-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VrJu2h26/5O6v/PGgrrOCdLeOnqsjqXWSf4Td+QL93Ir7Sfsr/ZF73DsQgHEHW/q nobKp9CdOWX+Fz7arQt+vQ== 0000930661-97-000085.txt : 19970115 0000930661-97-000085.hdr.sgml : 19970115 ACCESSION NUMBER: 0000930661-97-000085 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961130 FILED AS OF DATE: 19970114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: EDUCATIONAL DEVELOPMENT CORP CENTRAL INDEX KEY: 0000031667 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190] IRS NUMBER: 730750007 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-04957 FILM NUMBER: 97505143 BUSINESS ADDRESS: STREET 1: 10302 E 55TH PL #B CITY: TULSA STATE: OK ZIP: 74146 BUSINESS PHONE: 9186224522 MAIL ADDRESS: STREET 1: PO BOX 470663 CITY: TULSA STATE: OK ZIP: 741460663 FORMER COMPANY: FORMER CONFORMED NAME: TUTOR TAPES INTERNATIONAL CORP DATE OF NAME CHANGE: 19701030 FORMER COMPANY: FORMER CONFORMED NAME: INTERNATIONAL TEACHING TAPES INC DATE OF NAME CHANGE: 19701030 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended November 30, 1996. [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to _______________ . Commission file number: 0-4957 EDUCATIONAL DEVELOPMENT CORPORATION (Exact name of registrant as specified in its charter) Delaware 73-0750007 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10302 East 55th Place #B, Tulsa Oklahoma 74146-6515 (Address of principal executive offices) Issuer's telephone number: (918) 622-4522 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of November 30, 1996 there were 5,196,762 shares of Educational Development Corporation Common Stock, $0.20 par value outstanding. 1 EDUCATIONAL DEVELOPMENT CORPORATION - -------------------------------------------------- PART I. FINANCIAL INFORMATION - ------------------------------ ITEM 1 BALANCE SHEETS
November 30, 1996 February 29, 1996 (unaudited) ----------------- ----------------- ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 8,100 $ 216,000 Accounts Receivable - (less allowances for doubtful accounts and returns: 11/30/96 - $270,100 2/29/96 - $228,000) 2,733,700 2,591,400 Inventories (Note 3) 8,893,400 11,776,100 Income Taxes Receivable -0- 352,300 Deferred Income Taxes (Note 1) 183,400 168,300 Prepaid Expenses 100,500 333,400 ----------- ----------- Total Current Assets 11,919,100 15,437,500 Property, plant and equipment at cost (less accumulated depreciation: 11/30/96 - $373,800 2/29/96 - $341,100) 889,700 815,400 Other Assets 14,500 5,100 ----------- ----------- Total Assets $12,823,300 $16,258,000 =========== ===========
2 EDUCATIONAL DEVELOPMENT CORPORATION - --------------------------------------------------------------------------- BALANCE SHEETS (continued)
November 30, 1996 February 29, 1996 (unaudited) ------------------ ----------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term obligations (Note 2) $ 2,920,000 $ 5,820,000 Accounts payable 1,208,000 3,215,700 Accrued salaries, bonuses and commissions 297,300 270,900 Income Taxes Payable 179,700 -- Other current liabilities 269,500 219,500 ----------- ----------- Total Current Liabilities 4,874,500 9,526,100 SHAREHOLDERS' EQUITY (Notes 4 and 5): Common Stock, par value of $0.20 per share (authorized 6,000,000 shares; issued 5,424,240 and 5,398,240 shares; outstanding 5,196,762 and 5,191,498 shares) 1,084,900 1,079,700 Capital in excess of par value 4,403,200 4,391,300 Retained earnings 3,104,200 1,788,300 ----------- ----------- 8,592,300 7,259,300 LESS TREASURY SHARES AT COST (643,500) (527,400) ----------- ----------- TOTAL SHAREHOLDERS' EQUITY 7,948,800 6,731,900 ----------- ----------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $12,823,300 $16,258,000 =========== ===========
3 EDUCATIONAL DEVELOPMENT CORPORATION - --------------------------------------------------------------------------- STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended November 30 Nine Months Ended November 30 ------------------------------- ------------------------------ 1996 1995 1996 1995 ------------ ------------ ------------ ------------- Gross Sales $ 8,885,200 $ 8,690,700 $ 24,611,700 $ 22,660,500 Less Discounts & Allowances (2,606,000) (2,785,400) (7,617,700) (8,058,900) ----------- ----------- ------------ ------------ Net Sales 6,279,200 5,905,300 16,994,000 14,601,600 Cost of Sales 2,355,800 2,358,900 6,672,700 6,064,800 ----------- ----------- ------------ ------------ Gross Margin 