UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended ~~June 30, 2003~~

~~Commission~~June ~~File~~30, ~~Number 33-98404~~2004

~~T.J.T., INC.~~Commission File Number 33-98404

~~(Exact name of registrant as specified in its charter)~~T.J.T., INC.

WASHINGTON		82-0333246
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)

(Exact name of registrant as specified in its charter)

843 North Washington, P.O. Box 278, Emmett, Idaho 83617

WASHINGTON		82-0333246
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

~~(Address~~843 ofNorth ~~principal~~Washington, ~~executive~~P.O. ~~offices)~~Box 278, Emmett, Idaho 83617

(~~208~~Address of principal executive offices) ~~365-5321~~

(~~Issuer’s telephone number~~208) 365-5321

~~Indicate by check mark whether the registrant~~ (1)Issuer’s ~~has~~telephone ~~filed all reports required to be filed by Section 13 or 15(d~~number) of the Securities Exchange Act during the preceding 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 the past 90 days. Yes ý No o

Indicate by check mark whether the registrant is(1) anhas ~~accelerated~~filed ~~filer~~all reports required to be filed by Section 13 or 15(asd) ~~defined~~of in the Securities Exchange Act ~~Rule~~during ~~12d-2~~the preceding 12 months (or for such shorter period that the registrant was required to file such reports). , and ~~Yes~~(2) ohas Nobeen subject to such filing requirements the past 90 days. Yes ý No o

AtIndicate ~~June~~by ~~30,~~check ~~2003,~~mark whether the registrant ~~had~~is ~~4,504,939~~an ~~shares~~accelerated offiler ~~common~~(as ~~stock~~defined in the Exchange Act Rule ~~outstanding~~12d-2). Yes o No ý

1At June 30, 2004, the registrant had 4,504,939 shares of common stock outstanding.

T.J.T., INC.

Form 10-Q

June 30, ~~2003~~ 2004

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

		Balance Sheets at June 30, 2004 and September 30, 2003

		Statements of Operation for the Three Months and Nine Months Ended June 30, 2004 and 2003

		Statements of Cash Flows for the Nine Months Ended June 30, 2004 and 2003

		Notes to Financial Statements

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.	Quantitative and Qualitative Disclosure about Market Risk

Item 4.	Controls and Procedures

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings

Item 2.	Changes in Securities and Use of Proceeds

Item 3.	Defaults Upon Senior Securities

Item 4.	Submission of Matters to a Vote of Security Holders

Item 5.	Other Information

Item 6.	Exhibits and Reports on Form 8-K

Signatures

Sections 302 and 906 Certifications

Item 1	Financial Statements (Unaudited)
		Balance Sheets at June 30, 2003 and September 30, 2002
		Statements of Operation for the Three Months and Nine Months Ended June 30, 2003 and 2002
		Statements of Cash Flows for the Nine Months Ended June 30, 2003 and 2002
		Notes to Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitative and Qualitative Disclosure about Market Risk
Item 4.	Controls and Procedures
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings
Item 2.	Changes in Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities
Item 4.	Submission of Matters to a Vote of Security Holders
Item 5.	Other Information
Item 6.	Exhibits and Reports on Form 8-K
Signatures
Section 302 Certifications

2T.J.T., INC.

~~T.J.T.,~~BALANCE ~~INC.~~SHEETS

~~BALANCE~~(Dollars ~~SHEETS~~in thousands)

(Dollars in thousands)

	June 30 2004		Sept. 30 2003
Current assets:
Cash and cash equivalents	$	525	$	1,072
Accounts receivable (net of allowance for doubtful accounts of $16 and $68)	1,507		1,336
Notes receivable	60		38
Inventories	2,799		2,566
Prepaid expenses and other current assets	119		107
Total current assets	5,010		5,119

Property, plant and equipment, net of accumulated depreciation	747		594

Notes receivable	228		323
Notes receivable from related parties	4		89
Real estate held for investment	317		341
Investment in joint venture	613		452
Other assets	243		174
Deferred tax asset	297		450
Total assets	$	7,459	$	7,542

Current liabilities:
Accounts payable	$	740	$	864
Accrued liabilities	385		549
Total current liabilities	1,125		1,413

Deferred income and other noncurrent obligations	53		79
Total liabilities	1,178		1,492

Shareholders’ equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, $.001 par value; 10,000,000 shares authorized; 4,504,939 shares issued and outstanding	5		5
Capital surplus	5,790		5,788
Retained earnings	486		257
Total shareholders’ equity	6,281		6,050
Total liabilities and shareholders’ equity	$	7,459	$	7,542

	June 30, 2003		Sept. 30, 2002
Current assets:
Cash and cash equivalents	$	610	$	767
Accounts receivable and notes receivable (net of allowances for doubtful accounts of $138 and $129)	1,304		1,247
Inventories	2,716		2,593
Prepaid expenses and other current assets	112		99
Total current assets	4,742		4,706
Property, plant and equipment, net of accumulated depreciation	602		699
Notes receivable	337		232
Notes receivable from related parties	94		156
Real estate held for investment	340		523
Investment in joint venture	391		—
Other assets	174		135
Deferred tax asset	523		539
Total assets	$	7,203	$	6,990
Current liabilities:
Accounts payable	$	912	$	655
Accrued liabilities	359		334
Total current liabilities	1,271		989
Deferred credits and other noncurrent obligations	86		83
Total liabilities	1,357		1,072
Shareholders’ equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, $.001 par value; 10,000,000 shares authorized; 4,504,939 shares issued and outstanding	5		5
Capital surplus	5,788		6,181
Retained earnings	53		125
Treasury stock (349,800 shares at cost)	—		(393		)
Total shareholders’ equity	5,846		5,918
Total liabilities and shareholders’ equity	$	7,203	$	6,990

See accompanying notes to financial statements.

