FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission file number 1-3647
J.W. Mays, Inc.
(Exact name of registrant as specified in its charter)
New York 11-1059070
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9 Bond Street, Brooklyn, New York 11201-5805
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 718-624-7400
Not Applicable
(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 90 days.
Yes X . No .
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at March 8, 1996
Common Stock, $1 par value 2,136,397 shares
This report contains 16 pages.
<PAGE>
J. W. MAYS, INC.
INDEX
Page No.
Part I - Financial Information:
Consolidated Balance Sheet 3
Consolidated Statement of Operations
and Retained Earnings 4
Consolidated Statement of Cash Flows 5
Notes to Consolidated Financial Statements 6 - 12
Management's Discussion and Analysis of Results
of Operations and Financial Condition 13 - 14
Part II - Other Information 15
<PAGE>
<TABLE>
<CAPTION>
J. W. MAYS, INC.
CONSOLIDATED BALANCE SHEET
January 31, July 31,
ASSETS 1996 1995
--------------------------------------------------------------- --------------- ---------------
(Unaudited) (Audited)
<S> <C> <C>
Property and Equipment - net (Notes 4 and 6) $26,019,120 $25,285,935
------------- -------------
Current Assets:
Cash and cash equivalents 441,990 490,315
Marketable securities - other investments (Notes 3 and 8) 2,919,851 2,799,712
Receivables 314,358 244,992
Deferred income taxes 37,000 27,000
Prepaid expenses 1,049,346 1,121,694
------------- -------------
Total current assets 4,762,545 4,683,713
------------- -------------
Other Assets:
Deferred charges 2,551,276 2,329,140
Less accumulated amortization 984,499 913,311
------------- -------------
Net 1,566,777 1,415,829
Security deposits 843,530 458,641
Unbilled receivables (Note 9) 3,937,500 4,026,435
Receivables 153,906 109,687
Marketable securities - other investments (Notes 3 and 8) 97,726 164,063
Deferred income taxes 110,000 -
------------- -------------
Total other assets 6,709,439 6,174,655
------------- -------------
TOTAL ASSETS $37,491,104 $36,144,303
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------------
Long-Term Debt:
Mortgages payable (Note 4) $6,885,452 $5,954,306
Other (Note 5) 1,059,833 677,597
------------- -------------
Total long-term debt 7,945,285 6,631,903
------------- -------------
Deferred Income Taxes - 14,000
------------- -------------
Current Liabilities:
Payable to securities broker (Note 8) 1,310,679 1,225,100
Accounts payable 17,927 64,744
Payroll and other accrued liabilities 551,299 487,956
Income taxes payable 6,383 18,588
Other taxes payable 8,758 4,081
Current portion of long-term debt - mortgages payable (Note 4) 525,245 404,813
------------- -------------
Total current liabilities 2,420,291 2,205,282
------------- -------------
Total liabilities 10,365,576 8,851,185
------------- -------------
Shareholders' Equity:
Common stock, par value $1 each share (shares - 5,000,000
authorized; 2,178,297 issued) 2,178,297 2,178,297
Additional paid in capital 3,346,245 3,346,245
Unrealized gain on available for sale securities (Note 3) 96,540 28,010
Retained earnings 21,788,686 22,024,806
------------- -------------
27,409,768 27,577,358
Less common stock held in treasury, at cost - 41,900
shares at January 31, 1996 and July 31, 1995 284,240 284,240
------------- -------------
Total shareholders' equity 27,125,528 27,293,118
------------- -------------
Commitments and Contingencies (Note 14)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $37,491,104 $36,144,303
============= =============
See Notes to Consolidated Financial Statements.
