<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 Quarter Ended March 31, 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 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 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
March 31, 1999 and December 31, 1998 3
Condensed Statement of Operations
Three Months Ended March 31, 1999 and 1998 4
Condensed Statement of Cash Flows
Three Months Ended March 31, 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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<PAGE>
TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
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<S> <C> <C>
Cash and temporary investment $ 25,340 $ 85,653
Marketable securities 2,172,047 2,276,983
Investment-American Equity Investment
Life Holding Company 1,137,445 1,137,445
Finance receivables, Net 100,072 105,619
Property and equipment, Net 12,235 12,235
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Total assets $3,447,139 $3,617,935
========== ==========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Liabilities:
<S> <C> <C>
Accounts payable and accrued expenses $ 25,610 $ 15,081
Income taxes payable (9,605) 122,395
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Total liabilities 16,006 137,476
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Stockholder's 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 1,427,349 1,443,125
Net unrealized gain (loss) on available-for-sale securities (134,901) (105,148)
Less investment in Twenty Services Holding (60,000) (60,000)
Treasury Stock (10,866) ( 7,069)
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Net stockholder's equity 3,431,133 3,480,459
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Total liabilities and stockholder's equity $3,447,139 $3,617,935
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</TABLE>
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<PAGE>
TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ending
March 31,
1999 1998
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<S> <C> <C>
Revenues $ 54,808 $ 45,471
Expenses:
General and Administrative 38,802 33,843
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Gain from operations 16,006 11,628
Other income:
Gain (loss) on sale of property and investments (38,781) 3,000
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Income (loss) before income tax (22,775) 14,628
Provision for income taxes ( 7,000) 4,000
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Net income (loss) $ (15,775) $ 10,628
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Weighted average number of
common shares outstanding 1,283,068 1,283,068
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Earnings per share * $ (.02) $ .00
========== =========
</TABLE>
* After giving effect on a pro-rate 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>
Three Months Ended
March 31,
1999 1998
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 47,305 $ 38,517
Rental income 7,483 2,754
Cash paid employees, suppliers
And for income taxes (157,049) (33,843)
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Net cash provided (used) by operating activities (102,261) 7,428
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Cash flows from investing activities:
Principal collected on loans 5,546 30,538
Sale (purchase) of securities 36,219 (53,240)
Principal collected on held-to-maturity securities 183 293
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Net cash provided (used) by investing activities 41,948 (22,409)
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Net (decrease) in cash (60,313) (60,313)
Cash and temporary investments,
beginning of period 85,653 85,653
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Cash and temporary investments
end of period $ 25,340 $ 25,340
========= ========
</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 three months ended March 31, 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
investments, 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 loss of $15,775 for the three months ended
March 31, 1999 as compared to the net income of $10,628 for the corresponding
1998 period. The loss resulted from a loss of $38,781 on the sale of marketable
securities.
REVENUES
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Revenues for the three months ended March 31, 1999 of $54,808 were
comparable to $45,471 for the corresponding 1998 period.
EXPENSES
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General and administrative expenses increased from $33,843 in 1998 to
$38,802 for the corresponding 1999 period due primarily to the timing of
professional fees.
_______________________________________________________________________________
The above financial statements include all the adjustments which, in the opinion
of Management, are necessary for a fair presentation of such financial
information in conformity with generally accepted accounting principles. All
adjustments are of a normal, recurring nature.
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<PAGE>
PART II
OTHER INFORMATION
Item 1.- Legal Proceedings - None
Item 2.- Changes in Securities - None
Item 3.- Defaults Upon Senior Securities - None
Item 4.- Submission of Matters to a vote of Security Holders - None
Item 5.- Other Information:
On February 26, 1999, the Board of Directors of the Registrant
declared a cash dividend of SEVEN CENTS ($.07) PER SHARE,
payable March 31, 1999 to holders of record at February 26, 1999
of Series A-1980, Series A-1981, Series A-1981 and Series A-1985
Preferred Stock, which dividend relates to the year ended December 31,
1998. On March 31, 1999, the dividend so declared was paid in the
amount of approximately $32,500.
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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 hereunto duly authorized.
TWENTY SERVICES, INC.
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(Registrant)
Date May 13, 1999 /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> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-START> JAN-01-1999 JAN-01-1998
<PERIOD-END> MAR-31-1999 MAR-31-1998
<CASH> 25,340 70,291
<SECURITIES> 3,309,492 3,165,540
<RECEIVABLES> 115,072 136,428
<ALLOWANCES> 15,000 15,000
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 40,004 40,004
<DEPRECIATION> 27,769 19,769
<TOTAL-ASSETS> 3,447,139 3,377,494
<CURRENT-LIABILITIES> 16,006 43,799
<BONDS> 0 0
0 0
50,511 50,511
<COMMON> 128,307 128,307
<OTHER-SE> 3,252,315 3,154,877
<TOTAL-LIABILITY-AND-EQUITY> 3,447,139 3,377,494
<SALES> 54,808 48,471
<TOTAL-REVENUES> 54,808 48,471
<CGS> 38,802 33,843
<TOTAL-COSTS> 38,802 33,843
<OTHER-EXPENSES> 38,781 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (22,775) 14,628
<INCOME-TAX> (7,000) 4,000
<INCOME-CONTINUING> (15,775) 10,628
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (15,775) 10,628
<EPS-PRIMARY> (.02) .00
<EPS-DILUTED> (.02) .00
</TABLE>
