Sign In  |  Register  |  About San Rafael  |  Contact Us

San Rafael, CA
September 01, 2020 1:37pm
7-Day Forecast | Traffic
  • Search Hotels in San Rafael

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

EACO Corporation Reports Record Quarterly Net Sales and Record 3rd Quarter Net Income

EACO Corporation (OTCMKTS:EACO) today reported the results for its quarter ended May 31, 2022.

Net sales, net income and earnings per share were as follows for the three months ended May 31, 2022 (dollars in thousands, except per share information):

 

Three Months Ended

May 31,

%

 

2022

2021

Change

 

(unaudited)

(unaudited)

 

 

 

Net sales

$77,797

$62,676

24.1%

 

 

 

 

Net income

$5,330

$3,080

73.1%

 

 

 

 

Basic and diluted earnings per common share

$1.09

$0.63

73.0%

The Company had 340 sales employees at May 31, 2022, a decrease of 9 (2.6%) from the prior year quarter. The Company’s sales force is divided into Sales focus teams (SFT’s). The Company had 103 SFT’s as of May 31, 2022 the same from the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2022. The Company believes it continues to gain market share through its local presence business model.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Any statements set forth in this news release that are not entirely historical and factual in nature, including without limitation, statements related to our headcount expansion and future growth are forward-looking statements. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The potential risks and uncertainties include, but are not limited to, our ability to hire and retain additional qualified employees, our ability to open additional sales offices, and to gain market acceptance for our products, the pricing and availability of our products, the success of our sales and marketing programs, the impact of products offered by our competitors from time to time, and the impact of the Covid-19 pandemic. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in EACO’s most recent Form 10-K and all subsequent Form 10-Q reports filed by us with the SEC. The forward-looking statements included in this release speak only as of the date hereof, and EACO does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.

EACO Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share information)

(unaudited)

 

May 31,

 

 

August 31,

2022

 

 

2021*

ASSETS

 

 

 

 

Current Assets:

Cash and cash equivalents

$

5,427

$

4,455

Restricted cash

10

10

Trade accounts receivable, net

 

42,718

 

33,939

Inventory, net

47,493

40,448

Marketable securities, trading

 

4,835

 

3,741

Prepaid expenses and other current assets

7,500

6,780

Total current assets

 

107,983

 

89,363

Non-current Assets:

 

 

 

 

Property, equipment and leasehold improvements, net

7,974

8,269

Operating lease right-of-use assets

 

10,668

 

11,084

Other assets, net

 

1,411

 

1,669

Total assets

$

128,036

$

110,385

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

Current Liabilities:

Trade accounts payable

$

19,316

$

16,413

Accrued expenses and other current liabilities

11,194

10,964

Current portion of operating lease liabilities

 

3,233

 

3,096

Current portion of long-term debt

 

119

 

113

Total current liabilities

 

33,862

 

30,586

Non-current Liabilities:

Long-term debt

4,492

4,585

Operating lease liabilities

 

7,592

 

8,092

Total liabilities

 

45,946

 

43,263

Commitments and Contingencies

 

 

 

 

Shareholders’ Equity:

Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)

 

1

 

1

Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding

49

49

Additional paid-in capital

 

12,378

 

12,378

Accumulated other comprehensive income

282

780

Retained earnings

 

69,380

 

53,914

Total shareholders’ equity

82,090

67,122

Total liabilities and shareholders’ equity

$

128,036

$

110,385

 

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2021 filed with the U.S. Securities and Exchange Commission on July 6, 2022.

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except for share and per share information)

(unaudited)

 

 

 

Three Months Ended

May 31,

Nine Months Ended

May 31,

 

 

2022

 

 

2021

 

2022

 

 

2021

 

Net sales

$

77,797

 

$

62,676

 

$

208,206

 

$

171,830

 

Cost of sales

 

56,207

 

 

45,826

 

150,313

 

 

125,504

 

Gross margin

 

21,590

 

 

16,850

 

 

57,893

 

 

46,326

 

Operating expenses:

 

 

Selling, general and administrative expenses

14,547

 

 

12,800

 

36,881

 

 

38,021

 

Income from operations

 

7,043

 

 

4,050

 

 

21,012

 

 

8,305

 

 

Other income (expense):

Net gain (loss) on trading securities

 

213

 

 

196

 

 

135

 

 

(863

)

Interest and other (expense)

(48

)

 

(45

)

(153

)

 

(174

)

Other income (expense), net

 

165

 

 

151

 

 

(18

)

 

(1,037

)

Income before income taxes

7,208

 

4,201

 

20,994

 

7,268

 

Provision for income taxes

 

1,878

 

 

1,121

 

 

5,471

 

 

1,943

 

Net income

5,330

 

3,080

 

15,523

 

5,325

 

Cumulative preferred stock dividend

 

(19

)

 

(19

)

 

(57

)

 

(57

)

Net income attributable to common shareholders

$

5,311

 

$

3,061

 

$

15,466

 

$

5,268

 

Basic and diluted earnings per share:

$

1.09

 

$

0.63

 

$

3.18

 

$

1.08

 

Basic and diluted weighted average common shares outstanding

4,861,590

 

4,861,590

 

4,861,590

 

4,861,590

 

Diluted weighted average common shares outstanding

4,901,590

 

4,901,590

 

4,901,590

 

4,901,590

 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Nine Months Ended

May 31,

2022

2021

Operating activities:

 

 

 

Net income

$

15,523

 

$

5,325

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

1,122

 

1,136

 

Bad debt expense

54

 

 

 

62

 

Loss on sale of real property

 

 

 

 

 

Net unrealized (gain) loss on trading securities

(135

)

863

 

Increase (decrease) in cash from changes in:

 

 

 

 

Trade accounts receivable

(8,843

)

(3,239

)

Inventory

(7,045

)

 

 

(861

)

Prepaid expenses and other assets

(462

)

1,568

 

Operating lease right-of-use assets

 

416

 

 

 

1,400

 

Trade accounts payable

3,959

 

2,895

 

Accrued expenses and other current liabilities

 

230

 

 

 

(1,291

)

Operating lease liabilities

(363

)

 

 

(1,454

)

Net cash provided by operating activities

4,456

 

 

 

6,404

 

Investing activities:

 

 

Purchase of property, equipment, and leasehold improvements

(827

)

 

 

(757

)

Net (purchases) sales of marketable securities, trading

(959

)

(4,419

)

Net change in liabilities for short sales of trading securities

 

 

 

(2,916

)

Net cash (used in) investing activities

(1,786

)

 

 

(8,092

)

Financing activities:

 

 

Payments on revolving credit facility, net

 

 

 

(5,100

)

Borrowings on construction loan

 

 

 

 

 

Repayments on long-term debt

 

(87

)

 

 

(82

)

Preferred stock dividend

(57

)

(57

)

Net change in bank overdraft

(1,056

)

 

 

144

 

Net cash (used in) financing activities

(1,200

)

 

 

(5,095

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

(498

)

 

223

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

972

 

 

 

(6,560

)

Cash, cash equivalents, and restricted cash - beginning of period

4,465

 

 

8,995

 

Cash, cash equivalents, and restricted cash - end of period

$

5,437

 

 

$

2,435

 

Supplemental disclosures of cash flow information:

 

 

Cash paid for interest

$

153

 

 

$

172

 

Cash paid for income taxes

$

3,979

 

$

2,509

 

 

Contacts

Michael Narikawa

EACO Corporation

(714) 876-2490

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanRafael.com & California Media Partners, LLC. All rights reserved.