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T.J.T. Reports 63 Percent Higher Net Income For Fourth Quarter; Sales Double For Full Year
November 20, 1997 08:06
EMMETT, Idaho--(BUSINESS WIRE)--Nov. 20, 1997--T.J.T., Inc. (NASDAQ Smallcap: AXLE), a supplier of axles and tires to the manufactured housing industry, today reported that sales more than doubled for the year ended Sept. 30, 1997, boosted by 125 percent higher sales in the fourth quarter.
Sales for fiscal 1997 rose to $25.4 million, up significantly from $12.7 million, reflecting the addition of operations acquired in Washington and California since fiscal 1996. Net income increased 50 percent to $477,000 from $318,000 a year ago. On a per share basis, 1997 earnings were $0.11 compared to $0.10 last year as average shares outstanding increased 35 percent.
For the fourth quarter ended Sept. 30, 1997, sales soared 125 percent to $8.7 million from $3.9 million in the comparable 1996 period. Net income was $274,000, or $0.06 per share, compared to $168,000, or $0.05, a year ago.
Net income performance in the quarter was affected by higher inventory costs stemming from the purchase of used axles and tires outside T.J.T.'s normal market area and by higher selling, general and administrative expenses. SG&A increases reflected costs associated with absorbing the recently merged Leg-It Tire Co. and the establishment of recycling operations in Colorado.
"We are pleased with our operating accomplishments and financial results for both the year and the quarter," said Terrence J. Sheldon, president and chief executive officer of T.J.T.
"Our sales growth is a direct result of our successful acquisition strategy," said Sheldon. "And, the full impact of acquisitions made in fiscal 1997 are not seen in the year-end results."
T.J.T. acquired Bradley Enterprises, located in Centralia, Wash., in November 1996. The most recent acquisition of Leg-It Tire, located near Sacramento, Calif., was finalized in July 1997.
"In the fourth quarter, T.J.T. opened a new recycling facility in Colorado, northeast of Denver in Platteville, which strengthens our market presence as a supplier to the manufactured housing industry in the West," Sheldon explained. "Although we incurred one-time costs in the quarter to set up the operation, this move puts us closer to serving existing customers in the area and provides an opportunity to cost effectively extend our market area. It also expands our access to the supply of used axles and tires." The company currently has operations in Emmett, Idaho; Centralia, Wash., and Woodland, Calif.
Sheldon said that T.J.T. plans to continue expanding its operations in new locations and is currently looking at the southern California and Arizona market area. "We are encouraged about the prospects for growth in fiscal 1998," he said.
Established in 1977, T.J.T. purchases axles and tires that have been used to transport manufactured homes. After reconditioning the axles and inspecting the tires, T.J.T. resells the units to manufactured home factories for reuse -- recycling resources that once were relegated to landfills. It also distributes vinyl siding primarily to the constructed or "site-built" housing market and supplies skirting and other aftermarket accessory products to manufactured housing dealers. The company has 10 consecutive years of profitability.
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Walt, thanx for the response,
Jack |
