Results - Education For Live

July 7, 2022

Educational Development Corporation Announces First Quarter Fiscal Year 2023 Results

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 FY 2020	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}	4.9{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	5.0{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	8.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	0.9{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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/130188

May 27, 2022

Green Bay elementary school sees results from mindfulness efforts

Inexperienced BAY – When he to start with arrived into the social worker’s office, a kindergartner at Tank Elementary College acted out and could not control his emotions.

By the conclude of the faculty yr, anytime he felt himself enter the “crimson zone,” he practiced controlled respiratory, attributed shades to his emotions and accessed relaxed.

It’s part of an ongoing mission at Tank Elementary Faculty, utilizing mindfulness towards what principal Janay Banks-Wilson calls “outrageous appreciate.”

“When you have the kid destroying the classroom, or the defiant child, we have to give them a little little bit a lot more outrageous really like,” Banks-Wilson stated. “We have to give them a little little bit far more patience, understanding and extra of us, because that is what they’re screaming out for.”

Throughout 15 universities in the Green Bay College District, the Brown County group nonprofit Wello distributed almost $8,000 in mini-grants for mindfulness apply in K-12 classrooms. The practice incorporates guided breath get the job done, meditation and yoga poses, but the function isn’t going to prevent at asanas. Some lecture rooms permit learners perform with fidget spinners, strike punching bags, serene themselves with weighted blankets and shade mandalas.

Info from local schools show that in the two several years considering that the in-faculty apply commenced, weekly mindfulness, dubbed “Mindfulness Wednesday,” has diminished self-discipline referrals up to 30{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} at Tank Elementary University, which is section of the Wisconsin Accomplishment Gap Reduction System.

Lots of of the learners have currently amassed put up-traumatic worry dysfunction and anxiousness, a consequence of housing instability, monetary struggles and individual experiences, claimed Alyssa Hawley, a social employee at Tank Elementary.

“We have a lot of households who are in no way home-steady, they go from a single put to a further. So when learners appear here, learning isn’t really a priority, it really is ‘Where am I heading tonight? Who am I gonna be with? Am I gonna have plenty of foods?'” Hawley reported.

Banking companies-Wilson stated it is not up to the academics to choose what a student’s version of mindfulness seems like. The purpose of the instructor is to assist offer tangible equipment to obtain a space of serene.

“The previous couple decades have impacted us as grown ups with fully functioning prefrontal cortexes,” Financial institutions-Wilson reported. “What did that mean for a 5-yr-previous, an 8-calendar year-aged, a 10-yr-previous? If they are unable to show up at to the educating, they are not likely to get the teachings.”

Beth Heller, director of strategic partnerships at Wello, has been a practitioner of meditation for over 20 many years. She explained scientific studies have shown the positive physiological results of meditation, which involve reductions in nervousness and despair, heart disease and substantial blood pressure, and more.

“Considering the fact that educational facilities started introducing mindfulness methods into the classroom, you will find been a big craze upward in investigate,” Heller reported. “The data has revealed that mindfulness can increase academic effectiveness and control thoughts.”

Associated:How do you simplicity a kid’s brain about a clinical issue? At a single nearby medical center, the solution is going for walks dinosaurs.

Associated:‘A classroom devoid of walls’: Environmentally friendly Bay On the internet University to contain sixth grade in the drop

A 2017 examine posted in Psychology in the Schools observed that mindfulness-primarily based programs in colleges can “increase interest and executive performing, bolster social-psychological resiliencies, and aid lecturers and learners control university-related stressors.”

Even though some gurus could possibly not see it this way, mindfulness comes in several varieties that go outside of conventional sorts of meditation. Some learners like to doodle and colour when they truly feel rigidity coming on, other folks like to participate in with fidgets and nonetheless others prefer to permit out steam on a punching bag, Hawley mentioned.

But managing strain rises to a complete new level when shifting from elementary college to middle university, a time of dramatic physical and psychological progress.

At Washington Center College, disproportionate suspensions of Black college students in the 2015-16 college year led to operating groups grappling with approaches to decrease expulsion fees and uplift learners with a brain toward new community ways.

