Also Announces Third Quarter Fiscal Year Earnings Connect with
Tulsa, Oklahoma–(Newsfile Corp. – December 21, 2022) – Academic Growth Corporation (NASDAQ: EDUC) (“EDC”, or the “Enterprise”) (http://www.edcpub.com) now announces the rebranding of its Household Business enterprise Division to PAPERPIE and the day of their third quarter fiscal 2023 earnings call.
The Business accomplished rebranding its House Organization Division and announces its new title, PaperPie. Per Craig White, President and Main Government Officer, “Our Home Bash Division generates about 85{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} of our Firm’s product sales. We have noticed this Division grow from 6,000 consultants only 10 decades ago to as several as 60,000 consultants at its peak throughout 2021. We are launching our new branding, PaperPie, which is a better reflection of our total item presenting, which has developed past books. Replacing the title Usborne Publications & More (UBAM) with PaperPie, a new title that a lot more accurately captures all of the products that we offer as a result of this Division together with Usborne Publishing, Ltd. Kane Miller Guides SmartLab Toys and Studying Wrap-Ups. Our Gross sales and Promoting teams have place wonderful initiatives into producing a new identify for this division and we are happy to start PaperPie at the start off of the 2023 calendar 12 months.”
For each Heather Cobb, Chief Sales and Marketing Officer, “We commenced the Home Social gathering Division rebranding method in May of this year with the aim to entire the Division’s rebrand by December 2022. We have engaged our discipline management, workers customers and outside the house companions who contributed innumerable quantities of time, exertion and really like into creating our new title and manufacturer. PaperPie is actually ‘filled’ with the lifestyle and values of our Property Enterprise Division, specially centered on kid’s literacy and learning. Our new model, PaperPie, superior defines who we are and what we symbolize to our shoppers and their families. We are so proud to announce this new identify and start our PaperPie journey in January 2023.”
EDC is scheduled to go to the NASDAQ Marketsite in Periods Sq. on December 28, 2022, to kick off the rebranding start of PaperPie. Craig White is established to ring the NASDAQ Closing Bell alongside with Heather Cobb and Dan O’Keefe, the Firm’s Chief Economical Officer. The new PaperPie identify and emblem will be presented to individuals at this function and broadcast nationwide on various tv and social media channels.
EDC will host its 3rd Quarter Fiscal 2023 Earnings Get in touch with, like a are living Q&A webcast, on Thursday January 5, 2023, at 3:30 PM CT (4:40 PM ET). Craig White, Main Govt Officer and President Heather Cobb, Main Product sales and Advertising Officer Dan O’Keefe, Main Fiscal Officer and Secretary and Randall White, Executive Chairman, will present the Company’s third quarter results and be obtainable for queries next the presentation. Cell phone traces for participants will be out there at (888) 396-8049. The convention ID is: 47737918. Audio replays will be available following the celebration at www.edcpub.com/traders.
About Academic Development Company (EDC)
EDC commenced as a publishing enterprise specializing in publications for little ones. EDC is the owner and special publisher of Kane Miller Books (“Kane Miller”) Discovering Wrap-Ups, maker of instructional manipulatives and SmartLab Toys, maker of STEAM-based toys and online games. EDC is also the special United States Multi-level marketing distributor of Usborne Publishing Minimal (“Usborne”) children’s publications. EDC-owned merchandise are marketed by means of 4,000 retail outlets and EDC and Usborne items are available by unbiased brand name associates who maintain guide showings as a result of social media, reserve fairs with universities and community libraries, in particular person households, as well as other in-man or woman events and world wide web gross sales.
Get hold of: Educational Progress Company Craig White, (918) 622-4522
Investor Relations: Three Aspect Advisors, LLC Steven Hooser or Jean Marie Youthful, (214) 872-2710
Educational Growth Corporation (NASDAQ:EDUC) Q3 2023 Earnings Connect with Transcript January 5, 2023
Operator: Good afternoon, everybody. And thank you for taking part in present-day meeting connect with to explore Instructional Growth Corporation’s Fiscal and Working Results for its Fiscal Third Quarter and Fiscal 2023 Yr-to-date Benefits. As a reminder, this meeting is being recorded. I would now like to convert the conference around to your host, Steven Hooser, Investor Relations.
