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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, 1998 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-l58l
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Former name, former address, and former fiscal year, if changed
since last report.
Indicate by check mark whether the Registrant (l)
has filed all reports required to be filed by Section 13
or l5 (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
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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.l0 per share l,283,068 shares
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TWENTY SERVICES, INC.
INDEX
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<S> <C>
Twenty Services, Inc. Financial Statements
(Unaudited)
Condensed Balance Sheets
March 3l, 1998 and December 3l, 1997 3
Condensed Statements of Operations
Three Months ended March 31, 1998 and 1997 4
Condensed Statements of Cash Flows
Three Months Ended March 3l, 1998 and 1997 5
Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
Other Information 7
Signatures 8
</TABLE>
2
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TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
March 3l, December 31,
1998 1997
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<S> <C> <C>
Cash and temporary investments...... $ 70,291 $ 85,272
Marketable securities............... 2,179,351 2,122,716
Investment-American Equity
Investment Life Holding Company... 986,189 986,189
Finance receivables, Net............ 95,553 126,091
Note Receivable-Related Party....... 25,875 25,875
Property and equipment, Net......... 20,235 22,235
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Total assets $3,377,494 $3,368,378
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and
accrued expenses.................... $ 17,791 $ 18,671
Income taxes payable................. 26,008 26,008
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Total Liabilities................. 43,799 44,679
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Stockholders' equity:
Preferred stock, Cumulative $.l0
par value........................... 50,5ll 50,5ll
Common Stock, par value $.l0......... l28,307 128,307
Additional paid-in capital........... l,960,007 l,960,007
Retained earnings.................... l,209,872 l,199,245
Net unrealized gain on
available-for-sale securities....... 45,985 45,985
Less investment in Twenty Services
Holding, Inc........................ (60,000) (60,000)
Treasury Stock...................... (987) (356)
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Net stockholders' equity............ 3,333,695 3,323,699
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Total liabilities and
stockholders' equity................ $3,377,494 $3,368,378
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</TABLE>
3
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TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ending
March 3l,
1998 1997
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<S> <C> <C>
Revenues $ 45,471 $ 45,982
Expenses:
General and Administrative 33,843 30,643
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Gain (loss) from operations... 11,628 15,339
Other income:
Gain (loss) on sale of
property and investments... 3,000 -
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Income before income tax...... l4,628 l5,339
Provision for income taxes.... 4,000 4,300
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Net income $ l0,628 $ 11,039
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Weighted average number of
common shares outstanding l,283,068 1,283,068
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Earnings per share* $ .00 $ .00
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</TABLE>
* After giving effect on a pro-rata basis to anticipated
preferred dividends of $.07 per share per annum on
505,ll0 shares.
4
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TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 3l,
1998 1997
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<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received........... $ 38,517 $ 42,223
Rental income............................. 2,754 2,370
Cash paid employees and suppliers......... (33,843) (32,753)
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Net cash provided (used) by
operating activities............. 7,428 11,840
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Cash flows from investing activities:
Principal collected on loans.............. 30,538 57,812
Loans made to customers................... - (97,993)
Purchase of securities.................... (53,240) -
Principal collected on held-to-maturity
securities............................... 293 147
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Net cash (used) by investing activities (22,409) (40,034)
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Net (decrease) in cash...................... (14,981) (28,194)
Cash and temporary investments,
beginning of period....................... 85,272 95,438
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Cash and temporary investments,
end of period............................. $ 70,291 $ 67,244
======== ========
</TABLE>
5
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
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During the three months ended March 3l, 1998, 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 and 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 1998, the Registrant concentrated upon
collecting its loans, including those considered in determining the allowance
for loan losses.
RESULTS OF OPERATIONS
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The Registrant reported net income of $10,628 for the three months ended
March 31, 1998 as compared to net income of $l1,039 for the corresponding 1997
period.
REVENUES
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Revenues for the three months ended March 31, 1998 of $45,471 were
comparable to $45,982 for the corresponding 1997 period.
EXPENSES
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General and administrative expenses increased from $30,643 in 1997 to
$33,843 for the corresponding 1998 period due primarily to recurring
professional fees not being incurred until the second quarter of 1997.
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The above financial statements include all the adjustments which, in the opinion
of Management, are necessary for a fair presentation of such financial
information in conformity with generally accepted accounting principles. All
adjustments are of a normal, recurring nature.
6
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PART II
OTHER INFORMATION
Item l. - Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None.
Item 5. Other Information -
On February 15, 1998 the Board of Directors of the
Registrant declared a cash dividend of SEVEN CENTS ($.07)
per share, payable March 31, 1998 to holders of record
at March 15, 1998 of Series A-1980, Series A-1981,
Series A-1982 and Series A-1985 preferred stock, which
dividend relates to the yar ended December 31, 1997.
On April 1, 1998, the dividend so declared was paid in
the amount of approximately $32,500.
7
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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)
May 6, 1998 By /s/ Jack C. Bridges
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Date Jack C. Bridges
Executive Vice-President
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> MAR-31-1998 MAR-31-1997
<CASH> 70,291 67,244
<SECURITIES> 3,165,540 2,321,169
<RECEIVABLES> 136,428 855,972
<ALLOWANCES> 15,000 167,793
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 40,004 78,195
<DEPRECIATION> 19,769 41,885
<TOTAL-ASSETS> 3,377,494 3,112,902
<CURRENT-LIABILITIES> 43,799 36,052
<BONDS> 0 0
0 0
50,511 50,511
<COMMON> 128,307 128,307
<OTHER-SE> 3,154,877 2,897,582
<TOTAL-LIABILITY-AND-EQUITY> 3,377,494 3,112,902
<SALES> 48,471 45,982
<TOTAL-REVENUES> 48,471 45,982
<CGS> 33,843 30,643
<TOTAL-COSTS> 33,843 30,643
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 14,628 15,339
<INCOME-TAX> 4,000 4,300
<INCOME-CONTINUING> 10,628 11,039
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 10,628 11,039
<EPS-PRIMARY> .00 .00
<EPS-DILUTED> .00 .00
</TABLE>
