Educational Development Corporation Announces Fiscal 2025 Second Quarter and Year to Date Results
Educational Development (NASDAQ: EDUC) reported financial results for the fiscal second quarter ended August 31, 2024. The company experienced a significant decline in performance compared to the prior year. Net revenues decreased to $6.5 million from $10.6 million, while the average active PaperPie Brand Partners dropped to 13,900 from 18,100. The company reported a net loss of $(1.8) million, compared to a net profit of $1.1 million in the same quarter last year.
CEO Craig White highlighted ongoing cost reduction efforts, including leasing out 50% of office and warehouse space, switching outbound freight carriers, and consolidating warehouse operations. The company is also in the process of selling its Hilti Complex, which is expected to eliminate all borrowings. Despite the challenges, EDC remains committed to improving children's literacy and returning to profitability for shareholders.
Educational Development (NASDAQ: EDUC) ha riportato i risultati finanziari per il secondo trimestre fiscale conclusosi il 31 agosto 2024. L'azienda ha registrato un calo significativo delle performance rispetto all'anno precedente. I ricavi netti sono diminuiti a 6,5 milioni di dollari, rispetto ai 10,6 milioni di dollari, mentre il numero medio di partner attivi del brand PaperPie è sceso a 13.900, rispetto ai 18.100. L'azienda ha riportato una perdita netta di $(1,8) milioni, rispetto a un profitto netto di 1,1 milioni di dollari nello stesso trimestre dell'anno precedente.
Il CEO Craig White ha evidenziato gli sforzi in corso per ridurre i costi, tra cui l'affitto del 50% degli spazi di ufficio e magazzino, il cambio dei vettori di spedizione e la consolidazione delle operazioni di magazzino. L'azienda è anche in procinto di vendere il suo Complesso Hilti, il che si prevede eliminerà tutti i debiti. Nonostante le sfide, EDC rimane impegnata a migliorare l'alfabetizzazione infantile e a tornare a essere redditizia per gli azionisti.
Educational Development (NASDAQ: EDUC) informó los resultados financieros para el segundo trimestre fiscal terminado el 31 de agosto de 2024. La compañía experimentó una caída significativa en su rendimiento en comparación con el año anterior. Los ingresos netos disminuyeron a 6,5 millones de dólares desde 10,6 millones, mientras que el promedio de socios activos de la marca PaperPie bajó a 13,900 desde 18,100. La compañía reportó una pérdida neta de $(1,8) millones, en comparación con una ganancia neta de 1,1 millones de dólares en el mismo trimestre del año pasado.
El CEO Craig White destacó los esfuerzos continuos para reducir costos, incluyendo el alquiler del 50% del espacio de oficina y almacén, el cambio de transportistas de carga saliente y la consolidación de operaciones de almacén. La empresa también está en proceso de vender su Complejo Hilti, que se espera elimine todos los préstamos. A pesar de los desafíos, EDC sigue comprometida a mejorar la alfabetización infantil y a regresar a la rentabilidad para los accionistas.
Educational Development (NASDAQ: EDUC)는 2024년 8월 31일로 종료된 회계 연도 2분기 재무 결과를 보고했습니다. 회사는 전년 대비 실적이 크게 감소했습니다. 순수익은 10.6백만 달러에서 6.5백만 달러로 감소했으며, 평균 활성 PaperPie 브랜드 파트너 수는 18,100명에서 13,900명으로 감소했습니다. 회사는 전년 같은 분기에서 1.1백만 달러의 순이익을 기록한 데 비해 $(1.8) 백만 달러의 순손실을 보고했습니다.
CEO인 Craig White는 사무실과 창고 공간의 50%를 임대하고, 외부 화물 운송업체를 변경하며, 창고 운영을 통합하는 등 비용 절감 노력을 강조했습니다. 회사는 또한 모든 차입금을 청산할 것으로 예상되는 Hilti Complex의 매각을 진행 중입니다. 어려움에도 불구하고 EDC는 아동 문해력을 개선하고 주주를 위한 수익성으로 돌아가는 데 전념하고 있습니다.
Educational Development (NASDAQ: EDUC) a annoncé les résultats financiers du deuxième trimestre fiscal se terminant le 31 août 2024. L'entreprise a connu un déclin significatif de performance par rapport à l'année précédente. Les revenus nets ont diminué à 6,5 millions de dollars contre 10,6 millions de dollars, tandis que le nombre moyen de partenaires actifs de la marque PaperPie est passé de 18 100 à 13 900. L'entreprise a signalé une perte nette de $(1,8) millions, par rapport à un bénéfice net de 1,1 million de dollars au même trimestre de l'année dernière.
Le PDG Craig White a souligné les efforts en cours pour réduire les coûts, y compris la location de 50 % des espaces de bureaux et d'entrepôt, le changement de transporteurs pour les expéditions sortantes et la consolidation des opérations d'entrepôt. L'entreprise est également en train de vendre son complexe Hilti, ce qui devrait éliminer tous les emprunts. Malgré les défis, EDC reste engagé à améliorer l'alphabétisation des enfants et à revenir à la rentabilité pour les actionnaires.
Educational Development (NASDAQ: EDUC) hat die finanziellen Ergebnisse für das im 2. Finanzquartal endende Quartal zum 31. August 2024 veröffentlicht. Das Unternehmen verzeichnete einen signifikanten Rückgang der Leistung im Vergleich zum Vorjahr. Die Nettoeinnahmen fielen auf 6,5 Millionen US-Dollar gegenüber 10,6 Millionen US-Dollar, während die durchschnittliche Anzahl aktiver PaperPie-Markenpartner auf 13.900 von 18.100 zurückging. Das Unternehmen vermeldete einen Nettoverlust von $(1,8) Millionen, verglichen mit einem Nettogewinn von 1,1 Millionen US-Dollar im gleichen Quartal des Vorjahres.
