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     104  0 Kommentare EACO Corporation Reports 1st Quarter Net Sales and Net Income

    EACO Corporation (OTCQB:EACO) today reported the results for three months ended November 30, 2020.

    Net sales, net income and earnings per share were as follows for the three months ended November 30, 2020 (dollars in thousands, except per share information):

     

    Three Months Ended November 30,

    %

     

    2020

    2019

    Change

     

    (unaudited)

    (unaudited)

     

     

     

    Net sales

    $53,403

    $56,040

    (4.7)%

     

     

     

     

    Net income

    $851

    $1,917

    (55.6)%

     

     

     

     

    Basic and diluted earnings per common share

    $0.17

    $0.39

    (56.4)%

    The Company had 373 sales employees at November 30, 2020, an increase of 24 or 6.4% from the prior year quarter. The Company’s sales force is divided into Sales focus teams (SFT’s). The Company had 101 SFT’s as of November 30, 2020, an increase of 2 from the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2021. 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)

    November 30,

     

    August 31,

    2020

    2020*

    ASSETS

     

     

     

     

    Current Assets:

    Cash and cash equivalents

    $

    6,665

    $

    6,079

    Restricted cash

    3,202

    2,916

    Trade accounts receivable, net

     

    28,033

     

    29,667

    Inventory, net

    39,616

    39,545

    Marketable securities, trading

     

    791

     

    1,368

    Prepaid expenses and other current assets

    4,388

    5,094

    Total current assets

     

    82,695

     

    84,669

    Non-current Assets:

     

     

     

     

    Property, equipment and leasehold improvements, net

    8,650

    8,848

    Other assets:

     

     

     

     

    Operating lease right-of-use assets

     

    12,393

     

    12,810

    Other assets, net

     

    1,414

     

    1,424

    Total assets

    $

    105,152

    $

    107,751

    LIABILITIES AND SHAREHOLDERS’ EQUITY

     

     

    Current Liabilities:

    Trade accounts payable

    $

    16,334

    $

    16,535

    Accrued expenses and other current liabilities

    5,909

    6,632

    Liability for short sales of trading securities

    3,202

    2,916

    Current portion of operating lease liabilities

     

    2,585

     

    2,653

    Current portion of long-term debt

     

    2,939

     

    5,100

    Total current liabilities

     

    30,969

     

    33,836

    Non-current Liabilities:

    Long-term debt

    4,781

    4,807

    Operating lease liabilities

     

    9,833

     

    10,289

    Total liabilities

     

    45,583

     

    48,932

    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

    706

    788

    Retained earnings

     

    46,435

     

    45,603

    Total shareholders’ equity

    59,569

    58,819

    Total liabilities and shareholders’ equity

    $

    105,152

    $

    107,751

    * Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2020 filed with the U.S. Securities and Exchange Commission on November 30, 2020.

    EACO Corporation and Subsidiaries

    Condensed Consolidated Statements of Income

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

    (unaudited)

     

    Three Months Ended
    November 30,

     

     

    2020

     

    2019

    Net sales

    $

    53,403

    $

    56,040

    Cost of sales

     

    38,951

    40,144

    Gross margin

     

    14,452

    15,896

    Operating expenses:

    Selling, general and administrative expenses

    12,681

    12,602

    Income from operations

     

    1,771

    3,294

     

    Other (expense):

    Net loss on trading securities

     

    (553)

    (80)

    Loss on sale of real property

     

     

    (102)

    Interest and other expense, net

    (69)

    (119)

    Other (expense), net

     

    (622)

    (301)

    Income before income taxes

    1,149

    2,993

    Provision for income taxes

     

    298

    1,076

    Net income

     

    851

    1,917

    Cumulative preferred stock dividend

    (19)

    (19)

    Net income attributable to common shareholders

    $

    832

    $

    1,898

     

    Basic and diluted earnings per common share:

    $

    0.17

    $

    0.39

    Basic and diluted weighted average common
    shares outstanding

     

    4,861,590

    4,861,590

    EACO Corporation and Subsidiaries

    Condensed Consolidated Statements of Cash Flows

    (in thousands)

    (unaudited)

    Three Months Ended
    November 30,

    2020

    2019

    Operating activities:

     

     

    Net income

    $

    851

    $

    1,917

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

     

     

    Depreciation and amortization

    377

    259

    Bad debt expense

     

     

    3

    Loss on sale of property

    102

    Net loss on trading securities

    553

    80

    (Increase) decrease in:

     

     

    Trade accounts receivable

    1,634

    2,175

    Inventory

    (71)

     

     

    (2,472)

    Prepaid expenses and other assets

    716

    (729)

    Operating lease right-of-use assets

     

    417

     

     

    Increase (decrease) in:

     

     

    Trade accounts payable

    666

    (2,266)

    Accrued expenses and other current liabilities

    (723)

     

     

    (737)

    Operating lease liabilities

     

    (524)

     

     

    Net cash provided by (used in) operating activities

    3,896

     

     

    (1,668)

    Investing activities:

    Additions to property, equipment, and leasehold improvements

    (179)

     

     

    (2,393)

    Proceeds from sale of property

     

     

     

    7,075

    Sale of marketable securities, trading

    24

    1,388

    Net change in liabilities for short sales of trading securities

    286

     

     

    2,167

    Net cash provided by investing activities

    131

     

     

    8,237

    Financing activities:

    (Payments) borrowings on revolving credit facility, net

    (2,187)

     

     

    513

    Borrowings on Construction Loan

     

     

     

    1,701

    Repayments on long-term debt

     

     

     

    (5,125)

    Preferred stock dividend

    (19)

    (19)

    Bank overdraft

    (867)

     

     

    104

    Net cash used in financing activities

    (3,073)

     

     

    (2,826)

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

    (82)

     

    (212)

    Net increase in cash, cash equivalents, and restricted cash

    872

     

     

    3,531

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

    8,995

     

    5,347

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

    $

    9,867

     

    $

    8,878

    Supplemental disclosures of cash flow information:

    Cash paid for interest

    $

    48

     

    $

    122

    Cash paid for income taxes

    $

    $

     



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    EACO Corporation Reports 1st Quarter Net Sales and Net Income EACO Corporation (OTCQB:EACO) today reported the results for three months ended November 30, 2020. Net sales, net income and earnings per share were as follows for the three months ended November 30, 2020 (dollars in thousands, except per share …