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EACO Corporation Reports Record Quarter Net Sales and Record 2nd Quarter Net Income

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ANAHEIM, Calif.--(BUSINESS WIRE)-- EACO Corporation (OTC Pink: EACO) today reported the results for its quarter ended February 28, 2025.

Net sales, net income and earnings per share were as follows for the three months ended February 28, 2025 and February 29, 2024 (dollars in thousands, except per share information):

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Three Months Ended

Ìý

Ìý

February 28,

2025

February 29,

2024

% Change

Ìý

(unaudited)

(unaudited)

Ìý

Ìý

Ìý

Ìý

Ìý

Net sales

$100,132

$83,335

20.2%

Ìý

Ìý

Ìý

Ìý

Net income

$6,763

$5,498

23.0%

Ìý

Ìý

Ìý

Ìý

Basic earnings per common share

$1.39

$1.13

23.0%

The Company had 445 sales employees at February 28, 2025, an increase of 31 employees or 7%, from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 114 SFT’s as of February 28, 2025, four more than the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s 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:

This press release contains certain forward-looking statements within the meaning of the “safe harbor� provisions of the Private Securities Litigation Reform Act of 1955, as amended. These forward-looking statements include, without limitation, statements related to our headcount expansion, growth in market share, and other statement that is not historical information. 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 as well as increases to international tariffs. 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)

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Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

February 28,

Ìý

August 31,

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Ìý

2025

Ìý

2024*

ASSETS

Ìý

Ìý

Ìý

Ìý

Current Assets:

Cash and cash equivalents

$

499

Ìý

$

843

Restricted cash

10

Ìý

10

Trade accounts receivable, net

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54,743

Ìý

Ìý

53,272

Inventory, net

79,377

Ìý

69,602

Marketable securities, trading

Ìý

15,081

Ìý

Ìý

14,748

Prepaid expenses and other current assets

4,325

Ìý

3,526

Total current assets

Ìý

154,035

Ìý

Ìý

142,001

Non-current Assets:

Ìý

Ìý

Ìý

Ìý

Property, equipment and leasehold improvements, net

34,529

Ìý

35,061

Operating lease right-of-use assets

Ìý

7,223

Ìý

Ìý

7,513

Other assets, net

Ìý

3,970

Ìý

Ìý

3,963

Total assets

$

199,757

Ìý

$

188,538

LIABILITIES AND SHAREHOLDERS� EQUITY

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Ìý

Current Liabilities:

Trade accounts payable

$

35,453

Ìý

$

28,054

Accrued expenses and other current liabilities

15,545

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24,910

Current portion of long-term debt

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131

Ìý

Ìý

129

Current portion of operating lease liabilities

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2,679

Ìý

Ìý

2,708

Total current liabilities

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53,808

Ìý

Ìý

55,801

Non-current Liabilities:

Long-term debt

4,149

Ìý

4,214

Operating lease liabilities

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4,695

Ìý

Ìý

4,892

Total liabilities

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62,652

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Ìý

64,907

Commitments and Contingencies Note 9

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Ìý

Ìý

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Shareholders� Equity:

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

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1

Ìý

Ìý

1

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

49

Ìý

49

Additional paid-in capital

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12,378

Ìý

Ìý

12,378

Accumulated other comprehensive income

(66

)

73

Retained earnings

Ìý

124,743

Ìý

Ìý

111,130

Total shareholders� equity

137,105

Ìý

123,631

Total liabilities and shareholders� equity

$

199,757

Ìý

$

188,538

Ìý

* Derived from the Company’s 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)

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Three Months Ended

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Six Months Ended

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February 28,

2025

February 29,

2024

Ìý

February 28,

2025

February 29,

2024

Net sales

$

100,132

Ìý

$

83,335

Ìý

Ìý

$

194,052

Ìý

Ìý

$

163,590

Ìý

Cost of sales

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70,624

Ìý

Ìý

58,308

Ìý

Ìý

136,763

Ìý

Ìý

114,991

Ìý

Gross margin

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29,508

Ìý

Ìý

25,027

Ìý

Ìý

Ìý

57,289

Ìý

Ìý

48,599

Ìý

Operating expenses:

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Selling, general and administrative expenses

20,414

Ìý

Ìý

17,598

Ìý

Ìý

39,352

Ìý

Ìý

34,815

Ìý

Impairment on termination of lease

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�

Ìý

Ìý

�

Ìý

Ìý

Ìý

�

Ìý

Ìý

3,906

Ìý

Income from operations

Ìý

9,094

Ìý

Ìý

7,429

Ìý

Ìý

Ìý

17,937

Ìý

Ìý

9,878

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Other income (expense):

