Business Context and Reporting Period
Company: J.W. Mays, Inc. (MAYS)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Nine months ended April 30, 2025 (Fiscal Year 2025)
Business Overview: The Company operates commercial real estate properties, primarily leasing office and retail space. It is classified as a non-accelerated filer and a smaller reporting company. The Company has one operating segment.
Key Financial Metrics
| Metric | Nine Months Ended April 30, 2025 |
Nine Months Ended April 30, 2024 |
Three Months Ended April 30, 2025 |
|---|---|---|---|
| Total Revenues | $16,814,724 | $16,102,968 | $5,632,151 |
| Net Income/(Loss) | $(44,240) | $(375,483) | $86,784 |
| EPS (Basic & Diluted) | $(0.02) | $(0.19) | $0.04 |
| Operating Cash Flow | $3,347,851 | $2,852,137 | N/A |
| Total Assets | $87,855,809 | $89,525,035 | N/A |
| Total Liabilities | $35,001,912 | $36,626,898 | N/A |
| Shareholders' Equity | $52,853,897 | $52,898,137 | N/A |
| Cash & Equivalents | $2,278,824 | $1,243,977 | N/A |
| Mortgages Payable (Net) | $3,275,692 | $3,874,246 | N/A |
Material Changes vs. Prior Period
- Profitability Improvement: The Company reported a net loss of $(44,240) for the nine months ended April 30, 2025, a significant improvement from the $(375,483) loss in the prior year period. For the most recent quarter, the Company returned to profitability with net income of $86,784.
- Revenue Growth: Revenues increased by approximately 4.4% year-over-year for the nine-month period, driven by increased rent from existing tenants and new leases, partially offset by tenant losses.
- Expense Management: Administrative and general expenses decreased by approximately 5.5% year-over-year due to reduced executive payroll costs and legal fees. However, real estate operating expenses increased by 3.1% due to higher real estate taxes and insurance costs.
- Debt Reduction: The Company paid off a $5.4 million mortgage on the Bond Street building in December 2024. Remaining debt consists of a single mortgage of approximately $3.3 million on the Fishkill building.
- Cash Position: Cash and cash equivalents increased by over $1 million compared to the prior year-end, supported by strong operating cash flows of $3.35 million.
Outlook, Risks, and Contingencies
- Leasing Activity: The Company secured several new leases and extensions in late 2024 and early 2025, including a 10-year lease at 9 Bond Street and expansions at the Circleville, Ohio warehouse. However, the Company also noted upcoming lease expirations in mid-2025 that could result in approximately $1.15 million in annual rental income loss if not renewed.
- Capital Expenditures: The Company anticipates incurring an additional $1.2 million in capital expenditures over the next twelve months.
- Debt Risk (Balloon Payment): The remaining $3.3 million mortgage on the Fishkill building has a stated maturity of 2040 but includes a provision allowing the lender to demand full repayment (balloon payment) at any time after April 1, 2025. While the bank has not indicated intent to accelerate, this creates liquidity uncertainty.
- Related Party Transactions: The Company leases three properties from Weinstein Enterprises, Inc., an entity principally owned by the Chairman of the Board. Rent payments to this related party totaled $759,453 for the nine months ended April 30, 2025.
- Legal Proceedings: The Company is subject to ordinary course litigation (e.g., slip and fall claims), which management does not expect to have a material adverse effect.
Investor Verification Checklist
- Refinancing Risk: Verify the Company's ability to refinance the $3.3 million Fishkill mortgage if the lender exercises its right to demand full payment after April 1, 2025.
- Tenant Retention: Monitor the renewal status of leases expiring in June 2025 and January 2026, which represent a potential loss of over $1 million in annual revenue.
- Related Party Leases: Review the terms and financial impact of the three operating leases with Weinstein Enterprises, Inc.
- Operating Margins: Assess the sustainability of the recent profit improvement given the rising trend in real estate taxes and insurance expenses.
- Liquidity Coverage: Confirm that current cash reserves ($2.3 million) and operating cash flow are sufficient to cover the anticipated $1.2 million in capital expenditures and debt service without additional financing.