T.J.T., Inc. Announces 1999 Earnings
2 December 1999
T.J.T., Inc. Announces 1999 Earnings
EMMETT, Idaho--Dec. 2, 1999--T.J.T., Inc. , a wholesale distributor of O.E.M. parts and aftermarket materials to the manufactured housing industry, announced a net annual loss of $207,000 on sales of $34.6 million, a two percent sales increase over fiscal year 1998.Annual gross profit was $6,196,000, resulting in a gross profit margin of 18 percent, which is unchanged from a year ago. The operating loss was $173,000. Due in part to an unusual bad debt expense of approximately $100,000, which has been included in other expenses, the annual net loss was $207,000. On a per share basis, the loss was $0.04 per share from income of $0.09 per share in fiscal 1998.
Sales for the fourth quarter ended September 30, 1999 decreased 12 percent to $8.3 million from $9.5 million in the same period last year. Demand for axles and tires decreased as a result of a slow down in the production of manufactured homes.
Gross profit for the quarter decreased $109,000. Gross profit margin was 18 percent, a one percent increase from a year ago. The net loss of $193,00 for the quarter was impacted by higher selling and general administrative expense and the bad debt expense. "Higher costs of raw tires and axles and higher operating cost in the Arizona and Colorado market area continued to erode earnings," said Terrence Sheldon, president and chief executive officer of TJT. "Our sales to the manufactured housing industry are expected to be in a downward trend over the next few months due to overbuilding in the manufactured housing industry. This situation is expected to continue until the excess inventory of finished homes is sold in the coming months. I am pleased with the progress we have made introducing new products to better diversify our business lines."
Mr. Sheldon concludes, "We continued to experience excessive losses in Colorado and Arizona in the fourth quarter. In October we replaced management at both locations with experienced and highly qualified managers from within our organization."
Established in 1977, T.J.T. is a wholesale distributor of OEM 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, Oregon, Colorado and Arizona and serves customers in 11 Western states.
This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, general economic conditions; changes in interest rates, deposit flows, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the company's operations, pricing, products and services.
T.J.T., INC.
BALANCE SHEETS
(Dollars in thousands)
Sept. 30, Sept. 30,
1999 1998
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Current assets:
Cash and cash equivalents $ 129 $ 204
Accounts receivable and
notes receivable 1,925 2,111
Income taxes receivable 100 --
Inventories 4,021 3,774
Prepaid expenses and other
current assets 90 517
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Total current assets 6,265 6,606
Property, plant and equipment,
net of accumulated depreciation 1,862 1,944
Notes receivable 572 348
Real estate held for investment 600 390
Deferred charges and other assets 268 326
Goodwill 1,771 1,440
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Total assets $ 11,338 $ 11,054
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Current liabilities:
Line of credit $ 1,159 $ --
Accounts payable 657 1,117
Accrued liabilities 495 809
Income taxes payable -- 3
-------- --------
Total current liabilities 2,311 1,929
Deferred credits and other
noncurrent obligations 160 136
Deferred income taxes 29 60
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Total liabilities 2,500 2,125
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Shareholders' equity:
Common stock, $.001 par value;
10,000,000 shares authorized;
4,854,739 shares issued
and outstanding 5 5
Common stock warrants 113 113
Capital surplus 6,068 6,068
Retained earnings 2,974 3,181
Treasury stock (279,800 and
10,907 shares at cost) (322) (44)
Stock subscriptions receivable -- (394)
-------- --------
Total shareholders' equity 8,838 8,929
-------- --------
Total liabilities and
shareholders' equity $ 11,338 $ 11,054
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T.J.T., INC.
STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
Three Months Ended Year Ended
September 30, September 30,
------------------ ------------------
1999 1998 1999 1998
------- ------- ------- -------
Sales (net of returns
and allowances):
Axles and tires $ 5,997 $ 6,804 $ 26,166 $ 25,816
Accessories and
siding 2,326 2,731 8,441 8,257
Investment property
income 22 -- 35 --
-------- -------- -------- --------
Total sales 8,345 9,535 34,642 34,073
Cost of goods sold 6,820 7,901 28,446 27,946
-------- -------- -------- --------
Gross profit 1,525 1,634 6,196 6,127
Selling, general and
administrative expenses 1,753 1,522 6,369 5,402
-------- -------- -------- --------
Operating income
(loss) (228) 112 (173) 725
Interest income 6 12 14 62
Income on investment
property -- 16 -- 23
Other expense 99 -- 101 --
-------- -------- -------- --------
Income (loss)
before taxes (321) 140 (260) 810
Income taxes (benefit) (128) 69 (53) 364
-------- -------- -------- --------
Net income (loss) $ (193) $ 71 $ (207) $ 446
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Net income (loss) per
common share $ (0.04) $ .01 $ (.04) $ .09
Weighted average shares
outstanding 4,686,905 4,843,832 4,773,731 4,844,704
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