-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Swv+fZYgd5TnLKoUFDImmYgvSUhtP6jB5d0NBek+bGZLoUA0KWR2+CNnSkLmntTH bH+nzadZ7ffEvvOI6761SQ== 0000054187-00-000002.txt : 20000310 0000054187-00-000002.hdr.sgml : 20000310 ACCESSION NUMBER: 0000054187-00-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000131 FILED AS OF DATE: 20000309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAYS J W INC CENTRAL INDEX KEY: 0000054187 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 111059070 STATE OF INCORPORATION: NY FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-03647 FILM NUMBER: 564193 BUSINESS ADDRESS: STREET 1: 9 BOND ST CITY: BROOKLYN STATE: NY ZIP: 11201-5805 BUSINESS PHONE: 7186247400 MAIL ADDRESS: STREET 1: 9 BOND STREET CITY: BROOKLYN STATE: NY ZIP: 11201-5805 10-Q 1 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. 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
J. W. MAYS, INC. CONSOLIDATED BALANCE SHEET January 31, July 31, ASSETS 2000 1999 --------------------------------------------------------------- --------------- --------------- (Unaudited) (Audited) 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-
J. W. MAYS, INC. CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS Three Months Ended Six Months Ended January 31, January 31, --------------- ---------------- --------------- ---------------- 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-
J. W. MAYS, INC. CONSOLIDATED STATEMENT OF CASH FLOWS Six Months Ended January 31, -------------- --------------- 2000 1999 --------------- --------------- (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-
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.
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. 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-
5. Long-Term Debt:
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 ------- -------- -------------- -------------- -------------- --------- 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 ============== ============== ============== ==========
(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. 6. Long-Term Debt - Other: Long-Term debt - Other consists of the following:
January 31, 2000 July 31, 1999 ------------------------------- ------------------------------- Due Due Due Due Within After Within After One Year One Year One Year One Year ------------- ------------- ------------- ------------- 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 ============= ============= ============= =============
* 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:
January 31, July 31, 2000 1999 --------------- --------------- 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 ============= =============
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:
January 31, July 31, 2000 1999 ------------------------------ $454,844 $545,812
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. Supplemental disclosure:
Six Months Ended January 31, ------------------------------ 2000 1999 ---------- ---------- Interest paid $321,792 $351,288 Income taxes paid $49,908 $172,033
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. 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. 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. 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) EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND QTR 10-Q
5 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. 1 3-MOS Jul-31-2000 Aug-01-1999 Jan-31-2000 1,759,819 40,805 138,072 0 0 2,935,587 52,212,086 23,088,596 41,754,896 2,025,556 0 2,178,297 0 0 29,191,037 41,754,896 0 5,432,076 0 0 4,454,268 0 319,140 792,857 301,000 491,857 0 0 0 491,857 0.23 0
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