EACO Corporation (EACO) has reported a 2.33 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $0.75 million, or $0.15 a share in the quarter, compared with $0.73 million, or $0.15 a share for the same period last year. Revenue during the quarter grew 7.79 percent to $37.28 million from $34.59 million in the previous year period. Gross margin for the quarter contracted 91 basis points over the previous year period to 28.35 percent. Total expenses were 96.62 percent of quarterly revenues, down from 97.01 percent for the same period last year. This has led to an improvement of 40 basis points in operating margin to 3.38 percent.
Operating income for the quarter was $1.26 million, compared with $1.03 million in the previous year period.
Operating cash flow remains negative
EACO Corporation has spent $4.50 million cash to meet operating activities during the first half as against cash outgo of $1.95 million in the last year period. The company has spent $0.69 million cash to meet investing activities during the first six months as against cash outgo of $1.07 million in the last year period.
Cash flow from financing activities was $5.42 million for the first six months, up 147.06 percent or $3.23 million, when compared with the last year period.
Cash and cash equivalents stood at $5 million as on Feb. 28, 2017, up 14.33 percent or $0.63 million from $4.37 million on Feb. 29, 2016.
Working capital increases sharply
EACO Corporation has recorded an increase in the working capital over the last year. It stood at $33.30 million as at Feb. 28, 2017, up 25.25 percent or $6.71 million from $26.58 million on Feb. 29, 2016. Current ratio was at 2.74 as on Feb. 28, 2017, down from 2.78 on Feb. 29, 2016.
Cash conversion cycle (CCC) has increased to 42 days for the quarter from 33 days for the last year period. Days sales outstanding went up to 23 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has increased to 41 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 21 for the same period last year.
Debt increases substantially
EACO Corporation has witnessed an increase in total debt over the last one year. It stood at $4.02 million as on Feb. 28, 2017, up 294.50 percent or $3 million from $1.02 million on Feb. 29, 2016. Eaco Corp has witnessed an increase in long-term debt over the last one year. It stood at $4.02 million as on Feb. 28, 2017, up 294.50 percent or $3 million from $1.02 million on Feb. 29, 2016. Total debt was 7.27 percent of total assets as on Feb. 28, 2017, compared with 2.31 percent on Feb. 29, 2016. Debt to equity ratio was at 0.13 as on Feb. 28, 2017, up from 0.04 as on Feb. 29, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
