Business Context and Reporting Period
Company: J.W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Period Ended: July 31, 2011
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 focuses on leasing real estate. The Company employs 30 people, with approximately 23% covered by a union contract expiring in 2013.
Key Financial Metrics
Note: Specific revenue, profit, and cash flow figures for the fiscal year are incorporated by reference from the Annual Report to Shareholders and are not explicitly detailed in the provided text.
- Real Estate Portfolio: Total gross carrying cost of real estate and improvements is $76,643,907 with accumulated depreciation of $32,051,431.
- Debt: Fixed-rate debt totaled $10,096,526 as of July 31, 2011. The Company does not use derivative financial instruments.
- Market Capitalization: Aggregate market value of voting stock held by non-affiliates was approximately $7,917,752 as of January 31, 2011.
- Shares Outstanding: 2,015,780 shares as of September 9, 2011.
- Dividends: No dividends were declared in fiscal years 2011 or 2010.
- Stock Price Range (FY 2011): High of $20.05 and Low of $11.73.
Material Changes and Property Status
- Occupancy Trends:
- Brooklyn (Bond Street): Occupancy rate was 69.68% as of July 31, 2011. The Company is renovating 18,218 square feet for office space.
- Brooklyn (Jowein Building): Occupancy rate was 76.02% as of July 31, 2011.
- Jamaica, NY: Occupancy rate was 81.14% as of July 31, 2011, with approximately 21,000 square feet available for lease.
- Fishkill, NY: Approximately 203,000 square feet are available for lease; occupancy data for the period was not explicitly listed in the text.
- Circleville, OH: Occupancy rate was 66.11% as of July 31, 2011, with approximately 70,000 square feet available for lease.
- Lease Extensions: Several leases at the Bond Street property previously expiring in 2011 were extended for 10 and 20 years.
- Investment in Real Estate: The balance increased from $74,918,445 in 2010 to $76,643,907 in 2011, driven by $1,725,462 in improvements.
Outlook, Risks, and Contingencies
- Forward-Looking Statements: Management notes that future results may differ due to economic conditions, competitive environments, and regulatory changes.
- Legal Proceedings: Various lawsuits are pending, but management believes they will not have a material adverse effect. The Company is required to remove a foot bridge over Bond Street by June 2012, with an anticipated cost of $309,423.
- Contingent Liability: If the Company sells or demolishes the 25 Elm Place property, it may be liable to create a condominium unit for the loading dock; costs are currently undetermined.
- Risk Factors: Key risks include concentration of ownership (controlling shareholder group), economic downturns affecting tenants, environmental liabilities in older properties, and the availability of financing for property fit-ups.
- Internal Controls: Management concluded that disclosure controls and procedures were effective as of July 31, 2011. The Company is exempt from the auditor attestation requirement for internal controls under Section 404(b) of the Sarbanes-Oxley Act.
Investor Verification Checklist
- Verify the specific revenue and net income figures in the "Annual Report to Shareholders" incorporated by reference, as they are not explicitly stated in this 10-K text.
- Confirm the status of the 203,000 square feet of vacant space in Fishkill, NY, and the timeline for leasing.
- Review the details of the controlling shareholder group and related-party transactions to assess potential conflicts of interest.
- Monitor the progress of the foot bridge removal project and any potential cost overruns beyond the estimated $309,423.
- Assess the impact of the 66.11% occupancy rate in Circleville, OH, on future cash flows given the 70,000 square feet of available space.