In 2017, faculty directors labored with the Greater Eco-friendly Bay Chamber to convert a classroom into a mindfulness place. The room, from its lighting to the resources within just the place, offers authorization for pupils to preoccupy by themselves, quiet their nerves and reset.

Washington Center University reported a 12{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} lessen in suspensions in the to start with two years of the practice’s implementation.

Molly O’Neill took over as principal this calendar year and started out the mindfulness software anew, just after the gap produced by COVID-19.

She explained the house blends the amenities of a bed room and yoga studio. The college has been equipped to monitor information to watch the frequency of use, which often is 5 to seven students per hour.

Lunch periods are the most preferred time of the day for learners to arrive into the mindfulness house, which O’Neill mentioned is the most frenetic level of the day for a lot of learners.

Whilst Washington Center University has not witnessed really the same decrease in self-control referrals this calendar year, O’Neill mentioned the 12 months and a half prior to the pandemic hitting there was a “sturdy correlation” involving learners entering the mindfulness space and less need to have for disciplinary motion.

Even though O’Neill claimed it’s far too early to know regardless of whether discipline referrals will reduce as a result of the mindfulness area following a 12 months of distant finding out, the solution of sending college students to the place has been a web-positive for the school.

It also has provided students with the implies of understanding when their adrenaline begins to spike.

“A university student becoming sent to the mindfulness place is not a consequence it has nothing at all to do with misbehaving,” O’Neill mentioned. “It is really extra of a, ‘Hey, I see you are starting off to be brought on and you might be starting off to present signs of probably some escalated stress and anxiety. Just before this turns into a thing, let’s go there.'”

May 5, 2022

Educational Development Corporation Announces Fiscal Fourth Quarter and Fiscal Year 2022 Results

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 FY 2020	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}	2.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	5.0{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	5.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	6.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	1.4{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}	5.8{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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/122795

February 17, 2022

Bill would only require WV home-schoolers who aren’t on vouchers to submit test results once | Education

February 11, 2022

4 all-American schools bring diverse groups of students together with astounding results

American schools have usually been the foundation of a child’s advancement toward adulthood. Absolutely sure, universities can form a student’s path to be a expert in their area, but universities are the fundamentals that raise them to be equipped to reach their aspiration.

It is of utmost great importance that a boy or girl gets the correct education and learning they need to have in the course of their increasing several years – they assistance cultivate patterns and capabilities that are necessary in adulthood.

Variety holds huge relevance as very well. Human beings occur in all sorts of colors and races, young children should really be uncovered to all the unique cultures that The us has.

So, parents ought to bring their kids to a diverse faculty that retains a significant tutorial normal to assist them arrive at their total possible – like these four faculties that you must think about enrolling your young children at:

Chaminade Higher education Preparatory College

If you look for a supportive faculty with qualified faculty customers and college-prepared college students, head to Chaminade Higher education Preparatory School. Nestled in vivid Saint Louis, Missouri, Chaminade is an unbiased Catholic college for younger gentlemen in grades six by means of 12, getting ready them for good results in college and outside of.

What sets Chaminade aside is its keep track of record of results in planning pupils for university and its extensive assist procedure. Listed here, hugely educated school users (95{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} keep master’s or doctorate levels) direct complicated classes, like dual University Credit Plan, and 28 AP courses. Pupils can be part of the Pathway to Obtain University Early (Tempo) Application — which offers in excess of 120 programs — attaining faculty and college credit, although planning for the rigours of a college classroom.

Many Speed graduates have up to 40 credits by the time they step foot in college, making it possible for them to double important, choose a hole 12 months, get paid a master’s diploma in the time it requires most pupils to earn their bachelor’s degree, and help save their households all-around US$50,000 to US$60,000 in college expenses.

