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, 2005 | 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)
| March 31, 2005 |
December 31, 2004 |
|||||||
| ASSETS | ||||||||
| Cash and temporary investments |
$ | 50,294 | $ | 452,603 | ||||
| Marketable securities |
4,574,958 | 4,177,227 | ||||||
| Receivables, Net |
68,700 | 54,751 | ||||||
| Total assets |
$ | 4,693,952 | $ | 4,684,581 | ||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
| Liabilities; |
||||||||
| Accounts payable and accrued expenses |
$ | 55,821 | $ | 65,689 | ||||
| Deferred tax liability |
355,158 | 355,158 | ||||||
| 410,979 | 420,847 | |||||||
| 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 |
1,716,074 | 1,716,074 | ||||||
| Retained earnings |
1,423,462 | 1,398,119 | ||||||
| Accumulated other comprehensvie income |
1,271,353 | 1,271,353 | ||||||
| Less investment in Twenty Services Holding |
(60,000 | ) | (60,000 | ) | ||||
| Treasury Stock |
(246,734 | ) | (240,630 | ) | ||||
| Net stockholder’s equity |
4,282,973 | 4,263,734 | ||||||
| Total liabilities and stockholder’s equity |
$ | 4,693,952 | $ | 4,684,581 | ||||
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TWENTY SERVICES, INC.
STATEMENT OF OPERATIONS
(Unaudited)
| Three Months Ended March 31, | ||||||
| 2005 |
2004 | |||||
| Revenues |
$ | 32,087 | $ | 38,872 | ||
| Expenses: |
||||||
| General and administrative |
31,396 | 26,667 | ||||
| Gain from operations and net income |
$ | 691 | $ | 12,205 | ||
| Weighted average number of common shares outstanding |
1,283,068 | 1,283,068 | ||||
| Earnings per share* |
$ | 0.00 | $ | 0.00 | ||
| * | 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)
| Three Months Ended March 31, |
||||||||
| 2005 |
2004 |
|||||||
| Cash flows from operating activities: |
||||||||
| Interest and dividends received |
32,087 | 38,872 | ||||||
| Cash paid employees and supplier |
(30,396 | ) | (27,520 | ) | ||||
| Net cash provided by operating activities |
1,691 | 11,352 | ||||||
| Cash flows form investing activities: |
||||||||
| Purchase of securities |
(575,000 | ) | (2,925 | ) | ||||
| Principal collected on loans |
177,104 | 4,925 | ||||||
| Purchase of Treasury Stock |
(6,104 | ) | (302 | ) | ||||
| Net cash provided (used) by investing activities |
(404,000 | ) | 1,698 | |||||
| Net increase (decrease) in cash |
(402,309 | ) | 13,050 | |||||
| Cash and temporary investments, beginning of period |
452,603 | 71,968 | ||||||
| Cash and temporary investments end of period |
$ | 50,294 | $ | 85,018 | ||||
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MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended March 31, 2005, the Registrant’s liquidity remained stable. The Company has neither notes payables 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 $691 for the three months ended March 31, 2005 as compared to the net income of $12,205 for the corresponding 2004 period.
REVENUES
Revenues for the three months ended March 31, 2005 of $32,087 were comparable to $38,872 for the corresponding 2004 period.
EXPENSES
General and administrative expenses increased from $26,667 in 2004 to $31,396 for the corresponding 2005 period.
The above financial statements include all the adjustments, which, in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting principles. All adjustments are of a normal recurring nature.
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PART II
OTHER INFORMATION
| Item 1. |
Legal Preceding |
None | ||
| Item 2. |
Changes in Securities |
None | ||
| Item 3. |
Defaults Upon Senior Securities. |
None | ||
| Item 4. |
Submission of Matters to a Vote of Securities Holders |
None | ||
| Item 5. |
Other Information: |
|||
On February 28, 2005, the Board of Directors of the Registrant Declared a cash dividend of SEVEN CENTS ($.07) per share, payable March 31, 2005 to holders of record at February 28, 2005 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, 2004. On March 31, 2005, the dividend so declared was paid in the amount of Approximately $32,500.
Item 6. EXHIBITS and REPORTS ON FORM 8-K
EXHIBITS
| 31.1 | CERTIFICATION OF EXECUTIVE VICE-PRESIDENT |
| 32.2 | CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER. |
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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 Thereunto duly authorized.
| 5/16/05 |
/s/ David J. Noble | |
| Date |
David J. Noble | |
| Chairman/Director | ||
| And Principal Executive Officer | ||
| 5/16/05 |
/s/ Jack C. Bridges | |
| Date |
Jack C. Bridges | |
| Executive Vice-President | ||
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