Education Development Corporation Announces Second Quarter and Year-To-Date Results for Fiscal 2022

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Tulsa, Oklahoma – (Newsfile Corp. – October 7, 2021) – Educational Development Corporation (NASDAQ: EDUC) (“EDC”, or the “Company”) (http://www.edcpub.com) today releases financial results for the second quarter and the fiscal year ended August 31, 2021.

Pre-COVID comparison, impacted by COVID and current year

“Due to the pandemic, 2020 has been a very unusual year for all businesses. Ours was no exception. Fortunately, we saw an increase in demand for our products, and we were ready and ready to seize the opportunity. This demand anomaly has resulted in record sales and profits, ”said Craig White, President and CEO of Educational Development Corporation.

“This year, as pandemic restrictions have eased, we have had a more typical second quarter. Historically, our second quarter has been one of our weakest quarters of the year due to the seasonal nature of our business. During the second quarter of last year we saw a significant increase in demand for our educational products as parents overcome travel restrictions related to the COVID-19 pandemic as well as education in residence “,

“Due to the significant positive impact of the COVID-19 pandemic on our business last year, we are providing the additional table below to show the pre-COVID, COVID-impacted and current financial results for the second quarter. fiscal and since the beginning of the year. results ended August 31: “

Pre-COVID Pre-COVID COVID impacted COVID impacted Current year Current year
Period Q2 FY 2020 Year-to-date for fiscal year 2020 Q2 FISCAL YEAR 2021 Year-to-date for fiscal year 2021 Q2 FISCAL YEAR 2022 Year-to-date for fiscal year 2022
Average number of consultants 33,600 32,600 45,400 39,300 46,100 50,200
Net income 24,438,000 52,025,400 59 250 100 97 541 800 32 994 400 73 802 300
Net profit 1,007,600 2,371,200 4,255,000 6 186 100 1,898,200 5 336 300
Profit after tax% 4.1% 4.6% 7.2% 6.3% 5.8% 7.2%

“Sales from our UBAM division continue to be driven by our number of active consultants. This quarter, the Company had more active consultants, which resulted in an increase in revenue over fiscal 2020 results. Compared to the year prior to COVID-19, UBAM revenue for our fiscal second quarter was 35.8% higher than that of the second quarter of fiscal 2020, and UBAM’s cumulative revenues were 42.9% higher than the cumulative revenues of fiscal 2020. This growth, compared to l ‘Fiscal year 2020 clearly demonstrates the continued success in generating sales for our consultant sales force. The company expects this trend to continue in the third quarter. “

“Sales in our Publishing division continued to rebound in the second quarter, with sales increasing $ 1.2 million, or 52.2%, from sales in the second quarter of last year. The Publishing division’s sales in the second quarter of last year were affected by store closings associated with the COVID-19 pandemic. “

“In the second quarter, we generated $ 2.7 million in pre-tax profits, or approximately 8.1% of net revenues. This high level of profit is the result of our consistent business model, our focus on cost containment and last year’s restructuring of our outbound freight program. results will continue for the remainder of the year and beyond, ”concluded Mr. White.

Once again, the Board of Directors has approved a quarterly cash dividend of $ 0.10 per share, which will be paid on or about December 9, 2021 to shareholders of record on November 18, 2021.

Highlights since the start of the year compared to the previous year

  • Net revenue of $ 73.8 million, a decrease of $ 23.7 million, or 24.3%, from $ 97.5 million.
  • The average number of active UBAM business advisers was 50,200.
  • Earnings before income taxes were $ 7.3 million, a decrease of $ 1.1 million, or 13.1%, from $ 8.4 million.
  • Net income totaled $ 5.3 million, compared to $ 6.2 million, a decrease of $ 0.9 million, or 14.5%.
  • Earnings per share totaled $ 0.63, compared to $ 0.74, down 14.9% on a fully diluted basis.

Net revenue of $ 73.8 million, a decrease of $ 23.7 million, or 24.3%, from $ 97.5 million.

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The average active UBAM sales advisor was 50,200.

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Earnings before income taxes were $ 7.3 million, a decrease of $ 1.1 million, or 13.1%, from $ 8.4 million.

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Net income totaled $ 5.3 million, compared to $ 6.2 million, a decrease of $ 0.9 million, or 14.5%.

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Earnings per share totaled $ 0.63, compared to $ 0.74, down 14.9% on a fully diluted basis.