Steven Hooser: Thank you, operator, and great afternoon, all people. Thank you for becoming a member of us right now for Instructional Development Corporation’s 3rd quarter and fiscal 2023 yr-to-date earnings phone. On the connect with with me right now are Craig White, President and Chief Govt Officer Heather Cobb, Chief Profits and Promoting Officer and Dan O’Keefe, Chief Economical Officer. Immediately after the market closed this afternoon, the company issued a push release saying its final results for the 3rd quarter and fiscal 2023 calendar year-to-date. The launch is readily available on the firm’s website at www.edcpub.com. Prior to turning to the well prepared remarks, I would like to remind you that some of the statements produced right now will be ahead-seeking and are secured underneath the Private Securities Litigation Reform Act of 1995.
Precise effects may vary materially from people expressed or implied because of to a variety of variables. We refer you to Academic Growth Corporation’s new filings with the SEC for a much more in-depth discussion of the company’s fiscal ailment. With that, I would now like to transform the phone in excess of to Craig White, the firm’s President and Chief Government Officer. Craig?
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Craig White: Thank you, Steven, and welcome anyone to the contact. I will begin modern contact with some normal responses in regard to the quarter then I will move the phone off to Dan and Heather to operate through the financials and offer an update on our product sales and advertising and marketing. Lastly, I will wrap up the simply call with some responses and approach and 2023 outlook. We are pleased with our revenue for the 3rd quarter, especially when in contrast to the former quarter. We proceed to encounter macroeconomic pressures from history inflation resulting in significant meals and fuel costs that have hit the pockets of our concentrate on prospects, which are households with youthful youngsters. To beat these continued pressures like lots of merchants, we provide further discounts to guidance our buyers and extra incentives to energize our product sales drive.
These market choices authorized us to create over $30 million in web profits but did impact our means to travel the base-line. Having stated that, I am happy by our capability to remain worthwhile for the quarter. With that, I will convert the get in touch with about to Dan O’Keefe to deliver a short overview of the financials. Dan?
Dan O’Keefe: Thank you, Craig. Turning to the 3rd quarter, net revenues ended up 30.3 million, a reduce of 14.8 million or 32.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} in comparison to 45.1 million in the 3rd quarter previous year, or an increase of 56.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} as as opposed to 19.4 million for the duration of the former quarter. The once-a-year decrease is owing to the beneficial gain we observed a calendar year back driven by the pandemic. The quarter-around-quarter raises mostly thanks to the seasonality and also integrated some promotions and incentives. Normal active UBAM product sales consultants totaled 27,100 in contrast to 41,500 in the same period of time a year back, and 26,800 in the prior quarter of this year. Throughout the third quarter, we observed stabilization in the regular energetic variety of consultants. We’ve witnessed our lively advisor stages start out to rebound when our leader level consultants continue being at historically high numbers.
Earnings prior to earnings taxes for the 3rd quarter was . million a minimize of 3.6 million as opposed to 3.6 million recorded in the third quarter of final 12 months. Net earnings for the quarter also totaled zero in contrast to 2.6 million a reduce of 2.6 million. Earnings per share totaled zero in comparison to $.31 on a entirely diluted basis. Now turning to our yr-to-date highlights. We recorded web revenues of 72.8 million a lessen of 46.1 million or 38.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} compared to 118.9 million through the same period of time of 2022. The decrease was primarily due to reduce active specialist depend coupled with growing inflation, especially through the very first and 2nd quarters this year. Normal active UBAM product sales consultants totaled 28,700 compared to 47,300 for the first three quarters of 2022.
