T.J.T., Inc. Reports Fiscal Year, Fourth Quarter Results
13 December 2000
T.J.T., Inc. Reports Fiscal Year, Fourth Quarter Results
EMMETT, Idaho--Dec. 12, 2000--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, today reported a net loss of $820,000 for the fourth quarter and $1.7 million for the year ending September 30, 2000, reflecting continued sluggish conditions in the manufactured housing market.Sales for the fourth quarter were $7.1 million, down 15 percent from $8.3 million during the same period last year. Gross profit declined in the fourth quarter to 16 percent of sales, or $1.1 million, compared to $1.5 million, or 18 percent of sales, in the same quarter a year ago as the cost of goods increased. The lower sales and higher cost of goods, as a percentage of sales, contributed to a net loss for the quarter of $820,000, or $0.18 per share, compared to a loss of $193,000, or $.04 per share, in the fourth quarter of fiscal 1999.
The pre-tax loss for the fourth quarter was $1.1 million which was impacted by pre-tax non-cash charges of $847,000 related to impairment of assets. The pre-tax loss, excluding the impairment, was $254,000 compared to a pre-tax loss of $321,000 in the same quarter a year ago. It was determined that, under General Accounting Principles Statements of Financial Accounting Standards 121, assets attributable to the company's operations in Phoenix, Arizona and Woodland, California were impaired due to the competitive environment in those market areas and continued operating losses. The charges included the write off of goodwill of $767,000; property, plant and equipment of $64,000 and other assets of $16,000 associated with those locations which the company will continue to operate. Operational changes have been made within the past 12 months and will be closely monitored.
For the fiscal year ended September 30, 2000, T.J.T's annual sales were $26.9 million, down 22 percent from $34.6 million last year. Lower sales, combined with a 2 percent decline in gross profit and the impairment discussed above, resulted in a net pre-tax loss of $2.5 million, with $1.6 million from continuing operations and $847,000 from the impairment. The net after-tax loss was $1.7 million, or $.38 per share, as of September 30, 2000 compared to a loss of $207,000, or $.04 per share, in fiscal 1999.
"Both the market for manufactured housing and the cost of goods significantly affected our financial performance in the quarter and the full year," said Terrence Sheldon, president and chief executive officer.
"Nationwide, sales of manufactured housing were down approximately 22 percent year-over-year," he explained. "Our market position, however, remains strong as T.J.T. gained additional market share during the year." Sheldon anticipates that sales will continue at lower volumes throughout the industry during the next several months.
"While we have little control over the demand for manufactured housing, we have taken steps and will continue the effort to reduce expenses and lower our cost of procurement of used axles and tires," Sheldon noted. "During the year, selling and administrative expenses decreased by $412,000, most of which occurred in the fourth quarter."
T.J.T., INC.
STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
Three Months Ended Year Ended
Sept.30 Sept.30
--------- --------- --------- ---------
2000 1999 2000 1999
--------- --------- --------- ---------
Sales (net of returns and
allowances):
Axles and tires $ 4,981 $ 5,997 $ 18,752 $ 26,166
Accessories and siding 1,976 2,326 7,577 8,441
Investment property
income 174 22 552 35
--------- --------- --------- ---------
Total sales 7,131 8,345 26,881 34,642
Cost of goods sold 5,985 6,820 22,502 28,446
--------- --------- --------- ---------
Gross profit 1,146 1,525 4,379 6,196
Selling, general and
administrative expenses 1,394 1,753 5,957 6,369
Impairment loss 847 -- 847 --
--------- --------- --------- ---------
Operating income (loss) (1,095) (228) (2,425) (173)
Interest income 25 26 72 81
Interest expense 45 20 156 67
Other expenses (income) (14) 99 (30) 101
--------- --------- --------- ---------
Income (loss) before
taxes (1,101) (321) (2,479) (260)
Income taxes (benefit) (281) (128) (759) (53)
--------- --------- --------- ---------
Net income (loss) $ (820) $ (193) $ (1,720) $ (207)
========= ========= ========= =========
Net income (loss) per
common share $ (0.18) $ (0.04) $ (0.38) $ (0.04)
Weighted average shares
outstanding 4,504,939 4,686,905 4,506,210 4,773,731
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T.J.T., INC.
BALANCE SHEETS
(Dollars in thousands)
At September 30, 2000 1999
------ ------
Current assets:
Cash and cash equivalents $ 54 $ 129
Accounts receivable and notes
receivable (net of allowance for
doubtful accounts of $8 and $35) 1,893 1,925
Income taxes receivable 296 100
Inventories 3,816 4,021
Prepaid expenses and other current
assets 43 90
------ ------
Total current assets 6,102 6,265
Property, plant and equipment, net
of accumulated depreciation 1,320 1,862
Notes receivable 567 572
Real estate held for investment 649 600
Deferred charges and other assets 192 268
Deferred tax asset 420 --
Goodwill 867 1,771
------ ------
Total assets $10,117 $11,338
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Current liabilities:
Line of credit $ 1,787 $ 1,159
Accounts payable 699 657
Accrued liabilities 435 495
------ ------
Total current liabilities 2,921 2,311
Deferred income and other noncurrent
obligations 149 160
Deferred income taxes -- 29
------ ------
Total liabilities 3,070 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 1,254 2,974
Treasury stock (351,200 and
279,800 shares at cost) (393) (322)
Stock subscriptions receivable -- --
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Total shareholders' equity 7,047 8,838
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Total liabilities and
shareholders' equity $10,117 $11,338
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