Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2017 | Nov. 14, 2017 | Feb. 28, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | EACO CORP | ||
Entity Central Index Key | 784,539 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 150,000 | ||
Trading Symbol | EACO | ||
Entity Common Stock, Shares Outstanding | 4,861,590 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 3,870 | $ 4,878 |
Restricted cash, current | 707 | 1,425 |
Trade accounts receivable, net | 21,339 | 18,797 |
Inventory, net | 26,791 | 21,532 |
Marketable trading securities | 1,596 | 540 |
Prepaid expenses and other current assets | 1,354 | 1,135 |
Total current assets | 55,657 | 48,307 |
Non-current Assets: | ||
Property, equipment and leasehold improvements, net | 9,256 | 1,395 |
Other assets | 867 | 890 |
Total assets | 65,780 | 50,592 |
Current Liabilities: | ||
Trade accounts payable | 13,364 | 12,727 |
Accrued expenses and other current liabilities | 4,545 | 5,600 |
Liability for short sales of marketable trading securities | 707 | 1,425 |
Current portion of long-term debt | 139 | 0 |
Total current liabilities | 18,755 | 19,752 |
Non-current Liabilities: | ||
Long-term debt | 12,193 | 0 |
Total liabilities | 30,948 | 19,752 |
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 | 747 | 730 |
Retained earnings | 21,657 | 17,682 |
Total shareholders’ equity | 34,832 | 30,840 |
Total liabilities and shareholders’ equity | $ 65,780 | $ 50,592 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Aug. 31, 2017 | Aug. 31, 2016 |
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible preferred stock, shares outstanding | 36,000 | 36,000 |
Convertible preferred stock, liquidated (in dollars) | $ 900 | $ 900 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares outstanding | 4,861,590 | 4,861,590 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Revenues | $ 156,954 | $ 148,544 |
Cost of revenues | 112,184 | 104,981 |
Gross margin | 44,770 | 43,563 |
Operating expenses: | ||
Selling, general and administrative expenses | 38,455 | 37,122 |
Income from operations | 6,315 | 6,441 |
Other income (expense): | ||
Net gain on trading securities | 208 | 104 |
Interest and other (expense) | (181) | (17) |
Other income, net | 27 | 87 |
Income before income taxes | 6,342 | 6,528 |
Provision for income taxes | 2,291 | 2,433 |
Net income | 4,051 | 4,095 |
Cumulative preferred stock dividend | (76) | (76) |
Net income attributable to common shareholders | $ 3,975 | $ 4,019 |
Basic and diluted earnings per share: | $ 0.82 | $ 0.83 |
Basic and diluted weighted average common shares outstanding | 4,861,590 | 4,861,590 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Net income | $ 4,051 | $ 4,095 |
Other comprehensive income, net of tax | ||
Foreign translation gain (loss) | 17 | (130) |
Total comprehensive income | $ 4,068 | $ 3,965 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Balance at Aug. 31, 2015 | $ 26,951 | $ 1 | $ 49 | $ 12,378 | $ 860 | $ 13,663 |
Balance (in Shares) at Aug. 31, 2015 | 36,000 | 4,861,590 | ||||
Preferred dividends | (76) | $ 0 | $ 0 | 0 | 0 | (76) |
Foreign translation gain (loss) | (130) | 0 | 0 | 0 | (130) | 0 |
Net income | 4,095 | 0 | 0 | 0 | 0 | 4,095 |
Balance at Aug. 31, 2016 | 30,840 | $ 1 | $ 49 | 12,378 | 730 | 17,682 |
Balance (in Shares) at Aug. 31, 2016 | 36,000 | 4,861,590 | ||||
Preferred dividends | (76) | $ 0 | $ 0 | 0 | 0 | (76) |
Foreign translation gain (loss) | 17 | 0 | 0 | 0 | 17 | 0 |
Net income | 4,051 | 0 | 0 | 0 | 0 | 4,051 |
Balance at Aug. 31, 2017 | $ 34,832 | $ 1 | $ 49 | $ 12,378 | $ 747 | $ 21,657 |
Balance (in Shares) at Aug. 31, 2017 | 36,000 | 4,861,590 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Operating activities: | ||
Net income | $ 4,051 | $ 4,095 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 785 | 577 |
Bad debt expense | 96 | 73 |
Change in inventory reserve | 87 | 202 |
Net gain on trading securities | (208) | (104) |
(Increase) decrease in: | ||
Trade accounts receivable | (2,638) | (3,385) |
Inventory | (5,346) | (5,001) |
Prepaid expenses and other assets | (247) | (365) |
Increase (decrease) in: | ||
Trade accounts payable | (30) | 1,641 |
Accrued expenses and other current liabilities | (1,027) | 1,167 |
Net cash used in operating activities | (4,477) | (1,100) |
Investing activities: | ||
Purchase of property, equipment and leasehold improvements | (8,646) | (403) |
Purchase of marketable securities, trading | (848) | (436) |
Net change in securities sold short | (718) | (356) |
Change in restricted cash | 737 | 375 |
Net cash used in investing activities | (9,475) | (820) |
Financing activities: | ||
Borrowings (repayments) on revolving credit facility, net | 6,967 | (33) |
Repayments on long-term debt | (35) | 0 |
Preferred dividend | (76) | (76) |
Bank overdraft | 671 | 1,768 |
Borrowings on long-term debt | 5,400 | 0 |
Net cash provided by financing activities | 12,927 | 1,659 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 17 | (130) |
Net decrease in cash and cash equivalents | (1,008) | (391) |
Cash and cash equivalents - beginning of period | 4,878 | 5,269 |
Cash and cash equivalents - end of period | 3,870 | 4,878 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 182 | 9 |
