Educational Development Corp (EDUC) SEC Filing 10-K Annual report for the fiscal year ending Thursday, February 28, 2019

Educational Development Corp

CIK: 31667 Ticker: EDUC


Educational Development Corporation Announces Fiscal Fourth Quarter and Fiscal 2019 Results

TULSA, Okla., May 28, 2019 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC) ( today reports record net revenues and earnings per share results for the fiscal year ended February 28, 2019.   

Randall White, CEO of Educational Development Corporation, announced that for the fiscal year 2019, the Company reports record net revenues of $118,811,300, an increase of $6,826,700, or 6.1%, when compared to $111,984,600 for the previous year.  Fiscal 2019 net earnings totaled $6,678,400, compared to $5,214,700 in fiscal 2018, an increase of 28.1%.   Fiscal year 2019 earnings per share were $0.81 compared to $0.64 the previous year, up 26.6% on a fully diluted basis.

The direct sales division, Usborne Books & More (“UBAM”), continued to have strong growth this year driven by the success and growth of our active sales consultants and improvements and expansion of our product lines. Net revenues in this division increased by 4.5% from $103,717,100 in fiscal year 2018 to $108,381,300 in fiscal year 2019.  The average number of active direct sales consultants also increased to 32,000 for the fiscal year 2019, an increase of 3.6% over the average number of active consultants for the fiscal year 2018. 

The Publishing division’s net revenues increased $2,162,500, or 26.2%, from $8,267,500 in fiscal 2018 to $10,430,000 in fiscal 2019.   Publishing experienced an increase in net revenues due primarily to an increase in sales order volumes with our largest retail customers derived from new in-store promotions that did not occur in the prior fiscal year.

For the fiscal fourth quarter ended February 28, 2019, the Company reports net revenues of $23,625,400, an increase of $1,678,800, or 7.6%, when compared to $21,946,600 for the fiscal fourth quarter of the previous year.  Earnings before income taxes were $845,200, an increase of $110,200, or 15%, over $735,000 for the fiscal fourth quarter 2018.  Net earnings totaled $555,500 for fiscal fourth quarter 2019, compared to $824,100 for the fiscal fourth quarter 2018, a decrease of 32.6%. The decrease in net earnings between the common quarters resulted from the impact of enacting the Tax Cuts and Jobs Act of 2017 (“Tax Act”), effective December 22, 2017.  Implementation of Tax Act resulted in the Company recognizing a net tax credit during the fiscal fourth quarter of the previous fiscal year.  Earnings per share for the fiscal fourth quarter were $0.07 compared to $0.10 for the same fiscal quarter in the previous year, down 30.0% on a fully diluted basis.       

Our direct sales division, Usborne Books & More (“UBAM”), continues to be the largest operating segment of the Company.  Net revenues of this division for the fiscal fourth quarter 2019 were $21,268,400, an increase of 5.2%, from $20,217,800 reported in the fiscal fourth quarter 2018. 

Our Publishing’s division net revenues for the fiscal fourth quarter 2019 were $2,357,000, an increase of $628,200, or 36.3% from the revenues reported in the fiscal fourth quarter of last year totaling $1,728,800. 

Per Mr. White, “I am pleased to announce our increased net revenues in our fiscal fourth quarter and record net revenues in our fiscal year 2019.   During this fiscal quarter we saw increased sales activity from our active consultants and also experienced an increase in Publishing sales resulting primarily from a successful promotion with our largest retail customer.” 

Mr. White continued, “The growth in the active consultant count of our UBAM division has been challenged over the past few quarters, as have other party-plan companies within the Direct Selling Industry, due to increased competition for recruiting new consultants.  Today there is more competition for part time, non-traditional employment within the market due to several new market entrants.  Our growth, in this period of increased recruiting competition, shows the strength of our sales force, the value and quality of our product lines and the improved shipment execution of our operations department.  We expect this increased competition to continue and are actively addressing it.”

Per Mr. White, “We are also reporting increased pre-tax profits for the quarter.  These improved profits result from increased volumes and operational improvements.”

Mr. White concluded, “Our Board has approved the continued payment of dividends this quarter and authorized a $0.05 per share cash dividend which will be paid on or around June 20, 2019 to shareholders of record June 4, 2019.”

 Three Months Ended February 28,  Twelve Months Ended February 28,
NET REVENUES 23,625,400  21,946,600  118,811,300  111,984,600
EARNINGS BEFORE INCOME TAXES 845,200  735,000  9,180,800  7,832,700
INCOME TAXES 289,700  (89,100)  2,502,400  2,618,000
NET EARNINGS$555,500 $824,100 $6,678,400 $5,214,700
PER SHARE:           
Basic$0.08 $0.10 $0.82 $0.64
Diluted$0.07 $0.10 $0.81 $0.64
DIVIDENDS DECLARED PER SHARE$0.05 $0.00 $0.20 $0.00

EDC will host its annual results Investor Call including a live Q&A webcast on Tuesday, June 4, 2019, at 3:00 PM CT (4:00 PM ET).  Randall White, the Company’s CEO and President, Craig White, Chief Operating Officer, Heather Cobb, Chief Sales and Marketing Officer and Dan O’Keefe, CFO and Secretary, will present the annual results and be available for questions following the presentation.  Phone lines for participants will be available at (844) 395-9253. International callers can use (478) 219-0506.  The conference passcode is 4419867.

