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EDC(EDUC) - 2025 Q4 - Annual Results
EDUCEDC(EDUC)2025-05-19 20:30

Financial Transactions - Educational Development Corporation executed a Purchase and Sale Agreement for its headquarters and distribution warehouse for a total sale price of 35,150,000[6].−TheproceedsfromthesalewillbeusedtopayoffoutstandingTermLoansandRevolvingLoanintheCreditAgreementwiththeCompany′sBank[7].−Thesaleagreementincludesa90−dayduediligenceperiodfortheBuyertosecurefinancingandperforminspections[8].−TheHiltiComplexsaledoesnotincludeapproximately17acresofundevelopedland,whichwillremainundertheownershipofEducationalDevelopmentCorporation[7].LeaseAgreements−ThenewleasewiththeBuyerwillhaveaninitialtermof10yearsatarateof35,150,000[6]. - The proceeds from the sale will be used to pay off outstanding Term Loans and Revolving Loan in the Credit Agreement with the Company's Bank[7]. - The sale agreement includes a 90-day due diligence period for the Buyer to secure financing and perform inspections[8]. - The Hilti Complex sale does not include approximately 17 acres of undeveloped land, which will remain under the ownership of Educational Development Corporation[7]. Lease Agreements - The new lease with the Buyer will have an initial term of 10 years at a rate of 8.62 per square foot, with 2.0% annual escalations starting in year two[9]. - The Company will assign existing tenant leases to the Buyer and enter into a new lease for its occupied space in the Hilti Complex[7]. - The initial lease will include typical triple-net terms, where the Seller is responsible for utilities, insurance, property taxes, and regular maintenance[9]. Corporate Governance - The Board of Directors approved the addition of Steven Hooser as a Class I Director, who will serve on the Audit, Compensation, and Governance Committees[13]. Financial Reporting - Educational Development Corporation announced its fiscal 2025 financial results on May 19, 2025, with a corresponding earnings call scheduled for the same day[14]. - Educational Development Corporation's fiscal 2025 earnings call will take place at 3:30 PM CT on May 19, 2025[14].