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Previous: DURCO INTERNATIONAL INC, 10-Q, 1997-05-08 |
Next: ESPEY MANUFACTURING & ELECTRONICS CORP, 10-Q, 1997-05-08 |
<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 MARCH 31, 1997 Commission File No. 0-8488
-------------- ------
TWENTY SERVICES, INC.
---------------------
(Exact name of Registrant as specified in its Charter)
ALABAMA 63-0372577
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
105 Vulcan Road 35209
- --------------------------------------------------------------------------------
(Address or principal executive offices) (Zip Code)
Registrant's telephone number, including area code (205) 945-1581
--------------
- --------------------------------------------------------------------------------
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
1
<PAGE>
TWENTY SERVICES, INC.
INDEX
<TABLE>
<CAPTION>
Twenty Services, Inc. Financial Statements
(Unaudited)
<S> <C>
Condensed Balance Sheets
March 31, 1997 and December 31, 1996 3
Condensed Statements of Operations
Three Months ended March 31, 1997 and 1996 4
Condensed Statements of Cash Flows
Three Months Ended March 31, 1997 and 1996 5
Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
Other Information 7
Signatures 8
</TABLE>
2
<PAGE>
TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
Assets
March 31, December 31,
1997 1996
---- ----
<S> <C> <C>
Cash and temporary investments $ 67,244 $ 95,438
Marketable securities 1,608,169 1,597,040
Investment-American Equity
Investment Life Holding Company 713,000 713,700
Finance receivables, net 275,350 248,750
Notes Receivable-Related Parties Net 319,729 263,148
Property and equipment, net 36,310 38,310
Other assets 93,100 154,186
---------- ----------
Total assets $3,112,902 $3,110,572
========== ==========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Liabilities:
Accounts payable and accrued expenses $ 11,702 $ 20,211
Income taxes payable 24,800 25,000
---------- ----------
Total liabilities 36,502 45,211
---------- ----------
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 1,7l6,074 1,7l6,074
Retained earnings 1,180,985 1,169,946
Net unrealized gain (loss) on
available-for sale securities 60,523 60,523
Less investment in Twenty Services
Holding, Inc. (60,000) (60,000)
---------- ----------
Net stockholders' equity 3,076,400 3,065,361
---------- ----------
Total liabilities and
stockholders' equity $3,112,902 $3,110,572
=========== ===========
</TABLE>
3
<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ending
March 31,
1997 1996
---- ----
<S> <C> <C>
Revenues $ 45,982 $ 37,225
Expenses:
General and
Administrative 30,643 41,122
Gain (Loss) from operations 15,339 (3,897)
Other income:
Gain (loss) on sale of
property and investments - 21,142
----------- ----------
Income before income tax 15,339 17,245
Provision for income taxes 4,300 5,000
--------- ---------
Net income $ 11,039 $ 12,245
========= =========
Weighted average number of
common shares outstanding 1,283,068 1,283,068
========= =========
Earnings per share* $ .00 $ .00
========= =========
</TABLE>
* After giving effect on a pro-rata basis to anticipated preferred
dividends of $.07 per share per annum on 505,110 shares.
4
<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 42,223 $ 29,840
Rental income 2,370 1,088
Cash paid employees and suppliers (32,753) (42,780)
--------- ---------
Net cash provided (used) by
operating activities 11,840 (11,852)
Cash flows from investing activities:
Principal collected on loans 57,812 459,445
Loans made to customers (97,993) (92,000)
Proceeds from sale of assets
and securities - 19l,578
Principal collected on held-to-maturity
securities 147 281
Purchase of property and equipment - (24,498)
--------- ---------
Net cash provided (used) by investing
activities (40,034) 534,806
--------- ---------
Cash flows from financing activities:
Preferred stock dividends -0- (35,358)
Net cash used by financing activities -0- (35,358)
--------- ---------
Net increase (decrease) in cash (28,194) 487,596
Cash and temporary investments,
beginning of period 95,438 41,379
Cash and temporary investments,
end of period $ 67,244 $528,975
======== ========
</TABLE>
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
During the three months ended March 3l, 1997, the Registrant's
liquidity remained stable. 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 1997, the Registrant concentrated upon
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.
RESULTS OF OPERATIONS
---------------------
The Registrant reported net income of $11,039 for the three (3) months
ended March 31, 1997 as compared to net income of $l2,245 for the corresponding
1996 period.
REVENUES
- --------
Revenues increased from $37,225 for the three months ended March 31,
1996 to $45,982 for the corresponding 1997 period due to approximately $4,000
increase in interest income and approximately $l,000 increase in dividends.
EXPENSES
- --------
General and administrative expenses decreased from $41,122 in 1996 to
$30,643 for the corresponding 1996 period due primarily to recurring
professional fees not being incurred until the second quarter of 1997.
- --------------------------------------------------------------------------------
The above financial statements include all the adjustments which, in the opinion
of Management, are necessary for a fair presentation of such financial
information in conformity with generally accepted accounting principles. All
adjustments are of a normal, recurring nature.
6
<PAGE>
PART II
OTHER INFORMATION
Item l. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders -
None.
Item 5. Other Information -
On February 15, 1997 the Board of Directors of the
Registrant declared a cash dividend of SEVEN CENTS ($.07) per
share, payable March 31, 1997 to holders of record at March
15, 1997 of Series A-1980, Series A-1981, Series A-1982 and
Series A-1985 preferred Stock, which dividend relates to the
year ended December 31, 1996. On March 31, 1997, the dividend
so declared was paid in the amount of approximately $35,358.
7
<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.
---------------------
(Registrant)
May 5, 1997 /s/ Jack C. Bridges
- ---------------------- ------------------------------------
Date Jack C. Bridges
Executive Vice-President
and Treasurer
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-START> JAN-01-1997 JAN-01-1996
<PERIOD-END> MAR-31-1997 MAR-31-1996
<CASH> 67,244 528,975
<SECURITIES> 2,321,169 2,111,859
<RECEIVABLES> 855,972 487,353
<ALLOWANCES> 167,793 27,293
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 78,195 79,296
<DEPRECIATION> 41,885 34,617
<TOTAL-ASSETS> 3,112,902 3,145,573
<CURRENT-LIABILITIES> 36,052 27,973
<BONDS> 0 0
0 0
50,511 50,511
<COMMON> 128,307 128,307
<OTHER-SE> 2,897,582 2,938,782
<TOTAL-LIABILITY-AND-EQUITY> 3,112,902 3,145,573
<SALES> 45,982 77,707
<TOTAL-REVENUES> 45,982 77,707
<CGS> 30,643 67,149
<TOTAL-COSTS> 30,643 67,149
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 15,339 10,558
<INCOME-TAX> 4,300 2,750
<INCOME-CONTINUING> 11,039 7,808
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 11,039 7,808
<EPS-PRIMARY> .00 .00
<EPS-DILUTED> .00 .00
</TABLE>
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