SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the ~~Three~~Six Months Ended ~~March~~June 3130, 2013

Commission File No. 0-8488

TWENTY SERVICES, INC.

(Exact name of Registrant as specified in its Charter)


ALABAMA		63-0372577
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer ID No.)

20 Cropwell Drive, Suite 100		Pell City, Alabama 35128
(Address or principal executive offices)		(City, State, Zip)

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

~~Securities~~Former ~~registered~~name, ~~pursuant~~former toaddress, ~~Section 12(g)~~and offormer ~~the~~fiscal ~~Act;~~year, if changed since last report.

Title of each class: COMMON STOCK 7% Cumulative Preferred Stock *

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 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 ¨

Indicate by check mark whether the ~~registrant~~Registrant has submitted electronically and posted on its corporate Web site, if any, every 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). Yes ¨x No x¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ~~Yes ¨ No x~~

YES ¨ NO x

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the period of this report.

Par Value $0.10 per share 1,081,327 shares

As of ~~March~~June 3130, 2013, the Registrant had 1,283,068 issued and 1,081,327 outstanding shares of common stock, par value of $0.10 per share, and as of ~~March~~ June 3130, 2013, 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 $4,~~483~~565,~~662~~631. 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.

TWENTY SERVICES, INC.

BALANCE ~~SHEET~~SHEETS

	March 31,2013			December 31,2012
	June 30,2013			December 31,2012
ASSETS
Cash and temporary investment	$	59,189		$	90,221
Cash and cash equivalents	$	93,618		$	90,221
Marketable securities		5,~~065~~111,~~704~~666			4,440,300
Other assets		22,553			22,553
Total assets	$	5,~~147~~227,~~446~~837		$	4,553,074
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	4939,~~295~~855		$	48,648
Accrued dividends payable		26,786			—
Deferred tax liability		589,894			375,138
Deferred tax liability		555,111			375,138
Total liabilities		629,749			423,786
Total liabilities		631,192			423,786
Stockholders’ equity:
Preferred stock, Cumulative $0.10 par value, 7% cumulative 2,500,000 shares authorized, 505,110 shares issued and outstanding		50,511			50,511
Preferred stock, Cumulative $0.10 par value, 7% cumulative 2,500,000 shares authorized, 505,110 shares issued		50,511			50,511
Common stock, $.10 par value, 25,000,000 shares authorized, 1,283,068 issued and outstanding		128,307			128,307
Common stock, $0.10 par value, 25,000,000 shares authorized, 1,283,068 shares issued		128,307			128,307
Additional paid-in capital		1,716,074			1,716,074
Retained earnings		1,~~068~~067,~~449~~824			1,126,837
Accumulated other comprehensive income		12,~~943~~025,~~056~~650			1,497,626
Less investment in Twenty Services Holding		(60,000	)		(60,000	)
Common treasury stock, 201,741 in 2013 and 2012 respectively		(312,224	)		(312,224	)
Common treasury stock – 201,741 in 2013 and 2012 respectively		(312,224	)		(312,224	)
Preferred treasury stock, , 71,243 and 70,941 in 2013 and 2012 respectively		(17,919	)		( 17,843	)
Preferred Treasury, 71,788 in 2013 and 70,941 in 2012 respectively		(18,055	)		(17,843	)
Net stockholders’ equity		4,~~516~~598,~~254~~088			4,129,288
Total liabilities and stockholders’ equity	$	5,~~147~~227,~~446~~837		$	4,553,074

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TWENTY SERVICES, INC.

~~Statements~~STATEMENTS ofOF ~~Income~~OPERATIONS ~~and~~AND ~~Comprehensive~~COMPREHENSIVE ~~Income~~INCOME

