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, 2017.
Randall White, CEO of Educational Development Corporation,
announced that for the fiscal first quarter ended May 31, 2017, the
Company reports record net revenues of $26,930,800, an increase of
$4,146,600, or 18%, when compared to $22,784,200 for first quarter
of the previous year. Net earnings totaled $1,225,300 for
quarter ended May 31, 2017, compared to $620,200 for the quarter
ended May 31, 2016, an increase of 98%. Earnings per
share for the quarter were $0.30 compared to $0.15 for the same
quarter in the previous year, up 100% on a fully diluted basis.
The direct sales division, Usborne Books & More (“UBAM”),
continued to have strong growth this quarter driven by the success
and growth of our active sales consultants. Net revenues of
this division increased by 20% from $20,650,200 in the quarter
ended May 31, 2016 to $24,808,700 in the quarter ended May 31,
2017. The number of active direct sales consultants also
increased to 27,600 at the end of first quarter ended May 31, 2017,
an increase of 7,000, or 27%, over the active consultant count as
of May 31, 2016.
The Publishing’s divisions revenues remained consistent at
$2,122,100 for the quarter ended May 31, 2017 as compared to
$2,134,000 for the same quarter a year ago.
Per Mr. White, “In the first quarter of fiscal year 2018 we
continued our growth trend that we have been experiencing for the
past several years. We continued to add new consultants this
quarter which, along with the success of our existing consultants,
had a positive impact on the net sales of our UBAM
division.
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 year. We expect to see continued
improvements in our operational performance as we continue to
invest in automation within our warehouse and distribution
facility, much of which we expect to have completed this fall.”
EDUCATIONAL DEVELOPMENT CORPORATION |
CONDENSED FINANCIAL RESULTS |
|
|
|
|
Three Months ended May 31, |
|
|
|
|
|
2017 |
|
|
2016 |
NET
REVENUES |
|
|
$ |
26,930,800 |
|
$ |
22,784,200 |
EARNINGS
BEFORE INCOME TAXES |
|
|
1,982,155 |
|
|
1,004,560 |
INCOME
TAXES |
|
|
|
756,900 |
|
|
384,400 |
NET
EARNINGS |
|
|
$ |
1,225,255 |
|
$ |
620,160 |
|
|
|
|
|
|
|
BASIC AND
DILUTED EARNINGS PER SHARE |
|
|
|
|
Basic |
|
|
|
$ |
0.30 |
|
$ |
0.15 |
Diluted |
|
|
|
$ |
0.30 |
|
$ |
0.15 |
|
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF COMON AND EQUIVALENT |
|
|
|
SHARES OUTSTANDING |
|
|
|
|
Basic |
|
|
|
|
4,090,143 |
|
|
4,068,679 |
Diluted |
|
|
|
|
4,093,898 |
|
|
4,074,597 |
|
|
|
|
|
|
|
|
|
EDC will host its first quarter fiscal 2018 results Investor
Call including a live Q&A webcast on Tuesday, July 25, 2017, 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 57392486. The weblink
to the call is
http://edge.media-server.com/m/p/ptkg2m3j.
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
5,000 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.
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 29, 2016, 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 29, 2016 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.
Contact:
Educational Development Corporation
Randall White, (918) 622-4522
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