T.J.T., Inc. Reports Second Quarter Earnings
10 May 2000
T.J.T., Inc. Reports Second Quarter Earnings
EMMETT, Idaho--May 10, 2000--T.J.T., Inc. today announced a net loss of $457,000, or $0.10 per share, for the second quarter ending March 31, 2000 compared to a loss of $121,000, or $0.03 per share, in the same period a year ago.The company attributed the decline, in part, to lower sales, reflecting the reduced start rate for manufactured housing in its market region.
"Sales for the quarter were $5.8 million, a 33 percent decrease from $8.6 million in the 1999 quarter," said Terrence Sheldon, president and chief executive officer of T.J.T. "Our axle and tire sales dropped 42 percent from a year ago, which is consistent with lower manufactured housing sales in the Western part of the United States."
Sheldon emphasized that while sales were lower, T.J.T. made progress on increasing its market share during the quarter by signing a service agreement with Oakwood/Schult Homes Corporation to supply axles and tires to six manufacturing factories located in Arizona, California, Colorado and Oregon. "We expect this new agreement with Oakwood/Schult to positively affect sales in the second half of the fiscal year," he said.
Gross margin for the second quarter was 14.6 percent compared to 16.8 percent for the same period a year ago. Excluding real estate, gross margin was 15.4 percent, representing a 1.3 percent decline from second quarter 1999.
"With reduced sales volumes of axles and tires, we have been slow to receive the benefit of lower raw material costs which continued to depress margins," Sheldon said. "As sales increase during the summer building season and we deplete higher-cost inventories, we should see a positive impact on gross margin."
Sheldon noted that the company has obtained an additional source of used axles and tires for use in its recycling activities through an agreement with Homes America which has 22 dealers located throughout Nevada, Washington, Utah, Idaho and Wyoming.
In an ongoing effort to lower operating costs and increase efficiencies, T.J.T. reduced selling, general and administrative expenses for the second quarter of fiscal 2000 by $60,000, or 3.7 percent below the same period a year ago.
T.J.T., INC.
STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
Three Months Ended Six Months Ended
March 31, March 31,
2000 1999 2000 1999
Sales (net of returns
and allowances):
Axles and tires $3,988 $6,894 $8,375 $13,092
Accessories and siding 1,646 1,738 3,568 3,839
Investment property 188 4 334 8
--------- --------- --------- ---------
Total sales 5,822 8,636 12,277 16,939
Cost of goods sold 4,969 7,186 10,274 14,030
--------- --------- --------- ---------
Gross profit 853 1,450 2,003 2,909
Selling, general and
administrative expenses 1,552 1,612 3,167 2,973
--------- --------- --------- ---------
Operating loss (699) (162) (1,164) (64)
Interest income 7 15 27 30
Interest expense (40) (18) (74) (22)
Other income (expense) 25 (2) 25 (2)
--------- --------- --------- ---------
Loss before taxes (707) (167) (1,186) (58)
Income taxes (benefit) (250) (46) (418) 14
--------- --------- --------- ---------
Net loss $(457) $(121) $(768) $(72)
========= ========= ========= =========
Net loss per
common share $(.10) $(.03) $(.17) $(.01)
Weighted average
shares outstanding 4,504,939 4,836,943 4,528,396 4,840,425
========= ========= ========= =========
T.J.T., INC.
BALANCE SHEETS
(Dollars in thousands)
March 31, Sept. 30,
2000 1999
Current assets:
Cash and cash equivalents $59 $129
Accounts receivable and
notes receivable (net of
allowances for doubtful
accounts of $27 and $35) 1,566 1,925
Inventories 4,250 4,021
Income taxes receivable 428 100
Prepaid expenses and other
current assets 90 90
-------- --------
Total current assets 6,393 6,265
Property, plant and equipment,
net of accumulated depreciation 1,630 1,862
Notes receivable 572 572
Real estate held for investment 698 600
Deferred charges and other assets 222 268
Goodwill 1,702 1,771
-------- --------
Total assets $11,217 $11,338
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Current liabilities:
Line of credit $2,024 $1,159
Accounts payable 542 657
Accrued liabilities 462 495
-------- --------
Total current liabilities 3,028 2,311
Deferred credits and other
noncurrent obligations 161 160
Deferred income taxes 29 29
-------- --------
Total liabilities 3,218 2,500
-------- --------
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 2,206 2,974
Treasury stock (349,800 and
279,800 shares at cost) (393) (322)
-------- --------
Total shareholders' equity 7,999 8,838
-------- --------
Total liabilities and
shareholders' equity $11,217 $11,338
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