EACO Hits Record Q1 Sales of $93.9M as Net Income Soars 287% to $6.9M

ANAHEIM, Calif.--(BUSINESS WIRE)-- EACO Corporation (OTC Pink:EACO) announced the results for its quarter ended November 30, 2024.

Net sales, net income and earnings per share were as follows for the quarter ended November 30, 2024 (dollars in thousands, except per share information):

听	Three Months Ended November 30,				%
听	2024		2023		Change
	(unaudited)		(unaudited)
听	听
Net sales	$	93,920	$	80,255	17.0	%
听	听		听		听
Net income	$	6,888	$	1,779	287.2		%*
听	听		听		听
Basic and diluted earnings per common share	$	1.41	$	0.36	291.7	%

* The increase in net income for the three months ended November 30, 2024 reflects a $3.9 million impairment expense recorded during the three months ended November 30, 2023 and a 17% increase in net sales during the three months ended November 30, 2024.

The Company had 426 sales employees at November 30, 2024, an increase of 13 or 3% from the prior year quarter. The Company鈥檚 sales force is divided into sales focus teams (SFT鈥檚). The Company had 112 SFT鈥檚 as of November 30, 2024, an increase of 3 from the prior year quarter. Management anticipates continued growth in both our headcount and SFT鈥檚 in fiscal year 2025. 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鈥檚 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)

	November 30,		August 31,
	2024		2024
ASSETS	听		听
Current Assets:	听		听
Cash and cash equivalents	$	591	$	843
Restricted cash	听	10	听	10
Trade accounts receivable, net	听	51,736	听	53,272
Inventory, net	听	75,683	听	69,602
Marketable securities, trading	听	20,521	听	14,748
Prepaid expenses and other current assets	听	4,489	听	3,526
Total current assets	听	153,030	听	142,001
Non-current Assets:	听		听
Property, equipment and leasehold improvements, net	听	34,759	听	35,061
Operating lease right-of-use assets	听	6,930	听	7,513
Other assets, net	听	4,043	听	3,963
Total assets	$	198,762	$	188,538
LIABILITIES AND SHAREHOLDERS鈥� EQUITY	听		听
Current Liabilities:	听		听
Trade accounts payable	$	34,893	$	28,054
Accrued expenses and other current liabilities	听	21,070	听	24,910
Current portion of long-term debt	听	131	听	129
Current portion of operating lease liabilities	听	2,596	听	2,708
Total current liabilities	听	59,690	听	55,801
Non-current Liabilities:	听		听
Long-term debt	听	4,181	听	4,214
Operating lease liabilities	听	4,426	听	4,892
Total liabilities	听	68,297	听	64,907
Commitments and Contingencies	听		听
Shareholders鈥� Equity:	听		听
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)	听	1	听	1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding	听	49	听	49
Additional paid-in capital	听	12,378	听	12,378
Accumulated other comprehensive income	听	38	听	73
Retained earnings	听	117,999	听	111,130
Total shareholders鈥� equity	听	130,465	听	123,631
Total liabilities and shareholders鈥� equity	$	198,762	$	188,538

* Derived from the Company鈥檚 audited financial statements included in its Form 10-K for the year ended August 31, 2024 filed with the U.S. Securities and Exchange Commission on November 29, 2024.

