T.J.T., Inc. Reports Results for Fiscal Year 2012

Sat Jan 26, 2013 12:05am EST

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EAGLE, Idaho--(Business Wire)--
T.J.T., Inc. (the Company), (Pink Sheets: AXLE) - T.J.T., Inc., a major supplier
of axles, tires, and set-up supplies to the manufactured housing industry,
announced a net loss of $1,149,000, or $.25 per diluted share, for fiscal year
2012. Higher margins offset by lower sales volumes along with increases in SG&A
contributed to the net loss. The Company incurred a net loss of $340,000, or
$.08 per diluted share, for the fourth quarter. 

Net sales decreased 57 percent to $821,000 in the final quarter of 2012 as
compared to the same quarter in 2011. Net sales declined 34 percent to
$4,004,000 during the twelve months ended September 30, 2012 compared to 2011.
Net sales of axles and tires decreased 73 percent and 44 percent in the three
and twelve month periods ending September 30, 2012 compared to the same periods
in 2011, respectively. Prior to its closing in February 2011, the Washington
facility contributed sales of $299,000. The Colorado facility contributed sales
of $97,000 of unprocessed materials in the three month period and $761,000 total
sales in the twelve month period of 2011. Lower axle and tire net sales in 2012
periods were a result of lower sales volumes partially offset by increased
selling prices. Net sales of accessories decreased 31 percent in the fourth
quarter of 2012 compared to the same 2011 quarter, and declined 21 percent
during the twelve months of 2012 as compared to 2011. 

Gross margin increased to 32 percent during the fourth quarter of 2012 compared
to 27 percent in the same quarter of 2011. The Company`s gross margin for the
twelve month period in 2012 increased to 30 percent compared to 22 percent in
2011. 

Consolidated selling, general and administrative (SG&A) expense decreased 10
percent in the final quarter of 2012 compared to the same quarter in 2011. SG&A
for 2012 increased 7 percent, or $162,000, compared to the same twelve month
period in 2011. SG&A declined in the fourth quarter as a result of decreased
headcount. The SG&A increase in the twelve month period was driven by temporary
increases in headcount, mainly the addition of full time Corporate Executive
Officers, as well as the start-up costs associated with the Company`s new North
Dakota facility. 

In October 2012, the Company formed T.J.T. Transit, LLC, a wholly-owned
subsidiary of the Company, designed primarily for the transport of Manufactured
Homes, Modular Buildings, and Man Camps. It will begin operations early in 2013,
in the western US. 

The Company`s financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The ability of the Company to
continue as a going concern is dependent upon the success of these actions and
the economic recovery of the industry as a whole. There can be no assurance that
the Company will be successful in accomplishing its objectives. The financial
statements do not include any adjustments that might be necessary should the
Company be unable to continue as a going concern. 

As a result of the cost reduction efforts, the Company will no longer provide
quarterly financial reports and audited annual financial reports to the public.
The fiscal 2012 Annual Report should be considered the Company`s last public
report. 

Established in 1977, T.J.T., Inc. is a major provider of recycled axles and
tires to the manufactured housing industry. It operates recycling facilities in
Idaho and California and serves nine western states. In addition to the
recycling business, T.J.T. also sells aftermarket products to manufactured
housing, recreational vehicle, and residential markets. 

This release contains certain forward-looking statements, which are based on
management`s current expectations including, but not limited to, general
economic conditions, changes in interest rates, deposit flows, real estate
values, competition, and changes in legislation or regulations, and other
economic, competitive, governmental, regulatory, and technological factors
affecting the Company`s operations, pricing, products, and services. Any
forward-looking statement speaks only as of the date on which the statement is
made, and the Company undertakes no obligation to update any forward-looking
statement. 

