**J.W. MAYS, INC.**

**Annual Report2007**Year Ended July 31, 2007

J.W. MAYS, INC.

**Contents**

 

 

 

 

 
  
**Page No.**
 
 

 

Summary of Selected Financial Data
 
 
 
      2
  
 

The Company
 
 
 
      2
  
 

Message to Shareholders
 
 
 
      3
  
 

Consolidated Balance Sheets
 
 
 
      4-5
  
 

Consolidated Statements of Income and Retained      Earnings
 
 
 
      6
  
 

Consolidated Statements of Comprehensive Income
 
 
 
      6
  
 

Consolidated Statements of Cash Flows
 
 
 
      7
  
 

Notes to Consolidated Financial Statements
 
 
 
      8-17
  
 

Report of Management
 
 
 
      18
  
 

Report of Independent Registered Public      Accounting Firm
 
 
 
      18
  
 

Five Year Summary of Consolidated Operations
 
 
 
      19
  
 

Management’s Discussion and Analysis of Financial      Condition and Results of Operations
 
 
 
      20-23
  
 

Controls and Procedures
 
 
 
      23
  
 

Quarterly Financial Information (Unaudited)
 
 
 
      23
  
 

Common Stock and Dividend Information
 
 
 
      24
  
 

Officers and Directors
 
 
 
      25
  
 

**Executive Offices**9 Bond Street, Brooklyn, N.Y. 11201-5805

**Transfer Agent and Registrar**American Stock Transfer & Trust Company59 Maiden LaneNew York, New York 10038-4502

**Special Counsel**Holland & Knight LLP195 BroadwayNew York, N.Y. 10007-3189

**Independent Registered Public Accounting Firm**D’Arcangelo & Co., LLP3000 Westchester AvenuePurchase, N.Y. 10577-2538

**Annual Meeting**The Annual Meeting of Shareholders will beheld on Tuesday, November 20, 2007, at10:00 A.M., New York time, at J.W. MAYS, INC.,9 Bond Street, Brooklyn, New York.

J.W. MAYS, INC.

**Summary of Selected Financial Data**(dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005
 
      2004
 
      2003

 

Rental Income
 
 

      $

 

       13,810
  
 

      $

 

       13,470
  
 

      $

 

       12,879
  
 

      $

 

       14,025
  
 

      $

 

       13,120
 
Rental Income—Affiliated Company
 
      —
 
      —
 
      —
 
      —
 
 
 
      70
 
Recovery of Real Estate Taxes
 
 
 
      39
  
 
 
      196
  
      —
 
      —
 
      —

Gain (Loss) on Disposition of Fixed Assets
 
 
 
      4,309
  
      —
 
 
 
      4
  
 
 
      (4

       )

 
 
      —

 

Total Revenues
 
 
 
      18,158
  
 
 
      13,666
  
 
 
      12,883
  
 
 
      14,021
  
 
 
      13,190
 
 

Net Income
 
 
 
      2,056
  
 
 
      1,433
  
 
 
      348
  
 
 
      1,135
  
 
 
      1,147
 
 

Real Estate-Net
 
 
 
      44,779
  
 
 
      45,586
  
 
 
      44,370
  
 
 
      39,907
  
 
 
      33,171
 
 

Total Assets
 
 
 
      60,162
  
 
 
      57,290
  
 
 
      57,177
  
 
 
      51,809
  
 
 
      48,346
 
 

Long-Term Debt:

 

 

 

 

 

 

 

 

 

 

Mortgages and Term Loan Payable
 
 
 
      11,554
  
 
 
      10,697
  
 
 
      12,476
  
 
 
      7,830
  
 
 
      5,261
 
Note Payable
 
 
 
      1,000
  
 
 
      1,000
  
 
 
      1,000
  
      —
 
      —

Other
 
 
 
      1,078
  
 
 
      1,031
  
 
 
      925
  
 
 
      641
  
 
 
      569
 
 

 

 

 

 

 

 

 

 

 

 

Total
 
 
 
      13,632
  
 
 
      12,728
  
 
 
      14,401
  
 
 
      8,471
  
 
 
      5,830
 
 

Shareholders’ Equity
 
 
 
      39,697
  
 
 
      37,639
  
 
 
      37,339
  
 
 
      36,996
  
 
 
      35,705
 
 

Net Income Per Common Share
 
 

      $

 

       1.02
  
 

      $

 

       .71
  
 

      $

 

       .17
  
 

      $

 

       .56
  
 

      $

 

       .57
 
 

Cash Dividends Declared Per Share
 
      —
 
      —
 
      —
 
      —
 
      —

 

Average common shares outstanding for fiscal 2007, 2,015,780; 2006, 2,015,780; 2005, 2,015,780; 2004, 2,015,780; 2003, 2,026,855.

**The Company**

J.W. Mays, Inc. was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927.

The Company operates a number of commercial real estate properties located in Brooklyn and Jamaica in New York City, in Levittown and Massapequa, Long Island, New York, in Fishkill, Dutchess  County, New York and in Circleville, Ohio. The major portion of these properties is owned and the balance is leased. A substantial percentage of these properties are leased to tenants while the  remainder is available for lease.

More comprehensive information concerning the Company appears in its Form 10-K Annual Report for the fiscal year ended July 31, 2007.

2

J.W. MAYS, INC.

**To Our Shareholders:**

The financial position of our Company continued to be positive during the fiscal year ended July 31, 2007 with profits earned in fiscal 2007.

In fiscal 2007, our revenues were $18,158,702 compared to $13,666,177 in the 2006 fiscal year. Net income for fiscal 2007 was $2,055,939, or $1.02 per share. This compares to net income of  $1,433,382, or $.71 per share for fiscal 2006.

During fiscal 2007, the Company leased an additional 116,578 square feet to five tenants at the Company’s properties. Two of the lease agreements were for retail use at the Company’s Jamaica,  New York building. One tenant leased 47,100 square feet and the other tenant leased 28,335 square feet. These tenants replaced the tenants who vacated the premises in February 2006 and June  2006, respectively. Rent commenced in November 2006 for the tenant that leased 28,335 square feet and commenced in May 2007 for the tenant that leased 47,100 square feet. The rental income from  these lease agreements will more than offset the rental income lost from the previous tenants. Two other lease agreements were for 15,900 square feet and 10,000 square feet and the tenants will  occupy the office space at the Company’s Jowein building in Brooklyn, New York. Rent is anticipated to commence in December 2007 for the tenant that leased 15,900 square feet and rent commenced  in December 2006 for the tenant that leased 10,000 square feet.

The fifth tenant which entered into a lease agreement is a restaurant at the Company’s Levittown, New York premises. The restaurant will construct a new building and expects to open in fiscal  2008.

In July 2007, the Company sold a small building in Brooklyn, New York for $4,700,000, but will continue to lease the premises until April 30, 2010.

The increased rentals from the additional tenants and the Company’s sale of the building should adequately cover the Company’s planned operating and capital requirements.

We are continuing to actively pursue government agencies, educational institutions and prospective corporate tenants which may be seeking office or retail space in our properties.

I believe our Company is well-positioned to continue its growth, and I want to thank the personnel of Mays and our Board colleagues for their continuing commitment and support.

Lloyd J. ShulmanChairman, President and Chief Executive Officer

October 5, 2007

3

J.W. MAYS, INC.

**Consolidated Balance Sheets**

July 31, 2007 and 2006**Assets**

 

 

 

 

 

 
 
**2007**
 
      2006

 

Property and Equipment-at cost (Notes 1 and 3):

 

 

 

 

Buildings and improvements
 
 

      $

 

       60,896,956
  
 

      $

 

       60,601,064
 
Improvements to leased property
 
 
 
      9,089,969
  
 
 
      9,158,009
 
Fixtures and equipment
 
 
 
      726,966
  
 
 
      721,099
 
Land
 
 
 
      6,037,134
  
 
 
      6,146,554
 
Other
 
 
 
      227,747
  
 
 
      257,472
 
Construction in progress
 
 
 
      544,636
  
 
 
      59,846
 
 

 

 

 

 

 
 
 
 
      77,523,408
  
 
 
      76,944,044
 
Less accumulated depreciation and amortization
 
 
 
      32,553,041
  
 
 
      31,149,936
 
 

 

 

 

 

Property and equipment-net
 
 
 
      44,970,367
  
 
 
      45,794,108
 
 

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents (Notes 9 and 10)
 
 
 
      5,965,350
  
 
 
      2,335,328
 
Marketable securities (Notes 1, 2 and 10)
 
 
 
      47,418
  
 
 
      45,942
 
Receivables (Notes 1 and 6)
 
 
 
      126,253
  
 
 
      86,199
 
Deferred income taxes (Notes 1 and 4)
 
 
 
      129,000
  
 
 
      131,000
 
Security deposits
 
 
 
      16,903
  
 
 
      8,297
 
Prepaid expenses
 
 
 
      1,703,539
  
 
 
      1,722,222
 
 

 

 

 

 

Total current assets
 
 
 
      7,988,463
  
 
 
      4,328,988
 
 

 

 

 

 

Other Assets:

 

 

 

 

Deferred charges (Notes 1 and 11)
 
 
 
      3,410,592
  
 
 
      2,761,585
 
Less accumulated amortization (Notes 1 and 11)
 
 
 
      1,219,123
  
 
 
      1,301,110
 
 

 

 

 

 

Net
 
 
 
      2,191,469
  
 
 
      1,460,475
 
Receivables
 
 
 
      4,667
  
 
 
      6,267
 
Security deposits
 
 
 
      1,385,606
  
 
 
      1,337,900
 
Unbilled receivables (Note 1)
 
 
 
      3,461,147
  
 
 
      4,204,567
 
Marketable securities (Notes 1, 2 and 10)
 
 
 
      160,500
  
 
 
      158,000
 
 

 

 

 

 

Total other assets
 
 
 
      7,203,389
  
 
 
      7,167,209
 
 

 

 

 

 

TOTAL ASSETS
 
 

      $

 

       60,162,219
  
 

      $

 

       57,290,305
 
 

 

 

 

 

See Notes to Consolidated Financial Statements.

