EX-99.1 2 v115020_ex99-1.htm Unassociated Document
 
EXHIBIT 99.1

PRELIMINARY NOTE: THE FINANCIAL INFORMATION CONTAINED IN THE FOLLOWING PRESS RELEASE WAS SUBSEQUENTLY CORRECTED BY THE COMPANY IN A PRESS RELEASED DATED MAY 16, 2008. PLEASE REFER TO THE PRESS RELEASED DATED MAY 16, 2008 FOR THE COMPANY’S CORRECTED FIRST QUARTER EARNINGS.
 
Eaco Corporation Reports First Quarter Results
 
ANAHEIM, Calif.--(BUSINESS WIRE)--
 
Eaco Corporation (OTCBB:EACO), today reported revenues and operating results for the three months ended April 2, 2008.
 
The net loss for the quarter ended April 2, 2008 was $508,300 ($0.13 per common share) compared to the net loss of $626,900 ($0.17 per common share) for the quarter ended March 28, 2007.
 
EACO CORPORATION
Unaudited Consolidated Statements of Operations
 
     
For the Quarters Ended
  
 
    
Apr 2,
 
 
Mar 28,
  
 
 
 
2008
    
2007
  
Revenues:
              
 Rental revenue
  
$
299,000
  
$
234,200
  
               
Total revenues
    
299,000
    
234,200
  
               
Costs and expenses:
              
 Depreciation and amortization
    
203,100
    
89,300
  
 General and administrative expenses
    
499,900
    
344,700
  
 Loss on disposal of assets
    
--
    
226,100
  
               
Total costs and expenses
    
703,000
    
458,600
  
               
 Loss from operations
    
(404,000
)
  
(226,700
)
               
Investment gain (loss)
    
95,700
    
(104,700
)
Interest and other income
    
62,800
    
29,500
  
Interest expense
    
(216,600
)
  
(125,800
)
 Loss from before income taxes
    
(462,100
)
  
(626,900
)
Benefit from income taxes
    
--
    
--
  
               
 Loss from continuing operations
    
(462,100
)
  
(626,900
)
               
Discontinued operations:
              
Loss from discontinued operations, net
              
 of income tax
    
(46,200
)
  
--
  
               
 Net loss
    
(508,300
)
  
(626,900
)
               
Undeclared cumulative preferred stock
              
 dividend
    
--
    
(19,100
)
               
Net loss attributable to common shareholders
  
$
(508,300
)
$
(646,000
)
               
Basic and diluted loss per share continuing
              
 operations
  
$
(0.12
)
$
(0.17
)
Discontinued operations
    
(0.01
)
  
(0.00
)
               
Net loss
  
$
(0.13
)
$
(0.17
)
               
Basic and diluted weighted average common
              
 shares outstanding
    
3,910,264
    
3,906,800
  
 
EACO CORPORATION
Unaudited Consolidated Balance Sheets
 
 
Apr 2,
 
 
Jan 2,
 
 
 
 
2008
 
 
2008
  
ASSETS 
              
Current assets:               
               
Cash and cash equivalents
  
$
241,000
   $ 1,030,600  
Restricted cash- short-term
     --     1,186,500  
Receivables
     46,400     6,500  
Prepaid and other current assets
     175,200     145,500  
               
 Total current assets
     462,600     2,369,100  
               
Investments, trading
     --     290,700  
Certificate of deposit
     1,154,500     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
     (2,851,400 )   (2,672,700 )
               
 Net property and equipment
     13,126,900     13,305,600  
               
Other assets, principally deferred              
charges, net of accumulated
              
amortization
     891,100     884,400  
   
$
15,635,100
   $ 17,998,300  
               
 LIABILITIES AND SHAREHOLDERS' EQUITY              
Current liabilities:              
Accounts payable
   $ 287,600   $ 341,200  
Securities sold, not yet purchased
     --     786,500  
Accrued liabilities
    
118,700
    
2,425,600
  
Due to related parties
    
1,423,500
    
--
  
Current portion of workers
              
compensation benefit liability
    
265,600
    
132,100
  
               
Current portion of long-term debt
    
193,500
    
173,500
  
Current portion of obligation under
              
capital lease
    
2,400
    
700
  
               
Current portion of accrued loss on
              
sublease contract
    
85,700
    
81,100
  
               
Total current liabilities
    
2,377,000
    
3,940,700
  
               
Deferred rent
    
96,000
    
120,000
  
Deposit liability
    
165,900
    
156,900
  
Workers compensation benefit liability
    
3,478,700
    
3,669,900
  
Long-term debt
    
6,407,600
    
6,473,100
  
Obligations under capital lease
    
2,876,000
    
2,877,900
  
Accrued loss on sublease contract
    
622,100
    
639,800
  
Total liabilities
    
16,023,300
    
17,878,300
  
               
Stockholders' equity:
              
Preferred stock of $.01 par;
              
 authorized 10,000,000 shares;
              
outstanding 36,000 shares at
              
April 2, 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 April 2, 2008 and January 2,
              
 2008
              
     
39,000
    
39,000
  
Additional paid-in capital
    
10,932,600
    
10,932,300
  
Accumulated deficit
    
(11,360,200
)
  
(10,851,700
)
 Total shareholders' equity
    
(388,200
)
  
120,000
  
   
$
15,635,100
  
$
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.