Business Context and Reporting Period
Company: J.W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended July 31, 2003
Business Overview: The Company operates a portfolio of commercial real estate properties in New York and Ohio. It discontinued its department store business in 1989 and now focuses exclusively on leasing real estate. The Company employs approximately 31 people and has no foreign operations.
Key Financial Metrics
Note: Specific revenue, net income, and cash flow figures are incorporated by reference from the Annual Report to Shareholders and are not explicitly detailed in the provided text. The following metrics are derived from the filing text:
- Real Estate Assets: Total cost of office and rental buildings at July 31, 2003, was $59,411,145.
- Accumulated Depreciation: $26,240,399 as of July 31, 2003.
- Net Carrying Value of Real Estate: Approximately $33,170,746 (Calculated as Cost less Accumulated Depreciation).
- Debt: Fixed-rate debt totaled $7,778,871 as of July 31, 2003. The Company uses no derivative financial instruments.
- Market Capitalization: Aggregate market value of voting stock held by non-affiliates was approximately $5,710,291 as of January 31, 2003.
- Shares Outstanding: 2,015,780 shares as of September 18, 2003.
- Accounting Fees: Total fees paid to auditors (D'Arcangelo & Co., LLP) for fiscal 2003 were $77,523 ($57,498 for audit fees).
Material Changes and Property Updates
- Brooklyn (Fulton St. at Bond St.): The Company is renovating approximately 22,000 square feet for office space, with completion anticipated in December 2003. One major tenant (26.11% of rentable space) subleases to various retail shops.
- Brooklyn (Jowein Building): Plans to renovate 8,300 square feet for office space commenced in August 2003. A major tenant (33.33% of rentable space) elected to terminate its lease effective May 31, 2004. Approximately 87,000 square feet were available for lease.
- Jamaica, NY: A department store vacated in March 2003. The Company completed a project in September 2003 dividing approximately 80,000 square feet into three separate retail stores.
- Circleville, OH: The lease with the sole tenant (a manufacturer) expired September 30, 2002, but was extended and modified for a three-year period through September 30, 2005.
- Management Changes: Alex Slobodin, Executive Vice President and Treasurer, passed away on June 28, 2003. Mark Greenblatt was appointed Vice President and Treasurer in August 2003.
Outlook, Risks, and Contingencies
- Forward-Looking Statements: The filing includes standard cautionary statements regarding future market conditions, economic trends, and regulatory changes that could cause actual results to differ from expectations.
- Interest Rate Risk: The Company utilizes fixed-rate debt exclusively. Management states that a 100 basis point increase in interest rates would have no effect on net income or cash flows.
- Legal Proceedings: Various lawsuits and claims are pending. Management believes the resolution of these matters will not have a material adverse effect on the financial statements.
- Lease Expirations: Significant lease expirations are noted, including a major tenant termination at the Jowein building in May 2004 and the Massapequa sub-lease expiring in April/May 2009.
Investor Verification Checklist
- Verify the impact of the May 2004 lease termination by the major tenant (33.33% of space) at the Jowein building on future rental income.
- Confirm the completion and leasing status of the 22,000 sq. ft. renovation at the Fulton Street property and the 80,000 sq. ft. conversion in Jamaica.
- Review the full Consolidated Financial Statements (incorporated by reference) for specific revenue, net income, and cash flow figures not detailed in this summary.
- Assess the occupancy rates and rental rates for the 87,000 sq. ft. of available space at the Jowein building.
- Monitor the status of pending legal proceedings to ensure no material adverse effects arise.