J.W. Mays(US:MAYS)2021-03-04 16:43Financial Performance - For the three months ended January 31, 2021, the company reported a net loss of $(54,107), or $(0.02) per share, compared to a net loss of $(57,281), or $(0.02) per share, for the same period in 2020[89] - For the six months ended January 31, 2021, the company reported a net loss of $(469,531), or $(0.23) per share, compared to net income of $71,263, or $0.04 per share, for the same period in 2020[93] - Revenues for the six months decreased to $9,881,861 from $10,074,975, primarily due to the loss of rental income from four tenants[94] Revenue and Expenses - Revenues for the three months increased to $5,046,867 from $5,039,060 in the comparable 2020 period, primarily due to rental income from two new tenants[90] - Real estate operating expenses for the three months increased to $3,585,546 from $3,568,752, mainly due to increases in real estate taxes and rent expense[90] - Real estate operating expenses for the six months increased to $7,168,163 from $6,817,346, driven by increases in real estate taxes and rent expense[94] Investment and Debt - Investment income exceeded interest expense by $22,406 for the six months ended January 31, 2021, compared to $149,667 in the comparable 2020 period[97] - The Company had fixed-rate debt amounting to $8,953,091 as of January 31, 2021[113] - Fixed-rate debt financing is utilized to meet capital requirements, reducing market risk exposure[113] Leasing Activities - The company leased 47,000 square feet to a community college in July 2019, with renovation costs of $3,405,347, and the tenant commenced rent payments in September 2020[99] - In November 2020, the company leased 23,000 square feet to an office tenant at its Jowein building, with renovation costs estimated at $625,000[101] Risk Factors and Forward-Looking Statements - Forward-looking statements regarding revenues, liquidity, and expenses involve risks and uncertainties that could lead to actual results differing materially[110] - The Company undertakes no obligation to publicly update forward-looking statements based on new information or future events[112] - Various factors could impact the realization of assumptions underlying forward-looking statements, leading to potential discrepancies in projected results[111] - The Company is subject to risks that are generally beyond its control, affecting its business conditions and results[111] - The Company advises stakeholders to consider identified risk areas when evaluating forward-looking statements[111] - Management's discussion includes expectations about continued growth and operational performance[110] - The Company emphasizes the importance of reviewing additional disclosures in quarterly and annual reports for updated information[112] Bad Debt Expense - The company experienced a bad debt expense of $74,000 from August 2020 to January 2021, reflecting the ongoing impact of COVID-19[98] Financial Instruments - The Company does not use derivative financial instruments, mitigating exposure to market risk related to interest rate changes[113]