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, 2000
[ ] 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 .
Number of shares outstanding of the issuer's common stock as of the latest
practicable date.
Class Outstanding at March 7, 2000
Common Stock, $1 par value 2,135,780 shares
This report contains 15 pages.
<PAGE>
J. W. MAYS, INC.
INDEX
Page No.
Part I - Financial Information:
Consolidated Balance Sheet 3
Consolidated Statement of Income
and Retained Earnings 4
Consolidated Statement of Comprehensive Income 4
Consolidated Statement of Cash Flows 5
Notes to Consolidated Financial Statements 6 - 11
Management's Discussion and Analysis of Results
of Operations and Financial Condition 12 - 13
Part II - Other Information 14
<PAGE>
<TABLE>
<CAPTION>
J. W. MAYS, INC.
CONSOLIDATED BALANCE SHEET
January 31, July 31,
ASSETS 2000 1999
--------------------------------------------------------------- --------------- ---------------
(Unaudited) (Audited)
<S> <C> <C>
Property and Equipment - Net (Notes 5 and 7) $29,123,490 $28,786,035
------------- -------------
Current Assets:
Cash and cash equivalents 1,759,819 1,489,843
Marketable securities (Note 4) 40,805 39,993
Receivables (Note 8) 138,072 415,243
Income taxes refundable 10,635 38,727
Deferred income taxes 102,000 79,000
Security deposits 43,756 6,165
Prepaid expenses 840,500 960,614
------------- -------------
Total current assets 2,935,587 3,029,585
------------- -------------
Other Assets:
Deferred charges 2,565,914 2,562,715
Less accumulated amortization 1,400,307 1,341,887
------------- -------------
Net 1,165,607 1,220,828
Security deposits 602,622 633,424
Unbilled receivables (Note 8) 4,583,148 4,423,417
Unbilled receivables - affiliated company (Note 8) 454,844 545,812
Receivables 5,908 12,534
Marketable securities (Note 4) 2,883,690 3,005,401
------------- -------------
Total other assets 9,695,819 9,841,416
------------- -------------
TOTAL ASSETS $41,754,896 $41,657,036
============= =============
LIABILITIES AND SHAREHOLDERS ' EQUITY
---------------------------------------------------------------
Long-Term Debt:
Mortgages payable (Note 5) $6,066,453 $6,439,933
Other (Note 6) 405,553 490,716
------------- -------------
Total long-term debt 6,472,006 6,930,649
------------- -------------
Deferred Income Taxes 1,888,000 1,740,000
------------- -------------
Current Liabilities:
Accounts payable 43,664 29,728
Payroll and other accrued liabilities 461,472 380,140
Other taxes payable 3,833 2,205
Current portion of long-term debt - mortgages payable (Note 5) 1,368,831 1,396,711
Current portion of long-term debt - other (Note 6) 147,756 110,165
------------- -------------
Total current liabilities 2,025,556 1,918,949
------------- -------------
Total liabilities 10,385,562 10,589,598
------------- -------------
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 (loss) on available for sale securities (52,963) 136,998
Retained earnings 26,187,857 25,696,000
------------- -------------
31,659,436 31,357,540
Less common stock held in treasury, at cost - 42,517
shares at January 31, 2000 and July 31, 1999 290,102 290,102
------------- -------------
Total shareholders' equity 31,369,334 31,067,438
------------- -------------
Contingencies (Note 12)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $41,754,896 $41,657,036
============= =============
See Notes to Consolidated Financial Statements.
