<PAGE>
SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Nine Months Ended September 30, 1999 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 ID No.)
incorporation or organization)
20 Cropwell Drive - Suite 100 Pell City, AL 35128
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(Address or principal executive offices) (City, State, Zip)
Registrant's telephone number, including area code (205) 884-7932
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105 Vulcan Road - Suite 401 Birmingham, AL 35209
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Former name, former address, and former fiscal year, if changed since last
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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 _______
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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 $0.10 per share 1,283,068 shares
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TWENTY SERVICES, INC.
INDEX
Twenty Services, Inc. Financial Statements
(Unaudited)
Balance Sheets
Nine Months ended September 30, 1999 and December 31, 1998 3
Condensed Statement of Operations
Nine Months Ended September 30, 1999 and 1998 4
Condensed Statement of Cash Flows
Nine Months Ended September 30, 1999 and 1998 5
Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
Other Information 7
Signatures 8
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TWENTY SERVICES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
---- ----
<S> <C> <C>
Cash and temporary cash investments $ 91,409 $ 85,653
Marketable securities 2,149,326 2,276,983
Investment-American Equity Investment
Life Holding Company 1,137,445 1,137,445
Finance Receivables, Net 80,290 105,619
Property and equipment, Net 12,235 12,235
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Total assets $3,470,705 $3,617,935
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses $ 18,306 $ 15,081
Income taxes payable 59,208 122,395
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Total liabilities 77,514 137,476
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Stockholders' equity:
Preferred stock, Cumulative $0.10 par value 50,511 50,511
Common stock, par value $0.10 128,307 128,307
Additional paid-in capital 2,030,733 2,030,733
Retained earnings 1,419,391 1,443,125
Net unrealized (loss) on available-for sale securities (134,901) (105,148)
Less investment in Twenty Services Holding (60,000) (60,000)
Treasury Stock (40,850) (7,069)
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Net stockholders' equity 3,393,191 3,480,459
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Total liabilities and stockholders' equity $3,470,705 $3,617,935
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</TABLE>
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TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ending Nine Months Ending
September 30, September 30,
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1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $ 48,512 $ 41,537 $ 151,787 $ 133,033
Expenses:
General and
Administrative 24,830 21,949 96,240 94,803
---------- ---------- ---------- ----------
Income (loss) from
operations 23,682 19,588 55,547 38,230
Other Income:
Gain (loss) on sale
of property and
investments 498 2,998 (38,283) 5,998
---------- ---------- ---------- ----------
Income (loss) before
income tax 24,180 22,586 17,264 44,228
Provision for
income taxes 6,000 - 5,639 6,500
---------- ---------- ---------- ----------
Net income (loss) $ 18,180 $ 22,586 $ 11,625 $ 37,728
========== ========== ========== ==========
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) $ 00 $ 00 $ 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.
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TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
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1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 141,013 $ 121,931
Rental income 10,774 6,918
Cash paid employees, suppliers
and for income taxes (172,189) (91,327)
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Net cash provided (used) by operating activities (20,402) 37,522
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Cash flows from investing activities:
Principal collected on loans 15,821 39,705
Loans made to customers - (7,000)
Purchase of securities (159,293)
Proceeds from sale of assets and securities 63,534 855,632
Principal collected on held-to-maturity securities 700 3,530
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Net cash provided (used) by investing activities 80,055 732,574
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Cash flows from financing activities:
Preferred stock dividends (35,538) (35,358)
Purchase Treasury Stock (18,359) -
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Net cash used by financing activities (53,897) (35,358)
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Net increase in cash 5,756 734,558
Cash and temporary investments,
beginning of period 85,653 85,272
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Cash and temporary investments,
end of period $ 91,409 $ 819,830
========= =========
</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, 1999, 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
investment, then the Registrant would dispose of marketable securities as its
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.
RESULTS OF OPERATIONS
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The Registrant reported a net income of $11,625 for the nine months ended
September 30, 1999 as compared to the net income of $37,728 for the
corresponding 1998 period. The decrease resulted from a loss of $38,781 on the
sale of marketable securities in 1999.
REVENUES
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Revenues for the nine months ended September 30, 1999 of $151,787 were
comparable to $133,033 for the corresponding 1998 period.
EXPENSES
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General and administrative expenses were $96,240 in 1999 as compared to $
94,803 in 1998.
================================================================================
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 hereunto duly authorized.
TWENTY SERVICES, INC.
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(Registrant)
Date 11-10-99 /s/ Jack C. Bridges
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Jack C. Bridges - Executive Vice-President
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-START> JAN-01-1999 JAN-01-1998
<PERIOD-END> SEP-30-1999 SEP-30-1998
<CASH> 91,409 819,830
<SECURITIES> 2,149,326 2,252,846
<RECEIVABLES> 95,290 134,261
<ALLOWANCES> (15,000) (15,000)
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 45,235 45,235
<DEPRECIATION> 33,000 27,000
<TOTAL-ASSETS> 3,470,705 3,210,172
<CURRENT-LIABILITIES> 77,514 7,762
<BONDS> 0 0
0 0
43,566 43,566
<COMMON> 128,307 128,307
<OTHER-SE> 3,221,318 3,030,537
<TOTAL-LIABILITY-AND-EQUITY> 3,470,705 3,210,172
<SALES> 151,787 133,033
<TOTAL-REVENUES> 151,787 139,031
<CGS> 96,240 94,803
<TOTAL-COSTS> 96,240 94,803
<OTHER-EXPENSES> 38,283 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 17,264 44,228
<INCOME-TAX> 5,639 6,500
<INCOME-CONTINUING> 11,625 37,728
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 11,625 37,728
<EPS-BASIC> .00 .00
<EPS-DILUTED> 0 0
</TABLE>
