-----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, AuJdSrGppgVvfBk65jEGsbKLD+yBpnlydXNdh54IEAdn4OtwfpWTnXxgh0JZ6SD/ XhNNMFHFq015/+u6OshjWw== 0000054187-01-000002.txt : 20010312 0000054187-01-000002.hdr.sgml : 20010312 ACCESSION NUMBER: 0000054187-01-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010131 FILED AS OF DATE: 20010309 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: 1564371 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 0001.txt 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, 2001 [ ] 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, 2001 Common Stock, $1 par value 2,063,280 shares This report contains 16 pages. -1- 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 - 14 Part II - Other Information 15 -2-
J. W. MAYS, INC. CONSOLIDATED BALANCE SHEET January 31, July 31, ASSETS 2001 2000 --------------------------------------------------------------- --------------- --------------- (Unaudited) (Audited) Property and Equipment - Net (Notes 3 and 5) $30,305,211 $29,554,405 ------------- ------------- Current Assets: Cash and cash equivalents 1,097,186 1,529,082 Marketable securities (Note 4) 42,764 41,685 Receivables (Note 7) 345,795 215,872 Deferred income taxes 183,000 180,000 Security deposits - 33,125 Prepaid expenses 873,343 1,005,279 ------------- ------------- Total current assets 2,542,088 3,005,043 ------------- ------------- Other Assets: Deferred charges 2,794,794 2,619,188 Less accumulated amortization 1,535,723 1,466,651 ------------- ------------- Net 1,259,071 1,152,537 Security deposits 653,611 613,799 Unbilled receivables (Note 7) 4,735,808 4,735,115 Unbilled receivables - affiliated company (Note 7) 272,907 363,875 Marketable securities (Note 4) 3,326,632 3,059,770 ------------- ------------- Total other assets 10,248,029 9,925,096 ------------- ------------- TOTAL ASSETS $43,095,328 $42,484,544 ============= ============= LIABILITIES AND SHAREHOLDERS ' EQUITY --------------------------------------------------------------- Long-Term Debt: Mortgages payable (Note 5) $6,138,850 $5,999,844 Other (Note 6) 356,593 362,443 ------------- ------------- Total long-term debt 6,495,443 6,362,287 ------------- ------------- Deferred Income Taxes 2,617,000 2,333,000 ------------- ------------- Current Liabilities: Accounts payable 60,634 43,663 Payroll and other accrued liabilities 507,752 756,660 Income taxes payable 27,689 22,365 Other taxes payable 5,182 3,414 Current portion of long-term debt - mortgages payable (Note 5) 1,040,133 1,023,035 Current portion of long-term debt - other (Note 6) 95,333 137,125 ------------- ------------- Total current liabilities 1,736,723 1,986,262 ------------- ------------- Total liabilities 10,849,166 10,681,549 ------------- ------------- 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 on available for sale securities 272,732 63,117 Retained earnings 27,209,240 26,761,938 ------------- ------------- 33,006,514 32,349,597 Less common stock held in treasury, at cost - 115,017 shares at January 31, 2001 and 90,017 shares at July 31, 200 760,352 546,602 ------------- ------------- Total shareholders' equity 32,246,162 31,802,995 ------------- ------------- Contingencies (Note 11) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $43,095,328 $42,484,544 ============= ============= 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, --------------- ---------------- --------------- ---------------- 2001 2000 2001 2000 -------------- -------------- -------------- -------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues Rental income (Notes 7 and 10) $2,708,163 $2,623,769 $5,341,652 $5,225,271 Rental income - affiliated company 103,402 103,402 206,805 206,805 -------------- -------------- -------------- -------------- Total revenues 2,811,565 2,727,171 5,548,457 5,432,076 -------------- -------------- -------------- -------------- Expenses Real estate operating expenses 1,558,593 1,438,043 2,964,582 2,796,885 Administrative and general expenses 667,491 620,188 1,213,307 1,162,501 Bad debt (recovery) - - (47,532) - Depreciation and amortization 262,277 248,641 523,554 494,882 -------------- -------------- -------------- -------------- Total expenses 2,488,361 2,306,872 4,653,911 4,454,268 -------------- -------------- -------------- -------------- Income from operations before investment income, interest expense and income taxes 323,204 420,299 894,546 977,808 -------------- -------------- -------------- -------------- Investment income and interest expense: Investment income 61,502 69,794 121,790 134,189 Interest expense (Notes 5 and 9) (141,879) (158,736) (286,034) (319,140) -------------- -------------- -------------- -------------- (80,377) (88,942) (164,244) (184,951) -------------- -------------- -------------- -------------- Income before income taxes 242,827 331,357 730,302 792,857 Income taxes provided 109,000 134,000 283,000 301,000 -------------- -------------- -------------- -------------- Net