-3-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
Three Months Ended Six Months Ended
January 31, January 31,
<S> <C> <C> <C> <C>
--------------- ---------------- --------------- ----------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Rental income (Note 8) $2,623,769 $2,521,114 $5,225,271 $5,097,616
Rental income - affiliated company 103,402 103,402 206,805 206,805
-------------- -------------- -------------- --------------
Total revenues 2,727,171 2,624,516 5,432,076 5,304,421
-------------- -------------- -------------- --------------
Expenses
Real estate operating expenses 1,438,043 1,405,044 2,796,885 2,720,181
Administrative and general expenses 620,188 541,826 1,162,501 1,061,325
Depreciation and amortization 248,641 254,369 494,882 500,572
-------------- -------------- -------------- --------------
Total expenses 2,306,872 2,201,239 4,454,268 4,282,078
-------------- -------------- -------------- --------------
Income from operations before investment income,
interest expense and income taxes 420,299 423,277 977,808 1,022,343
-------------- -------------- -------------- --------------
Investment income and interest expense:
Investment income 69,794 75,561 134,189 139,659
Interest expense (Notes 5 and 10) (158,736) (175,709) (319,140) (348,558)
-------------- -------------- -------------- --------------
(88,942) (100,148) (184,951) (208,899)
-------------- -------------- -------------- --------------
Income before income taxes 331,357 323,129 792,857 813,444
Income taxes provided 134,000 146,000 301,000 315,000
-------------- -------------- -------------- --------------
Net income 197,357 177,129 491,857 498,444
Retained earnings, beginning of period 25,990,500 24,853,493 25,696,000 24,532,178
-------------- -------------- -------------- --------------
Retained earnings, end of period $26,187,857 $25,030,622 $26,187,857 $25,030,622
============== ============== ============== ==============
Net income per common share (Note 2) $.09 $.08 $.23 $.23
============== ============== ============== ==============
Dividends per share $- $- $- $-
============== ============== ============== ==============
Average common shares outstanding 2,135,780 2,135,780 2,135,780 2,135,780
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Three Months Ended Six Months Ended
January 31, January 31,
--------------- ---------------- --------------- ----------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income $197,357 $177,129 $491,857 $498,444
-------------- -------------- -------------- --------------
Other comprehensive income, net of tax (Note 3)
Unrealized gain (loss) on available-for-sale securities:
Net of taxes (benefit) of $(53,000) and $17,000 for the
three months ended January 31, 2000 and 1999,
respectively, and $(98,000) and $6,000 for the six
months ended January 31, 2000 and and 1999 respectively.
(103,130) 71,880 (189,961) 12,975
============== ============== ============== ==============
Less reclassification adjustment - (8,366) - (8,366)
-------------- -------------- -------------- --------------
Other comprehensive income (loss) (103,130) 63,514 (189,961) 4,609
-------------- -------------- -------------- --------------
Comprehensive Income $94,227 $240,643 $301,896 $503,053
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
-4-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended
January 31,
-------------- ---------------
2000 1999
--------------- ---------------
<S> <C> <C>
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net income $491,857 $498,444
Adjustments to reconcile income to
net cash provided by operating activities:
Amortization of premium on marketable debt securities - (333)
Realized loss on marketable securities - (8,366)
Depreciation and amortization 494,882 500,572
Amortization of deferred expenses 105,206 110,910
Other assets - deferred expenses (49,985) (35,577)
- unbilled receivables (159,731) (198,595)
- unbilled receivables - affiliated company 90,968 90,969
- receivables 6,626 108,546
- receivables - affiliated company - 87,943
Deferred income taxes 223,000 242,000
Changes in:
Receivables 277,171 191,630
Prepaid expenses 120,114 123,896
Income taxes refundable 28,092 (16,727)
Accounts payable 13,936 16,672
Payroll and other accrued liabilities 81,332 (89,683)
Income taxes payable - (82,348)
Other taxes payable 1,628 1,246
------------- -------------
Cash provided by operating activities 1,725,096 1,541,199
------------- -------------
Cash Flows From Investing Activities:
Capital expenditures (832,337) (673,953)
Security deposits (6,789) 1,129
Marketable securities:
Receipts from sales or maturities 50,000 150,874
Payments for purchases (217,062) (325,609)
------------- -------------
Cash (used) by investing activities (1,006,188) (847,559)
------------- -------------
Cash Flows From Financing Activities:
Increase (decrease) - security deposits 4,428 (3,862)
Payments - mortgage and other debt (453,360) (460,402)
------------- -------------
Cash (used) by financing activities (448,932) (464,264)
------------- -------------
Increase in cash 269,976 229,376
Cash and cash equivalents at beginning of period 1,489,843 1,047,979
------------- -------------
Cash and cash equivalents at end of period $1,759,819 $1,277,355
============= =============
See Notes to Consolidated Financial Statements.
