EX-99 2 press.txt EXHIBIT 99.1 PRESS RELEASE EXHIBIT 99.1 Michael Bains Eaco Corporation (714) 876-2490 May 9, 2006 EACO CORPORATION REPORTS FIRST QUARTER RESULTS ______________________________________________ ANAHEIM, CALIFORNIA - Eaco Corporation (OTCBB:EACO), today reported revenues and operating results for the first quarter ended March 29, 2006. The net loss for the first quarter of 2006 was $120,700 ($.04 per share) compared to net income of $258,200 ($.07 per share) for the same period in 2005. Loss from continuing operations for the first quarter of 2006 was $120,700 ($.04 per share) compared to a loss of $1,112,900 ($.30 per share) for the same period in 2005. As previously announced, the Company sold all of its operating restaurants on June 30, 2005. The operating results of these sold restaurants are reported as "Income from Discontinued Operations" for the 1st quarter of 2005. Since the sale of the restaurants the Company's core business has been its real estate holdings. The Company continues to pursue acquisitions of operating businesses and investments while reducing general and administrative expenses. EACO Corporation ________________ Consolidated Results of Operations __________________________________ (Unaudited) ___________
For The Three Months Ended ________________ March March 29, 30, 2006 2005 ________ _______ Revenues: Rental income $231,900 $66,800 -------- ------- Total revenues: 231,900 66,800 -------- ------- Costs and expenses: Depreciation and amortization 73,400 53,100 General and administrative expenses 368,200 712,100 Loss on equipment disposition 17,000 19,200 ------- ------- Total costs and expenses 458,600 784,400 ------- ------- Loss from operations -226,700 -717,600 Investment (loss) gain 165,300 0 Interest and other income 320,300 -12,700 Interest expense -121,100 -382,579 -------- -------- Loss from continuing operations before income taxes -192,800 -1,112,900 Income tax benefit 72,100 0 -------- ---------- Loss from continuing operations -120,700 -1,112,900 Discontinued operations: Income from discontinued operations 0 1,371,100 -------- --------- Net income (loss) -120,700 258,200 Cumulative preferred stock dividend -19,100 -19,100 -------- --------- Net income (loss) available (attributable) to common shareholders -$139,800 $239,100 ========= ========= Basic income (loss) per share Continuing operations -$0.04 -$0.30 Discontinued operations 0.00 0.36 --------- --------- Net income (loss) -$0.04 $0.06 ========= ========= Basic weighted average common shares outstanding 3,906,800 3,790,000 ========= ========= Diluted income (loss) per share Continuing operations -$0.04 -$0.30 Discontinued operations 0.00 0.36 --------- --------- Net income (loss) -$0.04 $0.06 ========= ========= Diluted weighted average common shares outstanding 3,906,800 3,790,000 ========= =========