Assist and assistance are offered for students of all capability concentrations in reaching their whole potential. Chaminade offers ESL Lessons (ESL Language, ESL Composition, ESL Social Research, ESL Theology), devoted direction and university counsellors, just after-university study courses, peer tutoring, Tutorial useful resource heart and Tutorial Resource Consultants. One more perk for students in this boy’s faculty is its concentrate on government operating capabilities, ensuring each boy has sharp organisation, time management, and research/examination preparation techniques. To find out extra about how Chaminade supports their journey from boyhood to manhood by non secular, academic and social improvement, click below.

San Marcos Academy

San Marcos Academy (SMA) is a coeducational school for boarding learners from grades six to 12. Nestled involving Austin and San Antonio, in the beautiful Texas hill county, its 220-acre campus is the place a exceptional educational working experience is presented.

San Marcos Academy is a coeducational university for boarding college students from grades 6 to 12 and day students from grades K to 12th. Source: San Marcos Academy

This completely-accredited Christian university offers a school preparatory curriculum made to engage and inspire learners, getting ready them to be successful not just in college or university but in their profession too. These genuine and transformational learning experiences expose students to discipleship concepts these types of as worship, reality, justice, company and group.

Athletics engage in a pivotal function in this article also. All SMA students are encouraged to get included in sports activities to construct values in sportsmanship, integrity, and character.

The academy offers two boarding solutions, the 1st of which is a regular 7-day boarding programme. The next, the 5-working day boarding programme, was made for people residing inside a 70-mile radius of the campus. College members do not just supervise and mentor, but sort personalized associations with the pupils in their treatment.

The Webb School

Photograph all the benefits of a rural spot in Bell Buckle, Tennessee, with Nashville, just one of the South’s legendary metropolitan areas, household to well known recording artists, writers, globe-renowned chefs, and loaded cultural heritage, only a shorter push away. From tunes to artwork and theatre, there are opportunities to take a look at one’s creative imagination and find one’s voice.

Started in 1870 by famous educator Sawney Webb, it is the oldest continually operating boarding and working day college in the South. Resource: The Webb College

These characteristics outline an schooling at The Webb College. Established in 1870 by famous educator Sawney Webb, it is the oldest constantly running boarding and working day college in the South.

Now, it supplies a distinct training — focusing on difficult teachers with an emphasis on individual integrity in a compact spouse and children-like placing — to 400 college students in grades six to 12.

What sets The Webb School apart is how it develops characters. Concentrating on local community and associations, little ones get a down-to-earth upbringing that locations honour and personalized integrity in every factor of school lifetime. In a environment shrouded by negativity and polarisation, parents felt Webb’s inclusive local community stood out.

The Master’s Academy

Nestled on a 33-acre campus in Orlando, Florida, The Master’s Academy presents a mix of academic, religious, and athletic education and learning for more than 1,000 learners from K2 to 12th grade.

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January 7, 2022

Educational Development Corporation (EDUC) CEO Craig White on Q3 2022 Results – Earnings Call Transcript

Educational Development Corporation (NASDAQ:EDUC) Q3 2022 Results Conference Call January 6, 2022 4:30 PM ET

Company Participants

Craig White – President, CEO

Dan O’Keefe – CFO

Heather Cobb – Chief Sales & Marketing Officer

Conference Call Participants

David Wright – Henry Investment

Randy Freed – RL Capital

Operator

Thank you for joining the Educational Development Corporation’s Third Quarter Earnings Call.

Before beginning the call, we would like to remind you that some of the statements made today will be forward-looking and are protected under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Educational Development Corporation’s recent filings with the SEC for a more detailed discussion of the company’s financial condition.

With that, I would like to turn the call over to Craig White, the company’s President and Chief Executive Officer.

Craig White

Thank you, and welcome, everyone, to the call. With me today are Randall White, our Executive Chairman of the Board; Heather Cobb, Chief Sales and Marketing Officer; and Dan O’Keefe, our Chief Financial Officer.

Before I turn it over to Dan to go over the financial results, I’d like to recognize what a challenging year has been, probably mostly from a staffing perspective. I’m so proud of the team that we have here at EDC as the team continues to get better and better. We handled most of the staffing challenges very well, predominantly in the warehouse and really didn’t miss a beat with the challenging staffing environment out there. We didn’t have any outbreaks in the office, have really had mostly a healthy and safe environment here at EDC. So I want to recognize that first.

