SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission file number 1-3647
J.W. Mays, Inc.
(Exact name of registrant as specified in its charter)
New York 11-1059070
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9 Bond Street, Brooklyn, New York 11201-5805
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 718-624-7400
Not Applicable
(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 90 days.
Yes X . No .
Number of shares outstanding of the issuer's common stock as of the latest
practicable date.
Class Outstanding at March 7, 2001
Common Stock, $1 par value 2,063,280 shares
This report contains 16 pages.
-1-
J. W. MAYS, INC.
INDEX
Page No.
Part I - Financial Information:
Consolidated Balance Sheet 3
Consolidated Statement of Income
and Retained Earnings 4
Consolidated Statement of Comprehensive Income 4
Consolidated Statement of Cash Flows 5
Notes to Consolidated Financial Statements 6 - 11
Management's Discussion and Analysis of Results
of Operations and Financial Condition 12 - 14
Part II - Other Information 15
-2-
J. W. MAYS, INC.
CONSOLIDATED BALANCE SHEET
January 31, July 31,
ASSETS 2001 2000
--------------------------------------------------------------- --------------- ---------------
(Unaudited) (Audited)
Property and Equipment - Net (Notes 3 and 5) $30,305,211 $29,554,405
------------- -------------
Current Assets:
Cash and cash equivalents 1,097,186 1,529,082
Marketable securities (Note 4) 42,764 41,685
Receivables (Note 7) 345,795 215,872
Deferred income taxes 183,000 180,000
Security deposits - 33,125
Prepaid expenses 873,343 1,005,279
------------- -------------
Total current assets 2,542,088 3,005,043
------------- -------------
Other Assets:
Deferred charges 2,794,794 2,619,188
Less accumulated amortization 1,535,723 1,466,651
------------- -------------
Net 1,259,071 1,152,537
Security deposits 653,611 613,799
Unbilled receivables (Note 7) 4,735,808 4,735,115
Unbilled receivables - affiliated company (Note 7) 272,907 363,875
Marketable securities (Note 4) 3,326,632 3,059,770
------------- -------------
Total other assets 10,248,029 9,925,096
------------- -------------
TOTAL ASSETS $43,095,328 $42,484,544
============= =============
LIABILITIES AND SHAREHOLDERS ' EQUITY
---------------------------------------------------------------
Long-Term Debt:
Mortgages payable (Note 5) $6,138,850 $5,999,844
Other (Note 6) 356,593 362,443
------------- -------------
Total long-term debt 6,495,443 6,362,287
------------- -------------
Deferred Income Taxes 2,617,000 2,333,000
------------- -------------
Current Liabilities:
Accounts payable 60,634 43,663
Payroll and other accrued liabilities 507,752 756,660
Income taxes payable 27,689 22,365
Other taxes payable 5,182 3,414
Current portion of long-term debt - mortgages payable (Note 5) 1,040,133 1,023,035
Current portion of long-term debt - other (Note 6) 95,333 137,125
------------- -------------
Total current liabilities 1,736,723 1,986,262
------------- -------------
Total liabilities 10,849,166 10,681,549
------------- -------------
Shareholders' Equity:
Common stock, par value $1 each share (shares - 5,000,000
authorized; 2,178,297 issued) 2,178,297 2,178,297
Additional paid in capital 3,346,245 3,346,245
Unrealized gain on available for sale securities 272,732 63,117
Retained earnings 27,209,240 26,761,938
------------- -------------
33,006,514 32,349,597
Less common stock held in treasury, at cost - 115,017
shares at January 31, 2001 and 90,017 shares at July 31, 200 760,352 546,602
------------- -------------
Total shareholders' equity 32,246,162 31,802,995
------------- -------------
Contingencies (Note 11)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $43,095,328 $42,484,544
============= =============
See Notes to Consolidated Financial Statements.
