EX-99.1 2 tm2530405d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Michael Narikawa

EACO Corporation

(714) 876-2490 October 30, 2025

 

EACO CORPORATION REPORTS RECORD ANNUAL & QUARTERLY NET SALES AND RECORD ANNUAL & 4TH QUARTER NET INCOME

 

ANAHEIM, CALIFORNIA – EACO Corporation (OTCID:EACO) today reported financial results for its fiscal year ended August 31, 2025.

 

Net sales, net income and earnings per share were as follows for the fiscal year ended August 31, 2025 (dollars in thousands, except per share information):

 

   Three Months Ended August 31,  %
   2025  2024  Change
   (unaudited)  (unaudited)   
    
Net sales  $122,469  $96,520  26.9%
          
Net income  $9,128  $6,490  40.6%
          
Basic earnings per common share  $1.87  $1.33  40.6%

 

   Year Ended August 31,  %
   2025  2024*  Change
   (unaudited)      
    
Net sales  $427,931  $356,231  20.1%
          
Net income  $32,294  $14,951  116.0%
          
Basic earnings per common share  $6.63  $3.06  116.7%

 

* 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.

 

 

The Company had 418 sales employees at August 31, 2025, an increase of 28 or 7.2% from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 116 SFT’s as of August 31, 2025, an increase of 5 from the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2026. The Company believes it continues to gain market share through its local presence business model.

 

The net income for the fiscal year ended August 31, 2024 included extraordinary items of $7.6 million in accrual expense related to an employee class action settlement agreement and an impairment loss of $3.9 million related to the termination of a lease.

 

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955, as amended. These forward-looking statements include, without limitation, statements related to our headcount expansion, growth in market share, and other statement that is not historical information. 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 as well as increases to international tariffs. 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)

   August 31,   August 31, 
   2025   2024* 
ASSETS          
Current Assets:          
  Cash and cash equivalents  $7,370   $843 
  Restricted cash   10    10 
  Trade accounts receivable, net   65,863    53,272 
  Inventory, net   83,980    69,602 
  Marketable securities, trading   30,375    14,748 
  Prepaid expenses and other current assets   5,009    3,526 
Total current assets   192,607    142,001 
Non-current Assets:          
  Property, equipment and leasehold improvements, net   34,670    35,061 
  Operating lease right-of-use assets   6,814    7,513 
  Other assets, net   2,704    3,963 
Total assets  $236,795   $188,538 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current Liabilities:          
  Trade accounts payable  $39,821   $28,054 
  Accrued expenses and other current liabilities   29,762    24,910 
  Current portion of operating lease liabilities   2,843    2,708 
  Current portion of long-term debt   135    129 
Total current liabilities   72,561    55,801 
Non-current Liabilities:          
  Long-term debt   4,079    4,214 
  Operating lease liabilities   4,305    4,892 
Total liabilities   80,945    64,907 
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   74    73 
Retained earnings   143,348    111,130 
Total shareholders’ equity   155,850    123,631 
 Total liabilities and shareholders’ equity  $236,795   $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

August 31,

  

Year Ended

August 31,

 
   2025   2024   2025   2024* 
Revenues  $122,469   $96,520   $427,931   $356,231 
Cost of revenues   85,125    66,835    299,225    250,019 
Gross margin   37,344    29,685    128,706    106,212 
Operating expenses:                    
Selling, general and administrative expenses   25,884    19,842    86,863    80,971 
Impairment on termination of lease   –    –    –    3,906 
Income from operations   11,460    9,843    41,843    21,335 
Other (expense) income:                    
Net gain on trading securities   512    173    1,273    128 
Interest and other expense   (61)   (49)   (204)   (177)
Other income (expense), net   451    124    1,069    (49)
Income before income taxes   11,911    9,967    42,912    21,286 
Provision for income taxes   2,783    3,477    10,618    6,335 
Net income   9,128    6,490    32,294    14,951 
Cumulative preferred stock dividend   (19)   (19)   (76)   (76)
Net income attributable to common shareholders  $9,109   $6,471   $32,218   $14,875 
                     
Basic earnings per common share:  $1.87   $1.33   $6.63   $3.06 
Diluted earnings per common share  $1.86   $1.32   $6.59   $3.05 
Basic weighted average common shares outstanding   4,861,590    4,861,590    4,861,590    4,861,590 
Diluted weighted average common shares outstanding   4,901,590    4,901,590    4,901,590    4,901,590 

 

* 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 Cash Flows

(in thousands)

(unaudited)

 

   Year Ended August 31, 
   2025   2024* 
Operating activities:          
Net income  $32,294   $14,951 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   1,675    1,685 
Bad debt expense   359    454 
Unrealized (gain) loss on trading securities   (469)   324 
Deferred tax provision   1,281    (2,401)
Impairment on termination of lease   –    3,906 
Increase (decrease) in cash flow from change in:          
Trade accounts receivable   (12,950)   (7,072)
Inventory   (14,378)   (13,332)
Prepaid expenses and other assets   (1,505)   407 
Operating lease right-of-use assets   699    2,475 
Trade accounts payable   5,763    6,720 
Accrued expenses and other current liabilities   4,852    8,535 
Operating lease liabilities   (452)   (2,575)
Net cash provided by operating activities   17,169    14,077 
Investing activities:          
Additions to property, equipment, and leasehold improvements   (1,284)   (32,611)
(Purchase) Sale of marketable securities, trading   (15,158)   12,156 
Net cash used in investing activities   (16,442)   (20,455)
Financing activities:          
Repayments on long-term debt   (129)   (125)
Preferred stock dividend   (76)   (76)
Bank overdraft   6,004    (1,171)
Net cash provided by (used in) financing activities   5,799    (1,372)
Effect of foreign currency exchange rate changes on cash and cash equivalents   1    35 
Net increase (decrease) in cash, cash equivalents, and restricted cash   6,527    (7,715)
Cash, cash equivalents, and restricted cash - beginning of period   853    8,568 
Cash, cash equivalents, and restricted cash - end of period  $7,380   $853 
Supplemental disclosures of cash flow information:          
Cash paid for interest  $204   $243 
Cash paid for income taxes  $12,727   $8,505 

  

* 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.