~~See accompanying notes to financial statements.~~3

3T.J.T., INC.

~~T.J.T.,~~STATEMENTS ~~INC.~~OF OPERATION

~~STATEMENTS~~(Dollars OFin ~~OPERATION~~thousands except per share amounts)

(Dollars in thousands except per share amounts)

	Three Months Ended June 30					Nine Months Ended June 30
	2004		2003			2004		2003

Sales (net of returns and allowances):
Axles and tires	$	3,706	$	3,980		$	10,446	$	11,405
Accessories and siding	1,524		1,147			3,498		3,211
Total sales	5,230		5,127			13,944		14,616

Cost of goods sold
Axles and tires	2,889		3,232			8,117		9,412
Accessories and siding	1,080		795			2,419		2,219
Total cost of goods sold	3,969		4,027			10,536		11,631

Gross profit	1,261		1,100			3,408		2,985

Selling, general and administrative expenses	1,204		1,019			3,326		3,198

Operating income (loss)	57		81			82		(213		)

Interest income	23		12			48		37
Investment property income (expense)	8		(1		)	37		28
Undistributed equity interest in joint venture income	83		12			161		12
Rental income	8		9			41		14
Other income	3		9			13		17

Income (loss) before taxes	182		122			382		(105		)

Income taxes (benefit)	72		50			153		(33		)

Net income (loss)	$	110	$	72		$	229	$	(72	)

Net income (loss) per common share
Basic and fully diluted:
Continuing operations	$	.02	$	.02		$	.05	$	(.02	)
Net income (loss)	$	.02	$	.02		$	.05	$	(.02	)

Weighted average shares outstanding	4,504,939		4,504,939			4,504,939		4,504,939

	Three Months Ended June 30, 2003					Nine Months Ended June 30, 2003
	2003			2002		2003			2002
Sales (net of returns and allowances):
Axles and tires	$	3,980		$	4,182	$	11,405		$	11,394
Accessories and siding	1,147			1,393		3,211			3,484
Total sales	5,127			5,575		14,616			14,878
Cost of goods sold
Axles and tires	3,232			3,443		9,412			9,292
Accessories and siding	795			1,002		2,219			2,474
Total cost of goods sold	4,027			4,445		11,631			11,766
Gross profit	1,100			1,130		2,985			3,112
Selling, general and administrative expenses	1,019			1,112		3,198			3,536
Operating income (loss)	81			18		(213		)	(424		)
Interest income	12			9		37			35
Investment property income (expense)	(1		)	50		28			87
Income from joint venture	12			—		12			—
Rental income	9			5		14			5
Other income	9			19		17			23
Income (loss) before taxes	122			101		(105		)	(274		)
Income taxes (benefit)	50			41		(33		)	(95		)
Income (loss) before cumulative effect of accounting change	72			60		(72		)	(179		)
Cumulative effect of accounting change, net of income taxes	—			—		—			(748		)
Net income (loss)	$	72		$	60	$	(72	)	$	(927	)
Net income (loss) per common share
Continuing operations	$	.02		$	.01	$	(.02	)	$	(.04	)
Cumulative effect of accounting change	—			—		—			(0.17		)
Net income (loss)	$	.02		$	.01	$	(.02	)	$	(.21	)
Weighted average shares outstanding	4,504,939			4,504,939		4,504,939			4,504,939

See accompanying notes to financial statements.

~~See accompanying notes to financial statements.~~4

4T.J.T., INC.

~~T.J.T.,~~STATEMENTS ~~INC.~~OF CASH FLOWS

~~STATEMENTS~~(Dollars OFin ~~CASH FLOWS~~thousands)

(Dollars in thousands)

	For the nine months ended June 30,
	2004			2003
Cash flows from operating activities:
Net income	$	229		$	(72	)
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization	131			174
Change in deferred income taxes	153			16
Gain on sale of assets	(13		)	(41		)
Gain on sale of investment property	(29		)
Equity earnings in joint venture	(161		)	(12		)
Stock compensation	2			—
Change in receivables	(161		)	(40		)
Change in inventories	(233		)	(382		)
Change in prepaid expenses and other current assets	(12		)	(13		)
Change in accounts payable	(124		)	257
Change in other assets and liabilities	(239		)	(26		)
Net cash used by operating activities	(457		)	(139		)

Cash flows from investing activities:
Additions to property, plant and equipment	(284		)	(74		)
Proceeds from sale of assets	13			17
Issuance of notes receivable	(10		)	—
Payments on notes receivable	180			60
Investment in joint venture	—			(120		)
Land purchased for investment	(25		)	0
Sale of land purchased for investment	36			99
Net cash used by investing activities	(90		)	(18		)

Net decrease in cash and cash equivalents	(547		)	(157		)
Beginning cash and cash equivalents	1072			767

Ending cash and cash equivalents	$	525		$	610

Supplemental information:
Interest paid	$	1		$	1
Income taxes paid, net of refunds	11			—
Noncash transactions:
Sale of land by issuance of note receivable	41			120
Inventory invested in joint venture	—			259
Discount on investment property payoff	19			—

