EACO Corporation Reports Record 1st Quarter Net Sales and Record Quarter Net Income
EACO reported strong financial results for the first quarter ended November 30, 2024. The company achieved record net sales of $93.92 million, representing a 17% increase from $80.26 million in the same quarter last year. Net income surged by 287.2% to $6.89 million, compared to $1.78 million in Q1 2023.
The significant increase in net income reflects both the strong sales growth and the absence of a $3.9 million impairment expense recorded in the previous year's quarter. Earnings per share rose to $1.41, up 291.7% from $0.36 in the prior year period.
The company expanded its workforce to 426 sales employees, a 3% increase year-over-year, and grew its Sales Focus Teams (SFTs) to 112, adding 3 new teams. Management expects continued growth in both headcount and SFTs throughout fiscal year 2025, attributing market share gains to their local presence business model.
EACO ha riportato risultati finanziari forti per il primo trimestre chiuso il 30 novembre 2024. L'azienda ha raggiunto vendite nette record di 93,92 milioni di dollari, con un aumento del 17% rispetto agli 80,26 milioni di dollari nello stesso trimestre dell'anno scorso. Il reddito netto è aumentato del 287,2% a 6,89 milioni di dollari, rispetto a 1,78 milioni di dollari nel primo trimestre del 2023.
Il significativo aumento del reddito netto riflette sia la forte crescita delle vendite che l'assenza di una spesa per impairment di 3,9 milioni di dollari registrata nel trimestre dell'anno precedente. Gli utili per azione sono aumentati a 1,41 dollari, in crescita del 291,7% rispetto a 0,36 dollari nello stesso periodo dell'anno precedente.
L'azienda ha ampliato la propria forza lavoro a 426 dipendenti nelle vendite, con un incremento del 3% rispetto all'anno scorso, e ha incrementato i suoi Team di Focus sulle Vendite (SFT) a 112, aggiungendo 3 nuovi team. La direzione prevede una crescita continua sia nel numero di dipendenti che negli SFT nel corso dell'anno fiscale 2025, attribuendo i guadagni di quota di mercato al loro modello di business basato sulla presenza locale.
EACO reportó resultados financieros sólidos para el primer trimestre finalizado el 30 de noviembre de 2024. La compañía logró ventas netas récord de 93,92 millones de dólares, lo que representa un aumento del 17% respecto a los 80,26 millones de dólares en el mismo trimestre del año pasado. El ingreso neto se disparó un 287,2% a 6,89 millones de dólares, en comparación con 1,78 millones de dólares en el primer trimestre de 2023.
El aumento significativo en el ingreso neto refleja tanto el fuerte crecimiento en las ventas como la ausencia de un gasto por deterioro de 3,9 millones de dólares registrado en el trimestre del año anterior. Las ganancias por acción aumentaron a 1,41 dólares, un incremento del 291,7% desde 0,36 dólares en el período del año pasado.
La empresa amplió su personal a 426 empleados de ventas, un incremento del 3% interanual, y aumentó sus Equipos de Enfoque en Ventas (SFT) a 112, añadiendo 3 nuevos equipos. La dirección espera un crecimiento continuo tanto en el número de empleados como en los SFTs durante el año fiscal 2025, atribuyendo las ganancias de cuota de mercado a su modelo de negocio basado en la presencia local.
EACO 는 2024년 11월 30일에 종료된 첫 분기에 대해 강력한 재무 실적을 보고했습니다. 이 회사는 역대 최대 순매출 9392만 달러를 달성했으며, 이는 지난해 같은 분기의 8026만 달러에서 17% 증가한 수치입니다. 순이익은 287.2% 증가한 689만 달러에 달하며, 2023년 1분기의 178만 달러와 비교됩니다.
순이익의 상당한 증가는 강력한 판매 성장과 함께 지난해 해당 분기에서 기록된 390만 달러의 손상비용이 없어진 것의 결과입니다. 주당 순이익은 1.41달러로 증가하며, 전년 동기 0.36달러에서 291.7% 상승하였습니다.
회사는 판매 직원 수를 426명으로 늘렸으며, 이는 전년 대비 3% 증가한 수치입니다. 또한 판매 초점 팀(SFT)을 112개로 늘리고 3개의 새로운 팀을 추가했습니다. 경영진은 2025 회계연도 동안 직원 수와 SFT의 지속적인 성장을 기대하며, 자사의 지역 존재 비즈니스 모델 덕분에 시장 점유율이 증가하고 있다고 설명했습니다.
EACO a rapporté de solides résultats financiers pour le premier trimestre clos le 30 novembre 2024. La société a enregistré des ventes nettes records de 93,92 millions de dollars, ce qui représente une augmentation de 17 % par rapport aux 80,26 millions de dollars du même trimestre l'année dernière. Le revenu net a bondi de 287,2 % pour atteindre 6,89 millions de dollars, contre 1,78 million de dollars au premier trimestre 2023.
Cette augmentation significative du revenu net reflète à la fois la forte croissance des ventes et l'absence d'une charge de dépréciation de 3,9 millions de dollars enregistrée au trimestre de l'année précédente. Le bénéfice par action a grimpé à 1,41 dollar, en hausse de 291,7 % par rapport à 0,36 dollar pendant la même période l'année précédente.
