Educational Development Corporation Announces Fiscal First Quarter 2021 Results
Educational Development Corporation (EDC) reported significant growth for the first quarter ended May 31, 2020, with net revenues of $38.29 million, a 38.8% increase from the prior year. Net earnings reached $1.93 million, up 41.6%, with earnings per share at $0.23, compared to $0.17 last year. The direct sales division, Usborne Books and More, saw revenues grow by 46.3% to $36.93 million. However, the Publishing division faced a 41.6% revenue decline due to COVID-19 store closures. EDC declared a $0.06 dividend, payable on September 10, 2020.
- Net revenues increased by 38.8% to $38.29 million.
- Net earnings rose by 41.6% to $1.93 million.
- Earnings per share grew by 35.3% to $0.23.
- Active consultants increased by 4.7%, reaching 33,100.
- Direct sales division revenues increased by 46.3%.
- Publishing division revenues fell by 41.6% due to COVID-19 store closures.
TULSA, Okla., July 09, 2020 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC) (http://www.edcpub.com) today reports net revenues and earnings per share results for the first quarter ended May 31, 2020.
Randall White, CEO of Educational Development Corporation, announced that for the first quarter ended May 31, 2020, the Company reports net revenues of
The net revenues of our direct sales division, Usborne Books and More (“UBAM”) totaled
The Publishing divisions net revenues decreased
Per Mr. White, “Due to the closures of many schools during the quarter, we experienced increased demand for educational materials in homes. Our increase in active UBAM consultants and our ability to receive orders online and deliver directly to our customers’ homes resulted in our increased UBAM revenues during the quarter. We are excited to see this increase in demand for our products continue through the summer and into the fall as parents continue to limit outside activities and look to homeschooling options for the fall semester. We are also excited by the continued growth in active consultants. We are seeing our recruiting numbers climb to new levels as families look for non-traditional income streams to supplement or replace their income levels maintained prior to the COVID-19 pandemic.”
Mr. White continued, “We are also cautiously optimistic about the return of sales in our Publishing division. As stores begin to reopen, we expect they will also experience increased demand for educational materials and will be making additional orders of stock, as well as expanding the line of products they carry in their stores.”
Mr. White concluded, “Due to our consistent positive cash flows, along with the increase in net revenues during the first quarter of fiscal 2021, our Board of Directors has approved the continued payment of the quarterly dividend and authorized a
| EDUCATIONAL DEVELOPMENT CORPORATION | |||||
| CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) | |||||
| Three Months Ended May 31, | |||||
| 77%; width: | 1%; width: | 9%; width: | 3%; width: | 1%; width: | 9%; width: |
| NET REVENUES | $ | 38,291,700 | $ | 27,587,400 | |
| EARNINGS BEFORE INCOME TAXES | 2,643,900 | 1,846,500 | |||
| INCOME TAXES | 712,800 | 482,900 | |||
| NET EARNINGS | $ | 1,931,100 | $ | 1,363,600 | |
| BASIC AND DILUTED EARNINGS | |||||
| PER SHARE: | |||||
| Basic | $ | 0.23 | $ | 0.17 | |
| Diluted | $ | 0.23 | $ | 0.17 | |
| DIVIDENDS DECLARED PER SHARE | $ | 0.06 | $ | 0.05 | |
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | |||||
| Basic | 8,352,424 | 8,184,272 | |||
| Diluted | 8,352,424 | 8,191,062 | |||
EDC will host its first quarter fiscal 2021 Earnings Call, including a live Q&A webcast, on Wednesday, July 15, 2020 at 3:00 PM CT (4:00 PM ET). Randall White, the Company’s CEO and President, Craig White, Chief Operating Officer, Heather Cobb, Chief Sales and Marketing Officer and Dan O’Keefe, CFO and Secretary, will present the first quarter results and be available for questions following the presentation. Phone lines for participants will be available at (855) 639-3876 (International callers can use (602) 585-9973). The conference ID is 7634219.
Audio 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 trade co-publisher of the line of educational children’s books produced in the United Kingdom by Usborne Publishing Limited (“Usborne”) and we also exclusively publish books through our ownership of Kane Miller Book Publisher (“Kane Miller”); both international award-winning publishers of 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, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 29, 2020, 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, 2020 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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