	For the nine months ended June 30,
	2003			2002
Cash flows from operating activities:
Net loss	$	(72	)	$	(927	)
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization	174			273
Cumulative effect of accounting change	—			748
Gain on sale of assets	(41		)	(79		)
Equity earnings in joint venture	(12		)	—
Change in receivables	(40		)	(48		)
Change in inventories	(382		)	(104		)
Change in prepaid expenses and other current assets	(13		)	13
Change in accounts payable	257			121
Change in taxes	16			(96		)
Change in other assets and liabilities	(26		)	(165		)
Net cash used by operating activities	(139		)	(264		)
Cash flows from investing activities:
Additions to property, plant and equipment	(74		)	(43		)
Proceeds from sale of assets	17			28
Issuance of notes receivable	—			(25		)
Payments on notes receivable	60			103
Investment in joint venture	(120		)	—
Land purchased for investment	—			(28		)
Sale of land purchased for investment	99			85
Net cash provided (used) by investing activities	(18		)	120
Net decrease in cash and cash equivalents	(157		)	(144		)
Beginning cash and cash equivalents	767			329
Ending cash and cash equivalents	$	610		$	185
Supplemental information:
Interest paid	$	1		$	1
Income taxes paid, net of refunds	—			—
Noncash transactions:
Prepaid operating lease	$	—		$	4
Reacquisition of investment property by cancellation of note receivable	—			40
Cumulative effect of change in accounting principle	—			748
Note receivable issued for sale of land purchased for investment	120			20
Inventory invested in joint venture	259			—

See accompanying notes to financial statements.

~~See accompanying notes to financial statements.~~5

5T.J.T., INC.

~~T.J.T.,~~NOTES ~~INC.~~TO FINANCIAL STATEMENTS (unaudited)

~~NOTES~~NOTE TOA ~~FINANCIAL STATEMENTS~~– ~~(unaudited)~~BASIS OF PRESENTATION

~~NOTE~~Unaudited Financial ~~A — BASIS OF PRESENTATION~~Statements

~~Unaudited~~In the opinion of management, ~~Financial~~the ~~Statements~~accompanying unaudited financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position of T.J.T., Inc. (the “Company”) and the results of operations and cash flows. Certain reclassifications of prior quarter amounts were made to conform with current quarter presentation, none of which affect previously recorded net income.

InStock the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position of T.J.T., Inc. (the Company) and the results of operations and cash flows. Certain reclassifications of prior quarter amounts were made to conform with current quarter presentation, none of which affect previously recorded net income.Options

~~Stock~~The Company has a stock option ~~Options~~plan which allows officers, directors and key employees to receive non-qualified and incentive stock options. During the three month period ending June 30, 2004, the Company awarded 5,000 stock options to a director with an exercise price of $.70 and retired 35,000 stock options previously issued to directors with exercise prices ranging between $.39 and $2.00 per share. The Company awarded 20,000 stock options to directors during the quarter ended March 31, 2004 with exercise prices ranging from $.70 to $.80. No options were granted during the quarter ended December 31, 2003. All options granted will become vested at a rate of 20 percent each year for a period of five years from the grant date. As of June 30, 2004, 380,000 shares of stock were available for future option grants.

~~The~~As of October 1, 2003, the Company ~~has~~adopted athe ~~stock~~fair ~~option~~value ~~plan~~method ~~which~~of ~~allows~~accounting ~~officers,~~for ~~directors and~~stock ~~key~~options ~~employees~~contained in Statement of ~~the~~Financial ~~company~~Standards to(“SFAS”) ~~receive~~No. ~~non-qualified~~123, ~~and~~Accounting for ~~incentive~~Stock-Based ~~stock options~~Compensation. During ~~The~~the ~~Company~~transition ~~awarded 50~~period,~~000~~ ~~stock~~the ~~options~~Company towill ~~directors~~be ~~during~~utilizing the ~~quarter~~prospective ~~ended~~method ~~December~~under ~~31,~~SFAS ~~2002~~No. ~~with~~148 anAccounting ~~exercise~~for ~~price~~Stock-Based Compensation of– $Transition and Disclosures.~~28. During~~ Stock ~~the~~options ~~quarter~~granted ~~ended~~subsequent ~~March~~to 31October 1, 2003, ~~the~~will be ~~Company~~expensed ~~awarded~~over ~~10,000~~the stock ~~options~~option ~~with~~vesting anperiod ~~exercise~~based ~~price~~on offair ~~$.45~~value ~~and~~which ~~5,000~~will be ~~with~~determined anusing ~~exercise~~the ~~price~~Black-Scholes ofoption-pricing ~~$.46~~method toat ~~directors.~~the Andate ~~additional 5,000~~ the options ~~were~~ are granted. Stock-based compensation tofor ~~directors during~~ the ~~quarter~~quarters ~~ended~~ending June 30, ~~2003~~and ~~with~~March an31 ~~exercise~~of fiscal 2004 was ~~price~~$792 ofand $634, respectively.~~62.~~ ~~These~~The ~~options~~net ~~will~~of ~~become~~tax ~~vested~~impact aton athe ~~rate~~financial ofstatements 20in ~~percent~~the ~~each~~nine ~~year~~month ~~for~~period aended ~~period~~June 30, 2004 was $856. The net of ~~five~~tax ~~years~~impact ~~from~~for the ~~grant~~three ~~date. As~~months ofending June 30, ~~2003~~2004 was $475, ~~320,000~~ ~~shares~~which ofis ~~stock~~not ~~were~~included ~~available~~in ~~for~~the table ~~future~~below ~~option~~due ~~grants~~to rounding.

