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Eaco (EACO)

EACO Corp. is a holding company, which engages in the distribution of electronic components and fasteners through its subsidiary. It focuses on the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment, and marine industries. The company was founded on September 26, 1985 and is headquartered in Anaheim, CA.

EACO stock data

Calendar

14 Jul 22
12 Aug 22
31 Aug 22
Quarter (USD) Aug 21 May 21 Feb 21 Nov 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Aug 21 Aug 20 Aug 19 Aug 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 4.46M 4.46M 4.46M 4.46M 4.46M 4.46M
Cash burn (monthly) (no burn) 378.33K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 4.31M n/a n/a n/a n/a
Cash remaining n/a 140.25K n/a n/a n/a n/a
Runway (months of cash) n/a 0.4 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
21 Jan 22 Ceiley Glen Common stock Gift Dispose G Yes No 0 7,500 0 4,689,019
11 Aug 21 Ceiley Glen Common stock Sell Dispose S Yes No 19.7 900 17.73K 4,696,519
5 Aug 21 Ceiley Glen Common stock Sell Dispose S Yes No 19.6 900 17.64K 4,697,419
5 Aug 21 Ceiley Glen Common stock Sell Dispose S Yes No 19.4 900 17.46K 4,698,319
28 Jul 21 Ceiley Glen common stock Sell Dispose S Yes No 19.5 900 17.55K 4,699,219
28 Jul 21 Ceiley Glen common stock Sell Dispose S Yes No 19.3 900 17.37K 4,700,119
27 Jul 21 Ceiley Glen common stock Sell Dispose S Yes No 19.3 876 16.91K 4,701,019
20 Jul 21 Ceiley Glen common stock Sell Dispose S Yes No 19.35 900 17.42K 4,701,895
20 Jul 21 Ceiley Glen common stock Sell Dispose S Yes No 19.15 900 17.24K 4,702,795
27 Apr 21 Ceiley Glen Common Stock Sell Dispose S Yes No 17.5 400 7K 4,703,295

Financial report summary

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Risks
  • Our business and results of operations may be adversely impacted as a result of the recent COVID-19 outbreak.
  • We generally do not have long-term supply agreements or guaranteed price or delivery arrangements with the majority of our suppliers.
  • Our supply agreements are generally terminable at the suppliers’ discretion.
  • We generally do not have long-term sales contracts with our customers.
  • We rely on third party suppliers for most of our products, and may not be able to identify and procure relevant new products and products lines that satisfy our customers’ needs on favorable terms and prices, or at all.
  • Our advertising and marketing efforts may be costly and may not achieve desired results.
  • Increases in the costs of energy, shipping and raw materials used in our products could impact our cost of goods and distribution and occupancy expenses, which would result in lower operating margins.
  • The unauthorized access to, or theft or destruction of, customer or employee personal, financial or other data or of our proprietary or confidential information that is stored in our information systems or by third parties on our behalf could impact our reputation and brand and expose us to potential liability and loss of revenues.
  • We rely heavily on our internal information systems, which, if not properly functioning, could materially and adversely affect our business.
  • We may not be able to attract and retain key personnel.
  • The competitive pressures we face could have a material adverse effect on our business.
  • Our strategy of expanding into new geographic areas could be costly and may not expand our revenues.
  • We may be unable to meet our goals regarding new office openings.
  • Opening sales offices in new markets presents increased risks that may prevent us from being profitable in these new locations, and/or may adversely affect our operating results.
  • Our ability to successfully attract and retain qualified sales personnel is uncertain.
  • We have incurred significant losses in the past from trading in securities, and we may incur such losses in the future, which may also cause us to be in violation of covenants under our loan agreement.
  • We may not have adequate or cost-effective liquidity or capital resources.
  • We are exposed to foreign currency exchange rate risk, and changes in foreign exchange rates could increase our costs to procure products and impact our foreign sales.
  • The Company’s Chairman and CEO holds almost all of our voting stock and can control the election of directors and significant corporate actions.
  • Sales of our common stock by Glen Ceiley could cause the price of our common stock to decline.
  • Changes and uncertainties in the economy have harmed and could continue to harm our operating results.
Management Discussion
  • Revenues consist primarily of sales of component parts and fasteners, and also include, to a lesser extent, kitting charges and special order fees, as well as freight charged to customers. The increase in revenues in fiscal 2021 compared to fiscal 2020 was largely due to a higher volume of product sales, as well as increased productivity from the Company’s employees due to better training and management. Revenues have also increased due in part to an increased focus to sell to international customers. Sales to international customers has increased 1% as a percentage of revenues.
  • The gross margins in fiscal 2021 decreased by 1.0%, as a percentage of revenues, when compared to fiscal 2020. This decrease is primarily due to higher material expense and increased expenses related to warehouse and supply chain that are allocated to the cost of revenues. This decrease was also due in part to the overall declines in gross profit margin due to the global industry-wide shortages and the impacts from the COVID-19 pandemic.
  • Selling, general and administrative expense (“SG&A”) consists primarily of payroll and related expenses for the sales and administrative staff, professional fees (including accounting, legal and technology costs and expenses), and advertising costs. SG&A in fiscal 2021 decreased from fiscal 2020 largely due to a decrease in payroll taxes as a result of federal tax credits related to the Employee Retention Credit (ERC) of $5.4 million. Further, the decrease is also due to a decrease in the number of sales and administrative employees, from 525 employees in fiscal 2020 to 484 employees in fiscal 2021. Fiscal 2020 also had non-recurring expense incurred related to the relocation of the Company’s corporate headquarters to the Hunter Property. The decrease in SG&A was partially offset due to annual raises and higher depreciation expense. SG&A as a percent of revenue in fiscal 2021 decreased from fiscal 2020 primarily due to decreased employee headcount and higher sales growth due to the rebounding economy.

Content analysis

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