Business Context and Reporting Period
Company: J. W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended July 31, 1997
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 30 people, with 20% covered by a union contract.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference from the Annual Report to Shareholders and are not explicitly detailed in the provided text. The following data points are available from the filing:
- Real Estate Investment (Gross Carrying Amount): $48,096,243 as of July 31, 1997.
- Accumulated Depreciation: $20,143,617 as of July 31, 1997.
- Real Estate Improvements (Fiscal 1997): $2,967,543.
- Depreciation Expense (Fiscal 1997): $910,019.
- Market Value of Voting Stock (Non-Affiliates): Approximately $9,268,515 as of September 26, 1997.
- Shares Outstanding: 2,135,780 as of September 26, 1997.
- Debt/Liquidity: The filing text does not provide specific values for total debt, cash flow, or liquidity ratios; these are incorporated by reference.
Material Changes and Property Portfolio
The Company owns or leases eight primary properties. Significant details regarding occupancy and lease expirations include:
- Brooklyn (Fulton/Bond): 380,000 sq. ft. Occupancy rate was 28.77% in 1997. One major tenant occupies 26.11% of rentable space.
- Brooklyn (Jowein Building): 430,000 sq. ft. (50% owned, 50% leased). Occupancy rate was 65.19% in 1997. Approximately 110,000 sq. ft. available for lease.
- Jamaica, NY: 297,000 sq. ft. Occupancy rate increased to 59.59% in 1997. Renovated 46,000 sq. ft. for office space in fiscal 1997. Approximately 83,000 sq. ft. available for lease.
- Fishkill, NY: 211,000 sq. ft. Occupancy dropped significantly to 12.28% in 1997. Approximately 186,000 sq. ft. available for lease.
- Levittown, Massapequa, and Circleville: These properties reported 100% occupancy for the fiscal year ended July 31, 1997.
Guidance, Risks, and Management Commentary
- Legal Proceedings: Various lawsuits and claims are pending. Management opines that the resolution of these matters will not have a material adverse effect on the financial statements.
- Accounting Changes: The filing references a change in the method of accounting for marketable securities (other investments) in 1995, noted in the auditor's report.
- Management Outlook: Specific guidance or forward-looking financial projections are incorporated by reference from the Annual Report to Shareholders and are not present in the text provided.
- Unusual Items: The filing notes a significant vacancy at the Fishkill property (87.72% vacancy rate) compared to other fully leased assets.
Investor Verification Checklist
- Verify the specific revenue and net income figures in the "Summary of Selected Financial Data" (incorporated by reference) to assess profitability trends.
- Review the "Consolidated Statements of Cash Flows" to determine liquidity and debt service capabilities, as these are not detailed in the text.
- Investigate the cause of the sharp decline in occupancy at the Fishkill, NY property (from 94.45% in 1993 to 12.28% in 1997) and the strategy for re-leasing 186,000 sq. ft.
- Confirm the status of pending legal proceedings to ensure no material liabilities have emerged since the filing date.
- Review the lease expiration schedule for the Brooklyn properties, noting that significant portions of the portfolio have leases expiring between 2001 and 2011.