The weblink to the call is: The link to the webcast, including replays will be available following the event at

About Educational Development Corporation (EDC)

EDC is a publishing company specializing in books for children.  EDC is the exclusive United States trade co-publisher of the line of educational children’s books produced in the United Kingdom by Usborne Publishing Limited (“Usborne”) and we also exclusively publish books through our ownership of Kane Miller Book Publisher (“Kane Miller”); both international award-winning publishers of children’s books.  EDC’s current catalog contains over 2,000 titles, with new additions semi-annually.  Both Usborne and Kane Miller products are sold via 4,000 retail outlets and by independent consultants, who hold book showings in individual homes, through social media, book fairs with school and public libraries, direct and internet sales. 

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

Cautionary Statement for the Purpose of the “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995.

The information discussed in this Press Release includes “forward-looking statements.” These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “continue,” “potential,” “should,” “could,” and similar terms and phrases.  Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved.  Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new consultants, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing  for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2019, all of which are difficult to predict.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur.  All forward-looking statements attributable to us or 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 year ended February 28, 2018 and speak only as of the date of this Press Release.  Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.


The following information was filed by Educational Development Corp (EDUC) on Tuesday, May 28, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Educational Development Corp's 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Balance Sheets
Balance Sheets (Parentheticals)
Statements Of Cash Flows
Statements Of Earnings
Statements Of Shareholders' Equity
Statements Of Shareholders' Equity (Parentheticals)
1. Summary Of Significant Accounting Policies (Details) - Schedule Of Diluted Earnings Per Share
1. Summary Of Significant Accounting Policies (Details) - Schedule Of Property, Plant And Equipment
1. Summary Of Significant Accounting Policies
1. Summary Of Significant Accounting Policies (Details)
1. Summary Of Significant Accounting Policies (Tables)
10. Stock Repurchase Plan
10. Stock Repurchase Plan (Details)
11. Revenue Recognition (Details) - Schedule Of New Accounting Pronouncements And Changes In Accounting Principles
11. Revenue Recognition
11. Revenue Recognition (Tables)
12. Quarterly Results Of Operations (Unaudited) (Details) - Schedule Of Quarterly Financial Information
12. Quarterly Results Of Operations (Unaudited)
12. Quarterly Results Of Operations (Unaudited) (Tables)
13. Business Segments (Details) - Schedule Of Information By Industry Segment
13. Business Segments
13. Business Segments (Details)
13. Business Segments (Tables)
14. Fair Value Measurements
14. Fair Value Measurements (Details)
15. Deferred Revenues
15. Deferred Revenues (Details)
16. Subsequent Event
16. Subsequent Event (Details)
2. Inventories (Details) - Schedule Of Inventory, Noncurrent
2. Inventories
2. Inventories (Tables)
3. Property, Plant And Equipment (Details) - Schedule Of Property, Plant And Equipment
3. Property, Plant And Equipment
3. Property, Plant And Equipment (Tables)
4. Other Current Liabilities (Details) - Schedule Of Other Current Liabilities
4. Other Current Liabilities
4. Other Current Liabilities (Tables)
5. Income Taxes (Details) - Schedule Of Components Of Income Tax Expense (Benefit)
5. Income Taxes (Details) - Schedule Of Deferred Tax Assets And Liabilities
5. Income Taxes (Details) - Schedule Of Effective Income Tax Rate Reconciliation
5. Income Taxes
5. Income Taxes (Details)
5. Income Taxes (Tables)
6. Employee Benefit Plan
6. Employee Benefit Plan (Details)
7. Commitments
7. Commitments (Details)
7. Commitments (Details) - Schedule Of Future Minimum Rental Payments For Operating Leases
7. Commitments (Tables)
8. Debt (Details) - Schedule Of Debt
8. Debt (Details) - Schedule Of Long-Term Debt Instruments
8. Debt (Details) - Schedule Of Maturities Of Long-Term Debt
8. Debt
8. Debt (Details)
8. Debt (Tables)
9. Stock-Based Compensation (Details) - Schedule Of Stock Option Activity
9. Stock-Based Compensation (Details) - Share-Based Payment Arrangement, Cost By Plan
9. Stock-Based Compensation
9. Stock-Based Compensation (Details)
9. Stock-Based Compensation (Tables)
Accounting Policies, By Policy (Policies)
Ticker: EDUC
CIK: 31667
Form Type: 10-K Annual Report
Accession Number: 0001185185-19-000818
Submitted to the SEC: Wed May 29 2019 11:58:03 AM EST
Accepted by the SEC: Wed May 29 2019
Period: Thursday, February 28, 2019
Industry: Wholesale Miscellaneous Nondurable Goods

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