Educational Development Corporation Announces Fiscal 2025 First Quarter Results
Rhea-AI Summary
Educational Development (NASDAQ: EDUC) reported its fiscal 2025 first quarter results, highlighting significant declines in key financial metrics. Net revenues fell to $10.0 million from $14.5 million year-over-year. The company reported a net loss of $1.3 million, compared to $0.9 million in the prior year, with a loss per share increasing to $0.15 from $0.11. Active PaperPie Brand Partners decreased to an average of 13,400 from 23,200. Despite these challenges, EDC generated $2.9 million in positive cash flow from inventory reductions and executed important real estate transactions aimed at improving cash flow and reducing debt. Promotions in June added over 3,700 new Brand Partners, totaling 14,700 by the end of the month. The company remains focused on returning to profitability and ensuring long-term stability through strategic actions.
Positive
- Generated $2.9 million in positive cash flow from inventory reductions.
- Executed a $35.5 million sale/leaseback agreement for the Hilti Complex.
- Added over 3,700 new Brand Partners in June, increasing total to 14,700.
Negative
- Net revenues declined to $10.0 million, down from $14.5 million year-over-year.
- Reported a net loss of $1.3 million, compared to $0.9 million in the prior year.
- Loss per share increased to $0.15 from $0.11.
- Average active PaperPie Brand Partners fell to 13,400 from 23,200.
News Market Reaction
On the day this news was published, EDUC declined 1.04%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Tulsa, Oklahoma--(Newsfile Corp. - July 11, 2024) - 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 fiscal first quarter ended May 31, 2024.
First Quarter Summary Compared to the Prior Year First Quarter
- Net revenues were
$10.0 million compared to$14.5 million . - Average active PaperPie Brand Partners totaled 13,400 compared to 23,200.
- Average active PaperPie Brand Partners totaled 15,015 as of February 29, 2024.
- Loss before income taxes were
$(1.7) million , compared to$(1.2) million . - Net Loss totaled
$(1.3) million , compared to$(0.9) million . - Loss per share totaled
$(0.15) compared to loss per share of$(0.11) , on a fully diluted basis.
Per Craig White, Chief Executive Officer, ". I am encouraged that we were able to cover our historically negative first quarter cash outflows with the
"In June we ran promotions to invite new Brand Partners to join our direct sales division PaperPie. I am excited to say the promotions are showing signs of success as we added over 3,700 new Brand Partners thus far, increasing our total active Brand Partners to 14,700 at the end of June. We are excited to have these new Brand Partners join and are running several promotions over the summer to help them gain knowledge, experience and success before we head into fall, which is our most robust selling season of the year."
"Throughout the majority of the year we have strategically focused on solidifying the long-term future health and stability of Educational Development. On May 26, 2024 we announced the lease of approximately one half of our space in the Hilti Complex to a 3rd party. The lease commenced July 1, 2024 and is for an initial term of five years, with an option to renew for another five years. The lease proceeds will generate approximately
"Secondly, on June 6th we executed a sale/leaseback agreement for the Hilti Complex totaling
"The outcome from these two agreements are major steps to returning the Company to profitability and sharing that profitability in the form of longstanding dividends with our shareholders. I would like to again, thank our stakeholders for your ongoing support; including our Brand Partners, customers, employees, vendors and shareholders. It's with your support we remain steadfast in our mission to improve children's literacy", concluded Mr. White.
| Three Months Ended May 31, | ||||||||
| 2024 | 2023 | |||||||
| NET REVENUES | $ | 9,993,400 | $ | 14,524,000 | ||||
| LOSS BEFORE INCOME TAXES | (1,747,000 | ) | (1,200,600 | ) | ||||
| INCOME TAX BENEFIT | (468,000 | ) | (327,800 | ) | ||||
| NET LOSS | $ | (1,279,000 | ) | $ | (872,800 | ) | ||
| LOSS PER SHARE | $ | (0.15 | ) | $ | (0.11 | ) | ||
| DIVIDENDS PER SHARE | $ | - | $ | - | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||||||
| Basic | 8,266,771 | 8,278,049 | ||||||
| Diluted | 8,266,771 | 8,278,049 | ||||||
Fiscal 2025 Earnings Call
Date: Thursday, July 11, 2024
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 40168
The conference call will be broadcast live and audio replays will be available following the event at www.edcpub.com/investors.
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books (“Kane Miller”); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited (“Usborne”) children’s books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser (214) 872-2710
Cautionary Statement for the Purpose of the “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995.
The information discussed in this Press Release includes “forward-looking statements.” These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, cybersecurity threats and incidents, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 29, 2024, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 29, 2024 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216189
FAQ
What were Educational Development 's (EDUC) fiscal Q1 2025 net revenues?
How much net loss did EDUC report for fiscal Q1 2025?
What was the loss per share for EDUC in fiscal Q1 2025?
How did Educational Development perform in terms of active PaperPie Brand Partners?
What strategic actions did EDUC take to improve cash flow in fiscal Q1 2025?
How many new Brand Partners did EDUC add in June 2024?