Last calendar year, we observed inflated quantities continuing from the pandemic when university closures ongoing, and several spouse and children associates worked from household. This yr as schools remained open and families returned to work, we’ve viewed our profits advisor levels begin to normalize. Calendar year-to-date reduction for revenue taxes was $800,000, a decrease of 11.7 million as opposed to 10.9 million for the duration of the very same time previous year. Web yr-to-day reduction totaled 600,000, in contrast to 8.6 million for the to start with half of last yr — for the 1st three quarters of previous 12 months, a lower of 8.6 million. 12 months-to-day decline totaled $.07 in comparison to earnings per share of $.94 from the initial 3 quarters of fiscal 2022 down 107.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a entirely diluted foundation. To update all people on our performing cash stages, inventory ranges decreased from 67.6 million at the conclude of the 2nd quarter to 64.3 million as of November 30, 2022.
Hard cash generated from our lowered inventory was primarily made use of to pay back down our operating funds line, which finished the quarter at $9 million. We proceed to count on even more stock reductions and operating cash line shell out downs throughout our fiscal fourth quarter and all through fiscal 2024 as we normalize our inventory degrees. And finally, our longstanding dividend software continues to be paused as component of the strategic determination to maintain hard cash, which improves dollars flows by approximately 1 million for each quarter. This concludes the monetary update. I will now turn the call more than to Heather Cobb to speak about gross sales and advertising chances in even more element. Heather?
Heather Cobb: Thank you, Dan. As Craig talked about previously, we continue on to consider sector conditions and make adjustments we truly feel are desired to motivate our income force and interact our clients. We ran many purchaser price cut promotions and product sales incentives throughout the quarter to make sure potent results during our peak seasonal selling period. These marketplace conclusions not only aided us normalize our performing cash, but also hold our commission-based product sales drive engaged. All through the next and third quarters, our profits and advertising groups internally expended substantial attempts executing a rebranding directive for our direct revenue division. We declared the rebranding efforts in June engaged a Tier-1 rebranding agency to support us and concluded and introduced the new name of our direct sales division PaperPie in December.
This new title enables us to improved showcase our complete product or service presenting. Kane Miller Publications, Usborne Guides, SmartLab Toys and Studying Wrap-Ups. PaperPie also lets us to establish a recognizable identify distinctive to our enterprise. Our rebranding procedure was concluded before this 7 days, when we transitioned our shopper dealing with ecommerce, and manufacturer husband or wife facing again office to the new paperpie.com. We are very fired up about our new name PaperPie, as it does enable us to establish a recognizable model and encompassing all of our wonderful products and solutions and people today. You will find a great deal of which means behind the identify. But all round, we wished our brand to stand for our mission of accumulating for good around literacy and mastering. This is a recently fashioned compound word which we will be defining ourselves.
At PaperPie, paper is our medium of interaction. Irrespective of whether it truly is a board guide, game items, a sequence of chapter publications or innovative exercise. As the entire world carries on to fight for our children’s interest by means of screens and devices, it has never ever felt much more significant for tangible literacy and understanding resources that will feed the creativeness, improve the emotions and nourish the brain of our kids. And when you assume of pie, you think of anything to be gathered all-around one thing to be shared an practical experience really worth savoring. That is just what we feel our solutions are made for, literacy and finding out as a lifestyle. PaperPie is for memory creating, inventive discovering and limitless choices, all inside of the context of togetherness. Alongside with this strategic rebranding, starting off this week, we rolled out our SmartLab Toys product or service line.
These award-profitable theme-primarily based goods, like squishy human overall body, laboratory toys, science lab toys, and our little series present youngsters ages eight and up fingers-on studying alternatives. We be expecting our initial start of 10 products to have an speedy income effect and we system to follow that up with further item releases mid-year this spring and yet another significant release this summertime. This concludes our profits and marketing update. I will change the get in touch with back about to Craig for closing remarks. Craig?
Tulsa, Oklahoma–(Newsfile Corp. – January 5, 2023) – 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 third quarter and year-to-date ended November 30, 2022.
Third Quarter Highlights Compared to the Prior Year Third Quarter
Net revenues were $30.3 million, a decrease of $14.8 million, or 32.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $45.1 million.
Average active direct-sales consultants totaled 27,100 compared to 41,500.
Earnings before income taxes were $0.0 million, a decrease of $3.6 million, compared to $3.6 million.
