<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, 2000 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)
20 Cropwell Drive - Suite 100 Pell City, AL 35128
- -------------------------------------------------------------------------------
Registrant's telephone number, including area code (205) 884-7932
-------------------
- -------------------------------------------------------------------------------
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
1
<PAGE>
TWENTY SERVICES, INC.
INDEX
Twenty Services, Inc. Financial Statements
(Unaudited)
Condensed Balance Sheets
March 31, 2000 and December 31, 1999............................. 3
Condensed Statement of Operations
Three Months Ended March 31, 2000 and 1999....................... 4
Condensed Statement of Cash flows
Three Months Ended March 31, 2000 and 1999....................... 5
Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................. 6
Other Information.......................................................... 7
Signatures................................................................. 8
2
<PAGE>
TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
----------- ------------
<S> <C> <C>
Cash and temporary investments $ 131,436 $ 164,122
Marketable securities 1,720,303 1,664,209
Investment-American Equity Investment
Life Holding Company 576,648 576,648
Receivables, Net 147,308 108,189
Property and equipment, Net 5,714 5,714
Other assets 82,571 122,610
---------- ----------
Total assets $2,663,980 $2,641,492
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses $ 64,597 $ 34,879
Income taxes payable 3,000 0
---------- ----------
Total liabilities 67,597 34,879
---------- ----------
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 1,528,768 1,528,768
Retained earnings 1,371,445 1,365,481
Net unrealized gain (loss) on
available-for-sale securities (356,387) (356,387)
Less investment in Twenty Services Holding (60,000) (60,000)
Treasury Stock (66,261) (50,067)
---------- ----------
Net stockholders' equity 2,596,383 2,606,613
---------- ----------
Total liabilities and stockholders' equity $2,663,980 $2,641,492
========== ==========
</TABLE>
3
<PAGE>
TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ending
March 31,
--------------------------
2000 1999
---------- ----------
<S> <C> <C>
Revenues $ 48,041 $ 54,808
Expenses:
General and administrative 39,077 38,802
---------- ----------
Gain from operations 8,964 16,006
Other income:
Gain (loss) on sale of property
and investments - (38,781)
---------- ----------
Income (loss) before income tax 8,964 (22,775)
Provision for income taxes 3,000 (7,000)
---------- ----------
Net income (loss) $ 5,964 $ (15,775)
========== ==========
Weighted average number of
Common shares outstanding 1,283,068 1,283,068
========== ==========
Earnings per share * $ ( .00) $ ( .02)
========== ==========
</TABLE>
** After giving effect on a pro-rata basis to anticipated preferred
dividends of $0.07 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,
----------------------------
2000 1999
-------- ----------
<S> <C> <C>
Cash flows from operating activities:
Interest and dividends received $ 46,558 $ 47,305
Rental income 1,483 7,483
Cash paid employees, suppliers and
for income taxes (6,359) (157,049)
-------- ----------
Net cash provided (used) by
operating activities 41,682 (102,261)
-------- ----------
Cash flows from investing activities:
Principal collected on loans 1,826 5,546
Sale (purchase) of securities (60,000) 36,219
Purchase of Treasury Stock (16,194) 183
-------- ----------
Net cash provided (used) by
investing activities (74,368) 41,948
-------- ----------
Net (decrease) in cash (32,686) (60,313)
Cash and temporary investments,
beginning of period 164,122 85,653
-------- ----------
Cash and temporary investments
end of period $131,436 $ 25,340
======== ==========
</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 31, 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 liabilities 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
---------------------
The Registrant reported a net income of $5,964 for the three months
ended March 31, 2000 as compared to the net loss of $15,775 for the
corresponding 1999 period. The 1999 loss resulted from a loss of $38,781 on the
sale of marketable securities.
REVENUES
- --------
Revenues for the three months ended March 31, 2000 of $48,041 were
comparable to $54,808 for the corresponding 1999 period. The decrease was due
primarily to a decrease in rental income.
EXPENSES
- --------
General and administrative expenses increased from $38,802 in 1999 to
$39,077 for the corresponding 2000 period.
- -------------------------------------------------------------------------------
The above financial statements include all the adjustments which, in the opinion
of Management, are necessary for a fair presentation of such financial
information in conformity with generally accepted accounting principles. All
adjustments are of a normal, recurring nature.
6
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.............................................. None
Item 2. Changes in Securities.......................................... None
Item 3. Defaults Upon Senior Securities................................ None
Item 4. Submission of Matters to a Vote of Security Holders............ None
Item 5. Other Information:
On February 29, 2000, the Board of Directors of the
Registrant declared a cash dividend of SEVEN CENTS ($.07)
PER SHARE, payable March 31, 2000 to holders of record at
February 29, 2000 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, 1999. On March 31,
2000, the dividend so declared was paid in the amount of
approximately $32,500.
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, 2000 /s/ Jack C. Bridges
- ------------------- --------------------------------
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-31-2000 DEC-31-1999
<PERIOD-START> JAN-01-2000 JAN-01-1999
<PERIOD-END> MAR-31-2000 MAR-31-1999
<CASH> 131,436 25,340
<SECURITIES> 2,296,951 3,309,492
<RECEIVABLES> 157,308 115,072
<ALLOWANCES> 10,000 15,000
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 40,004 40,004
<DEPRECIATION> 34,290 27,769
<TOTAL-ASSETS> 2,663,980 3,447,139
<CURRENT-LIABILITIES> 67,597 16,006
<BONDS> 0 0
0 0
50,511 50,511
<COMMON> 128,307 128,307
<OTHER-SE> 2,485,162 3,252,315
<TOTAL-LIABILITY-AND-EQUITY> 2,663,980 3,447,139
<SALES> 48,041 54,808
<TOTAL-REVENUES> 48,041 54,808
<CGS> 39,077 38,802
<TOTAL-COSTS> 39,077 38,802
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 8,964 (22,775)
<INCOME-TAX> 3,000 (7,000)
<INCOME-CONTINUING> 5,964 (15,775)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 5,964 (15,775)
<EPS-BASIC> 0 (.02)
<EPS-DILUTED> 0 (.02)
</TABLE>
