Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

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
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...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
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...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
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 ...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
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.
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
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....
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.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...