UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 21, 2024 (
(Exact name of registrant as specified in its charter)
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| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S Employer Identification No.) |
(Address of principal executive offices and Zip Code)
(Registrant’s telephone number, including area code)
(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):
Securities registered pursuant to Section 12(b) of the Act:
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| (Title of class) | (Trading symbol) | (Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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The information disclosed in these Items 2.02, 7.01 and 9.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 21, 2024, Educational Development Corporation announced, via press release, fiscal fourth quarter and fiscal 2024 financial results. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
ITEM 7.01 REGULATION FD DISCLOSURE
On May 21, 2024, Educational Development Corporation announced, via press release, fiscal 2024 financial results. Educational Development Corporation’s fiscal 2024 earnings call will be held on Tuesday, May 21, 2024, at 3:30 PM CT (4:30 PM ET). A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) EXHIBITS
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Exhibit Number |
Description |
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99.1 |
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104 |
Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURE
Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Educational Development Corporation |
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By: |
/s/ Craig M. White |
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Craig M. White |
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President and Chief Executive Officer |
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Date: |
May 21, 2024 |
EXHIBIT 99.1
EDUCATIONAL DEVELOPMENT CORPORATION
ANNOUNCES FISCAL FOURTH QUARTER AND FISCAL 2024 RESULTS
TULSA, OK, May 21, 2024—Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal fourth quarter and fiscal year ended February 29, 2024.
Fiscal Year Summary Compared to the Prior Year
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Net revenues of $51.0 million compared to $87.8 million. |
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Average active PaperPie Brand Partners totaled 18,300 compared to 28,000. |
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Earnings before income taxes improved by $4.1 million to $0.7 million. |
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Net earnings totaled $0.5 million, an increase of $3.0 million. |
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Earnings per share totaled $0.07, compared to loss of $(0.31), on a fully diluted basis. |
Fourth Quarter Summary Compared to the Prior Year Fourth Quarter
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Net revenues were $9.0 million compared to $15.0 million. |
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Average active PaperPie Brand Partners totaled 15,500 compared to 26,100. |
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Loss before income taxes were $(2.2) million, a$0.4 million improvement. |
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Net Loss totaled $(1.6) million an improvement of $0.3 million. |
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Loss per share totaled $(0.19) compared to loss per share of $(0.24), on a fully diluted basis. |
Per Craig White, Chief Executive Officer, “In January, we launched our new e-commerce platform, significantly improving the overall user experience for both our Brand Partners and Customers. Our team continues to work on additional enhancements to this site, which should result in consultant growth and overall improvements to revenue-related activity. We continued to face the headwinds of high inflation and its impact on our target customers, families with small children. These customers have seen record increases in food costs, coupled with high fuel costs, which put constraints on other discretionary purchases. We have a long history of weathering difficult periods and we continue to implement differentiated tactics to ensure we generate positive cash flows, while minimizing our operating losses during these times. We will continue to look for strategic ways to further reduce spending and limit our capital expenses including the purchases of future inventory.”
“During fiscal 2024, we reduced our inventory levels from $63.8 million to $55.6 million, generating $8.2 million of cash flows. These cash flows covered our operating losses and further reduced our bank debt. During the year, the excess from inventory reductions along with the receipt of a $3.8 million Employee Retention Credit and $4.9 million in proceeds from the sale of our old headquarters building, reduced our bank borrowings from $45.7 million to $33.9 million. Continuing to reduce our bank borrowings, and related interest expense, remains a key focus of our ultimate priority of returning to profitability.”
“Additionally, in November we announced the planned sale/leaseback of our Headquarters facility which has recently appraised for approximately $40.0 million, and excess land of approximately 15 acres valued at $1.9 million. The proceeds from the sale/leaseback transaction, with or without the excess land, is expected to fully pay off our borrowings with our bank and we expect to operate with limited borrowings on a go forward basis. While we have not announced a sale/leaseback agreement, we continue to make meaningful progress with interested parties and look forward to providing an update soon, concluded Mr. White.”
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EDUCATIONAL DEVELOPMENT CORPORATION |
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CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) |
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Three Months Ended February 29 (28), |
Twelve Months Ended February 29 (28), |
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2024 |
2023 |
2024 |
2023 |
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NET REVENUES |
$ | 8,968,400 | $ | 14,980,400 | $ | 51,030,300 | $ | 87,829,000 | ||||||||
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EARNINGS (LOSS) BEFORE INCOME TAXES |
(2,213,700 | ) | (2,607,700 | ) | 734,500 | (3,426,900 | ) | |||||||||
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INCOME TAXES |
(599,100 | ) | (688,000 | ) | 188,100 | (922,000 | ) | |||||||||
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NET EARNINGS (LOSS) |
$ | (1,614,600 | ) | $ | (1,919,700 | ) | $ | 546,400 | $ | (2,504,900 | ) | |||||
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EARNINGS (LOSS) PER SHARE |
$ | (0.19 | ) | $ | (0.24 | ) | $ | 0.07 | $ | (0.31 | ) | |||||
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DIVIDENDS PER SHARE |
$ | - | $ | - | $ | - | $ | - | ||||||||
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WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING |
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Basic |
8,266,032 | 8,404,233 | 8,269,971 | 8,157,704 | ||||||||||||
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Diluted |
8,308,448 | 8,404,233 | 8,285,230 | 8,157,704 | ||||||||||||
Fiscal 2024 Earnings Call
Date: Tuesday, May 21, 2024
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 57633
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, 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.
Document And Entity Information |
May 21, 2024 |
|---|---|
| Document Information Line Items | |
| Entity Registrant Name | EDUCATIONAL DEVELOPMENT CORPORATION |
| Trading Symbol | EDUC |
| Document Type | 8-K |
| Amendment Flag | false |
| Entity Central Index Key | 0000031667 |
| Document Period End Date | May 21, 2024 |
| Entity Emerging Growth Company | false |
| Entity Incorporation, State or Country Code | DE |
| Entity File Number | 000-04957 |
| Entity Tax Identification Number | 73-0750007 |
| Entity Address, Address Line One | 5402 S 122nd E Avenue |
| Entity Address, City or Town | Tulsa |
| Entity Address, State or Province | OK |
| Entity Address, Postal Zip Code | 74146 |
| City Area Code | (918) |
| Local Phone Number | 622-4522 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, $.20 par value |
| Security Exchange Name | NASDAQ |
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