UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

[XFORM 10-Q] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2018

Commission file numberFile Number1-3647

J.W. Mays, Inc.

(Exact nameName of registrantRegistrant as specifiedSpecified in its charter)Charter)

(Registrant's telephone number, including area code)718-624-7400         (718) 624-7400         
Registrant’s Telephone Number, Including Area Code

Not Applicable
(Former name, former addressName, Former Address and former fiscal year,Former Fiscal Year, if changed since last report)Changed Since Last Report

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 90 days.   
Yes  X  days.Yes ☒     No .☐

Indicate by check mark whether the 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  .Yes ☒     No .☐

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Item 2.

J. W. MAYS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and ResultsandResults of Operations should be read in conjunction with our financial statements and related notes thereto contained in this report. In this discussion,the words “Company”, “we”, “our” and “us” refer to J.W. Mays, Inc. and subsidiaries.

Forward Looking Statements:

The following can be interpreted as including forward looking statements under the Private Securities Litigation Reform Act of 1995. The words “outlook”, “intend”, “plans”, “efforts”, “anticipates”, “believes”, “expects” or words of similar import typically identifytypicallyidentify such statements. Various important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are identified under the heading “Cautionary Statement Regarding Forward-Looking Statements”below. Our actual results may vary significantly from the results contemplated by these forward-looking statements based on a number of factors including, but not limited to, availability of labor, marketing success, competitive conditions and the change in economic conditions of the various markets we serve.

Critical Accounting Policies and Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. We believe the critical accounting policies in Note 1 to the Condensed Consolidated Financial Statements disclose our more significant judgments and estimates used in the preparation of our financial statements. Actual results may differ from these estimates under different assumptions and conditions. (See Note 1 on pages 7 through 9 to the Condensed Consolidated Financial Statements herein and Note 1 on pages 9 through 12 to the Consolidated Financial Statements in the Annual Report to Shareholders for the fiscal year ended July 31, 2017)2018).

Results of Operations:

Three months ended April 30, 20182019 compared to the three months ended April 30, 2017:2018:

In the three months ended April 30, 2019, the Company reported net income of $655,935, or $.32 per share. In the comparable three months ended April 30, 2018, the Company reported net income of $318,172, or $.16 per share. In the comparable three months ended April 30, 2017, the Company reported net income of $606,234, or $.30 per share.

Revenues in the current three months decreasedincreased to $4,854,910$5,099,988 from $4,952,454$4,854,910 in the comparable 20172018 three months primarily due to the decrease in revenue to temporarily vacate a lease in the 2017 three months, partially offset by increased rental income from existing tenants and one new office tenant attenantsand a real estate tax refund from the Company’s Jowein building in Brooklyn,Company’sMassapequa, New York.York property.

Real estate operating expenses in the current three months increaseddecreased to $2,918,858$2,844,624 from $2,512,506$2,918,858 in the comparable 20172018 three months primarily due to decreases in maintenance costs, partially offset by increases in real estate taxespayroll costs and maintenance costs.leasing commission expense.

Administrative and general expenses in the current three months decreasedincreased to $1,062,316$1,135,750 from $1,092,032$1,062,316 in the comparable 20172018 three months primarily due to decreasesincreases in payroll costs, pension costs and legal and professional costs and pension costs.

Depreciation expense in the current three months increased to $443,697$474,761 from $423,791$443,697 in the comparable 20172018 three months primarily due to improvements in the Jowein building in Brooklyn, Jamaica and Fishkill, New York.York buildings.

InterestInvestment income exceeded interest expense exceeded investment income in the current three months by $28,867$281,082 and interest expense exceeded investment income by $8,891$28,867 in the comparable 20172018 three months. The increase was primarily due to a decrease in investment income partially offset by scheduled repayment of debt.

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Nine months ended April 30, 20182019 compared to the nine months ended April 30, 2017:2018:

In the nine months ended April 30, 2019, the Company reported net income of $870,701, or $.43 per share. In the comparable nine months ended April 30, 2018, the Company reported net income of $3,167,496, or $1.57 per share. In the comparable nine months ended April 30, 2017, the Company reported net income of $1,391,821, or $.69 per share. The increasedecrease was primarily due to the enactment of the U.SU.S. Tax Act on December 22, 2017. These changes required an adjustment to our deferred tax assets and liabilities to the lower federal rates resulting in an estimated net tax benefit of approximately $2.4 million.million in the nine months ended April 30, 2018.

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Revenues in the current nine months decreasedincreased to $14,431,671$15,235,939 from $14,560,242$14,431,671 in the comparable 20172018 nine months primarily due to the decrease in revenue to temporarily vacate a lease in the 2017 nine months, partially offset by increased rental income from existing tenants and one new office tenant atanda real estate tax refund from the Company’s Jowein building in Brooklyn,Levittownand Massapequa, New York.

