TWENTY SERVICES INC - FORM 10-K/A - September 14, 2012

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Index to Financial Statements

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-K/A

 

 

(Amendment No. 1)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-8488

For the fiscal year ended December 31, 2011

 

 

TWENTY SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

ALABAMA   63-0372577

(State or other jurisdiction of

incorporation or organization)

  

(IRS Employer

Identification No.)

20 Cropwell Drive - Suite 100

Pell City, Alabama

   35128
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code (205) 884-7932

Securities registered pursuant to Section 12(g) of the Act:

 

Title of each class:

  

COMMON STOCK

  7% Cumulative Preferred Stock *

 

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  ¨    NO  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    YES  ¨    NO  x

Indicate by check mark 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 twelve (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  ¨

Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [Not yet applicable to registrant.]    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨ (Do not check if a smaller reporting company)    Smaller reporting company   x

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act:    YES  ¨    NO  x

As of December 31, 2011, the Registrant had issued and outstanding 1,283,068 shares of common stock, par value of $0.10 per share, and as of December 31, 2011, the aggregate market value of the voting stock of the Registrant held by non-affiliates of the Registrant, based upon the book value of such shares as of such date, was approximately $3,699,595.

Documents incorporated by reference: NONE

 

* Includes 7% Cumulative Series A-1980 Preferred Stock, 7% Cumulative Series A-1981 Preferred Stock, 7% Cumulative Series A-1982 Preferred Stock, and 7% Cumulative Series A-1985 Preferred Stock.

 

 

 

Index to Financial Statements

EXPLANATORY NOTE

We are amending our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the Securities and Exchange Commission on March 13, 2012. See Note 14 (Reclassification of Fair Value Measurement Disclosures) in regards to reclassification of disclosures in previous financial statements. This information was inadvertently omitted from Form 10-K for the fiscal year ended December 31, 2011.

Index to Financial Statements
1. BUSINESS.

(a) General Development of Business. Since its inception in 1955, Twenty Services, Inc. (hereinafter sometimes referred to as the “Registrant” or “Company”), has been engaged principally in the general finance business, including the purchase and sale of real estate. In October 1980, the stockholders of the Registrant authorized the Board of Directors to redeploy the Registrant’s assets and reinvest the proceeds derived from such redeployment in a business other than the general finance business. During 1982 and 1983, the Company and an affiliate of Twenty Services Holding, Inc. (“Holding”), the owner of approximately 56% of the Registrant’s outstanding common stock, acquired an interest in the common stock of The Statesman Group, Inc., an insurance holding company based in Des Moines, Iowa (“Statesman”). The investment in Statesman was sold in 1994. The Registrant invested the proceeds in equities and fixed income securities that offer attractive returns commensurate with the risk assumed. In 1995, the Company acquired an interest in the common stock of American Equity Investment Life Holding Company, an insurance holding company based in Des Moines, Iowa (“American Equity”). As of the date of this Annual Report on Form 10-K the Registrant owns 237,000 shares of common stock of American Equity Investment Life Holding Company.

Depending upon the financial condition of the Registrant, the opportunities available to the Registrant and other matters, the Registrant may acquire majority interests in, and thereafter direct the operations of, other corporations or business entities engaged in one or more active businesses. The Registrant will continue to engage in certain aspects of the general finance business, including extending credit to certain persons and collecting its loan receivables. As of the date of this annual report on Form 10-K, the Registrant does not believe that the composition of its investments and the nature of its business activities render it subject to the Investment Act of 1940, and the Board of Directors of the Registrant intend that any future acquisitions by and/or business activities of the Registrant will be structured in a manner so that the Registrant will not become subject to the Investment Company Act of 1940.

(b) Financial Information Regarding Industry Segments.

The Registrant is not required to supply information respecting industry segments. However, for certain information respecting the general finance and other business activities of the Registrant, see the Financial Statements of Twenty Services, Inc., including the notes thereto, which are included elsewhere herein.

(c) Narrative Description of Business.

General Finance Business. As stated above, the Registrant historically has engaged in the general finance business which has consisted of (i) extending credit to finance various real estate projects, including

Index to Financial Statements

the purchase of single-family dwellings and commercial real estate, and to finance home improvements (the “Real Estate Loans”), and (ii) extending credit for business and miscellaneous purposes (the “Business and Miscellaneous Loans”).

Loan Portfolio. The following tabulation sets forth the outstanding balances of the Registrant’s loan portfolio as of December 31 of each year indicated below (including, if appropriate, unearned interest), classified according to the types of loans comprising the Registrant’s loan portfolio:

 

Type of Loans

    2011      2010      2009      2008  

Real Estate

    $   —         $ —         $ —         $ —     

Business and Miscellaneous

    $ .00       $ 28,520       $ 27,673         26,882   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total:

    $ .00       $ 28,520       $ 27,673       $ 26,882   
  

 

 

     

 

 

     

 

 

     

 

 

  

Of the Registrant’s aggregate loan portfolio as of December 31, 2011 100% was secured.

Interest Income. The following tabulation sets forth certain information respecting the Registrant’s net interest income for each of the years indicated:

 

     2011      2010      2009  

Interest Income

    $ 70,935       $ 66,052       $ 71,733   

Net Interest Income

    $ 70,935       $ 66,052       $ 71,733   

The Registrant utilizes the interest (accrual) method in recognizing income attributable to interest charges. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 90 days or more and resumed when the loan becomes contractually current.

Other Business Activities. As described above, the Registrant’s stockholders have authorized the Registrant to redeploy the Registrant’s assets by conversion of such assets into cash and the reinvestment of the proceeds thereof in other business entities. The Registrant intends to invest in equities and fixed income securities that offer attractive returns commensurate with the risk assumed. In December 1996, the Company acquired a 19.75% interest in a newly formed insurance holding company, American Equity Investment Life Holding Company. The Chairman of the Des Moines, Iowa based company is also the Chairman of the Board of the Registrant. American Equity acquired a block of individual and group insurance policies in 1995 and 1996. In 1996, 1997, 1998 and 1999 American Equity obtained additional equity financing from other investors which reduced the Company’s interest therein to 1.64%.

Competition. With respect to the general finance business, the Registrant is in direct competition with banks and other finance companies located within and without the State of Alabama. Many of these firms are substantially larger than the Registrant, have more capital available for lending activities, pursue more actively new loan activity and enjoy a distinct competitive advantage over the Registrant.

In 2003 American Equity made an initial public offering which decreased the Company’s interest therein to less than one percent. However, the offering had the effect of increasing the value of the Company’s investment by approximately $750,000.

Employees. During 2011 and 2010 the Registrant employed two (2) persons to fill two (2) positions; one (l) of such positions was an executive position, and one (l) of such positions was a clerical/administrative position.

At December 31, 2011, the Registrant employed one (1) person who performs both executive and administrative duties. The Registrant considers its relationship with its employees to be good.

On February 7, 2011, Jack C. Bridges, Executive Vice-President of the Registrant, passed away. In a called meeting by the Board of Directors of the Registrant on March 25, 2011, the directors elected Shirley B. Whitaker as interim Vice-President of the Company.

Index to Financial Statements

Certain Government Regulations. The Registrant is subject to federal and state regulations relating to consumer credit financing and is subject to periodic examinations by officials of the State of Alabama charged with the responsibility of enforcing such regulations. The last examination of the Registrant by officials of the State of Alabama occurred on June 15, 2011. As a result of such examination, the Registrant was found to be in compliance with the regulations described above, and the Board of Directors of the Registrant believes that the Registrant presently is in compliance with such regulations. No material monetary claim has been made by any borrower against the Registrant respecting failure to comply with such regulations.

The Registrant is not subject in any material way to regulations relating to the discharge of materials into the environment.

Other Matters. The Registrant’s business is not seasonal.

No material portion of the contracts or subcontracts of the Registrant is subject to renegotiation by the United States Government.

