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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 Three Months Ended March 31, 2003

 

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   o


 

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.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

 

March 31,
2003

 

December 31,
2002

 

 

 


 


 

ASSETS

 

 

 

 

 

Cash and temporary investments

 

$

153,384

 

$

279,880

 

Marketable securities

 

 

1,860,036

 

 

1,731,498

 

Investment-American Equity Investment Life Holding Company

 

 

1,271,763

 

 

1,271,763

 

Receivables, Net

 

 

77,536

 

 

80,205

 

 

 



 



 

Total assets

 

$

3,362,719

 

$

3,363,346

 

 

 



 



 

LIABILITIES AND STOCKHOLDER’S EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

35,110

 

$

40,903

 

Deferred tax liability

 

 

105,416

 

 

105,416

 

 

 



 



 

 

 

 

140,526

 

 

146,319

 

 

 



 



 

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

 

 

1,818,047

 

 

1,818,047

 

Retained earnings

 

 

1,481,756

 

 

1,475,638

 

Less investment in Twenty Services Holding

 

 

(60,000

)

 

(60,000

)

Treasury Stock

 

 

(196,428

)

 

(195,476

)

 

 



 



 

Net stockholder’s equity

 

 

3,222,193

 

 

3,217,027

 

 

 



 



 

Total liabilities and stockholder’s equity

 

$

3,362,719

 

$

3,363,346

 

 

 



 



 

Page -2-


TWENTY SERVICES, INC.

STATEMENT OF OPERATIONS

(Unaudited)

 

 

Three Months Ended
March 31,

 

 

 


 

 

 

2003

 

2002

 

 

 


 


 

Revenues

 

$

46,393

 

$

41,775

 

Expenses:

 

 

 

 

 

 

 

General and administrative

 

 

33,305

 

 

33,319

 

 

 



 



 

Gain from operations and net income

 

$

13,088

 

$

8,456

 

 

 



 



 

Weighted average number of common shares outstanding

 

 

1,283,068

 

 

1,283,068

 

 

 



 



 

Earnings per share *

 

$

.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.

Page -3-


TWENTY SERVICES, INC.

CONDENSED STATEMENT OF CASH FLOWS

(Unaudited)

 

 

Three Months Ended
March 31,

 

 

 


 

 

 

2003

 

2002

 

 

 


 


 

Cash flows from operating activities:

 

 

 

 

 

 

 

Interest and dividends received

 

$

46,393

 

$

41,775

 

Cash paid employees and supplier

 

 

(45,960

)

 

(4,649

)

Net cash provided by operating activities

 

 

433

 

 

37,126

 

 

 



 



 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of securities

 

 

(128,646

)

 

—  

 

Principal collected on loans

 

 

2,669

 

 

2,462

 

Purchase of Treasury Stock

 

 

(952

)

 

(1,632

)

 

 



 



 

Net cash provided (used) by investing activities

 

 

(126,929

)

 

830

 

 

 



 



 

Net increase (decrease) in cash

 

 

(126,496

)

 

37,956

 

Cash and temporary investments, beginning of period

 

 

279,880

 

 

206,208

 

 

 



 



 

Cash and temporary investments end of period

 

$

153,384

 

$

244,164

 

 

 



 



 

Page -4-


MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES

          During the three months ended March 31, 2003, 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 $13,088 for the three months ended March 31, 2003 as compared to the net income of $8,456 for the corresponding 2002 period.

REVENUES

          Revenues for the three months ended March 31, 2003 of $46,393 were comparable to $41,775 for the corresponding 2002 period.  The decrease was due primarily to a decrease in interest income.

EXPENSES

          General and administrative expenses decreased from $33,319 in 2002 to $33,305 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.

Page -5-


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:

 

 

 

 

 

          On February 28, 2003, the Board of Directors of the Registrant declared a cash dividend of SEVEN CENTS ($0.07) per share, payable March 31, 2003 to holders of record at February 28, 2003 of the Series A-1980, Series A-1981, Series A-1982 and Series A-1985 Preferred Stock, which dividend relates to the year ended December 31, 2002.  On March 31, 2003, the dividend so declared was paid in the amount of approximately $32,500.

 

 


Page -6-


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.

MAY 7, 2003

 

/s/ JACK C. BRIDGES


 


Date

 

Jack C. Bridges
Executive Vice-President

 

 

 

MAY 7, 2003

 

/s/ DAVID J. NOBLE


 


Date

 

David J. Noble
Chairman/Director
And Principal Executive Officer

Page -7-


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 March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack C. Bridges, Executive Vice-President of the Company, certify, pursuant to 18 U.S.C. § 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 Securities 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/  JACK C. BRIDGES

 


 

Jack C. Bridges
Executive Vice-President

 

 

 

MAY 7, 2003

 


 

Date

 


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 March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack C. Bridges, Executive Vice-President of the Company, certify, pursuant to 18 U.S.C. § 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 Securities 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

 


 

David J. Noble
Chairman/Director
And Principal Executive Officer

 

 

 

MAY 7, 2003

 


 

Date