EXHIBIT 99.1
Michael Bains
Eaco Corporation
(714) 876-2490 May 9, 2006
EACO CORPORATION REPORTS FIRST QUARTER RESULTS
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ANAHEIM, CALIFORNIA - Eaco Corporation (OTCBB:EACO), today
reported revenues and operating results for the first quarter
ended March 29, 2006.
The net loss for the first quarter of 2006 was $120,700 ($.04 per
share) compared to net income of $258,200 ($.07 per share) for
the same period in 2005. Loss from continuing operations for the
first quarter of 2006 was $120,700 ($.04 per share) compared to a
loss of $1,112,900 ($.30 per share) for the same period in 2005.
As previously announced, the Company sold all of its operating
restaurants on June 30, 2005. The operating results of these
sold restaurants are reported as "Income from Discontinued
Operations" for the 1st quarter of 2005.
Since the sale of the restaurants the Company's core business has
been its real estate holdings. The Company continues to pursue
acquisitions of operating businesses and investments while
reducing general and administrative expenses.
EACO Corporation
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Consolidated Results of Operations
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(Unaudited)
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For The Three
Months Ended
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March March
29, 30,
2006 2005
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Revenues:
Rental income $231,900 $66,800
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Total revenues: 231,900 66,800
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Costs and expenses:
Depreciation and amortization 73,400 53,100
General and administrative expenses 368,200 712,100
Loss on equipment disposition 17,000 19,200
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Total costs and expenses 458,600 784,400
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Loss from operations -226,700 -717,600
Investment (loss) gain 165,300 0
Interest and other income 320,300 -12,700
Interest expense -121,100 -382,579
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Loss from continuing operations
before income taxes -192,800 -1,112,900
Income tax benefit 72,100 0
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Loss from continuing operations -120,700 -1,112,900
Discontinued operations:
Income from discontinued
operations 0 1,371,100
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Net income (loss) -120,700 258,200
Cumulative preferred stock dividend -19,100 -19,100
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Net income (loss) available
(attributable) to common
shareholders -$139,800 $239,100
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Basic income (loss) per share
Continuing operations -$0.04 -$0.30
Discontinued operations 0.00 0.36
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Net income (loss) -$0.04 $0.06
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Basic weighted average common
shares outstanding 3,906,800 3,790,000
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Diluted income (loss) per share
Continuing operations -$0.04 -$0.30
Discontinued operations 0.00 0.36
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Net income (loss) -$0.04 $0.06
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Diluted weighted average common
shares outstanding 3,906,800 3,790,000
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