The business of the Registrant is not dependent upon any raw materials, and as of the date of this annual report on Form 10-K, the Registrant does not own any material patent, trademark, license, franchise or concession. During the last two (2) years, the Registrant has not spent any money on research and development activities.

Due to the nature of its business, the Registrant does not have backlogs of orders believed to be firm. In addition, except as described in Management’s Discussion and Analysis of Financial Condition and Results of Operations, the Registrant does not follow any specified practice with respect to working capital.

The Registrant is not dependent upon a single customer or related customers or a very few customers, the loss of any one (l) or more of which would have a materially adverse effect upon its business.

Financial Information Regarding Foreign and Domestic Operations and Export Sales.

All of the Registrant’s business activities have been conducted within the southeastern portion of the United States.

 

2. PROPERTIES.

The Registrant maintains its principal executive office in an office facility located in Pell City, Alabama for which it pays aggregate annual rentals of $7,200. The Registrant believes its office facilities are adequate for its present needs.

 

3. LEGAL PROCEEDINGS.

As of the date of this annual report on Form 10-K, the Registrant is not a party of any legal proceedings.

 

4. (RESERVED).

PART II

 

5. MARKET FOR THE REGISTRANT’S COMMON STOCK AND RELATED SECURITY HOLDER MATTERS.

(a) Market Information. No broker or dealer makes an active market in the shares of Common Stock or the Series A-Preferred Stock of the Registrant. Thus, there is no established trading market for the Common Stock or the Series A-Preferred Stock of the Registrant.

Index to Financial Statements

(b) Holder of Records. As of December 31, 2011 there were 1,614 holders of record of the outstanding Common Stock of the Registrant, and 937 holders of record of the outstanding Series A-Preferred Stock of the Registrant.

(c) Dividends. During the past two (2) years, no dividends have been paid respecting the shares of Common Stock of the Registrant. Under Alabama law, cash dividends may be paid only out of earned surplus (or retained earnings) of the Registrant.

As of December 31, 2011, the Registrant has issued and outstanding 505,110 shares of Series A-Preferred Stock, consisting of four (4) series of such Preferred Stock issued in 1980, 1981, 1982 and 1985. The holders of the Series A-Preferred Stock are entitled to cumulative dividends at the rate of $.07 per share per annum before any dividend may be declared or paid respecting the shares of Common Stock of the Registrant. During 2011 and 2010, the Registrant paid a dividend of $.07 per share respecting the outstanding Series A-Preferred Stock.

The Registrant intends, to the extent that future earnings and its capital surplus permit, to pay dividends respecting the shares of Series A-Preferred Stock. The Registrant believes it is unlikely that dividends will be paid in the future respecting the shares of Common Stock of the Company, although such payment will depend upon the future earnings and business prospects of the Registrant.

SELECTED FINANCIAL DATA

The following tabulation sets forth certain financial information respecting the Registrant.

 

     2011     2010     2009     2008     2007  

Revenues

    $ 112,550      $ 104,913      $ 123,631      $ 145,549      $ 138,285   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Income (Loss)

    $ 15,787      $ 10,486      $ (47,490 )    $ (58,595 )    $ 9,435   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (Loss) per Common Share:

           

Net Income (Loss)

    $ (.01 )    $ (.01 )    $ (.07 )    $ (.07 )    $ (.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

    $ 4,057,826      $ 4,558,969      $ 3,393,252      $ 3,265,101      $ 3,853,546   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Dividends Declared:

           

Common Stock

    $ 0      $ 0      $ 0      $ 0      $ 0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Preferred Stock

    $ 35,357 1    $ 35,357 2    $ 35,357 3    $ 35,357 4    $ 35,357 5 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 35,357      $ 35,357      $ 35,357      $ 35,357      $ 35,357   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Book Value Per Common Share Outstanding

    $ 2.88      $ 2.53      $ 2.66      $ 2.67      $ 2.90   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1 Reflects dividend respecting Preferred Stock declared on February 28, 2011.
2 Reflects dividend respecting Preferred Stock declared on February 28, 2010.
3 Reflects dividend respecting Preferred Stock declared on February 26, 2009.
4 Reflects dividend respecting Preferred Stock declared on February 27, 2008.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Liquidity and Capital Resources. During 2011 the Registrant’s liquidity remained virtually unchanged. 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 abilities to generate liquidity.

Index to Financial Statements

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

Results of Operations. The Registrant reported a net income of $15,787 in 2011 as compared to a net income of $10,486 in 2010. General and administrative expenses increased from $117,006 in 2010 to $126,737 in 2011.

Impact of Inflation. Inflation has an impact upon the Registrant’s financial position. Inflationary pressures generally increase the cost of borrowed funds to the Registrant, rendering it less economic for the Registrant to borrow money for re-lending purposes.

 

8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements of the Registrant are set forth at page F-3 through F-15 hereof and are incorporated herein by reference.

 

9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

There has been no disagreement between the Registrant and its independent certified public accountants respecting any matter of disclosure, during the past twenty-four (24) months.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision, and with the participation of our management, including Twenty’s Chief Executive Officer and Vice-President, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Subsequent to the filing on March 31, 2008 of the 2007 10-K, we identified that we had inadvertently omitted from the 2007 10-K management’s report on the Company’s internal control over financial reporting. This omission was remedied by the filing on August 25, 2008 of amendment No. 1 to the 2007 10-K. Twenty’s Chief Executive Officer and Chief Financial Officer reconsidered the effectiveness of the Company’s disclosure controls and procedures as of December 31, 2007 (the end of its 2007 fiscal year) in light of its inadvertent omission of management’s report from the 2007 10-K. Solely as a result of this inadvertent omission of management’s report on internal control over financial reporting from the 2007 10-K, Twenty’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of December 31, 2007 were not effective at the reasonable assurance level. In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), as of the end of the period covered by this Annual Report on Form 10-K, the Company’s management evaluated, with the participation of the Company’s Chief Executive Officer and Vice-President, the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on their evaluation of these disclosure controls and procedures, the Company’s Chief Executive Officer and Vice-President have concluded that the disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the report the Company files or submits under the Exchange Act.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. With the participation of Twenty’s Chief Executive Officer and Vice-President, management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2011 based on the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal controls over financial reporting was effective as of December 31, 2011. There were no changes in our internal controls over financial reporting during the year ended December 31, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

Index to Financial Statements
10. FAIR VALUE MEASUREMENTS

SFAS No. 157 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability.

As a basis for considering market participant assumptions in fair value measurements, SFAS No. 157 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level I that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Twenty’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurement. As discussed above, SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective for the Company’s financial assets and liabilities on January 1, 2008. In February 2008, the FASB reached a conclusion to defer the implementation of the SFAS No. 157 provisions relating to non-financial assets and liabilities until January 1, 2009. The FASB also reached a conclusion to amend SFAS No. 157 to exclude SFAS No. 13 Accounting for Leases and its related interpretive accounting pronouncements. SFAS No. 157 is not expected to materially affect how the Company determines fair value. We have adopted SFAS No. 157 effective January 1, 2008 for financial assets and financial liabilities and do not expect this adoption to have a material effect on our consolidated results of operations or financial position but will enhance the level of disclosure for assets and liabilities recorded at fair value.

 

            Fair Value Measurements at Reporting Date Using  

Description

    12/31/2011      Quoted Prices in Active
Markets for Identical
Assets
(Level 1)		      Significant Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Trading securities

            —           —     

Available-for-sale securities

    $ 3,930,592       $ 2,578,394       $ 1,352,198         —     

Derivatives

            —           —     

Venture capital investments

            —           —     
  

 

 

     

 

 

        

Total

    $ 3,930,592       $ 2,578,394       $ 1,352,198      
  

 

 

     

 

 

     

 

 

     

 

11. FINANCIAL DISCLOSURE AND INTERNAL CONTROLS

Twenty Services, Inc. maintains internal controls over financial reporting, which generally include those controls relating to the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. As a small public company Twenty Services, Inc. is subject to the internal control reporting and attestation requirements under Section 13(a)-15 and 15(d)-15 of The Securities Exchange Act of 1934.

