Exhibit 99.1
EACO Corporation
EACO Corporation
2113 Florida Boulevard
Neptune Beach, Florida 32266
(904) 241-9798
Fax: (904) 241-9936
Contact: FOR IMMEDIATE RELEASE
Edward B. Alexander
President
(904) 241-9798 March 7, 2006
EACO CORPORATION REPORTS
FOURTH QUARTER AND FISCAL YEAR 2005 RESULTS
NEPTUNE BEACH, FLORIDA - EACO Corporation (OTCBB:EACO), today
reported operating results for the fourth quarter and year ended
December 28, 2005.
For the year ended December 28, 2005, net income was $9,353,700
($1.91 per share) compared to a net loss of $2,031,600 ($0.53 per
share) for the same period in 2004. As previously announced, the
Company recognized a gain of $10,035,200 (net of income tax)
during 2005 on the sale of all of its operating restaurants in
2005. Net loss for the fourth quarter was $814,900 ($0.21 per
share) compared to a net loss of $589,900 ($0.15 per share) for
the same period in 2004.
Loss from continuing operations (net of income tax) for the fourth
quarter was $232,000 ($0.06 per share) compared to $330,200 ($0.08
per share) in 2004. Loss from continuing operations for the year
ended December 28, 2005 was $596,400 ($0.12 per share) compared to
a loss of $1,306,300 ($0.34 per share) in 2004.
Loss from discontinued operations, net of income tax was $582,900
($0.15 per share) for the fourth quarter of 2005 compared to a
loss of $259,700 ($0.07 per share) in 2004. Income from
discontinued operations for the year ended December 28, 2005 was
$9,950,100 ($2.03 per share) compared to a loss of $725,300
($0.19 per share) in 2004.
Net losses in the fourth quarter included approximately $309,000
in workers' compensation expense resulting from an actuarial study
of the Company's outstanding claims, as well as recognized losses
of $294,000 recorded on securities investments during the quarter.
Without the workers' compensation expense and recognized losses,
the net loss in the fourth quarter would have been approximately
$212,000 ($0.05 per share).
As previously announced, at the time of the sale of its
restaurants, the Company had approximately $10 million in cash to
redeploy. A portion of this redeployment was accomplished with of
the purchase of the Sylmar, California property for $8.3 million,
consisting of approximately $6.5 million in cash and $1.8
million in long-term debt. The Company continues to seek out
other acquisitions or investments that it believes will enhance
shareholder value.
EACO Corporation
Consolidated Results of Operations
For The Quarters Ended For The Year
Ended
---------------------------------------
- ---------------
December 28, December 29, December 28,
December 29,
2005 2004 2005
2004
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- ----------------
Revenues:
Rental income $104,100 $32,800 $216,400
$131,100
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- -----------
Total revenues 104,100 32,800 216,400
131,100
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- -----------
Cost and expenses:
Asset impairment charge 31,000 -- 31,000
- --
Depreciation and amortization 64,200 77,800 248,000
276,000
General and administrative expenses 280,100 304,700 1,049,200
1,145,100
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- -----------
Total costs and expenses 375,300 382,500 1,328,200
1,421,100
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- -----------
Loss from operations (271,200) (349,700) (1,111,800)
(1,290,000)
Investment (loss) gain (294,000) (1,900) (235,900)
10,500
Interest and other income 227,800 57,300 530,200
119,400
Interest expense (34,800) (35,900) (139,300)
(146,200)
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- -----------
Loss from continuing operations
before income taxes (372,200) (330,200) (956,800)
(1,306,300)
Income tax benefit 140,200 -- 360,400
- --
---------- ----------- -----------
- -----------
Loss from continuing operations (232,000) (330,200) (596,400)
(1,306,300)
---------- ----------- -----------
- -----------
Discontinued operations:
Loss on discontinued operations, net of
income tax (582,900) (259,700) (85,100)
(725,300)
Gain on sale of discontinued operations,
net of income tax -- -- 10,035,200
- --
---------- ----------- -----------
- -----------
Income (loss) from discontinued operations (582,900) (259,700) 9,950,100
(725,300)
---------- ----------- -----------
- -----------
Net income (loss) (814,900) (589,900) 9,353,700
(2,031,600)
Cumulative preferred stock dividend (19,100) (6,300) (76,500)
(6,300)
---------- ----------- -----------
- -----------
Net income (loss) available
(attributable) to common shareholders ($834,000) ($596,200) $9,277,200
($2,037,900)
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==========
Basic income (loss) per share:
Continuing operations ($0.06) ($0.08) ($0.15)
($0.34)
Discontinued operations (0.15) (0.07) 2.55
(0.19)
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- -----------
Net income (loss) ($0.21) ($0.15) $2.40
($0.53)
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===========
Basic weighted average common
shares outstanding 3,906,800 3,881,500 3,889,900
3,790,000
========== =========== ===========
===========
Diluted income (loss) per share
Continuing operations ($0.06) ($0.08) ($0.12)
($0.34)
Discontinued operations (0.15) (0.07) 2.03
(0.19)
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- -----------
Net income (loss) ($0.21) ($0.15) $1.91
($0.53)
========== =========== ===========
===========
Diluted weighted average common
shares outstanding 3,906,800(A) 3,881,500(A) 4,906,700
3,790,000(A)
========== =========== ===========
===========
(A) Does not include impact of Preferred Stock convertible into Common Shares
because of
their anti-dilutive effect.