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 May 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------|---------------------------------------------------| | For the transition period | to . | | Commission | file number: ...

Financial Data and Key Metrics Changes - For fiscal year 2022, net revenues totaled $142.2 million, a decrease of $62.4 million or 30.5% compared to $204.6 million in fiscal 2021 [6] - Earnings before income taxes for fiscal year 2022 were $11.2 million, down $6 million or 34.9% from $17.2 million in fiscal 2021 [6] - Net earnings decreased to $8.3 million from $12.6 million, a decline of 34.1% [6] - Earnings per share on a fully diluted basis were $0.98, down 34.7% from $1.50 [7] Business Line Data and Key Metrics Changes - Publishing Division sales increased to $2.9 million in Q4 and $13.3 million for the year, representing a growth of $4.6 million or 53.6% over fiscal 2021 [11] - UBAM sales declined by 35% to $17.6 million in Q4, primarily due to the return to normalcy post-pandemic [13] - Active consultant count averaged 37,500 in Q4, which is 19% higher than the same quarter in fiscal 2020 [14] Market Data and Key Metrics Changes - The company ended fiscal year 2022 with approximately $73 million in inventory, expected to peak and normalize over the next three quarters [8] - The company has experienced headwinds against UBAM sales due to inflation impacting consumer spending [20][33] Company Strategy and Development Direction - The company has temporarily suspended its dividend to protect its balance sheet amid high inventory levels, with plans to reinstate dividends once inventory normalizes [4] - New technology-based tools and an online training platform have been introduced to support consultants in reaching new customers [15] - The company is optimistic about rebounding sales from channels negatively impacted by the pandemic, such as school book fairs [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic pressures, including inflation and rising fuel prices, which are affecting consumer spending on discretionary items like children's books [31][33] - The company remains committed to profitability and expects to turn inventory into cash, which will help in reducing debt levels [29][66] Other Important Information - The company increased its working capital line from $20 million to $25 million to strengthen its balance sheet [7] - Management emphasizes the importance of communication and culture within the company during the transition of leadership [39] Q&A Session All Questions and Answers Question: Concerns about the timing of the conference call - An analyst expressed dissatisfaction with the timing of the conference call being 24 hours after the earnings report [22] Question: Inventory levels and sales comparison - An analyst inquired about the excess inventory levels and their implications for cash flow [23] - Management estimated excess inventory to be around $15 million to $20 million [23] Question: Dividend reinstatement conditions - An analyst asked about the conditions under which the dividend might be reinstated [28] - Management indicated that a reduction in working capital line to between $10 million to $15 million could lead to reinstatement [29] Question: Future earnings expectations - An analyst questioned whether the company expects revenues to exceed last year [30] - Management acknowledged the uncertainty due to economic pressures but expressed hope for revenue growth [31] Question: Impact of inflation on pricing - An analyst asked about potential price increases due to inflation [41] - Management indicated that while some price increases may be necessary, there would be no wholesale changes [42] Question: Share count changes - An analyst noted a decrease in share count and inquired about the reasons [45] - Management clarified that there have been no significant share buybacks or changes outside of the long-term incentive plan [46] Question: Solvency concerns - An analyst raised concerns about the impact of declining consultants on the company's solvency [63] - Management reassured that the company remains profitable and has no concerns about solvency [66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . | --- | --- | --- | |--------------------------------------------------------------------------------------|---------------------------------------------------- ...

Educational Development Corporation (NASDAQ:EDUC) Q3 2022 Results Conference Call January 6, 2022 4:30 PM ET Company Participants Craig White - President, CEO Dan O'Keefe - CFO Heather Cobb - Chief Sales & Marketing Officer Conference Call Participants David Wright - Henry Investment Randy Freed - RL Capital Operator Thank you for joining the Educational Development Corporation's Third Quarter Earnings Call. Before beginning the call, we would like to remind you that some of the statements made today will b ...

