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 April 30, 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 June 7, 2000
Common Stock, $1 par value 2,088,280 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
April 30, July 31,
ASSETS 2000 1999
--------------------------------------------------------------- --------------- ---------------
(Unaudited) (Audited)
<S> <C> <C>
Property and Equipment - Net (Notes 5 and 7) $29,415,323 $28,786,035
------------- -------------
Current Assets:
Cash and cash equivalents 1,744,343 1,489,843
Marketable securities (Note 4) 41,222 39,993
Receivables (Note 8) 70,062 415,243
Income taxes refundable - 38,727
Deferred income taxes 117,000 79,000
Security deposits - 6,165
Prepaid expenses 572,325 960,614
------------- -------------
Total current assets 2,544,952 3,029,585
------------- -------------
Other Assets:
Deferred charges 2,610,492 2,562,715
Less accumulated amortization 1,451,797 1,341,887
------------- -------------
Net 1,158,695 1,220,828
Security deposits 648,861 633,424
Unbilled receivables (Note 8) 4,665,042 4,423,417
Unbilled receivables - affiliated company (Note 8) 409,359 545,812
Receivables 2,488 12,534
Marketable securities (Note 4) 2,968,818 3,005,401
------------- -------------
Total other assets 9,853,263 9,841,416
------------- -------------
TOTAL ASSETS $41,813,538 $41,657,036
============= =============
LIABILITIES AND SHAREHOLDERS ' EQUITY
---------------------------------------------------------------
Long-Term Debt:
Mortgages payable (Note 5) $6,382,882 $6,439,933
Other (Note 6) 424,625 490,716
------------- -------------
Total long-term debt 6,807,507 6,930,649
------------- -------------
Deferred Income Taxes 2,025,000 1,740,000
------------- -------------
Current Liabilities:
Accounts payable 15,288 29,728
Payroll and other accrued liabilities 584,995 380,140
Income taxes payable 2,115 -
Other taxes payable 5,503 2,205
Current portion of long-term debt - mortgages payable (Note 5) 847,897 1,396,711
Current portion of long-term debt - other (Note 6) 104,000 110,165
------------- -------------
Total current liabilities 1,559,798 1,918,949
------------- -------------
Total liabilities 10,392,305 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 (38,235) 136,998
Retained earnings 26,481,528 25,696,000
------------- -------------
31,967,835 31,357,540
Less common stock held in treasury, at cost - 90,017
shares at April 30, 2000 and 42,517 shares at July 31, 1999 546,602 290,102
------------- -------------
Total shareholders' equity 31,421,233 31,067,438
------------- -------------
Contingencies (Note 12)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $41,813,538 $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 Nine Months Ended
April 30, April 30,
<S> <C> <C> <C> <C>
--------------- ---------------- --------------- ---------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Rental income (Note 8) $2,612,214 $2,563,578 $7,837,485 $7,661,194
Rental income - affiliated company 103,402 103,402 310,207 310,207
-------------- -------------- -------------- --------------
Total revenues 2,715,616 2,666,980 8,147,692 7,971,401
-------------- -------------- -------------- --------------
Expenses
Real estate operating expenses 1,387,532 1,336,721 4,184,417 4,056,902
Administrative and general expenses 541,803 487,629 1,704,304 1,548,954
Depreciation and amortization 251,941 252,569 746,823 753,141
-------------- -------------- -------------- --------------
Total expenses 2,181,276 2,076,919 6,635,544 6,358,997
-------------- -------------- -------------- --------------
Income from operations before investment income,
interest expense and income taxes 534,340 590,061 1,512,148 1,612,404
-------------- -------------- -------------- --------------
Investment income and interest expense:
Investment income 65,187 65,396 199,376 205,055
Interest expense (Notes 5 and 10) (150,856) (169,405) (469,996) (517,963)
-------------- -------------- -------------- --------------
(85,669) (104,009) (270,620) (312,908)
-------------- -------------- -------------- --------------
Income before income taxes 448,671 486,052 1,241,528 1,299,496
Income taxes provided 155,000 160,000 456,000 475,000
-------------- -------------- -------------- --------------
Net income 293,671 326,052 785,528 824,496
Retained earnings, beginning of period 26,187,857 25,030,622 25,696,000 24,532,178
-------------- -------------- -------------- --------------
Retained earnings, end of period $26,481,528 $25,356,674 $26,481,528 $25,356,674
============== ============== ============== ==============
Net income per common share (Note 2) $.14 $.16 $.37 $.39
============== ============== ============== ==============
Dividends per share $- $- $- $-
============== ============== ============== ==============
Average common shares outstanding 2,115,724 2,135,780 2,129,192 2,135,780
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Three Months Ended Nine Months Ended
April 30, April 30,
--------------- ---------------- --------------- ---------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income $293,671 $326,052 $785,528 $824,496
-------------- -------------- -------------- --------------
Other comprehensive income, net of tax (Note 3)
Unrealized gain (loss) on available-for-sale securities:
Net of taxes (benefit) of $8,000 and $0 for the three months