The ~~Company~~following ~~accounts~~table ~~for~~illustrates the ~~its~~effect ~~stock~~on ~~options~~net ~~under~~income ~~Accounting Principles Board~~ (~~APB~~loss) ~~Opinion~~and ~~No.~~net 25income ~~using the intrinsic value method. In accordance with Financial Accounting Standards~~ (~~SFAS~~loss) ~~No.~~per ~~148,~~common ~~Accounting for~~share ~~Stock-Based~~as ~~Compensation —~~if ~~Transition~~the ~~and~~fair ~~Disclosure,~~value ~~pro-forma~~method ~~net~~had ~~income,~~been ~~stock-based compensation~~applied ~~expense,~~to ~~and~~all ~~earnings~~outstanding ~~per~~and ~~share~~unvested ~~using the fair value method are~~awards ~~stated~~in aseach ~~follows~~period:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	June 30, 2003		June 30, 2002		June 30, 2003			June 30, 2002
(Dollars in thousands, except per share amounts)	June 30, 2004		June 30, 2003		June 30, 2004			June 30, 2003
Net income (loss), as reported	$	72110	$	6072	$	~~(72~~229	)	$	(~~927~~72	)
Deduct: stock-based compensation expense determined under fair value method, net of tax	—		—		(9		)	(6		)
Add: stock-based employee compensation expense included in net income, net of tax	—		—		1			—
Pro forma net income (loss)	$	72	$	60	$	(81	)	$	(933	)
Deduct: stock-based compensation expense determined under fair value method for all awards, net of tax	2		2		6			6
Pro forma net income (loss)	$	108	$	70	$	224		$	(78	)
Earnings per share:
Basic — as reported	$	.02	$	.01	$	(.02	)	$	(.21	)
Basic – as reported	$	.02	$	.02	$	.05		$	(.02	)
Basic — pro forma	$	.02	$	.01	$	(.02	)	$	(.21	)
Basic – pro forma	$	.02	$	.02	$	.05		$	(.02	)

NOTE B - INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out and average cost methods) or market.

(Dollars in thousands)	June 30, ~~2003~~2004		Sept. 30, ~~2002~~2003
Raw materials	$	1,~~316~~249	$	1,~~363~~284
Finished goods	1,~~400~~550		1,~~230~~282
Total	$	2,~~716~~799	$	2,~~593~~566

NOTE C —– PROPERTY, PLANT AND EQUIPMENT

(Dollars in thousands)	June 30, ~~2003~~2004		Sept. 30, ~~2002~~2003
Land and building	$	~~386~~393	$	386
Leasehold improvements	~~389~~285		~~386~~399
Furniture and equipment	1,~~152~~222		1,~~102~~153
Vehicles and trailers	1,~~072~~095		1,~~142~~060
	2,999		3,016
	2,995		2,998
Less accumulated depreciation	2,~~397~~248		2,~~317~~404
Net property, plant and equipment	$	~~602~~747	$	~~699~~594

NOTE D - SHAREHOLDERS’ EQUITY

Authorized stock of the Company consists of 10,000,000 shares of $.001 par value common stock and 5,000,000 shares of $.001 par value preferred stock. No shares of preferred stock have been issued.

~~NOTE E — SEGMENT DISCLOSURE~~7

~~The~~NOTE ~~Company~~E ~~operates~~– inSEGMENT two business segments: Axles and Tire Reconditioning and Housing Accessories. These segments have been determined by evaluating the Company’s internal reporting structure and nature of products offered.DISCLOSURE

The Company operates in two business segments: Axles and Tire Reconditioning: ~~The~~and Housing Accessories. These segments have been determined by evaluating the Company’s ~~provides~~internal ~~reconditioned~~reporting ~~axles~~structure and ~~tires~~nature toof ~~manufactured~~products ~~housing factories~~offered.

~~Housing~~Axles ~~Accessories~~and Tire Reconditioning: The Company provides ~~skirting,~~reconditioned ~~siding,~~axles and ~~other aftermarket~~tires ~~accessories~~ to manufactured housing ~~dealers and contractors~~factories.

7Housing Accessories: The Company provides skirting, siding, and other aftermarket accessories to manufactured housing dealers and contractors.

	Axle & Tire Reconditioning		Housing Accessories		Total
(Dollars in thousands)	Axle & Tire Reconditioning		Housing Accessories		Total
Three months ended June 30, 2004
Operating revenue	3,706		1,524		5,230
Operating income (loss)	97		(40	)	57
Depreciation	27		14		41
Three months ended June 30, 2003
Operating revenue	3,980		1,147		5,127
Operating income (loss)	72		9		81
Depreciation	39		15		54
Three months ended June 30, 2002
Nine months ended June 30, 2004
Operating revenue	410,~~182~~446		13,~~393~~498		513,~~575~~944
Operating income (loss)	44224		(26143	)	1881
Depreciation	4898		1633		64131
Nine months ended June 30, 2003
Operating revenue	11,405		3,211		14,616
Operating income (loss)	(127	)	(86	)	(213	)
Depreciation	139		35		174
Nine months ended June 30, 2002
Operating revenue	11,394		3,484		14,878
Operating income (loss)	(131	)	(293	)	(424	)
Depreciation	210		63		273

The Company does not assign interest income, interest expense, other expenses or income taxes to operating segments. Identifiable assets and related capital expenditures are assigned to operating locations rather than operating segments, with depreciation allocated to the segments based upon usage.

~~NOTE~~The FArizona -facility, ~~CREDIT~~which ~~AGREEMENTS~~was closed in June of 2003, primarily reconditioned axles and tires.

OnNOTE ~~April~~F 9,- ~~2003,~~CREDIT the Company renewed a $350,000 revolving credit facility that matures on March 31, 2004 and is secured by receivables and inventory. The interest rate on the credit line is the prime rate plus 1 percent. As of June 30, 2003, the Company has not borrowed on the line and is in compliance with the covenants.AGREEMENTS

~~NOTE~~The GCompany -renewed a $350,000 revolving credit facility that matures on March 31, 2005 and is secured by receivables and inventory. ~~JOINT~~The ~~VENTURE~~interest rate on the credit line is the prime rate plus one percent. As of June 30, 2004, the Company has not borrowed on the line and is in compliance with the covenants.