3,923,400 3,546,400 10,321,300 8,536,800 Operating & Selling Exp. 969,100 898,000 3,044,700 2,273,500 Sales Commissions 1,449,200 1,425,400 3,852,800 2,888,800 General & Admin. Exp. 348,000 238,300 947,900 643,500 Interest Expense 80,300 86,800 306,200 204,400 ----------- ----------- ------------ ------------ 1,076,800 897,900 2,169,700 2,526,600 Other Income, Net 7,900 400 8,900 800 ----------- ----------- ------------ ------------ Earnings From Continuing Operations Before Income Taxes 1,084,700 898,300 2,178,600 2,527,400 Income Taxes (429,600) (344,900) (862,700) (989,400) ----------- ----------- ------------ ------------ Earnings From Continuing Operations 655,100 553,400 1,315,900 1,538,000 Loss From Discontinued Operations, Net of Tax -- (10,500) -- (24,600) ----------- ----------- ------------ ------------ Net Earnings $ 655,100 $ 542,900 $ 1,315,900 $ 1,513,400 =========== =========== ============ ============ EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Primary and Fully Diluted: Earnings From Continuing Operations $ .12 $ .10 $ .25 $ .29 Discontinued Operations -- -- -- ( .01) ----------- ----------- ------------ ------------ Net Earnings $ .12 $ .10 $ .25 $ .28 =========== =========== ============ ============ WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: Primary and fully diluted 5,344,697 5,360,952 5,357,780 5,327,350 =========== =========== ============ ============
4 EDUCATIONAL DEVELOPMENT CORPORATION - ------------------------------------------------ STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
Common Stock (par value $.20 per share) Treasury Stock ------------------------ -------------- Number of Capital in Number Shares Excess of Retained of Shareholders' Issued Amount Par Value Earnings Shares Amount Equity --------- ---------- ---------- ----------- --------------- ----------- ----------- BALANCE, MARCH 1, 1996 5,398,240 $1,079,700 $4,391,300 $1,788,300 206,742 $(527,400) $6,731,900 Exercise of options at $.25/share 20,000 4,000 1,000 --- --- --- 5,000 Exercise of options at $1.50/share 6,000 1,200 7,800 --- --- --- 9,000 Issuance of treasury stock --- --- 3,100 --- (450) 1,100 4,200 Purchase of treasury stock --- --- --- --- 32,575 (238,200) ( 238,200) Sales of treasury stock --- --- --- --- (11,389) 121,000 121,000 Net earnings --- --- --- 1,315,900 --- --- 1,315,900 --------- ---------- ---------- ----------- -------------- ---------- ---------- BALANCE, NOVEMBER 30, 1996 5,424,240 $1,084,900 $4,403,200 $3,104,200 227,478 $(643,500) $7,948,800 ========= ========== ========== =========== ============== ========== ==========
5 EDUCATIONAL DEVELOPMENT CORPORATION - ----------------------------------------------------
STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended November 30 Nine Months Ended November 30 ------------------------------ ----------------------------- 1996 1995 1996 1995 ------------ ------------- ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 655,100 $ 542,900 $ 1,315,900 $ 1,513,400 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 66,500 29,300 180,100 68,500 Deferred income taxes (6,500) (9,300) (15,100) (8,700) Provision for doubtful accounts and sales returns 228,700 299,800 957,400 766,200 Changes in assets and liabilities: Accounts and income taxes receivable (460,700) (425,600) (747,400) (2,567,300) Inventories 1,123,800 (1,428,600) 2,882,700 (2,948,400) Prepaid expenses and other assets 148,200 45,900 223,500 68,200 Accounts payable and accrued expenses (246,700) 212,100 (1,931,300) 286,300 Income taxes payable 171,800 32,600 179,700 51,700 ------------ ------------ ------------ ------------ Total adjustments 1,025,100 (1,243,800) 1,729,600 (4,283,500) ------------ ------------ ------------ ------------ Net cash provided by (used in) operating activities 1,680,200 (700,900) 3,045,500 (2,770,100) ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (103,400) (84,900) (254,400) (453,600) ------------ ------------ ------------ ------------ Net cash used in investing activities (103,400) (84,900) (254,400) (453,600) ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving credit agreement 1,290,000 3,290,000 4,800,000 8,070,000 Payments under revolving credit agreement (2,740,000) (2,400,000) (7,700,000) (5,130,000) Principal payments on capital lease obligations -- (3,300) -- (7,700) Cash received from exercise of stock options -- -- 14,000 65,000 Cash received from sale of treasury stock 19,200 -- 125,200 -- Cash paid to acquire treasury stock (190,900) -- (238,200) -- ------------ ------------ ----------- ----------- Net cash provided by (used in) financing activities (1,621,700) 886,700 (2,999,000) 2,997,300 ------------ ------------ ----------- ----------- Net Increase (Decrease) in Cash and Cash Equivalents (44,900) 100,900 (207,900) (226,400) Cash and Cash Equivalents, Beginning of Period 53,000 1,600 216,000 328,900 ------------ ------------ ------------ ------------ Cash and Cash Equivalents, End of Period $ 8,100 $ 102,500 $ 8,100 $ 102,500 ============ ============ ============ ============ Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 89,700 $ 89,400 $ 320,300 $ 177,900 ============ ============ ============ ============ Cash paid for income taxes $ 264,300 $ 315,000 $ 345,800 $ 931,000 ============ ============ ============ ============
6 EDUCATIONAL DEVELOPMENT CORPORATION - ----------------------------------------------- NOTES TO FINANCIAL STATEMENTS Note 1 - Deferred income taxes reflect the net tax effects of temporary - ------ differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company's net deferred tax asset as of November 30, 1996 and February 29, 1996 are as follows:
November 30, 1996 February 29, 1996 ----------------- ----------------- Deferred tax assets: Allowance for doubtful accounts $ 66,000 50,300 Inventories 117,400 118,000 -------- -------- Net deferred tax asset $183,400 $168,300 ======== ========
Management has determined that no valuation allowance is necessary to reduce the value of deferred tax assets as it is more likely than not that such assets are realizable. The components of income tax expense are as follows:
Three Months Ended November 30 Nine Months Ended November 30 1996 1995 1996 1995 ------------ ------------- ------------- ------------- Income tax expense: Federal Current $ 366,300 $ 299,300 $ 725,800 $ 842,800 Deferred (6,500) (9,300) (15,100) (8,700) State 69,800 54,900 152,000 155,300 --------- --------- --------- -------- $ 429,600 $ 344,900 $ 862,700 $ 989,400 ========= ========= ========= =========
7 EDUCATIONAL DEVELOPMENT CORPORATION - -------------------------------------------------- Note 2 - Effective September 25, 1995 the Company signed a Restated Credit and - ------ Security Agreement with State Bank which provided a $6,000,000 line of credit and replaced the existing loan agreement. The line of credit matured June 30, 1996. The note bore interest at prime plus 1/2%, payable monthly and was collateralized by substantially all of the assets of the Company. The Company utilized this line of credit primarily to fund routine operations. Payments were made from current cash flows. Effective June 10, 1996 the Company signed a Restated Credit and Security Agreement with State Bank which provides a $9,000,000 line of credit. The line of credit is evidenced by a promissory note in the amount of $9,000,000 payable June 30, 1997. The note bears interest at the Wall Street Journal prime floating rate payable monthly (8.25% at November 30, 1996). The note is collateralized by substantially all of the assets of the Company. The Company utilizes this line of credit primarily to fund routine operations. At November 30, 1996 the Company had available $6,080,000 under this credit agreement. Note 3 - Inventories consist of the following: - ------ November 30, 1996 February 29, 1996 ----------------- -----------------
Book Inventory $9,194,500 $12,077,200 Reserve for Obsolescence (301,100) (301,100) ---------- ----------- $8,893 400 $11,776,100 ========== ===========
Note 4 - The results of operations for the three months and nine months ended - ------ November 30, 1996 and 1995 are not necessarily indicative of the results to be expected at year end due to seasonality of the product sales. Note 5 - The information shown with respect to the three months and nine - ------ months ended November 30, 1996 and 1995, which is unaudited, includes all adjustments which in the opinion of Management are considered to be necessary for a fair presentation of earnings for such periods. There were no adjustments, other than normal recurring accruals, entering into the determination of the results shown except as noted in this report. Reclassifications were made to 1995 balances to conform with 1996 presentation. Note 6 - These statements should be read in conjunction with the Notes to - ------ Financial Statements contained in the Company's Annual Report to Shareholders for the Fiscal Year ended February 29, 1996, which are incorporated herein by reference, and with Management's Discussion and Analysis or Plan of Operations appearing on page 9 of this report. 