EACO Corporation Reports Record Annual & Quarterly Net Sales and Record Quarter Net Income
EACO reported financial results for fiscal year 2024, showing mixed performance. Q4 demonstrated strong growth with net sales reaching $96,520,000 (up 12.4%) and net income of $6,546,000 (up 8.1%). However, while annual net sales increased 11.5% to $356,231,000, annual net income decreased 29.2% to $15,007,000. The company expanded its workforce to 427 sales employees (up 8%) and increased Sales Focus Teams to 111. The annual performance was impacted by $7.6 million in employee class action settlement expenses and a $3.9 million lease termination impairment loss.
EACO ha riportato i risultati finanziari per l'anno fiscale 2024, mostrando prestazioni miste. Il quarto trimestre ha dimostrato una forte crescita con vendite nette che hanno raggiunto $96.520.000 (in aumento del 12,4%) e un reddito netto di $6.546.000 (in aumento dell'8,1%). Tuttavia, sebbene le vendite nette annuali siano aumentate dell'11,5% a $356.231.000, il reddito netto annuale è diminuito del 29,2% a $15.007.000. L'azienda ha ampliato la sua forza lavoro a 427 dipendenti alle vendite (in aumento dell'8%) e ha aumentato i Sales Focus Teams a 111. Le performance annuali sono state influenzate da $7,6 milioni in spese per la liquidazione di causa collettiva per dipendenti e una perdita di impairment per risoluzione di leasing di $3,9 milioni.
EACO informó sobre los resultados financieros del año fiscal 2024, mostrando un desempeño mixto. El cuarto trimestre demostró un fuerte crecimiento, con ventas netas alcanzando $96,520,000 (aumento del 12.4%) y un ingreso neto de $6,546,000 (aumento del 8.1%). Sin embargo, aunque las ventas netas anuales aumentaron un 11.5% a $356,231,000, el ingreso neto anual disminuyó un 29.2% a $15,007,000. La compañía amplió su fuerza laboral a 427 empleados en ventas (un aumento del 8%) y aumentó los Equipos de Enfoque en Ventas a 111. El desempeño anual se vio afectado por $7.6 millones en gastos de liquidación de demandas colectivas de empleados y una pérdida por deterioro por terminación de arrendamiento de $3.9 millones.
EACO는 2024 회계연도 재무 결과를 발표했으며, 혼합된 성과를 보였습니다. 4분기에는 순매출이 $96,520,000(12.4% 증가)에 이르고, 순이익이 $6,546,000(8.1% 증가)으로 강한 성장을 나타냈습니다. 그러나 연간 순매출은 11.5% 증가하여 $356,231,000에 이르렀지만, 연간 순이익은 29.2% 감소하여 $15,007,000에 달했습니다. 회사는 427명의 영업 직원(8% 증가)으로 인력을 확대하고, 111개의 영업 집중 팀(Sales Focus Teams)을 증대시켰습니다. 연간 성과는 직원 집단 소송 합의 비용으로 $7.6백만 달러와 임대 계약 종료 손상 손실로 $3.9백만 달러가 영향을 미쳤습니다.
EACO a annoncé les résultats financiers pour l'exercice 2024, montrant des performances mixtes. Le quatrième trimestre a montré une forte croissance avec des ventes nettes atteignant 96 520 000 $ (en hausse de 12,4 %) et un revenu net de 6 546 000 $ (en hausse de 8,1 %). Cependant, bien que les ventes nettes annuelles aient augmenté de 11,5 % pour atteindre 356 231 000 $, le revenu net annuel a diminué de 29,2 % à 15 007 000 $. L'entreprise a élargi sa main-d'œuvre à 427 employés de vente (en hausse de 8 %) et a augmenté les équipes de contenu des ventes à 111. La performance annuelle a été impactée par 7,6 millions de dollars en frais de règlement de recours collectif pour les employés et une perte de dépréciation en raison de la résiliation de bail de 3,9 millions de dollars.
EACO hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht, die ein gemischtes Ergebnis zeigen. Im vierten Quartal wurde ein starkes Wachstum verzeichnet, mit Nettoumsätzen von $96.520.000 (ein Anstieg von 12,4%) und einem Nettogewinn von $6.546.000 (ein Anstieg von 8,1%). Obwohl die jährlichen Nettoumsätze um 11,5% auf $356.231.000 stiegen, sank der jährliche Nettogewinn um 29,2% auf $15.007.000. Das Unternehmen hat die Mitarbeiterzahl auf 427 Verkaufsmitarbeiter (8% mehr) erhöht und die Sales Focus Teams auf 111 ausgeweitet. Die Jahresleistung wurde durch $7,6 Millionen an Ausgaben für die Einigung in einer Klage von Mitarbeitern und einen Verlust im Zusammenhang mit der Beendigung eines Mietverhältnisses in Höhe von $3,9 Millionen beeinträchtigt.