-3-
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
Three Months Ended Six Months Ended
January 31, January 31,
--------------- ---------------- --------------- ----------------
2001 2000 2001 2000
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Rental income (Notes 7 and 10) $2,708,163 $2,623,769 $5,341,652 $5,225,271
Rental income - affiliated company 103,402 103,402 206,805 206,805
-------------- -------------- -------------- --------------
Total revenues 2,811,565 2,727,171 5,548,457 5,432,076
-------------- -------------- -------------- --------------
Expenses
Real estate operating expenses 1,558,593 1,438,043 2,964,582 2,796,885
Administrative and general expenses 667,491 620,188 1,213,307 1,162,501
Bad debt (recovery) - - (47,532) -
Depreciation and amortization 262,277 248,641 523,554 494,882
-------------- -------------- -------------- --------------
Total expenses 2,488,361 2,306,872 4,653,911 4,454,268
-------------- -------------- -------------- --------------
Income from operations before investment income,
interest expense and income taxes 323,204 420,299 894,546 977,808
-------------- -------------- -------------- --------------
Investment income and interest expense:
Investment income 61,502 69,794 121,790 134,189
Interest expense (Notes 5 and 9) (141,879) (158,736) (286,034) (319,140)
-------------- -------------- -------------- --------------
(80,377) (88,942) (164,244) (184,951)
-------------- -------------- -------------- --------------
Income before income taxes 242,827 331,357 730,302 792,857
Income taxes provided 109,000 134,000 283,000 301,000
-------------- -------------- -------------- --------------
Net income 133,827 197,357 447,302 491,857
Retained earnings, beginning of period 27,075,413 25,990,500 26,761,938 25,696,000
-------------- -------------- -------------- --------------
Retained earnings, end of period $27,209,240 $26,187,857 $27,209,240 $26,187,857
============== ============== ============== ==============
Net income per common share (Note 2) $.07 $.09 $.22 $.23
============== ============== ============== ==============
Dividends per share $- $- $- $-
============== ============== ============== ==============
Weighted average common shares outstanding 2,063,280 2,135,780 2,074,829 2,135,780
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Three Months Ended Six Months Ended
January 31, January 31,
--------------- ---------------- --------------- ----------------
2001 2000 2001 2000
-------------- -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income $133,827 $197,357 $447,302 $491,857
-------------- -------------- -------------- --------------
Other comprehensive income (loss), net of taxes
Unrealized gain (loss) on available-for-sale securities:
Net of taxes (benefit) of $76,000 and $(53,000) for the
three months ended January 31, 2001 and 2000, respectively,
and $108,000 and $(98,000) for the six months ended
January 31, 2001 and 2000, respective
147,725 (103,130) 209,615 (189,961)
Less reclassification adjustment 248 - 248 -
-------------- -------------- -------------- --------------
Other comprehensive income (loss) 147,973 (103,130) 209,863 (189,961)
-------------- -------------- -------------- --------------
Comprehensive Income $281,800 $94,227 $657,165 $301,896
============== ============== ============== ==============
See Notes to Consolidated Financial Statements.
-4-
J. W. MAYS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended
January 31,
-------------- ---------------
2001 2000
--------------- ---------------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net income $447,302 $491,857
Adjustments to reconcile income to
net cash provided by operating activities:
Realized gain on marketable securities (248) -
Depreciation and amortization 523,554 494,882
Amortization of deferred expenses 106,074 105,206
Other assets - deferred expenses (212,608) (49,985)
- unbilled receivables (693) (159,731)
- unbilled receivables - affiliated company 90,968 90,968
- receivables - 6,626
Deferred income taxes 173,000 223,000
Changes in:
Receivables (129,923) 277,171
Prepaid expenses 131,936 120,114
Income taxes refundable - 28,092
Accounts payable 16,971 13,936
Payroll and other accrued liabilities (248,908) 81,332
Income taxes payable 5,324 -
Other taxes payable 1,768 1,628
------------- -------------
Cash provided by operating activities 904,517 1,725,096
------------- -------------
Cash Flows From Investing Activities:
Capital expenditures (1,274,360) (832,337)
Security deposits (6,687) (6,789)
Marketable securities:
Receipts from sales or maturities 51,001 50,000
Payments for purchases (1,079) (217,062)
------------- -------------
Cash (used) by investing activities (1,231,125) (1,006,188)
------------- -------------
Cash Flows From Financing Activities:
Borrowings - mortgage and other debt 580,000 -
Increase - security deposits 4,358 4,428
Payments - mortgages and other debt (475,896) (453,360)
Purchase of treasury stock (213,750) -
------------- -------------
Cash (used) by financing activities (105,288) (448,932)
------------- -------------
Increase (decrease) in cash (431,896) 269,976
Cash and cash equivalents at beginning of period 1,529,082 1,489,843
------------- -------------
Cash and cash equivalents at end of period $1,097,186 $1,759,819
============= =============
See Notes to Consolidated Financial Statements.