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Net gain (loss) on trading securities

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30

Ìý

Ìý

23

Ìý

Ìý

Ìý

484

Ìý

Ìý

(21

)

Interest and other (expense)

(49

)

Ìý

(75

)

Ìý

(97

)

Ìý

(84

)

Other (expense) income, net

Ìý

(19

)

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(52

)

Ìý

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387

Ìý

Ìý

(105

)

Income before income taxes

9,075

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7,377

Ìý

Ìý

18,324

Ìý

9,773

Ìý

Provision for income taxes

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2,312

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Ìý

1,879

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Ìý

Ìý

4,673

Ìý

Ìý

2,496

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Net income

6,763

Ìý

5,498

Ìý

Ìý

13,651

Ìý

7,277

Ìý

Cumulative preferred stock dividend

Ìý

(19

)

Ìý

(19

)

Ìý

Ìý

(38

)

Ìý

(38

)

Net income attributable to common shareholders

$

6,744

Ìý

$

5,479

Ìý

Ìý

$

13,613

Ìý

$

7,239

Ìý

Basic earnings per share:

$

1.39

Ìý

$

1.13

Ìý

Ìý

$

2.80

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Ìý

$

1.49

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Basic weighted average common
shares outstanding

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4,861,590

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Ìý

4,861,590

Ìý

Ìý

Ìý

4,861,590

Ìý

Ìý

4,861,590

Ìý

Diluted earnings per share:

$

1.38

Ìý

$

1.12

Ìý

Ìý

$

2.79

Ìý

$

1.48

Ìý

Diluted weighted average common
shares outstanding

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4,901,590

Ìý

Ìý

4,901,590

Ìý

Ìý

Ìý

4,901,590

Ìý

Ìý

4,901,590

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EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

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Six Months Ended

February 28,

2025

February 29,

2024

Operating activities:

Ìý

Ìý

Net income

$

13,651

Ìý

$

7,277

Ìý

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

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Ìý

Depreciation and amortization

858

Ìý

806

Ìý

Bad debt expense

144

Ìý

Ìý

Ìý

135

Ìý

Deferred tax provision

Ìý

(28

)

Ìý

Ìý

40

Ìý

Net unrealized (gain) loss on trading securities

(100

)

267

Ìý

Impairment on termination of lease

Ìý

�

Ìý

Ìý

Ìý

3,906

Ìý

Increase (decrease) in cash flow from change in:

Ìý

Ìý

Trade accounts receivable

(1,615

)

(468

)

Inventory

(9,775

)

Ìý

Ìý

(7,483

)

Prepaid expenses and other assets

(778

)

751

Ìý

Operating lease right-of-use assets

Ìý

290

Ìý

Ìý

Ìý

5,296

Ìý

Trade accounts payable

5,881

Ìý

3,404

Ìý

Accrued expenses and other current liabilities

Ìý

(9,365

)

Ìý

Ìý

(8,166

)

Operating lease liabilities

(226

)

Ìý

Ìý

(5,305

)

Net cash (used in) provided by operating activities

(1,063

)

Ìý

Ìý

460

Ìý

Investing activities:

Purchase of property, equipment, and leasehold improvements

(326

)

Ìý

Ìý

(32,208

)

Net (purchases) sales of marketable securities, trading

(233

)

25,283

Ìý

Net cash used in investing activities

(559

)

Ìý

Ìý

(6,925

)

Financing activities:

Repayments on long-term debt

Ìý

(63

)

Ìý

Ìý

(62

)

Preferred stock dividend

(38

)

(38

)

Bank overdraft

1,518

Ìý

Ìý

Ìý

2,077

Ìý

Net cash provided by financing activities

1,417

Ìý

Ìý

Ìý

1,977

Ìý

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

(139

)

Ìý

(86

)

Net decrease in cash, cash equivalents, and restricted cash

(344

)

Ìý

Ìý

(4,574

)

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

853

Ìý

Ìý

8,568

Ìý

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

$

509

Ìý

Ìý

$

3,994

Ìý

Supplemental disclosures of cash flow information:

Cash paid for interest

$

97

Ìý

Ìý

$

145

Ìý

Cash paid for income taxes

$

9,213

Ìý

$

8,276

Ìý

Ìý

Michael Narikawa

EACO Corporation

(714) 876-2490

Source: EACO Corporation

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209.10M
198.46k
95.92%
Electronics & Computer Distribution
Technology
United States
Anaheim