SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Nine Months Ended September 30, 2004
Commission File No. 0-8488
TWENTY SERVICES, INC.
(Exact name of Registrant as specified in its Charter)
| ALABAMA | 63-0372577 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer ID No.) | |
| 20 Cropwell Drive, Suite 100 | Pell City, Alabama 35128 | |
| (Address or principal executive offices) | (City, State, Zip) | |
Registrant’s telephone number, including area code 205-884-7932
Former name, former address, and former fiscal year, if changed since last report.
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety (90) days. YES x NO ¨
Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the period of this report.
| Par Value $0.10 per share | 1,283,068 shares |
TWENTY SERVICES, INC,
INDEX
| 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: | |||
| Exhibits and Reports on Form 8-K |
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| Exhibits | ||||
| 32.1 CERTIFICATION OF EXECUTIVE VICE-PRESIDENT |
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| 32.2 CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER |
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TWENTY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2004 |
December 31, 2003 |
|||||||
| ASSETS | ||||||||
| Cash and temporary investments |
$ | 35,764 | $ | 71,968 | ||||
| Marketable securities |
4,417,160 | 4,417,405 | ||||||
| Receivables, Net |
55,450 | 92,166 | ||||||
| Total assets |
$ | 4,508,374 | $ | 4,581,539 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Liabilities: |
||||||||
| Accounts payable and accrued expenses |
$ | 5,748 | $ | 34,477 | ||||
| Deferred tax liability |
317,248 | 329,748 | ||||||
| 322,996 | 364,225 | |||||||
| Stockholders’ 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 |
1,716,074 | 1,716,074 | ||||||
| Retained earnings |
1,428,729 | 1,430,061 | ||||||
| Accumulated other comprehensive income |
1,151,221 | 1,151,221 | ||||||
| Less investment in Twenty Services Holding |
(60,000 | ) | (60,000 | ) | ||||
| Treasury Stock |
(229,464 | ) | (198,860 | ) | ||||
| Net stockholders’ equity |
4,185,378 | 4,217,314 | ||||||
| Total liabilities and stockholders’ equity |
$ | 4,508,374 | $ | 4,581,539 | ||||
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TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(Unaudited)
| Three Months Ending September 30 |
Nine Months Ending September 30 | |||||||||||
| 2004 |
2003 |
2004 |
2003 | |||||||||
| Revenues |
$ | 38,972 | $ | 42,001 | $ | 102,177 | $ | 118,881 | ||||
| Expenses: |
||||||||||||
| General and administrative |
16,102 | 31,396 | 90,967 | 95,874 | ||||||||
| Income from operations and net income |
$ | 22,870 | $ | 10,605 | $ | 11,210 | $ | 23,007 | ||||
| Weighted average number of Common shares outstanding |
1,283,068 | 1,283,068 | 1,283,068 | 1,283,068 | ||||||||
| Earnings per share * |
$ | .00 | $ | .00 | $ | .00 | $ | .00 | ||||
| * | 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)
| Nine Months Ended September 30, |
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| 2004 |
2003 |
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| Cash flows from operating activities |
||||||||
| Interest and dividends received |
$ | 102,661 | $ | 118,881 | ||||
| Cash paid employees and suppliers |
(36,302 | ) | (95,874 | ) | ||||
| Net cash provided by operating activities |
66,359 | 23,007 | ||||||
| Cash flows from investing activities: |
||||||||
| Loans made (collected), net |
(36,176 | ) | 10,657 | |||||
| Sale (purchase) of securities |
(245 | ) | (36,180 | ) | ||||
| Net cash provided (used) by investing activities |
(36,421 | ) | (25,523 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Preferred stock dividends |
(35,538 | ) | (35,538 | ) | ||||
| Purchase Treasury Stock |
(30,604 | ) | (19,120 | ) | ||||
| Net cash (used) by financing activities |
(66,142 | ) | (54,658 | ) | ||||
| Net increase (decrease) in cash |
(36,204 | ) | (57,174 | ) | ||||
| Cash and temporary investments, beginning of period |
71,968 | 279,880 | ||||||
| Cash and temporary investments, end of period |
$ | 35,764 | $ | 222,706 | ||||
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MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended September 30, 2004, 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 $11,210 for the nine months ended September 30, 2004 as compared to the net income of $23,007 for the corresponding 2003 period. The decrease is due primarily to a reduction in interest and dividends.
REVENUES
Revenues for the nine months ended September 30, 2004 of $102,177 were comparable to $118,881 for the corresponding 2003 period.
EXPENSES
General and administrative expenses were $90,967 in 2004 as compared to $95,874 for the corresponding 2003 period.
The above financial statements include all the adjustments which, in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting principles. All adjustments are of a normal recurring nature.
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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.
| November 8, 2004 |
/s/ David J. Noble | |
| Date | David J. Noble | |
| Chairman/Director And Principal Executive Officer |
| November 8, 2004 | /s/ Jack C. Bridges | |
| Date | Jack C. Bridges | |
| Executive Vice-President |
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