4

**Liabilities and Shareholders’ Equity**

 

 

 

 

 

 
 
**2007**
 
      2006

 

Long-Term Debt:

 

 

 

 

Mortgages and term loan payable (Notes 3 and 10)
 
 

      $

 

       11,553,510
  
 

      $

 

       10,696,864
 
Note payable—related party (Notes 10 and 13)
 
 
 
      1,000,000
  
 
 
      1,000,000
 
Security deposits payable (Note 10)
 
 
 
      1,078,006
  
 
 
      1,030,800
 
 

 

 

 

 

Total long-term debt
 
 
 
      13,631,516
  
 
 
      12,727,664
 
 

 

 

 

 

Deferred Income Taxes (Notes 1 and 4)
 
 
 
      2,250,000
  
 
 
      2,445,000
 
 

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable
 
 
 
      89,621
  
 
 
      61,908
 
Payroll and other accrued liabilities (Note 7)
 
 
 
      2,147,708
  
 
 
      1,269,578
 
Income taxes payable
 
 
 
      1,456,558
  
 
 
      794,314
 
Other taxes payable
 
 
 
      7,909
  
 
 
      5,645
 
Current portion of mortgages and term loan payable (Notes 3 and 10)
 
 
 
      865,158
  
 
 
      2,338,492
 
Current portion of security deposits payable (Note 10)
 
 
 
      16,903
  
 
 
      8,297
 
 

 

 

 

 

Total current liabilities
 
 
 
      4,583,857
  
 
 
      4,478,234
 
 

 

 

 

 

Total liabilities
 
 
 
      20,465,373
  
 
 
      19,650,898
 
 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

Common stock, par value $1 each share (shares-5,000,000 authorized; 2,178,297 issued) (Note 12)
 
 
 
      2,178,297
  
 
 
      2,178,297
 
Additional paid in capital
 
 
 
      3,346,245
  
 
 
      3,346,245
 
Unrealized gain on available-for-sale securities—net of deferred taxes of $17,000 at July 31, 2007 and $16,000 at July 31, 2006 (Notes 1, 2 and 4)
 
 
 
      33,248
  
 
 
      31,748
 
Retained earnings
 
 
 
      35,426,908
  
 
 
      33,370,969
 
 

 

 

 

 
 
 
 
      40,984,698
  
 
 
      38,927,259
 
Less common stock held in treasury, at cost-162,517 shares at July 31, 2007 and July 31, 2006 (Note 12)
 
 
 
      1,287,852
  
 
 
      1,287,852
 
 

 

 

 

 

Total shareholders’ equity
 
 
 
      39,696,846
  
 
 
      37,639,407
 
 

 

 

 

 

Commitments (Notes 5 and 6) and Contingencies (Note 14)

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

      $

 

       60,162,219
  
 

      $

 

       57,290,305
 
 

 

 

 

 

See Notes to Consolidated Financial Statements.

5

J.W. MAYS, INC.**Consolidated Statements of Income and Retained Earnings**

 

 

 

 

 

 

 

 

 

 
 
      Years Ended July 31,
 
**2007**
 
      2006
 
      2005

 

 

 

Revenues

 

 

 

 

 

 
 
 

Rental income (Notes 1 and 6)
 
 

      $

 

       13,809,879
  
 

      $

 

       13,470,572
  
 

      $

 

       12,879,226
  
 

Recovery of real estate taxes
 
 
 
      39,483
  
 
 
      195,605
  
      —
 
 

Gain on disposition of fixed assets
 
 
 
      4,309,340
  
      —
 
 
 
      3,739
  
 

Total revenues
 
 
 
      18,158,702
  
 
 
      13,666,177
  
 
 
      12,882,965
  
 

 

 

 

 

 

 

 
 
 

Expenses

 

 

 

 

 

 
 
 

Real estate operating expenses (Note 5)
 
 
 
      8,587,081
  
 
 
      7,855,318
  
 
 
      7,321,272
  
 

Administrative and general expenses
 
 
 
      3,255,094
  
 
 
      3,011,080
  
 
 
      2,764,210
  
 

Depreciation and amortization (Note 1)
 
 
 
      1,582,153
  
 
 
      1,544,419
  
 
 
      1,464,883
  
 

Total expenses
 
 
 
      13,424,328
  
 
 
      12,410,817
  
 
 
      11,550,365
  
 

 

 

 

 

 

 

 
 
 

Income from operations before investment income, interest expense, other expenses and income taxes
 
 
 
      4,734,374
  
 
 
      1,255,360
  
 
 
      1,332,600
  
 

Investment income, interest expense and other expenses:

 

 

 

 

 

 
 
 

Investment income (Notes 1 and 2)
 
 
 
      84,094
  
 
 
      2,107,616
  
 
 
      84,307
  
 

Interest expense (Notes 3 and 9)
 
 
 
      (997,529

       )

 
 
 
 
      (970,594

       )

 
 
 
 
      (725,539

       )

 
 
 

 

 

 

 

 

 

 
 
 
 
 
 
      (913,435

       )

 
 
 
 
      1,137,022
  
 
 
      (641,232

       )

 
 
 

 

 

 

 

 

 

 
 
 

Income before income taxes
 
 
 
      3,820,939
  
 
 
      2,392,382
  
 
 
      691,368
  
 

Income taxes provided (Notes 1 and 4)
 
 
 
      1,765,000
  
 
 
      959,000
  
 
 
      343,000
  
 

Net income
 
 
 
      2,055,939
  
 
 
      1,433,382
  
 
 
      348,368
  
 

Retained earnings, beginning of year
 
 
 
      33,370,969
  
 
 
      31,937,587
  
 
 
      31,589,219
  
 

Retained earnings, end of year
 
 

      $

 

       35,426,908
  
 

      $

 

       33,370,969
  
 

      $

 

       31,937,587
  
 

 

 

 

 

 

 

 
 
 

Income per common share (Note 1)
 
 

      $

 

       1.02
  
 

      $

 

       .71
  
 

      $

 

       .17
  
 

Dividends per share
 
      —
 
      —
 
      —
 
 

Average common shares outstanding
 
 
 
      2,015,780
  
 
 
      2,015,780
  
 
 
      2,015,780
  
 

 

 

 

 

 

 

 
 
 

See Notes to Consolidated Financial Statements.

**Consolidated Statements of Comprehensive Income**

 

 

 

 

 

 

 

 

 

 
 
      Years Ended July 31,
 
**2007**
 
      2006
 
      2005

 

 

 

Net income
 
 

      $

 

   2,055,939
  
 

      $

 

   1,433,382
  
 

      $

 

       348,368
  
 

Other comprehensive income, net of tax

 

 

 

 

 

 
 
 

Unrealized gain (loss) on available-for-sale securities, net of taxes (benefit) of $1,000, ($584,000) and ($3,000) for the fiscal years 2007, 2006      and 2005, respectively
 
 
 
      1,500
  
 
 
      878,040
  
 
 
      (6,298

       )

 
 
 

Reclassification adjustment
 
      —
 
 
 
      (2,010,556

       )

 
 
      —
 
 

Net change in comprehensive income
 
 
 
      1,500
  
 
 
      (1,132,516

       )

 
 
 
 
      (6,298

       )

 
 
 

Comprehensive income
 
 

      $

 

       2,057,439
  
 

      $

 

       300,866
  
 

      $

 

       342,070
  
 

 

 

 

 

 

 

 
 
 

See Notes to Consolidated Financial Statements.

