Form 8-K EDUCATIONAL DEVELOPMENT For: Jul 17

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 17, 2017 (July 17, 2017)

 

EDUCATIONAL DEVELOPMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware	000-04957	73-0750007
(State or other jurisdiction of	(Commission file number)	(I.R.S. Employer
incorporation or organization)		Identification No.)

5402 S 122^nd E Avenue, Tulsa, Oklahoma 74146

(Address of principal executive offices and Zip Code)

 

(918) 622-4522

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ]       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ______

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ______

 

 

The information disclosed in these Items 2.02 and 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.

 

ITEM 2.02

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

July 17, 2017, Educational Development Corporation, announced via press release, first quarter fiscal 2018 results. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

ITEM 7.01 REGULATION FD DISCLOSURE

 

On July 17, 2017, Educational Development Corporation, announced via press release, fiscal 2017 results. Educational Development Corporation’s 1st quarter of fiscal 2018 earnings call will be held on July 25th, 2017 at 2:00 cst. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS

 

(d)           EXHIBITS

 

Exhibit Number	Description
99.1	Press release dated as of July 17, 2017

 

 

 

 

SIGNATURES

 

 

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

	Educational Development Corporation
By:	/s/ Randall W. White
	Randall W. White
	President and Chief Executive Officer

 

 

Date: July 17, 2017

 

 

 

 

 

 

 

EXHIBIT INDEX

 

 

EXHIBIT NUMBER		DESCRIPTION
99.1		Press release dated as of July 17, 2017

 

 

 

 

 

 

EXHIBIT 99.1

Educational Development Corporation Announces First Quarter Fiscal 2018 Results

TULSA, Okla., July 17, 2017 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”) (NASDAQ: EDUC) (http://www.edcpub.com) today reports record net sales and earnings per share results for the first quarter ended May 31, 2017.   

Randall White, CEO of Educational Development Corporation, announced that for the fiscal first quarter ended May 31, 2017, the Company reports record net revenues of $26,930,800, an increase of $4,146,600, or 18%, when compared to $22,784,200 for first quarter of the previous year.  Net earnings totaled $1,225,300 for quarter ended May 31, 2017, compared to $620,200 for the quarter ended May 31, 2016, an increase of 98%.   Earnings per share for the quarter were $0.30 compared to $0.15 for the same quarter in the previous year, up 100% on a fully diluted basis.

The direct sales division, Usborne Books & More (“UBAM”), continued to have strong growth this quarter driven by the success and growth of our active sales consultants.  Net revenues of this division increased by 20% from $20,650,200 in the quarter ended May 31, 2016 to $24,808,700 in the quarter ended May 31, 2017.  The number of active direct sales consultants also increased to 27,600 at the end of first quarter ended May 31, 2017, an increase of 7,000, or 27%, over the active consultant count as of May 31, 2016.

The Publishing’s divisions revenues remained consistent at $2,122,100 for the quarter ended May 31, 2017 as compared to $2,134,000 for the same quarter a year ago. 

Per Mr. White, “In the first quarter of fiscal year 2018 we continued our growth trend that we have been experiencing for the past several years.  We continued to add new consultants this quarter which, along with the success of our existing consultants, had a positive impact on the net sales of our UBAM division. 

In addition to our revenue growth, the Company is reporting increased operational profits this quarter which resulted from several of the system upgrades and operational changes we have made over the past year.   We expect to see continued improvements in our operational performance as we continue to invest in automation within our warehouse and distribution facility, much of which we expect to have completed this fall.”

EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED FINANCIAL RESULTS
				Three Months ended May 31,
					2017			2016
NET REVENUES				$	26,930,800		$	22,784,200
EARNINGS BEFORE INCOME TAXES					1,982,155			1,004,560
INCOME TAXES					756,900			384,400
NET EARNINGS				$	1,225,255		$	620,160
BASIC AND DILUTED EARNINGS PER SHARE
Basic				$	0.30		$	0.15
Diluted				$	0.30		$	0.15
WEIGHTED AVERAGE NUMBER OF COMON AND EQUIVALENT
SHARES OUTSTANDING
Basic					4,090,143			4,068,679
Diluted					4,093,898			4,074,597

EDC will host its first quarter fiscal 2018 results Investor Call including a live Q&A webcast on Tuesday, July 25, 2017, at 2 PM CT (3 PM ET).  Randall White, the Company’s CEO and President and Dan O’Keefe, CFO and Secretary, will present the annual results and be available for questions following the presentation.  Phone lines for participants will be available at (844) 395-9253 (International callers can use (478) 219-0506).  The conference passcode is 57392486. The weblink to the call is  http://edge.media-server.com/m/p/ptkg2m3j.   

The link to the webcast, including replays will be available following the event at www.edcpub.com/investors.aspx.

About Educational Development Corporation (EDC)
EDC is a publishing company specializing in books for children. EDC is the exclusive United States distributor of the UK-based Usborne Books and owns Kane Miller Publishers; award-winning publishers of international children’s books. EDC’s current catalog contains over 2,000 titles, with new additions semi-annually. Both Usborne and Kane Miller products are sold via 5,000 retail outlets and by independent consultants, who hold book showings in individual homes, through social media, book fairs with school and public libraries, direct and internet sales. 

Cautionary Statement for the Purpose of the “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995.
The information discussed in this Press Release includes “forward-looking statements.” These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “continue,” “potential,” “should,” “could,” and similar terms and phrases.  Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved.  Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new consultants, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing  for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 29, 2016, all of which are difficult to predict.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur.  All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 29, 2016 and speak only as of the date of this Press Release.  Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.

 

Contact:
Educational Development Corporation
Randall White, (918) 622-4522

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