Welcome!

News Feed Item

EACO Corporation Reports Record Second Quarter Revenues

EACO Corporation (OTCQB:EACO) today reported the results for its quarter ended February 28, 2014.

Net sales, net income and earnings per share were as follows for the three months ended February 28, 2014 (dollars in thousands, except per share information):

 
Six Months Ended February 28, %
2014   2013 Change
(unaudited)
Net sales $61,957 $57,780 7.2%
 
Net income $1,173 $1,024 14.6%
 
Basic and diluted earnings per common share $0.23 $0.20 15%
 
Three Months Ended February 28, %
2014 2013 Change
(unaudited)
 
Net sales $30,922 $28,520 8%
 
Net income $109 $641 -83.0%
 
Basic and diluted earnings per common share $0.02 $0.13 -84.6%
 

As of February 28, 2014, the Company’s sales team numbered 323 employees, an increase of 5% from the 308 employees on February 28, 2013. The Company’s sales force is divided into Sales Focus Teams (SFT’s.) The Company had 96 SFT’s as of February 28, 2014, an increase of 14% from 84 SFT’s on February 28, 2013.

We estimate that the annual North American market for our products is approximately $6.7 billion. The Company’s current estimated market Share is 1.8% as compared to 1.7% in the prior year.

   
EACO Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share information)

 
February 28, August 31,
2014 2013
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 2,669 $ 1,507
Restricted cash, current 1,576 --
Trade accounts receivable, net 15,524 14,438
Inventory, net 14,122 14,272
Marketable securities, trading 417 1,395
Real estate properties held for sale 7,494 7,988
Prepaid expenses and other current assets 655 619
Total current assets 42,457 40,219
 
Non-current Assets:
Restricted cash, non-current 548 548
Equipment and leasehold improvements, net 1,394 1,396
Deferred tax asset 1,755 1,712
Other assets 430 605
Total assets $ 46,584 $ 44,480
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable $ 9,193 $ 9,315
Accrued expenses and other current liabilities 2,682 2,880
Securities sold short, at fair value 1,576 --
Liabilities of discontinued operations – short-term 153 146
Liabilities of assets held for sale 4,917 5,397
Total current liabilities 18,521 17,738
 
Non-current Liabilities:
Liabilities of discontinued operations – long-term 2,301 2,410
Deposit liability 63 87
Long-term debt 6,714 6,534
Total liabilities 27,599 26,769
 
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 959 820
Retained earnings 5,598 4,463
Total shareholders’ equity 18,985 17,711
Total liabilities and shareholders’ equity $ 46,584 $ 44,480
 

Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2012 filed with the U.S. Securities and Exchange Commission on November 29, 2013.

     

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 28, February 28,
2014   2013 2014   2013
Revenues 30,922 28,520 61,957 57,780
Cost of revenues 22,412 20,474 44,541 41,633
Gross margin 8,510 8,046 17,416 16,147
 
Selling, general and administrative expenses 8,027 7,350 15,806 14,610
Income from operations 483 696 1,610 1,537
 
Non-operating (expense) income:
Net loss on trading securities (148) (97) (57) (119)
Gain on sale of property - 540 535 540
Interest expense, net (112) (166) (211) (333)
Total non-operating (expense) income (260) 277 267 88
Net income before income taxes 223 973 1,877 1,625
Provision for income taxes 114 332 704 601
Net income 109 641 1,173 1,024
Cumulative preferred stock dividend (19) (19) (38) (38)
 
Net income attributable to common shareholders $90 $622 $1,135 $986
 
Basic and diluted earnings per share 0.02 0.13 0.23 0.20
 
Basic and diluted weighted average common shares outstanding 4,861,590 4,861,590 4,861,590 4,861,590
 
EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
Six Months Ended
February 28,
2014     2013
Operating activities:
Net income $ 1,173 $ 1,024
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 297 316
Bad debt expense 58 5
Change in inventory reserve 22 (62)
Gain on sale of real estate property (535) (540)
Net loss on trading securities 57 119
(Increase) decrease in:
Trade accounts receivable (1,144) 5
Inventory 128 (1,218)
Prepaid expenses and other assets 139 24
Deferred tax asset (43) 450
Increase (decrease) in:
Trade accounts payable (128) (165)
Accrued expenses and other current liabilities (198) 344
Deposit liability (24) (27)
Liabilities of discontinued operations   (102)   (74)
Net cash (used in) provided by operating activities   (300)   201
 
Investing activities:
Purchase of property and equipment (405) (123)
Sale (purchase) of marketable securities, trading 921 (579)
Proceeds from securities sold short 1,576 724
Change in restricted cash (1576) (724)
Proceeds from sale of property   1,139   650
Net cash provided by (used in) investing activities   1,655   (52)
 
Financing activities:
Net borrowings on revolving credit facility 186 734
Preferred dividend (38) (38)
Bank overdraft 6 (111)
Payments on long-term debt (124) (1,604)
Payments on long-term real estate held for sale   (362)   -
Net cash (used in) financing activities   (332)   (1,019)
Effect of foreign currency exchange rate changes on cash and cash equivalents   139   156
Net increase (decrease) in cash and cash equivalents 1,162 (714)
 
Cash and cash equivalents - beginning of period   1,507   2,568
Cash and cash equivalents - end of period $ 2,669 $ 1,854
 
Supplemental disclosures of cash flow information:
Cash paid for interest $ 212 $ 339
 
Cash paid for taxes $ 674 $ 196
 
Non-cash investing activities:
Transfer of real estate properties held for leasing – net to assets

held for sale

$ 7,206 $ -
Non-cash financing activities:
Transfer of long-term debt to liabilities of assets held for sale $ 4,917 $ -

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...