventories (410) (162)
Change in prepaid expenses and other current assets (60) 54
Change in accounts payable (41) (73)
Change in taxes 177 (39)
Change in other assets and liabilities (183) (336)
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Net cash provided (used) by operating activities 362 (320)
Cash flows from investing activities:
Purchases of property, plant and equipment (76) (32)
Repayments received on notes receivable 9 4
Proceeds from sale of assets 4 1
Distributions from joint venture 80 -
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Net cash provided (used) by investing activities 17 (27)
Net change in cash and cash equivalents 379 (347)
Cash and cash equivalents at October 1 1,551 843
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Cash and cash equivalents at December 31, $1,930 $ 496
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Supplemental information:
Income taxes paid $ 193 $ -
See accompanying notes to financial statements.