6

J.W. MAYS, INC.**Consolidated Statements of Cash Flows**

 

 

 

 

 

 

 

 

 

 
 
      Years Ended July 31,
 
**2007**
 
      2006
 
      2005

 

 

 

Cash Flows From Operating Activities

 

 

 

 

 

 
 
 

Net Income
 
 

      $

 

       2,055,939
  
 

      $

 

       1,433,382
  
 

      $

 

       348,368
  
 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 
 
 

Deferred income taxes
 
 
 
      (194,000

       )

 
 
 
 
      (149,000

       )

 
 
 
 
      (46,000

       )

 
 
 

Realized (gain) on marketable securities
 
      —
 
 
 
      (2,010,556

       )

 
 
      —
 
 

(Gain) on disposition of fixed assets
 
 
 
      (4,309,340

       )

 
 
      —
 
 
 
      (3,739

       )

 
 
 

Depreciation and amortization
 
 
 
      1,582,153
  
 
 
      1,544,419
  
 
 
      1,464,883
  
 

Amortization of deferred expenses
 
 
 
      449,701
  
 
 
      474,691
  
 
 
      310,695
  
 

Other assets—deferred expenses
 
 
 
      (1,180,695

       )

 
 
 
 
      (292,887

       )

 
 
 
 
      (903,885

       )

 
 
 

                         —unbilled receivables
 
 
 
      743,420
  
 
 
      218,417
  
 
 
      (106,318

       )

 
 
 

                         —receivables
 
 
 
      1,600
  
 
 
      (6,267

       )

 
 
      —
 
 

Changes in:

 

 

 

 

 

 
 
 

Receivables
 
 
 
      (40,054

       )

 
 
 
 
      54,993
  
 
 
      40,215
  
 

Prepaid expenses
 
 
 
      18,683
  
 
 
      (170,108

       )

 
 
 
 
      (19,951

       )

 
 
 

Income taxes refundable
 
      —
 
 
 
      234,616
  
 
 
      (107,705

       )

 
 
 

Accounts payable
 
 
 
      27,713
  
 
 
      (3,631

       )

 
 
 
 
      (22,042

       )

 
 
 

Payroll and other accrued liabilities
 
 
 
      878,130
  
 
 
      135,660
  
 
 
      197,870
  
 

Income taxes payable
 
 
 
      662,244
  
 
 
      794,314
  
      —
 
 

Other taxes payable
 
 
 
      2,264
  
 
 
      457
  
 
 
      424
  
 

Net cash provided by operating activities
 
 
 
      697,758
  
 
 
      2,258,500
  
 
 
      1,152,815
  
 

 

 

 

 

 

 

 
 
 

Cash Flows From Investing Activities

 

 

 

 

 

 
 
 

Acquisition of property and equipment
 
 
 
      (901,294

       )

 
 
 
 
      (2,701,860

       )

 
 
 
 
      (5,951,312

       )

 
 
 

Security deposits
 
 
 
      (56,312

       )

 
 
 
 
      (46,083

       )

 
 
 
 
      (162,813

       )

 
 
 

Marketable securities:

 

 

 

 

 

 
 
 

Receipts from sales or maturities
 
      —
 
 
 
      2,710,554
  
      —
 
 

Payments for purchases
 
 
 
      (1,476

       )

 
 
 
 
      (274

       )

 
 
 
 
      (273

       )

 
 
 

Proceeds from sale of fixed assets..
 
 
 
      4,452,222
  
      —
 
 
 
      7,478
  
 

Net cash provided (used) by investing activities
 
 
 
      3,493,140
  
 
 
      (37,663

       )

 
 
 
 
      (6,106,920

       )

 
 
 

 

 

 

 

 

 

 
 
 

Cash Flows From Financing Activities

 

 

 

 

 

 
 
 

Borrowings—security broker
 
      —
 
 
 
      567,422
  
 
 
      981,062
  
 

Payments—security broker
 
      —
 
 
 
      (567,422

       )

 
 
 
 
      (2,415,087

       )

 
 
 

Increase—security deposits
 
 
 
      55,812
  
 
 
      47,758
  
 
 
      234,012
  
 

Borrowings—mortgage and other debt
 
 
 
      315,706
  
 
 
      559,009
  
 
 
      6,720,000
  
 

Payments—mortgage and other debt
 
 
 
      (932,394

       )

 
 
 
 
      (1,015,173

       )

 
 
 
 
      (646,274

       )

 
 
 

Net cash provided (used) by financing activities
 
 
 
      (560,876

       )

 
 
 
 
      (408,406

       )

 
 
 
 
      4,873,713
  
 

Net increase (decrease) in cash and cash equivalents
 
 
 
      3,630,022
  
 
 
      1,812,431
  
 
 
      (80,392

       )

 
 
 

Cash and cash equivalents at beginning of year
 
 
 
      2,335,328
  
 
 
      522,897
  
 
 
      603,289
  
 

Cash and cash equivalents at end of year
 
 

      $

 

       5,965,350
  
 

      $

 

       2,335,328
  
 

      $

 

       522,897
  
 

 

 

 

 

 

 

 
 
 

See Notes to Consolidated Financial Statements.

7

J.W. MAYS, INC.**Notes to Consolidated Financial Statements**

**1. Summary of Significant Accounting Policies:**

CONSOLIDATION: The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries, which are wholly-owned. Material intercompany items  have been eliminated in consolidation.

ACCOUNTING RECORDS AND USE OF ESTIMATES: The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America  (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates that affect the reported consolidated statements of income and  retained earnings, comprehensive income and the consolidated balance sheets and related disclosures. Actual results could differ from those estimates. The rent expense accrued to a related party is  considered a significant estimate and may vary materially from the amount recorded in the financial statements (see note 5).

RENTAL INCOME: All of the real estate owned by the Company is held for leasing to tenants except for a small portion used for Company offices. Rent is recognized from tenants under executed  leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables represent the excess of scheduled rental income recognized  on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. Contingent rental income is recorded when earned and is not based on tenant revenue.  Based upon its periodic assessment of the quality of the receivables, management, using its historical knowledge of the tenants and industry experience, determines whether a reserve or write-off is  required.

MARKETABLE SECURITIES: The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains  and losses included in income. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity. Held-to-maturity  securities are carried at amortized cost. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews  marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any  securities as trading during the three years ended July 31, 2007.

PROPERTY AND EQUIPMENT: Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of  improvements to leased property is calculated over the shorter of the life of the lease or the estimated useful life of the improvements. Lives used to determine depreciation and amortization are  generally as follows:

 

 
 
Buildings and improvements
  
    18-40 years
 
Improvements to leased property
  
    3-40 years
 
Fixtures and equipment
  
    7-12 years
 
Other
  
    3-5 years
 
Maintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are  capitalized. The cost of assets sold or retired and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss  is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life.

The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31,  2007 and 2006, there were no impairments of its property and equipment.

COMPREHENSIVE INCOME: Statement of Financial Accounting Standards (“SFAS”) No. 130, “Reporting Comprehensive Income”, establishes standards for the reporting of comprehensive income  and its components. It requires all items that are required to be recognized as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as  other income statement information.

8

****

Comprehensive income is defined to include all changes in equity except those resulting from investments by and distributions to shareholders.

DEFERRED CHARGES: Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging  from 1 to 21 years, using the straight-line method. The Company has no non-amortizable deferred charges.

INCOME TAXES: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred tax  assets result principally from the recording of certain accruals and reserves which currently are not deductible for tax purposes. Deferred tax liabilities result principally from temporary differences in the  recognition of gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation.

INCOME PER SHARE OF COMMON STOCK: Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding  during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 in fiscal years 2007, 2006 and 2005.

**2. Marketable Securities:**

As of July 31, 2007 and 2006, the Company’s marketable securities were classified as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
**Cost**
 
**GrossUnrealizedGains**
 
**GrossUnrealizedLosses**
 
**FairValue**
 
      Cost
 
      GrossUnrealizedGains
 
      GrossUnrealizedLosses
 
      FairValue

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity:Certificate of deposit
 
 

      $

 

       47,418
  
 

      $

 

 —  
  
 

      $

 

      —
  
 

      $

 

       47,418
  
 

      $

 

       45,942
  
 

      $

 

 —  
  
 

      $

 

      —
  
 

      $

 

       45,942
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:Equity securities
 
 

      $

 

       110,252
  
 

      $

 

       50,248
  
 

      $

 

      —
  
 

      $

 

       160,500
  
 

      $

 

       110,252
  
 

      $

 

       47,748
  
 

      $

 

      —
  
 

      $

 

       158,000
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income for the years ended July 31, 2007, 2006 and 2005 consists of the following:

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005

Interest income
 
 

      $

 

       26,294
  
 

      $

 

       28,037
  
 

      $

 

       9,446
 
Dividend income
 
 
 
      57,800
  
 
 
      69,023
  
 
 
      74,861
 
Gain on sale of securities
 
      —
 
 
 
      2,010,556
  
      —

 

 

 

 

 

 

 

Total
 
 

      $

 

       84,094
  
 

      $

 

       2,107,616
  
 

      $

 

       84,307
 
 

 

 

 

 

 

 

9

****

**3. Long-Term Debt—Mortgages and Term Loan:**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
   
      CurrentAnnualInterestRate
 
      FinalPaymentDate
 
**July 31, 2007**
 
      July 31, 2006
 
**DueWithinOne Year**
 
**DueAfterOne Year**
 
      DueWithinOne Year
 
      DueAfterOne Year

Mortgages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamaica, New York property
 
 
 
      (a

       )

 
 
 
 
      6%
  
 
 
      4/01/12
  
 

      $

 

       58,365
  
 

      $

 

       1,283,137
  
 

      $

 

       1,533,333
  
 

      $

 

 —  
 
Jamaica, New York property
 
 
 
      (b

       )

 
 
 
 
      6.81%
  
 
 
      10/01/11
  
 
 
      112,037
  
 
 
      2,501,111
  
 
 
      190,899
  
 
 
      2,548,553
 
Jowein building, Brooklyn, NY
 
 
 
      (c

       )

 
 
 
 
      9 %
  
 
 
      4/01/09
  
 
 
      58,612
  
 
 
      1,103,520
  
 
 
      53,621
  
 
 
      1,162,131
 
Fishkill, New York property
 
 
 
      (d,e

       )

 
 
 
 
      Variable
  
 
 