Cash paid for income taxes | $ 2,833 | $ 2,199 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Organization and Basis of Presentation EACO Corporation (“EACO”), incorporated in Florida in September 1985, is a holding company, primarily comprised of its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”) and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Substantially all of EACO’s operations are conducted through Bisco and Bisco Industries Limited. Bisco was incorporated in Illinois in 1974 and is a distributor of electronic components and fasteners with 48 sales offices and seven distribution centers located throughout the United States and Canada. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2. Significant Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for doubtful trade accounts receivable, slow moving and obsolete inventory reserves, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets. Actual results could differ from those estimates. The consolidated financial statements for all periods presented include the accounts of EACO, Bisco and Bisco Industries Limited (which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Trade accounts receivable are carried at original invoice amount, less an estimate for an allowance for doubtful accounts. Management determines the allowance for doubtful accounts by identifying probable credit losses in the Company’s accounts receivable and reviewing historical data to estimate the collectability on items not yet specifically identified as problem accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. A trade account receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. The Company does not charge interest on past due balances. The allowance for doubtful accounts was approximately $ 111,000 Inventories consist primarily of electronic fasteners and components, and are stated at the lower of cost or estimated market value. Cost is determined using the average cost method. Inventories are presented net of a reserve for slow moving or obsolete items of approximately $ 1,220,000 1,307,000 Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. Depreciation on buildings is thirty five years and five to seven years for furniture, fixtures and equipment The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value. The Company invests in marketable trading securities, which include long and short positions in equity securities. Short positions represent securities sold, but not yet purchased. Short sales result in obligations to purchase securities at a later date and are separately presented as a liability in the Company’s consolidated balance sheets. As of August 31, 2017 and 2016, the Company’s total obligation for securities sold, but not yet purchased was approximately $ 707,000 1,425,000 707,000 1,425,000 These securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the statements of operations and represent the change in the market value of investment holdings during the period. See Note 10. Management generally recognizes revenue at the time of product shipment, as the Company’s shipping terms are substantially FOB shipping point. Revenue is considered to be realized or realizable and earned when there is persuasive evidence of a sales arrangement in the form of an executed contract or purchase order, the product has been shipped, the sales price is fixed or determinable, and collectability is reasonably assured. Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance. We provide tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. Shipping and handling expenses are included in cost of revenues, and were approximately $ 2,760,000 2,653,000 Advertising costs are expensed as incurred. For fiscal 2017 and fiscal 2016, the Company spent $243,000 and $257,000 on advertising, respectively. Prior to June 2005, EACO self-insured workers’ compensation claims losses up to certain limits. The liability for workers’ compensation represents an estimate of the present value of the ultimate cost of uninsured losses which are unpaid as of the balance sheet dates. The Company pursues recovery of certain claims from an insurance carrier. Recoveries, if any, are recognized when realization is reasonably assured. The outstanding liability for worker’s compensation at year end is not significant and is recorded in accrued liabilities at August 31, 2017 and 2016. Certain Company leases for its sales offices and distribution centers provide for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense. Basic earnings per common share for the years ended August 31, 2017 and 2016 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 36,000 Assets and liabilities recorded in functional currencies other than the U.S. dollar (Canadian dollars for the Bisco’s Canadian subsidiary) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars at August 31, 2017 and 2016 was $0.82 and $0.77, respectively. The resulting balance sheet translation adjustments are charged or credited directly to accumulated other comprehensive income or loss. Revenue and expenses are transacted at the average exchange rates to respective period of earnings for the years ended August 31, 2017 and 2016. The average exchange rate for the years ended August 31, 2017 and 2016 was $0.76. The Company holds no assets or liabilities outside of the United States and Canada. All foreign sales excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure. Financial instruments that subject the Company to credit risk include cash balances in excess of federal depository insurance limits and accounts receivable. Cash accounts maintained by the Company at U.S. and Canadian financial institutions are insured by the Federal Deposit Insurance Corporation and Canadian Deposit Insurance Corporation, respectively. A significant portion of the Company’s cash was held by its Canadian subsidiary. The Company has not experienced any losses in such accounts. Net sales to customers outside the United States and related trade accounts receivable were both approximately 9 9 14 10 Total assets held outside the United States comprised of 4 5 The Company’s financial instruments other than its marketable securities include cash and cash equivalents, trade accounts receivable, prepaid expenses, security deposits, trade accounts payable, line of credit, accrued expenses and long-term debt. Management believes that the fair value of these financial instruments approximate their carrying amounts based on current market indicators, such as prevailing interest rates. The Company’s marketable securities are measured at fair value on a recurring basis. See Note 10. During the years ended August 31, 2017 and 2016, the Company did not have any nonfinancial assets or liabilities that were measured at estimated fair value on a recurring or nonrecurring basis. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” to supersede previous revenue recognition guidance under current GAAP. The guidance presents steps for comprehensive revenue recognition that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory”. The guidance is part of the “Simplification Initiative” to identify and re-evaluate areas where the generally accepted accounting principles may be complex and cumbersome to apply. The guidance will require that inventory be stated at the lower of cost and net realizable value as opposed to the lower of cost or market. Net realizable value is the estimated selling price for the inventory less completion, disposal and transportation costs. The guidance becomes effective for fiscal years beginning after December 15, 2016. The guidance became effective for the Company beginning September 1, 2017 and is not expected to have a material impact on our consolidated financial position, results of operations or cash flows. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance becomes effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require a lessee to recognize assets and liabilities with lease terms of more than 12 months. Both capital and operating leases will need to be recognized on the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows - Restricted Cash a consensus of the FASB Emerging Issues Task Force.” This standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows under a retrospective transition approach. The guidance will become effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating this statement and its impact on the Company’s results of operations or financial position. |
Property, Equipment and Leaseho
Property, Equipment and Leasehold Improvements | 12 Months Ended |
Aug. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3. Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements are summarized as follows: August 31, 2017 2016 Machinery and equipment $ 7,154,000 $ 5,960,000 Furniture and fixtures 898,000 829,000 Vehicles 155,000 155,000 Leasehold improvements 1,756,000 1,576,000 Land 1,717,000 - Building 5,490,000 - 17,170,000 8,520,000 Less: accumulated depreciation and amortization (7,914,000) (7,125,000) $ 9,256,000 $ 1,395,000 On May 19, 2017, the Company purchased the Lakeview Property from the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder. The total purchase price of the Lakeview Property was $ 7,200,000 1,800,000 For the years ended August 31, 2017 and 2016, depreciation and amortization expense was $ 785,000 577,000 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Aug. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt [Text Block] | Note 4. Long-Term Debt The Company has a revolving credit agreement with Community Bank, N.A., which currently provides for borrowings of up to $ 10,000,000 bears interest at either the 30, 60 or 90 day LIBOR (the 90 day LIBOR at August 31, 2017 and 2016 was 1.31% and 0.81%, respectively) plus 1.75% or the bank’s reference rate (4.25% and 3.5% at August 31, 2017 and 2016). 6,967,000 On May 15, 2017, the Company entered into a $5,400,000 loan agreement with Community Bank. The proceeds of the loan were used to purchase the building that houses the Company’s corporate headquarters and distribution center located in Anaheim, California. This loan is payable in 35 regular monthly payments of $27,142 and one irregular last payment of $5,001,607 due on the maturity of the loan on May 16, 2020. The loan is secured by a deed of trust to the Lakeview Property and bears interest at the bank’s reference rate (1.79% at May 31, 2017) plus 1.70%. At August 31, 2017, the outstanding balance of this loan was $5,365,000. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Aug. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 5. Shareholders’ Equity Earnings Per Common Share (“EPS”) Year Ended August 31, (In thousands, except per share information) 2017 2016 EPS basic and diluted: Net income $ 4,051 $ 4,095 Less: cumulative preferred stock dividends (76) (76) Net income available to common shareholders for basic and diluted EPS computation 3,975 4,019 Weighted average common shares outstanding for basic and diluted EPS computation 4,861,590 4,861,590 Earnings per common share basic and diluted $ 0.82 $ 0.83 For the year ended August 31, 2017 and 2016, 40,000 36,000 Preferred Stock The Company’s Board of Directors is authorized to establish the various rights and preferences for the Company's preferred stock, including voting, conversion, dividend and liquidation rights and preferences, at the time shares of preferred stock are issued. In September 2004, the Company sold 36,000 8.5 25 900,000 22.50 $25.00 per share plus all unpaid dividends |
Profit Sharing Plan
Profit Sharing Plan | 12 Months Ended |
Aug. 31, 2017 | |
Profit Sharing Plan [Abstract] | |