Index to Financial Statements

Twenty Services, Inc. has established processes to ensure appropriate disclosure controls and procedures are maintained. These controls and procedures as defined by the SEC are generally designed to ensure that financial information required to be disclosed in reports filed with the SEC is reported within the time periods specified in the SEC’s rules and regulations, and that such information is communicated to management, including the Chief Executive Officer (“CEO”) and Vice-President as appropriate, to allow timely decisions regarding required disclosure.

Twenty Services, Inc.’s senior management is involved in the day-to-day operations of the Company. Management’s interaction and monitoring activities evaluate recent internal and external events to determine whether all appropriate disclosures have been made in reports filed with the SEC. The Forms 10-K and 10-Q are presented to the Board of Directors for approval. Financial results and other financial information are also reviewed with the Audit Committee annually.

As required by applicable regulatory pronouncements, the CEO and Vice-President review and make various certifications regarding the accuracy of Twenty Services’ periodic public reports filed with the SEC, as well as the effectiveness of disclosure controls and procedures and internal controls over financial reporting.

Twenty Services, Inc.’s stock is not listed or traded and, therefore, not required to comply with corporate governance listing standards.

Part III

 

12. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

(a)-(e)—Identification of Directors and Executive Officers and Other Matters. The following tabulation sets forth certain information respecting the persons who are serving as the directors and executive officers of the Registrant as of December 31, 2011.

 

Names and Positions with the Registrant

    Age     

Material Occupations And Positions During The last five (5) years

David J. Noble

Chairman of the Board

      80       Director and Chairman of the Board of Directors of Twenty Services, Inc. Pell City, Alabama (finance business), since 1979. Chairman of the Board of Directors, Treasurer and Director, Twenty Services Holding, Inc. Pell City, Alabama (holding company) since 1979; Executive Chairman of the Board of Directors of American Equity Investment Life Holding Company Des Moines, Iowa since 1995.

Dr. A. J. Strickland, III

Vice-Chairman of the Board and Chairman of Audit Committee

      69       Director and Vice-Chairman of the Board of Directors of Twenty Services, Inc., Pell City, Alabama (general finance business), since 1977; Director, Twenty Services Holding, Inc., Pell City, Alabama (holding company), since 1979; Professor of Strategic Management -School of Commerce, University of Alabama, Tuscaloosa, Alabama since 1980; Director, American Equity Investment Life Holding Company, Des Moines, Iowa, since 1995.

There is no family relationship between any of the persons named above. Directors of the Registrant are elected at each annual meeting of the stockholders of the Registrant and serve until their successors have been elected and qualified. Executive officers of the Registrant are elected at a meeting of the Board of Directors immediately following each annual meeting of the stockholders of the Registrant. Mr. Noble was elected director of the Registrant in November 1979 pursuant to a resolution adopted by the Board of Directors of the Registrant stating that if Twenty Services Holding, Inc. acquired approximately 20% of the outstanding Common Stock of the Registrant, the Registrant would make available to nominees of Twenty Services, Inc. Holding, Inc. two (2) places on the Registrant’s Board of Directors.

Index to Financial Statements

(F) Involvement in Certain Legal Proceedings.

During the past ten (10) years, no officer or director of the Registrant has been involved in any event of the type described in Item 3(f) of the Regulations S-K of the Securities Exchange Act of 1934.

 

13. EXECUTIVE COMPENSATION

Current Remuneration. During 2011 no officer or director of the Registrant received aggregate direct remuneration from the Registrant in excess of $60,000. The following tabulation sets forth certain information concerning all remuneration paid by the Registrant to all officers and directors of the Registrant during the year ended December 31, 2011.

 

Name of Individuals or Number

of Persons In Group

    Capacities
which served		      Salaries and
Directors’ Fees		  

All directors and officers as a group (three (3) persons)

      Directors and Officers       $ 9,700   

REMUNERATION IN THE FUTURE. As of December 31, 2011 no officer or director of the Registrant has any contract or other arrangement with the Registrant relating to any future remuneration, except that as long as such officers and directors continue to serve in such capacity, they will receive from the Registrant the customary fees and salaries at a rate to be agreed upon by the Registrant and such persons.

Directors’ Remuneration. All directors of the Registrant receive $300 per month.

Options, Warrants, or Rights. The Registrant does not maintain any plan pursuant to which persons are entitled to acquire any equity securities of the Registrant.

Termination of Employment. Except as otherwise described in Item 11 of this annual report on Form 10-K, there are no plans or arrangements relating to payments to be made to any officer, or director of the Registrant, which resulted or will result from any person’s resignation, retirement, or termination or employment with the Registrant.

 

14. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a) Security Ownership of Certain Beneficial Owners.

As of the date of this annual report on Form 10-K, the only person who owns of record and directly more than 5% of the Registrant’s outstanding voting securities is Twenty Services Holding, Inc., a Delaware corporation, whose principal business address is 20 Cropwell Drive, Suite 100, Pell City, Alabama. As of such date, Twenty Services Holding, Inc. and an affiliate of Holding own 725,267 shares of Common Stock of the Registrant and approximately 57% of the combined outstanding shares of Common Stock and Series A Preferred Stock of the Registrant. Except as otherwise required by Alabama law and except for certain rights accorded by the Registrant’s Certificate of Incorporation in the event that dividends respecting the Series A-Preferred stock are not paid, the holders of the Series A-Preferred Stock are not entitled to vote respecting matters coming before any meeting of the stockholders of the Registrant.

By virtue of his ownership of Common Stock of Twenty Services Holding, Inc., Mr. David J. Noble, the Chairman of the Board or Directors of the Registrant, indirectly and beneficially, owns approximately 52% of the outstanding Common Stock of the Registrant.

(b) Security Ownership of Management. The following tabulation sets forth certain information regarding the shares of equity securities of the Registrant.

 

Title of Class

   

Name of

Beneficial Owner

   

Approximate Amount
and Nature of
Beneficial Owner

    Percent
of
Class

Common Stock

    David J. Noble    668,183 Indirect(1)    52.29%

Common Stock

    A.J. Strickland, III    49,638 Indirect(1)    3.88%

Common Stock

    All directors and executive officers as a group (3) persons    717,821 Indirect(1)    56.18%

Index to Financial Statements

 

(l) Reflects each person’s interest in the shares of common stock of the Registrant owned by Twenty Services Holding, Inc. based upon such person’s ownership of the outstanding shares of common stock of Twenty Services Holding, Inc. as of February 28, 2012, excluding 6,000 shares of common stock of Twenty Services Holding, Inc. held by the Registrant. Twenty Services Holding, Inc. owns 725,267 shares or approximately 57% of the outstanding shares of common stock.

As of February 28, 2012, all officers and directors of the Registrant as a group beneficially owned, based upon their ownership of the outstanding common stock of Twenty Services Holding, Inc. (“Holding”), and excluding adjustment for the shares of common stock of Holding, held by the Registrant, 717,821 shares of common stock of the Registrant, or approximately 56% of the outstanding common stock of the Registrant as of such date.

(c) Changes in Control. There are no arrangements known to the Registrant which subsequently could result in a change of control of the Registrant.

 

15. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

There were no transactions during 2011 nor are there any currently proposed transactions between any pension, retirement, savings or similar plan of the Registrant and its affiliates, on the other hand, and the Registrant and its affiliates, any officer, director or principal stockholder of the Registrant, or any person who has been nominated as a director of the Registrant, on the other hand.

