T.J.T., Inc. Reports Second Quarter Results for Fiscal Year 2008

EMMETT, Idaho--(Business Wire)--
T.J.T., Inc. (the Company) (Pink Sheets:AXLE), a major supplier of
axles, tires, and set-up supplies to the manufactured housing
industry, announced a net loss of $257,000, or $.06 per diluted share,
for the second quarter of fiscal year 2008.

Sales decreased 10 percent in the three month period ending March
31, 2008 as compared to the same three month period a year ago. The
decrease is primarily due to a sharp decline of $281,000 in the sales
of accessories as shipments of manufactured homes declined 20 percent
in the Company's market area. Sales are down 3 percent for the six
month period ending March 31, 2008 as compared to the same six month
period a year ago. While axle and tire sales have increased as a
result of increased wholesale sales, accessories sales declined 19
percent in the first half of fiscal 2008 compared to the same period
in 2007.

Gross profit declined by 33 percent in the second quarter, as
compared to the same quarter a year ago. For the six month period, the
gross profit declined 23 percent as compared to the same period in
fiscal 2007. Axle and tire margins have declined in both periods as a
result of lower selling prices and higher purchase costs of used axles
and tires. On average, selling prices declined primarily because of a
higher percentage of sales into wholesale markets. Purchase costs
increased due to diminished supply and higher fuel costs realized in
procuring the supply. Accessories gross margin increased by 4
percentage points in both the three and six month periods when
compared to 2007.

Consolidated selling, general, and administrative (SG&A) expense
increased $89,000 and $312,000 during the three and six month periods,
respectively, when compared to the same 2007 periods. Increases in
both periods are largely due to increased legal expenses as well as
expenses associated with the newly established joint venture, Ladder
Lift Systems, L.L.C. Operations of Ladder Lift Systems, L.L.C. are
consolidated within the financial statements for the Company.

The Company's net loss for the quarter ending March 31, 2008 is
$257,000 compared to net income of $62,000 for the same quarter a year
ago. The net loss for the six months ended March 31, 2008 is $486,000
compared to income of $83,000 in the same six month period a year ago.
The loss in both periods is primarily due to a sharp decline in gross
margin and increased SG&A expense. Gross margin declined as a result
of higher percentages of sales into wholesale markets coupled with
higher purchase costs. SG&A expense increased primarily due to legal
expenses.

Terrence Sheldon, President and Chief Executive Officer of the
Company, noted that, "Shipments of manufactured housing within our
market area declined 20 percent this quarter as compared to the same
quarter last year. We are experiencing success in expanding our market
share within our market area to compensate for the decline of the
manufactured housing segment of the housing industry." He further
stated that, "The Company has implemented a strategy of acquiring a
substantial inventory of used axles and tires in this down market, so
as to retain them in our market, rather than allowing that supply to
be wholesaled to other regions. When market conditions improve, TJT
will be in an enviable position of having adequate raw materials for
recycling, rather than being dependent on new product."

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, Washington, California, and Colorado,
and serves 14 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 financial information can be
found at www.pinksheets.com, or you may contact:

Larry B. Prescott
Senior Vice President and Chief Financial Officer
T.J.T., Inc.
208-365-5321

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T.J.T., INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)

Mar. 31 Sept. 30
2008 2007
------- --------

Current assets:
Cash and cash equivalents $ 414 $ 1,834
Accounts receivable (net of allowances and
discounts of $29 and $16) 815 990
Current portion of notes receivable 5 122
Inventories 5,493 4,946
Prepaid expenses and other current assets 70 30
Income tax receivable 236 5
Deferred tax asset 47 46
------- --------

Total current assets 7,080 7,973

Property, plant and equipment, net of accumulated
depreciation 833 868

Notes receivable, net of current portion 47 49
Real estate held for investment 928 906
Other assets 351 342
Deferred tax asset 80 29
------- --------

