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 2nd Quarter Net Sales and Record 2nd Quarter Net Income

EACO Corporation (OTCMKTS:EACO) today reported the results for its quarter ended February 29, 2024.

Net sales, net income and earnings per share were as follows for the three months ended February 29, 2024 (dollars in thousands, except per share information):

 

Three Months Ended

 

 

 

February 29,

2024

 

February 28,

2023

 

% Change

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

Net sales

$83,335

 

$76,925

 

8.3%

 

 

 

 

 

 

Net income

$5,498

 

$5,100

 

7.8%

 

 

 

 

 

 

Basic earnings per common share

$1.13

 

$1.05

 

7.6%

The Company had 413 sales employees at February 29, 2024, an increase of 43 employees or 11.6%, from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 109 SFT’s as of February 29, 2024, five more than the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2024. 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, and the impact of products offered by our competitors from time to time. 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)

 

 

 

February 29,

 

August 31,

 

 

2024

 

2023

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,984

 

 

$

8,558

Restricted cash

 

 

10

 

 

 

10

Trade accounts receivable, net

 

 

46,987

 

 

 

46,654

Inventory, net

 

 

63,753

 

 

 

56,270

Marketable securities, trading

 

 

1,678

 

 

 

27,228

Prepaid expenses and other current assets

 

 

3,170

 

 

 

3,843

Total current assets

 

 

119,582

 

 

 

142,563

Non-current Assets:

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

 

35,537

 

 

 

8,041

Operating lease right-of-use assets

 

 

4,692

 

 

 

9,988

Other assets, net

 

 

1,534

 

 

 

1,652

Total assets

 

$

161,345

 

 

$

162,244

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$

27,986

 

 

$

22,505

Accrued expenses and other current liabilities

 

 

8,209

 

 

 

16,375

Current portion of operating lease liabilities

 

 

2,245

 

 

 

3,950

Current portion of debt

 

 

120

 

 

 

120

Total current liabilities

 

 

38,560

 

 

 

42,950

Non-current Liabilities:

 

 

 

 

 

 

Long-term debt

 

 

4,286

 

 

 

4,348

Operating lease liabilities

 

 

2,625

 

 

 

6,225

Total liabilities

 

 

45,471

 

 

 

53,523

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

 

 

(48

)

 

 

38

Retained earnings

 

 

103,494

 

 

 

96,255

Total shareholders’ equity

 

 

115,874

 

 

 

108,721

Total liabilities and shareholders’ equity

 

$

161,345

 

 

$

162,244

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2023 filed with the U.S. Securities and Exchange Commission on November 22, 2023.

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

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

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

February 29,

2024

 

February 28,

2023

 

February 29,

2024

 

February 28,

2023

Net sales

$

83,335

 

$

76,925

 

 

$

163,590

 

$

153,244

 

Cost of sales

 

58,308

 

 

54,661

 

 

114,991

 

 

109,317

 

Gross margin

 

25,027

 

 

22,264

 

 

 

48,599

 

 

43,927

 

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative expenses

17,598

 

 

15,606

 

 

34,815

 

 

31,291

 

Impairment on termination of lease

 

 

 

 

 

 

3,906

 

 

 

Income from operations

 

7,429

 

 

6,658

 

 

 

9,878

 

 

12,636

 

 

Other income (expense):

 

Net (loss) gain on trading securities

 

23

 

 

179

 

 

 

(21

)

 

621

 

Interest and other (expense)

(75

)

 

46

 

 

(84

)

 

(2

)

Other (expense) income, net

 

(52

)

 

225

 

 

 

(105

)

 

619

 

Income before income taxes

7,377

 

6,883

 

 

9,773

 

13,255

 

Provision for income taxes

 

1,879

 

 

1,783

 

 

 

2,496

 

 

3,444

 

Net income

5,498

 

5,100

 

 

7,277

 

9,811

 

Cumulative preferred stock dividend

 

(19

)

 

(19

)

 

 

(38

)

 

(38

)

Net income attributable to common shareholders

$

5,479

 

$

5,081

 

 

$

7,239

 

$

9,773

 

Basic earnings per share:

$

1.13

 

$

1.05

 

 

$

1.49

 

$

2.01

 

Diluted earnings per share:

$

1.12

 

$

1.04

 

 

$

1.48

 

$

2.00

 

Basic 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)

 

Six Months Ended

February 29,

2024

February 28,

2023

Operating activities:

 

 

Net income

$

7,277

 

$

9,811

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization

806

 

708

 

Bad debt expense

135

 

 

 

182

 

Deferred tax provision

 

40

 

 

 

 

Net unrealized loss (gain) on trading securities

267

 

(621

)

Impairment on termination of lease

 

3,906

 

 

 

 

Changes in current assets and liabilities:

 

 

Trade accounts receivable

(468

)

2,901

 

Inventory

(7,483

)

 

 

(4,658

)

Prepaid expenses and other assets

751

 

1,356

 

Operating lease right-of-use assets

 

5,296

 

 

 

(271

)

Trade accounts payable

3,404

 

1,087

 

Accrued expenses and other current liabilities

 

(8,166

)

 

 

(4,842

)

Operating lease liabilities

(5,305

)

 

 

285

 

Net cash provided by operating activities

460

 

 

 

5,938

 

Investing activities:

Purchase of property, equipment, and leasehold improvements

(32,208

)

 

 

(391

)

Net sales (purchases) of marketable securities, trading

25,283

 

(17,319

)

Net cash used in investing activities

(6,925

)

 

 

(17,710

)

Financing activities:

Repayments on long-term debt

 

(62

)

 

 

(58

)

Preferred stock dividend

(38

)

(38

)

Net change in bank overdraft

2,077

 

 

 

(109

)

Net cash provided by (used in) financing activities

1,977

 

 

 

(205

)

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

(86

)

 

(85

)

Net decrease in cash, cash equivalents, and restricted cash

(4,574

)

 

 

(12,062

)

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

8,568

 

 

17,396

 

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

$

3,994

 

 

$

5,334

 

Supplemental disclosures of cash flow information:

Cash paid for interest

$

145

 

 

$

102

 

Cash paid for income taxes

$

8,276

 

$

7,544

 

 

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.