8 EDUCATIONAL DEVELOPMENT CORPORATION - --------------------------------------------------- ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS FOR THE - --------------------------------------------------------------------------- NINE MONTHS ENDED NOVEMBER 30, 1996 - ----------------------------------- Certain statements contained in this Management Discussion and Analysis are not based on historical facts, but are forward-looking statements that are based upon numerous assumptions about future conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in such statements. The Company's ability to achieve such results is subject to certain risks and uncertainties. Such risks and uncertainties include but are not limited to, product prices, continued availability of capital and financing, and other factors affecting the Company's business that may be beyond its control. FINANCIAL CONDITION - ------------------- The financial condition of the Company remains strong. Working capital increased to $7,044,600 at November 30, 1996, an increase of 19% over year-end February 29, 1996. Inventory levels decreased $2.9 million as the Company continues to evaluate and streamline its purchasing procedures in order to supply adequate inventory to meet projected sales goals. Payables decreased 62% at November 30,1996 over year-end February 29, 1996, the result of payments for inventory received in prior periods plus smaller purchases of inventory in the current period. The Company believes its credit line of $9,000,000 will provide adequate availability of funds to meet future needs. During the second quarter the Company transferred the responsibility of sales to school and public libraries from the Library Division to the Home Business Division. Management believes that the strong consultant base, presently 8,900 consultants, in the Home Business Division will greatly enhance the sales to this market segment of the Company's business. The Company will no longer represent other publishers of library books but is confident that the larger base of potential sales representatives should provide increased sales in the library market. The initial response from the Home Business consultants to this change has been excellent. It is too early to determine the impact of this change but Management is very optimistic that this new program will produce excellent results for the Company. Management continues to focus on increasing market share in the Publishing Division and to increase revenue from the Home Business Division through increasing its sales consultants network. Management's analysis indicates that the increased exposure of its products through the Home Business Division contributes to increased marketability in the Publishing Division. This exposure helps our inside telemarketing force as well as our independent sales force in their sales efforts. Because the Company has a relatively small share of the children's book market, Management believes there is potential to increase its market share in the Publishing Division in the future. Our Home Business consultants continue to tell Management how well our products are received by the public, and accordingly Management expects this Division to continue to grow. Effective October 1, 1996 a revised Marketing Plan was put into effect in the Home Business Division. The plan included a revised commission structure, additional consultant levels, a new supervisor program and new and improved specials and other recruiting tools. These changes resulted in improved margins in October and November. Management is optimistic that this revised Marketing Plan will result in improved revenues for the Home Business Division and also will help the consultants in their sales efforts. 