Total assets $9,319 $10,167
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Current liabilities:
Accounts payable $ 277 $ 602
Accrued liabilities 418 394
Income tax payable - 78
------- --------

Total current liabilities 695 1,074

Deferred income and other noncurrent obligations 10 26
------- --------

Total liabilities 705 1,100

Non-controlling interest 24 4

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 outstanding 5 5
Capital surplus 5,845 5,832
Retained earnings 2,740 3,226
------- --------

Total shareholders' equity 8,590 9,063
------- --------

Total liabilities, shareholders' equity, and
non-controlling interest $9,319 $10,167
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T.J.T., INC.
CONSOLIDATED STATEMENTS OF OPERATION (Unaudited)
(Dollars in thousands except per share amounts)

Three Months Ended Six Months Ended
March 31, March 31,
----------------------- -----------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------

Sales (net of returns
and allowances):
Axles and tires $ 2,572 $ 2,663 $ 5,588 $ 5,394
Accessories and
siding 852 1,133 1,964 2,419
----------- ----------- ----------- -----------
Total sales 3,424 3,796 7,552 7,813

Cost of goods sold
Axles and tires 2,073 1,827 4,452 3,760
Accessories and
siding 571 807 1,318 1,725
----------- ----------- ----------- -----------
Total cost of
goods sold 2,644 2,634 5,770 5,485
----------- ----------- ----------- -----------

Gross profit 780 1,162 1,782 2,328

Selling, general and
administrative
expenses 1,209 1,120 2,628 2,316
----------- ----------- ----------- -----------

Operating income (429) 42 (846) 12

Interest income 8 21 26 49
Investment property
income 15 - 15 -
Undistributed equity
interest in joint
venture income - 40 - 71
Rental income - 5 3 12
Other income 8 (2) 11 (1)
----------- ----------- ----------- -----------

Income (loss) before
non-controlling
interest and taxes (399) 106 (792) 143
Non-controlling
interest 9 - 24 -
----------- ----------- ----------- -----------

Income (loss)
before taxes (390) 106 (768) 143

Income tax expense
(benefit) (133) 44 (282) 60
----------- ----------- ----------- -----------

Net income (loss) $ (257) $ 62 $ (486) $ 83
=========== =========== =========== ===========

Net income (loss) per
common share:
Basic (0.06) 0.01 (0.11) 0.02
Diluted (0.06) 0.01 (0.11) 0.02

Weighted average
shares outstanding:
Basic 4,532,862 4,518,583 4,532,862 4,511,686
Diluted 4,585,135 4,613,124 4,595,848 4,613,431
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T.J.T., INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)

For the six months ended March 31, 2008 2007
-------- --------

Cash flows from operating activities:
Net income $ (486) $ 83
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 120 111
Loss (gain) on sale of assets (11) 1
Undistributed equity earnings in joint venture - (71)
Non-controlling interest 20 -
Stock compensation 13 25
Change in accounts receivables 175 258
Change in inventories (547) (692)
Change in prepaid expenses and other current
assets (40) (113)
Change in accounts payable (325) (127)
Change in taxes (361) 60
Change in other assets and liabilities 14 (771)
-------- --------

Net cash provided (used) by operating
activities (1,428) (1,236)

Cash flows from investing activities:
Purchases of property, plant and equipment (117) (43)
Repayments received on notes receivable 103 4
Investment property purchases (22) (13)
Proceeds from sale of assets 44 2
-------- --------

Net cash provided (used) by investing
activities 8 (50)
-------- --------

Net increase (decrease) in cash and cash equivalents (1,420) (1,286)
Cash and cash equivalents at October 1 1,834 2,574
-------- --------

Cash and cash equivalents at March 31 $ 414 $ 1,288
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Supplemental information:
Value of stock received into treasury as payment
to exercise options $ - $ 14
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T.J.T., Inc.
Senior Vice President and Chief Financial Officer
Larry B. Prescott, 208-365-5321

Copyright Business Wire 2008