Copies of this report and additional historical financial information can be
found at www.otcmarkets.com, or you may contact:

 Nicole L. Glisson                                             
 Senior Vice President, Chief Financial Officer and Treasurer  
 T.J.T., Inc.                                                  
 (208) 472-2500                                                
                                                               


 T.J.T., INC.                                                                                                                                                                          
 CONSOLIDATED BALANCE SHEETS                                                                                                                                                           
 (Dollars in thousands)                                                                                                                                                                
                                                                                                                                                                                       
                                                                                                                                                                                       
 At September 30,                                                                                                                          2012                    2011                
                                                                                                                                           (Unaudited)             (Audited)           
                                                                                                                                                                                       
 Current assets:                                                                                                                                                                       
                   Cash and cash equivalents                                                                                               $     697               $     1,875         
                   Accounts receivable (net of allowances and discounts of $17 and $111)                                                         237                     337           
                   Current portion of notes receivable                                                                                           4                       74            
                   Inventories                                                                                                                   886                     1,189         
                   Prepaid expenses and other current assets                                                                                     30                      181           
                                                     Total current assets                                                                        1,854                   3,656         
                                                                                                                                                                                       
 Property, plant and equipment, net of accumulated depreciation                                                                                  759                     317           
                                                                                                                                                                                       
 Notes receivable, net of current portion                                                                                                        25                      29            
 Real estate held for sale                                                                                                                       270                     474           
 Real estate held for investment                                                                                                                 378                     167           
 Other assets                                                                                                                                    33                      5             
                   Total assets                                                                                                            $     3,319             $     4,648         
                                                                                                                                                                                       
 Current liabilities:                                                                                                                                                                  
                   Accounts payable                                                                                                        $     235               $     244           
                   Accrued liabilities                                                                                                           201                     286           
                   Deferred income                                                                                                               0                       69            
                                                     Total current liabilities                                                                   436                     599           
                                                                                                                                                                                       
                                                                                                                                                                                       
 Shareholders' equity:                                                                                                                                                                 
                   Preferred stock, $.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding                                -                       -             
                   Common stock, $.001 par value; 10,000,000 shares authorized; 4,532,862 shares outstanding                                     5                       5             
                   Capital surplus                                                                                                               5,875                   5,872         
                   Retained earnings                                                                                                             (2,963  )               (1,812  )     
                                                                                                                                                 2,917                   4,065         
                                                                                                                                                                                       
                   Treasury shares, at cost, 81,113 and 46,735 shares, respectively                                                              (34     )               (16     )     
                                                     Total shareholders' equity                                                                  2,884                   4,049         
                                                                                       Total liabilities and shareholders' equity          $     3,319             $     4,648         
                                                                                                                                                                                       


 T.J.T., INC.                                                                                                                                       
 CONSOLIDATED STATEMENTS OF OPERATION                                                                                                               
 (Dollars in thousands except per share amounts)                                                                                                    
                                                                                                                                                    
                                                                                                                                                    
                                                               Year Ended                                                                           
                                                               September 30,                                                                        
                                                               2012                           2011                           2010                   
                                                               (Unaudited)                    (Audited)                      (Audited)              
                                                                                                                                                    
 Sales (net of returns and allowances):                                                                                                             
                  Axles and tires                              $     2,174                    $     3,900                    $     4,963            
                  Accessories and siding                             1,683                          2,132                          2,375            
                  Other                                              147                            -                              -                
                                   Total sales                       4,004                          6,032                          7,338            
                                                                                                                                                    
 Cost of goods sold                                                                                                                                 
                  Axles and tires                                    1,703                          3,309                          4,511            
                  Accessories and siding                             1,078                          1,387                          1,702            
                  Other                                              28                             -                              -                
                                   Cost of goods sold                2,809                          4,696                          6,213            
                                                                                                                                                    
                  Gross profit                                       1,195                          1,336                          1,125            
                                                                                                                                                    
 Selling, general and administrative expenses                        2,523                          2,361                          2,643            
                                                                                                                                                    
                  Operating loss                                     (1,328     )                   (1,025     )                   (1,518     )     
                                                                                                                                                    
 Impairment loss on real estate                                      -                              (154       )                   (65        )     
 Interest income, net of expense                                     13                             27                             21               
 Equity investment income                                            -                              32                             -                
 Rental income                                                       55                             17                             17               
 Other income                                                        111                            3                              26               
                                                                                                                                                    
                  Loss before taxes                                  (1,149     )                   (1,100     )                   (1,519     )     
                                                                                                                                                    
 Income tax expense (benefit)                                        -                              3                              16               
                                                                                                                                                    