EACO Corporation and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except for share and per share information) (unaudited)
听
听	听	Three Months Ended
听	听	November 30,
听	听	2024			听	2023
Net sales	听	$	93,920	听	听	$	80,255	听
Cost of sales	听	听	66,139	听	听	听	56,683	听
Gross margin	听	听	27,781	听	听	听	23,572	听
Operating expenses:	听	听	听		听	听	听
Selling, general and administrative expenses	听	听	18,938	听	听	听	17,217	听
Impairment on termination of lease	听	听	鈥�	听	听	听	3,906	听
Income from operations	听	听	8,843	听	听	听	2,449	听
听	听	听	听		听	听	听
Other (expense) income:	听	听	听		听	听	听
Net gain (loss) on trading securities	听	听	454	听	听	听	(44	)
Interest and other expense, net	听	听	(48	)	听	听	(9	)
Other income (expense), net	听	听	406	听	听	听	(53	)
Income before income taxes	听	听	9,249	听	听	听	2,396	听
Provision for income taxes	听	听	2,361	听	听	听	617	听
Net income	听	听	6,888	听	听	听	1,779	听
Cumulative preferred stock dividend	听	听	(19	)	听	听	(19	)
Net income attributable to common shareholders	听	$	6,869	听	听	$	1,760	听
Basic and diluted earnings per common share:	听	$	1.41	听	听	$	0.36	听
Basic average common shares outstanding	听	听	4,861,590	听	听	听	4,861,590	听
Diluted weighted average common shares outstanding	听	听	4,901,590	听	听	听	4,901,590	听

EACO Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
听
听	听	Three Months Ended
听	听	November 30,
听	听	2024			听	2023
Operating activities:	听	听			听	听
Net income	听	$	6,888	听	听	$	1,779	听
Adjustments to reconcile net income to net cash provided by operating activities:	听	听			听	听
Depreciation and amortization	听	听	433	听	听	听	317	听
Bad debt expense	听	听	66	听	听	听	47	听
Deferred tax provision	听	听	(48	)	听	听	(67	)
Net unrealized (gain) loss on trading securities	听	听	(213	)	听	听	210	听
Impairment on termination of lease	听	听	鈥�	听	听	听	3,906	听
Increase (decrease) in cash from changes in	听	听			听	听
Trade accounts receivable	听	听	1,470	听	听	听	556	听
Inventory	听	听	(6,081	)	听	听	(3,986	)
Prepaid expenses and other assets	听	听	(995	)	听	听	(346	)
Operating lease right-of-use assets	听	听	583	听	听	听	5,772	听
Trade accounts payable	听	听	3,328	听	听	听	190	听
Accrued expenses and other current liabilities	听	听	(2,840	)	听	听	(2,257	)
Right of use liabilities	听	听	(578	)	听	听	(5,820	)
Net cash provided by operating activities	听	听	2,012	听	听	听	301	听
Investing activities:	听	听			听	听
Additions to property, equipment, and leasehold improvements	听	听	(131	)	听	听	(31,701	)
(Purchase) proceeds from sale of marketable securities, trading	听	听	(5,560	)	听	听	22,791	听
Net cash used in investing activities	听	听	(5,691	)	听	听	(8,910	)
Financing activities:	听	听			听	听
Borrowing on revolving credit facility	听	听	鈥�	听	听	听	3,081	听
Payments on long-term debt	听	听	(31	)	听	听	(31	)
Preferred stock dividend	听	听	(19	)	听	听	(19	)
Bank overdraft	听	听	3,511	听	听	听	3,650	听
Net cash provided by financing activities	听	听	3,461	听	听	听	6,681	听
Effect of foreign currency exchange rate changes on cash and cash equivalents	听	听	(35	)	听	听	(131	)
Net (decrease) in cash, cash equivalents, and restricted cash	听	听	(252	)	听	听	(2,059	)
Cash, cash equivalents, and restricted cash - beginning of period	听	听	853	听	听	听	8,568	听
Cash, cash equivalents, and restricted cash - end of period	听	$	601	听	听	$	6,509	听
Supplemental disclosures of cash flow information:	听	听			听	听
Cash paid for interest	听	$	48	听	听	$	296	听
Cash paid for income taxes	听	$	9,211	听	听	$	674	听

听

View source version on businesswire.com:

Michael Narikawa

EACO Corporation

(714) 876-2490

Source: EACO Corporation

AG真人官方

EACO Corporation Reports Record 1st Quarter Net Sales and Record Quarter Net Income

OTC:EACO

EACO Rankings

EACO Latest News

EACO Stock Data

EACO Corporation Reports Record 1st Quarter Net Sales and Record Quarter Net Income

OTC:EACO

EACO Rankings

EACO Latest News

EACO Stock Data

Related Articles