	Three Months EndedMarch 31,
	Three months ended						Six months ended
	2013			2012
	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Revenues
Revenue
Interest	$	267,~~416~~543		$	278,~~480~~320		$	33,959		$	35,800
Dividends		2,~~961~~892			13,~~975~~242			5,852			5,216
Total Revenue		29,377			29,455
Total revenue		10,435			11,562			39,811			41,016
Operating Expenses
General and Administrative		60,981			42,872
General and administrative		22,925			31,556			83,905			74,428
Loss Before Income Taxes		(31,604	)		(13,417	)
Operating loss		(12,490	)		(19,994	)		(44,094	)		(33,412	)
Income Tax Benefits (Expense)		—			—
Other Income
Net Loss	$	(31,604	)	$	(13,417	)
Gain on sale of marketable securities		11,865			528			11,865			528
Other Comprehensive Income (net of tax)
Net Loss		(625	)		(19,466	)		(32,229	)		(32,884	)
Unrealized gains on marketable securities	$	625,404		$	590,419
Other Comprehensive Income (net of tax)
Income tax related to other comprehensive income		(179,973	)		(190,368	)
Unrealized gain (loss) on marketable securities		129,241			(393,816	)		754,645			196,603
Other comprehensive income, after tax	$	445,431		$	400,051
Less: reclassification for net gains included in net income		(11,865	)		(528	)		(11,865	)		(528	)
Weighted average number of shares outstanding		1,081,327			1,083,196
Other comprehensive income		117,376			(394,344	)		742,780			196,075
Loss Per Common Share *	$	(.05	)	$	(.04	)
Income tax related to other comprehensive income		(34,783	)		29,283			(214,756	)		(56,890	)
Other comprehensive income (loss), after tax		82,593			(365,061	)		528,024			139,185
Comprehensive Income (Loss)	$	81,968		$	(384,527	)	$	495,795		$	106,301
Weighted average number of shares outstanding		1,081,327			1,082,920			1,081,327			1,083,066
Loss Per Common *	$	(0.00	)	$	(0.02	)	$	(0.06	)	$	(0.06	)

* After giving effect on a pro-rata basis to ~~anticipated~~ preferred dividends of $0.07 per share per annum on ~~505~~433,~~110~~322 shares outstanding.

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TWENTY SERVICES, INC.

CONDENSED STATEMENT OF CASH FLOWS

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
	2013			2012			2013			2012
Cash flows from operating activities:
Interest and dividends received	$	2910,~~377~~434		$	2911,~~455~~561		$	39,811		$	41,016
Cash paid employees and supplier		(60,333	)		(43,068	)
Cash paid to employees and suppliers		(27,020	)		(35,951	)		(87,353	)		(79,019	)
Net cash used in operating activities		(30,956	)		(13,613	)
Net cash used by operating activities		(16,586	)		(24,390	)		(47,542	)		(38,003	)
Cash flows from investing activities
Cash flows from financing and investing activities:
Purchase of Preferred Stock for Treasury		(76	)		(818	)
Net sale of securities		75.806			26,561			75,806			26,561
Net cash used by investing activities		(76	)		(818	)
Dividends paid on Preferred Stock		(24,655	)		(20,015	)		(24,655	)		(20,015	)
Net decrease in cash		(31,032	)		(14,431	)
Purchase of Preferred Stock for Treasury		(136	)		(605	)		(212	)		(1,423	)
Cash and temporary investments, beginning of period		90,221			104,672
Net cash provided by investing activities		51,015			5,941			50,939			5,123
Cash and temporary investments, end of period	$	59,189		$	90,241
Net increase (decrease) in cash		34,429			(18,449	)		3,397			(32,880	)
Cash and temporary investments, beginning of period		59,189			90,241			90,221			104,672
Cash and temporary investments, end of period	$	93,618		$	71,792		$	93,618		$	71,792

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MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

During the three months ended March 31, 2013 the Registrant’s liquidity remained stable. The Company has neither 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 liabilities to generate liquidity.

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

RESULTS OF OPERATIONS

The Registrant reported a ~~net~~ loss of $~~31,604~~625 for the three months ended ~~March~~June 3130, 2013, as compared to ~~the~~a ~~net~~loss of $19,466 for the corresponding 2012 period. The Registrant reported a loss of $1332,~~417~~229 for the six months ended June 30, 2013 as compared to a loss of $32,884 for the corresponding 2012 period.

REVENUES

Revenues for the three months ended ~~March~~June 3130, 2013 of $10,435 were comparable to $2911,~~377~~562 for the corresponding 2012 period. Revenues for the six months ended June 30, 2013 of $39,811 were comparable to $2941,~~455~~016 for the corresponding 2012 period.

EXPENSES

General and administrative expenses ~~increased~~decreased from $4231,~~872~~556 in 2012 to $6022,~~981~~925 for the corresponding three months period ended June 30, 2013. General and administrative expenses increased to $83,905 for the six months ended June 30, 2013 from $74,428 for the corresponding 2012 period. The above financial statements include all the adjustments, which in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting principles. All adjustments are of a normal recurring nature.

The ~~above~~Company ~~financial~~anticipates ~~statements~~that ~~include~~its ~~all the adjustments, which in the opinion of Management, are necessary for a fair~~investing ~~presentation~~activities ofwill ~~such~~generate ~~financial~~net ~~information~~cash inflows ~~conformity~~and ~~with~~that ~~generally~~its ~~accepted~~operating ~~accounting~~and ~~principles.~~financing ~~All~~activities ~~adjustments~~will ~~are~~continue ofto ause ~~normal~~cash ~~recurring nature~~flows.