CEO Craig White hob fortlaufende Kostensenkungsmaßnahmen hervor, einschließlich der Vermietung von 50 % der Büro- und Lagerflächen, dem Wechsel der Transportdienstleister und der Konsolidierung der Lagerbetriebe. Das Unternehmen befindet sich auch im Verkaufsprozess seines Hilti-Komplexes, dessen Verkauf voraussichtlich alle Verbindlichkeiten beseitigen wird. Trotz der Herausforderungen bleibt EDC verpflichtet, die Lesefähigkeit von Kindern zu verbessern und die Rentabilität für die Aktionäre zurückzugewinnen.
- Leased 50% of office and warehouse space, generating income from underutilized space
- Reduced average cost per shipment by approximately 20% by switching outbound freight carrier
- Executed Letter of Intent to sell/lease back Hilti Complex, expected to fully pay back bank debt
- Consolidated warehouse operations in Utah into Tulsa facility for increased efficiency
- Net revenues decreased 38.6% to $6.5 million from $10.6 million year-over-year
- Average active PaperPie Brand Partners declined 23.2% to 13,900 from 18,100
- Reported net loss of $(1.8) million compared to net profit of $1.1 million in prior year
- Year-to-date net revenues down 34.3% to $16.5 million from $25.1 million
- Year-to-date net loss of $(3.1) million compared to net profit of $0.2 million in prior year
Insights
The fiscal Q2 2025 results for Educational Development (EDUC) show significant challenges. Net revenues declined
Key factors impacting results include:
- Absence of a
$3.8 million Employee Retention Tax Credit received in Q2 2024 - Ongoing cost reduction efforts, including leasing out 50% of office/warehouse space
- 20% reduction in average shipping costs from switching carriers
- Consolidation of Utah warehouse operations into Tulsa facility
The company is pursuing a sale-leaseback of its Hilti Complex, excluding 17 acres of excess land, with expected completion by year-end. This move aims to eliminate debt and reduce future borrowing needs. While these efforts may improve the financial position, the significant revenue decline and continued losses indicate persistent challenges in the core business model that require close monitoring.
Tulsa, Oklahoma--(Newsfile Corp. - October 10, 2024) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal second quarter ended August 31, 2024.
Second Quarter Summary Compared to the Prior Year Second Quarter
- Net revenues were
$6.5 million compared to$10.6 million . - Average active PaperPie Brand Partners totaled 13,900 compared to 18,100.
- Earnings (loss) before income taxes were
$(2.5) million , compared to$1.5 million . - Net earnings (loss) totaled
$(1.8) million , compared to$1.1 million . - Earnings (loss) per share totaled
$(0.22) compared to$0.13 on a fully diluted basis.
Year-to-Date Summary Compared to the Prior Year
- Net revenues of
$16.5 million , compared to$25.1 million . - Average active PaperPie Brand Partners totaled 13,700, compared to 20,600.
- Earnings (loss) before income taxes of
$(4.2) million , compared to$0.3 million . - Net earnings (loss) totaled
$(3.1) million , compared to$0.2 million . - Earnings (loss) per share totaled
$(0.37) , compared to$0.02 on a fully diluted basis.
Per Craig White, Chief Executive Officer, "Throughout this year we have continued to focus on additional cost reductions and efficiency gains in efforts to restore profitability. In July we leased approximately
"The largest improvement in our financial performance will occur when we sell our Hilti Complex and eliminate our borrowings with our bank. On September 19th we executed a Letter of Intent to sell/lease back the Hilti Complex. The agreement excludes the 17 acres of excess land which will remain under the EDC's ownership. The proceeds from the sale, which is expected to be completed around the end of this calendar year, are expected to fully pay back the bank leaving us with no debt and we expect to have limited borrowing needs moving forward."
"Additionally, during the second quarter last year we received an Employee Retention Tax Credit totaling
"The results from these key changes reflect our commitment to returning to profitability for our shareholders. I would like to again thank our stakeholders for your ongoing support, including our Brand Partners, Customers, Employees, Vendors and Shareholders. Through your support, we remain steadfast in our mission to improve children's literacy," concluded Mr. White.
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended August 31, | Six Months Ended August 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| NET REVENUES | $ | 6,509,200 | $ | 10,593,100 | $ | 16,502,600 | $ | 25,117,100 | ||||||
| EARNINGS (LOSS) BEFORE INCOME TAXES | (2,466,100 | ) | 1,452,900 | (4,213,100 | ) | 252,300 | ||||||||
| INCOME TAX EXPENSE (BENEFIT) | (662,700 | ) | 391,200 | (1,130,700 | ) | 63,400 | ||||||||
| NET EARNINGS (LOSS) | $ | (1,803,400 | ) | $ | 1,061,700 | $ | (3,082,400 | ) | $ | 188,900 | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||||||||||||
| Basic | 8,272,217 | 8,269,771 | 8,269,494 | 8,273,910 | ||||||||||
| Diluted | 8,272,217 | 8,269,771 | 8,269,494 | 8,283,221 | ||||||||||
Fiscal 2025 Second Quarter Earnings Call
Date: Thursday, October 10, 2024
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 47709
The conference call will be broadcast live and audio replays will be available following the event at www.edcpub.com/investors.
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser (214) 872-2710
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 brand partners, 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, cybersecurity threats and incidents, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 29, 2024, 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, 2024 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226271
FAQ
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