-5-
</TABLE>
<PAGE>
J. W. MAYS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Accounting Records:
The accounting records are maintained in accordance with generally accepted
accounting principles (GAAP). The preparation of the Company's financial
statements in accordance with GAAP, requires management to make estimates
that affect the reported consolidated balance sheets, consolidated
statements of income and retained earnings and consolidated statements of
comprehensive income, and related disclosures. Actual results could differ
from those estimates.
The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-Q. The July 31, 1999 balance sheet was derived
from audited financial statements but does not include all disclosures
required by GAAP. 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, 1999. 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, 2000.
2. Income Per Share of Common Stock:
Income per share has been computed by dividing the net income 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 income per share were 2,135,780 in each of
the three and six month periods ended January 31, 2000 and January 31,
1999. The Company's adoption of Statement of Financial Standards No. 128
("SFAS 128"), "Earnings Per Share", has had no effect on the computation of
previously reported earnings per share.
3. Recent Accounting Pronouncements:
In June 1997, SFAS No. 130, "Reporting Comprehensive Income" ("SFAS 130"),
was issued. SFAS 130 establishes standards for the reporting of
comprehensive income and its components. It requires all items that are
required to be recognized as components of comprehensive income be reported
in a financial statement that is displayed with the same prominence as
other income statement information. SFAS 130 is effective for financial
statements for periods beginning after December 15, 1997. Reclassification
of financial statements for earlier periods presented for comparative
purposes was required upon adoption.
In June 1997, SFAS No 131, "Disclosures about Segments of an Enterprise and
Related Information" ("SFAS 131"), was issued. SFAS 131 establishes
standards for the way that public business enterprises report information
about operating segments in annual financial statements and requires that
those enterprises report selected information about operating segments in
annual financial statements and in interim financial reports issued to
shareholders. SFAS 131 is effective for financial statements for periods
beginning after December 15, 1997.
In February 1998, the Financial Accounting Standards Board issued Statement
of Financial Standards No. 132, "Employers' Disclosures about Pensions and
Other Postretirement Benefits" ("SFAS 132"), effective for fiscal years
beginning after December 15, 1997. The Company's Retirement Plan is 100%
funded, with Company contributions made quarterly, and there will be no
additional liability recognized by the Company.
The adoption of SFAS 131 and SFAS 132 did not have an effect on the
Company's financial statements, and SFAS 130 is reflected in the January
31, 2000 financial statements.
<TABLE>
<CAPTION>
4. Marketable Securities:
The Company categorizes marketable securities 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.