Net earnings totaled $0.0 million, compared to $2.6 million, a decrease of $2.6 million.
Earnings per share totaled $0.00, compared to $0.31, on a fully diluted basis.
Year-to-Date Highlights Compared to the Prior Year
Net revenues of $72.8 million, a decrease of $46.1 million, or 38.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $118.9 million.
Average active UBAM sales consultants totaled 28,700 compared to 47,300.
Earnings (loss) before income taxes were $(0.8) million, a decrease of $11.7 million, or 107.3{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $10.9 million.
Net earnings (loss) totaled $(0.6) million, compared to $8.0 million, a decrease of $8.6 million, or 107.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.
Earnings (loss) per share totaled $(0.07), compared to $0.94, down 107.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a fully diluted basis.
“While sales continued to be impacted by high inflation and soaring food and fuel costs, our sales volumes grew over 50{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a sequential basis as our third quarter is seasonally our strongest quarter. During the quarter, we offered additional discounts and increased sales incentives to further energize our salesforce and recruiting efforts. While these market decisions did impact our bottom line during the quarter, they were designed to accelerate sales, converting excess inventory into cash faster to pay down our creditors and reduce our working capital line of credit. During the third quarter we also made strategic changes to improve future profitability, including increasing the amount we charge for freight on outbound shipments, along with several other cost reductions,” stated Craig White, President and CEO of Educational Development Corporation. “Our business has a long history of profitability and our core pricing, product costs and sales compensation fundamentals remain unchanged. While we are challenged by recent macro-economic pressures, we continue to face these pressures ‘head on’ and are working diligently to restore profitability to historical levels.”
“We remain highly enthusiastic as several recently announced developments within our direct sales division will create additional momentum, not just in our fourth quarter, but as we move into fiscal 2024 and beyond. During the third quarter we saw stabilization in our average number of active consultants. We have seen our active consultant levels begin to rebound while our leader level consultants remain at historically high numbers. Like most direct sales companies, our leaders drive the majority of our sales and new recruits. Maintaining our high levels of leadership during these difficult inflationary times gives us confidence for the future of our salesforce. Additionally, we have historically experienced increased active consultants during inflationary periods as families look for non-traditional income to offset the rising costs within their households.”
“Another milestone we recently accomplished was the strategic rebranding of our direct sales division. Rebranding our direct sales division was a significant project and accomplishment from our sales and marketing teams. I was proud to share the stage with Heather Cobb, our Chief Sales and Marketing Officer, as we announced the new divisional name, PaperPie, at the December 28th Nasdaq closing bell. On January 3, 2023, we completed the rebranding of our e-commerce and Back-Office online platforms to PaperPie. This new name allows us to better showcase our full product offering and allows us to build a recognizable name unique to our Company. Our entire organization and our sales consultants are rejuvenated by this rebranding and we look forward to the associated sales and recruiting.”
“Along with our rebrand, we are rolling out our new product line SmartLab Toys. We are excited to introduce this STEAM-based new product line, to not only our PaperPie customers but also our retail accounts. Many of our retail customers have historically carried SmartLab Toys and are excited about our new ownership and planned product rollout in January 2023.”
“We have made a lot of positive changes over the past year and we are excited to ‘Turn the Page’ into 2023,” concluded Mr. White.
Pre-COVID, COVID Impacted and Current Year Comparison
Due to the significant positive impact of the COVID-19 pandemic on our business in previous years, we are providing the additional tables below to show pre-COVID, COVID impacted and current financial results for the fiscal year-to-date and fiscal third quarter:
QUARTERLY RESULTS (THIRD FISCAL QUARTER)
Pre-COVID
COVID Impacted
COVID Impacted
Current Year
Period
Q3 FY2020
Q3 FY 2021
Q3 FY 2022
Q3 FY 2023
Average # of Consultants
33,600
57,200
41,500
27,100
Net Revenues
40,824,600
66,750,300
45,112,300
30,269,400
Net Earnings
2,735,800
4,269,600
2,646,600
900
After tax profit {e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}
PaperPie’s net revenues decreased $15.9 million, or 38.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, to $25.5 million during the three months ended November 30, 2022, when compared to $41.4 million during the same period a year ago. The average number of active consultants in the third quarter of fiscal 2023 was 27,100, a decrease of 14,400, or 34.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, from 41,500 average active consultants selling in the third quarter of fiscal 2022.
