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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-Q



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QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF
1934



For the Three Months Ended March 31, 2004



Commission File No. 0-8488



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TWENTY SERVICES, INC.

(Exact name of Registrant as specified in its Charter)



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|                                                               |  |                         
|-------------------------------------------------------------- |  | ------------------------
|ALABAMA                                                        |  | 63-0372577              
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer ID No.)
|                                                               | 
|20 Cropwell Drive, Suite 100                                   |  | Pell City, Alabama 35128
|(Address or principal executive offices)                       |  | (City, State, Zip)      



Registrants
telephone number, including area code 205-884-7932



Former name, former address, and former fiscal year, if changed since last report.



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Indicate by check market whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements
for the past ninety (90) days.    YES  x    NO ̈



Indicate the number of shares outstanding of each of the
issuers classes of Common Stock, as of the period of this report.



|                          |  |                 
|------------------------- |  | ----------------
|Par Value $0.10 per share |  | 1,283,068 shares



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WENTY SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



|                                            |  |                |           |   |                   |   |           |  
|------------------------------------------- |  | -------------- | --------- | - | ----------------- | - | --------- | -
|                                            |  | March 31, 2004 |           |   | December 31, 2003 |  
|ASSETS                                      |  |                |           |   |                   |   |           |  
|Cash and temporary investments              |  | $              | 85,018    |   |                   | $ | 71,968    |  
|Marketable securities                       |  |                | 5,002,368 |   |                   |   | 4,417,405 |  
|Receivables, Net                            |  |                | 87,241    |   |                   |   | 92,166    |  
|                                            |  |                |           |   |                   |   |           |  
|Total assets                                |  | $              | 5,174,627 |   |                   | $ | 4,581,539 |  
|                                            |  |                |           |   |                   |   |           |  
|LIABILITIES AND STOCKHOLDERS EQUITY        |  |                |           |   |                   |   |           |  
|Liabilities:                                |  |                |           |   |                   |   |           |  
|Accounts payable and accrued expenses       |  | $              | 33,624    |   |                   | $ | 34,477    |  
|Deferred tax liability                      |  |                | 513,748   |   |                   |   | 329,748   |  
|                                            |  |                |           |   |                   |   |           |  
|                                            |  |                | 547,372   |   |                   |   | 364,225   |  
|                                            |  |                |           |   |                   |   |           |  
|Stockholders equity:                       |  |                |           |   |                   |   |           |  
|Preferred stock, Cumulative $0.10 par value |  |                | 50,511    |   |                   |   | 50,511    |  
|Common stock, par value $0.10               |  |                | 128,307   |   |                   |   | 128,307   |  
|Additional paid-in capital                  |  |                | 1,716,074 |   |                   |   | 1,716,074 |  
|Retained earnings                           |  |                | 1,442,304 |   |                   |   | 1,430,061 |  
|Accumulated other comprehensive income      |  |                | 1,549,221 |   |                   |   | 1,151,221 |  
|Less investment in Twenty Services Holding  |  |                | (60,000   | ) |                   |   | (60,000   | )
|Treasury Stock                              |  |                | (199,162  | ) |                   |   | (198,860  | )
|                                            |  |                |           |   |                   |   |           |  
|Net stockholders equity                    |  |                | 4,627,255 |   |                   |   | 4,217,314 |  
|                                            |  |                |           |   |                   |   |           |  
|Total liabilities and stockholders equity  |  | $              | 5,174,627 |   |                   | $ | 4,581,539 |  
|                                            |  |                |           |   |                   |   |           |  



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TWENTY SERVICES, INC.



STATEMENT OF OPERATIONS



(Unaudited)



|                                                     |  |                              |           |      |   |          
|---------------------------------------------------- |  | ---------------------------- | --------- | ---- | - | ---------
|                                                     |  | Three Months Ended March 31,
|                                                     |  | 2004                         |           | 2003
|Revenues                                             |  | $                            | 38,872    |      | $ | 46,393   
|Expenses:                                            |  |                              |           |      |   |          
|General and administrative                           |  |                              | 26,667    |      |   | 33,305   
|                                                     |  |                              |           |      |   |          
|Gain from operations and net income                  |  | $                            | 12,205    |      | $ | 13,088   
|                                                     |  |                              |           |      |   |          
|Weighted average number of common shares outstanding |  |                              | 1,283,068 |      |   | 1,283,068
|                                                     |  |                              |           |      |   |          
|Earnings per share *                                 |  | $                            | .00       |      | $ | .00      
|                                                     |  |                              |           |      |   |          

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|* | After giving effect on a pro-rata basis to anticipated preferred dividends of $0.07 per share per annum on 505,110 shares.
|- | --------------------------------------------------------------------------------------------------------------------------



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TWENTY SERVICES, INC.



