Eaco Corporation Reports Third Quarter Results

Thu Nov 20, 6:14 PM

ANAHEIM, Calif.--(BUSINESS WIRE)--Eaco Corporation (OTCBB: EACO.OB), today reported revenues and operating results for the quarter ended October 1, 2008.

The net loss for the quarter ended October 1, 2008 was $460,100 ($0.12 per share) up from a net loss of $289,100 ($0.08 per share) for the quarter ended September 26, 2007.

The net loss for the nine months ended October 1, 2008 was $1,953,200 ($0.50 per share) up from a net loss of $1,914,300 ($0.50 per share) for the nine months ended September 26, 2007.

EACO Corporation

Condensed Consolidated Statements of Operations

                             
(Unaudited) (Unaudited)
Quarters Ended Nine Months Ended
Oct 1, Sept 26, Oct 1, Sept 26,
2008   2007   2008   2007  
Revenues:
Rental revenue $373,800   $262,700   $1,022,200   $696,400  
Total revenues 373,800   262,700   1,022,200   696,400  
 
Cost and expenses:
Depreciation and amortization 181,100 120,800 537,900 371,800
General and administrative
expenses 456,400 413,100 1,416,300 1,315,400
Loss on property purchase
commitments -- -- -- 238,000
Loss on disposition of
equipment --   --   --   226,100  
Total costs and expenses 637,500   533,900   1,954,200   2,151,300  
Loss from operations (263,700 ) (271,200 ) (932,000 ) (1,454,900 )
 
Investment gain (loss) -- 69,400 95,700 (133,900 )
Interest and other income 30,900 13,800 179,300 59,700
Interest expense (227,300 ) (101,100 ) (700,000 ) (385,200 )
Loss from continuing
operations (460,100 ) (289,100 ) (1,357,000 ) (1,914,300 )
 
Discontinued operations:
 
Loss from
discontinued operations --   --   (596,200 ) --  
Net loss (460,100 ) (289,100 ) (1,953,200 ) (1,914,300 )
 
Undeclared cumulative
preferred stock dividend (19,100 ) (19,100 ) (38,200 ) (57,300 )
Net loss attributable
to common shareholders ($479,200 ) ($308,200 )

($1,991,400

)

($1,971,600

)

 
Basic loss per
Share from:
Continuing Operations ($0.12 ) ($0.08 ) ($0.35 ) ($0.50 )
Discontinued operations (0.00 ) (0.00 ) (0.15 ) (0.00 )
Net loss ($0.12 ) ($0.08 ) ($0.50 ) ($0.50 )
Basic weighted average common
shares outstanding 3,910,264 3,906,800 3,910,264 3,906,800
 
 

EACO CORPORATION

Unaudited Condensed Balance Sheets

               
Oct 1, Jan 2,
2008   2008  
ASSETS
Current assets:
Cash and cash equivalents $ 178,100 $ 1,030,600
Restricted cash- short-term -- 1,186,500
Receivables 56,500 6,500
Prepaid and other current assets 56,200   145,500  
Total current assets 290,800 2,369,100
 
Investments, trading -- 290,700
Certificate of deposit 1,155,200 1,148,500
 
Property and equipment:
Land 5,682,800 5,682,800
Building and improvements 7,896,600 7,896,600
Equipment 2,398,900   2,398,900  
15,978,300 15,978,300
Accumulated depreciation (3,136,600 ) (2,672,700 )
Net property and equipment 12,841,700 13,305,600
 
Other assets, principally deferred charges,
net of accumulated amortization 973,900   884,400  
$15,261,600   $17,998,300  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable $461,100 $341,200
Accrued expenses 262,000 2,425,600
Securities sold, not yet purchased -- 786,500
Due to related parties 1,290,600 --
Current portion of workers compensation
benefit liability 265,600 132,100
Current portion of long-term debt 220,100 173,500
Current portion of obligation under
capital lease 6,800 700
Current portion of accrued loss
on sublease contract 178,900   81,100  
Total current liabilities 2,685,100 3,940,700
 
Deferred rent 48,200 120,000
Deposit liability 179,400 156,900
Workers compensation benefit liability 3,222,000 3,669,900
Obligations under capital lease 2,871,600 2,877,900
Long-term debt 7,490,500 6,473,100
Accrued loss on sublease contract 636,400   639,800  
Total liabilities 17,133,200 17,878,300
 
Stockholders’ equity (deficit):
Preferred stock of $.01 par; authorized
10,000,000 shares; outstanding 36,000
shares at October 1, 2008 and
January 2, 2008 (liquidation
value $900,000) 400 400
Common stock of $.01 par; authorized
8,000,000 shares;
outstanding 3,910,264 shares at
October 1, 2008 and
January 2, 2008 39,000 39,000
Additional paid-in capital 10,932,300 10,932,300
Accumulated deficit (12,843,300 ) (10,851,700 )
Total shareholders’
equity (deficit) (1,871,600 ) 120,000  
$15,261,600   $17,998,300  
 
 

Any statements that are not based on historical fact are forward-looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2007 Form 10-K.

Eaco Corporation
Marta Araujo, 714-876-2490