Business
Educational Development Corporation Announces Recent Sales Growth and Repayment of Loan
TULSA, Okla., May 12, 2020 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC) (http://www.edcpub.com) today
About this update from Educational Development Corporation
[{"type":"text","content":"TULSA, Okla., May 12, 2020 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC) (http://www.edcpub.com) today reports significant revenue growth in April from UBAM division and the repayment of the $1.4M loan drawn pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.\n Randall White, CEO of Educational Development Corporation, announced the Company has had significant sales growth in UBAM and repaid the PPP loan. Per Mr. White, “During March 2020, our Company’s net revenues were down 25% from the same month last year, our warehouse operations and staff were working less than full-time, sales to retail outlets were down 60% and our facility’s leasing tenant, whose monthly payment exceeds our mortgage payment, had requested a 90 day lease payment abatement. The impact of these events, along with the uncertainty of future sales volumes, supported our decision to request a loan under the recently announced Paycheck Protection Program.” “However, during April our net revenues rebounded significantly in our direct sales division Usborne Books & More. Our UBAM consultants offer our entire catalog, including award winning books, puzzles and activities to customers. These products have been in increased demand due to the closing of many schools which increased the need for educational materials in homes. Our ability to receive orders online and deliver directly to our customers’ homes has resulted in increased revenues. The April net revenues of our UBAM division exceeded 160% of our net revenues in April of last year, and we are continuing to see increased sales this month. In addition, our number of active sales consultants has increased to over 34,000 as 5,000 new consultants joined in April and over 1,200 have joined so far in May. We expect these new consultants, along with the success of our existing consultants, will continue to have a positive impact on net revenues this year.” Mr. White continued “Because of the recent significant revenue growth, we have determined that the loan received under the Paycheck Protection Program is no longer needed and we have repaid it.” Mr. White concluded, “While our Publishing division continues to struggle this quarter as most retail stores have been temporarily impacted, the supportin...