Net revenues from our Publishing division increased $1.1 million, or 29.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, to $4.8 million during the three months ended November 30, 2022, when compared to $3.7 million during the same period a year ago. During fiscal 2023, we entered into a new distribution agreement (“Agreement”) with Usborne. Under the terms in our new Agreement, the Company no longer has the rights to distribute Usborne’s products to retail customers after November 15, 2022, at which time Usborne will use a different distributor to supply retail accounts with their products. The November 15th transition date, at Usborne’s request, was extended until January 31, 2023. The transition between distributors brought disruption concerns to many of our retail customers and resulted in additional sales orders before the November 15th transition date.
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended November 30,
Nine Months Ended November 30,
2022
2021
2022
2021
NET REVENUES
$
30,269,400
$
45,112,300
$
72,848,700
$
118,914,600
EARNINGS (LOSS) BEFORE INCOME TAXES
1,200
3,602,600
(819,200)
10,921,300
INCOME TAXES
300
956,000
(234,000)
2,938,400
NET EARNINGS (LOSS)
$
900
$
2,646,600
$
(585,200)
$
7,982,900
DIVIDENDS PER SHARE
$
–
$
0.10
$
–
$
0.30
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING
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 or Jean Marie Young, (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 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 28, 2022, 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 28, 2022 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.
Tulsa, Oklahoma–(Newsfile Corp. – July 6, 2022) – Educational Development Corporation (NASDAQ: EDUC) (“EDC”, or the “Company”) (http://www.edcpub.com) today reports financial results for the first quarter for fiscal year 2023.
First Quarter Highlights Compared to the Prior Year First Quarter
Net revenues of $23.2 million, a decrease of $17.6 million, or 43.1{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $40.8 million.
Average active UBAM sales consultants totaled 32,200 compared to 55,100.
Earnings before income taxes were $0.3 million, a decrease of $4.4 million, or 93.6{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $4.7 million.
Net earnings totaled $0.2 million, compared to $3.4 million, a decrease of $3.2 million, or 94.1{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.
Earnings per share totaled $0.03, compared to $0.41, down 92.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a fully diluted basis.
“We remain focused on managing our costs while adjusting to recent changes in volume levels in terms of net revenues and average number of consultants. Although the nature of the pandemic has created much volatility in comparing our first quarter numbers, I am pleased that we have continued to remain profitable. During this first quarter of fiscal 2023, demand for children’s books was negatively impacted by reduced disposable income resulting from record inflation. Although we see continued sales pressure from inflation, historically inflationary pressures have bolstered our UBAM divisions’ active consultant count as more families look for non-traditional income streams to offset their rising expenses. We are working diligently to promote the awareness of UBAM’s business opportunity to increase our overall active consultant levels,” stated Craig White, President and CEO of Educational Development Corporation.
Mr. White continued, “At the end of the first quarter we still have increased inventory levels from the ramp up in demand generated from the COVID-19 pandemic. We continue to expect to sell down our inventory to more normalized levels throughout the remainder of fiscal 2023. Naturally, as we also expect to see an increase in sales consultants in this inflationary time, turning our inventory into cash and bringing down our short-term borrowings could come faster.”
Due to the significant positive impact of the COVID-19 pandemic on our business in previous years, we are providing the additional table below to show pre-COVID, COVID impacted and current financial results for the fiscal first quarter:
Pre-COVID
COVID Impacted
COVID Impacted
Current Year
Period
Q1 FY2020
Q1 FY 2021
Q1 FY 2022
Q1 FY 2023
Average # of Consultants
31,600
33,100
55,100
32,200
Net Revenues
27,587,400
38,291,700
40,807,900
23,160,900
Net Earnings
1,363,600
1,931,100
3,438,100
215,800
After tax profit {e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}
Mr. White continued, “Sales from our UBAM division continue to be driven by our active consultant count. UBAM net revenues for our fiscal 2023 first quarter totaled $20.0 million.”