-5-
J. W. MAYS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Accounting Records and Use of Estimates:
The accounting records are maintained in accordance with generally accepted
accounting principles ("GAAP"). The preparation of the Company's financial
statements in accordance with GAAP requires management to make estimates
that affect the reported consolidated balance sheets, consolidated
statements of income and retained earnings and consolidated statements of
comprehensive income and related disclosures. Actual results could differ
from those estimates.
The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-Q. The July 31, 2000 balance sheet was derived
from audited financial statements but does not include all disclosures
required by GAAP. The interim financial statements and notes thereto
should be read in conjunction with the financial statements and notes
included in the Company's latest Form 10-K Annual Report for the year ended
July 31, 2000. In the opinion of management, the interim financial
statements reflect all adjustments of a normal recurring nature necessary
for a fair statement of the results for interim periods. The results of
operations for the current period are not necessarily indicative of the
results for the entire year ending July 31, 2001.
2. Income Per Share of Common Stock:
Income per share has been computed by dividing the net income for the
periods by the weighted average number of shares of common stock
outstanding during the periods, adjusted for the purchase of treasury
stock. Shares used in computing income per share were 2,063,280 and
2,074,829 for the three and six months ended January 31, 2001,
respectively, and 2,135,780 for each of the three and six month periods
ended January 31, 2000. The Company's adoption of Statement of Financial
Standards No. 128 ("SFAS 128"), "Earnings Per Share", has had no effect on
the computation of previously reported earnings per share.
3. Property and Equipment - at cost:
January 31, July 31,
2001 2000
--------------- ---------------
Property:
Buildings and improvements $39,774,432 $38,917,272
Improvements to leased property 9,158,009 9,158,009
Land 4,008,835 4,008,835
Construction in progress 621,417 246,342
------------- -------------
53,562,693 52,330,458
Less accumulated depreciation 23,489,252 22,991,894
------------- -------------
Property - net 30,073,441 29,338,564
------------- -------------
Fixtures and equipment and other:
Fixtures and equipment 598,126 572,189
Other fixed assets 211,741 209,223
------------- -------------
809,867 781,412
Less accumulated depreciation 578,097 565,571
------------- -------------
Fixtures and equipment and other - net 231,770 215,841
------------- -------------
Property and equipment - net $30,305,211 $29,554,405
============= =============
-6-
4. Marketable Securities:
The Company categorizes marketable securities as either trading, available-for-
sale or held-to-maturity. Trading securities are carried at fair value with
unrealized gains and losses included in income. Available-for-sale securities
are carried at fair value with unrealized gains and losses recorded as a
separate component of shareholders' equity. Held-to-maturity securities are
carried at amortized cost. Dividends and interest income are accrued as earned.