Profit Sharing Plan [Text Block] | Note 6. Profit Sharing Plan The Company has a defined contribution 401(k) profit sharing plan (“401(k) plan”) for all eligible employees. Employees are eligible to contribute to the 401(k) plan after six months of employment. Under this plan, employees may contribute up to 15% of their compensation. The Company has the discretion to match 50% of the employee contributions up to 4% of employees’ compensation. The Company’s contributions are subject to a five-year vesting period beginning the second year of service. The Company’s contribution expense was approximately $236,000 and $223,000 for the years ended August 31, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 7. Income Taxes Year Ended August 31, 2017 2016 Current: Federal $ 2,142,000 $ 2,226,000 State 119,000 362,000 Foreign (32,000) 28,000 2,229,000 2,616,000 Deferred: Federal (88,000) (273,000) State 32,000 90,000 Foreign 118,000 62,000 (183,000) Total $ 2,291,000 $ 2,433,000 34 Year Ended August 31, 2017 2016 Current: Expected income tax benefit at statutory rate $ 2,112,000 $ 2,234,000 Increase (decrease) in taxes due to: State tax, net of federal benefit 297,000 303,000 Permanent differences 25,000 29,000 Change in deferred tax asset valuation allowance (4,000) (121,000) Other, net (139,000) (12,000) Income tax expense $ 2,291,000 $ 2,433,000 August 31, 2017 2016 Deferred tax assets: Net operating loss $ 508,000 $ 518,000 Allowance for doubtful accounts 3,000 8,000 Accrued expenses 395,000 381,000 Accrued workers’ compensation 18,000 25,000 Inventory reserve 936,000 852,000 Unrealized losses on investment (223,000) (167,000) Excess of tax over book depreciation (113,000) (147,000) Other 43,000 198,000 Total deferred tax assets 1,567,000 1,668,000 Valuation allowance (508,000) (518,000) Total deferred tax assets $ 1,059,000 $ 1,150,000 The Company records net deferred tax assets to the extent management believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance. As a result of the merger with Bisco, management concluded that certain deferred tax assets would be realized, primarily the pre-merger net operating loss carryforwards (“NOLs”) of the Company. Management reviewed the positive and negative evidence available at August 31, 2016 and 2017 and determined that EACO’s state net operating losses did not meet the more likely than not threshold required to be recognized. As such a valuation allowance was retained on these deferred tax assets. Management forecasted taxable income for Bisco of $ 7 6.4 The Company follows ASC 740 “Income Taxes” formerly FASBInterpretation No. 48, an interpretation of FASB Statement No. 109 (“ASC 740”). ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in the tax return. The Company did not recognize any additional liability for unrecognized tax benefit as a result of the implementation. The Company has no liability for unrecognized tax benefit related to tax positions for either the August 31, 2016 year end or the August 31, 2017 year end. The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of August 31, 2017, the Company has not recognized liabilities for penalty and interest as the Company does not have any liability for unrecognized tax benefits. The Company is subject to taxation in the US, Canada and various states. The Company’s tax years for 2012, 2013, 2014 and 2015 are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2012. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 8. Commitments and Contingencies Legal Matters From time to time, we may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject us to damages or equitable remedies, and divert our management and key personnel from our business operations. We currently are not a party to any material legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations, financial position or cash flows. Operating Lease Obligations The Company leases its facilities and automobiles under operating lease agreements (three leased facilities are leased from the Trust, which is beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder see Note 9), which expire on various dates through September 2022 and require minimum rental payments ranging from $1,000 to $32,000 per month. Certain of the leases contain options for renewal under varying terms. Minimum future rental payments under operating leases are as follows: Years Ending August 31: 2018 $ 2,315,000 2019 1,588,000 2020 1,016,000 2021 708,000 2022 626,000 Thereafter 1,754,000 $ 8,007,000 Rental expense for all operating leases for the years ended August 31, 2017 and 2016 was approximately $2,202,000 and $2,142,000, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 9. Related Party Transactions The Company leased three buildings, including the Lakeview Property, under operating lease agreements from a trust beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder, Glen Ceiley. During fiscal 2017 and fiscal 2016, the Company incurred approximately $539,000 and $652,000, respectively, of expense related to these leases. