EACO.OB reported Q1 earnings of .07/share vs. a loss. Stock is only at .97. But those results probably include the $1.3M gain from a sale-leaseback transaction in January? This is the company that is trying to sell 16 of its restaurants for $30M.
EACO Corporation Completes Financing Transaction for Whistle Junctions
TUESDAY, JANUARY 18, 2005 9:17 AM
- BusinessWire
NEPTUNE BEACH, Fla., Jan 18, 2005 (BUSINESS WIRE) -- EACO Corporation (EACO) today announced that it completed a sale-leaseback financing transaction designed to provide funding for remodels of several of its Ryan's restaurants to its new Whistle Junction concept. The Company sold one of its restaurants for $2.6 million, and entered into a 20 year lease on the restaurant property. After payment of debt of approximately $1.1 million and closing and selling costs of approximately $200,000, the transaction provided net proceeds to the Company of approximately $1.3 million. The Company intends to use these proceeds to remodel several of its Ryan's Restaurants to its successful new Whistle Junction concept.
Edward B. Alexander, President of the Company, remarked, "We are excited to complete this transaction, and we are looking forward to accelerating the process of converting more of our restaurants to our new Whistle Junction concept. We have been very pleased with the results of the conversions we have done to date, and we are convinced that the Whistle Junction concept will result in a successful transition of our existing restaurants and provide an exciting growth vehicle for the future."
The Company's next Whistle Junction opening is planned for its restaurant in Jacksonville in the Regency Square area, shortly after the NFL's Super Bowl in Jacksonville in February. The Company currently operates four Whistle Junction restaurants, six Florida Buffets and seven Ryan's restaurants. The Company intends to convert all of the Ryan's restaurants by June 30, 2005.
SOURCE: EACO Corporation
EACO Corporation, Neptune Beach
Stephen Travis, 904-249-4197
AI
