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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 Six Months Ended June 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.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     June 30,
2004


    December 31,
2003


 
ASSETS  

Cash and temporary investments

   $ 46,244     $ 71,968  

Marketable securities

     4,414,740       4,417,405  

Receivables, Net

     56,150       92,166  
    


 


Total assets

   $ 4,517,134     $ 4,581,539  
    


 


LIABILITIES AND STOCKHOLDER’S EQUITY  

Liabilities:

                

Accounts payable and accrued expenses

   $ 10,116     $ 34,477  

Deferred tax liability

     317,248       329,748  
    


 


       327,364       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

     1,374,609       1,430,061  

Accumulated other comprehensive income

     1,192,228       1,151,221  

Less investment in Twenty Services Holding

     (60,000 )     (60,000 )

Treasury Stock

     (211,959 )     (198,860 )
    


 


Net stockholder’s equity

     4,189,770       4,217,314  
    


 


Total liabilities and stockholders’ equity

   $ 4,517,134     $ 4,581,539  
    


 


 

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TWENTY SERVICES, INC.

STATEMENT OF OPERATIONS

(Unaudited)

 

    

Three Months Ending

June 30


   

Six Months Ending

June 30


     2004

    2003

    2004

    2003

Revenues

   $ 27,353     $ 30,477     $ 67,024     $ 76,870

Expenses:

                              

General and administrative

     48,198       31,333       74,865       64,638
    


 


 


 

Income (loss) from operations and net income (loss)

   $ (20,845 )   $ (856 )   $ (7,841 )   $ 12,232
    


 


 


 

Weighted average number of Common shares outstanding

     1,283,068       1,283,068       1,283,068       1,283,068
    


 


 


 

Earnings per share *

                              

Net income

   $ .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)

 

    

Six Months Ended

June 30,


 
     2004

    2003

 

Cash flows from operating activities

   $ 63,204     $ 76,870  

Interest and dividends received

     (61,100 )     (74,300 )
    


 


Net cash (used) provided by operating activities

     2,104       2,570  
    


 


Cash flows from investing activities:

                

Sales (purchase) of securities, net

     11,639       76,335  
    


 


Net cash provided (used) by investing activities

     11,639       76,335  
    


 


Cash flows from financing activities:

                

Preferred stock dividends

     (35,358 )     (35,358 )

Purchase Treasury Stock

     (4,109 )     (1,712 )
    


 


Net cash used by financing activities

     (39,467 )     (37,070 )
    


 


Net increase (decrease) in cash

     (25,724 )     41,835  

Cash and temporary investments, beginning of period

     71,968       279,880  
    


 


Cash and temporary investments, end of period

   $ 46,244     $ 321,715  
    


 


 

-4-


MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

 

During the six months ended June 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 (loss) of $7,841 for the six months ended June 30, 2004 as compared to the net income of $12,232 for the corresponding 2003 period. The change is due primarily to the costs related to the shareholders’ meeting in the second quarter and a decrease in revenues of approximately $6,000.

 

REVENUES

 

Revenues for the six months ended June 30, 2004 of $63,204 compared to $76,870 for the corresponding 2003 period.

 

EXPENSES

 

General and administrative expenses were $74,865 in 2004 as compared to $64,368 for the corresponding 2003 period. The increase was due primarily to the cost of the shareholders’ meeting.

 

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:     

Item 6.

   EXHIBITS and Reports on Form 8-K     
          EXHIBITS     
          32.1    CERTIFICATION OF EXECUTIVE VICE-PRESIDENT
          32.2    CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER

 

-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.

 

 

August 11, 2004


 

 

/s/    David J. Noble


Date

  David J. Noble
   

Chairman/Director

And Principal Executive Officer

 

August 11, 2004


 

 

/s/    Jack C. Bridges


Date

 

Jack C. Bridges

Executive Vice-President

 

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