SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

OF THE SECURITIES EXCHANGE ACT OF 1934

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2012~~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

~~Former~~Securities ~~name,~~registered ~~former~~pursuant ~~address,~~to ~~and~~Section 12(g) ~~former~~of ~~fiscal~~the ~~year,~~Act; ~~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

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 31, 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 31, 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 $4,483,662. 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 ~~SHEETS~~SHEET

(Unaudited)


	March 31, 2013			December 31, 2012
ASSETS
Cash and temporary investment	$	59,189		$	90,221
Marketable securities		5,065,704			4,440,300
Other assets		22,553			22,553

Total assets	$	5,147,446		$	4,553,074

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	49,295		$	48,648
Accrued dividends payable		26,786			—
Deferred tax liability		555,111			375,138

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
Common stock, $.10 par value, 25,000,000 shares authorized, 1,283,068 issued and outstanding		128,307			128,307
Additional paid-in capital		1,716,074			1,716,074
Retained earnings		1,068,449			1,126,837
Accumulated other comprehensive income		1,943,056			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	)
Preferred treasury stock, , 71,243 and 70,941 in 2013 and 2012 respectively		(17,919	)		( 17,843	)

Net stockholders’ equity		4,516,254			4,129,288

Total liabilities and stockholders’ equity	$	5,147,446		$	4,553,074

	September 30,2012			December 31,2011
ASSETS
Cash and cash equivalents	$	77,836		$	104,672
Marketable securities		4,293,844			3,930,601
Other assets		22,553			22,553
Total assets	$	4,394,233		$	4,057,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	90,955		$	69,962
Deferred tax liability		356,474			237,759
Total liabilities		447,429			307,721
Stockholders’ equity:
Preferred stock, Cumulative $0.10 par value, 7% cumulative 2,500,000 shares authorized, 505,110 shares issued		50,511			50,511
Common stock, $0.10 par value, 25,000,000 shares authorized, 1,283,068 issued		128,307			128,307
Additional paid-in capital		1,716,074			1,716,074
Retained earnings		1,072,055			1,114,595
Accumulated other comprehensive income		1,369,834			1,125,306
Less investment in Twenty Services Holding		(60,000	)		(60,000	)
Treasury Stock		(329,977	)		(324,687	)
Total stockholders’ equity		3,946,804			3,750,105
Total liabilities and stockholders’ equity	$	4,394,233		$	4,057,826

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TWENTY SERVICES, INC.

~~STATEMENTS~~Statements OFof ~~OPERATIONS~~Income ~~AND~~and ~~COMPREHENSIVE~~Comprehensive ~~INCOME~~Income ~~(LOSS)~~

(Unaudited)


	Three Months Ended March 31,
	2013			2012
Revenues
Interest	$	26,416		$	27,480
Dividends		2,961			1,975

Total Revenue		29,377			29,455
Operating Expenses
General and Administrative		60,981			42,872

Loss Before Income Taxes		(31,604	)		(13,417	)
Income Tax Benefits (Expense)		—			—

Net Loss	$	(31,604	)	$	(13,417	)

Other Comprehensive Income (net of tax)
Unrealized gains on marketable securities	$	625,404		$	590,419
Income tax related to other comprehensive income		(179,973	)		(190,368	)

Other comprehensive income, after tax	$	445,431		$	400,051

Weighted average number of shares outstanding		1,081,327			1,083,196
Loss Per Common Share *	$	(.05	)	$	(.04	)

