Educational Development Corporation Announces Completion of Corporate Headquarters Sale for 32.2 Million

Core Points - Educational Development Corporation (EDC) completed the sale of its headquarters and distribution warehouse, the Hilti Complex, for $32.2 million, which will be used to eliminate outstanding debt [2][3][4] - The sale strengthens the company's cash flows and financial position, allowing for improved annual cash flow generation by approximately $1.0 million due to the elimination of principal and interest payments [4] - EDC retains a 17-acre tract of excess land adjacent to the complex, valued at $2.0 million, further enhancing its balance sheet [4] Financial Impact - Proceeds from the sale were utilized to pay off Term Loans and Revolving Loan outstanding in the Credit Agreement with the bank [3] - The transaction is viewed as a strategic achievement that capitalizes on the appreciated value of the Hilti Complex [4] - The company expects continued improvement in cash flow from operations as it converts excess inventory into cash over the next several years [4] Company Background - EDC specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [5] - The company is also the exclusive U.S. distributor of Usborne Publishing Limited children's books, with products sold through 4,000 retail outlets and various independent brand partners [5]