“Gross sales from our Publishing division totaled $6.6 million for the current quarter compared to $6.9 million for the same quarter a year ago. Net revenues totaled $3.1 million for the quarter compared to $3.2 million for the same quarter a year ago. We continue to experience strong sales with existing customers and have success adding new customers through the hard work of our Publishing sales team.”
“During the first quarter of fiscal year 2023, we generated $0.3 million of pretax profits, approximately 1.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} of net revenues.”
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended May 31,
2022
2021
NET REVENUES
$
23,160,900
$
40,807,900
EARNINGS BEFORE INCOME TAXES
285,300
4,660,600
INCOME TAXES
69,500
1,222,500
NET EARNINGS
$
215,800
$
3,438,100
BASIC AND DILUTED EARNINGS PER SHARE:
Basic
$
0.03
$
0.43
Diluted
$
0.03
$
0.41
DIVIDENDS PER SHARE
$
–
$
0.10
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING:
Basic
8,086,427
8,029,264
Diluted
8,473,610
8,481,980
EDC will host its First Quarter Fiscal 2023 Earnings Call, including a live Q&A webcast, on Wednesday, July 6, 2022 at 4:00 PM CT (5:00 PM ET). Craig White, Chief Executive Officer and President, Heather Cobb, Chief Sales and Marketing Officer, Dan O’Keefe, Chief Financial Officer and Secretary, and Randall White, Executive Chairman, will present the Company’s first quarter results and be available for questions following the presentation. Phone lines for participants will be available at (800) 207-0148. The participant passcode is 219367. Audio replays will be available following the event www.edcpub.com/investors.
About Educational Development Corporation (EDC)
EDC is a publishing company specializing in books for children. EDC is the exclusive United States Multi-Level Marketing distributor of Usborne Publishing Limited (“Usborne”) children’s books and the owner and exclusive publisher of Kane Miller Books (“Kane Miller”); both international award-winning publishers of children’s books. EDC’s current catalog contains almost 2,000 titles, with new additions semi-annually. 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 Craig White, (918) 622-4522
Investor Relations: Three Part Advisors, LLC Steven Hooser or Jean Marie Young, (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 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 28, 2022, 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 28, 2022 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.
Tulsa, Oklahoma–(Newsfile Corp. – May possibly 27, 2022) – Academic Growth Company (NASDAQ: EDUC) (“EDC,” or the “Business”) (http://www.edcpub.com) currently announces the day of the yearly shareholders meeting and document day of shareholders.
The Yearly Meeting of Shareholders of Instructional Development Company will be held on July 6, 2022 at 10:00 a.m. at the Corporate Offices, 5402 S. 122nd East Ave in Tulsa, Oklahoma. Shareholders of record at the shut of enterprise on June 2, 2022 are entitled to participate in the once-a-year assembly. The proxy statement, accompanying proxy card and the 2022 Annual Report will be mailed on or about June 15, 2022.
About Instructional Progress Corporation (EDC)
EDC is a publishing business specializing in guides for small children. EDC is the exclusive United States Multi level marketing distributor of the line of instructional kid’s publications created in the United Kingdom by Usborne Publishing Constrained (“Usborne”) and we also solely publish books via our ownership of Kane Miller Ebook Publisher (“Kane Miller”) each international award-successful publishers of children’s books. EDC’s existing catalog consists of virtually 2,000 titles, with new additions semi-annually. Products and solutions are marketed by way of 4,000 retail shops and by unbiased consultants, who hold e-book showings in individual homes, by means of social media, e-book fairs with university and general public libraries, direct and web profits.
Get hold of: Instructional Progress Company Craig White, (918) 622-4522
Trader Relations: Three Part Advisors, LLC Steven Hooser or Jean Marie Young, (214) 872-2710
Cautionary Assertion for the Goal of the “Safe and sound Harbor“ Provision of the Non-public Securities Litigation Reform Act of 1995.