<S> <C> <C> <C> <C> <C>
As of January 31, 2000, the Company's marketable securities were classified as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
------------- ------------- ------------- -------------
Current:
Certificate of deposit $40,805 $- $- $40,805
============= ============= ============= =============
Noncurrent:
Available for sale:
Equity securities $2,964,653 $- $80,963 $2,883,690
============= ============= ============= =============
Investment income consists of the following:
Three Months Ended Six Months Ended
January 31, January 31,
------------- ------------- ------------- -------------
2000 1999 2000 1999
------------- ------------- ------------- -------------
Interest income $18,771 $17,948 $37,126 $39,074
Dividend income 51,023 49,243 97,063 92,219
Gain on sale of securities - 8,370 - 8,366
------------- ------------- ------------- -------------
Total $69,794 $75,561 $134,189 $139,659
============= ============= ============= =============
-7-
</TABLE>
<PAGE>
5. Long-Term Debt:
<TABLE>
<CAPTION>
January 31, 2000 July 31, 1999
-------------------------------- --------------------------
Current
Annual Final Due Due Due Due
Interest Payment Within After Within After
Rate Date One Year One Year One Year One Year
------- -------- -------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Mortgages:
Jamaica, New York property (a) 8 1/2 % 4/01/07 $266,667 $3,000,000 $266,667 $3,133,333
Jowein building, Brooklyn, N.Y. (b) 9 % 3/31/00 630,405 - 675,050 -
Fishkill, New York property (c) 8 1/4 % 7/01/04 85,715 2,209,074 82,263 2,252,812
Circleville, Ohio property (d) 7 % 9/30/02 375,922 687,890 363,029 879,130
Other 8 1/2 % 5/01/01 10,122 169,489 9,702 174,658
-------------- -------------- -------------- ----------
Total $1,368,831 $6,066,453 $1,396,711 $6,439,933
============== ============== ============== ==========
</TABLE>
(a) The Company, on September 11, 1996, closed a loan with a bank in the
amount of $4,000,000. The loan is secured by a first mortgage lien covering
the entire leasehold interest of the Company, as tenant, in a certain ground
lease and building in the Jamaica property. Although the loan was closed on
September 11, 1996, the entire $4,000,000 was not drawn down until March 31,
1997. The interest rate on the loan is 8 1/2% for a period of five (5) years
and six (6) months, with such rate to change on the first day of the sixty-
seventh (67th) month of the term to a rate equal to the then prime rate plus
1/4%, fixed for the balance of the term. The loan is to become due and
payable on the first day of the month following the expiration of ten (10)
years and six (6) months from the closing date.
(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. Effective April 1, 1997, the maturity date of
the mortgage which was scheduled to be on March 31, 1998 was extended to
March 31, 2000. The interest rate increased from 7 3/8% to 9% commencing
April 1, 1997. During the extended period there will be no change in the
constant quarterly payments of interest and principal in the amount of
$37,263. The Company has commenced negotiations for the extension of this
mortgage.
(c)On June 2, 1999, the existing first mortgage loan balance on the Fishkill
property was extended for a period of five years. The annual interest rate
was reduced from 9% to 8 1/4% and the interest and principal payments are to
be made in constant monthly amounts based upon a fifteen (15) 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, are
currently in the amount of $36,540.
<PAGE>
6. Long-Term Debt - Other:
Long-Term debt - Other consists of the following:
<TABLE>
<CAPTION>
January 31, 2000 July 31, 1999
------------------------------- -------------------------------
Due Due Due Due
Within After Within After
One Year One Year One Year One Year
<S> <C> <C> <C> <C>
------------- ------------- ------------- -------------
Deferred compensation * $104,000 $95,333 $104,000 $147,333
Lease security deposits ** 43,756 310,220 6,165 343,383
------------- ------------- ------------- -------------
Total $147,756 $405,553 $110,165 $490,716
============= ============= ============= =============
</TABLE>
* In fiscal 1964 the Company entered into a deferred compensation
agreement with Max L. Shulman, its then Chairman of the Board. The
agreement, as amended, provides for a total of $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. Mr. Shulman retired
as an employee on December 31, 1996 and the monthly payments commenced
January, 1997.
**Does not include three irrevocable letters of credit totaling $275,000
at January 31, 2000 and at July 31, 1999, provided by three tenants.
7. Property and Equipment - at cost:
<TABLE>
<CAPTION>
January 31, July 31,
2000 1999
--------------- ---------------
<S> <C> <C>
Property:
Buildings and improvements $37,421,827 $36,775,251
Improvements to leased property 9,158,009 9,143,369
Land 4,008,835 4,008,835
Construction in progress 843,709 694,042
------------- -------------
51,432,380 50,621,497
Less accumulated depreciation 22,505,117 22,035,879
------------- -------------
Property - net 28,927,263 28,585,618
------------- -------------
Fixtures and equipment and other:
Fixtures and equipment 570,483 567,057
Other fixed assets 209,223 208,775
------------- -------------
779,706 775,832
Less accumulated depreciation 583,479 575,415
------------- -------------
Fixtures and equipment and other - net 196,227 200,417
------------- -------------
Property and equipment - net $29,123,490 $28,786,035
============= =============
</TABLE>
<PAGE>
8. Unbilled Receivables and Rental Income:
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.
