Educational Development Corporation (“EDC”) (NASDAQ:EDUC)
(http://www.edcpub.com) today reports record net sales and earnings
per share results for the first quarter ended May 31, 2018.
Randall White, CEO of Educational Development Corporation,
announced that for the fiscal first quarter ended May 31, 2018, the
Company reports record net revenues of $30,022,300, an increase of
$3,081,100, or 11%, when compared to our restated revenues of
$26,941,200 for first quarter of the previous year. Our
prior year revenues have been restated to conform to the new
revenue recognition accounting standards we adopted in the first
quarter of fiscal 2019. The prior year revenue restatement
did not have an impact on our prior year earnings. Net
earnings totaled $1,816,600 for quarter ended May 31, 2018,
compared to $1,225,300 for the quarter ended May 31, 2017, an
increase of 48%. Earnings per share for the quarter
were $0.44 compared to $0.30 for the same quarter in the previous
year, up 47% on a fully diluted basis.
The direct sales division, Usborne Books & More (“UBAM”),
continued to have strong growth this quarter driven by the
continued sales and recruiting efforts of our active sales
consultants. Net revenues of this division increased by 12%
from $24,819,100 in the quarter ended May 31, 2017 to our restated
revenues of $27,716,100 in the quarter ended May 31,
2018. The number of active direct sales consultants also
increased to 34,900 at the end of first quarter ended May 31, 2018,
an increase of 7,300, or 26%, over the active consultant count as
of May 31, 2017.
The Publishing’s divisions net revenues increased 9% to
$2,306,200 in the first quarter of fiscal 2019 from $2,122,100 for
the same quarter a year ago. Publishing sales increased
primarily from an increase in order volumes with our smaller
customers and fewer returns with our largest customers during the
first quarter of fiscal 2019.
Per Mr. White, “In the first quarter of fiscal year 2019 we
continued our recent double digit growth that started in the third
quarter of last year. We reported on our last earnings
call that we had an increase in order volumes of 11% in the third
quarter and 15% in the fourth quarter. We are pleased to
report this trend of double digit growth has continued through the
first quarter of fiscal 2019. This growth would not be
possible without the continued success of our UBAM Consultants and
their recruiting and sales efforts. I am also pleased to
report that our Publishing Division is reporting its first revenue
growth quarter in over a year. We have high
expectations that the Publishing Division will return to historical
sales levels.”
Mr. White continued, “In addition to our revenue growth, the
Company is reporting increased operational profits this quarter
which resulted from several of the system upgrades and operational
changes we have made over the past two years. The investment
in upgrades and changes in our operations have also resulted in our
shipping efficiency being restored to historical
levels. We are glad to report that we are currently
shipping 98% of packages within 48 hours of receipt of order.
Also, the improvement of our quality control has reduced our error
rate from as high as 7% a little more than a year ago to less than
2% currently.
Mr. White concluded, “I would also like to take this opportunity
to mention that we are still collecting votes for the proposals
presented to our shareholders in the recent Proxy
Statement. These proposals include the increase in the
authorized shares of the Company to allow us to execute an
effective stock split as well as the proposal to approve the Long
Term Incentive Plan for our management team.”
|
EDUCATIONAL DEVELOPMENT CORPORATION |
CONDENSED FINANCIAL RESULTS |
|
Three Months ended May 31, |
|
2018 |
|
2017 |
NET REVENUES |
$30,022,300 |
|
$26,941,200 |
EARNINGS BEFORE INCOME
TAXES |
2,495,800 |
|
1,982,200 |
INCOME TAXES |
679,200 |
|
756,900 |
NET EARNINGS |
$1,816,600 |
|
$1,225,300 |
|
|
|
|
BASIC AND DILUTED
EARNINGS PER SHARE |
|
|
|
Basic |
$0.44 |
|
$0.30 |
Diluted |
$0.44 |
|
$0.30 |
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON AND EQUIVALENT |
|
|
|
SHARES
OUTSTANDING |
|
|
|
Basic |
4,088,595 |
|
4,090,143 |
Diluted |
4,092,504 |
|
4,093,898 |
|
|
|
|
EDC will host its first quarter fiscal 2018 results Investor
Call including a live Q&A webcast on Thursday, July 19, 2018,
at 2 PM CT (3 PM ET). Randall White, the Company’s CEO and
President and Dan O’Keefe, CFO and Secretary, will present the
annual results and be available for questions following the
presentation. Phone lines for participants will be available
at (844) 395-9253 (International callers can use (478)
219-0506. The conference passcode is 5978718 The weblink to
the call is https://edge.media-server.com/m6/p/tbtg6hfq.
The link to the webcast, including replays will be available
following the event at www.edcpub.com/investors.aspx.
About Educational Development Corporation
(EDC)EDC is a publishing company specializing in books for
children. EDC is the exclusive United States distributor of the
UK-based Usborne Books and owns Kane Miller Publishers;
award-winning publishers of international children’s books. EDC’s
current catalog contains over 2,000 titles, with new additions
semi-annually. Both Usborne and Kane Miller products are sold via
4,000 retail outlets and by independent consultants, who hold book
showings in individual homes, through social media, book fairs with
school and public libraries, direct and internet sales.
Contact: |
|
|
Educational Development
Corporation |
|
Randall White, (918)
622-4522 |
Cautionary Statement for the Purpose of the
“Safe Harbor” Provision of the Private Securities Litigation Reform
Act of 1995.
The information discussed in this Press Release includes
“forward-looking statements.” These forward-looking statements are
identified by their use of terms and phrases such as “may,”
“expect,” “estimate,” “project,” “plan,” “believe,” “intend,”
“achievable,” “anticipate,” “continue,” “potential,” “should,”
“could,” and similar terms and phrases. Although we believe
that the expectations reflected in these forward-looking statements
are reasonable, they do involve certain assumptions, risks and
uncertainties and we can give no assurance that such expectations
or assumptions will be achieved. Known and unknown risks,
uncertainties and other factors may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, our
success in recruiting and retaining new consultants, our ability to
locate and procure desired books, our ability to ship the volume of
orders that are received without creating backlogs, our ability to
obtain adequate financing for working capital and capital
expenditures, economic and competitive conditions, regulatory
changes and other uncertainties, as well as those factors discussed
in our Annual Report on Form 10-K for the year ended February 28,
2018, all of which are difficult to predict. In light of
these risks, uncertainties and assumptions, the forward-looking
events discussed may not occur. All forward-looking
statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements
in this paragraph and elsewhere in our Annual Report on Form 10-K
for the year ended February 28, 2018 and speak only as of the date
of this Press Release. Other than as required under the
securities laws, we do not assume a duty to update these
forward-looking statements, whether as a result of new information,
subsequent events or circumstances, changes in expectations or
otherwise.
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