OnNOTE ~~June~~G 9,- ~~2003,~~RELATED the Company entered into a joint venture with West States Recycling, Inc. to form NewCo Tire & Axle L.L.C. (NewCo) to engage in the manufactured housing axle and tire recycling business in Arizona, New Mexico, and Texas. The Company has a 50% ownership interest in the joint venture and will receive 40% interest in future net profits. Concurrent with the formation of the joint venture, the Company leases trucks and equipment to NewCo. The Company accounts for its investment in NewCo using the equity method.PARTY

~~Item~~The 2Company has 50 percent ownership interest in NewCo Axle & Tire, L. ~~Management’s~~L.C., ~~Discussion~~a joint venture with West States Recycling, Inc., and ~~Analysis~~will receive 40 percent of the future net profits. The Company accounts for its investment in ~~Financial~~NewCo ~~Condition~~under the equity method and ~~Results~~recognized $161,000 of income related to the joint venture during the nine month period ended June 30, 2004. The Company also received rental income from NewCo for equipment leased to the joint venture of approximately $21,000. During the nine month period ended June 30, 2004, the Company recorded sales of $92,000 to NewCo and purchases of $8,000 from NewCo. On June 30, 2004, the NewCo receivable was $48,000. The majority of the receivable is a result of sales that occurred in June of 2004.

~~Operations~~8

~~All~~Item ~~period references are to the three or nine month periods ended June 30, 2003 and 2002, unless otherwise indicated~~2. ~~Quarterly financial results may not be indicative of the financial results for any future period. This Form 10-Q contains certain forward-looking statements which are based on management~~Management’s ~~current~~Discussion ~~expectations. The forward-looking statements are subject to certain risks~~ and ~~uncertainties. The~~Analysis ~~words~~of ~~“believe,”~~Financial ~~“expect,”~~Condition ~~“anticipate,” “intend,” “estimate,” “will,” “should,” “could,”~~ and ~~other~~Results ~~expressions that~~of ~~indicate future events and trends identify~~ Operations

8This Form 10-Q contains certain forward-looking statements which are based on management’s current expectations. These forward-looking statements are subject to certain risks and uncertainties. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” and other expressions that indicate future events and trends identify forward-looking statements. The Company has identified risk factors which could cause actual results to differ substantially from the forward-looking statements. These risk factors include, but are not limited to, general economic conditions, changes in interest rates, availability of financing for both manufactured home buyers and suppliers, real estate values, adverse weather conditions, the economic viability of our customers and vendors, and availability of qualified employees. In addition, industry conditions that may have an adverse impact on future results include, but are not limited to, low barriers of entry, changes and/or enforcement in legislation or regulations, and competitive pressure on both the purchasing of used axles and tires from manufactured housing dealers and the selling of refurbished axles and tires to manufactured housing factories.

~~forward-looking statements~~T. ~~The Company has identified risk factors which could cause actual results to differ substantially from the forward looking statements~~J. ~~These risk factors include~~T., ~~but~~Inc. ~~are~~has ~~not limited to, general~~two ~~economic~~business ~~conditions,~~lines: ~~changes~~repairing inand ~~interest~~reconditioning ~~rates, availability of financing, real estate values, competitive pressure on both the purchasing of used~~ axles and tires ~~from~~for the manufactured housing ~~dealers~~industry, and ~~the~~distribution ~~selling~~ of ~~refurbished~~after-market ~~axles~~accessory ~~and~~products ~~tires~~ to manufactured housing ~~factories,~~dealers ~~adverse~~and ~~weather~~set-up ~~conditions~~contractors, ~~the economic~~as ~~viability~~well ~~of our customers and vendors, changes in legislation or~~as ~~regulations,~~siding ~~availability~~to ofsite ~~qualified employees, and the outcome of current legal proceedings~~builders.

~~T.J.T.,~~The ~~Inc.~~Company has ~~two~~recycling and ~~business~~distribution ~~lines:~~locations ~~axle~~in Emmett, Idaho; Woodland, California; Platteville, Colorado; and Chehalis, Washington. The ~~tire~~Company ~~reconditioning~~also manufactures hanger parts in Eugene, Oregon which are used by the manufactured housing producers to attach axles to homes. The Oregon facility also sells housing and accessory ~~accessories~~products. The Company operates in Arizona and ~~siding~~New ~~distribution~~Mexico through NewCo Axle & Tire, L.L.C. (“NewCo”), a joint venture limited liability corporation.

~~Axles~~Results ~~and tires are purchased from~~of manufactured homes dealers and reconditioned in four locations in the western United States. After axles are reconditioned and certified and tires are inspected and graded, they are sold primarily to manufactured housing factories.Operations

~~Axle~~Nationally, ~~and~~the ~~tire~~manufactured housing ~~reconditioning~~industry iscontinues ~~performed~~to atexperience modest declines in production levels as a result of more restrictive credit standards and excessive repossessions. In the Company’s ~~locations~~market area, manufactured housing shipments increased three percent in ~~Emmett,~~the ~~Idaho;~~quarter ended ~~Centralia~~June 30, ~~Washington;~~2004 ~~Woodland~~as compared to the quarter ended June 30, 2003 according to ~~California;~~statistics from the National Conference of States on Building Codes and Standards. Company ~~Platteville~~net sales increased two percent during that same period; however, ~~Colorado.~~net ~~The~~sales ~~Company~~for ~~maintains~~the a2003 ~~manufacturing~~quarter included sales from the Company’s Arizona facility, which was closed in ~~Eugene~~June of 2003. Excluding the April, ~~Oregon~~May ~~which~~and ~~manufactures~~June 2003 ~~metal~~Arizona ~~hanger~~sales, ~~parts~~net sales for ~~attaching axles~~the toCompany ~~manufactured~~increased ~~homes~~14 ~~and~~percent ~~frame~~during ~~components~~the three ~~used~~month onperiod ~~manufactured~~ending ~~home chassis~~June 30, 2004.

