<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1995 Commission File No. 0-8488
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TWENTY SERVICES, INC.
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(Exact name of Registrant as specified in is charter)
ALABAMA 63-0372577
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(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
105 Vulcan Road 35209
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(Address or principal executive offices) (Zip Code)
Registrant's telephone number, including area code (205) 945-1581
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Former name, former address, and former fiscal year, if changed since last
report.
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past ninety (90) days.
YES X NO
------- -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the period of this report.
Par Value $0.10 per share 1,283,068 shares
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TWENTY SERVICES, INC.
INDEX
Twenty Services, Inc. Financial Statement
(Unaudited)
Condensed Balance Sheets
June 30, 1995 and December 31, 1994 ................... 3
Condensed Statements of Operations
Three Months Ended June 30, 1995 and 1994
and Six Months Ended June 30, 1995 and 1994 .......... 4
Condensed Statements of Cash Flows
Six Months Ended June 30, 1995 and 1994 ............... 5
Management's Discussion and Analysis of Financial
Condition and Results of Operations ................... 6-7
Other Information ............................................... 8
Signatures ...................................................... 8
<PAGE>
TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
ASSETS 1995 1994
-------- ------------
<S> <C> <C>
Cash and temporary investment $ 274,642 $ 291,271
Marketable securities 2,446,818 2,452,966
Accrued investment interest 18,795 25,540
Finance receivables, Net 362,164 314,695
Property and equipment, Net 22,877 2,913
Other assets 28,449 46,806
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Total Assets $3,153,745 $3,134,191
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses $ 9,302 $ 10,978
Income taxes payable 16,500 90,000
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Total liabilities 25,802 100,978
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Stockholders' Equity:
Preferred stock, Cumulative, $.10 par value $ 50,511 $ 50,511
Common Stock, par value $.10 128,307 128,307
Additional paid-in capital 1,716,074 1,716,074
Retained earnings 1,241,294 1,227,389
Net unrealized gain (loss) on available-for-sale
securities 51,757 (29,068)
Less investment in Twenty Services Holding, Inc. (60,000) (60,000)
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Net Stockholders' Equity 3,127,943 3,033,213
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Total liabilities and stockholders' equity $3,153,745 $3,134,191
========== ==========
</TABLE>
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<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDING SIX MONTHS ENDING
JUNE 30, JUNE 30,
---------------------- ----------------------
1995 1994 1995 1994
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
Revenues $ 60,033 $ 26,957 $ 125,779 $ 64,813
Expenses:
General and administrative 35,318 34,947 102,467 73,013
--------- -------- -------- ---------
Income (loss) from operations 24,715 (7,990) 23,312 (8,200)
Other income:
Gain on sale of property and investments 18,490 -- 30,451 --
--------- -------- --------- ---------
Income (loss) before income taxes 43,205 (7,990) 53,763 (8,200)
Provision for income taxes 1,750 -- 4,500 --
--------- -------- --------- ---------
Net income (loss) $ 41,455 $ (7,990) $ 49,263 $ (8,200)
========= ========= ========= =========
Weighted average number of
common share outstanding 1,283,068 1,283,068 1,283,068 1,283,068
========= ========= ========= =========
Earnings (loss) per share* $ .02 $ (.01) $ .02 $ (.02)
========= ========= ========= =========
</TABLE>
* After giving effect on a pro-rata basis to anticipated preferred dividends
of $.07 per share per annum on 505,110 shares.
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<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDING
JUNE 30
----------------------
1995 1994
-------- ---------
<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 129,162 $ 44,132
Rental income 725 15,861
Other income -- 64
Cash paid employees and supplies (102,395) (79,620)
Income taxes paid (100,000) --
-------- ---------
Net cash used by operating activities ( 72,508) (19,563)
Cash flows from investing activities:
Principal collected on loans 75,679 24,243
Loans made to customers (122,500) (12,576)
Purchase of securities (461,860) --
Proceeds from sale of assets and securities 311,220 --
Principal collected on held to maturity
securities 309,682 33,915
Purchase of property and equipment (20,985) (2,461)
-------- ---------
Net cash provided by investing activities 91,236 43,121
-------- ---------
Cash flows from financing activities:
Preferred stock dividends (35,357) (35,357)
-------- ---------
Net cash used by financing activities (35,357) (35,357)
-------- ---------
Net decrease in cash (16,629) (11,799)
Cash, beginning of period 291,271 18,617
-------- ---------
Cash, end of period $ 274,642 $ 6,818
========= =========
</TABLE>
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
During the six months ended June 30, 1995, the Registrant's liquidity
decreased primarily as a result of the payment of dividends on preferred stock
and a net increase in loans to customers. The Company has no notes payable nor
long term debt and does not anticipate the need for borrowing in the near
future. The Registrant has sufficient cash and temporary cash investments to
meet its short term liquidity needs. Should long term liquidity needs exceed
cash and temporary cash investments, then the Registrant would dispose of
marketable securities as it deems appropriate. Current trends and known demands
and commitments do not create a need for liquidity in excess of the Company's
current abilities to generate liquidity.