As of January 31, 2001, the Company's marketable securities were classified as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
------------- ------------- ------------- -------------
Current:
Certificate of deposit $42,764 $- $- $42,764
============= ============= ============= =============
Noncurrent:
Available-for-sale:
Equity securities $2,913,900 $412,732 $- $3,326,632
============= ============= ============= =============
Investment income consists of the following:
Three Months Ended Six Months Ended
January 31, January 31,
------------- ------------- ------------- -------------
2001 2000 2001 2000
------------- ------------- ------------- -------------
Interest income $10,325 $18,771 $24,728 $37,126
Dividend income $50,929 $51,023 $96,814 $97,063
Gain on sale of securities 248 - 248 -
------------- ------------- ------------- -------------
Total $61,502 $69,794 $121,790 $134,189
============= ============= ============= =============
-7-
5. Long-Term Debt:
January 31, 2001 July 31, 2000
-------------------------------- ----------------------------
Current
Annual Final Due Due Due Due
Interest Payment Within After Within After
Rate Date One Year One Year One Year One Year
------- -------- ------------- ------------- ------------- ----------
Mortgages:
Jamaica, New York property (a) 8 1/2 % 4/01/07 $266,667 $2,733,333 $266,666 $2,866,667
Jamaica, New York property (b) Variable 3/01/07 - 580,000 - -
Jowein building, Brooklyn, N.Y. (c) 9 % 3/31/05 107,820 424,710 103,128 479,819
Fishkill, New York property (d) 8 1/4 % 7/01/04 93,060 2,116,014 89,312 2,163,500
Circleville, Ohio property (e) 7 % 9/30/02 403,097 284,793 389,272 489,858
Brooklyn, New York property (f) 8 1/2 % 5/01/01 169,489 - 174,657 -
-------------- -------------- -------------- -----------
Total $1,040,133 $6,138,850 $1,023,035 $5,999,844
============== ============== ============== ===========
(a) The Company, on September 11, 1996, closed a loan with a bank in the
amount of $4,000,000. The loan is secured by a first mortgage lien covering
the entire leasehold interest of the Company, as tenant, in a certain ground
lease and building in the Jamaica, New York property. The interest rate on
the loan is 8 1/2% for a period of five (5) years and six (6) months, with
such rate to change on the first day of the sixty-seventh (67th) month of the
term to a rate equal to the then prime rate plus 1/4%, fixed for the balance
of the term. The loan is to become due and payable on the first day of the
month following the expiration of ten (10) years and six (6) months from the
closing date.
(b) The Company, on December 13, 2000, closed a loan with a bank in the
amount of $3,500,000. The loan is secured by a second position leasehold
mortgage covering the entire leasehold interest of the Company as tenant in a
certain ground lease and building in the Jamaica, New York property. The
loan proceeds are to be utilized by the Company toward its costs of capital
improvements of the premises in connection with the Company's lease of a
significant portion of a floor in the building to the State of New York.
The loan is structured in two phases:
1.) A fifteen-month construction term with interest only on the amount
owing at a floating rate per annum equal to the prime rate. During this
period, the Company is to have the option to secure advances against the
loan amount.
2.) Upon completion of the renovations, the construction loan would
convert to a ten (10) year second mortgage permanent loan on a fifteen
(15) year level amortization, plus interest, at the option of the
Company. The interest rate on the permanent loan during the first five
(5) years is at a fixed rate per annum equal to 2.25% above the five (5)
year Treasury Note Rate in effect at the time of conversion to a
permanent loan. The interest rate during the five (5) year renewal term
is at a fixed rate per annum equal to 2.25% above the 5-year Treasury
Note Rate, as of the start of the renewal term.
Payments are to be made, in arrears, on the first day of each and every
month calculated (a) during the period of the construction loan, interest
only, and (b) during the ten (10) year period of the term loan, at the sum
of the interest rate plus amortization sufficient to fully liquidate the
loan over a fifteen (15) year period. As additional collateral security,
the Company will conditionally assign to the bank all leases and rents on
the premises, or portions thereof, whether now existing or hereafter
-8-
consummated. The Company has an option to prepay principal, in whole or
in part, plus interest accrued thereon, at any time during the term,
without premium or penalty. Other provisions of the loan agreement
provide certain restrictions on the incurrence of indebtedness and the
sale or transfer of the Company's ground lease interest in the premises.
Both credit facilities will be subject to the bank's existing first
position mortgage loan on the premises.
(c)Mortgage is held by an affiliated corporation owned by members, including
certain directors of the Company, of the family of the late Joe Weinstein,
former Chairman of the Board of Directors. Interest and amortization of
principal are paid quarterly. Effective April 1, 2000, the maturity date of
the mortgage which was scheduled to be on March 31, 2000 was extended to
March 31, 2005. The interest rate remained at 9%. During the extended
period the constant quarterly payments of interest and principal increased
from $37,263 to $38,044. The mortgage loan is self-amortizing.