Now I’d like to turn the call over to Dan O’Keefe, our Chief Financial Officer, to provide a brief overview of the financials.

Dan O’Keefe

Thank you, Craig. Now for a brief overview of our third quarter financials. Our net revenues for the third quarter totalled $45.1 million, a decrease of $21.7 million or 32.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} compared to 66.8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} — compared to $66.8 million reported in the third quarter of last year.

Earnings before income taxes for the third quarter totalled $3.6 million, a decrease of $2.2 million or 37.9{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} compared to $5.8 million reported in the third quarter of fiscal 2021. Net earnings totalled $2.6 million compared to $4.3 million, a decrease of $1.7 million or 39.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} from the third quarter last year. Earnings per share totalled $0.31 compared to $0.51, down 39.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a fully diluted basis.

That concludes the report for the third quarter financial results, and I’ll now turn the call back over to Craig.

Craig White

Thanks, Dan. A couple of items I would like to begin with today that you may have heard from me in the last couple quarterly calls and at conferences and whatnot. The COVID pandemic affected most businesses in the world, either positive or negative last year, and our company was no different. Fiscal 2021 was normal year for us. Along with the initial surge in sales from the pandemic last summer, we experienced an increased demand for non-traditional income opportunities from parents that were looking to supplement or replace pre-COVID income streams.

These factors or pandemic-related issues drove our revenues to record levels last year.

Our fiscal third quarter is typically our largest sales quarter of the year due to the seasonality of the business. This year’s third quarter sales were more in line with pre-COVID years, and that’s why we’ve presented our most current pre-COVID year comparison in today’s press release. While our third quarter revenues are down significantly from the third quarter of last year, they are up over pre-COVID levels, primarily due to our increased publishing division sales and the impact of our UBAM division’s increased consultant count. We see both these contributors continuing to drive sales in fiscal 2022 and into fiscal 2023.

So in the last couple of quarterly calls, I said we had an incredible, unusual year, and while we’re still facing unusual factors, the pandemic is not gone, we kind of had this in and out of school, in and out of work and all those things. It’s just an incredibly challenging year to compare to.

So let me next turn it over to Heather Cobb, our Chief Sales and Marketing Officer, to discuss our sales.

Heather Cobb

Thanks, Craig. During our third quarter we continued to experience an increase in our Publishing division sales and a decrease in sales from our UBAM division when compared to last year, in the throes of the pandemic.

Our Publishing division sales increased 44{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to $3.7 million in the third quarter due primarily to the return of business from customers that were temporarily closed last year due to the guidelines published by local authorities. In addition, our Publishing division has added several new customers and experienced growth with existing customers that are driving this division sales to record levels in fiscal 2022.

Our UBAM sales declined 35{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to $41.4 million in the third quarter of fiscal ’22, primarily due to the anomaly that last year was. During last year, we experienced unusual growth in our active consultant count that began in the summer of 2020 and peaked at around 60,000 in November last year. This growth in active consultants drove our revenues to record levels during fiscal ’21.

Throughout fiscal ’22, we’ve seen our active consultant count decline due to consultants returning to full-time work as the drain on parents available time navigating — associated with the continued pandemic and their children’s returning to school. The recurring obstacles of new strains of the pandemic impact our consultants’ available time to run their business.

But while our consultant counts have declined, they are certainly above the pre-pandemic levels that Craig mentioned and our consultants are still having success, generating sales, earning commissions and building their business. This was evidenced during this third quarter as our active consultants generated similar sales and commission per consultant to the third quarter of last year and the pre-pandemic third quarter of fiscal 2020.

These sales and commission results give us support that our existing consultants are experiencing a consistent level of success as they achieved without benefiting from the increased demand that occurred in the early days of the pandemic, most noticeably in that first and second quarter of fiscal ’21.