ended April 30, 2000 and 1999, respectively, and $(90,000)
and $6,000 for the nine months ended April 30, 2000 and
and 1999, respectively. 14,728 (40,131) (175,233) (27,156)
Less reclassification adjustment - 6,160 - (2,206)
-------------- -------------- -------------- --------------
Other comprehensive income (loss) 14,728 (33,971) (175,233) (29,362)
-------------- -------------- -------------- --------------
Comprehensive Income $308,399 $292,081 $610,295 $795,134
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
-4-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Nine Months Ended
April 30,
-------------- ---------------
2000 1999
--------------- ---------------
<S> <C> <C>
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net income $785,528 $824,496
Adjustments to reconcile income to
net cash provided by operating activities:
Amortization of premium on marketable debt securities - (494)
Realized loss on marketable securities - (2,206)
Depreciation and amortization 746,823 753,141
Amortization of deferred expenses 156,697 165,779
Other assets - deferred expenses (94,564) (58,962)
- unbilled receivables (241,625) (301,629)
- unbilled receivables - affiliated company 136,453 136,453
- receivables 10,046 164,568
- receivables - affiliated company - 87,943
Deferred income taxes 337,000 373,000
Changes in:
Receivables 345,181 208,859
Prepaid expenses 388,289 388,880
Income taxes refundable 38,727 (34,977)
Accounts payable (14,440) (3,028)
Payroll and other accrued liabilities 204,855 (5,199)
Income taxes payable 2,115 (82,348)
Other taxes payable 3,298 2,245
------------- -------------
Cash provided by operating activities 2,804,383 2,616,521
------------- -------------
Cash Flows From Investing Activities:
Capital expenditures (1,376,111) (919,817)
Security deposits (9,272) (2,325)
Marketable securities:
Receipts from sales or maturities 50,000 394,714
Payments for purchases (279,879) (450,987)
------------- -------------
Cash (used) by investing activities (1,615,262) (978,415)
------------- -------------
Cash Flows From Financing Activities:
Purchase of treasury stock (256,500) -
Increase (decrease) - security deposits 5,745 (1,922)
Payments - mortgages and other debt (683,866) (694,652)
------------- -------------
Cash (used) by financing activities (934,621) (696,574)
------------- -------------
Increase in cash 254,500 941,532
Cash and cash equivalents at beginning of period 1,489,843 1,047,979
------------- -------------
Cash and cash equivalents at end of period $1,744,343 $1,989,511
============= =============
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 2,115,724 in the
three month period ended April 30, 2000, 2,129,192 in the nine month period
ended April 30, 2000 and 2,135,780 in each of the three and nine month
periods ended April 30, 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 April 30,
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 April 30, 2000, the Company's marketable securities were classified as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
------------- ------------- ------------- -------------
Current:
Certificate of deposit $41,222 $- $- $41,222
============= ============= ============= =============
Noncurrent:
Available-for-sale:
Equity securities $3,027,053 $- $58,235 $2,968,818
============= ============= ============= =============
Investment income consists of the following:
Three Months Ended Nine Months Ended
April 30, April 30,
------------- ------------- ------------- -------------
2000 1999 2000 1999
___________ ___________ ___________ ___________
Interest income $16,737 $20,582 $53,863 $59,656
Dividend income 48,450 50,974 145,513 143,193
Gain (loss) on sale of securities - (6,160) - 2,206
------------- ------------- ------------- -------------
Total $65,187 $65,396 $199,376 $205,055
============= ============= ============= =============
-7-
</TABLE>
<PAGE>
5. Long-Term Debt:
<TABLE>
<CAPTION>
April 30, 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> <C>
Mortgages:
Jamaica, New York property (a) 8 1/2 % 4/01/07 $266,667 $2,933,333 $266,667 3,133,333
Jowein building, Brooklyn, N.Y. (b) 9 % 3/31/05 100,858 506,468 675,050 -
Fishkill, New York property (c) 8 1/4 % 7/01/04 87,495 2,186,521 82,263 2,252,812
Circleville, Ohio property (d) 7 % 9/30/02 382,539 589,738 363,029 879,130
Other 8 1/2 % 5/01/01 10,338 166,822 9,702 174,658
-------------- -------------- -------------- -----------
Total $847,897 $6,382,882 $1,396,711 6,439,933
============== ============== ============== ===========
</TABLE>
<PAGE>
(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, 2000, the maturity date of
the mortgage which was scheduled to be on March 31, 2000 was extended to
March 31, 2005. The interest rate remained at 9%. During the extended
period the constant quarterly payments of interest and principal increased
from $37,263 to $38,044. The mortgage loan is self-amortizing.
(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>
April 30, 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 $69,333 $104,000 $147,333
Lease security deposits ** - 355,292 6,165 343,383
------------- ------------- ------------- -------------
Total $104,000 $424,625 $110,165 $490,716
============= ============= ============= =============
</TABLE>
<PAGE>
* 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 April 30, 2000 and at July 31, 1999, provided by three tenants.