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 10. Fair Value of Financial Instruments Management estimates the fair value of its assets or liabilities measured at fair value based on the three levels of the fair-value hierarchy are described as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the Company, Level 1 inputs include marketable securities and liabilities for short sales of trading securities that are actively traded. Level 2: Inputs other than Level 1 are observable, either directly or indirectly. The Company does not hold any Level 2 financial instruments. Level 3: Unobservable inputs. The Company does not hold any Level 3 financial instruments. Marketable Trading Securities The Company holds marketable trading securities, which include long and short positions that are all publicly traded securities with quoted prices in active markets. These securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. The fair value is considered to be a Level 1 measurement. The following table sets forth by level, within the fair value hierarchy, certain assets at estimated fair value as of August 31, 2017 and 2016: Quoted Prices in Significant Other Significant Total August 31, 2017 Marketable securities $ 1,596,000 $ $ $ 1,596,000 Liability for short sales of trading securities (707,000) (707,000) August 31, 2016 Marketable securities 540,000 540,000 Liability for short sales of trading securities (1,425,000) (1,425,000) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Management has evaluated events subsequent to August 31, 2017, through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission, for transactions and other events which may require adjustment of and/or disclosure in such financial statements. On November 21, 2017, the Company entered into a Commercial and Industrial Lease Agreement (the “Lease”) with the Trust, which is the grantor trust of Glen Ceiley, our Chief Executive Officer, Chairman of the Board and the Company’s majority shareholder, for the lease of a facility in Glendale Heights, Illinois. The Company plans to relocate its Chicago sales office and distribution center to this facility in December 2017. The Lease is a ten year lease with an initial monthly rental rate of $22,600, which is subject to annual rent increases of approximately 2.5% as set forth in the Lease. The foregoing description of the Lease does not purport to be complete and is qualified in the entirety by reference to the Lease as filed as Exhibit 10.33 hereto and incorporated herein by reference. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for doubtful trade accounts receivable, slow moving and obsolete inventory reserves, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets. Actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements for all periods presented include the accounts of EACO, Bisco and Bisco Industries Limited (which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Accounts Receivable Trade accounts receivable are carried at original invoice amount, less an estimate for an allowance for doubtful accounts. Management determines the allowance for doubtful accounts by identifying probable credit losses in the Company’s accounts receivable and reviewing historical data to estimate the collectability on items not yet specifically identified as problem accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. A trade account receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. The Company does not charge interest on past due balances. The allowance for doubtful accounts was approximately $ 111,000 |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of electronic fasteners and components, and are stated at the lower of cost or estimated market value. Cost is determined using the average cost method. Inventories are presented net of a reserve for slow moving or obsolete items of approximately $ 1,220,000 1,307,000 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Equipment, and Leasehold Improvements Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. Depreciation on buildings is thirty five years and five to seven years for furniture, fixtures and equipment |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long Lived Assets The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value. |
Marketable Securities, Trading Securities, Policy [Policy Text Block] | Marketable Trading Securities The Company invests in marketable trading securities, which include long and short positions in equity securities. Short positions represent securities sold, but not yet purchased. Short sales result in obligations to purchase securities at a later date and are separately presented as a liability in the Company’s consolidated balance sheets. As of August 31, 2017 and 2016, the Company’s total obligation for securities sold, but not yet purchased was approximately $ 707,000 1,425,000 707,000 1,425,000 These securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the statements of operations and represent the change in the market value of investment holdings during the period. See Note 10. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Management generally recognizes revenue at the time of product shipment, as the Company’s shipping terms are substantially FOB shipping point. Revenue is considered to be realized or realizable and earned when there is persuasive evidence of a sales arrangement in the form of an executed contract or purchase order, the product has been shipped, the sales price is fixed or determinable, and collectability is reasonably assured. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance. We provide tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. |
Shipping and Handling Cost, Policy [Policy Text Block] | Freight and Shipping/Handling Shipping and handling expenses are included in cost of revenues, and were approximately $ 2,760,000 2,653,000 |
Advertising Costs, Policy [Policy Text Block] | Advetising Costs Advertising costs are expensed as incurred. For fiscal 2017 and fiscal 2016, the Company spent $243,000 and $257,000 on advertising, respectively. |
