J.W. Mays(MAYS) - 2021 Q3 - Quarterly Report

Financial Performance - For the three months ended April 30, 2021, the company reported a net loss of $(41,921), or $(0.02) per share, compared to a net loss of $(585,023), or $(0.29) per share for the same period in 2020 [95]. - For the nine months ended April 30, 2021, the company reported a net loss of $(511,452), or $(0.25) per share, compared to a net loss of $(513,760), or $(0.25) per share for the same period in 2020 [100]. Revenue - Revenues for the three months ended April 30, 2021, increased to $5,161,888 from $5,128,574 in the comparable 2020 period, primarily due to rental income from two new tenants [96]. - Revenues for the nine months ended April 30, 2021, decreased to $15,043,749 from $15,203,549 in the comparable 2020 period, primarily due to loss of rental income from four tenants [101]. Operating Expenses - Real estate operating expenses for the three months ended April 30, 2021, increased to $3,714,427 from $3,430,001 in the comparable 2020 period, mainly due to increases in real estate taxes and rent expense [97]. - Real estate operating expenses for the nine months ended April 30, 2021, increased to $10,882,590 from $10,247,347 in the comparable 2020 period [101]. Bad Debt and Investment Income - The company experienced bad debt expense of $209,000 from August 2020 to April 2021, reflecting the ongoing impact of COVID-19 [105]. - Investment income exceeded interest expense by $196,721 for the nine months ended April 30, 2021, compared to a situation where interest expense exceeded investment income by $177,086 in the comparable 2020 period [104]. Capital Expenditures - The company had expenditures for renovations totaling $351,810 for a second lobby at its Fishkill, New York building, completed in October 2020 [114]. - The company leased 47,000 square feet to a community college at its Fishkill, New York building for a term of fifteen years, with renovations costing $3,405,347 [106]. Debt and Financial Instruments - The company reported fixed-rate debt of $7,941,325 as of April 30, 2021 [122]. - The company does not use derivative financial instruments, mitigating exposure to market risk related to interest rate changes [122]. - The company relies on fixed-rate debt to finance its capital requirements, which provides stability in financing costs [122]. - The company’s financial strategies are designed to minimize exposure to market risks associated with interest rates [122]. Forward-Looking Statements - Forward-looking statements may involve risks and uncertainties that could cause actual results to differ materially from projections [119]. - The company undertakes no obligation to publicly update forward-looking statements based on new information or future events [121]. - Various factors, not limited to those identified, could impact the accuracy of forward-looking statements [120]. - The company acknowledges that many risk factors are difficult to predict and generally beyond its control [120]. - The company emphasizes the importance of reviewing additional disclosures in quarterly and annual reports for a comprehensive understanding of its financial condition [121]. Management Discussion - The management's discussion includes expectations about revenues, liquidity, and expenses, highlighting growth potential [119].