      2/18/08
  
 
 
      17,928
  
 
 
      1,816,798
  
      —
 
 
 
      1,834,726
 
Bond St. building, Brooklyn, NY
 
 
 
      (e

       )

 
 
 
 
      Variable
  
 
 
      2/18/08
  
 
 
      36,102
  
 
 
      3,658,613
  
      —
 
 
 
      3,379,009
 
Term loan payable to bank
 
 
 
      (f

       )

 
 
 
 
      6.50%
  
 
 
      5/01/10
  
 
 
      342,114
  
 
 
      690,331
  
 
 
      320,639
  
 
 
      1,032,445
 
Jowein building, Brooklyn, NY
 
 
 
      (g

       )

 
 
 
 
      Variable
  
 
 
      8/01/10
  
 
 
      240,000
  
 
 
      500,000
  
 
 
      240,000
  
 
 
      740,000
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 
 
 

      $

 

       865,158
  
 

      $

 

       11,553,510
  
 

      $

 

       2,338,492
  
 

      $

 

       10,696,864
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) The Company, on September 11, 1996, closed a loan with a bank in the amount of $4,000,000. The loan is secured by a first mortgage lien covering the entire leasehold interest of the Company,  as tenant, in a certain ground lease and building in the Jamaica, New York property. In March, 2007, the Company extended the loan for five years with an option for an additional five-year period. The  interest rate for the initial five years is 6.00% per annum. Interest and amortization of principal will be made in constant monthly amounts based on a fifteen year (15) payout period. The outstanding  balance of the loan totaling $1,036,602 will become due and payable on April 1, 2012.

(b) The Company, on December 13, 2000, closed a loan with a bank in the amount of $3,500,000. The loan is secured by a second position leasehold mortgage covering the entire leasehold  interest of the Company, as tenant, in a certain ground lease and building in the Jamaica, New York property. The outstanding balance of the loan, totaling $2,739,452 became due and payable on  October 1, 2006. The Company exercised its option to extend the loan for an additional five (5) years to October 1, 2011. The interest rate for the extended period is 6.81% per annum. At the end of the  five year period, there will be a balance due on the loan of $2,077,680.

As additional collateral security, the Company conditionally assigned to the bank all leases and rents on the premises, or portions thereof, whether now existing or hereafter consummated. The Company  has an option to prepay principal, in whole or in part, plus interest accrued thereon, at any time during the term, without premium or penalty. Other provisions of the loan agreement provide certain  restrictions on the incurrence of indebtedness on the Jamaica property and the sale or transfer of the Company’s ground lease interest in the premises.

(c) The Company, on May 7, 2004, closed a loan with an affiliated corporation owned by members, including certain directors of the Company, of the family of the late Joe Weinstein, former  Chairman of the Board of Directors, in the amount of $1,350,000. The term of the loan is for a period of five (5) years at an interest rate of 9.00% per annum. Interest and amortization of principal are paid  quarterly based on a fifteen (15) year level amortization period. The constant quarterly payments of interest and principal are $40,316. The outstanding balance of the loan, totaling $1,056,007, will  become due and payable on April 1, 2009.

(d) On June 2, 1999, the existing first mortgage loan balance on the Fishkill, New York property was extended for a period of five years. Under the terms of the extension agreement, the annual  interest rate was reduced from 9% to 8.25% and the interest and principal payments were made in constant monthly amounts based upon a fifteen (15) year payout period. On August 19, 2004 the  Company extended the loan for an additional forty-two (42) months, with an option to convert the loan to a seven (7) year permanent mortgage loan. The payments for the extended period of forty-two  (42) months will be interest only on the amount owing at a floating rate per annum equal to the one-month LIBOR rate plus 2.25%, but not less than 3.40%. The payments for the seven-year permanent  mortgage loan would be on a seventeen (17) year level amortization, plus interest. The interest rate on the permanent loan would be a fixed rate equal to the Federal Home Loan Bank of New

10

York’s seven-year (7) fixed interest rate plus 2.25% per annum. (See Note 3(e)) The Company intends to convert the loan to a seven (7) year permanent mortgage loan prior to maturity.

(e) The Company, on August 19, 2004, closed a loan with a bank for a $12,000,000 multiple draw term loan. This loan finances seventy-five (75%) percent of the cost of capital improvements for an  existing lease to a tenant and capital improvements for future tenant leases at the Company’s Brooklyn, New York (Bond Street building) and Fishkill, New York properties. The loan also refinanced the  existing mortgage on the Company’s Fishkill, New York property which matured on July 1, 2004 (see Note 3(d)). The Company will have three and one-half years to draw down amounts under this loan.  The loan consists of: a) a permanent, first mortgage loan to refinance an existing first mortgage loan affecting the Fishkill Property (the “First Permanent Loan”) (see Note 3(d)), b) a permanent  subordinate mortgage loan in the amount $1,870,000 (the “Second Permanent Loan”), and c) multiple, successively subordinate loans in the amount $8,295,274 (“Subordinate Building Loans”). The loan  is structured in two phases: 1) a forty-two month loan with payments of interest only at the floating one-month LIBOR rate plus 2.25% per annum, but not less than 3.40%; and 2) after the forty-two month  period, the loan would convert to a seven-year (7) permanent mortgage loan on a seventeen (17) year level amortization, plus interest, at the option of the Company. The interest rate on the permanent  loan would be at a fixed rate equal to the Federal Home Loan Bank of New York’s seven-year (7) fixed interest rate plus 2.25% per annum at the time of conversion. As of August 19, 2004, the Company  refinanced the existing mortgage on the Company’s Fishkill, New York property, which balance was $1,834,726 and took down an additional $2,820,000 for capital improvements for two tenants at the  Company’s Bond Street building in Brooklyn, New York. On May 9, 2006 and November 16, 2006, the Company drew down additional amounts of $559,009 and $315,706, respectively, on its multiple  draw term loan to finance tenant improvements and brokerage commissions for the leasing of 13,026 square feet for office use at the Company’s Bond Street building in Brooklyn, New York. The total  amount financed for tenant improvements and brokerage commissions will be $916,670. The outstanding balance of the multiple draw term loan as of July 31, 2007 was $5,529,441, which will be used  for both the Bond Street and Fishkill properties. The interest rate at July 31, 2007 was 7.57% per annum. The Company intends to convert the loan to a seven (7) year permanent mortgage loan prior to  maturity.

(f) On February 18, 2005, the Company secured financing in the amount of $1,700,000, from a bank whose president is a director of the Company. The loan is a multiple draw loan, for a period of  five (5) years, and is self-amortizing, at an interest rate of 6.50% per annum.

(g) The Company, on July 22, 2005, closed a loan with a bank for $1,200,000. The loan was used to finance the construction costs and brokerage commissions associated with the leasing of 15,000  square feet for office use to a tenant at the Company’s Jowein building in Brooklyn, New York. The loan is secured by the assignment of lease of 15,000 square feet. The loan is for a period of five (5)  years and is self-amortizing, at a floating interest rate of prime plus 1.00% per annum. The interest rate at July 31, 2007 was 9.25% per annum.

Maturities of long-term debt-mortgages and term loan payable outstanding at July 31, 2007, are as follows: Years ending July 31, 2008 (included in current liabilities); $865,158; 2009; $2,061,396;  2010; $943,801; 2011; $426,016; 2012; $3,413,291; and thereafter, $4,709,006.

Interest paid to related parties for the three years ended July 31, 2007 was $107,239, $111,840, and $120,179, respectively.

11

****

**4. Income Taxes:**

Significant components of the Company’s deferred tax assets and liabilities as of July 31, 2007 and 2006 are a result of temporary differences related to the items described as follows:

 

 

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
**DeferredTax Assets**
 
**DeferredTax Liabilities**
 
      DeferredTax Assets
 
      DeferredTax Liabilities

Rental income received in advance
 
 

      $

 

       105,337
  
 

      $

 

 —  
  
 

      $

 

       118,833
  
 

      $

 

 —  
 
Unbilled receivables
 
      —
 
 
 
      1,176,790
  
      —
 
 
 
      1,429,553
 
Property and equipment
 
      —
 
 
 
      1,056,422
  
      —
 
 
 
      999,764
 
Unrealized gain on marketable securities
 
      —
 
 
 
      17,084
  
      —
 
 
 
      16,234
 
Other
 
 
 
      23,959
  
      —
 
 
 
      20,772
  
      —

 

 

 

 

 

 

 

 

 

 
 
 

      $

 

       129,296
  
 

      $

 

       2,250,296
  
 

      $

 

       139,605
  
 

      $

 

       2,445,551
 
 

 

 

 

 

 

 

 

 

The Company has determined, based on its history of operating earnings and expectations for the future, that it is more likely than not that future taxable income will be sufficient to fully utilize the  deferred tax assets at July 31, 2007.