Liabilities of Discontinued Operations [Policy Text Block] | Liabilities of Discontinued Operations Prior to June 2005, EACO self-insured workers’ compensation claims losses up to certain limits. The liability for workers’ compensation represents an estimate of the present value of the ultimate cost of uninsured losses which are unpaid as of the balance sheet dates. The Company pursues recovery of certain claims from an insurance carrier. Recoveries, if any, are recognized when realization is reasonably assured. The outstanding liability for worker’s compensation at year end is not significant and is recorded in accrued liabilities at August 31, 2017 and 2016. |
Lessee, Leases [Policy Text Block] | Operating Leases Certain Company leases for its sales offices and distribution centers provide for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share Basic earnings per common share for the years ended August 31, 2017 and 2016 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 36,000 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions Assets and liabilities recorded in functional currencies other than the U.S. dollar (Canadian dollars for the Bisco’s Canadian subsidiary) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars at August 31, 2017 and 2016 was $0.82 and $0.77, respectively. The resulting balance sheet translation adjustments are charged or credited directly to accumulated other comprehensive income or loss. Revenue and expenses are transacted at the average exchange rates to respective period of earnings for the years ended August 31, 2017 and 2016. The average exchange rate for the years ended August 31, 2017 and 2016 was $0.76. The Company holds no assets or liabilities outside of the United States and Canada. All foreign sales excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations Financial instruments that subject the Company to credit risk include cash balances in excess of federal depository insurance limits and accounts receivable. Cash accounts maintained by the Company at U.S. and Canadian financial institutions are insured by the Federal Deposit Insurance Corporation and Canadian Deposit Insurance Corporation, respectively. A significant portion of the Company’s cash was held by its Canadian subsidiary. The Company has not experienced any losses in such accounts. Net sales to customers outside the United States and related trade accounts receivable were both approximately 9 9 14 10 Total assets held outside the United States comprised of 4 5 |
Fair Value Measurement, Policy [Policy Text Block] | Estimated Fair Value of Financial Instruments and Certain Nonfinancial Assets and Liabilities The Company’s financial instruments other than its marketable securities include cash and cash equivalents, trade accounts receivable, prepaid expenses, security deposits, trade accounts payable, line of credit, accrued expenses and long-term debt. Management believes that the fair value of these financial instruments approximate their carrying amounts based on current market indicators, such as prevailing interest rates. The Company’s marketable securities are measured at fair value on a recurring basis. See Note 10. During the years ended August 31, 2017 and 2016, the Company did not have any nonfinancial assets or liabilities that were measured at estimated fair value on a recurring or nonrecurring basis. |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” to supersede previous revenue recognition guidance under current GAAP. The guidance presents steps for comprehensive revenue recognition that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory”. The guidance is part of the “Simplification Initiative” to identify and re-evaluate areas where the generally accepted accounting principles may be complex and cumbersome to apply. The guidance will require that inventory be stated at the lower of cost and net realizable value as opposed to the lower of cost or market. Net realizable value is the estimated selling price for the inventory less completion, disposal and transportation costs. The guidance becomes effective for fiscal years beginning after December 15, 2016. The guidance became effective for the Company beginning September 1, 2017 and is not expected to have a material impact on our consolidated financial position, results of operations or cash flows. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance becomes effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In February 2016, the FASB issued ASU 2016-02, “Leases”, which will require a lessee to recognize assets and liabilities with lease terms of more than 12 months. Both capital and operating leases will need to be recognized on the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows - Restricted Cash a consensus of the FASB Emerging Issues Task Force.” This standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows under a retrospective transition approach. The guidance will become effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating this statement and its impact on the Company’s results of operations or financial position. |
Property, Equipment and Lease20