- 3-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
J.W. MAYS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS
Three Months Ended Six Months Ended
January 31, January 31,
-------------- -------------- -------------- ---------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
------------- ------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Rental income $2,468,181 $2,109,155 $4,494,435 $4,179,904
------------- ------------- ------------- -------------
Expenses
Real estate operating expenses 1,506,188 1,402,653 2,778,806 2,757,216
Administrative and general expenses 891,624 500,996 1,407,904 1,022,200
Depreciation and amortization 222,684 209,555 439,768 417,984
------------- ------------- ------------- -------------
Total expenses 2,620,496 2,113,204 4,626,478 4,197,400
------------- ------------- ------------- -------------
(Loss) from operations before investment income,
interest expense and income taxes (152,315) (4,049) (132,043) (17,496)
------------- ------------- ------------- -------------
Investment income and interest expense
Investment income 64,857 112,163 125,166 221,549
Interest expense (173,140) (168,490) (340,243) (342,605)
------------- ------------- ------------- -------------
(108,283) (56,327) (215,077) (121,056)
------------- ------------- ------------- -------------
(Loss) from operations before income taxes (260,598) (60,376) (347,120) (138,552)
Income taxes (benefit) (94,000) (7,000) (111,000) (28,000)
------------- ------------- ------------- -------------
(Loss) from operations before cumulative effect of change in
accounting for certain investments in debt and equity securities (166,598) (53,376) (236,120) (110,552)
Cumulative effect of change in accounting for certain
investments in debt and equity securities - - - 21,769
------------- ------------- ------------- -------------
Net (loss) (166,598) (53,376) (236,120) (88,783)
Retained earnings, beginning of period 21,955,284 22,361,438 22,024,806 22,396,845
------------- ------------- ------------- -------------
Retained earnings, end of period $21,788,686 $22,308,062 $21,788,686 $22,308,062
============= ============= ============= =============
(Loss) per common share
(Loss) from operations $(.08) $(.02) $(.11) $(.05)
Cumulative effect of change in accounting for certain
investments in debt and equity securities - - - .01
------------- ------------- ------------- -------------
Net (loss) per common share $(.08) $(.02) $(.11) $(.04)
============= ============= ============= =============
Dividends per share $ - $ - $ - $ -
============= ============= ============= =============
Average common shares outstanding 2,136,397 2,136,397 2,136,397 2,136,397
============= ============= ============= =============
See Notes to Consolidated Financial Statements.
-4-
</TABLE>
<PAGE>
<TABLE>
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
Six Months Ended
January 31,
----------------- ---------------
1996 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
(Loss) from operations $(236,120) $(110,552)
Cumulative effect of change in accounting
for certain investments in debt and equity securities - 21,769
------------- -------------
Net (loss) (236,120) (88,783)
Adjustments to reconcile net (loss) to
net cash provided by (used in) operating activities:
Amortization of premium on marketable debt securities 346 1,534
Realized gain on marketable securities - (11,998)
Unrealized gain on marketable securities - 14,231
Depreciation and amortization 439,768 417,984
Amortization of deferred expenses 100,995 96,313
Other assets - deferred expenses (251,943) (57,971)
- security deposits (384,889) (194,904)
- unbilled receivables 88,935 (353,764)
Deferred income taxes (169,000) (122,000)
Changes in:
Receivables (113,585) 155,939
Prepaid expenses 72,348 37,482
Income taxes refundable - 22,005
Accounts payable (46,817) (72,739)
Payroll and other accrued liabilities 63,343 (94,692)
Income taxes payable (12,205) 13,178
Other taxes payable 4,677 4,745
------------- -------------
Net cash (used in) operating activities (444,147) (233,440)
------------- -------------
Cash Flows From Investing Activities
Capital expenditures (1,172,953) (462,154)
Marketable securities - other investments:
Receipts from sales or maturities 50,004 1,797,463
Payments for purchases (622) (415,050)
------------- -------------
Net cash provided by (used in) investing activities (1,123,571) 920,259
------------- -------------
Cash Flows From Financing Activities
Borrowings - securities broker 255,904 1,571,070
Payments - securities broker (170,325) (1,910,007)
Increase (reduction) of mortgage debt - short term 120,432 (193,978)
- long term 1,313,382 (196,199)
------------- -------------
Net cash provided by (used in) financing activities 1,519,393 (729,114)
------------- -------------
Net (decrease) in cash (48,325) (42,295)
Cash and cash equivalents at beginning of period 490,315 602,289
------------- -------------
Cash and cash equivalents at end of period $441,990 $559,994
============= =============
See Notes to Consolidated Financial Statements.