PART IV

 

16. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

(a) (l) - (a) (2) - Financial Statements and Financial Statement Schedules. The financial statements and the financial statement schedules required to be filed as part of this report are listed in the accompanying Index to Financial Statements and Financial Statement Schedules, and are set forth at the pages shown in such Index.

(a) (d) - Exhibits. The Certificate of Incorporation of the Registrant, as amended, the By Laws of the Registrant, as amended, and Resolutions of the Board of Directors of the Registrant creating the 7% Cumulative Series A-1980 Preference Stock, the 7% Cumulative Series A-1981 Preference Stock, the 7% Cumulative Series A-1982 Preference Stock, the 7% Cumulative Series A-1985 Preference Stock, which were filed as exhibits to the Registrant’s Annual Report on Form 10-K for the years ended December 31, 1980, December 31, 1981, December 31, 1982 and 1985, and the Registrant’s report on Form 8-K dated as of April 10 1984, are incorporated by reference.

EXHIBITS:

 

  31.1    SECTION 302 CEO CERTIFICATION
  31.2    SECTION 302 VP CERTIFICATION
  32.1    SECTION 906 CEO CERTIFICATION
  32.2    SECTION 906 VP CERTIFICATION
101.INS    XBRL Instance Document
101.SCH    XBRL Taxonomy Extension Schema
101.CAL    XBRL Taxonomy Extension Calculation Linkbase
101.DEF    XBRL Taxonomy Extension Definition Linkbase
101.LAB    XBRL Taxonomy Extension Label Linkbase
101.PRE    XBRL Taxonomy Extension Presentation Linkbase

(b) Reports on Form 8-K. No report on Form 8-K was filed during the year.

Pursuant to the requirements of Section 13 or 15(d) 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.

 

    TWENTY SERVICES, INC.
Dated: September 14, 2012    

By:

               /s/ Shirley B. Whitaker
                  Shirley B. Whitaker
                  Vice-President

 

SIGNATURE

   

CAPACITY

    DATE  

/s/ David J. Noble

David J. Noble

   

Chairman and Director and Principal Executive

Officer of The Registrant

      September 14, 2012   

/s/ Dr. A. J. Strickland, III

Dr. A. J. Strickland, III

   

Vice-Chairman and Director of Twenty

Services, Inc. (The Registrant)

      September 14, 2012   

Index to Financial Statements

REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

We, as members of the Management of Twenty Services, Inc. (The “Company”), are responsible for establishing and maintaining effective internal control over financial reporting. Twenty’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.

All internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect misstatements in the Company’s financial statements, including the possibility of circumvention or overriding of controls. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Twenty Services, Inc. assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2011. In making this assessment, we used the criteria set forth by the Commission of Sponsoring Organizations of the Treadway Commission (COSO) in its Internal Control Over Financial Reporting—Guidance For Small Public Companies.

Based upon our assessment, we believe and assert that, as of December 31, 2011 the Company’s internal control over financial reporting is effective based on these criteria.

 

Date: September 14, 2012        By  

/s/ David J. Noble

     

David J. Noble

Chairman/Director

And Principal Executive Officer

    By  

/s/ Shirley B. Whitaker

     

Shirley B. Whitaker

Vice-President

Index to Financial Statements

TWENTY SERVICES, INC.

Financial Statements

and

Financial Statement Schedule

For the Years Ended

December 31, 2011, 2010 and 2009

Index to Financial Statements

TWENTY SERVICES, INC.

Index to Financial Statements and Financial Statement Schedule

December 31, 2011, 2010 and 2009

 

Index to Financial Statements and Financial Statement Schedule

     F-1   

Independent Auditors’ Report

      F-2   

Balance Sheets

      F-3   

Statements of Operations

      F-4   

Statements of Changes in Stockholders’ Equity

      F-5   

Statements of Cash Flows

      F-6   

Notes to Financial Statements

      F-7 - F-12   

Financial Statement Schedule:

   

Schedule I – Marketable Securities – 2011

      F-13 - F-14   

Schedule I – Marketable Securities – 2010

      F-15 - F-16   

 

F-1

Index to Financial Statements

LOGO

 

The Shareholders and the Board of Directors

Twenty Services, Inc.

Independent Auditors’ Report

We have audited the accompanying balance sheets of Twenty Services, Inc. (the Company) as of December 31, 2011, 2010 and 2009 and the related statements of operations, comprehensive income, cash flows and changes in stockholders’ equity for each of the three years in the period ended December 31, 2011. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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.

See Note 14 in regards to reclassification of disclosures in previously financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Twenty Services, Inc. at December 31, 2011, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of marketable securities for the years ended December 31, 2011, 2010 and 2009 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 

LOGO

Borland Benefield, P.C.

Birmingham, Alabama

March 12, 2012, except for Note 14, as to which the date is August 8, 2012

 

F-2

Index to Financial Statements

TWENTY SERVICES, INC.

Balance Sheets

 

 

     December 31,  
     2011     2010  

Assets

     

Cash and cash equivalents

    $ 104,672      $ 94,206   

Marketable securities

      3,930,601        4,413,690   

Notes receivable - related party

      —          28,520   

Other assets

      22,553        22,553   
  

 

 

    

 

 

  

Total Assets

    $ 4,057,826      $ 4,558,969   
  

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

     

Liabilities

     

Accounts payable and accrued liabilities

    $ 69,961      $ 79,448   

Deferred tax liability

      237,759        393,114   
  

 

 

    

 

 

  

Total Liabilities

      307,720        472,562   
  

 

 

    

 

 

  

Stockholders’ Equity

     

Preferred stock, $.10 par value, 7% cumulative, 2,500,000 shares authorized,

     

505,110 shares issued and outstanding

      50,511        50,511   

Common stock, $.10 par value, 25,000,000 shares authorized, 1,283,068 issued and outstanding

      128,307        128,307   

Additional paid-in capital

      1,716,074        1,716,074   

Retained earnings

      1,114,595        1,126,664   

Accumulated other comprehensive income

      1,125,306        1,422,716   

Less: Investment in Twenty Services Holding, Inc.

      (60,000 )      (60,000 ) 

Preferred treasury stock, at $.25 per share; 70,178 and 66,744 shares at December 31, 2011 and 2010, respectively

      (17,543 )      (16,686 ) 

Common treasury stock, at $2.50 per share; 122,858 and 112,472 shares

     

December 31, 2011 and 2010, respectively

      (307,144 )      (281,179 ) 
  

 

 

    

 

 

  

Net Stockholders’ Equity

      3,750,106        4,086,407   
  

 

 

    

 

 

  

Total Liabilities and Stockholders’ Equity

    $ 4,057,826      $ 4,558,969   
  

 

 

    

 

 

  

See accompanying notes to financial statements.

 

F-3

Index to Financial Statements

TWENTY SERVICES, INC.

Statements of Operations

 

 

     For the Years Ended December 31,  
     2011     2010     2009  

Revenue

       

Interest

    $ 70,935      $ 66,052      $ 71,732   

Dividends

      39,129        38,788        51,298   

Other

      2,486        73        600   
  

 

 

    

 

 

    

 

 

  

Total Revenue

      112,550        104,913        123,630   

Operating Expenses

       

General and administrative

      126,737        117,006        145,046   

Other Income (Loss)

       

Gain (loss) on sale of marketable securities

      6,205        13,500        (41,178 ) 
  

 

 

    

 

 

    

 

 

  

Income (Loss) Before Income Taxes

      (7,982 )      1,407        (62,594 ) 

Income Tax Benefits (Expense)

      23,769        9,079        15,103   
  

 

 

    

 

 

    

 

 

  

Net Income (Loss)

    $ 15,787      $ 10,486      $ (47,491 ) 
  

 

 

    

 

 

    

 

 

  

Loss Per Common Share

    $ (0.01 )    $ (0.01 )    $ (0.06 ) 
  

 

 

    

 

 

    

 

 

  

See accompanying notes to financial statements.