COMPREHENSIVE INCOME

Comprehensive income ~~net of tax~~ totaled $~~413~~81,~~827~~968 for the ~~first~~second quarter of 2013 as compared to a loss of $~~386~~384,~~634~~527 in 2012. For the six months ended June 30, 2013 comprehensive income totaled $495,795 versus comprehensive income of $106,301 for the comparable period ended June 30, 2012.

FAIR VALUE MEASUREMENTS

Accounting Principles emphasize 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, Accounting Principles establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the ~~report~~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 1 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.

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	Fair Value Measurements at Reporting Date Using
Description	Quoted Prices in ActiveMarkets for IdenticalAssets(Level l)0306/3130/~~2013~~2012		Significant OtherObservableInputs(Level 2)		~~SignificantUnobservableInputs~~SignificantUnobservable Inputs(Level 3)
Marketable securities	$	3,~~675~~862,~~959~~415	$	1,~~389~~249,~~745~~251	$	.00
Total	$	3,~~675~~862,~~959~~415	$	1,~~389~~249,~~745~~251	$	.00

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~~the Securities Exchange Act of 1934 (“Exchange Act”).

Twenty Services, Inc. has established processes to ensure appropriate disclosure controls and procedures are maintained. These controls and procedures as defined by the Securities and Exchange Commission (“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 Principal Executive Officer (“PEO”), who is also the Chief Financial Officer (“CFO”) 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 PEO reviews and ~~makes~~make various certifications regarding the accuracy of Twenty Services, Inc.’s 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.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES:

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~~Quarterly Report on Form 10-Q , the Company’s management evaluated, with the participation of the Company’s Principal Executive Officer (“PEO”), 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 ~~his~~their evaluation of these disclosure controls and procedures, the Company’s Principal Executive Officer ~~has~~(“PEO”) has 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 reports the Company files or submits under the Exchange Act.

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

The ~~management~~Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rule of 13a-15(f). The Company’s internal control system is designed to provide reasonable assurance to the Company’ management and the board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined effective can provide only reasonable assurance with respect to financial ~~statement~~ statement preparation and presentation. Also projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of ~~March~~June 3130, 2013 based upon criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management determined that we maintained effective internal control over financial reporting as of ~~March~~June 3130, 2013 based on those criteria.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended ~~March~~June 3130, 2013 that have materially affected, or are reasonable likely to materially affect, the Company’s internal control over financial reporting.

The above financial statements include all the adjustments, which in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting principles. All adjustments are of a normal recurring nature.

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PART II

OTHER INFORMATION


Item 1. Legal Proceedings			NONE

Item 2. Changes in Securities			NONE

Item 3. Defaults Upon Senior Securities			NONE

Item 4. Submission of Matters to a Vote of Securities Holders			NONE

Item 5. Other Information:			NONE

On February 28, 2013, the Board of Directors of the Registrant declared a cash dividend of SEVEN CENTS ($0.07) PER SHARE, payable March 28, 2013 to holders of record at February 28, 2013 of the Series A-1980, Series a-1981, Series a-1982 and Series A-1985 Preferred Stock, which dividend relates to the year ended December 31, 2012. On March 28, 2013, the dividend so declared was accrued in the amount of $26,786 and paid subsequent to March 31, 2013.

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

Exhibits:

31.1		SECTION 302 PEO/CFO CERTIFICATION
31.2		SECTION 302 VP CERTIFICATION
32.1		SECTION 906 PEO/CFO 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
101-PRE		XBRL – Taxonomy Extension Presentation Linkbase

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TWENTY SERVICES, INC.

SIGNATURES

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

Date: May 8, 2013		/s/ David J. Noble
Date: July 26, 2013	/s/ David J. Noble
	David J. Noble	~~David J. Noble~~
		Chairman/Director Principal Executive Officer and Chief Financial Officer
	Chairman/Director Principal Executive Officer/Chief Financial Officer
Date: May 8, 2013		/s/ Shirley B. Whitaker
Date: July 26, 2013	/s/ Shirley B. Whitaker
	Shirley B. Whitaker	~~Shirley B. Whitaker~~
		Vice-President
	Vice President

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Large accelerated filer

Accelerated filer

Non-accelerated filer

¨ (Do not check if a smaller reporting company)

Smaller reporting company

Filing Compare · TWENTY SERVICES INC