Business
Educational Development Corporation Announces First Quarter Fiscal Year 2024 Results
Tulsa, Oklahoma--(Newsfile Corp. - July 13, 2023) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company") (http://www.edcpub.com) today
About this update from Educational Development Corporation
[{"type":"text","content":"Tulsa, Oklahoma--(Newsfile Corp. - July 13, 2023) - Educational Development Corporation (NASDAQ: EDUC) (\"EDC\", or the \"Company\") (http://www.edcpub.com) today reports financial results for the first quarter for fiscal year 2024.\nFirst Quarter Summary Compared to the Prior Year First Quarter\n\n\nNet revenues of $14.5 million, a decrease of $8.7 million, or 37.5%, compared to $23.2 million.\n\n\nAverage active PaperPie brand partners totaled 23,200 compared to 32,200.\n\n\nEarnings (loss) before income taxes were $(1.2) million, a decrease of $1.5 million compared to $0.3 million.\n\n\nNet earnings (loss) totaled $(0.9) million, compared to $0.2 million, a decrease of $1.1 million.\n\n\nEarnings (loss) per share totaled $(0.11), compared to $0.03, on a fully diluted basis.\n\n\nInventories - net decreased $8.3 million, from $70.6 million at May 31, 2022, compared to $62.3 million at May 31, 2023.\n\n\n\"Our first quarter sales volumes continued to be impacted by high inflation, which has been an ongoing headwind that we expect to continue throughout the remainder of fiscal 2024,\" stated Craig White, President and CEO of Educational Development Corporation. \"Although our active Brand Partners dropped below 25,000 in February, our Brand Partners at leadership levels remain higher than pre-pandemic numbers and they are the primary drivers for new recruiting and overall sales growth. We continue to make key changes to promote activity and growth with our Brand Partners including lowering our freight charges which we expect will increase the number of smaller orders from customers. These smaller order customers will increase the opportunities to engage new hosts and recruit new brand partners. We believe that spurring sales activity over the summer months, which is traditionally one of our slowest periods of the year, will translate into higher brand partner activity in the Fall, which is our busiest selling season.\"\n\"I remain encouraged by the sales potential for our newest product line SmartLab Toys, as well as the addition of My First Wrap-Ups to our Learning Wrap-Ups product line. Our gross sales of SmartLab Toys in the first quarter, which included only the first thirteen toys released, totaled approximately $1.4 million. We have an additional twenty-five SmartLab Toys and ten new My First Wrap-Ups products scheduled to...