Property, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Equipment And Lease hold Improvements [Table Text Block] | Property, equipment and leasehold improvements are summarized as follows: August 31, 2017 2016 Machinery and equipment $ 7,154,000 $ 5,960,000 Furniture and fixtures 898,000 829,000 Vehicles 155,000 155,000 Leasehold improvements 1,756,000 1,576,000 Land 1,717,000 - Building 5,490,000 - 17,170,000 8,520,000 Less: accumulated depreciation and amortization (7,914,000) (7,125,000) $ 9,256,000 $ 1,395,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerators and denominators used in the basic and diluted computations of earnings per common share: Year Ended August 31, (In thousands, except per share information) 2017 2016 EPS basic and diluted: Net income $ 4,051 $ 4,095 Less: cumulative preferred stock dividends (76) (76) Net income available to common shareholders for basic and diluted EPS computation 3,975 4,019 Weighted average common shares outstanding for basic and diluted EPS computation 4,861,590 4,861,590 Earnings per common share basic and diluted $ 0.82 $ 0.83 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The following summarizes the Company’s provision for income taxes on income from operations: Year Ended August 31, 2017 2016 Current: Federal $ 2,142,000 $ 2,226,000 State 119,000 362,000 Foreign (32,000) 28,000 2,229,000 2,616,000 Deferred: Federal (88,000) (273,000) State 32,000 90,000 Foreign 118,000 62,000 (183,000) Total $ 2,291,000 $ 2,433,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income taxes for the years ended August 31, 2017 and 2016 differ from the amounts computed by applying the federal statutory corporate rates of 34 Year Ended August 31, 2017 2016 Current: Expected income tax benefit at statutory rate $ 2,112,000 $ 2,234,000 Increase (decrease) in taxes due to: State tax, net of federal benefit 297,000 303,000 Permanent differences 25,000 29,000 Change in deferred tax asset valuation allowance (4,000) (121,000) Other, net (139,000) (12,000) Income tax expense $ 2,291,000 $ 2,433,000 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred taxes at August 31, 2017 and 2016 are summarized below: August 31, 2017 2016 Deferred tax assets: Net operating loss $ 508,000 $ 518,000 Allowance for doubtful accounts 3,000 8,000 Accrued expenses 395,000 381,000 Accrued workers’ compensation 18,000 25,000 Inventory reserve 936,000 852,000 Unrealized losses on investment (223,000) (167,000) Excess of tax over book depreciation (113,000) (147,000) Other 43,000 198,000 Total deferred tax assets 1,567,000 1,668,000 Valuation allowance (508,000) (518,000) Total deferred tax assets $ 1,059,000 $ 1,150,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future rental payments under operating leases are as follows: Years Ending August 31: 2018 $ 2,315,000 2019 1,588,000 2020 1,016,000 2021 708,000 2022 626,000 Thereafter 1,754,000 $ 8,007,000 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The following table sets forth by level, within the fair value hierarchy, certain assets at estimated fair value as of August 31, 2017 and 2016: Quoted Prices in Significant Other Significant Total August 31, 2017 Marketable securities $ 1,596,000 $ $ $ 1,596,000 Liability for short sales of trading securities (707,000) (707,000) August 31, 2016 Marketable securities 540,000 540,000 Liability for short sales of trading securities (1,425,000) (1,425,000) |
Significant Accounting Polici25
Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 111,000 | $ 111,000 |
Inventory Valuation Reserves | $ 1,220,000 | $ 1,307,000 |
Percentage of Revenue Per Entity, Maximum | 10.00% | 10.00% |
Concentration Risk, Percentage | 4.00% | 5.00% |
Shipping, Handling and Transportation Costs | $ 2,760,000 | $ 2,653,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 40,000 | 40,000 |
Convertible Preferred Stock, Shares Issued upon Conversion | 36,000 | 36,000 |
Fair Value, Estimate Not Practicable, Securities Sold, Not yet Purchased | $ 707,000 | $ 1,425,000 |
Restricted Cash and Cash Equivalents, Current | $ 707,000 | $ 1,425,000 |
Sales Revenue, Net [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 9.00% | 9.00% |
Accounts Receivable [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 9.00% | 14.00% |
Property, Equipment and Lease26
Property, Equipment and Leasehold Improvements (Details) - USD ($) | Aug. 31, 2017 | Aug. 31, 2016 |
Machinery and equipment | $ 7,154,000 | $ 5,960,000 |
Furniture and fixtures | 898,000 | 829,000 |
Vehicles | 155,000 | 155,000 |
Leasehold improvements | 1,756,000 | 1,576,000 |
Land | 1,717,000 | 0 |
Building | 5,490,000 | 0 |
Property, Plant and Equipment, Gross, Total | 17,170,000 | 8,520,000 |
Less: accumulated depreciation and amortization | (7,914,000) | (7,125,000) |
Property, Plant and Equipment, Net, Total | $ 9,256,000 | $ 1,395,000 |
Property, Equipment and Lease27
Property, Equipment and Leasehold Improvements (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 19, 2017 | Aug. 31, 2017 | Aug. 31, 2016 | |
Payments to Acquire Property, Plant, and Equipment, Total | $ 8,646,000 | $ 403,000 | |
Proceeds from Lines of Credit | $ 1,800,000 | ||
Lakeview Property [Member] | |||
Payments to Acquire Property, Plant, and Equipment, Total | $ 7,200,000 | ||
Equipment and Leasehold Improvements [Member] | |||
Depreciation, Total | $ 785,000 | $ 577,000 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) | May 15, 2017 | Aug. 31, 2017 | Aug. 31, 2016 |
Long-term Line of Credit | $ 6,967,000 | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||
Debt Instrument, Maturity Date | May 16, 2020 | ||
Line of Credit Facility, Interest Rate Description | bears interest at either the 30, 60 or 90 day LIBOR (the 90 day LIBOR at August 31, 2017 and 2016 was 1.31% and 0.81%, respectively) plus 1.75% or the banks reference rate (4.25% and 3.5% at August 31, 2017 and 2016). | ||
Debt Instrument, Periodic Payment, Total | $ 27,142 | ||
Long-term Debt | $ 5,365,000 | ||
Proceeds from Issuance of Long-term Debt | 5,400,000 | ||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 5,001,607 | ||
Debt Instrument, Description of Variable Rate Basis | The loan is secured by a deed of trust to the Lakeview Property and bears interest at the bank’s reference rate (1.79% at May 31, 2017) plus 1.70%. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Basic and diluted earnings per share: | ||
Net income | $ 4,051 | $ 4,095 |
