Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

News Feed Item

EACO Corporation Reports Fourth Consecutive Quarter of Double Digit Sales Growth

EACO Corporation (OTCQB:EACO) today reported the results for the first quarter ending November 30, 2012.

Net sales, net income and earnings per share were as follows for the three months ended November 30, 2012 (dollars in thousands, except per share information):

 
  Three Months Ended November 30,  
2012   2011 Change
(unaudited)
 
 
Net sales/revenue $ 29,260 $ 26,461 11 %
 
Net income $ 383 $ 625 (39 )%
 
Basic and diluted earnings per common share $ 0.08 $ 0.12 (33 )%
 

As of November 30, 2012, the Company’s sales team numbered 304 employees an increase of 12% from 272 employees on November 30, 2011. The Company’s sales force is divided into Sales Focus Teams (SFTs). The Company had 85 SFTs as of November 30, 2012, an increase of 4% from 82 SFTs on November 30, 2011, with the average size going from 3.3 employees to 3.7 employees per SFT.

The current annual estimated North American market for the products the Company distributes is $6.7 billion. The Company’s current estimated market share is 1.7%.

 

EACO Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share information)

 
 

November 30,

  August 31,
2012 2012
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 2,139 $ 2,568
Restricted cash, current 831 --
Trade accounts receivable, net 14,046 13,972
Inventory, net 13,074 12,189
Marketable securities, trading 398 197
Prepaid expenses and other current assets 472 464
Assets held for sale 1,521 1,521
Deferred tax asset, current   265   290
Total current assets 32,746 31,201
 
Non-current Assets:
Restricted cash, non-current 549 548
Real estate properties held for leasing, net 8,201 8,253
Equipment and leasehold improvements, net 1,332 1,106
Deferred tax asset 2,053 2,111
Other assets, principally deferred charges, net of accumulated amortization   788   1,110
Total assets $ 45,669 $ 44,329
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
Current Liabilities:
Trade accounts payable $ 10,352 $ 9,519
Accrued expenses and other current liabilities 1,850 2,482
Liability for short sales of trading securities 831 --
Liabilities of discontinued operations – short-term 146 146
Liabilities of assets held for sale 1,163 1,113
Current portion of long-term debt   430   555
Total current liabilities 14,772 13,815
 
Non-current Liabilities:
Liabilities of discontinued operations – long-term 2,528 2,567
Deposit liability 73 147
Long-term debt   12,939   12,907
Total liabilities 30,312 29,436
 
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding at November 30, 2012 and August 31, 2012 (liquidation value $900) 1 1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding at November 30, 2012 and August 31, 2012 49 49
Additional paid-in capital 12,378 12,378
Accumulated other comprehensive income 557 478
Retained earnings   2,372   1,987
Total shareholders’ equity   15,357   14,893
Total liabilities and shareholders’ equity $ 45,669 $ 44,329
 
 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

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

(Unaudited)

 
  Three Months Ended
November 30,
2012   2011
Sales $ 29,260 $ 26,461
Cost of goods sold   21,159     19,071  
Gross profit   8,101     7,390  
 
Operating expenses:
Selling, general and administrative expenses   7,260     6,530  
Total operating expenses   7,260     6,530  
Income from operations 841 860
 
Non-operating income (expense):
Gain on sale of trading securities 33 --
Unrealized (loss) gain on trading securities (55 ) 193
Interest expense, net   (167 )   (181 )
Total non-operating (expense) income   (189 )   12  
Net income before income taxes 652 872
Provision for income taxes   269     247  
Net income 383 625
Cumulative preferred stock dividend   (19 )   (19 )
 
Net income attributable to common shareholders $ 364   $ 606  
 
Basic and diluted earnings per share $ 0.08 $ 0.12
 
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,

2012   2011
 
Operating activities:
Net income $ 383 $ 625
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 180 188
Bad debt recovery (18 ) --
Change in inventory reserve (62 ) (15 )
Net gain on trading securities (22 ) (193 )
(Increase) decrease in:
Trade accounts receivable (56 ) 6
Inventory (823 ) (1,291 )
Prepaid expenses and other assets 305 108
Deferred tax asset 83 152
Increase (decrease) in:
Trade accounts payable 142 298
Accrued expenses and other current liabilities (582 ) (815 )
Deposit liability (74 ) --
Liabilities of discontinued operations   (39 )   (27 )
Net cash used in operating activities   (583 )   (964 )
 
Investing activities:
Purchase of property and equipment (345 ) (155 )
Purchase of marketable securities, trading (179 ) (86 )
Short sales of marketable securities 831 --
Change in restricted cash   (832 )   (4 )
Net cash used in investing activities   (525 )   (245 )
 
Financing activities:
Net borrowings (payments) on revolving credit facility 150 (700 )
Bank overdraft 691 261
Preferred dividend (19 ) --
Borrowing of long-term debt -- 1,600
Payments on long-term debt   (243 )   (192 )
Net cash provided by financing activities   579     969  
Effect of foreign currency exchange rate changes on cash and cash equivalents   100     224  
Net decrease in cash and cash equivalents (429 ) (16 )
 
Cash and cash equivalents - beginning of period   2,568     1,368  
Cash and cash equivalents - end of period $ 2,139   $ 1,352  
 
Supplemental disclosures of cash flow information:
Cash paid for interest $ 169   $ 186  
 
Cash paid for taxes $ 196   $ 415  

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.

@ThingsExpo Stories
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. 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...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
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 ...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...