8-K 1 eaco8k110504.txt U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report November 5, 2004 (Date of earliest event reported) EACO CORPORATION (Exact name of registrant as specified in its charter) Florida (State or other jurisdiction of incorporation) 0-14311 59-2597349 (Commission File Number) (IRS Employer Identification No.) 2113 Florida Boulevard, Neptune Beach, FL 32266 (Address principal executive offices) (Zip Code) Registrant's telephone number, including area code (904) 249-4197 Item 5. Other Events On November 4, 2004, EACO Corporation (the "Company") issued a press release announcing operating results for the third quarter and year-to-date periods ended September 29, 2004. Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 Press Release dated November 4, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EACO Corporation Date: November 5, 2004 By: /s/ Edward B. Alexander Edward B. Alexander Chief Operating Officer/ President EXHIBIT INDEX Exhibit No. 99.1 Press Release dated November 4, 2004 issued by EACO Corporation. Exhibit 99.1 Contact: FOR IMMEDIATE RELEASE Stephen Travis Director of Finance (904) 249-4197 November 4, 2004 EACO CORPORATION REPORTS CONTINUED SAME-STORE SALES INCREASES FOR THIRD QUARTER NEPTUNE BEACH, FLORIDA - EACO Corporation (OTCBB:EACO), today reported revenues and operating results for the third quarter and year to date periods ended September 29, 2004. Same store sales increased 3.8% for the third quarter of 2004 compared to the same period in 2003. Total third quarter 2004 sales increased to $8,710,800 from $8,558,900 for the same period in 2003. Net loss for the third quarter decreased to $539,600 ($0.14 per share) from a net loss of $768,500 ($0.21 per share) for the same period in 2003. Sales for the nine months ended September 29, 2004 were $28,929,300 compared to $28,854,500 for the same period in 2003. Same store sales increased 7.1% for the nine months ended September 29, 2004, compared to the same period in 2003. Net loss for the nine months ended September 29, 2004 was $1,441,700 ($0.38 per share) compared to net loss of $1,218,300 ($0.33 per share) for the same period in 2003. The Company's results for the first nine months of 2004 include a non-cash asset valuation charge of $594,200, and store opening expenses associated with the Company' new Whistle Junction concept totaling $493,600. The Company's operations for the third quarter and nine months ended September 29, 2004 were negatively impacted by the effects of three major hurricanes during the months of August and September. Sales for the quarter and nine months ended September 29, 2004 were reduced by an estimated total of $660,000 due to stores closed temporarily as a result of damage from the three hurricanes. Edward B. Alexander, President of the Company, commented "Our same-store sales continue on a positive trend and have been for the last four quarters. This is largely a result of our converted Whistle Junction stores, which continue to show significant sales increases. We plan to convert several more of our existing stores to this concept, and expect similar positive results. These expected sales increases, combined with the continuing elimination of franchise fees due under the old franchise agreement, should return the Company to operating profitability in 2005." "We are also excited to announce our latest Whistle Junction restaurant opening on Monday, November 8th at our Fowler Avenue location in Tampa, Florida. This has been one of the Company's top locations, and we are making it even better with several new signature food items, great new train station decor, and even better service, while still remaining the best buffet value available anywhere. Our next scheduled conversion to Whistle Junction will be the Company's location at Regency Square in Jacksonville, Florida expected to be completed in late 2004 or early 2005."

EACO Corporation Condensed Consolidated Results of Operations (Unaudited) For The Quarters Ended For The Nine Months Ended September 29, October 1, September 29, October 1, 2004 2003 2004 2003 ------------- ---------- ----------- ----------- Revenues: Sales $8,710,800 $8,558,900 $28,929,300 $28,854,500 Vending revenue 40,600 53,600 136,800 160,900 ---------- ---------- ----------- ----------- Total revenues 8,751,400 8,612,500 29,066,100 29,015,400 ---------- ---------- ----------- ----------- Cost and expenses: Food and beverage 3,296,400 3,271,200 10,988,300 10,989,700 Payroll and benefits 2,811,700 2,707,300 8,905,700 8,697,300 Depreciation and amortization 494,300 488,300 1,476,200 1,511,900 Other operating expenses 1,536,500 1,628,000 4,849,900 5,013,200 General and administrative expenses 526,400 481,900 1,566,100 1,558,100 Franchise fees 245,200 341,800 912,100 1,153,400 Asset valuation charge -- -- 594,200 -- Loss on store closings and disposition of equipment 13,300 8,600 106,400 49,900 ---------- ---------- ----------- ----------- 8,923,800 8,927,100 29,398,900 28,973,500 ---------- ---------- ----------- ----------- (Loss) earnings from operations (172,400) (314,600) (332,800) 41,900 Investment (loss) gain 1,600 (78,300) 12,400 (105,800) Interest and other income 60,800 61,800 169,800 193,500 Gain (loss) on sale of property 3,400 (14,700) (28,700) (38,000) Interest expense (433,000) (422,700) (1,262,400) (1,309,900) --------- ---------- ----------- ----------- Loss before income taxes (539,600) (768,500) (1,441,700) (1,218,300) Provision for income taxes -- -- -- -- --------- ---------- ----------- ----------- Net loss (539,600) (768,500) (1,441,700) (1,218,300) ========= ========== =========== =========== Basic loss per share (0.14) (0.21) (0.38) (0.33) ========= ========== =========== =========== Basic weighted average common shares outstanding 3,881,500 3,706,200 3,790,000 3,706,200 ========= ========== =========== =========== Diluted loss per share ($0.14) ($0.21) ($0.38) ($0.33) ========= ========== =========== =========== Diluted weighted average common shares outstanding 3,881,500 3,706,200 3,790,000 3,706,200 ========= ========== =========== ===========