EDC(EDUC) - 2024 Q4 - Annual Results

Financial Performance - Net revenues for fiscal 2024 were $51.0 million, a decrease of 42% compared to $87.8 million in the prior year[4] - Net earnings improved to $0.5 million, an increase of $3.0 million compared to a net loss of $2.5 million in the previous year[4] - Earnings per share for fiscal 2024 was $0.07, compared to a loss of $(0.31) in the prior year[4] - Loss before income taxes improved by $0.4 million to $(2.2) million in the fourth quarter compared to the prior year[4] Operational Changes - Average active PaperPie Brand Partners decreased to 18,300 from 28,000, reflecting a decline of approximately 35%[4] - The company continues to focus on reducing spending and limiting capital expenses to navigate high inflation challenges[3] - The new e-commerce platform launched in January aims to enhance user experience and drive revenue growth[3] Cash Flow and Debt Management - Inventory levels were reduced from $63.8 million to $55.6 million, generating $8.2 million in cash flows[3] - Bank borrowings decreased from $45.7 million to $33.9 million, aided by inventory reductions and proceeds from asset sales[3] - The planned sale/leaseback of the headquarters facility is expected to generate approximately $40.0 million, which could fully pay off bank borrowings[3]