<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 September 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 its 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 Statements
(Unaudited)
Condensed Balance Sheets
September 30, 1995 and December 31, 1994 3
Condensed Statements of Operations
Three Months Ended September 30, 1995 and 1994 4
Condensed Statements of Cash Flows
Three Months Ended September 30, 1995 and 1994 5
Management's Discussion and Analysis of Financial Condition
and Results of Operations 6-7
Other Information 8
Signatures 9
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TWENTY SERVICES, INC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
1995 1994
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Assets
Cash and temporary investments $ 290,723 $ 291,271
Marketable securities 2,419,275 2,452,966
Accrued investment interest 27,793 25,540
Finance receivables, net 366,816 314,695
Property and equipment, net 21,978 2,913
Other assets 27,974 46,806
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Total Assets $3,154,559 $3,134,191
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Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses $ 9,205 $ 10,978
Income taxes payable 9,000 90,000
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Total liabilities 18,205 100,978
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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 1,235,155 1,227,389
Net unrealized gain (loss) on available-for-sale
securities 66,307 (29,068)
Less investment in Twenty Services Holding, Inc. (60,000) (60,000)
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Net Stockholders' Equity 3,136,354 3,033,213
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Total liabilities and stockholders' equity $3,154,559 $3,134,191
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TWENTY SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ending Nine Months Ending
September 30, September 30,
------------------------- -------------------------
1995 1994 1995 1994
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues $ 64,637 $ 13,992 $ 190,416 $ 78,805
Expenses:
General and administrative 26,801 30,084 129,268 103,097
----------- ---------- ---------- ----------
Income (loss) from operations 37,836 (16,092) 61,148 (24,292)
Other income:
Gain (loss) on sale of property
and investments (48,475) 2,411,908 (18,024) 2,411,908
----------- ---------- ---------- ----------
Income (loss) before income taxes (10,639) 2,395,816 43,124 2,387,616
Provision for income taxes (4,500) 592,000 -- 592,000
----------- ---------- ---------- ----------
Net income (loss) $ (6,139) $1,803,816 $ 43,124 $1,795,616
=========== ========== ========== ==========
Weighted average number of
common shares outstanding 1,283,068 1,283,068 1,283,068 1,283,068
=========== ========== ========== ==========
Earnings per share *
Net income (loss) $ (.01) $ 1.39 $ .01 $ 1.38
=========== ========== ========== ==========
</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)
[CAPTION]
<TABLE>
Nine Months Ended
September 30,
----------------------
1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 182,642 $ 49,868
Rental income 1,813 18,973
Other income 10 333
Cash paid employees and suppliers (127,823) (105,808)
Income taxes paid (110,000) -
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Net cash used by operating activities (53,358) (36,634)
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Cash flows from investing activities:
Principal collected on loans 94,839 37,803
Loans made to customers (144,919) (15,495)
Purchase of securities (461,860) -
Disposal of foreclosed assets - 1,000
Proceeds from sale of assets and securities 311,220 3,185,466
Principal collected on held-to-maturity securities 309,872 34,074
Equipment purchased (20,985) -
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Net cash provided by investing activities 88,167 3,242,848
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Cash flows from financing activities:
Preferred stock dividends (35,357) (35,357)
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Net cash used by financing activities (35,357) (35,357)
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Net increase (decrease) in cash and temporary
cash investments (548) 3,170,857
Cash and temporary investments, beginning of period 291,271 18,617
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Cash and temporary investments, end of period $ 290,723 $3,189,474
========= ==========
</TABLE>
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
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During the nine months ended September 30, 1995, the Registrant's
liquidity was unchanged as a result of the payment of dividends on preferred
stock and a net increase in loans to customers offset by interest income and
investment earnings. 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 third 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 SEPTEMBER 30, 1995
WITH THE CORRESPONDING PERIOD OF 1994
The Registrant reported net loss of $6,139 for the three (3) months
ended September 30, 1995 as compared to net income of $1,795,616 for the
corresponding 1994 period. The decrease was due to a gain on the sale of
marketable securities of approximately $2,411,000 in 1994 offset by related
income taxes, compared with significantly higher interest and dividends in 1995
offset by a $48,000 loss on disposal of securities.
REVENUES
- --------
Revenues rose from $13,992 for the three months ended September 30, 1994
to $64,637 (a 362% increase) for the corresponding 1995 period due to
approximately $26,000 (249%) increase in interest income and approximately
$25,000 increase in dividends. Lease income declined approximately $2,000. These
changes resulted from a shift in invested assets, coupled with higher interest
rates.
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EXPENSES
- --------
General and administrative expenses decreased from $30,084 in 1994 to
$26,801 for the corresponding 1995 period due to lower depreciation charges and
costs related to stockholders meeting being incurred in third quarter 1994.
COMPARISON OF THE NINE (9) MONTHS PERIOD SEPTEMBER 30, 1995
WITH THE CORRESPONDING PERIOD OF 1994
REVENUES
- --------
During the nine (9) months period ending September 30, 1995, revenues
increased by approximately $112,000, or 142% as compared to the corresponding
period of 1994. Interest income increased approximately $78,000, or 226% as
compared to the 1994 period. Lease income decreased by approximately $21,000, or
92%. Dividend income increased by approximately $54,000, or 259% as compared to
the 1994 period. These changes resulted from a shift in invested assets, coupled
with higher interest rates.
The nine (9) months period ended September 30, 1994, included a gain
on sale of marketable securities of $2,411,908 compared to losses of $18,024
during 1995. Income taxes for the 1994 period were $592,000 higher than the 1995
period.
EXPENSES
- --------
During the nine (9) months period ended September 30, 1995, expenses
increased by approximately $26,000, or 25% 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 $11,000.
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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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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
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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)
November 10, 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> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1994
<PERIOD-END> SEP-30-1995 SEP-30-1994
<CASH> 290,723 291,271
<SECURITIES> 2,419,275 2,452,966
<RECEIVABLES> 421,902 367,218
<ALLOWANCES> 27,293 26,983
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 53,697 90,253
<DEPRECIATION> 31,719 87,340
<TOTAL-ASSETS> 3,154,559 3,134,191
<CURRENT-LIABILITIES> 18,205 100,978
<BONDS> 0 0
<COMMON> 128,307 128,307
0 0
50,511 50,511
<OTHER-SE> 2,957,536 2,854,395
<TOTAL-LIABILITY-AND-EQUITY> 3,154,559 3,134,191
<SALES> 190,416 78,805
<TOTAL-REVENUES> 190,416 78,805
<CGS> 0 0
<TOTAL-COSTS> 129,268 103,097
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 43,124 2,387,616
<INCOME-TAX> 0 592,000
<INCOME-CONTINUING> 43,124 1,795,616
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 43,124 1,795,616
<EPS-PRIMARY> .01 1.38
<EPS-DILUTED> .01 1.38
</TABLE>