The data reviewed in this Push Release features “forward-searching statements.” These forward-hunting statements are determined by their use of conditions and phrases these as “might,” “expect,” “estimate,” “challenge,” “system,” “believe,” “intend,” “achievable,” “anticipate,” “go on,” “potential,” “should,” “could,” and comparable phrases and phrases. Even though we think that the anticipations mirrored in these ahead-hunting statements are sensible, they do contain selected assumptions, risks and uncertainties and we can give no assurance that these kinds of anticipations or assumptions will be achieved. Identified and unfamiliar risks, uncertainties and other aspects may well bring about our true results, general performance or achievements to be materially unique from any upcoming outcomes, general performance or achievements expressed or implied by ahead-looking statements. Variables that could bring about or contribute to this sort of dissimilarities consist of, but are not minimal to, our good results in recruiting and retaining new consultants, our capacity to identify and procure ideal books, our means to ship the quantity of orders that are obtained without the need of building backlogs, our capacity to get adequate financing for operating funds and funds expenditures, financial and competitive ailments, regulatory alterations and other uncertainties, the COVID-19 pandemic, as very well as those people variables talked about in our Yearly Report on Variety 10-K for the 12 months finished February 28, 2022, all of which are difficult to predict. In light-weight of these pitfalls, uncertainties and assumptions, the ahead-wanting occasions talked over might not happen. All ahead-seeking statements attributable to us or individuals performing on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and in other places in our Once-a-year Report on Sort 10-K for the yr ended February 28, 2022 and talk only as of the date of this Push Release. Other than as expected less than the securities guidelines, we do not suppose a responsibility to update these forward-on the lookout statements, irrespective of whether as a outcome of new information and facts, subsequent gatherings or circumstances, changes in anticipations or if not.
Tulsa, Oklahoma–(Newsfile Corp. – May 4, 2022) – Educational Development Corporation (NASDAQ: EDUC) (“EDC”, or the “Company”) (http://www.edcpub.com) today reports financial results for the fiscal fourth quarter and fiscal year ended February 28, 2022.
Fiscal Year End Highlights Compared to the Prior Year
Net revenues of $142.2 million, a decrease of $62.4 million, or 30.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $204.6 million.
Average active UBAM sales consultants totaled 44,900.
Earnings before income taxes were $11.2 million, a decrease of $6.0 million, or 34.9{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $17.2 million.
Net earnings totaled $8.3 million, compared to $12.6 million, a decrease of $4.3 million, or 34.1{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.
Earnings per share totaled $0.98, compared to $1.50, down 34.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a fully diluted basis.
Fourth Quarter Highlights Compared to the Prior Year Fourth Quarter
Net revenues of $23.3 million, a decrease of $17.0 million, or 42.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $40.3 million.
Average active UBAM sales consultants totaled 37,500.
Earnings before income taxes were $0.3 million, a decrease of $2.7 million, or 90.0{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, compared to $3.0 million.
Net earnings totaled $0.3 million, compared to $2.2 million, a decrease of $1.9 million, or 86.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.
Earnings per share totaled $0.04, compared to $0.25, down 84.0{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a fully diluted basis.
“We are pleased to report that we continue to exceed pre-pandemic levels in our fiscal fourth quarter with increases in net revenues and average number of consultants, resulting in continued profitability. Last year, due to multiple circumstances associated with the COVID-19 pandemic, we saw an unusually positive increase in the demand for our products which resulted in record sales and earnings for fiscal 2021. This year, many of these circumstances, such as children returning to the classroom, and parents returning to full-time employment, have resulted in our business returning to more normalized levels of growth with associated seasonality,” stated Craig White, President and CEO of Educational Development Corporation.