(d)On June 2, 1999, the existing first mortgage loan balance on the Fishkill
property was extended for a period of five years. The annual interest rate
was reduced from 9% to 8 1/4% and the interest and principal payments are
to be made in constant monthly amounts based upon a fifteen (15) year
payout period.
(e)The mortgage loan, which is self-amortizing, matures September 30, 2002.
The loan is payable at an annual interest rate of 7%. Under the terms of
the loan, constant monthly payments, including interest and principal, are
currently in the amount of $36,540.
(f)The Company has determined that it will payoff this mortgage May 1, 2001.
6. Long-Term Debt - Other:
Long-Term debt - Other consists of the following:
January 31, 2001 July 31, 2000
------------------------------- -------------------------------
Due Due Due Due
Within After Within After
One Year One Year One Year One Year
------------- ------------- ------------- -------------
Deferred compensation * $95,333 $- $104,000 $43,333
Lease security deposits ** - 356,593 33,125 319,110
------------- ------------- ------------- -------------
Total $95,333 $356,593 $137,125 $362,443
============= ============= ============= =============
* In fiscal 1964 the Company entered into a deferred compensation
agreement with Max L. Shulman, its then Chairman of the Board. The
agreement, as amended, provides for a total of $520,000 to be paid in
monthly installments of $8,666.67 for a period of 60 months, payable
upon the expiration of his employment, retirement or permanent
disability as defined in the agreement, or death. Mr. Shulman retired
as an employee on December 31, 1996 and the monthly payments commenced
January, 1997.
**Does not include three irrevocable letters of credit totaling $291,500
at January 31, 2001 and $275,000 at July 31, 2000, provided by three
tenants.
-9-
7. Unbilled Receivables and Rental Income:
Unbilled receivables represent the excess of scheduled rental income
recognized on a straight-line basis over rental income as it becomes
receivable according to the provisions of each lease.
Rental income includes $103,402 for each of the quarters ended January 31,
2001 and January 31, 2000, and $206,805 for each of the six month periods
ended January 31, 2001 and January 31, 2000, representing rentals from an
affiliated company.
Amounts due from the affiliated company are as follows:
January 31, July 31,
2001 2000
-------------- ------------
$272,907 $363,875
-------------- ------------
8. Employees' Retirement Plan:
The Company sponsors a noncontributory Money Purchase Plan covering
substantially all of its employees. Operations were charged $64,435 and
$122,880 as contributions to the Plan for the three and six months ended
January 31, 2001, respectively, and $66,046 and $120,086 as contributions
to the plan for the three and six months ended January 31, 2000,
respectively.
9. Cash Flow Information:
For purposes of reporting cash flows, the Company considers cash
equivalents to consist of short-term highly liquid investments with
maturities of three months or less, which are readily convertible into
cash.
Supplemental disclosure: Six Months Ended
January 31,
------------------------------
2001 2000
__________ __________
Interest paid, net of capitalized interest of $288,852 $321,792
$3,270 for the 2001 six month period. There
was no amount for the 2000 six month period.
Income taxes paid $104,676 $49,908
10. Financial Instruments and Credit Risk Concentrations:
Financial instruments that are potentially subject to concentrations of
credit risk consist principally of marketable securities, cash and cash
equivalents and receivables. Marketable securities and cash and cash
equivalents are placed with high credit quality financial institutions and
instruments to minimize risk.
The Company derives rental income from thirty-eight tenants, of which one
tenant accounted for more than 10% of rental income during the three
months ended January 31, 2001. That tenant accounted for 15.83% of rental
income.
