Business Context and Reporting Period
Company: J. W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Period Ended: July 31, 2000
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 29 people, with 21% 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 asset and liability data is available:
- Total Real Estate Investment (Gross): $52,330,458 (as of July 31, 2000).
- Total Accumulated Depreciation: $22,991,895 (as of July 31, 2000).
- Net Carrying Value of Real Estate: Approximately $29.3 million (calculated as Gross Investment less Accumulated Depreciation).
- Encumbrances (Mortgages): Total of $7,022,879 on specific properties (Brooklyn, Jamaica, Fishkill, Jowein, and Circleville).
- Market Value of Voting Stock (Non-Affiliates): Approximately $6,045,800 as of September 22, 2000.
- Shares Outstanding: 2,088,280 as of September 22, 2000.
Material Changes and Property Updates
- Real Estate Improvements: Capitalized improvements of $1,708,961 were added to the real estate portfolio during the fiscal year.
- Brooklyn (Bond Street): Completed a new lobby entrance in fiscal 2000. One major tenant occupies 26.11% of rentable space; lease expires April 30, 2011.
- Jamaica (169th Street): Renovated 11,200 square feet for office space (commenced Sept 1, 2000). Plans exist to improve 42,250 square feet on the third floor. Two tenants occupy over 10% of space each.
- Fishkill: Approximately 186,000 square feet remain available for lease. Only 26,000 square feet are currently leased.
- Valuation Allowances: The allowance for net unrealized gains/losses on marketable securities decreased to $95,117. The deferred income tax asset valuation allowance was reduced to $0.
Outlook, Risks, and Contingencies
- Legal Proceedings: Various lawsuits and claims are pending. Management believes the resolution will not have a material adverse effect on financial statements.
- Lease Expirations: Significant lease expirations include the Brooklyn Bond Street property (various dates through 2013, with options extending to 2073) and the Jowein Building (April 30, 2010).
- Concentration Risk: Several properties rely on single or few major tenants. For example, the Levittown and Circleville properties are 100% leased to single tenants. The Massapequa property is sub-leased to two tenants, each occupying over 10% of space.
- Management Commentary: The filing incorporates the full Management's Discussion and Analysis (MD&A) from the Annual Report to Shareholders; no specific outlook text is provided in this excerpt.
Investor Verification Checklist
- Revenue and Net Income: Verify specific revenue, net income, and cash flow figures in the "Summary of Selected Financial Data" and "Consolidated Statements of Income" (incorporated by reference, not in text).
- Occupancy Rates: Confirm current occupancy rates for the Fishkill property, which had significant vacant space (approx. 186,000 sq. ft.) as of July 31, 2000.
- Tenant Concentration: Review the specific lease terms and financial stability of major tenants occupying over 10% of rentable space in Brooklyn, Jamaica, and Massapequa.
- Debt Covenants: Examine the terms of the $7.02 million in encumbrances to understand debt service requirements and maturity dates.
- Legal Exposure: Investigate the nature of the "various lawsuits and claims" mentioned in Item 3 to assess potential future liabilities.