-5-
</TABLE>
<PAGE>
J. W. MAYS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The interim financial statements are prepared pursuant to the
requirements for reporting on Form 10-Q. The July 31, 1995 balance
sheet was derived from audited financial statements but does not
include all disclosures required by generally accepted accounting
principles. The interim financial statements and notes thereto should
be read in conjunction with the financial statements and notes
included in the Company's latest Annual Report on Form 10-K for the
year ended July 31, 1995. In the opinion of management, the interim
financial statements reflect all adjustments of a normal recurring
nature necessary for a fair statement of the results for interim
periods. The results of operations for the current period are not
necessarily indicative of the results for the entire year ending July
31, 1996.
2. Loss per common share has been computed by dividing the net loss for
the periods by the weighted average number of shares of common stock
outstanding during the periods, adjusted for the purchase of treasury
stock. Shares used in computing the loss per common share were
2,136,397 in each of the three and six months ended January 31, 1996
and 1995.
3. Marketable Securities - Other Investments:
Effective August 1, 1994, the Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities" ("FAS 115"). FAS 115 requires certain
securities to be categorized as either trading, available for sale or
held to maturity. Trading securities are carried at fair value with
unrealized gains and losses included in income. Available for sale
securities are carried at fair value with unrealized gains and losses
recorded as a separate component of shareholders' equity. Held to
maturity securities are carried at amortized cost. Dividends and
interest income are accrued as earned. The cumulative effect as of
August 1, 1994 of adopting Statement No. FAS 115 increased net income
by $21,769 (net of $10,000 in deferred income taxes), or $.01 per
share. The opening balance of shareholders' equity at August 1, 1994
was decreased by $21,769 to reflect the net unrealized holding gains
on securities classified as available for sale previously carried at
amortized cost or lower of cost or market. For the three months ended
January 31, 1996, shareholders' equity was increased by $42,274 (net
of $21,000 in deferred income taxes). For the six months ended
January 31, 1996, shareholders' equity was increased by $68,530 (net
of $35,000 in deferred income taxes). For the three months ended
January 31, 1995, shareholders' equity was increasd by $13,805 (net of
$3,000 in deferred income taxes). For the six months ended January
31, 1995, shareholders' equity was decreased by $67,362 (net of
$36,000 in deferred income taxes).
<TABLE>
Marketable Securities - Other Investments (continued)
<CAPTION>
As of January 31, 1996, the Company's marketable securities were classified as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
------------- ------------- ------------- -------------
Current
<S> <C> <C> <C> <C>
Available for sale
Equity securities $2,481,936 $145,540 $- $2,627,476
Certificate of deposit 26,426 - - 26,426
------------- ------------- ------------- -------------
Total 2,508,362 145,540 - 2,653,902
Held to maturity
Corporate debt securities
due within one year 265,949 1,348 - 267,297
------------- ------------- ------------- -------------
Total current $2,774,311 $146,888 $- $2,921,199
============= ============= ============= =============
Noncurrent
Held to maturity
Corporate debt securities 97,726 7,582 - 105,308
------------- ------------- ------------- -------------
Total noncurrent $97,726 $7,582 $- $105,308
============= ============= ============= =============
Investment income consists of the following:
Three Months Ended Six Months Ended
January 31, January 31,
------------------------------ ------------------------------
1996 1995 1996 1995
_________ _________ _________ _________
Interest income $10,214 $45,744 $20,619 $97,256
Dividend income 54,643 54,421 104,547 112,295
Gain on sale of marketable securities - 11,998 - 11,998
------------- ------------- ------------- -------------
Total $64,857 $112,163 $125,166 $221,549
============= ============= ============= =============
-7-
</TABLE>
<PAGE>
4. Long-Term Debt:
<TABLE>
<CAPTION>
January 31, 1996 July 31, 1995
------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Current
Annual Final Due Due Due Due
Interest Payment Within After Within After
Rate Date One Year One Year One Year One Year
------- -------- ------------- ------------- ------------- -------------
Term - loan payable to bank (a) Variable 8/01/00 $104,167 $1,145,833 $- $-
Mortgages:
Jowein Building, Brooklyn, N.Y. (b) 10% 3/31/98 56,222 892,719 53,513 921,524
Fishkill, New York Property (c) 9% 11/01/99 103,888 2,616,971 99,333 2,670,079
Circleville, Ohio Property (d) 7% 9/30/02 253,755 2,024,623 245,053 2,153,714
Other 8 1/2% 5/01/01 7,213 205,306 6,914 208,989
------------- ------------- ------------- -------------
Total $525,245 $6,885,452 $404,813 $5,954,306
============= ============= ============= =============
</TABLE>
(a)On August 17, 1995 the Company entered into an agreement with a bank
wherein the bank approved a $1,500,000 loan facility for the Company
to use to fund building construction/renovation costs to accommodate
tenants under lease. The overall term of the facility is five years
with a one year line of credit, to be taken down as needed. The
initial twelve month period is to be on an interest only basis,
payable monthly, with the principal balance outstanding to be
converted to a four year fully amortizing term loan, payable with
monthly payments to be first applied to the payment of interest, and
second, to the payment of the principal indebtedness. The interest
rate for advances under the line and the term loan will be the bank's
prime rate of interest on a floating basis. The leases between the
Company and two of its tenants in the Brooklyn (Jowein Building)
renovated area have been assigned to the bank as collateral for the
loan. There is no prepayment penalty for early payoff of the loan.