-10-
11. Contingencies:
Jamesway Corporation ("Jamesway"), which occupied retail space in the
Fishkill, New York property and whose lease extended to January 31, 2005,
filed for relief under Chapter 11 of the Bankruptcy Code on October 18,
1995. Jamesway rejected its lease for the Fishkill location with the
approval of the Bankruptcy Court, effective February 29, 1996, but
continued occupancy until March 22, 1996. The Company has realized from
Jamesway $513,343, or 54% on account of its unsecured claim, and 100% of
its allowed administrative claim of $54,887, for a total of $568,230. The
Company has made no provision in its financial statements for the balance
of its claims filed against Jamesway due to the fact that the recovery of
$47,532 in the six months ended January 31, 2001 represents the final
recovery from Jamesway.
There are various lawsuits and claims pending against the Company. It is
the opinion of management that the resolution of these matters will not
have a material adverse effect on the Company's Consolidated Financial
Statements.
-11-
J. W. MAYS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Results of Operations:
Three Months Ended January 31, 2001 Compared to the Three Months Ended January
31, 2000:
In the three months ended January 31, 2001, the Company reported net income of
$133,827, or $.07 per share. In the comparable three months ended January 31,
2000, the Company reported net income of $197,357, or $.09 per share.
Revenues in the current three months increased to $2,811,565 from $2,727,171
in the comparable 2000 three months. The increase is primarily due to the
leasing of 11,200 square feet to a tenant at the Company's Jamaica, New York
property. The lease commenced September 1, 2000.
Real estate operating expenses in the current three months increased to
$1,558,593 from $1,438,043 in the comparable 2000 three months primarily due
to an increase in real estate taxes, utility and maintenance costs, partially
offset by a decrease in water and sewer costs and licenses and permits.
Administrative and general expenses in the current three months increased to
$667,491 from $620,188 in the comparable 2000 three months primarily due to an
increase in payroll and medical costs, partially offset by a decrease in legal
and professional costs.
Depreciation and amortization expense in the current three months increased to
$262,277 from $248,641 in the comparable 2000 three months.
Interest expense in the current three months exceeded investment income by
$80,377 and by $88,942 in the comparable 2000 three months. The decrease was
due to scheduled repayments of debt.
Six Months Ended January 31, 2001 Compared to the Six Months Ended January 31,
2000:
In the six months ended January 31, 2001, the Company reported net income of
$447,302, or $.22 per share. In the comparable six months ended January 31,
2000, the Company reported net income of $491,857, or $.23 per share.
Revenues in the current six months increased to $5,548,457 from $5,432,076 in
the comparable 2000 six months. The increase is primarily due to the leasing
of 11,200 square feet to a tenant at the Company's Jamaica, New York property.
The lease commenced September 1, 2000.
Real estate operating expenses in the current six months increased to
$2,964,582 from $2,796,885 in the comparable 2000 six months primarily due to
an increase in real estate taxes, utility and maintenance costs, partially
offset by a decrease in water and sewer costs and licenses and permits.
Administrative and general expenses in the current six months increased to
$1,213,307 from $1,162,501 in the comparable 2000 six months primarily due to
an increase in payroll and medical costs, partially offset by a decrease in
legal and professional costs.
-12-
Depreciation and amortization expense in the current six months increased to
$523,554 from $494,882 in the comparable 2000 six months.
Interest expense in the current six months exceeded investment income by
$164,244 and by $184,951 in the comparable 2000 six months. The decrease was
due to scheduled repayments of debt.
The bad debt recovery in the amount of $47,532 in the six months ended January
31, 2001 relates to the bad debt write-off of $424,011 in the 1996 fiscal
year. See Note 11 to the Consolidated Financial Statements. There was no
comparable item in the 2000 six month period.
The Company purchased 25,000 shares of its outstanding common stock during the
six months ended January 31, 2001. The effect on earnings per share for the
six months ended January 31, 2001 was $.0014.
Liquidity and Capital Resources:
The Company has been operating as a real estate enterprise since the
discontinuance of the retail department store segment of its operations on
January 3, 1989.
Management considers current working capital and borrowing capabilities
adequate to cover the Company's planned operating and capital requirements.
The Company's cash and cash equivalents amounted to $1,097,186 at January 31,
2001.
