Welcome!

.NET Authors: Trevor Parsons, Peter Silva, Yeshim Deniz, Pat Romanski, Adine Deford

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
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. 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 - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.