The Company has taken down $1,250,000 as of the date of this report.
(b)Mortgage is held by an affiliated corporation owned by members,
including certain directors of the Company, of the family of the late
Joe Weinstein, former Chairman of the Board of Directors. Interest
and amortization of principal are paid quarterly. The mortgage was
due to mature on March 31, 1996. On September 6, 1995, the maturity
date of the mortgage was extended to March 31, 1998. The interest
rate of 10% will continue until March 31, 1996 and from April 1, 1996
the interest rate will be established at a bank's prevailing rate as
at March 31, 1996. During the renewal period there will be no change
in the constant quarterly payments of interest and principal in the
amount of $37,263.
(c)On October 28, 1994, the existing first mortgage loan balance on the
Fishkill property was paid down by a $200,000 payment and the due date
of the mortgage loan was extended for a period of five years from
November 1, 1994. The annual interest rate was reduced from 10% to 9%
and the principal and interest payments are to be made in constant
monthly amounts based upon a fifteen year payout period.
(d)The mortgage loan, which is self-amortizing, matures September 30,
2002. The loan is payable at an annual interest rate of 7%. Under
the terms of the loan, constant monthly payments, including interest
and principal, commenced April 1, 1994 in the amount of $33,767, until
October 1, 1997, at which time the monthly payments of interest and
principal increase to $36,540.
<PAGE>
5. Long-Term Debt - Other:
Long-Term debt - other consists of the following:
<TABLE>
<CAPTION>
January 31, July 31,
1996 1995
--------------- ---------------
<S> <C> <C>
Deferred compensation * $520,000 $520,000
Lease security deposits ** 539,833 157,597
------------- -------------
Total $1,059,833 $677,597
============= =============
</TABLE>
* In fiscal 1964 the Company entered into a deferred compensation
agreement with its then Chairman of the Board. This agreement, as
amended, provides for the $520,000 to be paid in monthly
installments of $8,666.67 for a period of 60 months, payable upon
the expiration of his employment, retirement or permanent
disability as defined in the agreement, or death.
**Does not include two irrevocable letters of credit totaling
$110,000 at January 31, 1996 and three irrevocable letters of
credit totaling $410,000 at July 31, 1995, provided by two and
three tenants, respectively.
6. Property and Equipment - Net:
<TABLE>
<CAPTION>
January 31, July 31,
1996 1995
--------------- ---------------
<S> <C> <C>
Property and equipment - at cost:
Buildings and improvements $31,627,054 $30,867,736
Improvements to leased property 8,989,411 8,215,035
Fixtures and equipment 486,597 483,208
Land 4,008,835 4,008,835
Other 171,183 167,223
Construction in progress - 384,133
------------- -------------
45,283,080 44,126,170
Less accumulated depreciation and amortization 19,263,960 18,840,235
------------- -------------
Property and equipment - net $26,019,120 $25,285,935
============= =============
</TABLE>
7. Income Taxes:
Effective August 1, 1993, the Company adopted Statement of Financial
Accounting Standards No. 109 "Accounting for Income Taxes" ("FAS
109").