In addition, we continue to introduce new technology-based tools to help our consultants be more successful in reaching new customers and expand their recruiting and business building efforts. We believe that this will help retain the current consultants we have as well as recruit new people to the business.

Two upcoming enhancements that we expect to roll out in the next 3 months include upgrade to our platform with additional features that will improve our new consultant experience as well as our new e-commerce platform. We delayed rolling out that e-commerce platform in the third quarter of this fiscal year because our internal team as well as our top level leaders had valuable input to make that platform even better. These new technologies are expected to have a positive impact on both new consultant experience, customer experience as well as the sales and commissions earned by those new consultants during their initial period with the company.

With that, I’ll turn the call back over to Craig.

Craig White

Thanks, Heather. One other impact you see from our recently published financials is our continued high levels of working capital. We have increased inventory levels and increased working capital borrowings. These increased levels are temporary and will rebalance as we turn inventory into cash over the next few quarters. As inventory turns to cash, we will pay down our borrowings and expect to be back to a more normalized working capital within the next year.

And the good news is that the cost of carrying this inventory is less than the current replacement costs given the unusual ocean shipping challenges that are occurring.

One of the other highlights for our third quarter was our strong pretax profit levels. Our pretax profit as a percentage of net revenues totalled 8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. These pretax results on lower revenue levels than the third quarter last year reflect the strength of our business model and the management’s attention to cost containment.

We are excited to see the rebound from certain sales channels that were negatively impacted by the pandemic, including sales through school booth fairs. While this started to return this year, the new versions of the COVID-19 virus has stalled the return of this income stream, the return of booth and fair booths, which also continue to be impacted by the new COVID-19 variants. These 2 sales channels combined for about $30 million of the business that we expect will be returning to us in future quarters. We saw evidence that they were kind of starting to come back and then again with this new variant kind of shut those things back down a little bit.

So I can expand on any of those points. But at this point, we want to open it up to questions from our investors.

Question-and-Answer Session

Operator

[Operator Instructions] Your first question comes from the line of David Wright from Henry Investment.

David Wright

Is your inventory higher than you’d like it to be right now?

Craig White

Absolutely. No question. I’ve had — I’m glad you asked — well, do you have a follow-up question or can I answer that one?

David Wright

Please do.

Craig White

So I was asked — I’ve been asked every phone call with investors, every investor conference, absolutely, our inventory is a little bit high. While we didn’t expect to increase sales 80{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, 50{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} or maybe even 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to 15{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} this year, last third quarter was a disaster as far as inventory levels. So we ramped up our inventory levels, which we purchased in January, February, March. And we are just now receiving that in the September, October, November time frame. We have not actively purchased any new backlist title inventory in 6 months.

The only inventory purchases that we’ve made in the last 6 months are new title inventory, which, as people know, is the lifeblood of a sales organization. So while there is some silver lining to that, as I mentioned in the script, we mostly — not completely, but we largely missed all the chaos that is the supply chain right now. We saw our container costs coming from China go from $5,000 to sometimes $35,000 a container. And so while we were over-inventoried, we largely missed all of that increase in cost and the delays coming from China. So yes, we’re over-inventoried.

It helped us get through a tough time, but none of it is obsolete. It will all sell. And over the next 4, 5 months, we expect that to sell down, turn it into cash, and we’ll be in great shape by next summer or third quarter.

David Wright

Right. So with your — just looking historically, your fourth and first quarters — well, your fourth quarter is typically your slowest quarter and your first quarter is only a little better. So what — where would you like inventories to have been at November 30 based on current business conditions?

Craig White

Yes. For the current sales levels, probably $45 million to $50 million would have been a more appropriate level. I think we peaked at $70 million or just slightly north of $70 million. So we have about $20 million to $25 million too much inventory. But again, we’re not actively purchasing except for new titles, and we’ll sell that down over the next couple of quarters.

David Wright

Okay. And then the other thing that I wanted to ask here ties in with the cash flow. Cash flow from operations through the first 6 months was positive $12.4 million, it’s now negative $7.4 million, which means it’s $119.8 million in the third quarter. What — do you think the fourth quarter is going to generate positive cash flow from operations?