The recovery of real estate taxes in the 2017 nine months in the amount of $10,952, net of legal expenses, represents recovery of prior years’ real estate taxes from one of the Company’sYork properties. The comparable 2018 nine months did not have a recovery of real estate taxes.

Real estate operating expenses in the current nine months increased to $8,491,805$8,591,284 from $7,735,755$8,491,805 in the comparable 20172018 nine months primarily due to increases in real estate taxes, payroll costs, leasing commission expense and maintenance costs,rent expense partially offset by a decrease in utilitymaintenance costs, and license and permitutility costs.

Administrative and general expenses in the current nine months increased to $3,433,154$4,184,557 from $3,381,034$3,433,154 in the comparable 20172018 nine months primarily due to the settlement of litigation cost in the amount of $635,000 (see Note 12), increases in insurancepayroll costs directors fees and pension costs.

Depreciation expense in the current nine months increased to $1,311,386$1,414,045 from $1,253,091$1,311,386 in the comparable 20172018 nine months primarily due to improvements in the Jowein building in Brooklyn, Jamaica and Fishkill, New York.York buildings.

InterestInvestment income exceeded interest expense exceeded investment income in the current nine months by $101,830$206,648 and interest expense exceeded investment income by $92,541$101,830 in the comparable 20172018 nine months. The increase was primarily due to interest on litigation (see Note 13) partially offset by increased investment income and scheduled repayment of debt.

As explained above, the enactment of the U.SU.S. Tax Act required an adjustment to our deferred tax assets and liabilities for the nine months ended April 30, 2018 to the lower federal rates resulting in an estimated net federal tax benefit of approximately $2.4 million. Income taxes provided (benefit) for the current nine months changed to a benefit ofended April 30, 2018 was approximately $2.1 million from an expense of approximately $.7 million in the comparable 2017 nine months.million.

Liquidity and Capital Resources:

Management considers current working capital and borrowing capabilities adequate to cover the Company’s planned operating and capital requirements. The Company’s cash and cash equivalents amounted to $6,478,050$5,330,262 at April 30, 2018.2019. The Company is in the process of refinancing its loan with a bank in the amount of $5,341,439 for an additional five years.

In March 2017, the Company leased 7,700 square feet to a medical facility at its Nine Bond Street Brooklyn, New York building, for a term of ten years with two five year option periods. To accommodate this tenant, an existing tenant surrendered 400 square feet of retail space. The cost of renovations for this tenant will be approximately $400,000 and brokerage commissions were $216,052. The tenant is anticipated to take occupancy and commence payment of rent in late 2018.the fall of 2019.

In August, 2017,2018, the Company leased 1,423entered into a lease agreement with an existing office tenant for an additional 1,849 square feet of retail space to an existing tenant for a period of 18.5 yearsuntil June 30, 2022 at the Company’sits Nine Bond Street Brooklyn, New York building. Rent and occupancy is anticipated to occur in late 2018.

In September, 2017, an officeOctober 2018, the Company extended a lease with a retail tenant who occupies 2,00047,100 square feet at the Company’sits Jamaica, New York building vacated the space. The loss in annual rent will be $58,000.

In September, 2017, the Company leased 5,167 square feet of retail space to a tenant at the Company’s Nine Bond Street, Brooklyn, New York building for a period of ten years effective January, 2018.to expire on May 31, 2029.

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In November, 2017,October 2018, the Company extended the lease with its landlord, who is a related party, at its Jamaica, New York building for a period of one year and ten months to expire on May 31, 2029.

In October 2018, the Company extended a lease with the existing dentalan office tenant who occupies 38,109 square feet at its Jamaica, New York building for an additional four years expiring November 30, 2022.

In October 2018, the Company extended a lease with one of the Company’s landlords, which expires in April 2021 for anadditional ten years to expire in April 2031 at its Nine Bond Street Brooklyn, New York building.

In January 2019, the Company extended a lease with an office tenant who occupies 700 square feet at its Nine Bond Street Brooklyn, New York building, for an additional tenfive years expiring January 15, 2028.

In November, 2017, the Company leased an additional 3,005 square feet to an existing tenant for warehouse space at its Jowein building in Brooklyn, New York.31, 2024.

In March 2018, the Company leased the 20,000 square feet of area available at its Massapequa, New York property to a restaurant until May 2030. Rent is anticipated to commence in late 2018.

In April 2018,2019, the Company extended a lease with an existing tenant who occupies 84,000 square feet for warehouse space at the Company’s Circleville, Ohio building for an additional three years expiring on October 31, 2021.

In May 2018, the Company extended a lease with an existing tenant who occupies 3,300 square feet of office space at the Company’s Jowein building in Brooklyn, New York for an additional five years expiring on June 30, 2023.

In May 2018, an office tenant who occupies 3,08013,451 square feet at the Company’sits Nine Bond Street Brooklyn, New York building informedwhose lease expires July 31, 2021, for an additional five years expiring July 31, 2026.

