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T.J.T., Inc. Reports Third Quarter Results for Fiscal Year 2008

EMMETT, Idaho-(Business Wire)-July 18, 2008 - T.J.T., Inc. (the Company), (Pink Sheets: AXLE), a major supplier of axles, tires, and set-up supplies to the manufactured housing industry, announced a net loss of $136,000, or $.03 per diluted share, for the third quarter of fiscal year 2008. The Company reported net income of $294,000 for the same period in fiscal 2007. The net loss for the nine months ended June 30, 2008 is $622,000 compared to income of $377,000 in the same nine month period a year ago. The loss in both periods is primarily due to a sharp decline in axle and tire gross margin and increased SG&A expense.

Sales decreased 19 percent in the three month period ending June 30, 2008 as compared to the same three month period a year ago. The decrease is due to a sharp decline of $659,000 in the sale of axles and tires, and a decline of $304,000 in the sales of accessories, as shipments of manufactured homes declined 21 percent in the Company's market area. Sales are down almost 10 percent for the nine month period ending June 30, 2008 as compared to the same nine month period a year ago. Both axle and tire sales and accessories sales declined in the first nine months of fiscal 2008 compared to the same period in 2007, 5 percent and 20 percent, respectively. As a result of the current economic environment, typical seasonal increases in the manufactured home industry overall did not occur as expected.

Gross profit declined in both the three and nine month periods of 2008 compared to the same periods in 2007, primarily as a result of the axle and tire business segment. Axle and tire margins declined to approximately 20 percent in both periods as compared to 29 percent in 2007, as a result of lower selling prices and higher purchase costs of used axles and tires. Accessories gross margin increased by approximately 3 percentage points in both the three and nine month periods when compared to 2007.

Consolidated selling, general, and administrative (SG&A) expense increased $36,000 and $348,000 during the three and nine month periods, respectively, when compared to the same 2007 periods. Increases in both periods are largely due to increased legal expenses as well as expenses associated with the Ladder Lift Systems, L.L.C. joint venture. Operations of Ladder Lift Systems, L.L.C. are consolidated within the financial statements for the Company. The Company has reduced its workforce by 17 percent since September 2007 and has closed the TJT Realty L.L.C. office effective July 1, 2008.

Terrence Sheldon, President and Chief Executive Officer of the Company, noted that, "Historically, demand for axles and tires has increased in our 3rd quarter. In 2008, the historical increase did not materialize. The Company is re-evaluating strategies implemented throughout 2008 to weather the soft market that is expected to continue at least through the end of our fiscal year. We are continuously evaluating our liquidity needs by closely monitoring inventory levels and managing our line of credit."

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, Washington, California, and Colorado, and serves 14 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 financial information can be found at www.pinksheets.com, or you may contact:

Larry B. Prescott

Senior Vice President and Chief Financial Officer

T.J.T., Inc.

(208) 365-5321 -0- *T T.J.T., INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) June 30 Sept. 30 2008 2007 ———- ———— Current assets: Cash and cash equivalents $ 44 $ 1,834 Accounts receivable (net of allowances and discounts of $39 and $16) 1,086 990 Current portion of notes receivable 13 122 Inventories 6,046 4,946 Prepaid expenses and other current assets 49 30 Income tax receivable 307 5 Deferred tax asset 48 46 ———- ———— Total current assets 7,593 7,973 Property, plant and equipment, net of accumulated depreciation 786 868 Notes receivable, net of current portion 21 49 Real estate held for investment 931 906 Other assets 407 342 Deferred tax asset 102 29 ———- ———— Total assets $ 9,840 $ 10,167 ======= ======== Current liabilities: Line of credit $ 294 $ - Accounts payable 524 602 Accrued liabilities 498 394 Income tax payable - 78 ———- ———— Total current liabilities 1,316 1,074 Deferred income and other noncurrent obligations 16 26 ———- ———— Total liabilities 1,332 1,100 Non-controlling interest 54 4 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 outstanding 5 5 Capital surplus 5,845 5,832 Retained earnings 2,604 3,226 ———- ———— Total shareholders' equity 8,454 9,063 ———- ———— Total liabilities, shareholders' equity, and non-controlling interest $ 9,840 $ 10,167 ======= ======== *T -0- *T T.J.T., INC. CONSOLIDATED STATEMENTS OF OPERATION (Unaudited) (Dollars in thousands except per share amounts) Three Months Ended Nine Months Ended June 30 June 30 ———————————- ———————————- 2008 2007 2008 2007 —————- —————- —————- ————— Sales (net of returns and allowances): Axles and tires $ 2,838 $ 3,497 $ 8,426 $ 8,891 Accessories and siding 1,148 1,452 3,112 3,871 —————- —————- —————- ————— Total sales 3,986 4,949 11,538 12,762 Cost of goods sold Axles and tires 2,287 2,489 6,739 6,249 Accessories and siding 763 1,007 2,081 2,732 —————- —————- —————- ————— Total cost of goods sold 3,050 3,496 8,820 8,981 —————- —————- —————- ————— Gross profit 936 1,453 2,718 3,781 Selling, general and administrative expenses 1,190 1,154 3,818 3,470 —————- —————- —————- ————— Operating income (254) 299 (1,100) 311 Interest income 3 23 28 72 Investment property income - 157 15 157 Undistributed equity interest in joint venture income - (24) - 47 Rental income 2 4 5 16 Other income - 1 11 - —————- —————- —————- ————— Income before non- controlling interest and taxes (249) 460 (1,041) 603 Non-controlling interest loss 12 5 36 5 —————- —————- —————- ————— Income before taxes (237) 465 (1,005) 608 Income taxes (101) 171 (383) 231 —————- —————- —————- ————— Net income $ (136) $ 294 $ (622) $ 377 =========== =========== =========== ========== Net income per common share: Continuing operations Basic $ (.03) $ .06 $ (.14) $ .08 Diluted $ (.03) $ .06 $ (.14) $ .08 Weighted average shares outstanding: Basic 4,532,862 4,532,862 4,532,862 4,518,745 Diluted 4,562,750 4,611,203 4,585,359 4,613,859 *T -0- *T T.J.T., INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the nine months ended June 30, 2008 2007 ———— ———- Cash flows from operating activities: Net income $ (622) $ 377 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 171 168 Loss (gain) on sale of assets (11) (157) Undistributed equity earnings in joint venture - (48) Stock compensation 13 25 Non-controlling interest 50 5 Change in accounts receivables (96) 65 Change in inventories (1,100) (759) Change in prepaid expenses and other current assets (19) (93) Change in accounts payable (78) 134 Change in taxes (455) 166 Change in other assets and liabilities 33 (748) ———— ———- Net cash used by operating activities (2,114) (865) Cash flows from investing activities: Purchases of property, plant and equipment (124) (109) Investment property purchases (27) (68) Sale of land held for investment - 174 Issuance of notes receivable (32) (2) Repayments received on notes receivable 169 4 Proceeds from sale of assets 44 4 ———— ———- Net cash provided by investing activities 30 3 ———— ———- Cash flows from financing activities: Proceeds from line of credit 294 - ———— ———- Net cash provided by financing activities 294 - ———— ———- Net decrease in cash and cash equivalents (1,790) (862) Cash and cash equivalents at October 1 1,834 2,574 ———— ———- Cash and cash equivalents at June 30 $ 44 $1,712 ======== ======= Supplemental information: Income taxes paid $ - $ 64 Issuance of note receivable for sale of fixed assets 10 5 Value of stock received into treasury as payment to exercise options - 14 *T

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