OnThe ~~June~~following 9,table ~~2003,~~sets ~~the Company entered into a joint venture with West~~forth ~~States Recycling, Inc. to form NewCo Tire & Axle L.L.C. (NewCo) to engage in~~ the ~~manufactured~~operating ~~housing~~data ~~axle~~of ~~and tire recycling business in Arizona, New Mexico, and Texas. As a result,~~ the ~~Company~~ ~~closed the Phoenix, Arizona location on June 30, 2003. The~~ Company ~~has~~as a ~~50%~~percentage ~~ownership~~of ~~interest in the joint venture and will receive 40% interest in future~~ net ~~profits. Concurrent~~sales ~~with~~for the ~~formation of the joint~~periods ~~venture,~~listed ~~the Company leases trucks and equipment to NewCo.~~below:

The Company sells accessories to manufactured home dealers and set-up contractors from its locations in Washington, California, and Idaho. As of August 1, 2003, accessory customers previously serviced by our Salem, Oregon location will be serviced from the Eugene, Oregon and Centralia, Washington locations. The major product lines are vinyl skirting, piers, and related products through the Company’s distribution channels which comprise approximately 650 dealers. The Company also sells vinyl siding to the site-built construction industry out of its Emmett, Idaho location.

	Three Months Ended				Nine Months Ended
	June 30, 2004		June 30, 2003		June 30, 2004		June 30, 2003
Axle and tire reconditioning	70.9	%	77.6	%	74.9	%	78.0	%
Manufactured housing accessories and siding	29.1		22.4		25.1		22.0
Gross margin	24.1		21.5		24.4		20.4
Selling expense	14.4		13.7		15.4		15.2
Administrative expense	8.6		6.2		8.4		6.7

~~Results of Operations~~9

~~The~~Net ~~following table sets forth the operating data of the Company as a percentage of net sales for the periods listed below:~~Sales

	Three Months Ended				Nine Months Ended
	June 30, 2003		June 30, 2002		June 30, 2003		June 30, 2002
Axle and tire reconditioning	77.6	%	75.0	%	78.0	%	76.6	%
Manufactured housing accessories and siding	22.4		25.0		22.0		23.4
Gross margin	21.5		20.3		20.4		20.9
Selling expense	13.7		14.2		15.2		15.9
Administrative expense	6.2		5.7		6.7		7.8

Net sales increased two percent or $103,000 for the three months ending June 30, 2004 compared to the same period a year ago. The Company closed its Arizona location in June of 2003, which contributed sales of $531,000 in the 2003 quarter. The three month comparison for sales from the remaining locations shows an increase of $634,000 or 14 percent.

Sales for the nine months ending June 30, 2004 decreased $72,000, or five percent, as compared to the same period in 2003. The Arizona location contributed $1,921,000 of sales during the first six months of fiscal year 2003 prior to being closed. Excluding the 2003 sales from Arizona, net sales increased 10 percent or $1,245,000. This increase in net sales of the remaining locations was primarily due to a higher volume of sales in both segments of business; during the nine month period ending June 30, 2004, axle and tire sales increased 10 percent while dealer and accessories sales increased 9 percent from the same period last year.

~~The~~Gross manufactured housing industry continues to be negatively impacted by more restrictive financing standards, high levels of repossessions and excess retail housing inventories. Manufactured housing shipments decreased 19 percent in the Company’s market area during the quarter ended June 30, 2003 compared to the same quarter in 2002 according to statistics from the National Conference of States on Building Codes and Standards. During the quarter ending June 30, 2003, the Company increased market share experiencing only an 8 percent decline in sales to $5,127,000 compared to $5,575,000 for the quarter ending June 30, 2002.Profit

The Company’s gross ~~margin~~profit increased ~~was~~$160,000 ~~21.5~~or 16 percent ~~for~~ during the ~~quarter~~three ~~ending~~months ended June 30, ~~2003~~ 2004 compared to ~~20.3 percent in~~ the same ~~quarter~~ inperiod ~~2002. The increase is due to~~ a ~~wider~~year ~~spread between purchase cost and selling price of axles and tires in~~ago. ~~the~~The ~~current~~Arizona ~~quarter~~location ~~compared~~contributed tonegative ~~the~~gross ~~same~~profit ~~quarter~~ in ~~2002. During~~ the ~~quarter~~2003 ~~ending June 30, 2002,~~three ~~gross~~month ~~margin~~period ~~was negatively impacted by regulatory requirements implemented in January~~ of ~~2002 resulting in increased new tire sales~~$19, ~~which typically generate lower margins than used tire sales~~000.

~~Selling~~Gross ~~and~~profit ~~general~~for ~~administrative~~the ~~expenses~~Company ~~decreased~~during the nine month period ending June 30, 2004 increased to $93423,000 ~~during~~or ~~the~~14 percent ~~quarter~~as compared to the same ~~quarter~~period in ~~fiscal year 2002~~2003. The ~~decrease~~negative ~~was~~gross aprofit generated ~~result~~by ~~of overall~~the ~~cost-cutting~~Arizona ~~measures~~facility ~~taken~~during ~~company~~the ~~wide~~nine month period in 2003 was $82,000.