- Q4 net sales increased 12.4% to $96.52M
- Q4 net income grew 8.1% to $6.55M
- Annual net sales rose 11.5% to $356.23M
- Sales force expanded by 8% to 427 employees
- Added 4 new Sales Focus Teams, reaching 111 total
- Annual net income declined 29.2% to $15.01M
- $7.6M expense for employee class action settlement
- $3.9M impairment loss from lease termination
- Earnings per share decreased 29.3% to $3.07 annually
Net sales, net income and earnings per share were as follows for the fiscal year ended August 31, 2024 (dollars in thousands, except per share information):
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Three Months Ended August 31, |
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2024 |
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2023 |
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Change |
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(unaudited) |
(unaudited) |
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Net sales |
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Net income |
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Basic and diluted earnings per common share |
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Year Ended August 31, |
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% |
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2024 |
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2023* |
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Change |
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(unaudited) |
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Net sales |
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Net income |
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( |
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Basic and diluted earnings per common share |
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( |
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2023 filed with the
The Company had 427 sales employees at August 31, 2024, an increase of 33 or
The net income for the fiscal year ended 2024 included extraordinary items of
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, 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) |
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August 31, |
August 31, |
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2024 |
2023* |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ |
843 |
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$ |
8,558 |
Restricted cash |
|
10 |
|
|
10 |
Trade accounts receivable, net |
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53,272 |
|
|
46,654 |
Inventory, net |
|
69,602 |
|
|
56,270 |
Marketable securities, trading |
|
14,748 |
|
|
27,228 |
Prepaid expenses and other current assets |
|
3,526 |
|
|
3,843 |
Total current assets |
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142,001 |
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|
142,563 |
Non-current Assets: |
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|
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Property, equipment and leasehold improvements, net |
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35,139 |
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|
8,041 |
Operating lease right-of-use assets |
|
7,513 |
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|
9,988 |
Other assets, net |
|
3,963 |
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|
1,652 |
Total assets |
$ |
188,616 |
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$ |
162,244 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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|
|
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Trade accounts payable |
$ |
28,054 |
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$ |
22,505 |
Accrued expenses and other current liabilities |
|
24,933 |
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|
16,375 |
Current portion of operating lease liabilities |
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2,708 |
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|
3,950 |
Current portion of long-term debt |
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129 |
|
|
120 |
Total current liabilities |
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55,824 |
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42,950 |
Non-current Liabilities: |
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Long-term debt |
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4,214 |
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4,348 |
Operating lease liabilities |
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4,892 |
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6,225 |
Total liabilities |
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64,930 |
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53,523 |
Commitments and Contingencies |
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Shareholders’ Equity: |
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Convertible preferred stock, |
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1 |
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1 |
Common stock, |
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49 |
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49 |
Additional paid-in capital |
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12,378 |
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12,378 |
Accumulated other comprehensive income |
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72 |
|
|
38 |
Retained earnings |
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111,186 |
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|
96,255 |
Total shareholders’ equity |
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123,686 |
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|
108,721 |
Total liabilities and shareholders’ equity |
$ |
188,616 |
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$ |
162,244 |
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2023 filed with the
EACO Corporation and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except for share and per share information) (unaudited) |
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Three Months Ended
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Year Ended
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2024 |
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2023 |
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2024 |
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2023* |
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Revenues |
$ |
96,520 |
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$ |
85,904 |
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$ |
356,231 |
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$ |
319,397 |
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Cost of revenues |
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66,835 |
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60,656 |
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250,019 |
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226,981 |
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Gross margin |
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29,685 |
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25,248 |
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106,212 |
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92,416 |
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Operating expenses: |