income 133,827 197,357 447,302 491,857 Retained earnings, beginning of period 27,075,413 25,990,500 26,761,938 25,696,000 -------------- -------------- -------------- -------------- Retained earnings, end of period $27,209,240 $26,187,857 $27,209,240 $26,187,857 ============== ============== ============== ============== Net income per common share (Note 2) $.07 $.09 $.22 $.23 ============== ============== ============== ============== Dividends per share $- $- $- $- ============== ============== ============== ============== Weighted average common shares outstanding 2,063,280 2,135,780 2,074,829 2,135,780 ============== ============== ============== ============== See Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Three Months Ended Six Months Ended January 31, January 31, --------------- ---------------- --------------- ---------------- 2001 2000 2001 2000 -------------- -------------- -------------- -------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Income $133,827 $197,357 $447,302 $491,857 -------------- -------------- -------------- -------------- Other comprehensive income (loss), net of taxes Unrealized gain (loss) on available-for-sale securities: Net of taxes (benefit) of $76,000 and $(53,000) for the three months ended January 31, 2001 and 2000, respectively, and $108,000 and $(98,000) for the six months ended January 31, 2001 and 2000, respective 147,725 (103,130) 209,615 (189,961) Less reclassification adjustment 248 - 248 - -------------- -------------- -------------- -------------- Other comprehensive income (loss) 147,973 (103,130) 209,863 (189,961) -------------- -------------- -------------- -------------- Comprehensive Income $281,800 $94,227 $657,165 $301,896 ============== ============== ============== ============== See Notes to Consolidated Financial Statements. -4-
J. W. MAYS, INC. CONSOLIDATED STATEMENT OF CASH FLOWS Six Months Ended January 31, -------------- --------------- 2001 2000 --------------- --------------- (Unaudited) (Unaudited) Cash Flows From Operating Activities: Net income $447,302 $491,857 Adjustments to reconcile income to net cash provided by operating activities: Realized gain on marketable securities (248) - Depreciation and amortization 523,554 494,882 Amortization of deferred expenses 106,074 105,206 Other assets - deferred expenses (212,608) (49,985) - unbilled receivables (693) (159,731) - unbilled receivables - affiliated company 90,968 90,968 - receivables - 6,626 Deferred income taxes 173,000 223,000 Changes in: Receivables (129,923) 277,171 Prepaid expenses 131,936 120,114 Income taxes refundable - 28,092 Accounts payable 16,971 13,936 Payroll and other accrued liabilities (248,908) 81,332 Income taxes payable 5,324 - Other taxes payable 1,768 1,628 ------------- ------------- Cash provided by operating activities 904,517 1,725,096 ------------- ------------- Cash Flows From Investing Activities: Capital expenditures (1,274,360) (832,337) Security deposits (6,687) (6,789) Marketable securities: Receipts from sales or maturities 51,001 50,000 Payments for purchases (1,079) (217,062) ------------- ------------- Cash (used) by investing activities (1,231,125) (1,006,188) ------------- ------------- Cash Flows From Financing Activities: Borrowings - mortgage and other debt 580,000 - Increase - security deposits 4,358 4,428 Payments - mortgages and other debt (475,896) (453,360) Purchase of treasury stock (213,750) - ------------- ------------- Cash (used) by financing activities (105,288) (448,932) ------------- ------------- Increase (decrease) in cash (431,896) 269,976 Cash and cash equivalents at beginning of period 1,529,082 1,489,843 ------------- ------------- Cash and cash equivalents at end of period $1,097,186 $1,759,819 ============= ============= See Notes to Consolidated Financial Statements. -5-
J. W. MAYS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Accounting Records and Use of Estimates: 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, 2000 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 Form 10-K Annual Report for the year ended July 31, 2000. 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, 2001. 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 2,063,280 and 2,074,829 for the three and six months ended January 31, 2001, respectively, and 2,135,780 for each of the three and six month periods ended January 31, 2000. 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. Property and Equipment - at cost:
January 31, July 31, 2001 2000 --------------- --------------- Property: Buildings and improvements $39,774,432 $38,917,272 Improvements to leased property 9,158,009 9,158,009 Land 4,008,835 4,008,835 Construction in progress 621,417 246,342 ------------- ------------- 53,562,693 52,330,458 Less accumulated depreciation 23,489,252 22,991,894 ------------- ------------- Property - net 30,073,441 29,338,564 ------------- ------------- Fixtures and equipment and other: Fixtures and equipment 598,126 572,189 Other fixed assets 211,741 209,223 ------------- ------------- 809,867 781,412 Less accumulated depreciation 578,097 565,571 ------------- ------------- Fixtures and equipment and other - net 231,770 215,841 ------------- ------------- Property and equipment - net $30,305,211 $29,554,405 ============= =============
