Educational Development Corporation (“EDC”, or the “Company”)
(NASDAQ: EDUC) (http://www.edcpub.com) today reports record net
revenues and earnings per share results for the fiscal fourth
quarter and fiscal year ended February 28, 2021.
Fiscal Year End Highlights Compared to
the Prior Year
- Net revenues of $204.6 million, an
increase of 81.1%, compared to $113.0 million.
- Net earnings of $12.6 million, an
increase of 125.0% compared to $5.6 million.
- Earnings per share was $1.50,
compared to $0.68, an increase of 120.6%.
Fourth Quarter Highlights Compared to
the Year Ago Quarter
- Net revenues of $40.3 million, an
increase of $20.2 million, or 100.1%, compared to $20.1
million.
- Earnings before income taxes were
$3.0 million, an increase of $2.3 million, or 328.6%, compared to
$703,000.
- Net earnings totaled $2.2 million,
compared to $538,100, an increase of $1.6 million, or
303.0%.
- Earnings per share totaled $0.25,
compared to $0.06, up 316.7% on a fully diluted basis.
“I am delighted to report our record breaking
year that resulted from an increased demand for our quality
educational products. Our sales growth during fiscal 2021
translated into significant earnings growth and significant
positive cashflows from operations,” said Randall White, President
and CEO. “We have used the majority of the cashflows generated to
strategically invest in additional capacity to support future
growth. Additionally, we retired two term loans early which frees
up future cashflows, and returned excess cash to our shareholders
in the form of increased quarterly dividends. In combination with
our existing Usborne Books & More (“UBAM”) consultants and
leaders, the addition of almost 30,000 new sales consultants was a
key factor of the accelerated growth we experienced in the second
half of the year; and that continues into fiscal 2022. As evidenced
by our sales growth, increased profitability and operating
cashflows, along with the continued success of our consultants,
Educational Development Corporation is not only a great company to
work for, but is also well positioned to continue to generate
long-term shareholder return,” continued Mr.
White.
Net revenues for the direct sales division,
UBAM, totaled $38.0 million for the fiscal fourth quarter ended
February 28, 2021, an increase of 108.5% from $18.2 million for the
fiscal fourth quarter ended February 29, 2020. While initially this
division received a boost in sales last spring and summer from
parents at home with children needing educational materials, the
division’s sales growth since, has been driven by the increased
number of active sales consultants. UBAM ended the fiscal year with
57,600 active consultants, which is an increase of 95% over the
29,600 active consultants from a year ago. The growth in the
Company’s sales force has been driven by several factors,
including: an increase in families looking for non-traditional
income streams to supplement, or replace, income lost from the
COVID-19 pandemic, a change in new consultant kits that offered
lower introductory prices, a restructuring of the UBAM consultant
success program that was introduced during the first quarter of
fiscal 2021 and technology improvements that have enhanced the
customer experience and streamlined the proprietary systems that
consultants use to run their business.
Net revenues in the Publishing division
increased 21.0%, to $2.3 million for the fiscal fourth quarter
ended February 28, 2021, from $1.9 million for the same quarter a
year ago.
Mr. White concluded, “We are encouraged to see
rebounding sales from our Publishing division, as retail stores are
re-opening across the United States. We are also optimistic about
the returning sales from UBAM sales channels that were negatively
impacted by the COVID-19 pandemic; including sales to schools and
libraries along with sales at booths and fair events. Returning
sales from these channels are expected to have a positive impact on
our next fiscal year.”
The board approved a quarterly cash dividend of
$0.10 per share, which will be paid on, or around, June 17, 2021 to
shareholders of record on June 2, 2021.
EDUCATIONAL DEVELOPMENT CORPORATION |
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) |
|
|
Three Months EndedFebruary 28
(29), |
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Twelve Months EndedFebruary 28
(29), |
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|
2021 |
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2020 |
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2021 |
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2020 |
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NET REVENUES |
|
$ |
40,343,000 |
|
|
$ |
20,161,900 |
|
|
$ |
204,635,100 |
|
|
$ |
113,011,900 |
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EARNINGS BEFORE INCOME
TAXES |
|
|
3,013,100 |
|
|
|
703,000 |
|
|
|
17,230,800 |
|
|
|
7,751,900 |
|
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INCOME TAXES |
|
|
844,800 |
|
|
|
164,900 |
|
|
|
4,606,800 |
|
|
|
2,106,800 |
|
NET EARNINGS |
|
$ |
2,168,300 |
|
|
$ |
538,100 |
|
|
$ |
12,624,000 |
|
|
$ |
5,645,100 |
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BASIC AND DILUTED
EARNINGS |
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PER SHARE: |
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Basic |
|
$ |
0.26 |
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$ |
0.06 |
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$ |
1.51 |
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$ |
0.68 |
|
Diluted |
|
$ |
0.25 |
|
|
$ |
0.06 |
|
|
$ |
1.50 |
|
|
$ |
0.68 |
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DIVIDENDS PER SHARE |
|
$ |
0.10 |
|
|
$ |
0.05 |
|
|
$ |
0.32 |
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|
$ |
0.20 |
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WEIGHTED AVERAGE NUMBER
OF |
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COMMON AND EQUIVALENT
SHARES |
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OUTSTANDING: |
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|
|
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Basic |
|
|
8,347,427 |
|
|
|
8,370,021 |
|
|
|
8,352,474 |
|
|
|
8,318,412 |
|
Diluted |
|
|
8,644,427 |
|
|
|
8,370,021 |
|
|
|
8,426,724 |
|
|
|
8,323,128 |
|
EDC will host its Fiscal 2021 Annual Earnings
Call, including a live Q&A webcast, on Tuesday, May 18, 2021 at
3:00 PM CT (4:00 PM ET). Randall White, the Company’s Chief
Executive Officer and President, Craig White, Chief Operating
Officer, Heather Cobb, Chief Sales and Marketing Officer and Dan
O’Keefe, Chief Financial Officer and Secretary, will present the
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 at www.edcpub.com/investors.aspx.
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
CorporationRandall White, (918) 622-4522
Investor Relations:Three Part Advisors,
LLCSteven Hooser, (214) 872-2710Cautionary 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 29, 2020, all of which are difficult to
predict. In light of these risks, uncertainties and assumptions,
the forward-looking events discussed may not occur. All
forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the
cautionary statements in this paragraph and elsewhere in our Annual
Report on Form 10-K for the year ended February 29, 2020 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.
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