9 EDUCATIONAL DEVELOPMENT CORPORATION - ------------------------------------------------- RESULTS OF OPERATIONS - --------------------- Revenues - Net sales from the Publishing Division were $6,202,100 for the nine - -------- months ended November 30, 1996 compared with $6,534,400 for the same nine month period last year, a decrease of 5%. Net sales for the three months ended November 30, 1996 were $1,978,300 compared to $2,015,500 for the same quarter last year, a decrease of 2%. Sales nationwide in the publishing industry have declined. Management believes the Company has a superior product and can maintain its market share in this highly competitive market. The Company has an aggressive in-house telephone sales force which maintains contact with over 10,000 customers. The Company also attends several major national trade shows to further enhance product visibility. For these reasons, Management is optimistic that the Publishing Division can maintain its market share. Net sales from the Home Business Division increased 49% to $10,349,500 for the nine months ended November 30, 1996 compared with $6,965,500 for the same period last year. Net sales for the three months ended November 30, 1996 were $4,266,200, an increase of 22% over the $3,491,900 for the same period last year. This increase can be attributed to an increase in the number of active consultants (approximately 4,400 added since November 30, 1995) which is a result of quality incentive programs which motivate and assist consultants in sales and recruiting. Management believes this Division has excellent potential for continued growth through an increased consultant network and new and improved incentive programs. Net sales from the Library Services Division were $442,400 for the nine months ended November 30, 1996, compared with $1,101,700 for the same period last year. Sales for the three months ended November 30, 1996 were $34,700 versus $397,900 for the same quarter last year. As discussed earlier, during the second quarter the Company transferred responsibility of sales to schools and libraries from the Library Services Division to the Home Business Division. The sales reported by the Library Services Division during the third quarter are residual sales generated during the closing down of the Division. Operating Expenses - The Company's cost of sales increased to $6,672,700 for - ------------------ the nine months ended November 30, 1996, an increase of 10% over cost of sales of $6,064,800 for the nine months ended November 30, 1995. Cost of sales as a percentage of gross sales was 27.1% for the nine months ended November 30, 1996 versus 26.8% for the same period last year. Cost of sales for the three months ended November 30, 1996 dropped slightly to $2,355,800 versus $2,358,900 for the same three month period last year. As a percentage of gross sales, cost of sales was 26.5% for the three months ended November 30, 1996 compared with 27.1% for the same three month period last year. Cost of sales as a percentage of gross sales will fluctuate depending on the product mix sold. Operating and selling expenses were $3,044,700 for the nine months ended November 30, 1996 compared with $2,273,500 for the nine months ended November 30, 1995. Operating and selling expenses as a percentage of gross sales was 12.4% for the nine months ended November 30, 1996 and 10.0% for the nine months ended November 30, 1995. For the three months ended November 30, 1996 operating and selling expenses were $969,100 compared to $898,000 for the same three months last year. As a percentage of gross sales, operating and selling expenses for the three months ended November 30, 1996 was 10.9% and 10.3% for the same three month period last year. Contributing to the increases in selling and operating expenses for both the quarter and the nine month period ended November 30, 1996 were increased sales incentives in the Home Business Division and increased credit card fees in the Home Business Division, both the direct result of increased sales. Sales commissions increased 33% to $3,852,800 for the nine months ended November 30, 1996 compared with $2,888,800 for the nine months ended November 30, 1995. Sales commissions as a percentage of gross sales were 15.7% verses 12.7% for the same periods respectively. Sales commissions for the three months ended November 30, 1996 were $1,449,200, compared with $1,425,400, an increase of 1.7%. Sales commissions as a percentage of gross sales for the quarters ended November 30, 1996 and 1995 were 16.3% and 16.4% respectively. Sales commission rates vary depending upon the product being sold and the Division making the sales, as the Publishing Division and the Home Business Division each have a separate commission structure. The increased sales commissions is due to increased sales in the Home Business Division, which has a higher commission structure. In October, the Home Business Division put into place a revised and improved commission structure, resulting in a decrease in commissions when expressed as a percentage of gross sales. 