Exhibit 99.1

 

Michael Narikawa  
EACO Corporation  
(714) 876-2490 October 28, 2026

 

EACO CORPORATION REPORTS RECORD ANNUAL & QUARTERLY NET SALES AND RECORD ANNUAL & QUARTERLY NET INCOME

 

ANAHEIM, CALIFORNIA – EACO Corporation (OTCID:EACO) today reported financial results for its fiscal year ended August 31, 2026.

 

Net sales, net income and earnings per share were as follows for the fiscal year ended August 31, 2026 (dollars in thousands, except per share information):

  

   Three Months Ended August 31,   % 
   2026   2025   Change 
   (unaudited)   (unaudited)     
Net sales  $163,890   $122,469    33.8%
                
Net income  $15,511   $9,128    69.9%
                
Basic earnings per common share  $3.19   $1.87    70.6%

 

   Year Ended August 31,   % 
   2026   2025*   Change 
   (unaudited)        
Net sales  $535,029   $427,931    25.0%
                
Net income  $48,193   $32,294    49.2%
                
Basic earnings per common share  $9.90   $6.63    49.3%

 

*Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

 

The Company had 500 sales employees at August 31, 2026, an increase of 43 or 9.4% from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 124 SFT’s as of August 31, 2026, an increase of 8 from the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2027. The Company believes it continues to gain market share through its local presence business model.

 

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, the impact of products offered by our competitors from time to time, and as well as uncertainty pertaining to economic uncertainty, international tariffs, and international conflicts. 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)

 

   August 31,   August 31, 
   2026   2025* 
ASSETS          
Current Assets:          
Cash and cash equivalents  $647   $728 
Restricted cash   10    10 
Trade accounts receivable, net   86,650    65,863 
Inventory, net   96,898    83,980 
Marketable securities, trading   44,940    30,375 
Prepaid expenses and other current assets   6,977    5,009 
Total current assets   236,122    185,965 
Non-current Assets:          
Property, equipment and leasehold improvements, net   36,178    34,670 
Operating lease right-of-use assets   9,302    6,814 
Other assets, net   2,378    2,704 
Total assets  $283,980   $230,153 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current Liabilities:          
Trade accounts payable  $47,471   $33,179 
Accrued expenses and other current liabilities   18,647    29,762 
Current portion of operating lease liabilities   4,079    2,843 
Current portion of long-term debt   3,693    135 
Total current liabilities   73,890    65,919 
Non-current Liabilities:          
Long-term debt   –    4,079 
Operating lease liabilities   6,171    4,305 
Total liabilities   80,061    74,303 
Commitments and Contingencies          
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   26    74 
Retained earnings   191,465    143,348 
Total shareholders’ equity   203,919    155,850 
Total liabilities and shareholders’ equity  $283,980   $230,153 

 

*Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

 

 

 

 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except for share and per share information)

(unaudited)

 

    Three Months Ended
August 31,		     Year Ended
August 31,		  
    2026     2025     2026     2025*  
Revenues   $ 163,888     $ 122,469     $ 535,027     $ 427,931  
Cost of revenues     110,874       85,125       366,985       299,225  
Gross margin     53,014       37,344       168,042       128,706  
Operating expenses:                                
Selling, general and administrative expenses     31,770       25,884       103,500       86,863  
Income from operations     21,244       11,460       64,542       41,843  
Other (expense) income:                                
Net gain on trading securities     605       512       1,315       1,273  
Interest and other expense     (45 )     (61 )     (175 )     (204 )
Other income (expense), net     560       451       1,140       1,069  
Income before income taxes     21,804       11,911       65,682       42,912  
Provision for income taxes     6,293       2,783       17,489       10,618  
Net income     15,511       9,128       48,193       32,294  
Cumulative preferred stock dividend     (19 )     (19 )     (76 )     (76 )
Net income attributable to common shareholders   $ 15,492     $ 9,109     $ 48,117     $ 32,218  
                                 
Basic earnings per common share:   $ 3.19     $ 1.87     $ 9.90     $ 6.63  
Diluted earnings per common share   $ 3.16     $ 1.86     $ 9.83     $ 6.59  
Basic weighted average common shares outstanding     4,861,590       4,861,590       4,861,590       4,861,590  
Diluted weighted average common shares outstanding     4,901,590       4,901,590       4,901,590       4,901,590  

 

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

 

 

 

 

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

   Year Ended August 31, 
   2026   2025* 
Operating activities:          
Net income  $48,193   $32,294 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   1,826    1,675 
Bad debt expense   1,092    359 
Unrealized (gain) on trading securities   (237)   (469)
Deferred tax provision   511    1,281 
Increase (decrease) in cash flow from change in:          
Trade accounts receivable   (21,879)   (12,950)
Inventory   (12,918)   (14,378)
Prepaid expenses and other assets   (2,153)   (1,505)
Operating lease right-of-use assets   (2,488)   699 
Trade accounts payable   13,952    5,763 
Accrued expenses and other current liabilities   (11,115)   4,852 
Operating lease liabilities   2,716    (452)
Net cash provided by operating activities   17,500    17,169 
Investing activities:          
Additions to property, equipment, and leasehold improvements   (3,334)   (1,284)
(Purchase) of marketable securities, trading   (40,055)   (24,233)
Sale of marketable securities, trading   25,727    9,075 
Net cash used in investing activities   (17,662)   (16,442)
Financing activities:          
Repayments on long-term debt   (135)   (129)
Preferred stock dividend   (76)   (76)
Bank overdraft   340    (638)
Net cash provided by (used in) financing activities   129    (843)
Effect of foreign currency exchange rate changes on cash and cash equivalents   (48)   1 
Net (decrease) in cash, cash equivalents, and restricted cash   (81)   (115)
Cash, cash equivalents, and restricted cash - beginning of period   738    853 
Cash, cash equivalents, and restricted cash - end of period  $657   $738 
Supplemental disclosures of cash flow information:          
Cash paid for interest  $175   $204 
Cash paid for income taxes  $26,629   $11,995 

 

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.