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Selling, general and administrative expenses |
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19,763 |
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17,368 |
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80,892 |
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64,936 |
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Impairment on termination of lease |
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– |
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– |
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3,906 |
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– |
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Income from operations |
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9,922 |
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7,880 |
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21,414 |
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27,480 |
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Other (expense) income: |
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Net gain on trading securities |
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173 |
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|
500 |
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|
128 |
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|
1,284 |
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Interest and other expense |
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(49 |
) |
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(21 |
) |
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(177 |
) |
|
(59 |
) |
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Other income (expense), net |
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124 |
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|
479 |
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(49 |
) |
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1,225 |
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Income before income taxes |
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10,046 |
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|
8,359 |
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21,365 |
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|
28,705 |
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Provision for income taxes |
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3,500 |
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2,304 |
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|
6,358 |
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|
7,520 |
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Net income |
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6,546 |
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|
6,055 |
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|
15,007 |
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|
21,185 |
|
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Cumulative preferred stock dividend |
|
(19 |
) |
|
(19 |
) |
|
(76 |
) |
|
(76 |
) |
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Net income attributable to common shareholders |
$ |
6,527 |
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$ |
6,036 |
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$ |
14,931 |
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$ |
21,109 |
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Basic and diluted earnings per common share: |
$ |
1.34 |
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$ |
1.24 |
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$ |
3.07 |
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$ |
4.34 |
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Basic and diluted weighted average common shares outstanding |
|
4,861,590 |
|
|
4,861,590 |
|
|
4,861,590 |
|
|
4,861,590 |
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* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2023 filed with the
EACO Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
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Year Ended August 31, |
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2024 |
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2023* |
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Operating activities: |
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|
|
|
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Net income |
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$ |
15,007 |
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|
$ |
21,185 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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|
|
|
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Depreciation and amortization |
|
|
1,685 |
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|
|
1,398 |
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Bad debt expense |
|
|
454 |
|
|
|
614 |
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Unrealized loss (gain) on trading securities |
|
|
324 |
|
|
|
(448 |
) |
Deferred tax provision |
|
|
(2,380 |
) |
|
|
(277 |
) |
Impairment on termination of lease |
|
|
3,906 |
|
|
|
– |
|
Increase (decrease) in cash flow from change in: |
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|
|
|
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Trade accounts receivable |
|
|
(7,072 |
) |
|
|
(2,631 |
) |
Inventory |
|
|
(13,332 |
) |
|
|
(7,462 |
) |
Prepaid expenses and other assets |
|
|
386 |
|
|
|
829 |
|
Operating lease right-of-use assets |
|
|
2,475 |
|
|
|
401 |
|
Trade accounts payable |
|
|
6,668 |
|
|
|
(1,150 |
) |
Accrued expenses and other current liabilities |
|
|
8,610 |
|
|
|
1,355 |
|
Operating lease liabilities |
|
|
(2,575 |
) |
|
|
(392 |
) |
Net cash provided by operating activities |
|
|
14,156 |
|
|
|
13,422 |
|
Investing activities: |
|
|
|
|
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Additions to property, equipment, and leasehold improvements |
|
|
(32,689 |
) |
|
|
(960 |
) |
Sale (purchase) of marketable securities, trading |
|
|
12,156 |
|
|
|
(22,855 |
) |
Net cash used in investing activities |
|
|
(20,533 |
) |
|
|
(23,815 |
) |
Financing activities: |
|
|
|
|
||||
Repayments on long-term debt |
|
|
(125 |
) |
|
|
(116 |
) |
Preferred stock dividend |
|
|
(76 |
) |
|
|
(76 |
) |
Bank overdraft |
|
|
(1,171 |
) |
|
|
1,893 |
|
Net cash (used in) provided by financing activities |
|
|
(1,372 |
) |
|
|
1,701 |
|
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
34 |
|
|
|
(136 |
) |
Net (decrease) in cash, cash equivalents, and restricted cash |
|
|
(7,715 |
) |
|
|
(8,828 |
) |
Cash, cash equivalents, and restricted cash - beginning of period |
|
|
8,568 |
|
|
|
17,396 |
|
Cash, cash equivalents, and restricted cash - end of period |
|
$ |
853 |
|
|
$ |
8,568 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
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Cash paid for interest |
|
$ |
243 |
|
|
$ |
202 |
|
Cash paid for income taxes |
|
$ |
8,505 |
|
|
$ |
7,473 |
|
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2023 filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241121945132/en/
Michael Narikawa
EACO Corporation
(714) 876-2490
Source: EACO Corporation
FAQ
What was EACO's net sales growth in Q4 2024?
How much did EACO's annual net income decline in fiscal 2024?
What extraordinary expenses did EACO incur in fiscal 2024?
How many sales employees did EACO have as of August 31, 2024?