Rental income includes $103,402 for each of the quarters ended January 31,
2000 and January 31, 1999, and $206,805 for each of the six month periods
ended January 31, 2000 and January 31, 1999, representing rentals from an
affiliated company.
Amounts due from the affiliated company are as follows:
<TABLE>
<CAPTION>
January 31, July 31,
2000 1999
------------------------------
<S> <C> <C>
$454,844 $545,812
</TABLE>
9. Employees' Retirement Plan:
The Company sponsors a noncontributory Money Purchase Plan covering
substantially all of its employees. Operations were charged $66,046 and
$120,086 as contributions to the Plan for the three and six months ended
January 31, 2000, respectively, and $59,147 and $109,647 as contributions
to the Plan for the three and six months ended January 31, 1999,
respectively.
10. 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 three months or less, which are readily convertible into
cash.
<TABLE>
Supplemental disclosure:
<CAPTION>
Six Months Ended
January 31,
------------------------------
2000 1999
---------- ----------
<S> <C> <C>
Interest paid $321,792 $351,288
Income taxes paid $49,908 $172,033
</TABLE>
11. Financial Instruments and Credit Risk Concentrations:
Financial instruments that are potentially subject to concentrations of
credit risk consist principally of marketable securities, cash and cash
equivalents and receivables. Marketable securities and cash and cash
equivalents are placed with high credit quality financial institutions and
instruments to minimize risk.
The Company derives rental income from thirty-eight tenants, of which one
tenant accounted for more than 10% of rental income during the six months
ended January 31, 2000. That tenant accounted for 15.98% of rental
income.
12. Contingencies:
McCrory Stores Corporation ("McCrory"), which occupied space in the
Company's Jowein building in the Fulton Mall in downtown Brooklyn, New
York, and whose lease, as amended, extended to April 29, 2010, filed for
relief under Chapter 11 of the Bankruptcy Code in February 1992. McCrory
rejected its lease, as amended, with the Company with the approval of the
Bankruptcy Court, effective January 31, 1994
Jamesway Corporation ("Jamesway"), which occupied retail space in the
Fishkill, New York property and whose lease extended to January 31, 2005,
filed for relief under Chapter 11 of the Bankruptcy Code on October 18,
1995. Jamesway rejected its lease for the Fishkill location with the
approval of the Bankruptcy Court, effective February 29, 1996, but
continued occupancy until March 22, 1996.
The Company has realized from Jamesway $465,811, or 49% on account of its
unsecured claim, and 100% of its allowed administrative claim of $54,887,
for a total of $520,698. The Company has realized from McCrory $36,602,
or 21.53% on account of its administrative claim of $170,000. McCrory
sold substantially all of its assets and the proceeds of sale were
insufficient to make any distribution to unsecured creditors.
The Company has made no provision in its financial statements for the
balance of its claims filed against Jamesway and McCrory due to the fact
that there are not likely to be any further distributions by either
company.
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 Consolidated 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, 2000 Compared to the Three Months Ended January
31, 1999:
In the three months ended January 31, 2000, the Company reported net income of
$197,357, or $.09 per share. In the comparable three months ended January 31,
1999, the Company reported net income of $177,129, or $.08 per share
Revenues in the current three months increased to $2,727,171 from $2,624,516
in the comparable 1999 three months.
Real estate operating expenses in the current three months increased to
$1,438,043 from $1,405,044 in the comparable 1999 three months primarily due
to an increase in real estate taxes, fuel costs and water and sewer costs,
partially offset by a decrease in maintenance costs.
Administrative and general expenses in the current three months increased to
$620,188 from $541,826 in the comparable 1999 three months primarily due to an
increase in payroll and legal and professional costs.