 

F-4

Index to Financial Statements

TWENTY SERVICES, INC.

Statements of Changes in Stockholders’ Equity

For the Years Ended December 31, 2011, 2010 and 2009

 

 

    

Preferred
Stock $.10

     Common
Stock $.10		     Additional
Paid-In
Capital		     Retained
Earnings		     Accumulated
Other
Comprehensive
Income 		    Investment
in Twenty
Services
Holding,
Inc.		     Preferred
Treasury
Stock		     Common
Treasury
Stock		     Total  

Balance - December 31, 2008

   $ 50,511      $ 128,307      $ 1,716,074      $ 1,219,440      $ 407,303      $ (60,000 )    $ (15,784 )    $ (276,704 )    $  3,169,147   

Comprehensive Income

                  

Net Loss

     —          —          —          (47,491 )      —          —          —          —          (47,491 ) 

Change in Unrealized Gains on Available-for-Sale Securities, Net of Deferred Income Tax of $84,011

     —          —          —          —          202,237        —          —          —          202,237   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Comprehensive Income

     —          —          —          —          —          —          —          —          154,746   

Purchase of Treasury Stock

     —          —          —          —          —          —          (631 )      (1,810 )      (2,441 ) 

Dividends on Preferred Stock, ($.07 Per Share)

     —          —          —          (28,583 )      —          —          —          —          (28,583 ) 

Balance - December 31, 2009

     50,511        128,307        1,716,074        1,143,366        609,540        (60,000 )      (16,415 )      (278,514 )      3,292,869   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive Income

                  

Net Loss

     —          —          —          10,486        —          —          —          —          10,486   

Change in Unrealized Gains on Available-for-Sale Securities, Net of Deferred Income Tax of $183,036

     —          —          —          —          813,176        —          —          —          813,176   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Comprehensive Income

     —          —          —          —          —          —          —          —          823,662   

Purchase of Treasury Stock

     —          —          —          —          —          —          (271 )      (2,665 )      (2,936 ) 

Dividends on Preferred Stock ($.07 Per Share)

     —          —          —          (27,188 )      —          —          —          —          (27,188 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance - December 31, 2010

   $ 50,511      $ 128,307      $ 1,716,074      $ 1,126,664      $ 1,422,716      $ (60,000 )    $ (16,686 )$      (281,179 )    $ 4,086,407   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive Income

                  

Net Income

     —          —          —          15,787        —          —          —          —          15,787   

Change in Unrealized Gains on Available-for-Sale Securities, Net of Deferred Income Tax of $121,663

     —          —          —          —          (297,410 )      —          —          —          (297,410 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Comprehensive Income

     —          —          —          —          —          —          —          —          (281,623 ) 

Purchase of Treasury Stock

     —          —          —          —          —          —          (857 )      (25,965 )      (26,822 ) 

Dividends on Preferred Stock ($.07 Per Share)

     —          —          —          (27,856 )      —          —          —          —          (27,856 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance - December 31, 2011

   $ 50,511      $ 128,307      $ 1,716,074      $ 1,114,595      $ 1,125,306      $ (60,000 )    $ (17,543 )    $ (307,144 )    $ 3,750,106   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

See accompanying notes to financial statements.

 

F-5

Index to Financial Statements

TWENTYSERVICES, INC.

Statements of Cash Flows

 

 

     For the Years Ended December 31,  
     2011     2010     2009  

Cash Flows From Operating Activities

       

Interest and dividends received

    $ 110,064      $ 103,993      $ 123,031   

Other income

      2,486        73        600   

Cash paid to suppliers and employees

      (133,863 )      (129,923 )      (151,995 ) 
  

 

 

    

 

 

    

 

 

  

Net Cash Flows Used by Operating Activities

      (21,313 )      (25,857 )      (28,364 ) 
  

 

 

    

 

 

    

 

 

  

Cash Flows From Investing Activities

       

Principal collected on loans

      28,520        —          —     

Principal collected on held-to-maturity securities

      421        516        515   

Proceeds from sale of available-for-sale securities

      112,064        74,744        1,081,555   

Purchases of available-for-sale securities

      (51,116 )      (199,717 )      (797,779 ) 
  

 

 

    

 

 

    

 

 

  

Net Cash Flows Provided (Used) From Investing Activities

      89,889        (124,457 )      284,291   
  

 

 

    

 

 

    

 

 

  

Cash Flows From Financing Activities

       

Preferred stock dividends paid

      (31,288 )      (34,556 )      (24,936 ) 

Purchase of treasury stock

      (26,822 )      (2,935 )      (2,441 ) 
  

 

 

    

 

 

    

 

 

  

Net Cash Flows Used by Financing Activities

      (58,110 )      (37,491 )      (27,377 ) 
  

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Cash and Cash Equivalents

      10,466        (187,805 )      228,550   

Cash and Cash Equivalents, Beginning of Year

      94,206        282,011        53,461   
  

 

 

    

 

 

    

 

 

  

Cash and Cash Equivalents, End of Year

    $ 104,672      $ 94,206      $ 282,011   
  

 

 

    

 

 

    

 

 

  

Reconciliation of Operating Income (Loss) to Net Cash From Operating Activities

       

Net income (loss)

    $ 15,787      $ 10,486      $ (47,491 ) 

Adjustments to reconcile net income to net operating activities

       

Realized (gain) loss on sale of marketable securities

      (6,205 )      (13,500 )      41,178   

Net change in deferred income taxes

      (24,840 )      (6,578 )      (22,834 ) 

Increase (decrease) in accrued interest receivable

      —          (847 )      (851 ) 

Increase (decrease) in accounts payable and accrued liabilities

      (6,055 )      (15,418 )      1,634   
  

 

 

    

 

 

    

 

 

  

Net Cash Flows Used by Operating Activities

    $ (21,313 )    $ (25,857 )    $ (28,364 ) 
  

 

 

    

 

 

    

 

 

  

See accompanying notes to financial statements.

 

F-6

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements

For the Years Ended December 31, 2011, 2010 and 2009

 

Note 1 – Accounting Policies

Income Recognition – Interest income from finance receivables is recognized by Twenty Services, Inc. (the Company) using the interest (accrual) method. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 90 days or more and resumed when the loan becomes contractually current.

Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Credit Losses – Provisions for credit losses are charged to income in amounts sufficient to maintain the allowance at a level considered adequate to cover the losses of principal and interest in the existing portfolio. The Company’s charge-off policy is based on a loan-by-loan review for all receivables that are charged off when they are deemed uncollectible.

Cash Equivalents – Holdings of highly liquid investments with original maturities of three months or less and investments in money market funds are considered to be cash equivalents.

Marketable Securities – Management determines the appropriate classification of its investment in debt and equity securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company’s securities are classified in two categories and accounted for as follows:

 

  •  

Securities Held-to-Maturity. Bonds, notes, certain preferred stocks and other debt securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts which are recognized in interest income using methods which approximate level yields over the period to maturity.

 

  •  

Securities Available-for-Sale. Bonds, notes and certain preferred stocks not classified as held-to-maturity and common stocks are reported at fair value.

Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The write-downs are included in earnings as realized losses.

Unrealized holding gains and losses, net of deferred income taxes, on securities available-for-sale are reported as a net amount in a separate component of stockholders’ equity until realized.

Realized gains and losses on the sale of securities available-for-sale are determined using the specific-identification method.

Income Taxes – Deferred income taxes are recognized for the effects of temporary differences between financial statement and tax reporting.

The Company implemented the provisions of FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes, as of January 1, 2010. As of December 31, 2011, the Company had no uncertain tax positions that qualify for disclosure in the financial statements. The Company files an annual income tax return with the Internal Revenue Service and its tax returns for the year 2008 and subsequent years remain subject to examination by tax authorities.

