Education Dvel Stock Price, News & Analysis

Educational Development (NASDAQ: EDUC) has secured an Eighth Amendment to its Credit Agreement with BOKF, NA. The amendment extends the Revolving Loan maturity to July 11, 2025, with required step-downs to $4.5 million by May 31, 2025. Additionally, the maturity dates for two term loans have been extended to September 19, 2025.

The company has demonstrated financial improvement by reducing bank debt by over $3.0 million and payables by $2.0 million. EDUC has engaged Keen-Summit as their new real estate broker to market the Hilti Complex, with the sale proceeds expected to fully repay outstanding Revolver and Term Loans. The company anticipates operating with borrowings post-sale, which should positively impact profitability and cashflow.

Educational Development (NASDAQ: EDUC) has signed a new brokerage agreement with Keen-Summit Capital Partners to market and sell its Hilti Complex in Tulsa, Oklahoma. The agreement grants Keen-Summit a nine-month window to market the property.

The Hilti Complex includes multiple buildings totaling 402,000 square feet of rentable office and warehouse space on 35-acres. The property currently houses three tenants: EDC, Hilti (tool manufacturer), and Crusoe (cloud and AI services provider). EDC plans to execute a new multi-year lease agreement for its occupied space upon selling the complex.

CEO Craig White indicated that while the process has taken longer than expected, the company continues to work with their bank and financial advisors. The decision to engage Keen-Summit, known for maximizing large real estate property values, came after evaluating previous offers through local broker McGraw Davisson Stewart, who will continue providing local services in collaboration with Keen-Summit.

Educational Development (NASDAQ: EDUC) reported financial results for Q3 FY2025 ended November 30, 2024, showing significant declines across key metrics. Net revenues dropped to $11.1 million from $16.9 million year-over-year, while the company recorded a net loss of $(0.8) million compared to net earnings of $2.0 million in the prior year. The average active PaperPie Brand Partners decreased to 12,400 from 16,400.

Year-to-date performance also showed substantial declines, with net revenues at $27.6 million compared to $42.1 million, and a net loss of $(3.9) million versus earnings of $2.2 million. The company has implemented several cost-reduction initiatives, including leasing 50% of office space, switching freight carriers for 20% cost savings, and consolidating warehouse operations. EDUC expects to complete a sale/leaseback of the Hilti Complex before March 31, 2025, which should eliminate all debt.

Educational Development (NASDAQ: EDUC) has announced its fiscal 2025 third quarter earnings call, scheduled for Monday, January 13, 2025, at 3:30 PM CT (4:30 PM ET). The presentation will feature CEO and President Craig White, Chief Sales and Marketing Officer Heather Cobb, and CFO and Secretary Dan O'Keefe. The call will include a live Q&A webcast, with phone lines available at (800) 717-1738 using Conference ID 64717. Audio replays will be accessible at www.edcpub.com/investors.

Educational Development (NASDAQ: EDUC) reported financial results for the fiscal second quarter ended August 31, 2024. The company experienced a significant decline in performance compared to the prior year. Net revenues decreased to $6.5 million from $10.6 million, while the average active PaperPie Brand Partners dropped to 13,900 from 18,100. The company reported a net loss of $(1.8) million, compared to a net profit of $1.1 million in the same quarter last year.

CEO Craig White highlighted ongoing cost reduction efforts, including leasing out 50% of office and warehouse space, switching outbound freight carriers, and consolidating warehouse operations. The company is also in the process of selling its Hilti Complex, which is expected to eliminate all borrowings. Despite the challenges, EDC remains committed to improving children's literacy and returning to profitability for shareholders.

Educational Development (NASDAQ: EDUC) has announced the execution of the Sixth Amendment to its Existing Credit Agreement with BOKF, NA. The amendment, effective October 3, 2024, extends the maturity date to January 4, 2025 and includes required step-downs on the Revolving Loan to $5.5 million by November 30, 2024.

The company also mentioned a previously announced Commercial Real Estate Contract with Partner Holdings for the sale of its Hilti Complex in Tulsa, Oklahoma, expected to be completed by January 4, 2025. CEO Craig White stated that the amendment provides continued borrowing capacity and aligns with the expected timeframe for closing the Hilti Complex sale.

The funds from the sale are anticipated to fully repay the borrowings under the Revolver and Term Loans. The company expects to operate with borrowings post-sale, potentially improving profitability and cashflow by eliminating debt and interest payments.

Educational Development (NASDAQ: EDUC) has announced a sale and leaseback agreement for its headquarters and warehouse facility in Tulsa, Oklahoma. The company has executed a Commercial Real Estate Contract with Partner Holdings to sell the Hilti Complex for $38,250,000, less fees and costs. The proceeds will be used to pay off outstanding loans. EDC will lease back its occupied space and assign the existing Hilti tenant lease to the buyer.

The sale excludes an adjacent 17-acre undeveloped land parcel. EDC will enter a 15-year triple-net lease for 218,200 square feet at $8.52 per square foot with 2.5% annual escalations. The company expects this move to improve its financial performance by reducing borrowings and generating positive cash flow. The deal includes a 75-day due diligence period and is set to close 30 days after.

Educational Development (NASDAQ: EDUC) has announced its fiscal 2025 second quarter earnings call, scheduled for Thursday, October 10, 2024, at 3:30 PM CT (4:30 PM ET). The call will include a live Q&A webcast featuring key executives:

• Craig White, Chief Executive Officer and President
• Heather Cobb, Chief Sales and Marketing Officer
• Dan O'Keefe, Chief Financial Officer and Secretary

These executives will present the company's second quarter results and be available for questions. Participants can join the call via phone at (800) 717-1738 using Conference ID 47709. Audio replays will be available after the event on the company's investor relations website.

Educational Development (NASDAQ: EDUC) has terminated its agreement with Rockford Holdings for the sale and leaseback of its Hilti Complex in Tulsa, Oklahoma. The decision was made after Rockford couldn't meet the original terms, and proposed changes were deemed not in the best interest of EDC's stakeholders. Despite this setback, EDC remains optimistic about finding a new buyer soon.

The company has updated its marketing materials to include recent lease changes, notably a new lease for approximately 25% of the office and warehouse space with Crusoe Energy Systems. CEO Craig White expressed confidence that these updates will positively impact the current list of interested parties in the Hilti Complex.