T.J.T., Inc. (the Company), (Pink Sheets: AXLE) – T.J.T., Inc., a major supplier of axles, tires, and set-up supplies to the manufactured housing industry, announced a net loss of $1,149,000, or $.25 per diluted share, for fiscal year 2012. Higher margins offset by lower sales volumes along with increases in SG&A contributed to the net loss. The Company incurred a net loss of $340,000, or $.08 per diluted share, for the fourth quarter.
Net sales decreased 57 percent to $821,000 in the final quarter of 2012 as compared to the same quarter in 2011. Net sales declined 34 percent to $4,004,000 during the twelve months ended September 30, 2012 compared to 2011. Net sales of axles and tires decreased 73 percent and 44 percent in the three and twelve month periods ending September 30, 2012 compared to the same periods in 2011, respectively. Prior to its closing in February 2011, the Washington facility contributed sales of $299,000. The Colorado facility contributed sales of $97,000 of unprocessed materials in the three month period and $761,000 total sales in the twelve month period of 2011. Lower axle and tire net sales in 2012 periods were a result of lower sales volumes partially offset by increased selling prices. Net sales of accessories decreased 31 percent in the fourth quarter of 2012 compared to the same 2011 quarter, and declined 21 percent during the twelve months of 2012 as compared to 2011.
Gross margin increased to 32 percent during the fourth quarter of 2012 compared to 27 percent in the same quarter of 2011. The Company’s gross margin for the twelve month period in 2012 increased to 30 percent compared to 22 percent in 2011.
Consolidated selling, general and administrative (SG&A) expense decreased 10 percent in the final quarter of 2012 compared to the same quarter in 2011. SG&A for 2012 increased 7 percent, or $162,000, compared to the same twelve month period in 2011. SG&A declined in the fourth quarter as a result of decreased headcount. The SG&A increase in the twelve month period was driven by temporary increases in headcount, mainly the addition of full time Corporate Executive Officers, as well as the start-up costs associated with the Company’s new North Dakota facility.