T.J.T., Inc. Reports Results for First Quarter Fiscal Year 2012

T.J.T., Inc. (the Company), (Pink Sheets: AXLE) T.J.T., Inc., a major supplier of axles, tires, and set-up supplies to the manufactured housing industry announced a net loss of $329,000, or $.07 per diluted share, for the first quarter of fiscal year 2012.

Net sales decreased three percent in the three month period ending December 31, 2011 as compared to the same period a year ago. Net sales of axles and tires increased two percent in the first three months of 2012 compared to 2011. Net sales for accessories and siding decreased 14 percent in that same time period. Prior to closing in June 2011, the Colorado and Washington facilities contributed sales of $256,000 to the first quarter of fiscal 2011. In the three months ended December 31, 2010, net sales included revenue associated with utilizing the Company’s freight trucks to provide motor carrier services to outside customers. Sales associated with motor carrier services were $21,000 in that three month period.

Excluding Colorado, Washington, and motor carrier services, net sales increased 22%. On the same basis, the axle and tire segment sales increased 53% due to a combination of increased pricing and higher axle and tire volumes stemming from the increased demand for modular and manufactured homes in North Dakota.

The Company’s gross margin increased one percentage point to 21 percent in the three month period ended December 31, 2011 as compared to the same period in 2010.

Selling, general, and administrative (SG&A) expense increased $35,000 during the three month period when compared to the same period a year ago. SG&A expense as a percentage of sales increased three percentage points during the three month period compared to prior year. SG&A increased despite recognizing the benefit of reversing the $107,000 liability associated with the Ulysses Mori case as result of a favorable Idaho Supreme Court ruling, savings of $55,000 incurred as a result of closing the Colorado and Washington facilities, and $58,000 in bad debt charges resulting from the Palm Harbor Homes bankruptcy filing during the three months ended December 31, 2010. The increase is a result of increased headcount, mainly the addition of full time Corporate Executive Officers, start-up costs associated with the Company’s new North Dakota facility, and expenses associated with the relocation of the corporate office to Eagle, Idaho.

The Company’s net loss for the quarter ending December 31, 2011 was $329,000 compared to a net loss of $286,000 for the same quarter a year ago. The increase in the first quarter net loss compared to that of the same period in fiscal 2011 was driven primarily by increased administrative expenses, start-up costs associated with the new North Dakota facility, and corporate office relocation expenses. The net loss in the three month period ending December 31, 2010 includes $30,000 of income related to the Company selling its interest in Ladder Lift Systems, L.L.C. The Company did not record a tax benefit in either period because there are no carryback provisions available.

The Company’s North Dakota operation began distributing recreational vehicle parts and providing associated repair services in the first quarter. The Company plans to launch its Field Service Division to support the oil and gas industry in 2012. This will include workforce housing support and mobile shower and laundry services.

Established in 1977, T.J.T., Inc. is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho and California and serves ten western states. In addition to the recycling business, T.J.T., Inc. also sells aftermarket products to manufactured housing, recreational vehicle, and residential markets.

This release contains certain forward-looking statements, which are based on management’s current expectations including, but not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, competition, and changes in legislation or regulations, and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services. Any forward looking statement speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward looking statement.

Copies of this report and additional financial information can be found at www.otcmarkets.com, or you may contact:

Nicole L. Glisson
Senior Vice President, Chief Financial Officer and Treasurer
T.J.T., Inc.
(208) 472-2500