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SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Six Months Ended June 30, 2002 Commission File No. 0-8488
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TWENTY SERVICES, INC.
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(Exact name of Registrant as specified in its Charter)
ALABAMA 63-0372577
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(State or other jurisdiction of (I.R.S. Employer ID No.)
incorporation or organization)
20 Cropwell Drive, Suite 100 Pell City, Alabama 35128
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(Address or principal executive offices) (City, State, Zip)
Registrant's telephone number, including area code 205-884-7932
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Former name, former address, and former fiscal year, if changed since last
report.
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Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past ninety (90) days.
YES X NO
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Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the period of this report.
Par Value $0.10 per share 1,283,068 shares
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TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
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Cash and temporary investments $ 134,904 $ 206,208
Marketable securities 1,902,815 1,813,084
Investment-American Equity Investment
Life Holding Company 694,937 694,937
Receivables, Net 80,879 86,818
Other assets 46,689 41,690
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Total assets $ 2,860,224 $ 2,842,737
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LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accounts payable and accrued expenses $ 39,354 $ 50,508
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Stockholder's equity:
Preferred stock, Cumulative $0.10 par value 50,511 50,511
Common stock, par value $0.10 128,307 128,307
Additional paid-in capital 1,679,978 1,618,630
Retained earnings 1,259,188 1,283,610
Net unrealized gain (loss) on
available-for-sale securities (52,301) (52,301)
Less investment in Twenty Services Holding (60,000) (60,000)
Treasury Stock (184,813) (176,528)
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Net stockholder's equity 2,820,870 2,792,229
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Total liabilities and stockholder's equity $ 2,860,224 $2,842,737
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TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ending Six Months Ending
June 30 June 30,
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2002 2001 2002 2001
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Revenues $33,685 $44,182 $75,460 $82,383
Expenses:
General and administrative 31,159 41,452 64,478 74,434
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Income from operations 2,526 2,730 10,982 7,949
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Net income $ 2,526 $ 2,730 $10,982 $ 7,949
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Weighted average number of
common shares outstanding 1,283,068 1,283,068 1,283,068 1,283,068
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Earnings per share *
Net Income $ .00 $ .00 $ .00 $ .00
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* After giving effect on a pro-rata basis to anticipated preferred
dividends of $0.07 per share per annum on 505,110 shares.
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TWENTY SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six months ended
June 30,
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2002 2001
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Cash flows from operating activities
Interest and dividends received $ 75,460 $82,383
Cash paid employees and suppliers (75,932) (68,422)
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Net cash (used) provided by operating activities (472) 13,961
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Cash flows from investing activities:
Purchase of securities, net (27,189) (39,560)
Principal collected on held-to-held-securities - 73,271
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Net cash provided (used) by investing activities (27,189) 33,711
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Cash flows from financing activities:
Preferred stock dividends (35,358) (35,358)
Purchase Treasury Stock (8,285) (35,265)
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Net cash used by financing activities (43,643) (70,623)
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Net (decrease) in cash (71,304) (22,951)
Cash and temporary investments,
beginning of period 206,208 165,009
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Cash and temporary investments,
end of period $134,904 $142,058
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the six months ended June 30, 2002, the Registrant's
liquidity remained stable. The Company has no notes payable nor long
term debt and does not anticipate the need for borrowing in the near
future. The Registrant has sufficient cash and temporary cash
investments to meet its short term liquidity needs. Should long term
liquidity needs exceed cash and temporary cash investments, then the
Registrant would dispose of marketable securities as it deems
appropriate. Current trends and known demands and commitments do not
create a need for liquidity in excess of the Company's current
liabilities to generate liquidity.
The Company anticipates that its operating activities and its
investing activities will generate net cash flows and that its financing
activities will continue to use cash flows.
RESULTS OF OPERATIONS
The Registrant reported a net income of $10,982 for the six
months ended June 30, 2002 as compared to the net income of $7,949 for
the corresponding 2001 period.
REVENUES
Revenues for the six months ended June 30, 2002 of $75,460 were
comparable to $82,383 for the corresponding 2001 period. The decrease
was due primarily to a decrease in interest income.
EXPENSES
General and administrative expenses were $64,478 in 2002 as
compared to $74,434 for the corresponding 2001 period. The decrease was
due primarily to a decrease in professional services.
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The above financial statements include all the adjustments which, in the
opinion of Management, are necessary for a fair presentation of such
financial information in conformity with generally accepted accounting
principles. All adjustments are of a normal recurring nature.
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings ........................................... None
Item 2. Changes in Securities ....................................... None
Item 3. Defaults Upon Senior Securities ............................. None
Item 4. Submission of Matters to a Vote of Security Holders ......... None
Item 5. Other Information ........................................... None
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TWENTY SERVICES, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Twenty Services, Inc. (the "Company")
on Form 10-Q for the period ending June 30, 2002 as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), we, David J. Noble,
Chairman of the Board of Directors of the Company and Principal Executive
Officer, and Jack C. Bridges, Executive Vice-President of the Company, certify,
pursuant to 18 U.S.C. (S) 1350, as adopted pursuant to (S) 906 of the
Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
/s/ DAVID J. NOBLE /s/ JACK C. BRIDGES
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David J. Noble Jack C. Bridges
Chairman and Director Executive Vice-President
of the Company and August 8, 2002
Principal Executive Officer
August 8, 2002
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