                  Net loss                                     $     (1,149     )             $     (1,103     )             $     (1,535     )     
                                                                                                                                                    
 Net loss to common shareholders:                                                                                                                   
                  Basic                                        $     (0.25      )             $     (0.24      )             $     (0.34      )     
                  Diluted                                      $     (0.25      )             $     (0.24      )             $     (0.34      )     
                                                                                                                                                    
 Weighted average shares outstanding:                                                                                                               
                  Basic                                              4,532,862                      4,532,862                      4,532,862        
                  Diluted                                            4,543,637                      4,542,122                      4,543,198        
                                                                                                                                                    


 T.J.T., INC.                                                                                                                                                                                      
 CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                                             
 (Dollars in thousands)                                                                                                                                                                            
                                                                                                                                                                                                   
                                                                                                                                                                                                   
 For the year ended September 30,                                                                                              2012                    2011                    2010                
                                                                                                                               (Unaudited)             (Audited)               (Audited)           
                                                                                                                                                                                                   
 Cash flows from operating activities:                                                                                                                                                             
             Net loss                                                                                                          $     (1,149  )         $     (1,103  )         $     (1,535  )     
             Adjustments to reconcile net loss to net cash used by operating activities:                                                                                                           
                                         Depreciation and amortization                                                               87                      67                      118           
                                         Impairment loss on real estate held for sale                                                -                       154                     65            
                                         Loss on sale of other assets held for sale                                                  -                       -                       16            
                                         Gain on sale of assets                                                                      (111    )               -                       (42     )     
                                         Gain on sale of equity investment                                                           -                       (30     )               -             
                                         Equity investment earnings                                                                  -                       (2      )               -             
                                         Stock compensation                                                                          3                       5                       11            
                                         Change in accounts receivables                                                              100                     37                      288           
                                         Change in inventories                                                                       303                     942                     1,249         
                                         Change in prepaid expenses and other current assets                                         151                     (19     )               (120    )     
                                         Change in accounts payable                                                                  (9      )               112                     (129    )     
                                         Change in taxes                                                                             -                       -                       596           
                                         Change in other assets and liabilities                                                      (115    )               (16     )               (53     )     
                                                                     Net cash provided (used) by operating activities                (739    )               147                     464           
                                                                                                                                                                                                   
 Cash flows from investing activities:                                                                                                                                                             
             Purchases of property, plant and equipment                                                                              (563    )               (138    )               (13     )     
             Repayments received on notes receivable                                                                                 74                      12                      21            
             Proceeds from sale of assets                                                                                            75                      8                       53            
             Proceeds from sale of equity investment                                                                                 -                       32                      -             
             Proceeds from split dollar life insurance                                                                               -                       -                       392           
             Investment in real estate held for investment and sale                                                                  (8      )               -                       -             
             Proceeds from sale of other assets held for sale                                                                        -                       5                       19            
                                                                     Net cash provided (used) by investing activities                (422    )               (81     )               472           
                                                                                                                                                                                                   
 Cash flows from financing activities:                                                                                                                                                             
             Purchase of treasury shares                                                                                             (18     )               (16     )               -             
                                                                     Net cash used by financing activities                           (18     )               (16     )               -             
                                                                                                                                                                                                   
 Net change in cash and cash equivalents                                                                                             (1,178  )               50                      936           
 Cash and cash equivalents at October 1                                                                                              1,875                   1,825                   889           
                                                                                                                                                                                                   
 Cash and cash equivalents at June 30                                                                                          $     697               $     1,875             $     1,825         
                                                                                                                                                                                                   
 Supplemental information:                                                                                                                                                                         
             Cash paid for interest                                                                                            $     -                 $     -                 $     -             
             Income tax refunds received                                                                                             -                       -                       580           
                                                                                                                                                                                                   
 Noncash transactions:                                                                                                                                                                             
             Sale of investment property by issuance of note receivable                                                        $     -                 $     -                 $     -             
             Sale of fixed assets by issuance of note receivable or other                                                            -                       -                       6             


T.J.T., Inc.
Nicole L. Glisson, 208-472-2500
Senior Vice President, Chief Financial Officer and Treasurer 



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