	Three months ended					Nine months ended
	September 30, 2012		September 30, 2011			September 30, 2012			September 30, 2011
Revenue
Interest	$	21,345	$	26,986		$	57,145		$	63,718
Dividends		9,344		2,418			14,559			8,222
Other		—		18			—			2,486
Total revenue		30,689		29,422			71,704			74,426
Operating Expenses
General and administrative		15,523		10,524			89,951			91,528
Operating income (loss)		15,166		18,898			(18,247	)		(17,102	)
Other Income (Loss)
Gain (loss) on sale of marketable securities		—		9,144			528			6,205
Loss Before Income Taxes		15,166		28,042			(17,719	)		(10,897	)
Income Tax Benefits (Expense)		—		—			—			—
Net Income (Loss)	$	15,166	$	28,042		$	(17,719	)	$	(10,897	)
Other Comprehensive Income (Loss) Unrealized gain (loss) on marketable securities, net of tax		105,343		(662,081	)		244,528			(572,792	)
Total Comprehensive Income (Loss)	$	120,509	$	(634,039	)	$	226,809		$	(583,689	)
Weighted average number of shares outstanding		1,082,067		1,083,359			1,082,631			1,086,075
Income (loss) per Common Shares*	$	0.01	$	0.03		$	(0.04	)	$	(0.04	)

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

* After giving effect on a pro-~~rata basis to preferred dividends of $0.07 per share per annum.~~3-

TWENTY SERVICES, INC.

~~CONDENSED~~ STATEMENT OF CASH FLOWS

(Unaudited)


	Three Months Ended March 31,
	2013			2012
Cash flows from operating activities:
Interest and dividends received	$	29,377		$	29,455
Cash paid employees and supplier		(60,333	)		(43,068	)

Net cash used in operating activities		(30,956	)		(13,613	)
Cash flows from investing activities
Purchase of Preferred Stock for Treasury		(76	)		(818	)

Net cash used by investing activities		(76	)		(818	)

Net decrease in cash		(31,032	)		(14,431	)

Cash and temporary investments, beginning of period		90,221			104,672

Cash and temporary investments, end of period	$	59,189		$	90,241

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2012			2011			2012			2011
Cash flows from operating activities:
Interest and dividends received	$	30,688		$	29,422		$	71,704		$	74,426
Notes receivable repayments		—						—			28,520
General and administrative expenses paid		(15,972	)		(10,515	)		(94,991	)		(61,487	)
Net cash provided by (used) by operating activities		14,716			18,907			(23,287	)		41,459
Cash flows from financing and investing activities:
Net sale (purchase) of securities		—			38,479			26,561			61,056
Purchase of Treasury Stock		(3,867	)		—			(5,290	)		(26,822	)
Dividends Paid		(4,805	)		—			(24,820	)		(35,359	)
Net cash provided (used) by investing activities		(8,672	)		00			(3,549	)		(1, 125	)
Net increase (decrease) in cash		6,044			57,386			(26,836	)		40,334
Cash and temporary investments, beginning of period		71,792			77,154			104,672			94,206
Cash and temporary investments, end of period	$	77,836		$	134,540		$	77,836		$	134,540

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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 ~~income~~loss of $1531,~~166~~604 for the three months ended ~~September~~March 3031, ~~2012~~2013, as compared to the ~~net~~ ~~income of $28,042 for the corresponding 2011 period. The Registrant reported a~~ net loss of $1713,~~719~~417 for the ~~nine~~corresponding ~~months ended September 30,~~ 2012, ~~as compared to a net loss of $10,897 for the corresponding 2011~~ period.

REVENUES

Revenues for the three months ended ~~September~~March 3031, ~~2012~~2013 of $ 3029,~~689~~377 were comparable to $29,~~422~~455 for the ~~corresponding~~ ~~2011 period. Revenues for the nine months ended September 30,~~ corresponding 2012 ~~of $71,704 were comparable to $74,426 for the corresponding 2011~~ period.

EXPENSES

General and administrative expenses increased from $1042,~~524~~872 in ~~2011 to $15,523 for the corresponding three months period ended September 30,~~ 2012. ~~General and administrative expenses decreased~~ to $8960,~~951~~981 for the ~~nine months ended September 30, 2012 from $91,528 for the~~ corresponding ~~2011~~2013 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.

