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Eaco Corp. (EACO+2.67%) has submitted its 10-K filing for the fiscal year ended August 31, 2024.
The filing includes financial statements for the year, showing an increase in revenues to $356,231,000 from $319,397,000 in the previous year. The increase is attributed to added sales employees and higher inventory stock available.
Cost of revenues for the year was $250,019,000, compared to $226,981,000 in the previous year. This reflects a 10.1% increase, which is slightly lower than the revenue growth rate.
The company reported a gross margin of $106,212,000 for the year, compared to $92,416,000 in the previous year. The increase in gross margin is due to improved relationships with vendors and customers.
Selling, general, and administrative expenses increased to $80,971,000 from $64,936,000, primarily due to higher personnel costs and a legal expense accrual related to a pending class action lawsuit.
Net income for the year was $14,951,000, down from $21,185,000 in the previous year. The decrease is primarily due to an impairment loss and legal settlement accrual.
Cash provided by operating activities was $14,077,000, while cash used in investing activities was $20,455,000, mainly due to the purchase of the Hunter Property.
Eaco had a working capital of $142,001,000 as of August 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a line of credit agreement with Citizens Business Bank (CVBF+0.40%) and a construction loan for tenant improvements.
Eaco does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting related to the financial statement closing process.
Eaco continues to focus on expanding its operations and revenues by opening additional sales offices in new geographic locations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Eaco Corp. annual 10-K report dated November 29, 2024. To report an error, please email earnings@qz.com.