7. Property and Equipment - at cost:
<TABLE>
<CAPTION>
April 30, July 31,
2000 1999
--------------- ---------------
<S> <C> <C>
Property:
Buildings and improvements $37,882,480 $36,775,251
Improvements to leased property 9,158,009 9,143,369
Land 4,008,835 4,008,835
Construction in progress 902,040 694,042
------------- -------------
51,951,364 50,621,497
Less accumulated depreciation 22,744,236 22,035,879
------------- -------------
Property - net 29,207,128 28,585,618
------------- -------------
Fixtures and equipment and other:
Fixtures and equipment 595,273 567,057
Other fixed assets 209,223 208,775
------------- -------------
804,496 775,832
Less accumulated depreciation 596,301 575,415
------------- -------------
Fixtures and equipment and other - net 208,195 200,417
------------- -------------
Property and equipment - net $29,415,323 $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 April 30,
2000 and April 30, 1999, and $310,207 for each of the nine month periods
ended April 30, 2000 and April 30, 1999, representing rentals from an
affiliated company.
Amounts due from the affiliated company are as follows:
<TABLE>
<CAPTION>
April 30, July 31,
2000 1999
------------------------------
<S> <C> <C>
$409,359 $545,812
============= =============
</TABLE>
<PAGE>
9. Employees' Retirement Plan:
The Company sponsors a noncontributory Money Purchase Plan covering
substantially all of its employees. Operations were charged $58,476 and
$178,562 as contributions to the Plan for the three and nine months ended
April 30, 2000, respectively, and $51,625 and $161,272 as contributions to
the Plan for the three and nine months ended April 30, 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>
Nine Months Ended
April 30,
------------------------------
2000 1999
__________ __________
<S> <C> <C>
Interest paid $474,769 $522,579
Income taxes paid $78,158 $219,033
</TABLE>
<PAGE>
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 nine months
ended April 30, 2000. That tenant accounted for 15.89% 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 April 30, 2000 Compared to the Three Months Ended April 30,
1999:
In the three months ended April 30, 2000, the Company reported net income of
$293,671, or $.14 per share. In the comparable three months ended April 30,
1999, the Company reported net income of $326,052, or $.16 per share
Revenues in the current three months increased to $2,715,616 from $2,666,980
in the comparable 1999 three months.
Real estate operating expenses in the current three months increased to
$1,387,532 from $1,336,721 in the comparable 1999 three months primarily due
to an increase in real estate taxes, fuel, electric and water and sewer costs,
partially offset by a decrease in maintenance costs.
Administrative and general expenses in the current three months increased to
$541,803 from $487,629 in the comparable 1999 three months primarily due to an
increase in payroll, pension, medical and insurance costs.
Depreciation and amortization expense in the current three months decreased to
$251,941 from $252,569 in the comparable 1999 three months.
Interest expense in the current three months exceeded investment income by
$85,669 and by $104,009 in the comparable 1999 three months. The decrease was
due to scheduled repayments of debt.
Nine months Ended April 30, 2000 Compared to the Nine months Ended April 30,
1999:
In the nine months ended April 30, 2000, the Company reported net income of
$785,528, or $.37 per share. In the comparable nine months ended April 30,
1999, the Company reported net income of $824,496, or $.39 per share
Revenues in the current nine months increased to $8,147,692 from $7,971,401
in the comparable 1999 nine months.
Real estate operating expenses in the current nine months increased to
$4,184,417 from $4,056,902 in the comparable 1999 nine months primarily due to
an increase in real estate taxes, fuel, electric, water and sewer, and
licenses and permit costs, partially offset by an decrease in maintenance
costs.
Administrative and general expenses in the current nine months increased to
$1,704,304 from $1,548,954 in the comparable 1999 nine months primarily due to
an increase in payroll, pension, medical and insurance costs.
Depreciation and amortization expense in the current nine months decreased to
$746,823 from $753,141 in the comparable 1999 nine months.
Interest expense in the current nine months exceeded investment income by
$270,620 and by $312,908 in the comparable 1999 nine 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 $1,744,343 at April 30,
2000.
Cash Flows From Operating Activities:
Deferred Expenses: The Company accrued at April 30, 2000, a brokerage
commission in the amount of $20,991 relating to a tenant which exercised its
option at the Fishkill, New York property.
Cash Flows From Investing Activities:
Capital Expenditures: The Company had expenditures of approximately $552,755
for the nine months ended April 30, 2000 for renovations at its Jamaica, New
York building.
The Company had expenditures of $462,445 for renovations at its Brooklyn, New
York building for the nine months ended April 30, 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 June 2000. As of April 30, 2000, the Company has
expended a total of $616,142 for the lobby.
The Company had expenditures of $225,421 for the nine months ended April 30,
2000 for the installation of heating, ventilating and air conditioning
equipment at its Fishkill, New York building, which work was completed in
November 1999.
Cash Flows From Financing Activities:
The Company purchased 47,500 shares of its outstanding common stock in a
private transaction for a total purchase price of $256,500 in the three months
ended April 30, 2000.
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 three months ended April 30, 2000.
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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 June 7, 2000 Lloyd J. Shulman
---------------------------
Lloyd J. Shulman
Chairman
Date June 7, 2000 Alex Slobodin
----------------------------
Alex Slobodin
Exec. Vice-President
(Principal Financial Officer)
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