Earnings Per Common Share – Earnings per common share are determined by dividing net income (loss), after giving effect to preferred stock dividends, by the weighted average number of common shares outstanding during the year. The weighted average number of common shares outstanding for each of the years ended December 31, 2011, 2010 and 2009 was 1,283,068.

 

F-7

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements (continued)

For the Years Ended December 31, 2011, 2010 & 2009

 

 

Note 2 – Nature of Operations, Risks, and Uncertainties

The Company is primarily engaged in the general finance business. The Company grants commercial and personal real estate loans and general business and personal loans to customers located primarily in Alabama. The majority of the loan portfolio is secured by various types of collateral including mortgages and security interests in equipment and other property with a significant concentration in loans collateralized by residential real estate.

Note 3 – Fair Values of Financial Instruments

FASB ASC 820-10-50 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

 

  •  

Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and over-the-counter markets with sufficient volume),

 

  •  

Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market, and

 

  •  

Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based on Company-specific data. These unobservable assumptions reflect the Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability.

Items Measured at Fair Value on a Recurring Basis

The following table presents financial assets measured at fair value on a reoccurring basis as of December 31:

 

            Fair Value Measurements at Reporting Date Using  
Description    12/31/2011      Quoted Prices in
Active  Markets
for Identical Assets
(Level 1)		      Significant  Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Equity securities - available-for-sale

    $ 2,578,394       $ 2,578,394       $ —         $ —     

Debt securities - available-for-sale

            

Municipal Bonds

      670,844         —           670,844         —     

Corporate Bonds

      681,354         —           681,354         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Available-for-sale securities

    $ 3,930,592       $ 2,578,394       $ 1,352,198       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  
     12/31/2010                       

Equity securities - available-for-sale

    $ 3,146,010       $ 3,146,010       $ —         $ —     

Debt securities - available-for-sale

            

Municipal Bonds

      560,593         —           560,593         —     

Corporate Bonds

      706,657         —           706,657         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Available-for-sale securities

    $ 4,413,260       $ 3,146,010       $ 1,267,250       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

The following methods and assumptions were used by the Company in estimating the fair values of financial instruments as disclosed herein:

 

  •  

Short-term financial instruments are carried at their carrying amounts reported in the balance sheet that are reasonable estimates of fair values due to the relatively short period to maturity of the instruments. This approach applies to cash and temporary investments, notes receivable from related parties and other receivables.

 

F-8

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements (continued)

For the Years Ended December 31, 2011, 2010 & 2009

 

 

Note 3 – Fair Value of Financial Instruments (continued)

 

  •  

Marketable securities held to maturity are valued at quoted market values.

 

     2011      2010  
     Carrying
Value		      Fair
Value		      Carrying
Value		      Fair
Value		  
           

Cash and temporary investments

    $ 104,672       $ 104,672       $ 94,206       $ 94,206   

Marketable securities - Held to Maturity

      9         9         430         430   

Notes receivable, net

      —           —           28,520         28,520   

Note 4 – Marketable Securities

The amortized cost and aggregate fair values of investments in securities are as follows:

 

     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		      Fair
Value		  

December 31, 2011

            

Available-for-sale securities

            

Equity securities

    $ 1,029,335       $ 1,674,800       $ 125,741       $ 2,578,394   

Debt securities

      1,246,395         109,304         3,501         1,352,198   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 2,275,730       $ 1,784,104       $ 129,242       $ 3,930,592   
  

 

 

     

 

 

     

 

 

     

 

 

  

Held-to-maturity securities

            

Obligations of U.S. Government

            

Corporation and Agencies

    $ 9       $ —         $ —         $ 9   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2010

            

Available-for-sale securities

            

Equity securities

    $ 1,080,000       $ 2,184,770       $ 118,760       $ 3,146,010   

Debt securities

      1,250,606         55,219         38,575         1,267,250   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 2,330,606       $ 2,239,989       $ 157,335       $ 4,413,260   
  

 

 

     

 

 

     

 

 

     

 

 

  

Held-to-maturity securities

            

Obligations of U.S. Government

            

Corporation and Agencies

    $ 430       $ —         $ —         $ 430   
  

 

 

     

 

 

     

 

 

     

 

 

  

The amortized cost and aggregate fair value of debt securities at December 31, 2011 and 2010, by contractual maturity, are as follows. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call prepayment penalties.

 

F-9

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements (continued)

For the Years Ended December 31, 2011, 2010 & 2009

 

 

Note 4 – Marketable Securities (continued)

 

     Available-for-Sale      Held-to-Maturity  
     Amortized
Cost		      Market
Value		      Amortized
Cost		      Market
Value		  

December 31, 2011

            

Corporate Due In

            

After 10 Years

    $ 608,743       $ 681,354       $ —         $ —     

Corporate and Municipal Holdings Due In

            

6-10 Years

      —           —           9         9   

After 10 Years

      637,643         670,844         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,246,386       $ 1,352,198       $ 9       $ 9   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2010

            

Corporate Due In

            

After 10 Years

    $ 661,727       $ 706,636       $ —         $ —     

U.S. Government Corporations and Agencies Due In

            

6-10 Years

      —           —           430         430   
  

 

 

     

 

 

     

 

 

     

 

 

  

After 10 Years

      588,879         560,614         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $  1,250,606       $ 1,267,250       $ 430       $ 430   
  

 

 

     

 

 

     

 

 

     

 

 

  

Proceeds from the sale of available-for-sale securities were $109,600 for the year ended December 31, 2011. A net gain of $6,205 was realized. There were no sales of held-to-maturity securities for the year ended December 31, 2011.

Proceeds from the sale of available-for-sale securities were $74,744 for the year ended December 31, 2010. A net gain of $13,500 was realized. There were no sales of held-to-maturity securities for the year ended December 31, 2010.

Note 5 – Finance Receivables and Allowance for Credit Losses

Finance receivables consisted of the following at December 31:

 

     2011      2010  

Finance Receivables

    $ —         $ 28,520   
  

 

 

     

 

 

  

All contractual maturities of finance receivables were paid in the year ended December 31, 2011.

Note 6 – Income Taxes

Temporary differences giving rise to the deferred tax liability (benefit) consist primarily of gains and losses on investments recognized for financial reporting purposes that are not recognized for tax purposes and of unused operating and capital loss carryforwards that may be applied against future taxable income.

 

F-10

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements (continued)

For the Years Ended December 31, 2011, 2010 & 2009

 

 

Note 6 – Income Taxes (continued)

 

The provision for income taxes was as follows for the years ended December 31:

 

     2011      2010      2009  

Current

         

Deferred Tax Benefits

    $ 23,769       $ 9,079       $ 15,103   
  

 

 

     

 

 

     

 

 

  

Deferred tax assets and liabilities at December 31 consisted of the following:

 

     2011     2010  

Deferred Tax Assets

     

Net operating and capital loss carryforwards

    $ 291,800      $ 273,378   
  

 

 

    

 

 

  
     291,800        273,378   

Deferred Tax Liability

     

Net unrealized gain on available-for-sale securities

      (529,559 )      (666,492 ) 
  

 

 

    

 

 

  

Net Deferred Tax Asset (Liability)

    $ (237,759 )    $ (393,114 ) 
  

 

 

    

 

 

  

The Company has available at December 31, 2009, approximately $900,000 of unused operating and capital loss carryforwards that may be applied against future taxable income and that expire in various years from 2011 to 2026.

Note 7 – Stockholders’ Equity

The preferred stock has a cumulative dividend of $.07 per share and is redeemable at the Company’s option of $1.05 per share. In the event of liquidation, the preferred stockholders receive $1.05 per share before any distributions are made to common stockholders. The 2007 dividend (approximately $28,000) was declared February 2008 and paid in March 2008. The 2008 dividend (approximately $28,000) was declared February 2009 and paid in March 2009. The 2009 dividend (approximately $28,000) was declared February 2010 and paid in March 2010. The 2010 dividend (approximately $28,000) was declared February 2011 and paid in March 2011.