8. Payable to Securities Broker:
The Company borrowed funds, payable on demand, from a securities
broker. The loan balance at January 31, 1996 in the amount of
$1,310,679, secured by the Company's marketable securities, accrues
interest, which at January 31, 1996, was at the annual rate of
7.75%.
9. Unbilled Receivables:
Unbilled receivables represent the excess of scheduled rental income
recognized on a straight-line basis over rental income as it becomes
receivable according to the provisions of each lease.
10. Employees' Retirement Plan:
The Company sponsors a noncontributory Money Purchase Plan covering
substantially all of its employees. Operations were charged $35,000
and $70,000 as contributions to the Plan for the three and six
months ended January 31, 1996, respectively, and $36,000 and $70,000
as contributions to the Plan for the three and six months ended
January 31, 1995, respectively.
11. Cash Flow Information:
For purposes of reporting cash flows, the Company considers cash
equivalents to consist of short-term highly liquid investments with
maturities of six months or less, which are readily convertible into
cash.
<TABLE>
Supplemental disclosure:
<CAPTION>
Six Months Ended
January 31,
------------------------------
1996 1995
------------------------------
<S> <C> <C>
Interest paid $341,827 $349,107
Income taxes paid $70,205 $22,817
</TABLE>
<PAGE>
12. Financial Accounting Standards No. 121:
In May 1995, the Financial Accounting Standards Board issued
Statement of Financial Standards No. 121 ("FAS 121"), "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed Of", effective for fiscal years beginning after December
15, 1995. FAS 121 requires the recognition of an impairment loss
related to long-lived assets and certain identifiable intangibles
whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. The Company
believes that the adoption of the new accounting standard will not
have any effect on the consolidated financial statements.
13. Financial Instruments and Credit Risk Concentrations:
Financial instruments that are potentially subject to concentrations
of credit risk consist principally of marketable securities-other
investments, cash equivalents and receivables. Marketable
securities-other investments and cash equivalents are placed with
high credit quality financial institutions and instruments to
minimize risk.
The Company derives rental income from twenty-five tenants, of which
two tenants each accounted for more than 10% of rental income during
the quarter ended January 31, 1996. The City of New York is one of
the two tenants and the other tenant is 510 Fulton Street Realty
Associates, the owners of which are long established in business.
McCrory Stores Corporation ("McCrory"), which occupied space in the
Fulton Mall in downtown Brooklyn, New York, and whose lease extended
to April 29, 2010 and accounted for approximately 14% of the 1993
annual rental income of the Company, filed for Chapter 11 bankruptcy
protection from creditors on February 26, 1992. McCrory made
application to the United States Bankruptcy Court for authorization
to reject the lease agreement, as amended, between the Company, as
landlord, and McCrory, as tenant, effective January 31, 1994. The
United States Bankruptcy Court authorized McCrory to reject such
lease agreement effective January 31, 1994 by order signed on
January 21, 1994. The Company has filed a Proof of Claim with the
United States Bankruptcy Court, Southern District of New York in the
total amount of $7,753,732 which amount includes $7,667,082 for
damages arising from the rejection of the lease and $86,650 for pre-
petition rental obligations. The Company has not included this
claim in its financial statements due to the uncertainty of the
ultimate court determined amount. McCrory has not as yet filed a
Plan of Reorganization with the Bankruptcy Court. The Company has
leased 50,000 square feet of the 99,000 square feet of space
surrendered by McCrory.
The lease with IBM, a former tenant in the Fishkill, New York
property, expired on March 31, 1994. The IBM lease previously
accounted for approximately 8% of the annual rental income of the
Company. On August 31, 1995, the Company leased to the U.S. Post
Office 25,000 square feet of the 100,000 square feet of space
vacated by IBM. Occupancy commenced in December 1995.