Less: cumulative preferred stock dividends | (76) | (76) |
Net income available to common shareholders for basic and diluted EPS computation | $ 3,975 | $ 4,019 |
Weighted average common shares outstanding for basic and diluted EPS computation | 4,861,590 | 4,861,590 |
Earnings per common share - basic and diluted | $ 0.82 | $ 0.83 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Preferred Stock, Dividend Rate, Percentage | 8.50% | |
Dividends, Preferred Stock, Cash | $ 900,000 | |
Debt Instrument, Convertible, Conversion Price | $ 22.50 | |
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 25 | |
Final Settlement To Holders Of Preferred Stock During Dissolution | $25.00 per share plus all unpaid dividends | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 40,000 | 40,000 |
Convertible Preferred Stock, Shares Issued upon Conversion | 36,000 | 36,000 |
Series A Cumulative Convertible Preferred Stock [Member] | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 36,000 |
Profit Sharing Plan (Details Te
Profit Sharing Plan (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Defined Contribution Plan, Administrative Expenses | $ 236,000 | $ 223,000 |
Description of Defined Contribution Pension and Other Postretirement Plans | five-year | |
Employee Contributions [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | |
Deferred Profit Sharing [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 15.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Provision For Income Taxes Continuing And Discontinuing Operations | $ 2,291,000 | $ 2,433,000 |
Current Income Taxes [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | 2,229,000 | 2,616,000 |
Current Income Taxes [Member] | Domestic Tax Authority [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | 2,142,000 | 2,226,000 |
Current Income Taxes [Member] | State and Local Jurisdiction [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | 119,000 | 362,000 |
Current Income Taxes [Member] | Foreign Tax Authority [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | (32,000) | 28,000 |
Deferred Income Taxes [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | 62,000 | (183,000) |
Deferred Income Taxes [Member] | Domestic Tax Authority [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | (88,000) | (273,000) |
Deferred Income Taxes [Member] | State and Local Jurisdiction [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | 32,000 | 90,000 |
Deferred Income Taxes [Member] | Foreign Tax Authority [Member] | ||
Provision For Income Taxes Continuing And Discontinuing Operations | $ 118,000 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Current: | ||
Expected income tax benefit at statutory rate | $ 2,112,000 | $ 2,234,000 |
Increase (decrease) in taxes due to: | ||
State tax, net of federal benefit | 297,000 | 303,000 |
Permanent differences | 25,000 | 29,000 |
Change in deferred tax asset valuation allowance | (4,000) | (121,000) |
Other, net | (139,000) | (12,000) |
Income tax expense | $ 2,291,000 | $ 2,433,000 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Aug. 31, 2017 | Aug. 31, 2016 |
Deferred tax assets: | ||
Net operating loss | $ 508,000 | $ 518,000 |
Allowance for doubtful accounts | 3,000 | 8,000 |
Accrued expenses | 395,000 | 381,000 |
Accrued workers’ compensation | 18,000 | 25,000 |
Inventory reserve | 936,000 | 852,000 |
Unrealized losses on investment | (223,000) | (167,000) |
Excess of tax over book depreciation | (113,000) | (147,000) |
Other | 43,000 | 198,000 |
Total deferred tax assets | 1,567,000 | 1,668,000 |
Valuation allowance | (508,000) | (518,000) |
Total deferred tax assets | $ 1,059,000 | $ 1,150,000 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $ 6,342 | $ 6,528 |
Bisco Industries Inc [Member] | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $ 6,400 | $ 7,000 |
Commitments and Contingencies36
Commitments and Contingencies (Details) - Operating Lease Agreements [Member] | Aug. 31, 2017USD ($) |
Years Ending August 31: | |
2,018 | $ 2,315,000 |
2,019 | 1,588,000 |
2,020 | 1,016,000 |
2,021 | 708,000 |
2,022 | 626,000 |
Thereafter | 1,754,000 |
Total | $ 8,007,000 |
Commitments and Contingencies37
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Operating Leases, Rent Expense | $ 2,202,000 | $ 2,142,000 |
Lease Expiration Date | Sep. 30, 2022 | |
Minimum [Member] | ||
Monthly Operating Lease Rental Payment | $ 1,000 | |
Maximum [Member] | ||
Monthly Operating Lease Rental Payment | $ 32,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Operating Leases, Rent Expense | $ 2,202,000 | $ 2,142,000 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Operating Leases, Rent Expense | $ 539,000 | $ 652,000 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Details) - USD ($) | Aug. 31, 2017 | Aug. 31, 2016 |
Marketable securities | $ 1,596,000 | $ 540,000 |
Liability for short sales of trading securities | (707,000) | (1,425,000) |
Fair Value, Inputs, Level 1 [Member] | ||
Marketable securities | 1,596,000 | 540,000 |
Liability for short sales of trading securities | (707,000) | (1,425,000) |
Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities | 0 | 0 |
Liability for short sales of trading securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Marketable securities | 0 | 0 |
Liability for short sales of trading securities | $ 0 | $ 0 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - Subsequent Event [Member] | 1 Months Ended |
Nov. 21, 2017USD ($) | |
Subsequent Event [Line Items] | |
Sale Leaseback Transaction, Lease Terms | ten year |
Sale Leaseback Transaction, Monthly Rental Payments | $ 22,600 |
Sale Leaseback Transaction, Imputed Interest Rate | 2.50% |