T.J.T., Inc. Reports Results for Fiscal Year 2012
T.J.T., Inc. Reports Results for Fiscal Year 2012
EAGLE, Idaho--(BUSINESS WIRE)-- T.J.T., Inc. (the Company), (Pink Sheets: AXLE) - T.J.T., Inc., a major supplier of axles, tires, and set-up supplies to the manufactured housing industry, announced a net loss of $1,149,000, or $.25 per diluted share, for fiscal year 2012. Higher margins offset by lower sales volumes along with increases in SG&A contributed to the net loss. The Company incurred a net loss of $340,000, or $.08 per diluted share, for the fourth quarter.
Net sales decreased 57 percent to $821,000 in the final quarter of 2012 as compared to the same quarter in 2011. Net sales declined 34 percent to $4,004,000 during the twelve months ended September 30, 2012 compared to 2011. Net sales of axles and tires decreased 73 percent and 44 percent in the three and twelve month periods ending September 30, 2012 compared to the same periods in 2011, respectively. Prior to its closing in February 2011, the Washington facility contributed sales of $299,000. The Colorado facility contributed sales of $97,000 of unprocessed materials in the three month period and $761,000 total sales in the twelve month period of 2011. Lower axle and tire net sales in 2012 periods were a result of lower sales volumes partially offset by increased selling prices. Net sales of accessories decreased 31 percent in the fourth quarter of 2012 compared to the same 2011 quarter, and declined 21 percent during the twelve months of 2012 as compared to 2011.
Gross margin increased to 32 percent during the fourth quarter of 2012 compared to 27 percent in the same quarter of 2011. The Company's gross margin for the twelve month period in 2012 increased to 30 percent compared to 22 percent in 2011.
Consolidated selling, general and administrative (SG&A) expense decreased 10 percent in the final quarter of 2012 compared to the same quarter in 2011. SG&A for 2012 increased 7 percent, or $162,000, compared to the same twelve month period in 2011. SG&A declined in the fourth quarter as a result of decreased headcount. The SG&A increase in the twelve month period was driven by temporary increases in headcount, mainly the addition of full time Corporate Executive Officers, as well as the start-up costs associated with the Company's new North Dakota facility.
In October 2012, the Company formed T.J.T. Transit, LLC, a wholly-owned subsidiary of the Company, designed primarily for the transport of Manufactured Homes, Modular Buildings, and Man Camps. It will begin operations early in 2013, in the western US.
The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The ability of the Company to continue as a going concern is dependent upon the success of these actions and the economic recovery of the industry as a whole. There can be no assurance that the Company will be successful in accomplishing its objectives. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
As a result of the cost reduction efforts, the Company will no longer provide quarterly financial reports and audited annual financial reports to the public. The fiscal 2012 Annual Report should be considered the Company's last public report.
Established in 1977, T.J.T., Inc. is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho and California and serves nine 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. Any forward-looking statement speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward-looking statement.
Copies of this report and additional historical financial information can be found at www.otcmarkets.com, or you may contact:
Nicole L. Glisson |
Senior Vice President, Chief Financial Officer and Treasurer |
T.J.T., Inc. |
(208) 472-2500 |
T.J.T., INC. | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
At September 30, | 2012 | 2011 | |||||||||||||
(Unaudited) | (Audited) | ||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 697 | $ | 1,875 | |||||||||||
Accounts receivable (net of allowances and discounts of $17 and $111) | 237 | 337 | |||||||||||||
Current portion of notes receivable | 4 | 74 | |||||||||||||
Inventories | 886 | 1,189 | |||||||||||||
Prepaid expenses and other current assets | 30 | 181 | |||||||||||||