The Company anticipates that its operating activities will continue to
use net cash flows, that its investing activities will generate positive net
cash flows and that its financing activities will continue to use cash flows.
During the first quarter of 1995, the Registrant concentrated upon (i)
collecting its loans,including those considered in determining the allowance for
loan losses and (ii) the selective extension of credit to customers and
investment of excess cash at rates commensurate with risk assumed. In addition,
the Registrant selected investments based on maximizing its return on those
investments commensurate with the risk assumed.
RESULTS OF OPERATIONS
---------------------
COMPARISON OF THE THREE (3) MONTHS PERIOD ENDED JUNE 30, 1995
WITH THE CORRESPONDING PERIOD OF 1994
The Registrant reported net income of $41,455 for the three (3) months
ended June 30, 1995 as compared to net loss of $7,990 for the corresponding
1994 period. The increase was due to a gain on the sale of property and
marketable securities of approximately $18,000 coupled with significant
increases in interest and dividend income, offset by related income taxes.
REVENUES
--------
Revenues rose from $26,957 for the three months ended June 30, 1994 to
$60,033 (a 123% increase) for the corresponding 1995 period due to approximately
$17,000 (107%) increase in interest income and approximately $25,000 increase in
dividends. Lease income declined approximately $10,000. These changes resulted
from a shift in invested assets, coupled with higher interest rates.
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<PAGE>
EXPENSES
--------
General and administrative expenses increased from $34,947 in 1994 to
$35,318 for the corresponding 1995 period with no significant changes within
expense categories.
COMPARISON OF THE SIX (6) MONTHS PERIOD JUNE 30, 1995
WITH THE CORRESPONDING PERIOD OF 1994
REVENUES
--------
During the six (6) months period ending June 30, 1995, revenues
increased by approximately $61,000, or 94% as compared to the corresponding
period of 1994. Interest income increased approximately $52,000, or 217% as
compared to the 1994 period. Lease income decreased by approximately $19,000, or
96%. Dividend income increased by approximately $28,000, or 132% as compared to
the 1994 period. These changes resulted from a shift in invested assets, coupled
with higher interest rates.
EXPENSES
--------
During the six (6) months period ended June 30, 1995, expenses increased
by approximately $29,000, or 40% as compared to the corresponding period of
1994. Contributing to the increase were increased payroll costs of approximately
$15,000 and costs of servicing and reporting to stockholders of approximately
$14,000.
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The above financial statements include all the adjustments which, in the opinion
of Management, are necessary for a fair presentation of such financial
information in conformity with generally accepted accounting principles. All
adjustments are of a normal, recurring nature.
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<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security
Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K - None
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<PAGE>
TWENTY SERVICES, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TWENTY SERVICES, INC.
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(Registrant)
August 15, 1995 /s/ Thomas L. Hinson, Jr.
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Date Thomas L. Hinson, Jr.
Executive Vice-President and
Treasurer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1994
<PERIOD-END> JUN-30-1995 JUN-30-1994
<CASH> 274,642 291,271
<SECURITIES> 2,446,818 2,452,966
<RECEIVABLES> 408,234 367,218
<ALLOWANCES> 27,275 26,983
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 53,697 90,253
<DEPRECIATION> 30,820 87,340
<TOTAL-ASSETS> 3,153,745 3,134,191
<CURRENT-LIABILITIES> 25,802 100,978
<BONDS> 0 0
<COMMON> 128,307 128,307
0 0
50,511 50,511
<OTHER-SE> 2,949,125 2,854,395
<TOTAL-LIABILITY-AND-EQUITY> 0 0
<SALES> 125,779 64,813
<TOTAL-REVENUES> 125,779 64,813
<CGS> 0 0
<TOTAL-COSTS> 102,467 73,013
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 53,763 (8,200)
<INCOME-TAX> 4,500 0
<INCOME-CONTINUING> 49,263 (8,200)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 49,263 (8,200)
<EPS-PRIMARY> .02 (.02)
<EPS-DILUTED> .02 (.02)
</TABLE>