Jamesway Corporation, which occupied retail space in the Fishkill,
New York property, filed for Chapter 11 bankruptcy protection from
creditors on July 19, 1993. Jamesway emerged from bankruptcy on
January 28, 1995. Jamesway, which was expected to account for
approximately 5.2% of the annual rental income of the Company for
the fiscal year ending July 31, 1996, and whose lease extended to
January 31, 2005, filed for chapter 11 bankruptcy protection from
creditors again on October 18, 1995. Jamesway, with the authority
from the bankruptcy court, conducted a Going Out Of Business Sale at
all of its stores and closed the Fishkill store during January,
1996. Jamesway rejected its lease in the Fishkill location with the
approval of the United States Bankruptcy Court, effective February
29, 1996.
The Company intends to file a Proof of Claim with the United States
Bankruptcy Court, Southern District of New York in the amount of
$853,478 for damages arising from the rejection of the lease. The
Company has made no provision in its financial statements for post-
petition damages in the amount of $821,507 relating to the lease
rejection. Negotiations have been in progress to lease
approximately 70,000 square feet of the 90,200 square feet occupied
by Jamesway.
14. Commitments and Contingencies:
There are various lawsuits and claims pending against the Company.
It is the opinion of management that the resolution of these matters
will not have a material adverse effect on the Company's Financial
Statements.
<PAGE>
J. W. MAYS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Results of Operations:
Three Months Ended January 31, 1996 Compared to the Three Months Ended
January 31, 1995:
Operations for the three months ended January 31, 1996 resulted in an
after tax net loss of $166,598, or $.08 per share, after the write off of
a bad debt amounting to $424,011 relating to the rejection by a tenant of
its lease, discussed below. There was no comparable item in the 1995
three month period. The comparable 1995 quarter resulted in an after tax
net loss of $53,376, or $.02 per share.
Rental income in the current three months increased to $2,468,181 from
$2,109,155 in the comparable 1995 three months, principally due to the
addition of three new tenants.
Real estate operating expenses increased to $1,506,188 from $1,402,653 in
the 1995 period principally due to increased maintenance and fuel costs.
Adminintrative and general expenses increased to $891,624 from $500,996
principally due to the write off of the bad debt of $424,011 discussed
below, offset in part by decreased insurance and legal and professional
costs.
The Company reports scheduled rental income recognized on a straight-line
basis rather than rental income as it becomes receivable according to the
provisions of the lease, in compliance with the provisions of Statement
of Financial Accounting Standards No. 13, "Accounting for Leases". The
excess of the scheduled rental income of Jamesway recognized on a
straight line basis over rental income reported through January 31, 1996,
amounts to $424,011 and such amount has been written off and classified
as a bad debt.
Depreciation and amortization expense in the current three months
increased to $222,684 from $209,555 in the three months ended January 31,
1995 because of additional improvements to property.
Interest expense exceeded investment income by $108,283 in the current
quarter and by $56,327 in the comparable 1995 quarter, principally due to
the increased interest on the broker loan discussed in Note 8 and the
loan facility discussed in Note 4 (a) to Consolidated Financial
Statements.
Six Months Ended January 31, 1996 Compared to the Six Months Ended
January 31, 1995
Operations for the six months ended January 31, 1996 resulted in an after
tax net loss of $236,120, or $.11 per share, after the write off of a bad
debt amounting to $424,011 relating to the rejection by a tenant of its
lease, discussed above. There was no comparable item in the 1995 six
month period. Operations for the comparable 1995 six month period
resulted in an after tax net loss of $110,552, or $.05 per share.
The overall net loss in the 1996 six month period amounted to $236,120,
or $.11 per share, after the write off of the bad debt discussed above.
The overall net loss for the 1995 six month period amounted to $88,783,
or $.04 per share, after the cumulative effect (an increase of income) of
a change in accounting for certain investments in debt and equity
securities, in the amount of $21,769, or $.01 per share. There was no
comparable item in the 1996 six month period.
Rental income in the current six months increased to $4,494,435 from
$4,179,904 in the 1995 six month period principally due to the addition
of three new tenants.
Real estate operating expenses increased to $2,778,806 from $2,757,216 in
the 1995 comparable period principally due to increased maintenance and
fuel costs, offset in part, by an allowed credit for utility costs and a
decrease in real estate taxes in the 1996 six month period.