Highlights of the second quarter compared to the previous year Second quarter

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Net revenue of $ 33.0 million, a decrease of $ 26.3 million, or 44.4%, from $ 59.3 million.

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The average active UBAM sales advisor was 46,100.

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Earnings before income taxes were $ 2.7 million, a decrease of $ 3.1 million, or 53.4%, from $ 5.8 million.

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Net income totaled $ 1.9 million, compared to $ 4.3 million, a decrease of $ 2.4 million, or 55.8%.

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Earnings per share totaled $ 0.23, compared to $ 0.51, down 54.9% on a fully diluted basis.

EDUCATIONAL DEVELOPMENT SOCIETY
CONDENSED INCOME STATEMENTS (UNAUDITED)
Three months ended
August 31
Six months ended
August 31
2021 2020 2021 2020
NET REVENUES $ 32 944 400 $ 59 250 100 $ 73 802 300 $ 97 541 800
PROFIT BEFORE INCOME TAX 2,658,100 5,799,500 7 318 700 8,443,400
INCOME TAXES 759,900 1,544,500 1 982 400 2 257 300
NET PROFIT $ 1,898,200 $ 4,255,000 $ 5 336 300 $ 6 186 100
BASIC AND DILUTED BENEFITS
PER SHARE:
Basic $ 0.24 $ 0.51 $ 0.66 $ 0.74
Diluted $ 0.23 $ 0.51 $ 0.63 $ 0.74
DIVIDENDS PER SHARE $ 0.10 $ 0.06 $ 0.20 $ 0.12
WEIGHTED AVERAGE NUMBER OF
ORDINARY AND EQUIVALENT SHARES
EXCEPTIONAL:
Basic 8,028,594 8 354 214 8,028,929 8 353 319
Diluted 8,435,348 8 354 214 8 458 664 8 353 319

EDC will host its Fiscal 2022 second quarter results conference call, including a live Q&A webcast, on Thursday, October 7, 2021 at 3:00 p.m. CST (4:00 p.m. 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 of the Board, will present the Company’s second quarter results and will be available for any questions after the presentation. Telephone lines for participants will be available at (855) 639-3876. The conference ID is 7783245. Audio replays will be available after the event at www.edcpub.com/investors.

About the Educational Development Corporation (EDC)

EDC is a publishing house specializing in children’s books. EDC is the exclusive commercial co-publisher in the United States of the range of children’s educational books produced in the United Kingdom by Usborne Publishing Limited (“Usborne”) and we also publish books exclusively through our Kane Miller Book Publisher property. (“Kane Miller”); two international publishers of award-winning children’s books. EDC’s current catalog contains over 2,000 titles, with new additions semi-annually. Usborne and Kane Miller products are sold through 4,000 outlets and independent consultants, who organize book shows in individual homes, through social media, book fairs with school and public libraries, direct sales and on the Internet.

Contact:

Educational Development Corporation
Craig White, (918) 622-4522

Investor Relations:
Three Part Consultants, LLC
Steven Hooser, (214) 872-2710

Warning for the purposes of Safe harbor Provision of the 1995 law on the reform of private title litigation.

The information presented in this press release includes “forward-looking statements”. These forward-looking statements are identified by the use of terms and expressions such as “may”, “expect”, “estimate”, “plan”, “plan”, “believe”, “intend to” , “Achievable”, “anticipate,” “continue”, “potential”, “should”, “could”, and similar terms and expressions. While we believe that the expectations reflected in these forward-looking statements are reasonable, they imply certain assumptions, risks and uncertainties and we can not guarantee that these expectations or assumptions will be realized. Known and unknown risks, uncertainties and other factors could cause our actual results, performances or achievements to be materially different from the results, performances or or future achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, without limitation, our success in recruiting and l a retention of new consultants, our ability to locate and procure desired books, our ability to ship the volume of orders received without creating delays, our ability to secure adequate funding for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, the COVID-19 pandemic, as well as the factors discussed in our annual report on Form 10-K for the fiscal year ended February 28, 2021, all of which are difficult to assess. provide. In light of these risks, uncertainties and assumptions, the forward-looking events mentioned may not occur. All forward-looking statements attributable to us or to 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 fiscal year ended February 28. 2021 and are only valid as of the date of this press release. Except as required by securities laws, we assume no obligation to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, of changes in expectations or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/98886


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