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The tenant who leased 20,000 square feet of area at the Company that it intendsCompany’s Massapequa, New York property to vacate the premisesopen a restaurant hadtheir lease terminated in October 2018.April 2019 for non-payment of rent. The tenant’s lease commenced in September 2018 and rent was supposed to begin in January 2019. The annual loss in rent will be $112,000.would have been $72,000.

Cash Flows From Operating Activities:

Deferred Expenses: The Company had an additional $521,592 for brokerage commissions incurred due to a tenant extendingtheir lease for an additional ten years at the Company’s Jamaica, New York building.

Payroll and Other Accrued Liabilities: The Company had a balance due at April 30, 20182019 for brokerage commissions of $134,346. Brokerage commissions in the amount of $188,191 were paid in the nine months ended April 30, 2018.$503,884.

Provision (Benefit) for Deferred Income Taxes: Enactment of the U.SU.S. Tax Act on December 22, 2017, as explained above, resulted in an estimated net federal tax benefit of approximately $2.4 million.million in the three month period ended April 30, 2018. Although the adjustment increased the Company’s net income, it did not increase cash. To reconcile net income to net cash providedcashprovided by operating activities, provision (benefit) for deferred income taxes changed towas a benefit of approximately $2.1 million for the current nine months ended April 30, 2018 compared to an expense of approximately $.7$.4 million for the comparable 20172019 nine months.

Cash Flows From Investing Activities:

The Company had expenditures for elevator upgrade work in the amount of $227,672$85,274 for the nine months ended April 30, 2018,2019for boiler upgrades at the Company’s Nine BondNineBond Street building in Brooklyn, New York building.York. The total cost of the project was $627,333, and it was completed in October, 2017. The Company also had expenditures of $45,006$190,091 for a newrenovations for an existing tenant. The total cost of the project will be approximately $400,000 of which $290,154 has been paid,$300,000 and is expected to bewas completed in late 2018.May 2019. The Company also had expenditures of $282,975$194,079 for various other construction projects.

The Company had expendituresfaçade work and $180,120 for electrical work in the amount of $107,661 for the nine months ended April 30, 2018, at its Jowein, Brooklyn, New York building. The work was completed in January, 2018.stairwell work.

The Company had expenditures for elevator upgrade work in the amount of $551,901$85,061 for the nine months ended April 30, 2018, 2019,at the Company’s Jamaica, New York building. The total cost of the project will be approximately $800,000,projectwas $864,460, and is anticipated to bewas completed in August, 2018. The Company had expenditures of $278,184$592,671 for renovation work for twoan existing tenants. Work wastenant. The total cost of the project is estimated to be approximately $700,000, and is anticipated to be completed in March, 2018. The Company also had expenditures of $50,470 for various other construction projects.July 2019.

The Company had expenditures for parking lot lights in the amount of $59,559$111,698 for the nine months ended April 30, 2018,2019, at its Fishkill, New York building. The total cost was $168,675$234,862 and was completed in MayAugust 2018. The Company also had expenditures of $52,810$397,597 for pavingwindows. The cost of the parking lot. The total costproject was $175,000$1,026,364 and was completed in MayNovember 2018. The Company also had expenditures of $174,828$657,013 for four new elevators. The cost will be approximately $1,800,000 and is anticipated to be completed in the fall of 2019. The Company also had expenditures of $123,396 for a new lobby. The cost will be approximately $1,500,000 and is anticipated to be completed in September 2019. The Company also had expenditures of $65,171 for various other construction projects.

-18-The Company had expenditures in the amount of $105,369 for stairwell work and $190,330 for steel work at its Jowein building in Brooklyn, New York. The Company also had expenditures of $60,531 for a new HVAC system for an existing tenant. The total cost of the system will be approximately $300,000 and is anticipated to be completed in June 2019.

Cautionary Statement Regarding Forward-Looking Statements:

This section,Management’s Discussion and Analysis of Financial Condition and Results of Operations, other sectionsothersections of this Report on Form 10-Q and other reports and verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, our expenses and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors listed below, could cause business conditions and our results to differ materially from what is contained in forward-looking statements:

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Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to review any additional disclosures we make in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and any Form 8-K reports filed with the United States Securities and Exchange Commission.

Item 3. Quantitative and Qualitative Disclosures About Market Risk:

The Company uses fixed-rate debt to finance its capital requirements. These transactions do not expose the Company to market risk related to changes in interest rates. The Company does not use derivative financial instruments. At April 30, 2018,2019, the Company had fixed-rate debt of $5,508,441.$5,341,439.

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Item 4. Controls and Procedures:

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective and provide reasonable assurance that the information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported accurately and within the time periods specifiedperiodsspecified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are likely to materially affect, our internal control over financial reporting.

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Part II - Other Information

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