Revenue Performance - The Company did not experience a decrease in net revenues during fiscal year 2021, and year-to-date results for fiscal 2022 are more normalized[17]. - Total net revenues for the three months ended November 30, 2021, were $45,112,300, a decline of 32.5% from $66,750,300 in the same period of 2020[56]. - The UBAM segment reported net revenues of $41,397,800 for the three months ended November 30, 2021, down 35.4% from $64,169,700 in the prior year[56]. - Net revenues for the three months ended November 30, 2021, decreased by $22.8 million, or 35.5%, to $41.4 million compared to $64.2 million in the same period last year[81]. - Net revenues for the nine months ended November 30, 2021, decreased by $49.5 million, or 31.3%, to $108.5 million compared to $158.0 million in the same period last year[85]. - The Publishing segment reported net revenues of $3,714,500 for the three months ended November 30, 2021, an increase of 43.9% from $2,580,600 in the prior year[56]. - Publishing division's net revenues increased by $4.1 million, or 65.1%, to $10.4 million during the nine-month period ended November 30, 2021, from $6.3 million reported in the same period last year[96]. Earnings and Expenses - Net earnings applicable to common shareholders for the three months ended November 30, 2021, were $2,646,600, a decrease of 38.3% compared to $4,269,600 for the same period in 2020[42]. - Basic earnings per share (EPS) for the three months ended November 30, 2021, was $0.33, down 35.3% from $0.51 in the prior year[42]. - Total operating expenses for the three months ended November 30, 2021, decreased by $13.2 million, or 37.6%, to $21.9 million compared to $35.1 million in the same quarter last year[83]. - Total operating expenses decreased by $29.9 million, or 34.5%, to $56.7 million for the nine-month period ended November 30, 2021, compared to $86.6 million for the same period last year[88]. - Operating income for the UBAM segment decreased by $3.3 million, or 30.6%, to $7.5 million during the three months ended November 30, 2021[84]. - Operating income of the UBAM segment decreased by $5.3 million, or 20.2%, to $21.0 million during the nine months ended November 30, 2021, compared to $26.3 million reported in the same period last year[89]. - Income taxes for the three months ended November 30, 2021, decreased by $0.5 million, or 33.3%, to $1.0 million from $1.5 million in the same quarter last year[74]. Inventory and Debt - Current net inventories as of November 30, 2021, totaled $69,236,200, an increase from $51,762,400 as of February 28, 2021, representing a growth of approximately 34%[23]. - Total long-term debt as of November 30, 2021, was $25,527,900, up from $10,984,700 as of February 28, 2021[32]. - The Company executed an Amended and Restated Loan Agreement on February 15, 2021, which included a reduction in the fixed interest rate on Term Loan 1 from 4.23% to 3.12%[32]. - The Company has a $20.0 million revolving loan with an effective interest rate of 3.00% as of November 30, 2021[33]. - Future minimum payments receivable under operating leases are estimated to total $14,704,600[31]. - The Advancing Term Loan 2 was established in the principal amount of $10.0 million on November 19, 2021, maturing November 19, 2031[36]. Share-Based Compensation - Share-based compensation expense for the three months ended November 30, 2021, was $261,600, a decrease of 10.3% compared to $291,800 for the same period in 2020[52]. - The Company expects to recognize total unrecognized share-based compensation expense of $2,093,500 over a weighted-average period of 29.6 months as of November 30, 2021[52]. - The total compensation expense for restricted share awards recognized for the nine months ended November 30, 2021, was $784,900, an increase of 15.9% from $677,000 for the same period in 2020[52]. - During the first nine months of fiscal year 2022, the company recognized $0.8 million of compensation expense associated with shares granted[126]. Cash Flow and Investments - Cash outflows from operations were $7,377,100 during the first nine months of fiscal year 2022, despite net earnings of $7,982,900[101]. - Cash used in investing activities was $3,387,100 for capital expenditures, including $2,901,600 for equipment to increase daily shipping capacity[103]. Consultant and Sales Performance - Average number of active consultants for the three months ended November 30, 2021, was 41,500, a decrease of 15,700, or 27.4%, from 57,200 in the same period last year[81]. - Sales commissions for the three months ended November 30, 2021, decreased by $8.5 million, or 37.1%, to $14.4 million compared to $22.9 million in the same quarter last year[83]. Other Financial Metrics - Gross margin for the three months ended November 30, 2021, decreased by $16.5 million, or 35.9%, to $29.4 million, with a gross margin percentage of 71.1%[82]. - Gross margin for the nine months ended November 30, 2021, decreased by $35.3 million, or 31.2%, to $77.7 million, with a gross margin percentage of 71.6%[86]. - Gross margin as a percentage of net revenues decreased to 46.3% during the nine-month period ended November 30, 2021, from 48.2% reported in the same period last year[97]. - Total operating expenses of the Publishing segment increased by $0.6 million, or 50.0%, to $1.8 million during the nine-month period ended November 30, 2021, from $1.2 million reported in the same period last year[98].

Educational Development Corporation (NASDAQ:EDUC) Q2 2022 Earnings Conference Call October 7, 2021 4:00 PM ET Company Participants Craig White - CEO and President Dan O'Keefe - CFO Heather Cobb - Chief Sales and Marketing Officer Conference Call Participants Tony Chiarenza - Key Equity Investors Adam Kipling - Hollywood Fitness David Wright - Henry Investment Trust Operator Thank you for standing by. Welcome to the Educational Development Corporation Second Quarter Fiscal Year 2022 Earnings Conference Call. ...

