T.J.T., Inc. Reports 2006 EPS of $.30 Up 100 Percent from 2005

Business Wire, Dec 6, 2006

EMMETT, Idaho -- T.J.T., Inc. (the Company), (Pink Sheets:AXLE) - T.J.T., Inc. today reported increased sales and substantially higher income for the third consecutive year.

The Company's net income was $1,396,000 for the year ended September 30, 2006 or $.30 per fully diluted share, compared to $661,000 or $.15 per fully diluted share in fiscal year 2005. The improvement was driven by a 29 percent increase in gross profit. That increase was primarily due to market driven price increases of axles and tires. Joint venture income increased 31 percent to $596,000 in 2006, compared to $453,000 in 2005. Selling, general and administrative expenses increased $487,000 or 9 percent, primarily due to higher wages and incentive based compensation.

Sales in fiscal year 2006 increased 3 percent to $23.2 million compared to $22.6 million in 2005. Axle and tire sales increased 1.4 percent while accessories and siding sales increased 7.4 percent. Gross profit margin increased to 31 percent in the current year compared to 24 percent in 2005 contributing to the $1,587,000 increase in gross profit in 2006 as compared with 2005.

Sales and gross profit decreased approximately 11 percent in the fourth quarter of 2006 as compared to the same period a year ago. The decrease in sales was primarily a result of the loss of axle and tire sales to one major customer. Gross margin increased slightly compared to the same year ago period. Income from the joint venture decreased $69,000 in the fourth quarter, as compared to the same quarter a year ago, as a result of market driven declines in sales. Net income decreased $75,000 to $234,000 or $.05 per fully diluted share compared to $.07 in the same 2005 period.

"I am very pleased with the annual sales performance this year," said Terrence Sheldon, President and Chief Executive Officer of T.J.T. "We are working hard to replace the sales revenue we lost in our fourth quarter this year. I am optimistic that we will restore those axle and tire sales, incrementally over all of the markets we serve."

Established in 1977, T.J.T. is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho, Washington, California, and Colorado, and serves 13 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.

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