Latest news with #EACO
Business Wire
2 days ago
- Business
- Business Wire
EACO Corporation Reports Record Quarter Net Sales and Record Quarter Net Income
ANAHEIM, Calif.--(BUSINESS WIRE)--EACO Corporation (OTCMKTS:EACO) today reported the results for its quarter ended May 31, 2025. EACO Corporation reports Record Quarter net sales and Record Quarter income. Share Net sales, net income and earnings per share were as follows for the three months ended May 31, 2025 and 2024 (dollars in thousands, except per share information): The Company had 435 sales employees at May 31, 2025, an increase of 36 employees or 9%, from the prior year quarter. The Company's sales force is divided into sales focus teams (SFT's). The Company had 114 SFT's as of May 31, 2025, four more than the prior year quarter. Management anticipates continued growth in both our headcount and SFT's in fiscal year 2025. The Company believes it continues to gain market share through its local presence business model. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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, the impact of products offered by our competitors from time to time, and as well as increases to international tariffs. 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 (unaudited) May 31, 2025 2024* ASSETS Current Assets: Cash and cash equivalents $ 3,613 $ 843 Restricted cash 10 10 Trade accounts receivable, net 59,875 53,272 Inventory, net 82,780 69,602 Marketable securities, trading 22,063 14,748 Prepaid expenses and other current assets 3,491 3,526 Total current assets 171,832 142,001 Non-current Assets: Property, equipment and leasehold improvements, net 34,368 35,061 Operating lease right-of-use assets 6,739 7,513 Other assets, net 3,989 3,963 Total assets $ 216,928 $ 188,538 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Trade accounts payable $ 37,067 $ 28,054 Accrued expenses and other current liabilities 21,494 24,910 Current portion of long-term debt 131 129 Current portion of operating lease liabilities 2,674 2,708 Total current liabilities 61,366 55,801 Non-current Liabilities: Line of Credit 491 – Long-term debt 4,116 4,214 Operating lease liabilities 4,222 4,892 Total liabilities 70,195 64,907 Commitments and Contingencies Note 9 Shareholders' Equity: Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900) 1 1 Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding 49 49 Additional paid-in capital 12,378 12,378 Accumulated other comprehensive income 66 73 Retained earnings 134,239 111,130 Total shareholders' equity 146,733 123,631 Total liabilities and shareholders' equity $ 216,928 $ 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 U.S. Securities and Exchange Commission on November 29, 2024. Expand EACO Corporation and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except for share and per share information) (unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net sales $ 111,410 $ 96,121 $ 305,462 $ 259,711 Cost of sales 77,337 68,193 214,100 183,184 Gross margin 34,073 27,928 91,362 76,527 Operating expenses: Selling, general and administrative expenses 21,627 26,314 60,979 61,129 Impairment on termination of lease - – - 3,906 Income from operations 12,446 1,614 30,383 11,492 Other income (expense): Net gain (loss) on trading securities 277 (24) 761 (45) Interest and other (expense) (46) (44) (143) (128) Other income (expense), net 231 (68) 618 (173) Income before income taxes 12,677 1,546 31,001 11,319 Provision for income taxes 3,162 362 7,835 2,858 Net income 9,515 1,184 23,166 8,461 Cumulative preferred stock dividend (19) (19) (57) (57) Net income attributable to common shareholders $ 9,496 $ 1,165 $ 23,109 $ 8,404 Basic earnings per share: $ 1.95 $ 0.24 $ 4.75 $ 1.73 Diluted earnings per share: $ 1.94 $ 0.24 $ 4.73 $ 1.73 Basic weighted average common shares outstanding 4,861,590 4,861,590 4,861,590 4,861,590 Expand EACO Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Ended May 31, 2025 2024 Operating activities: Net income $ 23,166 $ 8,461 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 1,268 1,247 Bad debt expense 203 359 Deferred tax provision (18) 51 Net unrealized (gain) loss on trading securities (205) 357 Impairment on termination of lease – 3,906 Increase (decrease) in cash flow from change in: Trade accounts receivable (6,806) (7,764) Inventory (13,178) (11,139) Prepaid expenses and other assets 27 98 Operating lease right-of-use assets 774 5,490 Trade accounts payable 6,268 8,043 Accrued expenses and other current liabilities (3,416) 785 Operating lease liabilities (704) (5,501) Net cash provided by operating activities 7,379 4,393 Investing activities: Purchase of property, equipment, and leasehold improvements (575) (32,527) Net (purchases) sales of marketable securities, trading (7,110) 17,466 Net cash used in investing activities (7,685) (15,061) Financing activities: Borrowings on revolving credit facility 491 – Repayments on long-term debt (96) (94) Preferred stock dividend (57) (57) Bank overdraft 2,745 3,066 Net cash provided by financing activities 3,083 2,915 Effect of foreign currency exchange rate changes on cash and cash equivalents (7) (68) Net increase (decrease) in cash, cash equivalents, and restricted cash 2,770 (7,821) Cash, cash equivalents, and restricted cash - beginning of period 853 8,568 Cash, cash equivalents, and restricted cash - end of period $ 3,623 $ 747 Supplemental disclosures of cash flow information: Cash paid for interest $ 143 $ 145 Cash paid for income taxes $ 9,213 $ 8,276 Expand
Zawya
05-05-2025
- Business
- Zawya
Africa's eyesore as electronic waste piles up on low quality, fakes influx