-6- 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, 2001, the Company's marketable securities were classified as follows: Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value ------------- ------------- ------------- ------------- Current: Certificate of deposit $42,764 $- $- $42,764 ============= ============= ============= ============= Noncurrent: Available-for-sale: Equity securities $2,913,900 $412,732 $- $3,326,632 ============= ============= ============= ============= Investment income consists of the following: Three Months Ended Six Months Ended January 31, January 31, ------------- ------------- ------------- ------------- 2001 2000 2001 2000 ------------- ------------- ------------- ------------- Interest income $10,325 $18,771 $24,728 $37,126 Dividend income $50,929 $51,023 $96,814 $97,063 Gain on sale of securities 248 - 248 - ------------- ------------- ------------- ------------- Total $61,502 $69,794 $121,790 $134,189 ============= ============= ============= ============= -7-
5. Long-Term Debt:
January 31, 2001 July 31, 2000 -------------------------------- ---------------------------- 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 $2,733,333 $266,666 $2,866,667 Jamaica, New York property (b) Variable 3/01/07 - 580,000 - - Jowein building, Brooklyn, N.Y. (c) 9 % 3/31/05 107,820 424,710 103,128 479,819 Fishkill, New York property (d) 8 1/4 % 7/01/04 93,060 2,116,014 89,312 2,163,500 Circleville, Ohio property (e) 7 % 9/30/02 403,097 284,793 389,272 489,858 Brooklyn, New York property (f) 8 1/2 % 5/01/01 169,489 - 174,657 - -------------- -------------- -------------- ----------- Total $1,040,133 $6,138,850 $1,023,035 $5,999,844 ============== ============== ============== ===========
(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, New York property. 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) The Company, on December 13, 2000, closed a loan with a bank in the amount of $3,500,000. The loan is secured by a second position leasehold mortgage covering the entire leasehold interest of the Company as tenant in a certain ground lease and building in the Jamaica, New York property. The loan proceeds are to be utilized by the Company toward its costs of capital improvements of the premises in connection with the Company's lease of a significant portion of a floor in the building to the State of New York. The loan is structured in two phases: 1.) A fifteen-month construction term with interest only on the amount owing at a floating rate per annum equal to the prime rate. During this period, the Company is to have the option to secure advances against the loan amount. 2.) Upon completion of the renovations, the construction loan would convert to a ten (10) year second mortgage permanent loan on a fifteen (15) year level amortization, plus interest, at the option of the Company. The interest rate on the permanent loan during the first five (5) years is at a fixed rate per annum equal to 2.25% above the five (5) year Treasury Note Rate in effect at the time of conversion to a permanent loan. The interest rate during the five (5) year renewal term is at a fixed rate per annum equal to 2.25% above the 5-year Treasury Note Rate, as of the start of the renewal term. Payments are to be made, in arrears, on the first day of each and every month calculated (a) during the period of the construction loan, interest only, and (b) during the ten (10) year period of the term loan, at the sum of the interest rate plus amortization sufficient to fully liquidate the loan over a fifteen (15) year period. As additional collateral security, the Company will conditionally assign to the bank all leases and rents on the premises, or portions thereof, whether now existing or hereafter -8- consummated. The Company has an option to prepay principal, in whole or in part, plus interest accrued thereon, at any time during the term, without premium or penalty. Other provisions of the loan agreement provide certain restrictions on the incurrence of indebtedness and the sale or transfer of the Company's ground lease interest in the premises. Both credit facilities will be subject to the bank's existing first position mortgage loan on the premises. (c)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. (d)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. (e)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. (f)The Company has determined that it will payoff this mortgage May 1, 2001. 6. Long-Term Debt - Other: Long-Term debt - Other consists of the following:
January 31, 2001 July 31, 2000 ------------------------------- ------------------------------- Due Due Due Due Within After Within After One Year One Year One Year One Year ------------- ------------- ------------- ------------- Deferred compensation * $95,333 $- $104,000 $43,333 Lease security deposits ** - 356,593 33,125 319,110 ------------- ------------- ------------- ------------- Total $95,333 $356,593 $137,125 $362,443 ============= ============= ============= =============
* 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 $291,500 at January 31, 2001 and $275,000 at July 31, 2000, provided by three tenants. -9- 7. 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, 2001 and January 31, 2000, and $206,805 for each of the six month periods ended January 31, 2001 and January 31, 2000, representing rentals from an affiliated company. Amounts due from the affiliated company are as follows: January 31, July 31, 2001 2000 -------------- ------------ $272,907 $363,875 -------------- ------------ 8. Employees' Retirement Plan: The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its employees. Operations were charged $64,435 and $122,880 as contributions to the Plan for the three and six months ended January 31, 2001, respectively, and $66,046 and $120,086 as contributions to the plan for the three and six months ended January 31, 2000, respectively. 9. 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, ------------------------------ 2001 2000 __________ __________ Interest paid, net of capitalized interest of $288,852 $321,792 $3,270 for the 2001 six month period. There was no amount for the 2000 six month period. Income taxes paid $104,676 $49,908 10. 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 three months ended January 31, 2001. That tenant accounted for 15.83% of rental income. -10- 11. Contingencies: 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 $513,343, or 54% on account of its unsecured claim, and 100% of its allowed administrative claim of $54,887, for a total of $568,230. The Company has made no provision in its financial statements for the balance of its claims filed against Jamesway due to the fact that the recovery of $47,532 in the six months ended January 31, 2001 represents the final recovery from Jamesway. 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. -11- J. W. MAYS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Results of Operations: Three Months Ended January 31, 2001 Compared to the Three Months Ended January 31, 2000: In the three months ended January 31, 2001, the Company reported net income of $133,827, or $.07 per share. In the comparable three months ended January 31, 2000, the Company reported net income of $197,357, or $.09 per share. Revenues in the current three months increased to $2,811,565 from $2,727,171 in the comparable 2000 three months. The increase is primarily due to the leasing of 11,200 square feet to a tenant at the Company's Jamaica, New York property. The lease commenced September 1, 2000. Real estate operating expenses in the current three months increased to $1,558,593 from $1,438,043 in the comparable 2000 three months primarily due to an increase in real estate taxes, utility and maintenance costs, partially offset by a decrease in water and sewer costs and licenses and permits. Administrative and general expenses in the current three months increased to $667,491 from $620,188 in the comparable 2000 three months primarily due to an increase in payroll and medical costs, partially offset by a decrease in legal and professional costs. Depreciation and amortization expense in the current three months increased to $262,277 from $248,641 in the comparable 2000 three months. Interest expense in the current three months exceeded investment income by $80,377 and by $88,942 in the comparable 2000 three months. The decrease was due to scheduled repayments of debt. Six Months Ended January 31, 2001 Compared to the Six Months Ended January 31, 2000: In the six months ended January 31, 2001, the Company reported net income of $447,302, or $.22 per share. In the comparable six months ended January 31, 2000, the Company reported net income of $491,857, or $.23 per share. Revenues in the current six months increased to $5,548,457 from $5,432,076 in the comparable 2000 six months. The increase is primarily due to the leasing of 11,200 square feet to a tenant at the Company's Jamaica, New York property. The lease commenced September 1, 2000. Real estate operating expenses in the current six months increased to $2,964,582 from $2,796,885 in the comparable 2000 six months primarily due to an increase in real estate taxes, utility and maintenance costs, partially offset by a decrease in water and sewer costs and licenses and permits. Administrative and general expenses in the current six months increased to $1,213,307 from $1,162,501 in the comparable 2000 six months primarily due to an increase in payroll and medical costs, partially offset by a decrease