Core Points - Educational Development Corporation (EDC) has announced a revised date and time for its Fiscal Year 2025 earnings call [1][2] - The earnings call will take place on May 19, 2025, at 3:30 PM CT (4:30 PM ET) and will include a live Q&A session [2] - Key executives, including the CEO, Chief Sales and Marketing Officer, and Chief Financial Officer, will present the year-end results and answer questions [2] Company Overview - EDC specializes in publishing children's books and is the owner of Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [3] - The company is also the exclusive U.S. distributor of Usborne Publishing Limited's children's books [3] - EDC products are sold through 4,000 retail outlets and via independent brand partners through various sales channels, including social media and book fairs [3]

Group 1 - Educational Development Corporation has executed the Eighth Amendment to its Existing Credit Agreement with BOKF, NA, extending the maturity date on the Revolving Loan to July 11, 2025, and requiring step downs to $4.5 million by May 31, 2025 [1] - The maturity dates of two term loans have also been extended to September 19, 2025, providing additional time for the company to manage its financial obligations [1] - The company has paid down over $3.0 million in bank debt and reduced payables by $2.0 million, strengthening its balance sheet during the marketing process of the Hilti Complex [2] Group 2 - The engagement of Keen-Summit as the new real estate broker for the Hilti Complex has been announced, with marketing materials completed and the property re-listed for sale [2] - The funds from the sale of the Hilti Complex are expected to completely pay off the borrowings under the Revolver and Term Loans, allowing the company to operate with limited borrowings post-sale [2] - Eliminating debt and interest payments from the sale of the Hilti Complex is anticipated to positively impact the company's profitability and cash flow [2] Group 3 - Educational Development Corporation specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [3] - The company is the exclusive U.S. MLM distributor of Usborne Publishing Limited children's books, with products sold through 4,000 retail outlets and independent brand partners [3]

Group 1: Company Overview - Educational Development Corporation (EDC) is a publishing company specializing in children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [3] - EDC is the exclusive U.S. distributor of Usborne Publishing Limited children's books, with products sold through 4,000 retail outlets and independent brand partners [3] Group 2: Recent Developments - EDC has executed a new brokerage agreement with Keen-Summit Capital Partners for marketing the sale of the Hilti Complex, which includes headquarters and distribution warehouse in Tulsa, Oklahoma [1] - The Hilti Complex consists of 402,000 square feet of rentable office and warehouse space on 35 acres, currently occupied by EDC and two tenants, Hilti and Crusoe [2] - The company aims to maximize the value of the Hilti Complex by engaging Keen-Summit, which has a broader network and a successful track record in real estate [2] Group 3: Future Plans - EDC expects to complete the listing and sale of the Hilti Complex within the calendar year while continuing to work with local broker McGraw Davisson Stewart [2] - The company plans to execute a new multi-year lease agreement for the space it occupies after the sale of the Hilti Complex [2] Group 4: Keen-Summit Capital Partners - Keen-Summit is a nationally recognized real estate broker with over 40 years of experience in maximizing real estate value across North America [4] - The firm offers additional services in lease restructuring and investment banking [4]

