Business
Educational Development Corporation Announces Fiscal Fourth Quarter and Fiscal 2023 Results
Tulsa, Oklahoma--(Newsfile Corp. - May 11, 2023) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company
About this update from Educational Development Corporation
[{"type":"text","content":"Tulsa, Oklahoma--(Newsfile Corp. - May 11, 2023) - 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 fourth quarter and fiscal year ended February 28, 2023.\nYear-to-Date Summary Compared to the Prior Year\n\nNet revenues of $87.8 million, a decrease of $54.4 million, or 38.3%, compared to $142.2 million.\nAverage active PaperPie Brand Partners totaled 28,000 compared to 44,900.\nEarnings (loss) before income taxes were $(3.4) million, a decrease of $14.6 million, compared to $11.2 million.\nNet earnings (loss) totaled $(2.5) million, compared to $8.3 million, a decrease of $10.8 million, or 130.1%.\nEarnings (loss) per share totaled $(0.31), compared to $0.98, down 131.6% on a fully diluted basis.\n\nFourth Quarter Summary Compared to the Prior Year Fourth Quarter\n\nNet revenues were $15.0 million, a decrease of $8.3 million, or 35.6%, compared to $23.3 million.\nAverage active PaperPie Brand Partners totaled 26,100 compared to 37,500.\nEarnings (loss) before income taxes were $(2.6) million, a decrease of $2.9 million, compared to $0.3 million.\nNet earnings (loss) totaled $(1.9) million, compared to $0.3 million, a decrease of $2.2 million, or 733.3%.\nEarnings (loss) share totaled $(0.24), compared to $0.04, on a fully diluted basis.\n\n\"Our fourth quarter sales volumes continued to be negatively impacted by high inflation, particularly regarding high food and fuel costs which directly impact our primary customers, families with young children. Inflation has been a headwind for us all year and we expect this to continue into our fiscal 2024. Sales in the fourth quarter were also impacted by the one-time strategic rebranding of our direct sales division PaperPie, formerly known as Usborne Books & More (\"UBAM\"). With the incredible efforts of our sales and marketing teams, we announced our planned rebrand in June 2022 and published our rebrand the first week of January. This was a great accomplishment and encompasses a better representation of the growing diversity of our products. Following the rebrand and completion of our new PaperPie Resource Library, our Brand Partners (formerly referred to as \"consultants\") had to update their individual social media pages ...