Income taxes provided for the years ended July 31, 2007, 2006 and 2005 consist of the following:

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005

Current:

 

 

 

 

 

 

Federal
 
 

      $

 

       1,238,771
  
 

      $

 

       786,824
  
 

      $

 

       218,665
 
State and City
 
 
 
      720,229
  
 
 
      289,449
  
 
 
      170,335
 
Prior:

 

 

 

 

 

 

State and City
 
      —
 
 
 
      31,727
  
      —

Deferred taxes (benefit)
 
 
 
      (194,000

       )

 
 
 
 
      (149,000

       )

 
 
 
 
      (46,000

       )

 

 

 

 

 

 

 

 

Total provision
 
 

      $

 

       1,765,000
  
 

      $

 

       959,000
  
 

      $

 

       343,000
 
 

 

 

 

 

 

 

Components of the deferred tax provision for the years ended July 31, 2007, 2006 and 2005 consist of the following:

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005

Book depreciation over (under) tax depreciation
 
 

      $

 

       56,658
  
 

      $

 

       (48,657

       )

 
 
 

      $

 

       (57,105

       )

 

Reduction (increase) of rental income received in advance
 
 
 
      13,496
  
 
 
      (36,229

       )

 
 
 
 
      (31,010

       )

 

Increase (decrease) in unbilled receivables
 
 
 
      (252,763

       )

 
 
 
 
      (74,262

       )

 
 
 
 
      36,149
 
Other
 
 
 
      (11,391

       )

 
 
 
 
      10,148
  
 
 
      5,966
 
 

 

 

 

 

 

 
 
 

      $

 

       (194,000

       )

 
 
 

      $

 

       (149,000

       )

 
 
 

      $

 

       (46,000

       )

 

 

 

 

 

 

 

 

Taxes provided for the years ended July 31, 2007, 2006 and 2005 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows:

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005

Income before income taxes
 
 

      $

 

       3,820,939
  
 

      $

 

       2,392,382
  
 

      $

 

       691,368
 
Dividends received deduction
 
 
 
      (40,460

       )

 
 
 
 
      (48,316

       )

 
 
 
 
      (52,403

       )

 

Other-net
 
 
 
      (2,600

       )

 
 
 
 
      (28,923

       )

 
 
 
 
      6,962
 
 

 

 

 

 

 

 

Adjusted pre-tax income
 
 

      $

 

       3,777,879
  
 

      $

 

       2,315,143
  
 

      $

 

       645,927
 
 

 

 

 

 

 

 

Statutory rate
 
 
 
      34%
  
 
 
      34%
  
 
 
      34%
 
Income tax provision at statutory rate
 
 

      $

 

       1,282,480
  
 

      $

 

       787,150
  
 

      $

 

       219,620
 
State and City income taxes, net of federal income tax benefit
 
 
 
      482,520
  
 
 
      171,850
  
 
 
      123,380
 
 

 

 

 

 

 

 

Income tax provision
 
 

      $

 

       1,765,000
  
 

      $

 

       959,000
  
 

      $

 

       343,000
 
 

 

 

 

 

 

 

12

****

**5. Leases:**

The Company’s real estate operations encompass both owned and leased properties. The current leases on leased property, most of which have options to extend the terms, range from 1 year to  24 years. Certain of the leases provide for additional rentals under certain circumstances and obligate the Company for payments of real estate taxes and other expenses.

Rental expense for leased real property for each of the three fiscal years in the period ended July 31, 2007 was exceeded by sublease rental income, as follows:

 

 

 

 

 

 

 

 
 
**2007**
 
      2006
 
      2005

Minimum rental expense
 
 

      $

 

       1,801,414
  
 

      $

 

       1,212,338
  
 

      $

 

       1,119,336
 
Contingent rental expense
 
 
 
      1,349,508
  
 
 
      1,351,183
  
 
 
      1,339,355
 
 

 

 

 

 

 

 
 
 
 
      3,150,922
  
 
 
      2,563,521
  
 
 
      2,458,691
 
Sublease rental income
 
 
 
      6,985,512
  
 
 
      7,248,000
  
 
 
      6,947,617
 
 

 

 

 

 

 

 

Excess of sublease income over expense
 
 

      $

 

       3,834,590
  
 

      $

 

       4,684,479
  
 

      $

 

       4,488,926
 
 

 

 

 

 

 

 

Rent expense related to an affiliate principally owned by certain directors of the Company totaled $825,000 for fiscal year ended July 31, 2007, included $448,200 of rent expense accrued for a  renewal of a lease which the final amount has not yet been determined and may go to an independent arbitrator, $273,300 for fiscal year ended July 31, 2006, and $169,800 for fiscal year ended July  31, 2005. The rent expense accrued to a related party is considered a significant estimate and may vary materially from the amount recorded in the financial statements. Rent expense is recognized on  a straight-line basis over the lives of the leases.

Future minimum non-cancelable rental commitments for operating leases with initial or remaining terms of one year or more are payable as follows:

 

 

 

      Fiscal Year
 
**OperatingLeases**

2008
 
 

      $

 

       1,855,023
 
2009
 
 
 
      1,797,205
 
2010
 
 
 
      1,457,183
 
2011
 
 
 
      1,013,339
 
2012
 
 
 
      731,370
 
After 2012
 
 
 
      9,957,375
 
 

 

 

Total required*
 
 

      $

 

       16,811,495
 
 

 

 

 

      *
 
 
 
      Minimum payments have not been reduced by minimum sublease rentals of $34,666,934 under operating leases due in the future under non-cancelable leases.
13

****

**6. Rental Income:**

Rental income for each of the fiscal years 2007, 2006 and 2005 is as follows:
 
 

 

 

 

 

 

 
 
      July 31,
 
**2007**
 
      2006
 
      2005

Minimum rentals

 

 

 

 

 

 

Company owned property
 
 

      $

 

       6,319,755
  
 

      $

 

       5,634,643
  
 

      $

 

       5,376,270
 
Leased property
 
 
 
      6,103,279
  
 
 
      6,378,907
  
 
 
      6,048,649
 
 

 

 

 

 

 

 

 
 
 
 
      12,423,034
  
 
 
      12,013,550
  
 
 
      11,424,919
 
 

 

 

 

 

 

 

Contingent rentals

 

 

 

 

 

 

Company owned property
 
 
 
      504,612
  
 
 
      587,929
  
 
 
      555,339
 
Leased property
 
 
 
      882,233
  
 
 
      869,093
  
 
 
      898,968
 
 

 

 

 

 

 

 

 
 
 
 
      1,386,845
  
 
 
      1,457,022
  
 
 
      1,454,307
 
 

 

 

 

 

 

 

Total
 
 

      $

 

       13,809,879
  
 

      $

 

       13,470,572
  
 

      $

 

       12,879,226
 
 

 

 

 

 

 

 

Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows:

 

 

 

 

 

 

 

      Fiscal Year
 
**CompanyOwned Property**
 
**LeasedProperty**
 
**Total**

2008
 
 

      $

 

       6,081,776
  
 

      $

 

       7,024,313
  
 

      $

 

       13,106,089
 
2009
 
 
 
      5,654,801
  
 
 
      6,949,666
  
 
 
      12,604,467
 
2010
 
 
 
      5,186,919
  
 
 
      6,122,767
  
 
 
      11,309,686
 
2011
 
 
 
      3,909,354
  
 
 
      3,992,940
  
 
 
      7,902,294
 
2012
 
 
 
      1,415,339
  
 
 
      2,641,129
  
 
 
      4,056,468
 
After 2012
 
 
 
      5,158,603
  
 
 
      7,936,119
  
 
 
      13,094,722
 
 

 

 

 

 

 

 

Total
 
 

      $

 

       27,406,792
  
 

      $

 

       34,666,934
  
 

      $

 

       62,073,726
 
 

 

 

 

 

 

 

Rental income is recognized on a straight-line basis over the lives of the leases.

**7. Payroll and Other Accrued Liabilities:**

Payroll and other accrued liabilities for the fiscal years ended July 31, 2007 and 2006 consist of the following:

 

 

 

 

 

 
 
**2007**
 
**2006**

Payroll
 
 

      $

 

       235,964
  
 

      $

 

       160,870
 
Interest
 
 
 
      87,443
  
 
 
      90,560
 
Professional fees
 
 
 
      186,152
  
 
 
      90,789
 
Rents received in advance
 
 
 
      309,816
  
 
 
      349,508
 
Utilities
 
 
 
      72,341
  
 
 
      61,600
 
Brokers commissions
 
 
 
      705,366
  
 
 
      253,167
 
Construction costs
 
 
 
      —
  
 
 
      105,712
 
Rent expense...
 
 
 
      448,200
  
 
 
      —
 
Other
 
 
 
      102,426
  
 
 
      157,372
 
 

 

 

 

 

Total
 
 

      $

 

       2,147,708
  
 

      $

 

       1,269,578
 
 

 

 

 

 

14

****

**8. Employee’s Retirement Plan:**

The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its employees. Operations were charged $266,506, $291,306 and $287,777 as contributions to the Plan  for fiscal years 2007, 2006 and 2005, respectively.

**9. Cash Flow Information:**

For purposes of reporting cash flows, the Company considers cash equivalents to consist of short-term highly liquid investments with maturities of three months or less, which are readily convertible  into cash.

Supplemental disclosures:

 

 

 

 

 

 

 

 
 
      Years Ended July 31,
 
**2007**
 
      2006
 
      2005

Interest paid, net of capitalized interest of $19,684 (2007), $49,279 (2006) and $24,966 (2005)
 
 

      $

 

       1,015,254
  
 

      $

 

       942,537
  
 

      $

 

       700,438
 
Income taxes paid
 
 

      $

 

       1,296,928
  
 

      $

 

       93,530
  
 

      $

 

       496,705
 
**10. Financial Instruments and Credit Risk Concentrations:**

The following disclosure of estimated fair value was determined by the Company using available market information and appropriate valuation methods. Considerable judgment is necessary to  develop estimates of fair value. The estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.