Depreciation and amortization expense in the current three months decreased to
$248,641 from $254,369 in the comparable 1999 three months.
Interest expense in the current three months exceeded investment income by
$88,942 and by $100,148 in the comparable 1999 three months. The decrease was
due to scheduled repayments of debt.
Six Months Ended January 31, 2000 Compared to the Six Months Ended January 31,
1999:
In the six months ended January 31, 2000, the Company reported net income of
$491,857, or $.23 per share. In the comparable six months ended January 31,
1999, the Company reported net income of $498,444, or $.23 per share
Revenues in the current six months increased to $5,432,076 from $5,304,421 in
the comparable 1999 six months.
Real estate operating expenses in the current six months increased to
$2,796,885 from $2,720,181 in the comparable 1999 six months primarily due to
an increase in real estate taxes, fuel costs, electric costs, water and sewer
costs and licenses and permit costs, partially offset by an decrease in
payroll and maintenance costs.
Administrative and general expenses in the current six months increased to
$1,162,501 from $1,061,325 in the comparable 1999 six months primarily due to
an increase in payroll costs.
Depreciation and amortization expense in the current six months decreased to
$494,882 from $500,572 in the comparable 1999 six months.
Interest expense in the current six months exceeded investment income by
$184,951 and by $208,899 in the comparable 1999 six months. The decrease was
due to scheduled repayments of debt.
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.
Management considers current working capital and borrowing capabilities
adequate to cover the Company's planned operating and capital requirements.
The Company's cash and cash equivalents amounted to $1,759,819 at January 31,
2000.
Cash Flows From Investing Activities:
Capital Expenditures: The Company had expenditures of approximately $204,499
for the six months ended January 31, 2000 for renovations at its Jamaica, New
York building.
The Company had expenditures of $342,793 for renovations at its Brooklyn, New
York building for the six months ended January 31, 2000. The Company is
building a new lobby at this location to enable the Company to attract
additional tenants to the property. The cost of the new lobby is estimated to
be approximately $680,000. Work on the lobby commenced in April 1999 and is
expected to be completed by April 2000. As of January 31, 2000, the Company
has expended a total of $519,078 for the lobby.
The Company had expenditures of $225,421 for the six months ended January 31,
2000 for the installation of heating, ventilating and air conditioning units
at its Fishkill, New York building, which work was completed in November 1999.
Year 2000 Compliance:
No material expenditures were required to resolve the Company's year 2000
issues. The Company did not experience any operational problems with the
computerized systems nor did the Company experience any problems with any of
its tenants, financial institutions, contractors, utility companies or other
service providers, relating to year 2000 issues.
<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 - No report on Form 8-K was required to be filed
by the Company during the six months ended January 31, 2000.
<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 7, 2000 Lloyd J. Shulman
----------------------
Lloyd J. Shulman
Chairman
Date March 7, 2000 Alex Slobodin
----------------------
Alex Slobodin
Exec. Vice-President
(Principal Financial Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from the contained quarterly 10-Q and is qualified in its
entirety by reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Jul-31-2000
<PERIOD-START> Aug-01-1999
<PERIOD-END> Jan-31-2000
<CASH> 1,759,819
<S>
<SECURITIES> 40,805
<RECEIVABLES> 138,072
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,935,587
<PP&E> 52,212,086
<DEPRECIATION> 23,088,596
<TOTAL-ASSETS> 41,754,896
<CURRENT-LIABILITIES> 2,025,556
<BONDS> 0
<COMMON> 2,178,297
0
0
<OTHER-SE> 29,191,037
<TOTAL-LIABILITY-AND-EQUITY> 41,754,896
<SALES> 0
<TOTAL-REVENUES> 5,432,076
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,454,268
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 319,140
<INCOME-PRETAX> 792,857
<INCOME-TAX> 301,000
<INCOME-CONTINUING> 491,857
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 491,857
<EPS-BASIC> 0.23
<EPS-DILUTED> 0
</TABLE>
