Tjt (AXLE) 8-K Results of Operations and Financial Condition

Exhibit 99.1

T.J.T., INC.

BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

At September 30,	2004		2003
Current assets:
Cash and cash equivalents	$	843	$	1,072
Accounts receivable (net of allowance for doubtful accounts of $23 and $68)	1,349		1,336
Notes receivable	105		38
Inventories	2,847		2,566
Prepaid expenses and other current assets	202		107
Total current assets	5,346		5,119
Property, plant and equipment, net ofaccumulated depreciation	728		594
Notes receivable	338		323
Notes receivable from related parties	-		89
Real estate held for investment	224		341
Investment in joint venture	676		452
Other assets	212		174
Deferred tax asset	179		450
Total assets	$	7,703	$	7,542
Current liabilities:
Accounts payable	$	556	$	864
Accrued liabilities	640		549
Total current liabilities	1,196		1,413
Deferred income and other noncurrent obligations	57		79
Total liabilities	1,253		1,492
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; 4,504,939 shares issued and outstanding	5		5
Capital surplus	5,791		5,788
Retained earnings	654		257
Total shareholders’ equity	6,450		6,050
Total liabilities and shareholders’ equity	$	7,703	$	7,542

T.J.T., INC.

STATEMENTS OF OPERATION

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended				Year Ended
	September 30,				September 30,
	2004		2003		2004		2003
Sales (net of returns and allowances):
Axles and tires	$	4,056	$	3,810	$	14,502	$	15,215
Accessories and siding	1,701		1,302		5,199		4,513
Total sales	5,757		5,112		19,701		19,728
Cost of goods sold
Axles and tires	3,195		2,920		11,312		12,332
Accessories and siding	1,150		930		3,569		3,149
Cost of goods sold	4,345		3,850		14,881		15,481
Gross profit	1,412		1,262		4,820		4,247
Selling, general and administrative expenses	1,343		1,061		4,669		4,259
Operating income (loss)	69		201		151		(12		)
Interest income	10		14		58		51
Investment property income (expense)	133		40		170		68
Undistributed equity interest in joint venture income	63		51		224		63
Rental income	8		20		49		34
Other income (expense)	8		7		21		24
Income (loss) before taxes	291		333		673		228
Income taxes (benefit)	123		129		276		96
Net income (loss)	$	168	$	204	$	397	$	132
Net income (loss) per common share
Basic and fully diluted:
Continuing operations	$	.04	$	.05	$	.09	$	.03
Net income (loss)	$	.04	$	.05	$	.09	$	.03
Weighted average shares outstanding	4,504,939		4,504,939		4,504,939		4,504,939

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T.J.T., INC.

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

For the year ended September 30,	2004			2003
Cash flows from operating activities:
Net income (loss)	$	397		$	132
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	170			226
(Gain) loss on sale of assets	(21		)	(32		)
(Gain) loss on sale of investment property	(170		)	(62		)
Equity earnings in joint venture	(224		)	(63		)
Stock compensation	3			-
Change in receivables	(18		)	(116		)
Change in inventory	(281		)	(232		)
Change in prepaid expenses and other current assets	(95		)	(8		)
Change in accounts payable	(308		)	209
Change in taxes	271			146
Change in other assets and liabilities	58			106
Net cash provided by operating activities	(218		)	306
Cash flows from investing activities:
Additions to property, plant and equipment	(304		)	(124		)
Payments on notes receivable	188			89
Issuance of notes receivable	(59		)	-
Proceeds from sale of assets	23			28
Investment in joint venture	-			(130		)
Land purchased for investment	(17		)	(17		)
Sale of land purchased for investment	158			153
Net cash provided (used) by investing activities	(11		)	(1		)
Cash flows from financing activities:
Net payments from debt	-			-
Net cash used by financing activities	-			-
Net increase in cash and cash equivalents	(229		)	305
Cash and cash equivalents at October 1	1,072			767
Cash and cash equivalents at September 30	$	843		$	1,072
Supplemental information:
Interest paid	$	1		$	1
Income tax refunds	-			50
Noncash transactions:
Sale of land by issuance of note receivable	$	35		$	120
Cumulative effect of accounting change	-			-
Prepaid operating lease	-			-
Reaquisition of investment property by cancellation of note receivable	-			-
Inventory invested in joint venture	-			259
Discounts granted for pay-off of notes receivables	18			-

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