The Company estimates the fair value of its financial instruments using the following methods and assumptions: (i) quoted market prices, when available, are used to estimate the fair value of  investments in marketable debt and equity securities; (ii) discounted cash flow analyses are used to estimate the fair value of long-term debt, using the Company’s estimate of current interest rates for  similar debt; and (iii) carrying amounts in the balance sheet approximate fair value for cash and cash equivalents and tenant security deposits due to their high liquidity.

 

 

 

 

 

 
 
**July 31, 2007**
 
**CarryingValue**
 
**FairValue**

Cash and cash equivalents
 
 

      $

 

       5,965,350
  
 

      $

 

       5,965,350
 
Marketable securities
 
 
 
      207,918
  
 
 
      207,918
 
Security deposits payable
 
 
 
      1,094,909
  
 
 
      1,094,909
 
Mortgages, notes and term loan payable
 
 
 
      13,418,668
  
 
 
      12,164,339
 
Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, cash and cash equivalents and receivables. Marketable securities and  cash and cash equivalents are placed with high credit quality financial institutions and instruments to minimize risk.

The Company derives rental income from forty-nine tenants, of which one tenant accounted for 15.67% and another tenant accounted for 13.39% of rental income during the year ended July 31,  2007. No other tenant accounted for more than 10% of rental income during the year ended July 31, 2007.

The Company has two irrevocable letters of credit totaling $137,500 at July 31, 2007 and July 31, 2006, provided by two tenants.

15

****

**11. Deferred Charges:**

Deferred charges for the fiscal years ended July 31, 2007 and 2006 consist of the following:

 

 

 

 

 

 

 

 

 

 
 
**July 31, 2007**
 
**July 31, 2006**
 
**Gross CarryingAmount**
 
**AccumulatedAmortization**
 
**Gross CarryingAmount**
 
**AccumulatedAmortization**

Leasing brokerage commissions
 
 

      $

 

       2,263,370
  
 

      $

 

       547,055
  
 

      $

 

       1,694,004
  
 

      $

 

       673,038
 
Professional fees for leasing
 
 
 
      403,367
  
 
 
      203,327
  
 
 
      368,510
  
 
 
      216,291
 
Financing costs
 
 
 
      728,564
  
 
 
      468,741
  
 
 
      683,780
  
 
 
      411,781
 
Other
 
 
 
      15,291
  
      —
 
 
 
      15,291
  
      —

 

 

 

 

 

 

 

 

 

Total
 
 

      $

 

       3,410,592
  
 

      $

 

       1,219,123
  
 

      $

 

       2,761,585
  
 

      $

 

       1,301,110
 
 

 

 

 

 

 

 

 

 

The aggregate amortization expense for the three years in the period ended July 31, 2007 was $449,701, $474,691, and $310,695, respectively.

The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows:

 

 

 

** Fiscal Year**

 

 

2008
 
 

      $

 

       346,734
 
2009
 
 

      $

 

       352,343
 
2010
 
 

      $

 

       337,165
 
2011
 
 

      $

 

       268,717
 
2012
 
 

      $

 

       185,752
 
**12. Capitalization:**

The Company is capitalized entirely through common stock with identical voting rights and rights to liquidation. Treasury stock is recorded at cost and consists of 162,517 shares at July 31, 2007  and at July 31, 2006.

**13. Note Payable:**

On December 15, 2004, the Company borrowed $1,000,000 from a director of the Company, who is also a greater than 10% beneficial owner of the outstanding common stock of the Company. The  term of the loan is for a period of three (3) years maturing on December 15, 2007, at an interest rate of 7.50% per annum. The loan is unsecured. The note is prepayable in whole or in part at any time  without penalty. The funds were used towards the purchase of a one-half interest in a parcel which is part of the Company’s Brooklyn, New York properties. The total purchase price was $1,500,000. The  constant quarterly payments of interest are $18,750. The interest paid for the years ended July 31, 2007 and 2006 was $75,000 and July 31, 2005 was $46,875. The Company intends to negotiate with  the director to extend this loan.

**14. Contingencies:**

There are various lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Company’s  Consolidated Financial Statements.

In response to a termination notice that the Company received concerning its tenancy in a portion of the Jowein building, Brooklyn, New York, on April 25, 2007, the Company filed a lawsuit against  its landlords in New York State Supreme Court, Kings County. In the lawsuit, the Company seeks a judgment declaring that the landlords’ termination notice was improperly issued and that the Company  is not required to correct or cure the purported defaults cited in the termination notice. In addition, the Company seeks an order temporarily,

16

****

preliminarily and permanently enjoining the landlords from taking any action to terminate the lease or otherwise interfere with the Company’s possession of the premises.

On May 16, 2007, the New York State Supreme Court granted the Company’s motion for preliminary injunctive relief and enjoined the landlords, during the pendency of this action, from taking any  action to evict the Company, terminate the Company’s lease which is scheduled to expire on April 30, 2010, and/or commencing summary action adverse to the Company’s rights or otherwise disturb  the Company’s possession of the premises. The landlords have answered the complaint denying the allegations and asserting counterclaims against the Company relating to the premises. Discovery is  ongoing. Management of the Company is unable to predict the outcome of this matter or whether the Company will be required to expend significant amounts of money in order to correct any of the  purported defaults.

17

J.W. MAYS, INC.

**Report of Management**

Management is responsible for the preparation and reliability of the financial statements and the other financial information in this Annual Report. Management has established systems of internal  control over financial reporting designed to provide reasonable assurance that the financial records used for preparing financial statements are reliable and reflect the transactions of the Company and  that established policies and procedures are carefully followed. The Company reviews, modifies and improves its system of internal controls in response to changes in operations.

The Board of Directors, acting through the Audit Committee, which is comprised solely of independent directors who are not employees of the Company, oversees the financial reporting process.  The financial statements have been prepared in accordance with accounting standards generally accepted in the United States of America and include amounts based on judgments and estimates  made by management. Actual results could differ from estimated amounts.

To ensure complete independence, D’Arcangelo & Co., LLP, the independent registered public accounting firm, has full and free access to meet with the Audit Committee, without management  representatives present, to discuss results of the audit, the adequacy of internal controls and the quality of financial reporting.

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and ShareholdersJ.W. Mays, Inc. and Subsidiaries

We have audited the accompanying consolidated balance sheets of J.W. Mays, Inc. and subsidiaries as of July 31, 2007 and 2006, and the related consolidated statements of income and retained  earnings, comprehensive income, and cash flows for each of the three years in the period ended July 31, 2007. These consolidated financial statements are the responsibility of the Company’s  management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to  obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and  disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall  financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of J.W. Mays, Inc. and subsidiaries as of July 31, 2007 and 2006,  and the results of its operations and its cash flows for each of the three years in the period ended July 31, 2007, in conformity with U.S. generally accepted accounting principles.

D’ARCANGELO & CO., LLPPurchase, New YorkOctober 5, 2007

18

J.W. MAYS, INC.

**Five Year Summary of Consolidated Operations**(dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 
 
      Years Ended July 31,
 
**2007**
 
      2006
 
      2005
 
      2004
 
      2003

 

Revenues

 

 

 

 

 

 

 

 

 

 

Rental income
 
 

      $

 

       13,810
  
 

      $

 

       13,470
  
 

      $

 

       12,879
  
 

      $

 

       14,025
  
 

      $

 

       13,120
 
Rental income-affiliated company
 
      —
 
      —
 
      —
 
      —
 
 
 
      70
 
Recovery of real estate taxes
 
 
 
      39
  
 
 
      196
  
      —
 
      —
 
      —

Gain (loss) on disposition of fixed assets
 
 
 
      4,309
  
      —
 
 
 
      4
  
 
 
      (4

       )

 
 
      —

 

 

 

 

 

 

 

 

 

 

 

Total revenues
 
 
 
      18,158
  
 
 
      13,666
  
 
 
      12,883
  
 
 
      14,021
  
 
 
      13,190
 
 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Real estate operating expenses
 
 
 
      8,587
  
 
 
      7,855
  
 
 
      7,321
  
 
 
      7,716
  
 
 
      6,915
 
Administrative and general expenses
 
 
 
      3,255
  
 
 
      3,011
  
 
 
      2,764
  
 
 
      2,771
  
 
 
      2,930
 
Bad debts (recovery)
 
      —
 
      —
 
      —
 
      —
 
 
 
      (163

       )

 

Depreciation and amortization
 
 
 
      1,582
  
 
 
      1,545
  
 
 
      1,465
  
 
 
      1,318
  
 
 
      1,201
 
 

 

 

 

 

 

 

 

 

 

 

Total expenses
 
 
 
      13,424
  
 
 
      12,411
  
 
 
      11,550
  
 
 
      11,805
  
 
 
      10,883
 
 

 

 

 

 

 

 

 

 

 

 

Income from operations before investment income, interest expense, other expenses and income taxes
 
 
 
      4,734
  
 
 
      1,255
  
 
 
      1,333
  
 
 
      2,216
  
 
 
      2,307
 
 

 

 

 

 

 

 

 

 

 

 

Investment income, interest expense and other expenses:

 

 

 

 

 

 

 

 