L'entreprise a élargi sa main-d'œuvre à 426 employés commerciaux, ce qui représente une augmentation de 3 % par rapport à l'année précédente, et a augmenté ses équipes axées sur les ventes (SFT) à 112, ajoutant 3 nouvelles équipes. La direction s'attend à une croissance continue tant en termes d'effectifs que d'équipes SFT tout au long de l'exercice 2025, attribuant les gains de parts de marché à leur modèle commercial basé sur la présence locale.
EACO berichtete für das am 30. November 2024 endende erste Quartal von starken finanziellen Ergebnissen. Das Unternehmen erzielte Rekordnettoverkäufe von 93,92 Millionen Dollar, was einem Anstieg von 17% gegenüber 80,26 Millionen Dollar im selben Quartal des letzten Jahres entspricht. Der Nettogewinn stieg um 287,2% auf 6,89 Millionen Dollar im Vergleich zu 1,78 Millionen Dollar im ersten Quartal 2023.
Der signifikante Anstieg des Nettogewinns spiegelt sowohl das starke Verkaufswachstum als auch das Fehlen eines im Vorjahresquartal erfassten Abschreibungsaufwands von 3,9 Millionen Dollar wider. Der Gewinn pro Aktie stieg auf 1,41 Dollar, ein Anstieg von 291,7% im Vergleich zu 0,36 Dollar im Vorjahreszeitraum.
Das Unternehmen hat die Mitarbeiterzahl auf 426 Vertriebsmitarbeiter erhöht, was einem Anstieg von 3% im Jahresvergleich entspricht, und die Zahl der Verkaufsfokusteams (SFTs) auf 112 erhöht, wobei 3 neue Teams hinzukamen. Das Management erwartet ein kontinuierliches Wachstum sowohl in der Mitarbeiterzahl als auch in den SFTs im Geschäftsjahr 2025 und führt die Marktanteilsgewinne auf ihr Geschäftsmodell mit lokaler Präsenz zurück.
- Record quarterly net sales of $93.92M, up 17% YoY
- Net income increased 287.2% to $6.89M
- Earnings per share grew 291.7% to $1.41
- Sales force expanded by 3% to 426 employees
- Added 3 new Sales Focus Teams, reaching 112 total
- None.
Net sales, net income and earnings per share were as follows for the quarter ended November 30, 2024 (dollars in thousands, except per share information):
|
Three Months Ended
|
% |
||||||||
|
2024 |
2023 |
Change |
|||||||
(unaudited) |
(unaudited) |
|||||||||
|
|
|||||||||
Net sales |
$ |
93,920 |
$ |
80,255 |
17.0 |
% |
||||
|
|
|
|
|||||||
Net income |
$ |
6,888 |
$ |
1,779 |
287.2 |
%* |
||||
|
|
|
|
|||||||
Basic and diluted earnings per common share |
$ |
1.41 |
$ |
0.36 |
291.7 |
% |
||||
| * The increase in net income for the three months ended November 30, 2024 reflects a |
||||||||||
The Company had 426 sales employees at November 30, 2024, an increase of 13 or
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Any statements set forth in this news release that are not entirely historical and factual in nature, including without limitation, statements related to our headcount expansion and future growth are forward-looking statements. 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, and the impact of products offered by our competitors from time to time. 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, |
||||
2024 |
2024 |
||||
ASSETS |
|
|
|||
Current Assets: |
|
|
|||
Cash and cash equivalents |
$ |
591 |
$ |
843 |
|
Restricted cash |
|
10 |
|
10 |
|
Trade accounts receivable, net |
|
51,736 |
|
53,272 |
|
Inventory, net |
|
75,683 |
|
69,602 |
|
Marketable securities, trading |
|
20,521 |
|
14,748 |
|
Prepaid expenses and other current assets |
|
4,489 |
|
3,526 |
|
Total current assets |
|
153,030 |
|
142,001 |
|
Non-current Assets: |
|
|
|||
Property, equipment and leasehold improvements, net |
|
34,759 |
|
35,061 |
|
Operating lease right-of-use assets |
|
6,930 |
|
7,513 |
|
Other assets, net |
|
4,043 |
|
3,963 |
|
Total assets |
$ |
198,762 |
$ |
188,538 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|||
Current Liabilities: |
|
|
|||
Trade accounts payable |
$ |
34,893 |
$ |
28,054 |
|
Accrued expenses and other current liabilities |
|
21,070 |
|
24,910 |
|
Current portion of long-term debt |
|
131 |
|
129 |
|
Current portion of operating lease liabilities |
|
2,596 |
|
2,708 |
|
Total current liabilities |
|
59,690 |
|
55,801 |
|
Non-current Liabilities: |
|
|
|||
Long-term debt |
|
4,181 |
|
4,214 |
|
Operating lease liabilities |
|
4,426 |
|
4,892 |