Note 8 – Investment in Twenty Services Holding, Inc.

The Company owns 6,000 shares of common stock of Twenty Services Holding, Inc. (the Holding Company), a holding company that owns approximately 54% of the Company’s outstanding common stock. The amount paid for the Holding Company’s common stock of $60,000 has been deducted from stockholders’ equity in the accompanying balance sheet.

Note 9 – Concentration of Credit Risk

The Company maintains its cash and investments with various financial institutions which, at times, may exceed federally insured limits. Management has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents.

Note 10 – Related Party Transactions

At December 31, 2010, the Company had notes receivable from an officer totaling $28,520. This note was paid in full during the year ended December 31, 2011.

 

F-11

Index to Financial Statements

TWENTY SERVICES, INC.

Notes to Financial Statements (continued)

For the Years Ended December 31, 2011, 2010 & 2009

 

 

Note 11 – Treasury Stock

The Company purchased 3,431 shares of common stock for an aggregate purchase price of $8,578, or $2.50 per share, and 10,386 shares of its preferred stock for an aggregate purchase price of $18,244 or $1.75 per share, during the year ended December 31, 2011. The shares are held as common treasury stock and preferred treasury stock.

The Company purchased 1,066 shares of common stock for an aggregate purchase price of $2,665, or $2.50 per share, and 1,084 shares of its preferred stock for an aggregate purchase price of $271, or $0.25 per share, during the year ended December 31, 2010. The shares are held as common treasury stock and preferred treasury stock.

The Company purchased 724 shares of common stock for an aggregate purchase price of $1,810, or $2.50 per share, and 2,524 shares of its preferred stock for an aggregate purchase price of $631 or $0.25 per share, during the year ended December 31, 2009. The shares are held as common treasury stock and preferred treasury stock.

Note 12 – Recently Issued Accounting Pronouncements

Accounting Standards Update (ASU) No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.

ASU 2011-04 changes the wording used to describe requirements for fair value measurements to include (i) those that clarify the Board’s intent about the application of existing fair value measurements, (ii) Those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. ASU 2011-04 further improves consistency between disclosure requirements of U.S. GAAP and IFRS by changing certain wording. Also, ASU 2011-04 updates the requirements for measuring fair value or disclosing information about measuring fair value including (i) measuring the fair value of financial instruments that are managed by a portfolio, (ii) application of premiums and discounts in fair value measurement, and (iii) amendments to expand the disclosures about fair value measurements. The amendments will become effective during annual periods for the Company after December 15, 2011.

Note 13 – Subsequent Events

Management has evaluated subsequent events through March 12, 2012, the date the financial statements were available to be issued.

Note 14 – Reclassification of Fair Value Measurement Disclosures

Certain available for sale securities classified as fair value measurement Level I in the prior year financial statements have been reclassified to Level 2 for comparative purposes to conform to the presentation in the current year financial statements.

 

 

F-12

Index to Financial Statements

 

Schedule Marketable Securities

TWENTY SERVICES, INC.

Schedule I - Marketable Securities

For the Year Ended December 31, 2011

 

Name of issuer and title of each issue

    Number of
shares or
units -
principal
amount
of bonds
and notes		      Cost of
each issue		      Market
value
of each
issue
at balance
sheet date		      Amount at which
each portfolio
of equity
security issues
and each other
security issue is
carried in the
balance sheet		  

Equity Securities Available-for-Sale:

            

American Equity Investment Life Holding Company (AEL)

      237,000       $ 790,000       $ 2,464,800       $ 2,464,800   

Royal Bank of Scotland 6.125% Ser R Callable 12/30/11

      2,000         50,000         22,400         22,400   

Wells Fargo Advantage Global D

      2,000         39,907         15,180         15,180   

Blackrock Preferred & Equity Advantage Trust

      2,000         49,428         24,304         24,304   

NorthStar Realty 8.25% Cum. Per. Pref. Ser. Callable 2/7/12

      2,000         50,000         40,760         40,760   

Alpine Total Dynamic Dividend Fund SBI

      2,500         50,000         10,950         10,950   
     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available-for-Sale

         1,029,335         2,578,394         2,578,394   
     

 

 

     

 

 

     

 

 

  

Debt Securities Available-for-Sale:

            

New York New York Ser A1 G/O UNLTD 5%

      25,000         26,434         29,106         29,106   

Northwest TX INDPT Sch Dist Sch BLDG G/O 5%

      25,000         26,554         29,015         29,015   

Travis Co. TX Road G/O 4%

      50,000         50,004         55,886         55,886   

State Univ IA Univ Rev Rec FACS Ser S

      50,000         50,000         54,681         54,681   

Mobile, AL Rfdg War Ser A Cpn 5% de 2/15/27

      25,000         26,438         27,296         27,296   

University VT & St Agric Cllg Ser B GO 4.375% Due 10/1/27

      25,000         25,432         26,289         26,289   

Minnesota St Sere 2009B G/O Cpn 4.0% Due 8/1/28

      25,000         25,004         26,217         26,217   

Omaha Neb Ser A G/O Cpn 6.5% Due 12/1/30

      25,000         32,413         34,819         34,819   

Washington St. Var PURP Ser F G/O Cpn 4.5% Due 7/1/32

      25,000         25,553         25,687         25,687   

Keller Tx Indpt Sch Dist Sch Bldg Cpn 4.75% Due 8/15/32

      50,000         51,086         52,772         52,772   

Hartford Cnty CT MET Dist Ser B G/O Unltd Cpn 4.25 Due 7/15/32

      25,000         25,546         25,649         25,649   

Saratoga Cnty NY PUB Imp Ser A G/O Cpn 4.75% Due 7/15/38

      25,000         25,341         26,408         26,408   

Iowa St Univ Sci & Tech Acad Bldg Cpn 4.0% 7/1/28

      25,000         25,212         25,922         25,922   

 

F-13

Index to Financial Statements

TWENTY SERVICES, INC.

Schedule I - Marketable Securities (continued)

For the Year Ended December 31, 2011

 

 

Name of issuer and title of each issue

    Number of
shares or
units -
principal
amount
of bonds
and notes		      Cost of
each issue		      Market
value
of each
issue
at balance
sheet date		      Amount at which
each portfolio
of equity
security issues
and each other
security issue is
carried in the
balance sheet		  

Debt Securities Available-for-Sale: (continued)

            

State Univ IA Univ Rev Ath Facs Ser S Cpn 4.35% Due 7/1/35

      25,000       $ 25,004       $ 25,506       $ 25,506   

Miami-Dade Cnty Fl Bldg Ser B-1 G/O Cpn 5.375% Due 7/1/29

      25,000         26,493         26,981         26,981   

West Fargo ND PUB Sch Cpn 4.000% Due 5/1/12

      25,000         25,458         25,369         25,369   

Olathe KS SR 215 G/O UNLTD B/E OID cpn 4.125% Due 10/1/29

      25,000         25,219         26,104         26,104   

Tacoma WA Recovery Zone G/O Cpn 4.625% Due 12/1/34

      25,000         25,075         25,422         25,422   

Texas St Trans Comm Mobility G/O Cpn 4.50% Due 4/1/35

      25,000         25,332         25,801         25,801   

Columbus, OH City Sch District

      25,000         25,595         25,445         25,445   

Hoover AL Brd Ed Cap Outlay Wts Cpn 4.25% Due 2/15/39

      20,000         19,009         20,246         20,246   

Metropolitan Transn Auth NY Rev Tx cpn 6.587% Due 11/15/30

      25,000         25,443         30,223         30,223   

Morgan Stanley Med Term Notes Ser F Cpn

      25,000         24,758         24,497         24,497   

Bank of America Corp Senior Notes

      25,000         23,824         24,435         24,435   

JP Morgan Chase Co Senior Notes

      50,000         49,957         56,064         56,064   

Allstate Corp Debentures Noncall Life Cpn 6.75%

      50,000         51,601         59,589         59,589   

Caterpillar Financial Med Term Notes

      50,000         53,665         64,257         64,257   

Goldman Sachs Med Term Notes Cpn 6.75%

      50,000         51,003         53,743         53,743   

Aetna, Inc. Notes Cpn. 7.625%

      150,000         156,147         189,053         189,053   

Land O Lakes Cap Trst I 144 B/E Cpn 7.45% Due 3/15/28

      100,000         98,927         95,926         95,926   

Loews Corp Notes Cpn 6% Due 2/1/2035

      25,000         24,724         27,138         27,138   

Wachovia Corp Senior Notes Cpn 5.5% due 8/1/2035

      30,000         27,104         29,187         29,187   

General Elec Cap Corp Medium Term Notes

      50,000         47,040         57,465         57,465   
     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available-for-Sale

