United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 15, 2014 (August 31, 2014)
Educational Development Corporation
(Exact name of registrant as specified in its charter)
Delaware |
0-4957 |
73-0750007 |
||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
10302 East 55th Place, Tulsa, Oklahoma |
74146-6515 |
|||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (918) 622-4522
N/A
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On October 15, 2014, Educational Development Corporation, announced via press release, second quarter fiscal 2015 results. A copy of the press release is attached hereto.
Item 9.01. Financial Statements and Exhibits.
(d) EXHIBITS
99.1 Press release dated as of October 15, 2014
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Educational Development Corporation
(Registrant) |
||
| October 15, 2014
(Date) |
/s/ RANDALL W. WHITE
Randall W. White President and Chief Executive Officer |
EXHIBIT INDEX
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EXHIBIT |
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|
*99.1 |
Press release dated as of October 15, 2014 |
*Filed herewith.
EXHIBIT 99.1
TULSA, Okla., Oct. 15, 2014 (GLOBE NEWSWIRE) -- Educational Development Corporation ("EDC") (Nasdaq:EDUC) (http://www.edcpub.com) today reported results for the fiscal second quarter and the six months ended August 31, 2014.
For the six months ended August 31, 2014, EDC reports net revenue of $13,986,500, a 19% increase of $2,280,900 when compared to $11,705,600 for the same period in the previous year and net earnings of $235,800 compared to $123,000. Earnings per share were $0.06 compared to $0.03 the previous year on a fully diluted basis.
The home business division, Usborne Books & More, has now recorded 16 consecutive months of revenue growth after nine years of decline. Net revenues for the first six month of fiscal year 2015 were up 30% over the same period in fiscal year 2014, and for this quarter sales are up 41% and the trend continued in September as sales were up 58% over September last year. Reflective of this net revenue gain, the number of sales associates joining our organization March-August has almost doubled at 2,300 as compared to 1,200 over the same period last year. Our number of active consultants is up 25% when comparing this quarter end to the prior year quarter end.
The publishing division, EDC Publishing, also had a strong start to the fiscal year, with net revenues up 8% at $6,024,000 for the six months ended August 31, compared to $5,564,400 for the prior fiscal year-to-date period. Industry wide statistics for bookstores reflect an 8% decline during the same period.
The net earnings for the quarter were negatively impacted by two separate non reoccurring charges, including additional marketing and promotion expense and recording a prior year's sales tax audit assessment, which resulted in a $164,000 pretax impact.
The Company has secured more favorable shipping rates which were effective October 1, 2014 which will significantly affect future earnings.
| EDUCATIONAL DEVELOPMENT CORPORATION | ||||
| CONDENSED STATEMENTS OF EARNINGS | ||||
| Three Months Ended August 31, | Six Months Ended August 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| NET REVENUES | $ 6,808,200 | $ 5,715,100 | $ 13,986,500 | $ 11,705,600 |
| EARNINGS BEFORE INCOME TAXES | 8,300 | 86,200 | 395,900 | 191,000 |
| INCOME TAXES | 12,200 | 29,800 | 160,100 | 68,000 |
| NET EARNINGS | $ (3,900) | $ 56,400 | $ 235,800 | $ 123,000 |
| BASIC AND DILUTED EARNINGS PER SHARE: | ||||
| Basic | $ (0.01) | $ 0.00 | $ 0.06 | $ 0.03 |
| Diluted | $ (0.01) | $ 0.00 | $ 0.06 | $ 0.03 |
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ||||
| Basic | 3,998,170 | 3,968,930 | 3,992,365 | 3,968,223 |
| Diluted | 3,998,170 | 3,968,930 | 3,992,365 | 3,968,223 |
About Educational Development Corporation
Educational Development Corporation sells children's books, including Usborne books and the Kane Miller line of international children's titles through a multi-level sales organization of independent consultants, through 5,000 retail stores and over the Internet. More than 1,600 different titles are available for children of all ages, with periodic new additions.
CONTACT: Educational Development Corporation
Randall White, (918) 622-4522