Administrative and general expenses increased to $1,407,904 from
$1,022,200 principally due to the bad debt write off of $424,011,
discussed above, offset in part by decreased insurance and legal and
professional costs.
Depreciation and amortization expense in the current six months
increased to $439,768 from $417,984 in the six months ended January 31,
1995 because of additional improvements to property.
Interest expense exceeded interest income in the amount of $215,077 in
the current six month period and by $121,056 in the six months ended
January 31, 1995 principally due to the increased interest on the broker
loan discussed in Note 8 and the loan facility discussed in Note 4 (a) to
Consolidated Financial Statements.
Liquidity and Capital Resources:
The Company has been operating as a real estate enterprise since the
discontinuance of the retail department store segment of its operations
on January 3, 1989.
The leasing of 50,000 square feet of space in the Jowein Building located
in the Fulton Mall in downtown Brooklyn, New York to two chain store
tenants for retail space and the leasing of 25,000 square feet to the U.
S. Post Office in Fishkill, New York will provide additional working
captial for the Company. The terms of the Brooklyn leases commenced in
November, 1995 and the Fishkill lease in December, 1995.
On August 17, 1995, the Company entered into an agreement with a bank
wherein the bank approved a $1,500,000 loan facility for the Company to
use to fund building construction/renovation costs to accommodate tenants
under the lease. The Company has taken down $1,250,000 as of the date of
this report (see Note 4 (a) to Consolidated Financial Statements).
The Company had working capital of $2,342,254, with a ratio of current
assets to current liabilities of 2 to 1 at January 31, 1996.
Management considers current working capital and borrowing capabilities
adequate to cover the Company's planned operating and capital
requirements.
<PAGE>
Part II - Other Information
Item 6 - Exhibits and Reports on Form 8-K
(a) List of Exhibits:
Sequentially
Exhibit Numbered
Number Exhibit Page
(2) Plan of acquisition, reorganization, arrangement,
liquidation or succession. N/A
(4) Instruments defining the rights of security holders,
including indentures. N/A
(10) Material contracts. N/A
(11) Statement re computation of per share earnings. N/A
(15) Letter re unaudited interim financial information. N/A
(18) Letter re change in accounting principles. N/A
(19) Report furnished to security holders. N/A
(22) Published report regarding matters submitted to vote
of security holders. N/A
(24) Power of attorney. N/A
(27) Financial data schedule. N/A
(99) Additional exhibits. N/A
(b) Reports on Form 8-K - A report on Form 8-K was filed
by the Registrant during the quarter for which this
report on Form 10-Q is being filed.
Item reported - Change in Registrant's certifying
accountants.
Financial Statements filed - None
Date of Report filed - January 11, 1996
A report on Form 8-K/A, an amendment to the above
report on Form 8-K, was filed by the Registrant on
February 6, 1996.
<PAGE>
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.
J.W. MAYS, Inc.
(Registrant)
Date March 8, 1996 Lloyd J. Shulman
-----------------------------
Lloyd J. Shulman, Co-Chairman
Date March 8, 1996 Alex Slobodin
-----------------------------------
Alex Slobodin, Exec. Vice-President
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from the first quarter Form 10-Q and is qualified in its entirety
by reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jul-31-1996
<PERIOD-START> Aug-01-1995
<PERIOD-END> Jan-31-1996
<CASH> 441,990
<SECURITIES> 2,919,851
<RECEIVABLES> 314,358
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,762,545
<PP&E> 45,283,080
<DEPRECIATION> 19,263,960
<TOTAL-ASSETS> 37,491,104
<CURRENT-LIABILITIES> 2,420,291
<BONDS> 0
<COMMON> 2,178,297
0
0
<OTHER-SE> 24,947,231
<TOTAL-LIABILITY-AND-EQUITY> 37,491,104
<SALES> 0
<TOTAL-REVENUES> 4,494,435
<CGS> 0
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<OTHER-EXPENSES> 4,626,478
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 340,243
<INCOME-PRETAX> (347,120)
<INCOME-TAX> (111,000)
<INCOME-CONTINUING> (236,120)
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<EXTRAORDINARY> 0
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<NET-INCOME> (236,120)
<EPS-PRIMARY> (.11)
<EPS-DILUTED> .00
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