EACO EACO Corporation (PK)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): January 8, 2025

 

EACO CORPORATION

(Exact name of registrant as specified in its charter)

 

Florida		000-14311		59-2597349
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

5065 East Hunter Avenue

Anaheim, California 92807

(Address of Principal Executive Offices)

 

(714) 876-2490

(Registrant’s Telephone No.)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨

Written communications pursuant to Rule 425 under the Securities Act

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On January 8, 2025, EACO Corporation, a Florida corporation, issued a press release announcing our second quarter financial results and other information. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

 

The information in Item 2.02 of this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, regardless of any general incorporation language contained in such filing.

 

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits

 

Exhibit No.	Description
99.1	Press release dated January 8, 2025 reporting the financial results of EACO Corporation for the first quarter November 30, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: January 8, 2025	EACO CORPORATION
	By:	/S/ GLEN CEILEY
		Glen Ceiley, Chief Executive Officer

 

 

Exhibit 99.1

 

Michael Narikawa

EACO Corporation

(714) 876-2490

January 8, 2025

 

EACO CORPORATION REPORTS RECORD 1^st QUARTER NET SALES AND RECORD QUARTER NET INCOME

 

ANAHEIM, CALIFORNIA January 8, 2025 – 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):

 

		Three Months Ended November 30,								%
		2024				2023				Change
		(unaudited)				(unaudited)
Net sales		$	93,920			$	80,255				17.0	%
Net income		$	6,888			$	1,779				287.2	%*
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’s sales force is divided into sales focus teams (SFT’s). The Company had 112 SFT’s as of November 30, 2024, an increase of 3 from 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:

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)

 

		November 30,				August 31,
		2024				2024
ASSETS
Current Assets:
Cash and cash equivalents		$	591			$	843
Restricted cash			10				10
Trade accounts receivable, net			51,736				53,272
Inventory, net			75,683				69,602
Marketable securities, trading			20,521				14,748
Prepaid expenses and other current assets			4,489				3,526
Total current assets			153,030				142,001
Non-current Assets:
Property, equipment and leasehold improvements, net			34,759				35,061
Operating lease right-of-use assets			6,930				7,513
Other assets, net			4,043				3,963
Total assets		$	198,762			$	188,538
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable		$	34,893			$	28,054
Accrued expenses and other current liabilities			21,070				24,910
Current portion of long-term debt			131				129
Current portion of operating lease liabilities			2,596				2,708
Total current liabilities			59,690				55,801
Non-current Liabilities:
Long-term debt			4,181				4,214
Operating lease liabilities			4,426				4,892
Total liabilities			68,297				64,907
Commitments and Contingencies Note 8
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			38				73
Retained earnings			117,999				111,130
Total shareholders’ equity			130,465				123,631
Total liabilities and shareholders’ equity		$	198,762			$	188,538

 

* 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)

 

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

 

 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

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

 

 

v3.24.4

Cover	Jan. 08, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 08, 2025
Entity File Number	000-14311
Entity Registrant Name	EACO CORPORATION
Entity Central Index Key	0000784539
Entity Tax Identification Number	59-2597349
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	5065 East Hunter Avenue
Entity Address, City or Town	Anaheim
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92807
City Area Code	714
Local Phone Number	876-2490
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false

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