Financial Performance - The Company reported net revenues for fiscal year 2021 remained stable despite the COVID-19 pandemic, with fiscal 2022 results showing normalization[20]. - Net earnings applicable to common shareholders for the three months ended August 31, 2021, were $1,898,200, a decrease of 55.4% compared to $4,255,000 for the same period in 2020[44]. - Basic earnings per share for the three months ended August 31, 2021, were $0.24, down 52.9% from $0.51 in the prior year[44]. - Total net revenues for the three months ended August 31, 2021, were $32,994,400, a decline of 44.3% from $59,250,100 in the same period of 2020[56]. - The UBAM segment generated net revenues of $29,518,100 for the three months ended August 31, 2021, compared to $56,911,600 in 2020, reflecting a decrease of 48.8%[56]. - Net revenues for the six-month period ended August 31, 2021, decreased by $26.7 million, or 28.5%, to $67.1 million compared to $93.8 million from the same period a year ago[84]. - Publishing division's net revenues increased by $3.0 million, or 81.1%, to $6.7 million during the six-month period ended August 31, 2021, from $3.7 million reported in the same period last year[94]. Inventory and Purchases - Current inventory as of August 31, 2021, was $64,707,400, an increase of 25% from $51,762,400 as of February 28, 2021[26]. - Total inventory purchases for the three months ended August 31, 2021, were $18,779,100, up 52% from $12,370,600 in the same period of 2020[28]. - The total cost of inventory on consignment with consultants was $1.2 million at August 31, 2021, and $1.1 million at February 28, 2021[118]. - The estimated valuation allowance for both current and noncurrent inventory, including reserves for consigned inventory, was $0.8 million at August 31, 2021, and $0.7 million at February 28, 2021[119]. Operating Expenses - Total operating expenses for the three months ended August 31, 2021, decreased by $15.8 million, or 50.8%, to $15.3 million compared to $31.1 million in the same quarter a year ago[82]. - Operating and selling expenses for the three months ended August 31, 2021, decreased by $4.9 million, or 53.8%, to $4.2 million compared to $9.1 million in the same quarter a year ago[82]. - Total operating expenses decreased by $16.7 million, or 32.4%, to $34.8 million for the six-month period ended August 31, 2021, compared to $51.5 million for the same period last year[87]. - Total operating expenses of the Publishing segment increased by $0.5 million, or 71.4%, to $1.2 million during the six-month period ended August 31, 2021, from $0.7 million reported in the same period last year[96]. Debt and Financing - The Company executed an Amended and Restated Loan Agreement on February 15, 2021, which included a $20.0 million revolving loan with an effective interest rate of 2.75% as of August 31, 2021[36]. - Outstanding borrowings on the line of credit increased to $16,653,800 as of August 31, 2021, compared to $5,245,300 as of February 28, 2021[36]. - The outstanding borrowings on Term Loan 1 were $10.7 million as of August 31, 2021, with a fixed interest rate reduced to 3.12%[103]. - Cash provided by financing activities was $14,741,300, which included proceeds from term debt and net borrowings under the line of credit[101]. Shareholder Information - The Board of Directors approved a $0.10 dividend to be paid to shareholders of record on November 18, 2021[65]. - The company expects cash generated from operations to support ongoing operations and plans to use excess cash to increase inventory and distribute to shareholders[102]. Segment Performance - Operating income for the UBAM segment decreased by $4.1 million, or 42.3%, to $5.6 million during the three months ended August 31, 2021[83]. - Operating income of the UBAM segment decreased by $2.1 million, or 13.5%, to $13.4 million during the six months ended August 31, 2021, compared to $15.5 million reported in the same period last year[88]. - Gross margin for the three months ended August 31, 2021, decreased by $19.9 million, or 48.8%, to $20.9 million, with a gross margin percentage of 70.7%[81]. - Gross margin for the six-month period ended August 31, 2021, decreased by $18.8 million, or 28.1%, to $48.2 million, with a gross margin percentage of 71.9%[86]. - Gross margin increased by $1.2 million, or 66.7%, to $3.0 million during the six-month period ended August 31, 2021, from $1.8 million reported in the same period last year[95]. Compensation and Taxes - Share-based compensation expense for the three months ended August 31, 2021, was $261,700, an increase of 21.0% from $216,200 in the same period of 2020[51]. - The Company expects to recognize total unrecognized share-based compensation expense of $2,355,000 over a weighted-average period of 32.0 months[51]. - Income taxes for the three months ended August 31, 2021, decreased by $0.7 million, or 46.7%, to $0.8 million from $1.5 million for the same quarterly period a year ago[73].

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 May 31, 2021 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 (NASDAQ:EDUC) Q4 2021 Earnings Conference Call May 18, 2021 4:00 PM ET Company Participants Randall White – Chairman and Chief Executive Officer Dan O’Keefe – Chief Financial Officer Craig White – Chief Operating Officer Heather Cobb – Chief Sales and Marketing Officer Conference Call Participants Randy Freed – RL Capital Dennis Amato – Bank of America David Eikenberg – RBC Global Asset Management Operator Good day and thank you for standing by and welcome to the Fiscal 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2021 OR ☐TRANSITION REPORT PURSUANT TO 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 (Exact name of registrant as specified in its charter) Delaware 73-0750007 (State or other ...