EX-99.1 2 tm262838d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Michael Narikawa

EACO Corporation

(714) 876-2490 January 8, 2026

 

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

 

ANAHEIM, CALIFORNIA January 8, 2026 – EACO Corporation (OTCID:EACO) announced the results for its quarter ended November 30, 2025.

 

Net sales, net income and earnings per share were as follows for the quarter ended November 30, 2025 (dollars in thousands, except per share information):

 

    Three Months Ended
November 30,		     %  
    2025     2024     Change  
    (unaudited)       (unaudited)        
Net sales   $ 110,953     $ 93,920       18.1 %
                         
Net income   $ 9,320     $ 6,888       35.3 %
                         
Basic earnings per common share   $ 1.91     $ 1.41       35.5 %

 

The Company had 471 sales employees at November 30, 2025, an increase of 45 or 10.6% 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 November 30, 2025, an increase of 4 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.

 

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)

 

   November 30,   August 31, 
    2025    2025* 
ASSETS          
Current Assets:          
Cash and cash equivalents  $537   $728 
Restricted cash   10    10 
Trade accounts receivable, net   57,511    65,863 
Inventory, net   88,605    83,980 
Marketable securities, trading   29,719    30,375 
Prepaid expenses and other current assets   6,091    5,009 
Total current assets   182,473    185,965 
Non-current Assets:          
Property, equipment and leasehold improvements, net   35,419    34,670 
Operating lease right-of-use assets   8,943    6,814 
Other assets, net   2,743    2,704 
Total assets  $229,578   $230,153 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current Liabilities:          
Trade accounts payable  $33,478   $33,179 
Accrued expenses and other current liabilities   17,394    29,762 
Current portion of long-term debt   137    135 
Current portion of operating lease liabilities   3,208    2,843 
Total current liabilities   54,217    65,919 
Non-current Liabilities:          
Long-term debt   4,045    4,079 
Operating lease liabilities   6,173    4,305 
Total liabilities   64,435    74,303 
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   66    74 
Retained earnings   152,649    143,348 
Total shareholders’ equity   165,143    155,850 
Total liabilities and shareholders’ equity  $229,578   $230,153 

 

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

 

 

 

 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

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

(unaudited)

 

   Three Months Ended 
   November 30, 
   2025   2024 
Net sales  $110,953   $93,920 
Cost of sales   76,598    66,139 
Gross margin   34,355    27,781 
Operating expenses:          
Selling, general and administrative expenses   21,846    18,938 
Income from operations   12,509    8,843 
           
Other (expense) income:          
Net gain on trading securities   43    454 
Interest and other (expense), net   (37)   (48)
Other income, net   6    406 
Income before income taxes   12,515    9,249 
Provision for income taxes   3,195    2,361 
Net income   9,320    6,888 
Cumulative preferred stock dividend   (19)   (19)
Net income attributable to common shareholders  $9,301   $6,869 
Basic earnings per common share:  $1.91   $1.41 
Basic weighted average common shares outstanding   4,861,590    4,861,590 
Diluted earnings per common share:  $1.90   $1.41 
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, 
   2025   2024 
Operating activities:          
Net income  $9,320   $6,888 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   428    433 
Bad debt expense   29    66 
Deferred tax provision   (5)   (48)
Net unrealized loss (gain) on trading securities   241    (213)
Increase (decrease) in cash from changes in          
Trade accounts receivable   8,323    1,470 
Inventory   (4,625)   (6,081)
Prepaid expenses and other assets   (1,116)   (995)
Operating lease right-of-use assets   (2,129)   583 
Trade accounts payable   (914)   3,328 
Accrued expenses and other current liabilities   (12,368)   (2,840)
Right of use liabilities   2,233    (578)
Net cash (used in) provided by operating activities   (583)   2,013 
Investing activities:          
Additions to property, equipment, and leasehold improvements   (1,177)   (131)
Sale (purchase) of marketable securities, trading   415    (5,560)
Net cash used in investing activities   (762)   (5,691)
Financing activities:          
Borrowing on revolving credit facility   3    – 
Payments on long-term debt   (35)   (31)
Preferred stock dividend   (19)   (19)
Bank overdraft   1,213    3,511 
Net cash provided by financing activities   1,162    3,461 
Effect of foreign currency exchange rate changes on cash and cash equivalents   (8)   (35)
Net (decrease) in cash, cash equivalents, and restricted cash   (191)   (252)
Cash, cash equivalents, and restricted cash - beginning of period   738    853 
Cash, cash equivalents, and restricted cash - end of period  $547   $601 
Supplemental disclosures of cash flow information:          
Cash paid for interest  $37   $48 
Cash paid for income taxes  $6,982   $9,211