TULSA, Okla., Oct. 15, 2014 (GLOBE NEWSWIRE) -- Educational Development Corporation ("EDC") (Nasdaq:EDUC) (http://www.edcpub.com) today reported results for the fiscal second quarter and the six months ended August 31, 2014.
For the six months ended August 31, 2014, EDC reports net revenue of $13,986,500, a 19% increase of $2,280,900 when compared to $11,705,600 for the same period in the previous year and net earnings of $235,800 compared to $123,000. Earnings per share were $0.06 compared to $0.03 the previous year on a fully diluted basis.
The home business division, Usborne Books & More, has now recorded 16 consecutive months of revenue growth after nine years of decline. Net revenues for the first six month of fiscal year 2015 were up 30% over the same period in fiscal year 2014, and for this quarter sales are up 41% and the trend continued in September as sales were up 58% over September last year. Reflective of this net revenue gain, the number of sales associates joining our organization March-August has almost doubled at 2,300 as compared to 1,200 over the same period last year. Our number of active consultants is up 25% when comparing this quarter end to the prior year quarter end.
The publishing division, EDC Publishing, also had a strong start to the fiscal year, with net revenues up 8% at $6,024,000 for the six months ended August 31, compared to $5,564,400 for the prior fiscal year-to-date period. Industry wide statistics for bookstores reflect an 8% decline during the same period.
The net earnings for the quarter were negatively impacted by two separate non reoccurring charges, including additional marketing and promotion expense and recording a prior year's sales tax audit assessment, which resulted in a $164,000 pretax impact.
The Company has secured more favorable shipping rates which were effective October 1, 2014 which will significantly affect future earnings.
| EDUCATIONAL DEVELOPMENT CORPORATION | ||||
| CONDENSED STATEMENTS OF EARNINGS | ||||
| Three Months Ended August 31, | Six Months Ended August 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| NET REVENUES | $ 6,808,200 | $ 5,715,100 | $ 13,986,500 | $ 11,705,600 |
| EARNINGS BEFORE INCOME TAXES | 8,300 | 86,200 | 395,900 | 191,000 |
| INCOME TAXES | 12,200 | 29,800 | 160,100 | 68,000 |
| NET EARNINGS | $ (3,900) | $ 56,400 | $ 235,800 | $ 123,000 |
| BASIC AND DILUTED EARNINGS PER SHARE: | ||||
| Basic | $ (0.01) | $ 0.00 | $ 0.06 | $ 0.03 |
| Diluted | $ (0.01) | $ 0.00 | $ 0.06 | $ 0.03 |
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ||||
| Basic | 3,998,170 | 3,968,930 | 3,992,365 | 3,968,223 |
| Diluted | 3,998,170 | 3,968,930 | 3,992,365 | 3,968,223 |
About Educational Development Corporation
Educational Development Corporation sells children's books, including Usborne books and the Kane Miller line of international children's titles through a multi-level sales organization of independent consultants, through 5,000 retail stores and over the Internet. More than 1,600 different titles are available for children of all ages, with periodic new additions.