~~Sales~~Gross ~~for~~profit ~~nine~~margin ~~months ended June 30, 2003~~increased ~~decreased~~to by24 ~~$262,000 or 1.8~~ percent asfor ~~compared~~both to the ~~nine~~three ~~months~~and ~~ended~~nine ~~June 30,~~month ~~2002~~periods ~~primarily~~in asfiscal aperiod ~~result~~ended June ~~of the industry market conditions. During the quarter ending December 31~~30, ~~2002 sales~~2004 ~~were~~compared ~~higher~~to ~~than~~22 ~~sales~~percent inand ~~the~~20 ~~comparable~~percent ~~quarter~~ in ~~fiscal year 2002 due to~~ the ~~elimination~~same of2003 ~~direct competition from a group of former employees and~~periods ~~shareholders~~due ~~known as the Bradley Group, pursuant~~ to anincreases ~~injunction that was granted~~ in ~~favor~~sales ofvolumes ~~the Company in January 2002 prohibiting all members~~ of the ~~Bradley~~ ~~Group~~higher ~~from~~margin ~~competing~~dealer ~~against the Company’s axle and tire business~~accessories products.

~~Gross margin decreased slightly~~Selling, .5General ~~percent for the nine months from the same period a year ago. Higher insurance~~ and ~~fuel costs were partially offset by higher~~ ~~selling prices in the second and third quarter this year.~~Administrative

Selling, ~~and~~ general and administrative expense ~~for~~ increased 18 percent, or $185,000, during the ~~nine~~three month ~~months~~period ending June 30, 2004 compared to the same period in 2003. The ~~decreased~~increase ~~$338~~for the nine month period ending June 30,~~000~~ as2004 compared to the same period a year ago~~. Legal~~ ~~expenses of~~was four percent, or $~~186~~128,000. ~~incurred~~The increases in ~~fiscal~~both ~~year~~period ~~2002~~comparisons ~~related~~were topartially a result of wage changes as well as bonus accruals during the ~~Bradley~~2004 ~~Group~~period ~~litigation~~that had not been ~~contributed~~accrued in June of 2003 due to the ~~decrease~~net loss. ~~The~~ ~~Company~~Other ~~expects~~factors contributing to ~~continue~~the increases include costs related to updating ~~see~~the ~~positive~~Company’s ~~results~~information ~~from~~systems ~~cost-cutting~~and ~~efforts~~accounting software, as well as inhigher selling expenses at the ~~next~~corporate ~~quarter~~level and at the Idaho and California locations attributable to efforts associated with improving the dealer accessories segment sales.

~~Liquidity and Capital Resources~~10

~~During~~Net the quarter ending June 30, 2003, the Company renewed a line of credit from Idaho Banking Company for $350,000. As of the quarter ended June 30, 2003, the Company has not borrowed on the line and is in compliance with the covenants. The Company expects that cash flow from operations, along with the line of credit, will be a sufficient source of liquidity to fund operations. The Company continues to maintain a strong cash position and manages and maintains tight controls of receivables.income

10Net income for the quarter ending June 30, 2004 was $110,000, a 53 percent increase compared to the same three month period in 2003. The joint venture, NewCo, began operating in June of 2003 generating only $12,000 of net income versus the $83,000 contributed to net income during the three months of operation in the 2004 quarter ended June 30.

~~Authorized~~Net ~~stock~~income offor the ~~company~~nine ~~consists~~month period ofended 10June 30,~~000~~ 2004 increased $301,000, ~~shares~~or of $.~~001~~07 per share, compared to ~~par~~the ~~value~~same ~~common~~period ~~stock~~a ~~and~~year ~~5,000,000~~ago ~~shares~~due to increased sales of ~~$.001~~higher ~~par~~margin ~~value~~accessory products, ~~preferred~~nonoperating income from the joint venture, interest related to notes ~~stock~~receivable, and rental income. NoThe Company’s ~~shares~~Arizona location had incurred losses of ~~preferred~~$77,000 ~~stock~~prior to closing in ~~have~~June ~~been~~2003, ~~issued~~which also contributed to the increase in net income for the nine month 2004 period.

~~Item 3.~~ Liquidity ~~Quantitative~~ and ~~Qualitative~~Capital ~~Disclosures about Market Risk~~Resources

The Company’s isdecrease ~~not~~in ~~required~~net cash for the nine months ended June 30, 2004 was $547,000. Operating activities for the period used cash flow of $457,000 compared to ~~provide~~$139,000 ~~this~~of ~~information~~cash ~~pursuant~~used for operations in the same nine month period a year ago. The change from period to period is primarily ~~Item~~due ~~305(e)~~to increases in the housing and accessories inventory levels as a result of adding ~~Regulation~~new ~~S-K~~product lines and changing suppliers of certain tie down accessories.

~~Item~~Net 4cash used by investing activities was $90,000 during the nine months ended June 30, 2004 while investing activities during the same period in 2003 used cash of $18,000. During the ~~Controls~~first and ~~Procedures~~second quarters of 2004, the Company invested approximately $122,000 in leasehold improvements made to the Chehalis, Washington site and the Eugene, Oregon facility. The Company also invested approximately $103,000 during the nine month period in trucks, trailers and equipment primarily to assist with increasing sales volumes. The Company also invested $27,000 in necessary upgrades to the information system and accounting software during June of 2004. The additions to property, plant and equipment were offset by amounts received as pay off of notes receivables.

