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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, 2000 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)
<TABLE>
<CAPTION>
<S> <C>
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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</TABLE>
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
--------- ______
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
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TWENTY SERVICES, INC.
INDEX
<TABLE>
<CAPTION>
<S> <C>
Twenty Services, Inc. Financial Statements
(Unaudited)
Condensed Balance Sheets
September 30, 2000 and December 31, 1999 3
Condensed Statement of Operations
Nine Months Ended September 30, 2000 and 1999 4
Condensed Statement of Cash Flows
Nine Months Ended September 30, 2000 and 1999 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.
CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
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<S> <C> <C>
Cash and temporary investments $ 186,085 $ 164,122
Marketable securities 1,590,036 1,664,209
Investment-American Equity Investment
Life Holding Company 576,648 576,648
Finance Receivables, Net 115,694 108,189
Property and equipment, Net 5,714 5,714
Other Assets 78,720 122,610
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Total assets $2,552,897 $2,641,492
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses $ 1,479 $ 34,879
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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 1,528,801 1,528,768
Retained earnings 1,375,382 1,365,481
Net unrealized (loss) on available-for-sale securities [356,387] [356,387]
Less investment in Twenty Services Holding [60,000] [60,000]
Treasury Stock [115,196] [50,067]
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Net stockholders' equity $2,551,418 $2,606,613
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Total liabilities and stockholders' equity $2,552,897 $2,641,492
========== ==========
</TABLE>
3
<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ending Nine Months Ending
September 30, September 30,
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2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues $ 37,919 $ 48,512 $ 127,230 $ 151,787
Expenses:
General and
Administrative 26,721 24,830 103,337 96,240
---------- ---------- ---------- ----------
Income from
Operations 11,198 23,682 23,892 55,547
Other Income:
Gain (loss) on sale
of property and
investments - 498 - (38,283)
---------- ---------- ---------- ----------
Income before
income tax 11,198 24,180 23,892 17,264
Provision for
income taxes 7,000 6,000 11,000 5,639
---------- ---------- ---------- ----------
Net income $ 4,198 $ 18,180 $ 12,892 $ 11,625
========== ========== ========== ==========
Weighted average
number of common
shares outstanding
Earnings per share* 1,283,068 1,283,068 1,283,068 1,283,068
========== ========== ========== ==========
Net Income $ .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.
4
<PAGE>
TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ending
September 30,
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2000 1999
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<S> <C> <C>
Cash flows from operating activities:
Interest, dividends and rental income $ 127,230 $ 151,787
Cash paid employees, suppliers
and for income taxes (110,044) (172,189)
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Net cash provided by operating activities 17,186 (20,402)
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Cash flows from investing activities:
Principal collected on loans 18,909 15,821
Loans made to customers [26,414] -
Proceeds from sale of assets and securities 112,444 63,534
Principal collected on held-to-maturity securities 505 700
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Net cash provided by investing activities 105,444 80,055
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Cash flows from financing activities:
Preferred stock dividends (35,538) (35,538)
Purchase Treasury Stock (65,129) (18,359)
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Net cash used by financing activities (100,667) (53,897)
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Net increase in cash 21,963 5,756
Cash and temporary investments,
Beginning of period 164,122 85,653
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Cash and temporary investments,
End of period $186,085 $ 91,409
========= =========
</TABLE>
5
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended September 30, 2000, 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 is financing
activities will continue to use cash flows.
RESULTS OF OPERATIONS
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The Registrant reported a net income of $12,892 for the nine months ended
September 30, 2000 as compared to the net income of $11,625 for the
corresponding 1999 period.
REVENUES
--------
Revenues for the nine months ended September 30, 2000 of $127,230 were
comparable to $151,787 for the corresponding 1999 period.
EXPENSES
--------
General and administrative expenses were $103,337 in 2000 as compared to
$96,240 in 1999.
================================================================================
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
<TABLE>
<CAPTION>
<S> <C>
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
</TABLE>
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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: November 8, 2000 /s/ Jack C. Bridges
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Jack C. Bridges - Executive Vice-President
8