Dan O’Keefe

Craig, do you want me to address that?

Craig White

That would be great.

Dan O’Keefe

Okay. Yes, David, that’s a good question. As you mentioned, the first — the fourth quarter is typically not our biggest quarter of the year as far as sales. But we do — we’re not going to be — we don’t expect to increase inventory. When we look at cash flow from operations, there’s really going to be 2 things — 3 things driving it.

You’re going to have your income from the business, which is going to be positive. And then you’re going to have your change in inventory and your change in accounts payable, which are going to be the other 2 major drivers of that. And we don’t see inventory increasing so that shouldn’t negatively impact our cash flow from operations. AP will be coming down a little bit, though, because we do have some payables coming due, so that would be the other element there that — we’re still in the fourth quarter and only in the first month of it. So I don’t want to make a commitment that it’s going to be cash flow positive.

But I mean those are the only 3 elements that are really going to drive it. And as you said kind of, David, when you started your question, our fourth quarter is typically not the biggest of the year. So it’s not going to really see a lot of impact on inventory dropping. We see that being bigger in the first quarter of next year in the April — March, April, May quarter because that’s when we have our second largest quarter of the year. That involves our — the Easter holiday, and we have a lot of school activities associated with that quarter of March, April and May.

So we expect to see a bigger dent in our inventory coming down in that first fiscal quarter and then also in the second fiscal quarter and third fiscal quarter, as Craig was saying. So as Craig mentioned earlier, we’re $25 million more in inventory than normally be had more predictable last 24 months, but there’s some positive elements being a little over inventoried right now. And that’s the fact that the replacement cost right now is much higher than our carrying cost of inventory. And so we feel like we’re a little heavy on inventory and our working capital position, but it will be corrected here over the next 3 quarters.

Craig White

Thanks, Dan. It seems like an appropriate time also to mention that we have very solid relationship with our bank, and their involvement and support of our business is very strong. So that’s a positive as well.

Operator

[Operator Instructions] Your next question comes from the line of Randy Freed from RL Capital.

Randy Freed

I’m not sure who this question could be directed to, but it’s probably either Craig or Dan. I’m looking at the table in the earnings announcement near the beginning where you talked about the average number of consultants and then the net revenue and the net earnings after tax profit percentage. And I’m trying to reconcile in my own mind some of the statements you made a little bit past that in the next paragraph or 2 and a couple of statements you made on this call, where you said that you’re happy with the strong pretax profit level and you’re very happy with the cost containment.

So when I’m looking at this table here for the current quarter and I’m comparing it to the one from 2 years ago, I see after-tax profit margin of 5.9{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} versus year ago was 6.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. And I see the net earnings down just very slightly compared to the one from 2 years ago, even though the sales were up about 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. So that’s the problem I’m having in my mind reconciling sort of what’s going on. I was wondering if maybe something happened this quarter, there was an unusual expense or something, and I’ll quiet, let you talk.

Dan O’Keefe

Yes. Craig, if it’s okay, I’ll take that one.

Craig White

Yes, go ahead. I have some things to add to, but go ahead.

Dan O’Keefe

Okay. So a good question, Randy. Third quarter typically our biggest quarter of the year and highest profit percentage of the year because you’re spreading your fixed costs, obviously, over a bigger revenue base. And so the difference between pre-COVID if you look at those profitability percentages now is really dealing with a little — a different freight cost on our outbound freight is the biggest impact. We have a contract with our small parcel carrier.

And COVID occurred last year, they started implementing 2 different layers of surcharges. One was a peak season surcharge and the other one was a — just an unusual holiday season on top of the peak season surcharge. And so we’ve kind of had to bear some of those costs, and they’ve hit our bottom line here in the third quarter of this year that weren’t in place pre-COVID. And so that’s what you see. The other thing I would like to point out to you is that if you can look at the year-to-date numbers, you can see our year-to-date numbers for this current year after tax were 6.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} in the table there, and then the pre-COVID numbers are 5.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.