         1,246,395         1,352,198         1,352,198   
     

 

 

     

 

 

     

 

 

  

Debt Securities Held-to-Maturity –

            

GNMA Mortgage Backed Certificates, Due 2012

         —           —           9   
     

 

 

     

 

 

     

 

 

  

Total

       $ 2,275,730       $ 3,930,592       $ 3,930,601   
     

 

 

     

 

 

     

 

 

  

 

F-14

Index to Financial Statements

TWENTY SERVICES, INC.

Schedule I - Marketable Securities

For the Year Ended December 31, 2010

 

Name of issuer and title of each issue

    Number of
shares or
units -
principal
amount
of bonds
and notes		      Cost of
each issue		      Market
value
of each
issue
at balance
sheet date		      Amount at  which
each portfolio
of equity
security issues
and each other
security issue is
carried in the
balance sheet		  
           
           
           
           
           
           
           

Equity Securities Available-for-Sale:

            

American Equity Investment Life Holding Company (AEL)

      237,000       $ 790,000       $ 2,974,350       $ 2,974,350   

Royal Bank of Scotland 6.125% Ser R Callable 12/30/11

      2,000         50,000         29,120         29,120   

Gramercy Capital 8.125% Cum. Per. Pref. Callable 4/18/12

      1,000         25,000         19,440         19,440   

Wells Fargo Advantage Gobal D

      2,000         40,000         19,100         19,100   

Blackrock Preferred & Equity Advantage Trust

      2,000         50,000         24,200         24,200   

Barclay Bank PLC 7.75% Non-Cum. Per. Pref. Callable 3/15/13

      1,000         25,000         25,420         25,420   

NorthStar Realty 8.25% Cum. Per. Pref. Ser. Callable 2/7/12

      2,000         50,000         39,580         39,580   

Alpine Total Dynamic Dividend Fund SBI

      2,500         50,000         14,800         14,800   
     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available-for-Sale

         1,080,000         3,146,010         3,146,010   
     

 

 

     

 

 

     

 

 

  

Debt Securities Available-for-Sale:

            

New York New York Ser A1 G/O UNLTD 5%

      25,000         26,770         26,844         26,844   

Northwest TX INDPT Sch Dist Sch BLDG G/O 5%

      25,000         26,883         26,572         26,572   

Travis Co. TX Road G/O 4%

      50,000         50,005         50,143         50,143   

State Univ IA Univ Rev Rec FACS Ser S

      50,000         50,000         50,552         50,552   

Mobile, AL Rfdg War Ser A Cpn 5% de 2/15/27

      25,000         26,692         25,265         25,265   

University VT & St Agric Cllg Ser B GO 4.375% Due 10/1/27

      25,000         25,492         23,470         23,470   

Minnesota St Sere 2009B G/O Cpn 4.0% Due 8/1/28

      25,000         25,005         23,813         23,813   

Omaha Neb Ser A G/O Cpn 6.5% Due 12/1/30

      25,000         32,727         31,138         31,138   

Washington St. Var PURP Ser F G/O Cpn 4.5% Due 7/1/32

      25,000         25,662         23,617         23,617   

Keller Tx Indpt Sch Dist Sch Bldg Cpn 4.75% Due 8/15/32

      50,000         51,294         49,332         49,332   

Hartford Cnty CT MET Dist Ser B G/O Unltd Cpn 4.25 Due 7/15/32

      25,000         25,621         22,667         22,667   

Saratoga Cnty NY PUB Imp Ser A G/O Cpn 4.75% Due 7/15/38

      25,000         25,396         24,622         24,622   

Iowa St Univ Sci & Tech Acad Bldg Cpn 4.0% 7/1/28

      25,000         25,242         23,069         23,069   

 

F-15

Index to Financial Statements

TWENTY SERVICES, INC.

Schedule I - Marketable Securities (continued)

For the Year Ended December 31, 2010

 

 

Name of issuer and title of each issue

    Number of
shares or
units -
principal
amount
of bonds
and notes		      Cost of
each issue		      Market
value
of each
issue
at balance
sheet date		      Amount at which
each portfolio
of equity
security issues
and each other
security issue is
carried in the
balance sheet		  

Debt Securities Available-for-Sale: (continued)

            

State Univ IA Univ Rev Ath Facs Ser S Cpn 4.35% Due 7/1/35

      25,000       $ 25,005       $ 22,240       $ 22,240   

Miami-Dade Cnty Fl Bldg Ser B-1 G/O Cpn 5.375% Due 7/1/29

      25,000         26,873         25,533         25,533   

Olathe KS SR 215 G/O UNL TD B/E OID cpn 4.125% Due 10/1/29

      25,000         25,253         22,939         22,939   

Tacoma WA Recovery Zone G/O Cpn 4.625% Due 12/1/34

      25,000         25,090         22,445         22,445   

Texas St Trans Comm Mobility G/O Cpn 4.50% Due 4/1/35

      25,000         25,439         23,949         23,949   

Metropolitan Transn Auth NY Rev Tax Cpn 6.587% Due 11/15/30

      25,000         25,443         25,406         25,406   

Hoover AL Brd Ed Cap Outlay Wts Cpn 4.25% Due 2/15/39

      25,000         18,987         16,998         16,998   

Morgan Stanley Med Term Notes Ser F Cpn

      25,000         24,758         26,985         26,985   

Bank of America Corp Senior Notes

      25,000         23,508         26,358         26,358   

JP Morgan Chase Co Senior Notes

      50,000         49,954         56,116         56,116   

Allstate Corp Debentures Noncall Life Cpn 6.75%

      50,000         51,601         58,218         58,218   

Caterpillar Financial Med Term Notes

      50,000         53,665         61,494         61,494   

Goldman Sachs Med Term Notes Cpn 6.75%

      50,000         51,003         56,288         56,288   

AFLAC Senior Notes

      50,000         53,395         62,084         62,084   

Aetna, Inc. Notes Cpn. 7.625%

      150,000         156,147         161,178         161,178   

Land O Lakes Cap Trst I 144 B/E Cpn 7.45% Due 3/15/28

      100,000         98,927         90,000         90,000   

Loews Corp Notes Cpn 6% Due 2/1/2035

      25,000         24,724         24,105         24,105   

Wachovia Corp Senior Notes Cpn 5.5% due 8/1/2035

      30,000         27,005         28,010         28,010   

General Elec Cap Corp Medium Term Notes

      50,000         47,040         55,800         55,800   
     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available-for-Sale

         1,250,606         1,267,250         1,267,250   
     

 

 

     

 

 

     

 

 

  

Debt Securities Held-to-Maturity –

            

GNMA Mortgage Backed Certificates, Due 2012

         —           —           430   
     

 

 

     

 

 

     

 

 

  

Total

       $ 2,330,606       $ 4,413,260       $ 4,413,690   
     

 

 

     

 

 

     

 

 

  

 

F-16

TWENTY SERVICES INC Reports