 

 

Loss on disposition of asset
 
      —
 
      —
 
      —
 
      —
 
 
 
      (80

       )

 

Investment income
 
 
 
      84
  
 
 
      2,108
  
 
 
      84
  
 
 
      253
  
 
 
      300
 
Interest expense
 
 
 
      (997

       )

 
 
 
 
      (971

       )

 
 
 
 
      (726

       )

 
 
 
 
      (547

       )

 
 
 
 
      (548

       )

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
      (913

       )

 
 
 
 
      1,137
  
 
 
      (642

       )

 
 
 
 
      (294

       )

 
 
 
 
      (328

       )

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes
 
 
 
      3,821
  
 
 
      2,392
  
 
 
      691
  
 
 
      1,922
  
 
 
      1,979
 
Income taxes provided
 
 
 
      1,765
  
 
 
      959
  
 
 
      343
  
 
 
      787
  
 
 
      832
 
 

 

 

 

 

 

 

 

 

 

 

Net Income
 
 

      $

 

       2,056
  
 

      $

 

       1,433
  
 

      $

 

       348
  
 

      $

 

       1,135
  
 

      $

 

       1,147
 
 

 

 

 

 

 

 

 

 

 

 

Net income per common share
 
 

      $

 

       1.02
  
 

      $

 

       .71
  
 

      $

 

       .17
  
 

      $

 

       .56
  
 

      $

 

       .57
 
 

 

 

 

 

 

 

 

 

 

 

Dividends per share
 
      —
 
      —
 
      —
 
      —
 
      —

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding
 
 
 
      2,015,780
  
 
 
      2,015,780
  
 
 
      2,015,780
  
 
 
      2,015,780
  
 
 
      2,026,855
 
 

 

 

 

 

 

 

 

 

 

 

19

J.W. MAYS, INC.**Management’s Discussion and Analysis of Financial Condition andResults of Operations**

**Fiscal 2007 Compared to Fiscal 2006**

Net income for the year ended July 31, 2007 amounted to $2,055,939, or $1.02 per share, compared to net income for the year ended July 31, 2006 of $1,433,382, or $.71 per share.

Revenues in the current year increased to $18,158,702 from $13,666,177 in the comparable 2006 fiscal year. The increase in revenue was due to the Company’s gain on the sale of a building in  Brooklyn, New York in the amount of $4,309,340 and the Company’s leasing to four additional tenants at the Company’s Brooklyn, New York and Jamaica, New York properties.

The recovery of real estate taxes in the current year in the amount of $39,483, net of legal expenses, represents prior years’ real estate taxes from one of the Company’s properties. The comparable  2006 year had a recovery of real estate taxes in the amount of $195,605, net of legal expenses.

Real estate operating expenses in the current year increased to $8,587,081 from $7,855,318 in the comparable 2006 year primarily due to increases in rental expense in the Company’s Brooklyn,  New York and Jamaica, New York properties, maintenance costs and licenses and permits, partially offset by decreases in real estate taxes, payroll costs, utility costs and leasing commission costs.

Administrative and general expenses in the current year increased to $3,255,094 from $3,011,080 in the comparable 2006 year primarily due to increases in payroll costs, bad debt expense due to  a tenant vacating the Company’s Brooklyn, New York building, and legal and professional costs, partially offset by decreases in pension costs.

Depreciation and amortization expense in the current year increased to $1,582,153 from $1,544,419 in the comparable 2006 year primarily due to depreciation on the additional improvements to the  Brooklyn, New York properties.

Interest expense in the current year exceeded investment income by $913,435 and was exceeded by investment income of $1,137,022 in the comparable 2006 year. The higher investment income  amount in the 2006 year was due to the gain on the sale of one of the Company’s marketable securities, which was caused by a merger.

**Fiscal 2006 Compared to Fiscal 2005**

Net income for the year ended July 31, 2006 amounted to $1,433,382, or $.71 per share, compared to net income for the year ended July 31, 2005 of $348,368, or $.17 per share.

Revenues in the current year increased to $13,166,177 from $12,882,965 in the comparable 2005 fiscal year. The increase in revenues was due to the Company’s leasing to three office tenants at  its Jowein building in Brooklyn, New York, the leasing to a retail tenant at its Jamaica, New York building, the recovery of real estate taxes, partially offset by two retail tenants vacating the Jamaica, New  York building and the office tenant vacating the Fishkill, New York building.

The recovery of real estate taxes in the current year in the amount of $195,605, net of legal expenses, represents prior years’ real estate taxes from two of the Company’s properties.

Real estate operating expenses in the current year increased to $7,855,318 from $7,321,272 in the comparable 2005 year primarily due to increases in rental expense, real estate taxes,  maintenance costs, utility costs, leasing commissions and licenses and permits, partially offset by decreases in insurance costs.

Administrative and general expenses in the current year increased to $3,011,080 from $2,764,210 in the comparable 2005 year primarily due to increases in payroll costs, insurance costs, legal and  professional costs, and bad debt expense due to a tenant vacating the Company’s Jamaica, New York building.

Depreciation and amortization expense in the current year increased to $1,544,419 from $1,464,883 in the comparable 2005 year primarily due to depreciation on the additional improvements to the  Brooklyn, New York and the Jamaica, New York properties and acquisitions of the three parcels in Brooklyn, New York.

20

****

Investment income exceeded interest expense and other expenses by $1,137,022 in fiscal 2006, and was exceeded by interest expense and other expenses by $641,232 in the comparable 2005  year. The investment income increase in the 2006 year was due to the gain on the sale of one of the Company’s marketable securities, which was caused by a merger, scheduled repayments of debt,  partially offset by increased interest expense on the additional loans and increases in interest rates with banks and a note payable from a director.

**Liquidity and Capital Resources:**

The Company has been operating as a real estate enterprise since the discontinuance of the retail department store segment of its operations on January 3, 1989.

Management considers current working capital and borrowing capabilities adequate to cover the Company’s planned operating and capital requirements. The Company’s cash and cash  equivalents amounted to $5,965,350 at July 31, 2007.

The Company on July 25, 2007, entered into a contract of sale and simultaneously closed on the sale of a property in Brooklyn, New York. The Company received $4,700,000 on the sale of the  premises. The Company will continue to operate the building until the lease with the tenant who occupies part of the premises expires in April 2010.

In March 2006, the Company leased an additional 7,411 square feet for office use to an existing tenant at the Company’s Bond Street building, in Brooklyn, New York. Rent commenced in October  2006.

In August and September 2006, the Company entered into three additional lease agreements. Two of the lease agreements were for retail use at the Company’s Jamaica, New York building. One  tenant leased 47,100 square feet and the other tenant leased 28,335 square feet. These tenants replaced the tenants who vacated the premises in February 2006 and June 2006, respectively. Rent  commenced in November 2006 for the tenant that leased 28,335 square feet and commenced in May 2007 for the tenant that leased 47,100 square feet. The rental income from these lease agreements  will more than offset the rental income lost from the previous tenants. The third lease agreement is for 10,000 square feet and will be used for office space at the Company’s Jowein building in Brooklyn,  New York. Rent commenced in December 2006. The cost of construction to the Company for these tenants was insignificant.

In October 2006, the Company entered into a lease agreement with a restaurant at the Company’s Levittown premises. The restaurant will construct a new building. The tenant expects to open the  restaurant in fiscal 2008. Rent commenced in September 2007. This will replace the tenant that vacated the premises in September 2004. The annual rental income from this lease agreement will more  than offset the annual rental income lost from the previous tenant.

The Company was informed by a tenant who occupies 32,890 square feet of office space in its Jamaica, New York property, that the tenant would not be exercising its option to extend its lease  agreement. The tenant vacated the premises on April 30, 2007. The Company entered into a lease agreement with a new tenant for the occupancy of the entire 32,890 square feet. As of May 1, 2007,  the new tenant was occupying the premises.

The Company was informed by a tenant who occupies 22,192 square feet of office space at its Brooklyn, New York property that the tenant would vacate the premises in July 2007. The annual loss  in rental income to the Company will be approximately $470,000. The Company is actively seeking, through brokers, tenants to occupy the vacated space.

In May 2007, the Company entered into a lease agreement with a tenant for 15,900 square feet of office space at its Jowein building in Brooklyn, New York. Rent is anticipated to commence in  December 2007.

21

****

The following table represents the increase (decrease) in square foot occupancy at the Company’s properties, due to the aforementioned lease agreements.

 

 

 

Bond Street building, Brooklyn, New York 
 
 
 
      (22,192

       )

 

Bond Street building, Brooklyn, New York 
 
 
 
      7,411
 
Jowein building, Brooklyn, New York 
 
 
 
      25,900
 
Jamaica building, Jamaica, New York 
 
 
 
      75,435
 
Levittown, New York building 
 
 
 
      15,243
 
 

 

 

Total 
 
 
 
      101,797
 
 

 

 

As part of the $12,000,000 multiple draw term loan, the bank agreed to finance the cost of two new elevators at the Company’s Bond Street building in Brooklyn, New York. The amount to be  financed will be $850,000. (See Note 3(e) to the Consolidated Financial Statements). The total cost of the elevator project is estimated to be $1,100,000 and is anticipated to be completed in fiscal 2008.