in legal and professional costs. -12- Depreciation and amortization expense in the current six months increased to $523,554 from $494,882 in the comparable 2000 six months. Interest expense in the current six months exceeded investment income by $164,244 and by $184,951 in the comparable 2000 six months. The decrease was due to scheduled repayments of debt. The bad debt recovery in the amount of $47,532 in the six months ended January 31, 2001 relates to the bad debt write-off of $424,011 in the 1996 fiscal year. See Note 11 to the Consolidated Financial Statements. There was no comparable item in the 2000 six month period. The Company purchased 25,000 shares of its outstanding common stock during the six months ended January 31, 2001. The effect on earnings per share for the six months ended January 31, 2001 was $.0014. 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 $1,097,186 at January 31, 2001. The Company, on October 20, 2000, completed a lease with the State of New York for 42,250 square feet of office space in the Company's Jamaica, New York property. Occupancy is anticipated to commence on or about August 1, 2001. See note 5(b) for details of a loan with a bank, closed by the Company on December 13, 2000, to cover the cost of capital improvements in connection with the aforementioned lease of 42,250 square feet. During fiscal 2000, the Company leased an additional 11,200 square feet of office space to the State of New York which space is contiguous to the existing office space occupied by the State in the Company's Jamaica, New York property. Rent for the additional space commenced September 1, 2000. The Company has a mortgage on its Brooklyn, New York property which becomes due on May 1, 2001. The Company has determined that it will payoff this mortgage May 1, 2001. The Company will increase its cash flow by $398,415 due to scheduled rental increases from existing tenants for the year ending July 31, 2001 Cash Flows From Operating Activities: Deferred Expenses: Cash expenditures for the six months ended January 31, 2001 increased by $154,158 due primarily to legal and professional costs in obtaining a new tenant and financing costs to obtain a loan, the proceeds of which are to be utilized by the Company toward its cost of capital improvements relating to the new tenant's occupancy at the Company's Jamaica, New York building. Occupancy is anticipated to commence on or about August 1, 2001. Receivables: The Company is due the amount of $240,065 as of January 31, 2001 for expenditures for renovations made on behalf of one tenant at the Jamaica, New York building. -13- Prepaid Expenses: Cash expenditures for the six months ended January 31, 2001 increased by $32,843 compared to the comparable six months ended January 31, 2000, due primarily to a increase in real estate taxes. Cash Flows From Investing Activities: Capital Expenditures: The Company had expenditures of $1,620,775 ($928,114, for the six months ended January 31, 2001) to renovate 11,200 square feet of additional space for an existing tenant and 42,250 square feet for a new tenant at its Jamaica, New York building, of which $499,758 is applicable to the six months ended January 31, 2001 and is to be reimbursed by the tenants. The Company anticipates that the total renovations will cost approximately $4,500,000 of which approximately $1,558,903 will be reimbursed by the tenants. The renovation for the 11,200 square feet was completed during December, 2000 and the renovation for the 42,250 square feet is anticipated to be completed on or about August, 2001. The Company had expenditures of $214,907 for the six months ended January 31, 2001 for renovations of its Fishkill, New York building. The Company anticipates that the total renovations will cost approximately $237,000 and will be completed during March, 2001. Cash Flows From Financing Activities: Borrowing: Mortgage Debt - The Company secured financing from a bank in the principal amount of $3,500,000 (see note 5 (b). As of January 31, 2001, the Company secured advances of $580,000 against the principal amount. The Company purchased 25,000 shares of its outstanding common stock in a private transaction for a total purchase price of $213,750 in the six months ended January 31, 2001. -14- 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 January 31, 2001. -15- 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, 2001 Lloyd J. Shulman Lloyd J. Shulman Chairman Date March 7, 2001 Alex Slobodin Alex Slobodin Exec. Vice-President (Principal Financial Officer) -16- EX-27 2 0002.txt ARTICLE 5 FIN. DATA SCHEDULE FOR QUARTERLY 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-31-2001 Aug-01-2000 Jan-31-2001 1,097,186 42,764 345,795 0 0 2,542,088 54,372,560 24,067,349 43,095,328 1,736,723 0 2,178,297 0 0 30,067,865 43,095,328 0 5,548,457 0 0 4,653,911 0 286,034 730,302 283,000 447,302 0 0 0 447,302 0.22 0.00
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