The Company ~~maintains~~expects ~~disclosure controls and~~that ~~procedures~~cash ~~that~~flow ~~are~~from ~~designed~~operations tocombined ~~ensure~~with ~~that~~the ~~information~~line ~~required~~of tocredit will be ~~disclosed~~ ina ~~the~~sufficient source ~~Company’s~~of ~~Securities~~liquidity ~~Exchange~~to ~~Act~~fund ~~reports is recorded,~~operations. ~~processed,~~The ~~summarized~~Company ~~and~~has ~~reported~~a ~~within~~$350,000 ~~the~~revolving ~~time~~credit ~~periods~~facility ~~specified~~with ina ~~the~~financial ~~SEC’s~~institution ~~rules~~secured ~~and~~by ~~forms,~~receivables and ~~that~~inventory. The ~~such~~interest ~~information~~rate ison ~~accumulated and communicated to~~ the ~~Company’s~~credit ~~management,~~line ~~including~~is ~~its Chief Executive Officer~~the ~~and~~prime ~~Chief~~rate ~~Financial~~plus ~~Officer,~~one ~~as appropriate, to allow timely decisions regarding required disclosure~~percent. ~~Management~~ ~~recognized~~As ~~that~~of ~~any~~June ~~controls and procedures~~30, ~~no matter how well designed and operated~~2004, ~~can~~the ~~provide~~Company ~~only~~has ~~reasonable~~not ~~assurance of achieving~~borrowed on the ~~desired~~line ~~control objectives, as ours are designed to do,~~ and ~~management necessarily~~is ~~was required to apply its judgement~~ in ~~evaluating~~compliance ~~the~~with ~~cost-benefit relationship~~all ofloan ~~possible controls and procedures~~covenants.

~~During the 90-day period prior to the date of~~Item this report, an evaluation was performed under the supervision and with the participation of our Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures3. ~~The~~Quantitative ~~Chief Exectuve Officer~~ and ~~the Chief Financial Officer~~Qualitative ~~concluded~~Disclosures ~~that,~~about ~~based~~Market upon the evaluation of management, the Company’s disclosure controls and procedures were effective. Subsequent to the date of this evaluation, there have been no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls, and no corrective actions have been needed or taken with regard to significant deficiencies or material weaknesses in such controls.Risk

~~PART~~The Company is not required to ~~II. OTHER~~provide ~~INFORMATION~~this information pursuant to Item 305(e) of Regulation S-K.

Item 1 4. Controls ~~Legal~~and ~~Proceedings~~Procedures

~~Nothing~~The Company maintains disclosure controls and procedures that are designed to ~~report.~~ensure that information required to be disclosed in the Company’s Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate,

~~Item 2. Changes in Securities~~11

~~Nothing~~to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to ~~report~~do, and management necessarily is required to apply its judgement in evaluating the cost-benefit relationship of possible controls and procedures.

~~Item~~During 3the 90-day period prior to the date of this report, an evaluation was performed under the supervision and with the participation of our Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. The ~~Defaults~~Chief ~~Upon~~Executive ~~Senior~~Officer ~~Securities~~and the Chief Financial Officer concluded that, based upon the evaluation of management, the Company’s disclosure controls and procedures were effective. Subsequent to the date of this evaluation, there have been no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls, and no corrective actions have been needed or taken with regard to significant deficiencies or material weaknesses in such controls.

~~Nothing~~PART toII. OTHER ~~report~~INFORMATION

11Item 1. Legal Proceedings

~~Item~~Nothing ~~4. Submission of Matters~~ to ~~a Vote of Security Holders~~report.

~~Nothing~~Item 2. toChanges ~~report~~in Securities

~~Item~~Nothing ~~5. Other Information~~to report

~~Nothing~~Item to3. Defaults ~~report~~Upon Senior Securities

~~Item~~Nothing ~~6. Exhibits~~to ~~and Reports on Form 8-K~~report

(a)		Exhibit 31.1 Certification Pursuant to 18 U.S.C Section 1350.
		Exhibit 31.2 Certification Pursuant to 18 U.S.C. Section 1350.
		Exhibit 32.1 Certification Pursuant to 18 U.S.C. Section 1350.
(b)		No reports on Form 8-K were filed during the quarter ended June 30, 2003.

Item 4. Submission of Matters to a Vote of Security Holders

~~SIGNATURES~~Nothing to report

~~Pursuant to~~Item ~~the requirements of the Securities Exchange Act of 1934, the registrant has~~5. ~~caused~~Other ~~this report to be signed on its behalf by the undersigned hereunto duly authorized.~~Information

On November 11, 2003, the Company adopted an Executive Officers’ Code of Ethics pursuant to Item 406 of Regulations S-K. The Code of Ethics is available free of charge by calling 1-800-458-3555.

12Item 6. Exhibits and Reports on Form 8-K

(a) Exhibit 31.1 Certification Pursuant to 18 U.S.C Section 1350.

Exhibit 31.2 Certification Pursuant to 18 U.S.C. Section 1350.

Exhibit 32.1 Certification Pursuant to 18 U.S.C. Section 1350.

(b) On May 17, 2004, the Company filed Form 8-K for Item 4, Changes in Registrant’s Certifying Accountant, to announce that the Company’s Audit Committee engaged Moss

Adams LLP as independent auditor, replacing Balukoff Lindstrom & Co., effective May 11, 2004.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	T.J.T., INC.
	Registrant

Date: August 16, 2004	By:	/s/Larry B. Prescott
	Larry B. Prescott, Senior Vice President and Chief Financial Officer

T.J.T., INC.

Registrant

August 14, 2003

/s/Larry B. Prescott

Larry B. Prescott, Senior Vice President and Chief Financial Officer

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