**Contractual Obligations:**

At July 31, 2007, the Company had certain contractual cash obligations, as set forth in the following tables:

 

 

 

 

 

 

 

 

 

 

 

Contractual CashObligations
 
      Payment Due by Period
 
      Total
 
      Less than 1Year
 
      1-3Years
 
      4-5Years
 
      After 5Years

Mortgages and term loan payable
 
 

      $

 

       12,418,668
  
 

      $

 

       865,158
  
 

      $

 

       3,005,197
  
 

      $

 

       3,839,307
  
 

      $

 

       4,709,006
 
Note payable
 
 
 
      1,000,000
  
      —
 
 
 
      1,000,000
  
      —
 
      —

Security deposits payable
 
 
 
      1,094,909
  
 
 
      16,903
  
 
 
      276,456
  
 
 
      382,889
  
 
 
      418,661
 
Operating leases
 
 
 
      16,811,495
  
 
 
      1,855,023
  
 
 
      3,254,388
  
 
 
      1,744,709
  
 
 
      9,957,375
 
 

 

 

 

 

 

 

 

 

 

 

Total contractual cash obligations
 
 

      $

 

       31,325,072
  
 

      $

 

       2,737,084
  
 

      $

 

       7,536,041
  
 

      $

 

       5,966,905
  
 

      $

 

       15,085,042
 
 

 

 

 

 

 

 

 

 

 

 

**Cash Flows From Operating Activities:**

*Deferred Expenses:*The Company had expenditures for brokerage commissions in the year ended July 31, 2007, in the amount of $1,056,921, relating to tenants at its Brooklyn, New York, Jamaica,  New York and Levittown, New York properties.

*Payroll and Other Accrued Liabilities:*The Company paid $615,207 for commissions incurred in order to lease space at the Company’s properties in the year ended July 31, 2007. The original  amount of the brokerage commissions was $2,366,743. As of July 31, 2007, $1,661,377 had been paid. The Company also incurred additional brokerage commissions in the amount of $1,064,500  relating to five tenants.

The Company has accrued an additional $448,200 in rent expense to its landlord, which is an affiliated Company, on its Jamaica, New York property. The final amount of rent expense has not yet  been determined and may go to an independent arbitrator.

**Cash Flows From Investing Activities:**

The Company had expenditures of $282,803 for the year ended July 31, 2007 for the renovation of 32,890 square feet for office space for a tenant at its Jamaica, New York building. The cost of the  project will be approximately $600,000 and is anticipated to be completed in October 2007.

The Company had expenditures of $245,630 for the year ended July 31, 2007 for the construction of two new elevators. The total cost of the project is approximately $1,100,000, of which $850,000  will be financed by a bank. The project is anticipated to be completed in fiscal 2008.

22

****

**Cash Flows From Financing Activities:**

*Borrowing:*The Company drew down an additional $315,706 on its multiple draw term loan, to finance tenant improvements and brokerage commissions for the leasing of 13,026 square feet for  office use at the Company’s Bond Street building in Brooklyn, New York. The total amount financed for tenant improvements and brokerage commissions is $916,670. (See Note 3(e) to the Consolidated  Financial Statements).

*Lease security:*The Company increased tenant security deposits by $99,167 due to the leasing of space to two tenants at the Company’s Brooklyn, New York and Jamaica, New York properties.

**Controls andProcedures:**

The Company’s management reviewed the Company’s internal controls and procedures and the effectiveness of these controls. As of July 31, 2007, the Company carried out an evaluation, under  the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the  Company’s disclosure controls and procedures pursuant to Rules 13a-14(c) and 15d-14(c) of the Securities Exchange Act of 1934. Based upon that evaluation, the Chief Executive Officer and Chief  Financial Officer concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company required to be included in its  periodic SEC filings.

There was no change in the Company’s internal controls over financial reporting or in other factors during the Company’s last fiscal quarter that materially affected, or are reasonably likely to  materially affect, the Company’s internal controls over financial reporting. There were no significant deficiencies or material weaknesses, and therefore there were no corrective actions taken.

Our accounting department is comprised of four persons. Due to such a limited number of persons, a complete segregation of all of the duties as to which the department is responsible is not  possible. In order to make sure that the inability to segregate all duties does not affect our timely and accurate financial reporting, we need to remain vigilant in maintaining compensating controls.  These compensating controls will continue to be monitored in order to assure us that our internal controls over financial reporting remain at a high level despite the limited number of accounting  department personnel.

**Quarterly Financial Information (Unaudited)**(dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 
 
      Three Months Ended
 
      Oct. 31, 2006
 
      Jan. 31, 2007
 
      Apr. 30, 2007
 
      July 31, 2007

Revenues
 
 

      $

 

       3,317
  
 

      $

 

       3,391
  
 

      $

 

       3,476
  
 

      $

 

       7,975
 
Revenues less expenses
 
 
 
      (169

       )

 
 
 
 
      (32

       )

 
 
 
 
      (104

       )

 
 
 
 
      4,126
 
Net income (loss)
 
 
 
      (178

       )

 
 
 
 
      (9

       )

 
 
 
 
      19
  
 
 
      2,224
 
Net income (loss) per common share
 
 

      $

 

       (.09

       )

 
 
 

      $

 

       (.00

       )

 
 
 

      $

 

       .01
  
 

      $

 

       1.10
 
 

 

 

 

 

 

 

 

 

 
 
      Three Months Ended
 
      Oct. 31, 2005
 
      Jan. 31, 2006
 
      Apr. 30, 2006
 
      July 31, 2006

Revenues
 
 

      $

 

       3,341
  
 

      $

 

       3,387
  
 

      $

 

       3,526
  
 

      $

 

       3,412
 
Revenues less expenses
 
 
 
      207
  
 
 
      (41

       )

 
 
 
 
      116
  
 
 
      2,110
 
Net income (loss)
 
 
 
      127
  
 
 
      (58

       )

 
 
 
 
      95
  
 
 
      1,269
 
Net income (loss) per common share
 
 

      $

 

       .06
  
 

      $

 

       (.03

       )

 
 
 

      $

 

       .05
  
 

      $

 

       .63
 
Income per share is computed independently for each of the quarters presented on the basis described in Note 1 to the Consolidated Financial Statements.

23

****

**Common Stock and Dividend Information**

Effective November 8, 1999, the Company’s common stock commenced trading on The Nasdaq Capital Market tier of The Nasdaq Stock Market under the Symbol: “Mays”. Such shares were  previously traded on The Nasdaq National Market. Effective August 1, 2006, NASDAQ became operational as an exchange in NASDAQ-Listed Securities. It is now known as The NASDAQ Stock Market  LLC.

The following is the sales price range per share of J.W. Mays, Inc. common stock during the fiscal years ended July 31, 2007 and 2006:

 

 

 

 

 

Three Months Ended
 
      Sales Price
 
      High
 
      Low

October 31, 2006
 
 

      $

 

       23.80
  
 

      $

 

       17.54
 
January 31, 2007
 
 
 
      22.00
  
 
 
      20.51
 
April 30, 2007
 
 
 
      22.25
  
 
 
      20.86
 
July 31, 2007
 
 
 
      24.53
  
 
 
      21.76
 
 

 

 

 

 

October 31, 2005
 
 

      $

 

       17.39
  
 

      $

 

       14.75
 
January 31, 2006
 
 
 
      17.90
  
 
 
      16.15
 
April 30, 2006
 
 
 
      18.49
  
 
 
      17.53
 
July 31, 2006
 
 
 
      18.45
  
 
 
      18.00
 
The quotations were obtained for the respective periods from the National Association of Securities Dealers, Inc. There were no dividends declared in either of the two fiscal years.

On September 14, 2007, the Company had approximately 1,500 shareholders of record.

24

J.W. MAYS, INC.

**Officers**

 

 

 

      Lloyd J. Shulman
 
Chairman of the Board, Chief Executive Officer and President and Chief Operating Officer

      Mark S. Greenblatt
 
Vice President and Treasurer

      Ward N. Lyke, Jr.
 
Vice President and Assistant Treasurer

      George Silva
 
Vice President-Operations

      Salvatore Cappuzzo
 
Secretary
   
**Board of Directors**
 
 

      Mark S. Greenblatt3,5
 
Vice President and Treasurer, J.W. Mays, Inc.

      Lance D. Myers1,3,4,5,6
 
Partner, Holland & Knight LLP

      Dean L. Ryder2,3,4,6
 
President, Putnam County National Bank

      Jack Schwartz1,2,3,4,6
 
Private Consultant

      Lloyd J. Shulman1,3
 
Chairman of the Board, Chief Executive Officer and President and Chief Operating Officer, J.W. Mays, Inc.

      Sylvia W. Shulman3
 
Retired

      Lewis D. Siegel2,3,4,6
 
Senior Vice President-Investments, Smith Barney Citigroup

Committee Assignments Key:

1 Member of Executive Committee

2 Member of Audit Committee

3 Member of Investment Advisory Committee

4 Member of Executive Compensation Committee

5 Member of Disclosure Committee (Mr. Lyke is also a member)

6 Member of Nominating Committee

**Form 10-K Annual Report**

Copies of the Company’s Form 10-K Annual Reportto the Securities and Exchange Commissionfor the fiscal year ended July 31, 2007will be furnished without charge toshareholders upon written requestto: Secretary, J.W. Mays, Inc.,9 Bond Street, Brooklyn, New York 11201-5805.

25