Financial Data and Key Metrics Changes - For Q3 2025, net revenues decreased to $11.1 million from $16.9 million in Q3 2024, representing a decline of approximately 34.4% [10] - Loss before income taxes was $1.1 million compared to a profit of $2.7 million in the same quarter last year [11] - Net loss for the quarter was $800,000, down from a net income of $2 million in Q3 2024, resulting in a loss per share of $0.10 compared to earnings per share of $0.24 [11] - Year-to-date net revenues totaled $27.6 million, down from $42.1 million in the prior year [12] Business Line Data and Key Metrics Changes - Average active brand partners decreased to 12,400 from 16,400 year-over-year [10] - Year-to-date average active brand partners were 19,200, down from the previous year [12] Market Data and Key Metrics Changes - The company reported a significant decrease in net inventories, which fell by $8.8 million from $55.6 million to $46.8 million [13] Company Strategy and Development Direction - The company is focusing on operational improvements and cost efficiencies while intentionally offering discounts to boost sales and convert excess inventory into cash [8] - A sale-leaseback of the headquarters is in progress, with expectations to complete the transaction by early March 2025, which will help pay down bank debt and improve cash flow [21][23] - The company plans to return to historical promotions and pricing after the sale, which is expected to positively impact cash flow and margins [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced, including inflation and the relationship with Usborne, but expressed confidence in the company's ability to emerge stronger post-sale of the building [25][59] - The management believes that the sale of the building will serve as a catalyst for a turnaround in business operations and sales performance [60] Other Important Information - The company introduced a shipping subscription program aimed at enhancing customer relationships and driving revenue [16] - The Black Friday promotion was expanded, generating positive sales performance [17] - The company is preparing for five StoryMaker Summits in 2025 to engage brand partners in a more intimate setting [18] Q&A Session Summary Question: Are there any new markets being considered? - Management indicated they are always looking for new markets but highlighted the success of SmartLab Toys as a new market initiative [32] Question: Update on IT implementation and digital extensions? - Management discussed successful IT projects, including e-commerce enhancements and a new shipping subscription program [34] Question: Clarification on the building sale timeline? - Management explained the timeline for the building sale and the reasons for delays, confirming the sale price remains at $38.3 million [46][51] Question: Consideration of strategic alternatives beyond selling the building? - Management stated that exploring other options would be premature until the building sale is finalized, emphasizing the importance of resolving current debt issues first [57] Question: Insights on the decrease in brand partners? - Management noted that the decrease is influenced by economic headwinds and a wait-and-see attitude among brand partners, but expressed optimism for future recovery [66][68]

Financial Performance - Net revenues for the three months ended November 30, 2024, decreased by $5.9 million, or 37.6%, to $9.8 million compared to $15.7 million in the same period last year [97]. - Gross margin for the three months ended November 30, 2024, decreased by $4.2 million, or 40.4%, to $6.2 million, with gross margin as a percentage of net revenues dropping to 62.9% from 66.3% [99]. - Net earnings for the three months ended November 30, 2024, resulted in a loss of $835,700 compared to a profit of $1,972,100 in the same period last year [87]. - Operating income for the PaperPie segment decreased by $0.6 million, or 37.5%, to $1.0 million during the three months ended November 30, 2024 [102]. - Operating income of the PaperPie segment decreased by $2.3 million, or 63.9%, to $1.3 million during the nine months ended November 30, 2024, with operating income as a percentage of net revenues dropping to 5.5% from 9.7% [106]. - Publishing division's net revenues decreased by $1.0 million, or 22.7%, to $3.4 million during the nine-month period ended November 30, 2024, primarily due to the stoppage of Usborne product distribution [111]. Operating Expenses - Total operating expenses for the three months ended November 30, 2024, decreased by $3.7 million, or 42.0%, to $5.1 million compared to $8.8 million in the same quarter last year [101]. - Total operating expenses decreased by $7.7 million, or 36.2%, to $13.6 million for the nine-month period ended November 30, 2024, compared to $21.3 million for the same period last year [105]. - Total operating expenses not associated with a reporting segment decreased by $0.3 million, or 10.3%, to $2.6 million for the three months ended November 30, 2024 [88]. - Total operating expenses of the Publishing segment decreased by $0.2 million, or 15.4%, to $1.1 million during the nine-month period ended November 30, 2024 [113]. Income and Tax - Other income decreased by $3.7 million, or 84.1%, to $0.7 million for the three months ended November 30, 2024, primarily due to the absence of the previous year's sale of the old headquarters building [90]. - Income tax benefit for the three months ended November 30, 2024, was $276,200, compared to a tax expense of $723,900 in the same period last year [91]. Cash Flow and Financing - Cash inflows from operations during the first nine months of fiscal year 2025 were $4,778,300, despite a net loss of $3,918,100 [116]. - Cash used in financing activities was $2,532,300, including net payments on the line of credit of $1,200,000 and payments on term debt of $1,350,000 [117]. - Available credit under the current $5,500,000 revolving line of credit was approximately $1,201,900 at November 30, 2024 [128]. - The Company executed multiple amendments to its Loan Agreement, including a reduction in the revolving commitment from $15,000,000 to $4,000,000 by January 31, 2024 [123]. - Total current maturities of term debt for the fiscal year ending February 28, 2025, amount to $450,000, with a total of $27,250,900 due by 2028 [129]. Inventory and Reserves - The company has estimated a reserve for sales returns of $0.2 million as of November 30, 2024, and February 29, 2024 [138]. - Noncurrent inventory balances were $15.5 million and $12.3 million as of November 30, 2024, and February 29, 2024, respectively, with valuation allowances of $0.8 million and $0.6 million [141]. - Management has estimated a valuation allowance for inventory, including reserves for consigned inventory, of $1.2 million as of November 30, 2024 [143]. - Approximately 11.7% of active Brand Partners maintained consignment inventory at the end of the third quarter of fiscal year 2025, with total consignment inventory costs of $1.5 million [142]. - An allowance for credit losses of $0.1 million was estimated for both November 30, 2024, and February 29, 2024 [139]. Management Plans and Strategies - The Company expects to reduce excess inventory levels and use cash proceeds to offset future operating losses and pay down debt [118]. - Management plans to reduce debt by selling owned real estate, with proceeds expected to pay off Term Loans and the Revolving Loan [131]. - The company aims to build the active PaperPie Brand Partners to pre-pandemic levels to alleviate concerns about continuing as a going concern [131]. - The effective interest rate for the Revolving Loan was 10.17% as of November 30, 2024 [131].