Due to the significant positive impact of the COVID-19 pandemic on the business last year, provided below is an additional table to show pre-COVID, COVID impacted and current financial results for the fiscal fourth quarter and year-to-date results ended February 28 (29),
Pre-COVID
Pre-COVID
COVID Impacted
COVID Impacted
Current Year
Current Year
Period
Q4 FY2020
FY 2020
Q4 FY 2021
FY 2021
Q4 FY 2022
FY 2022
Average # of Consultants
31,400
32,500
58,900
48,700
37,500
44,900
Net Revenues
20,161,900
113,011,900
40,343,000
204,635,100
23,314,200
142,228,800
Net Earnings
538,100
5,645,100
2,168,300
12,624,000
323,900
8,306,800
After tax profit {e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}
Mr. White continued, “Sales from our UBAM division continue to be driven by our active consultant count. When compared to fiscal year 2020, the year prior to COVID-19, UBAM net revenues for our fiscal fourth quarter totaling $20.4 million, are 12.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} greater and UBAM’s fiscal year net revenues totaling $129.0 million, increased by 24.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. This growth, compared to fiscal year 2020, clearly demonstrates the continued success of our consultant salesforce in generating sales.”
“Sales from our Publishing division totaled $2.9 million for the quarter and a record $13.3 million for this year. These record sales volumes from our Publishing division represent a 53.6{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} growth over last year, and an increase of 15.6{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} over the largest sales year in our Publishing Division’s history. We continue to experience sales growth with existing customers and have success adding new customers through the hard work of our Publishing sales team.”
“During the fiscal year 2022, we generated $11.2 million of pretax profits, approximately 7.9{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} of net revenues. This strong profit level results from our consistent business model and our attention to cost control.”
“We are now in our first quarter of fiscal 2023 and are seeing the sales efforts our UBAM division challenged by record inflation resulting in higher fuel and food costs. These inflationary challenges pull back on the disposable income of our customers and have historically had a short-term impact on sales. As an offset to these challenges, our consultant count is typically bolstered by the addition of consultants looking for additional earning streams. These short-term issues have forced us to look at the current fiscal year with a more conservative outlook.”
“While we expect short term challenges this year, we are taking steps to conserve cash and maintain profitability. In addition, because we have acquired the bulk of our inventory over the past year, we are protected in the short term from rising inventory prices. During this quarter we have increased our working capital borrowings with our bank to support our increased inventory levels and the board has decided to temporarily suspend our dividend to protect our balance sheet. The dividend has always been a priority for the Company as part of our long-term capital allocation strategy to create shareholder returns. This strategy remains unchanged and as our inventory levels normalize later this year, our priority is to reinstate our historical practice of paying quarterly dividends,” concluded Mr. White.
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended February 28,
Twelve Months Ended February 28,
2022
2021
2022
2021
NET REVENUES
$
23,314,200
$
40,343,000
$
142,228,800
$
204,635,100
EARNINGS BEFORE INCOME TAXES
314,500
3,013,100
11,235,900
17,230,800
INCOME TAXES
(9,400
)
844,800
2,929,100
4,606,800
NET EARNINGS
$
323,900
$
2,168,300
$
8,306,800
$
12,624,000
BASIC AND DILUTED EARNINGS
PER SHARE:
Basic
$
0.04
$
0.26
$
1.03
$
1.51
Diluted
$
0.04
$
0.25
$
0.98
$
1.50
DIVIDENDS PER SHARE
$
0.10
$
0.10
$
0.40
$
0.32
WEIGHTED AVERAGE NUMBER OF
COMMON AND EQUIVALENT SHARES
OUTSTANDING:
Basic
8,072,456
8,347,427
8,039,843
8,352,474
Diluted
8,461,810
8,644,427
8,452,340
8,426,724
EDC will host its Fiscal Year 2022 Annual Earnings Call, including a live Q&A webcast, on Thursday, May 5, 2022, at 3:30 PM CT (4:30 PM ET). Craig White, Chief Executive Officer and President, Heather Cobb, Chief Sales and Marketing Officer, Dan O’Keefe, Chief Financial Officer and Secretary, and Randall White Executive Chairman, will present the Company’s annual results and be available for questions following the presentation. Phone lines for participants will be available at (855) 639-3876. The conference ID is 8469478. Audio replays will be available following the event www.edcpub.com/investors.
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 Craig White, (918) 622-4522
Investor Relations: Three Part Advisors, LLC Steven Hooser or Jean Marie Young, (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 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 28, 2022, 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 28, 2022 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.