10 EDUCATIONAL DEVELOPMENT CORPORATION - ------------------------------------------------ General and administrative costs were $947,900 for the nine months ended November 30, 1996 an increase of 47% over the $643,500 for the nine month period ended November 30, 1995. When expressed as a percentage of gross sales, general and administrative costs were 3.9% for the nine months ended November 30, 1996 and 2.8% for the same nine month period last year. For the three months ended November 30, 1996 and 1995, general and administrative costs were $348,000 and $238,300 respectively, an increase of 46%. General and administrative expenses as a percentage of gross sales were 3.9% and 2.7% respectfully for the quarters ended November 30, 1996 and 1995. Data processing costs increased for both the current quarter and the nine months ended November 30, 1996 due to depreciation of new computer equipment and the addition of staff. Interest expense was $306,200 for the nine months ended November 30, 1996 versus $204,400 for the nine months ended November 30, 1995, an increase of 49.8%. Interest expense for quarter ended November 30, 1996 was down 7.5% to $80,300 when compared with $86,800 for the same quarter last year. The Company incurred higher borrowing levels during the first six months of the current year while during the third quarter the Company was able to reduce its debt level when compared with the same periods last year. The increased borrowings during the first six months occurred as the Company maintained higher inventory levels. Increased sales in the Home Business Division, whose sales are primarily for cash, along with a reduction in the inventory levels allowed the Company to reduce its borrowings and interest expense during the third quarter ended November 30, 1996. Discontinued Operations - Effective February 29, 1996, the Company - ----------------------- discontinued its School Division. The Company anticipates that the liquidation of the division will be completed during fiscal 1997 through the disposition of remaining assets of the division. The remaining assets of the division were written off at February 29, 1996. Accordingly, the operating results of the School Division are segregated and reported as discontinued operations in the accompanying statements of earnings. The condensed statements of operations relating to the discontinued School Division operations for the three months and nine months ended November 30, 1995 are presented below.
Three Months Ended November 30, 1995 Nine Months Ended November 30, 1995 ------------------------------------- ------------------------------------ Gross sales $ 6,200 $ 39,300 Less discount and allowances (300) (5,100) --------- --------- Net sales 5,900 34,200 Cost of sales 1,900 8,200 --------- --------- Gross margin 4,000 26,000 Operating expenses 21,000 65,900 --------- --------- Loss before income taxes (17,000) (39,900) Income tax benefit 6,500 15,300 --------- --------- Loss from operations $ (10,500) $ (24,600) ========= =========
11 PART II OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K A. Exhibits 1. None B. Reports on Form 8-K 1. There were no reports filed on Form 8-K during the three months covered by this report. 12 EDUCATIONAL DEVELOPMENT CORPORATION - -------------------------------------------------- SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EDUCATIONAL DEVELOPMENT CORPORATION (Registrant) By /s/ Randall W. White -------------------------------- Randall W. White President Date: January 14 1997 ----------------- 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM _____________________ AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS 12-MOS FEB-29-1996 FEB-29-1996 MAR-01-1996 MAR-01-1995 NOV-30-1996 FEB-29-1996 8,100 215,963 0 0 3,003,800 2,819,384 270,100 228,000 8,893,400 11,776,138 11,919,100 15,437,504 1,263,500 1,156,414 373,800 341,052 12,823,300 16,257,968 4,874,500 9,526,080 0 0 0 0 0 0 1,084,900 1,079,648 6,863,900 5,652,240 12,823,300 16,257,968 16,994,000 19,253,467 16,994,000 19,253,467 6,672,700 8,083,221 13,561,300 15,116,797 902,900 860,786 45,000 60,000 306,200 297,849 2,178,600 2,918,035 862,700 1,112,700 1,315,900 1,805,335 0 (326,621) 0 0 0 0 1,315,900 1,478,714 .25 .28 .25 .28
-----END PRIVACY-ENHANCED MESSAGE-----