|
Total liabilities |
|
68,297 |
|
64,907 |
|
Commitments and Contingencies |
|
|
|||
Shareholders’ Equity: |
|
|
|||
Convertible preferred stock, |
|
1 |
|
1 |
|
Common stock, |
|
49 |
|
49 |
|
Additional paid-in capital |
|
12,378 |
|
12,378 |
|
Accumulated other comprehensive income |
|
38 |
|
73 |
|
Retained earnings |
|
117,999 |
|
111,130 |
|
Total shareholders’ equity |
|
130,465 |
|
123,631 |
|
Total liabilities and shareholders’ equity |
$ |
198,762 |
$ |
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 |
|||||
EACO Corporation and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except for share and per share information) (unaudited) |
||||||||
|
||||||||
|
|
Three Months Ended |
||||||
|
|
November 30, |
||||||
|
|
2024 |
|
2023 |
||||
Net sales |
|
$ |
93,920 |
|
|
$ |
80,255 |
|
Cost of sales |
|
|
66,139 |
|
|
|
56,683 |
|
Gross margin |
|
|
27,781 |
|
|
|
23,572 |
|
Operating expenses: |
|
|
|
|
|
|
||
Selling, general and administrative expenses |
|
|
18,938 |
|
|
|
17,217 |
|
Impairment on termination of lease |
|
|
– |
|
|
|
3,906 |
|
Income from operations |
|
|
8,843 |
|
|
|
2,449 |
|
|
|
|
|
|
|
|
||
Other (expense) income: |
|
|
|
|
|
|
||
Net gain (loss) on trading securities |
|
|
454 |
|
|
|
(44 |
) |
Interest and other expense, net |
|
|
(48 |
) |
|
|
(9 |
) |
Other income (expense), net |
|
|
406 |
|
|
|
(53 |
) |
Income before income taxes |
|
|
9,249 |
|
|
|
2,396 |
|
Provision for income taxes |
|
|
2,361 |
|
|
|
617 |
|
Net income |
|
|
6,888 |
|
|
|
1,779 |
|
Cumulative preferred stock dividend |
|
|
(19 |
) |
|
|
(19 |
) |
Net income attributable to common shareholders |
|
$ |
6,869 |
|
|
$ |
1,760 |
|
Basic and diluted earnings per common share: |
|
$ |
1.41 |
|
|
$ |
0.36 |
|
Basic average common shares outstanding |
|
|
4,861,590 |
|
|
|
4,861,590 |
|
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, |
||||||
|
|
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
6,888 |
|
|
$ |
1,779 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
433 |
|
|
|
317 |
|
Bad debt expense |
|
|
66 |
|
|
|
47 |
|
Deferred tax provision |
|
|
(48 |
) |
|
|
(67 |
) |
Net unrealized (gain) loss on trading securities |
|
|
(213 |
) |
|
|
210 |
|
Impairment on termination of lease |
|
|
– |
|
|
|
3,906 |
|
Increase (decrease) in cash from changes in |
|
|
|
|
||||
Trade accounts receivable |
|
|
1,470 |
|
|
|
556 |
|
Inventory |
|
|
(6,081 |
) |
|
|
(3,986 |
) |
Prepaid expenses and other assets |
|
|
(995 |
) |
|
|
(346 |
) |
Operating lease right-of-use assets |
|
|
583 |
|
|
|
5,772 |
|
Trade accounts payable |
|
|
3,328 |
|
|
|
190 |
|
Accrued expenses and other current liabilities |
|
|
(2,840 |
) |
|
|
(2,257 |
) |
Right of use liabilities |
|
|
(578 |
) |
|
|
(5,820 |
) |
Net cash provided by operating activities |
|
|
2,012 |
|
|
|
301 |
|
Investing activities: |
|
|
|
|
||||
Additions to property, equipment, and leasehold improvements |
|
|
(131 |
) |
|
|
(31,701 |
) |
(Purchase) proceeds from sale of marketable securities, trading |
|
|
(5,560 |
) |
|
|
22,791 |
|
Net cash used in investing activities |
|
|
(5,691 |
) |
|
|
(8,910 |
) |
Financing activities: |
|
|
|
|
||||
Borrowing on revolving credit facility |
|
|
– |
|
|
|
3,081 |
|
Payments on long-term debt |
|
|
(31 |
) |
|
|
(31 |
) |
Preferred stock dividend |
|
|
(19 |
) |
|
|
(19 |
) |
Bank overdraft |
|
|
3,511 |
|
|
|
3,650 |
|
Net cash provided by financing activities |
|
|
3,461 |
|
|
|
6,681 |
|
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(35 |
) |
|
|
(131 |
) |
Net (decrease) in cash, cash equivalents, and restricted cash |
|
|
(252 |
) |
|
|
(2,059 |
) |
Cash, cash equivalents, and restricted cash - beginning of period |
|
|
853 |
|
|
|
8,568 |
|
Cash, cash equivalents, and restricted cash - end of period |
|
$ |
601 |
|
|
$ |
6,509 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid for interest |
|
$ |
48 |
|
|
$ |
296 |
|
Cash paid for income taxes |
|
$ |
9,211 |
|
|
$ |
674 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250108013595/en/
Michael Narikawa
EACO Corporation
(714) 876-2490
Source: EACO Corporation
FAQ
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