EDC(US:EDUC)2026-01-08 21:01Financial Performance - Net revenues for the third quarter were $7.0 million, a decrease of 37.5% compared to $11.1 million in the prior year[5] - Earnings before income taxes for the third quarter were $10.6 million, compared to a loss of $(1.1) million in the prior year, with a gain from the building sale of $12.2 million[5] - Net earnings for the third quarter totaled $7.8 million, compared to a loss of $(0.8) million in the prior year[5] - Year-to-date net revenues were $18.7 million, down 32.3% from $27.6 million in the prior year[5] Operational Metrics - Average active PaperPie Brand Partners decreased to 5,100 from 12,400, reflecting a decline of 58.9% year-over-year[5] - Inventory levels were reduced by $1.5 million during the third quarter, contributing to an improved cash position[4] Cash and Liquidity - Cash position at the end of the quarter was $3.4 million, providing necessary liquidity for fiscal 2027[4] - The strategic sale and leaseback of the Hilti Complex generated $32.2 million, which was used to pay off outstanding loans, improving annual cash flow by approximately $1.0 million[4] - The company retained a 17-acre tract of excess land adjacent to the Hilti Complex, valued at $2.0 million, enhancing the balance sheet[4] Strategic Initiatives - The company plans to implement a strategic purchase plan for new titles to energize sales and support growth in the PaperPie division[4]