So while we’ve had some holiday season peak surcharges this year and even last year, overall, the peak season surcharges haven’t hurt us. And we’ve implemented some rate increases this year that have actually helped us generate the after-tax margin of 6.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} year-to-date.

Craig White

Yes. Let me add to that, we kind of internally use pretax profit as a KPI. And so we had a very challenging September actually. That seemed to be the most chaotic as it related to the pandemic as kids were kind of going back to school. We seemed to be coming out of the pandemic with people going back to work.

So there was a little bit of chaos. September was not good. And then we followed that up with October with our best pretax profit that I remember in years. And then November, we did a lot of promotions with some free shippings and things, but it was still a very solid pretax profit.

So we’re — like we’re saying, the sales are way over third quarter — or not way over, they’re over third quarter 2020 and considerably lower than last third quarter, but we’re maintaining good pretax profit level.

Randy Freed

Okay. I did notice what you said, too, about the 6.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} versus the 5.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, but that sort of brings me to the question, if you look at the fiscal year-to-date for the sales from 2 years ago versus this year for the first 9 months, it looks like it was up about 28{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} from 2 years ago for the first 3 quarters added up. But this year, it was up about 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} or 11{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. So I did notice that, too. So it looks like — I mean the sales are higher, but they’re not as high in the whole fiscal year as a percentage.

Craig White

Well, that’s not exactly accurate. 1.2{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on the 5.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} is more like 23{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} or 24{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}. So it’s not 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} or 11{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}, it’s about 20{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf}.

Randy Freed

No, I was talking about the sales — I’m sorry, the net revenue is what I was talking about, I’m still in that same table.

Craig White

Okay. I thought you were talking about the after-tax profit, I’m sorry.

Randy Freed

No. That’s fine. Let me just ask one last question. So you’re talking about strong pretax profit levels, et cetera, and I know you really can’t project this at all. But for the next fiscal year, which I guess talking about March 1 of this year or 12 months after that. I mean you’ve talked a lot about efficiencies and things like that. Do you have any idea or do you think the pretax or the after-tax profit levels are going to be sort of consistent? If you look at this whole table here, you can see no matter what we’re talking about, they’re pretty consistent, right, between 5.5{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} at the worst and 6.7{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} at the best, just looking at this table, which I know there’s different columns there. But do you sort of project that as being roughly the same? Or do you think that potentially could increase in the future?

Craig White

Yes. I think you probably recognize kind of our model, and we have 25{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to our business. So we’re hitting 8{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} and maybe a little bit north of 10{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} on a pretax profit, but the changes of getting much higher than that are challenging. I think it’s going to be very consistent. What I will add is that we could have been more efficient this third quarter this year because the staffing challenges were crazy.

We hired roughly 300 people, and about 30 of them starched. So that time and effort to train people for them to leave at lunch and never come back or not come back the second day or all of those factors, we could have been a little more efficient this year, even this third quarter. So — but still, I expect them to remain consistent. Yes.

Randy Freed

Okay. That’s what I was hoping you’d get into a little bit of what you just said that there was a lot of challenges this quarter. And like you said, with staffing and people not coming back. And then what Dan already talked about with the freight costs and the peak season surcharges. So thank you for that information.

Operator

There are no further questions at this time. Presenters, you may continue.

Craig White

Okay. Great. So while we’re not ecstatic about what has been so far this year, we are encouraged and happy. We’re considering ourselves still in the growth mode, if we’re comparing to the last normal year. We’ve had 2 very unusual non-normal years that were — our growth pattern of about 30{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} to 40{e4f787673fbda589a16c4acddca5ba6fa1cbf0bc0eb53f36e5f8309f6ee846cf} over the same time period in calendar 2019. So

we have nothing but good forecasts. We’re looking forward to this next year. While we’re not ecstatic, we’re still pleased with what we’ve accomplished. So we appreciate you all joining us, and talk to you next time. Thank you.

Operator

This concludes today’s conference call. Thank you for participating. You may now disconnect.