10-Q - EACO CORP (0000784539) (Filer)

Mon, Jul 15, 7:09 PM (54 days ago)

EACO Corporation's Form 10-Q for the quarter ended May 31, 2024, reveals a mixed financial performance. Net sales rose by 19.8% to $96.1 million, driven by an expanded sales force and better vendor relationships. However, SG&A expenses surged by 61.7% due to a $7.2 million legal settlement accrual, contributing to a decline in net income to $1.2 million from $5.3 million in the prior year. Gross margins remained stable at 29.1%. Cash flow from operations was $4.4 million, down from $8.7 million, impacted by higher inventory and receivables. The company's cash and equivalents fell to $737,000, partly due to a $31 million property purchase. Despite increased revenues, profitability and cash flow challenges pose risks to future performance.