T.J.T., Inc. Reports Results for Fiscal Year 2011

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 $1,103,000, or $.24 per diluted share, for fiscal year 2011. The Company incurred a net loss of $176,000, or $.04 per diluted share, for the fourth quarter.

Net sales were flat in the final quarter of fiscal 2011 as compared to the same quarter in 2010. Net sales declined 18 percent during the twelve months ended September 30, 2011 compared to fiscal 2010. According to statistics from the Manufactured Housing Institute, shipments in the Company’s market area during fiscal 2011 are estimated to have declined approximately 3 percent when compared to 2010. Net sales of axles and tires increased 5 percent and decreased 21 percent in the three and twelve month periods ending September 30, 2011 compared to the same periods in 2010, respectively. The Colorado facility, which closed in July of 2011, contributed sales of $97,000 in the three month period and $761,000 in the twelve month period of 2011 compared to $360,000 and $1,409,889 in the three and twelve month periods of 2010. Excluding Colorado, sales improved 15 percent over 2010 for the fourth quarter and decreased 11 percent for the year. Lower axle and tire net sales in fiscal 2011 periods were a result of lower sales volumes, partially offset by increased selling prices. Net sales of accessories decreased 7 percent in the fourth quarter of 2011 compared to the same 2010 quarter, and declined 10 percent during the twelve months of 2011 as compared to fiscal 2010.

Gross margin increased to 27 percent during the fourth quarter of fiscal 2011 compared to 7 percent in the same quarter of 2010. Gross margin for the twelve month period in fiscal 2011 increased to 22 percent compared to 15 percent in fiscal 2010.

Consolidated selling, general and administrative (SG&A) expense increased 8 percent in the final quarter of 2011 compared to the same quarter in 2010. SG&A for fiscal 2011 decreased 11 percent, or $282,000, compared to the same twelve month period in 2010. The SG&A increase in the fourth quarter is a result of increased headcount, mainly the addition of full time Corporate Officers, as well as the start-up costs associated with the Company’s new North Dakota operation. SG&A declined in the twelve month period due to the cost cutting measures implemented by management and included savings associated with closing the Washington and Colorado facilities.

The Company’s net loss in the fourth quarter of 2011 was $176,000 compared to a net loss of $504,000 in the final quarter of 2010. The Company reported a net loss of $1,103,000, or $.24 per diluted share, for the year ending September 30, 2011 compared to a net loss of $1,535,000, or $.34 per diluted share in 2010. Higher margins in spite of lower sales volumes along with decreases in SG&A contributed to improvements to the net loss in both periods. Impairment losses recognized on investment property held for sale were $154,000 in 2011, compared to $65,000 in 2010. Income tax expense incurred in 2011 is a result of state income tax minimums.

The Company’s North Dakota operation began selling manufactured home set-up supplies, including piers, anchors, skirting, and accessories in the fourth quarter. In the first quarter of fiscal 2012, this facility began distributing recreational vehicle parts. The Company plans to launch its Field Service Division to support the oil and gas industry in 2012. This will include RV repair, 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 14 western states. In addition to the recycling business, T.J.T. 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