~~During~~The ~~the~~above ~~three~~financial ~~months~~statements ~~ended~~include ~~September 30,~~all ~~2012 and~~ the ~~nine months ended September 30~~adjustments, ~~2012~~which in the ~~Registrant’s~~opinion ~~liquidity remained~~of ~~stable. Twenty Services~~Management, ~~Inc.~~are ~~(“the~~necessary ~~Company”)~~for ~~has~~a ~~neither~~fair presentation ~~notes~~of ~~payable~~such ~~nor~~financial ~~long-term~~information ~~debt and does not anticipate the need for borrowing~~ in ~~the~~conformity ~~near~~with ~~future.~~generally ~~The~~accepted ~~Registrant~~accounting ~~has sufficient cash and temporary cash investments to meet its short-term liquidity needs~~principles. ~~Should~~All ~~long-term~~adjustments ~~liquidity~~are ~~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~~normal ~~for~~recurring ~~liquidity in excess of the Company’s current liabilities to generate liquidity~~nature.

5COMPREHENSIVE INCOME

~~The~~Comprehensive ~~Company~~income ~~anticipates~~net ~~that~~of ~~its~~tax ~~operating~~totaled ~~activities~~$413,827 ~~and~~for ~~its~~the ~~investing~~first ~~activities~~quarter ~~will generate~~of ~~net~~2013 ~~cash~~as ~~flows~~compared ~~and that its financing activities will continue~~ to ~~use~~$386,634 ~~cash~~in ~~flows~~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 ~~reporting~~report entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) ~~and~~ 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.

	Fair Value Measurements at Reporting Date Using
Description	Quoted Prices in ActiveMarkets for IdenticalAssets(Level l)09/30/2012		Significant OtherObservableInputs(Level 2)		SignificantUnobservableInputs(Level 3)
Marketable securities	$	2,901,389	$	1,392,455	$	.00
Total	$	2,901,389	$	1,392,455	$	.00

-5-


	Fair Value Measurements at Reporting Date Using
Description	Quoted Prices in Active Markets for Identical Assets (Level l) 03/31/2013		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities	$	3,675,959	$	1,389,745

Total	$	3,675,959	$	1,389,745

FINANCIAL DISCLOSURE AND INTERNAL CONTROLS

~~Management of~~ Twenty Services, Inc. maintains internal controls over financial reporting, which generally include those ~~controls~~ 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”)~~.

~~Management~~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 ~~make~~makes 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 ~~Quarterly~~Annual 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 ~~their~~his evaluation of these disclosure controls and procedures, the Company’s Principal Executive Officer ~~(“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.

-6-

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 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 ~~September~~March 3031, ~~2012~~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 ~~September~~March 3031, ~~2012~~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 ~~September~~March 3031, ~~2012~~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.

-7 -

PART II

OTHER INFORMATION

Item 1.	Legal Proceedings	NONE
Item 1. Legal Proceedings	NONE
Item 2.	Changes in Securities	NONE
Item 2. Changes in Securities	NONE
Item 3.	Defaults Upon Senior Securities	NONE
Item 3. Defaults Upon Senior Securities	NONE
Item 4.	Submission of Matters to a Vote of Securities Holders	NONE
Item 4. Submission of Matters to a Vote of Securities Holders	NONE
Item 5.	Other Information:	NONE
Item 5. Other Information:	NONE
Item 6.	EXHIBITS AND REPORTS ON FORM 8-K

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		INTERACTIVE DATA FILE
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

-8 -

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:	November 5, 2012	/s/ David J. Noble
Date: May 8, 2013			/s/ David J. Noble
		~~David J. Noble~~	David J. Noble
		Chairman/Director Principal Executive Officer/Chief Financial Officer
			Chairman/Director Principal Executive Officer and Chief Financial Officer
Date:	November 5, 2012	/s/ Shirley B. Whitaker
Date: May 8, 2013			/s/ Shirley B. Whitaker
		~~Shirley B. Whitaker~~	Shirley B. Whitaker
		Vice President
			Vice-President

-9 -

Large accelerated filer

Accelerated filer

Non-accelerated filer

¨ (Do not check if a smaller reporting company)

Smaller reporting company

Filing Compare · TWENTY SERVICES INC