Total current assets | 1,854 | 3,656 | |||||||||||||
Property, plant and equipment, net of accumulated depreciation | 759 | 317 | |||||||||||||
Notes receivable, net of current portion | 25 | 29 | |||||||||||||
Real estate held for sale | 270 | 474 | |||||||||||||
Real estate held for investment | 378 | 167 | |||||||||||||
Other assets | 33 | 5 | |||||||||||||
Total assets | $ | 3,319 | $ | 4,648 | |||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | 235 | $ | 244 | |||||||||||
Accrued liabilities | 201 | 286 | |||||||||||||
Deferred income | 0 | 69 | |||||||||||||
Total current liabilities | 436 | 599 | |||||||||||||
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; 4,532,862 shares outstanding | 5 | 5 | |||||||||||||
Capital surplus | 5,875 | 5,872 | |||||||||||||
Retained earnings | (2,963 | ) | (1,812 | ) | |||||||||||
2,917 | 4,065 | ||||||||||||||
Treasury shares, at cost, 81,113 and 46,735 shares, respectively | (34 | ) | (16 | ) | |||||||||||
Total shareholders' equity | 2,884 | 4,049 | |||||||||||||
Total liabilities and shareholders' equity | $ | 3,319 | $ | 4,648 | |||||||||||
T.J.T., INC. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATION | |||||||||||||||||||
(Dollars in thousands except per share amounts) | |||||||||||||||||||
Year Ended | |||||||||||||||||||
September 30, | |||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||
(Unaudited) | (Audited) | (Audited) | |||||||||||||||||
Sales (net of returns and allowances): | |||||||||||||||||||
Axles and tires | $ | 2,174 | $ | 3,900 | $ | 4,963 | |||||||||||||
Accessories and siding | 1,683 | 2,132 | 2,375 | ||||||||||||||||
Other | 147 | - | - | ||||||||||||||||
Total sales | 4,004 | 6,032 | 7,338 | ||||||||||||||||
Cost of goods sold | |||||||||||||||||||
Axles and tires | 1,703 | 3,309 | 4,511 | ||||||||||||||||
Accessories and siding | 1,078 | 1,387 | 1,702 | ||||||||||||||||
Other | 28 | - | - | ||||||||||||||||
Cost of goods sold | 2,809 | 4,696 | 6,213 | ||||||||||||||||
Gross profit | 1,195 | 1,336 | 1,125 | ||||||||||||||||
Selling, general and administrative expenses | 2,523 | 2,361 | 2,643 | ||||||||||||||||
Operating loss | (1,328 | ) | (1,025 | ) | (1,518 | ) | |||||||||||||
Impairment loss on real estate | - | (154 | ) | (65 | ) | ||||||||||||||
Interest income, net of expense | 13 | 27 | 21 | ||||||||||||||||
Equity investment income | - | 32 | - | ||||||||||||||||
Rental income | 55 | 17 | 17 | ||||||||||||||||
Other income | 111 | 3 | 26 | ||||||||||||||||
Loss before taxes | (1,149 | ) | (1,100 | ) | (1,519 | ) | |||||||||||||
Income tax expense (benefit) | - | 3 | 16 | ||||||||||||||||
Net loss | $ | (1,149 | ) | $ | (1,103 | ) | $ | (1,535 | ) | ||||||||||
Net loss to common shareholders: | |||||||||||||||||||
Basic | $ | (0.25 | ) | $ | (0.24 | ) | $ | (0.34 | ) | ||||||||||
Diluted | $ | (0.25 | ) | $ | (0.24 | ) | $ | (0.34 | ) | ||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 4,532,862 | 4,532,862 | 4,532,862 | ||||||||||||||||
Diluted | 4,543,637 | 4,542,122 | 4,543,198 | ||||||||||||||||
T.J.T., INC. | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
For the year ended September 30, | 2012 | 2011 | 2010 | |||||||||||||||||
(Unaudited) | (Audited) | (Audited) | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss | $ | (1,149 | ) | $ | (1,103 | ) | $ | (1,535 | ) | |||||||||||
Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 87 | 67 | 118 | |||||||||||||||||
Impairment loss on real estate held for sale | - | 154 | 65 | |||||||||||||||||
Loss on sale of other assets held for sale | - | - | 16 | |||||||||||||||||
Gain on sale of assets | (111 | ) | - | (42 | ) | |||||||||||||||
Gain on sale of equity investment | - | (30 | ) | - | ||||||||||||||||
Equity investment earnings | - | (2 | ) | - | ||||||||||||||||
Stock compensation | 3 | 5 | 11 | |||||||||||||||||
Change in accounts receivables | 100 | 37 | 288 | |||||||||||||||||
Change in inventories | 303 | 942 | 1,249 | |||||||||||||||||
Change in prepaid expenses and other current assets | 151 | (19 | ) | (120 | ) | |||||||||||||||
Change in accounts payable | (9 | ) | 112 | (129 | ) | |||||||||||||||
Change in taxes | ||||||||||||||||||||
