EACO (EACO) 8-K Eaco Corporation Reports First Quarter Results

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.