The Company, on October 20, 2000, completed a lease with the State of New York
for 42,250 square feet of office space in the Company's Jamaica, New York
property. Occupancy is anticipated to commence on or about August 1, 2001.
See note 5(b) for details of a loan with a bank, closed by the Company on
December 13, 2000, to cover the cost of capital improvements in connection
with the aforementioned lease of 42,250 square feet.
During fiscal 2000, the Company leased an additional 11,200 square feet of
office space to the State of New York which space is contiguous to the
existing office space occupied by the State in the Company's Jamaica, New York
property. Rent for the additional space commenced September 1, 2000.
The Company has a mortgage on its Brooklyn, New York property which becomes
due on May 1, 2001. The Company has determined that it will payoff this
mortgage May 1, 2001.
The Company will increase its cash flow by $398,415 due to scheduled rental
increases from existing tenants for the year ending July 31, 2001
Cash Flows From Operating Activities:
Deferred Expenses: Cash expenditures for the six months ended January 31,
2001 increased by $154,158 due primarily to legal and professional costs in
obtaining a new tenant and financing costs to obtain a loan, the proceeds of
which are to be utilized by the Company toward its cost of capital
improvements relating to the new tenant's occupancy at the Company's Jamaica,
New York building. Occupancy is anticipated to commence on or about August 1,
2001.
Receivables: The Company is due the amount of $240,065 as of January 31, 2001
for expenditures for renovations made on behalf of one tenant at the Jamaica,
New York building.
-13-
Prepaid Expenses: Cash expenditures for the six months ended January 31, 2001
increased by $32,843 compared to the comparable six months ended January 31,
2000, due primarily to a increase in real estate taxes.
Cash Flows From Investing Activities:
Capital Expenditures: The Company had expenditures of $1,620,775 ($928,114,
for the six months ended January 31, 2001) to renovate 11,200 square feet of
additional space for an existing tenant and 42,250 square feet for a new
tenant at its Jamaica, New York building, of which $499,758 is applicable to
the six months ended January 31, 2001 and is to be reimbursed by the tenants.
The Company anticipates that the total renovations will cost approximately
$4,500,000 of which approximately $1,558,903 will be reimbursed by the
tenants. The renovation for the 11,200 square feet was completed during
December, 2000 and the renovation for the 42,250 square feet is anticipated to
be completed on or about August, 2001.
The Company had expenditures of $214,907 for the six months ended January 31,
2001 for renovations of its Fishkill, New York building. The Company
anticipates that the total renovations will cost approximately $237,000 and
will be completed during March, 2001.
Cash Flows From Financing Activities:
Borrowing: Mortgage Debt - The Company secured financing from a bank in the
principal amount of $3,500,000 (see note 5 (b). As of January 31, 2001, the
Company secured advances of $580,000 against the principal amount.
The Company purchased 25,000 shares of its outstanding common stock in a
private transaction for a total purchase price of $213,750 in the six months
ended January 31, 2001.
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Part II - Other Information
Item 6 - Exhibits and Reports on Form 8-K
(a) List of Exhibits:
Sequentially
Exhibit Numbered
Number Exhibit Page
(2) Plan of acquisition, reorganization, arrangement,
liquidation or succession. N/A
(4) Instruments defining the rights of security holders,
including indentures. N/A
(10) Material contracts. N/A
(11) Statement re computation of per share earnings. N/A
(15) Letter re unaudited interim financial information. N/A
(18) Letter re change in accounting principles. N/A
(19) Report furnished to security holders. N/A
(22) Published report regarding matters submitted to vote
of security holders. N/A
(24) Power of attorney. N/A
(27) Financial data schedule. N/A
(99) Additional exhibits. N/A
(b) Reports on Form 8-K - No report on Form 8-K was required to be filed
by the Company during the three months ended January 31, 2001.
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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.
J.W. MAYS, Inc.
(Registrant)
Date March 7, 2001 Lloyd J. Shulman
Lloyd J. Shulman
Chairman
Date March 7, 2001 Alex Slobodin
Alex Slobodin
Exec. Vice-President
(Principal Financial Officer)
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