Business Context and Reporting Period
Company: J. W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended July 31, 1998
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 asset and liability data is available:
- Total Real Estate Investment (Gross): $49,120,806 as of July 31, 1998.
- Accumulated Depreciation: $21,097,162 as of July 31, 1998.
- Net Carrying Value of Real Estate: Approximately $28,023,644 (Gross less Accumulated Depreciation).
- Encumbrances (Mortgages): $8,641,833 total on specific properties (Brooklyn, Jamaica, Fishkill, Jowein, Circleville).
- Marketable Securities Valuation Allowance: $423,879 (Allowance for net unrealized losses).
- Deferred Income Tax Asset Valuation Allowance: $24,991.
- Market Capitalization (Non-Affiliates): Approximately $6,670,620 as of September 25, 1998.
- Shares Outstanding: 2,135,780 as of September 25, 1998.
Material Changes and Property Status
The filing details the status of eight primary properties. Key occupancy and lease data for the fiscal year ended July 31, 1998, includes:
- Brooklyn (Fulton/Bond): 28.77% occupancy rate. One major tenant occupies 26.11% of rentable space.
- Brooklyn (Jowein Building): 65.19% occupancy rate. Approximately 110,000 sq. ft. available for lease. One NYC agency tenant occupies 31.19% of space.
- Jamaica, NY: 62.34% occupancy rate. Approximately 83,000 sq. ft. available for lease. Major tenants include a department store (27.50%) and a toy store (15.95%).
- Fishkill, NY: 12.28% occupancy rate. Approximately 186,000 sq. ft. available for lease.
- Levittown, NY: 100% occupancy rate (Game room/Fast food).
- Massapequa, NY: 100% occupancy rate (Sub-leased to gas station and bank).
- Circleville, OH: 100% occupancy rate (Warehouse/Distribution).
Capital Improvements: $1,024,563 in improvements were added to the real estate portfolio during the fiscal year.
Outlook, Risks, and Contingencies
- 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.
- Lease Expirations: Significant lease expirations are noted, including the Brooklyn Fulton Street property (leases expiring 2001-2013) and the Jowein Building (lease expiring 2010).
- Management Commentary: The filing incorporates the full Management's Discussion and Analysis (MD&A) and financial statements by reference; no specific forward-looking guidance or outlook text is present in the provided excerpt.
- Unusual Items: The Company maintains a significant allowance for net unrealized losses on marketable securities ($423,879), indicating potential volatility in its investment portfolio.
Investor Verification Checklist
- Revenue and Profitability: Verify total rental revenue, net income, and operating margins in the incorporated Annual Report to Shareholders (pages 2, 6, and 17-19), as these figures are not in the text.
- Liquidity Position: Review the Consolidated Statements of Cash Flows (incorporated by reference) to assess cash flow from operations and liquidity status.
- Vacancy Trends: Investigate the high vacancy rates at the Fishkill (87.72% vacant) and Jamaica (37.66% vacant) properties and management's strategy to fill this space.
- Debt Covenants: Confirm the terms of the $8.6 million in encumbrances and any upcoming debt maturities.
- Legal Exposure: Review the specific nature of the "various lawsuits and claims" mentioned in Item 3 to assess potential future liabilities.