Financial Performance - Net revenues for the third quarter were $11.1 million, down 34.3% from $16.9 million in the prior year[4] - Loss before income taxes was $(1.1) million compared to a gain of $2.7 million in the same quarter last year[4] - Net loss totaled $(0.8) million, a decline from a net gain of $2.0 million in the prior year[4] - Year-to-date net revenues were $27.6 million, down 34.5% from $42.1 million[4] - Loss before income taxes for the year-to-date period was $(5.3) million compared to a gain of $2.9 million last year[4] Operational Metrics - Average active PaperPie Brand Partners decreased to 12,400 from 16,400 year-over-year[4] - Average active PaperPie Brand Partners for the year-to-date period decreased to 13,300 from 19,200[4] Strategic Actions - The company executed a Purchase Sale Agreement for the Hilti Complex, expected to eliminate bank borrowings and achieve full debt repayment by March 31, 2025[3] - The company has reduced outbound freight costs by approximately 20% through a new carrier[3] Tax Credits - An Employee Retention Tax Credit of $3.8 million was received in the previous year, impacting financial results positively[3]

Educational Development Corporation Announces Fiscal 2025 Third Quarter ResultsJanuary 13, 2025 4:00 PM EST | Source: Educational Development CorporationTulsa, Oklahoma--(Newsfile Corp. - January 13, 2025) - 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 third quarter ended November 30, 2024.Third Quarter Summary Compared to the Prior Y ...

Educational Development Corporation Announces Fiscal 2025 Third Quarter Earnings CallDecember 12, 2024 4:00 PM EST | Source: Educational Development CorporationTulsa, Oklahoma--(Newsfile Corp. - December 12, 2024) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company") (http://www.edcpub.com) today announces the time and date of their fiscal 2025 third quarter earnings call.EDC will host its Fiscal Year 2025 Third Quarter Earnings Call, including a live Q&A webcast, on M ...

Educational Development Corporation (NASDAQ:EDUC) Q2 2025 Earnings Conference Call October 10, 2024 4:30 PM ET Company Participants Steven Hooser - Investor Relations Craig White - President and Chief Executive Officer Dan O'Keefe - Chief Financial Officer and Secretary Heather Cobb - Chief Sales and Marketing Officer Conference Call Participants Paul Carter - Capstone Asset Management Operator Good afternoon, ladies and gentlemen, and welcome to the Educational Development Corporation's Second Quarter Fisc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2024 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-04957 EDUCATIONAL DEVELOPMENT CORPORATION | --- | --- | |----------------------------------------------------------------------|-- ...