Educational Development Corporation Announces Fiscal 2025 First Quarter Results

Core Insights - Educational Development Corporation (EDC) reported a net revenue of $10.0 million for the first quarter of fiscal 2025, a decrease from $14.5 million in the same period last year [8] - The company experienced a net loss of $(1.3) million, compared to a loss of $(0.9) million in the prior year, with a loss per share of $(0.15) compared to $(0.11) [8][11] - EDC's average active PaperPie Brand Partners decreased to 13,400 from 23,200 year-over-year, although recent promotions have added over 3,700 new partners, bringing the total to 14,700 by the end of June [8][9] Financial Performance - Net revenues for the three months ended May 31, 2024, were $9,993,400, down from $14,524,000 in 2023 [11] - Loss before income taxes was $(1,747,000) compared to $(1,200,600) in the previous year [11] - The weighted average number of common and equivalent shares outstanding remained relatively stable at 8,266,771 compared to 8,278,049 [11] Strategic Developments - The company has focused on inventory reduction, generating $2.9 million in positive cash flows, which helped cover historically negative cash outflows [3] - EDC signed a lease agreement for half of its space in the Hilti Complex, expected to generate approximately $1.0 million in new cash flow annually [3] - A sale/leaseback agreement for the Hilti Complex was executed for $35.5 million, which is anticipated to fully pay back bank borrowings and minimize future borrowing needs [10]