An influx of short-lived electronic devices, including mobile phones, computing devices, chargers, and household appliances, which break down easily due to poor manufacturing standards, is leaving an ill-equipped Africa with electronic waste crisis, warn sector players. According to director general and chief executive of the Communications Authority of Kenya (CA) David Mugonyi, these are now undermining efforts to build a sustainable and circular economy."A surge in the importation of counterfeit and low-quality electronic products and end-user devices which have a shorter lifespan and generate a large amount of e-waste, have aggravated the situation, and endanger the entire value chain," said Mr Mugonyi, at the seventh edition of the East African Communication Organization (EACO) Regional Conference on Sustainable E-waste Management held in Nairobi. In Kenya alone, the Anti-Counterfeit Authority (ACA) estimates annual losses of Ksh85 billion–Ksh100 billion ($653 million -$769 million) to counterfeit trade, with electronics among the hardest-hit segments. Mr Mugonyi blamed the flooding of the markets with inferior products that generate unsustainable volumes of waste on the lack of strict import controls and enforcement mechanisms. Read: E-waste rise in EA worries tech providers, linked to public health issuesAccording to executive director EACO Dr Ally Simba, the problem is regional in scale. In 2019 alone, Africa generated 2.9 million tonnes of e-waste, a number that has since increased. Yet only a fraction of countries in the region have the infrastructure to collect, repair, or recycle electronics. In Nigeria, Ghana, and the Democratic Republic of Congo—some of the largest e-waste hotspots in West and Central Africa—informal recycling remains the norm, often involving dangerous practices such as open burning or acid baths."With millions of these reaching end-of-life each year across the region, the challenge of safe disposal is mounting," he said. Globally, 62 million metric tonnes of e-waste were generated in 2022, according to a joint statement by the International Telecommunication Union (ITU) and United Nations Institute for Training and Research (UNITAR). That number is projected to reach 82 million tonnes by 2030. Alarmingly, only 22.3 percent of e-waste produced globally is formally collected and recycled—and in Africa, that figure drops below one percent. Stanley Kamanguya, chief executive of the ICT Authority, noted that Africa is fast approaching an annual e-waste generation of five million tonnes. "This is a serious obstacle to our goal of digital transformation," he said. "It demands a fundamental shift—not only in how we manage existing e-waste, but also in how we design, use, and dispose of future digital devices."He said to address this, Kenya has established a national e-waste management facility as part of its National Digital Master Plan. In the current financial year, the ICT Authority aims to collect 100,000 end-of-life devices from government agencies and offices in the current financial year."We've already recovered 30,000 devices, and half have been assessed for potential reuse—whether for schools, NGOs, or repair training centers," Kamanguya noted. "This is a small but essential step toward creating a circular economy."Director of Environmental Enforcement at the National Environment Management Authority (Nema), Dr Ayub Macharia, said that only a handful of facilities in Kenya are currently capable of extracting valuable materials from e-waste, while the rest is often left as toxic residual waste. In response, Kenya enacted the Sustainable Waste Management Act in 2022, followed by new Extended Producer Responsibility (EPR) regulations in 2024. Under the regulations, all producers must declare the volume of electronics they bring into the market and present detailed plans for reuse, recycling, or environmentally sound disposal. A compliance deadline of May 4 has been set for all producers to register with PROs and submit waste management reports aligned with government regulations. Other countries in the region are following suit. Rwanda recently launched a national e-waste dismantling facility capable of handling up to 10,000 tons annually. Repair and recycling hubsIn Ethiopia, the government has partnered with UNDP to establish repair and recycling hubs in urban centers. Uganda has piloted an e-waste take-back programme with telecom providers, encouraging users to return old phones in exchange for service discounts. At the seventh regional e-waste conference held in Nairobi last week, experts from across East Africa emphasized the importance of harmonizing e-waste policies to enable cross-border cooperation to combat illegal dumping and facilitate cross-border recycling. Dr Simba outlined a regional roadmap that includes extended producer responsibility, circular economy promotion, and zero-impact waste management strategies. Read: High-end cellphone makers cut out accessories to curb e-waste menace"We must treat e-waste not as trash, but as a resource," said Dr Simba. "There's gold, copper, rare earths—all recoverable with the right technology and investment. With proper incentives, we can build an industry that protects the environment and creates jobs."The conference also highlighted the urgency of formalizing the informal sector, which currently handles over 90percent of Africa's e-waste but lacks safety training and equipment. Governments were urged to offer technical support, legal frameworks, and micro-financing to help these workers transition to safe and regulated recycling. The United Nations warns that e-waste is growing five times faster than documented recycling efforts. If left unchecked, Africa risks becoming a global dumping ground for digital waste, threatening both its environment and its ambitions for digital transformation."This is not just an environmental crisis—it's a public health, economic, and social justice issue," said Mr Mugonyi. "We must act collectively, urgently, and boldly."