CONDENSED STATEMENT OF CASH FLOWS



(Unaudited)



|                                                    |  |                             |         |   |      |   |          |  
|--------------------------------------------------- |  | --------------------------- | ------- | - | ---- | - | -------- | -
|                                                    |  | Three Months EndedMarch 31, |        
|                                                    |  | 2004                        |         |   | 2003 |  
|Cash flows from operating activities:               |  |                             |         |   |      |   |          |  
|Interest and dividends received                     |  | $                           | 38,872  |   |      | $ | 46,393   |  
|Cash paid employees and supplier                    |  |                             | (27,520 | ) |      |   | (45,960  | )
|                                                    |  |                             |         |   |      |   |          |  
|Net cash provided by operating activities           |  |                             | 11,352  |   |      |   | 433      |  
|                                                    |  |                             |         |   |      |   |          |  
|Cash flows from investing activities:               |  |                             |         |   |      |   |          |  
|Purchase of securities                              |  |                             | (2,925  | ) |      |   | (128,646 | )
|Principal collected on loans                        |  |                             | 4,925   |   |      |   | 2,669    |  
|Purchase of Treasury Stock                          |  |                             | (302    | ) |      |   | (952     | )
|                                                    |  |                             |         |   |      |   |          |  
|Net cash provided (used) by investing activities    |  |                             | 1,698   |   |      |   | (126,929 | )
|                                                    |  |                            
|Net increase (decrease) in cash                     |  |                             | 13,050  |   |      |   | (126,496 | )
|Cash and temporary investments, beginning of period |  |                             | 71,968  |   |      |   | 279,880  |  
|                                                    |  |                             |         |   |      |   |          |  
|Cash and temporary investments end of period        |  | $                           | 85,018  |   |      | $ | 153,384  |  
|                                                    |  |                             |         |   |      |   |          |  



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MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES



During the three months ended March 31, 2004, the
Registrants liquidity remained stable. The Company has no notes payable nor long term debt and does not anticipate the need for borrowing in the near future. The Registrant has sufficient cash and temporary cash investments to meet its short
term liquidity needs. Should long term liquidity needs exceed cash and temporary cash investments, then the Registrant would dispose of marketable securities as it deems appropriate. Current trends and known demands and commitments do not create a
need for liquidity in excess of the Companys current liabilities to generate liquidity.



The Company anticipates that its operating activities and its investing activities will generate net cash flows and that its financing activities will continue to use cash flows.



RESULTS OF OPERATIONS



The Registrant reported a net income of $12,205 for the three months ended
March 31, 2004 as compared to the net income of $13,088 for the corresponding 2003 period.



REVENUES



Revenues for the three months ended March 31, 2004 of $38,872 was comparable to $46,393 for the corresponding 2003 period. The decrease was due primarily
to a decrease in interest income.



EXPENSES



General and administrative expenses
decreased from $33,305 in 2003 to $26,667 for the corresponding 2004 period.



The above financial statements include all the adjustments which, in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting
principles. All adjustments are of a normal recurring nature.



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PART II



OTHER INFORMATION



|        |  |                                                     |  |     
|------- |  | --------------------------------------------------- |  | ----
|Item 1. |  | Legal Proceedings                                   |  | None
|        |  |                                                    
|Item 2. |  | Changes in Securities                               |  | None
|        |  |                                                    
|Item 3. |  | Defaults Upon Senior Securities                     |  | None
|        |  |                                                    
|Item 4. |  | Submission of Matters to a Vote of Security Holders |  | None



Item
5. Other Information:



On February 27,2004, the Board of
Directors of the Registrant declared a cash dividend of SEVEN CENTS ($0.07) per share, payable March 31, 2004 to holders of record at February 27, 2004 of the Series A-1980, Series A-1981, Series A-1982 and Series A-1985 Preferred Stock, which
dividend relates to the year ended December 31, 2003. On March 31, 2004, the dividend so declared was paid in the amount of approximately $32,500.



Item 6. EXHIBITS and Reports on Form 8-K



EXHIBITS



| | 32.1 | CERTIFICATION OF EXECUTIVE VICE-PRESIDENT
| | ---- | -----------------------------------------



| | 32.2 | CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER
| | ---- | ------------------------------------------------------------------



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TWENTY SERVICES, INC.



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.



|             |  |                                
|------------ |  | -------------------------------
|May 17, 2004 |  | /s/ David J. Noble             
|Date         |  | David J. Noble                 
|             |  | Chairman/Director              
|             |  | And Principal Executive Officer
|             | 
|May 17, 2004 |  | /s/ Jack C. Bridges            
|Date         |  | Jack C. Bridges                
|             |  | Executive Vice-President       



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