Educational Development Corporation Announces Record Net Revenues and Earnings Estimates for Fiscal 2021
26 Gennaio 2021 - 1:01AM
Educational Development Corporation (“EDC”, or the “Company”)
(NASDAQ: EDUC) (http://www.edcpub.com) reports fiscal 2021 net
revenue guidance in excess of $200.0 million and fiscal 2021
diluted earnings per share in excess of $1.45 per share.
Per Randall White, Chief Executive Officer,
“Recently we provided net revenues guidance for fiscal 2021 of
approximately $200.0 million and earnings per share estimates
between $1.40 and $1.50 per share. We are pleased to provide
updated guidance results as we continue to improve through our
fiscal fourth quarter. Having said this, I would like to reconfirm
to our shareholders that there are significant variances in our
quarterly performance results due to typical seasonality.
Consequently, the Company evaluates quarterly and year to date
results against the comparable quarters and periods of the prior
year. In the nine months ended November 30, 2020, the Company
reported earnings before income taxes of $14.2 million (8.7% of Net
Revenues) compared to the previous year to date results of $7.0
million (7.6% of Net Revenues), a $7.2 million, or 103%, growth in
pretax profits with a significant improvement in pretax profit
margins.”
Mr. White continued, “Our fiscal fourth quarter,
due to seasonality, is typically our lowest sales and earnings
quarter of the year. But now that we have completed our December
financials and are close to the end of January, I am pleased to
report that our sales estimate for the year ending February 28,
2021 is still in-line with our past guidance, and we expect net
revenues to exceed $200.0 million. I am also pleased to provide
improved earnings guidance that we are currently on track to earn
between $1.45 and $1.50 in diluted earnings per share. These
pretax profit estimates reflect over 8.0% in earnings before income
taxes; including absorbing approximately $925,000 in non-recurring
charges in our third quarter fiscal 2021 results. These pretax
profit estimates also reflect significant improvement when compared
to 6.9% earnings before income taxes that we reported for year
ended February 28, 2020.”
Per Mr. White, “Our revenue growth to $200.0
million represents an increase of approximately $87 million, or
77%, in sales over last fiscal year and our “low end” estimated
earnings of $1.45 per share represents approximately 113% growth in
earnings. These revised estimates clearly reflect that our earnings
growth is outpacing our revenue growth. Furthermore, we expect this
trend to continue into fiscal 2022, as the Company realizes several
operating efficiencies."
Mr. White concluded, “During our next year,
fiscal 2022, we are implementing several initiatives that we expect
to have a positive impact on our pre-tax margins. First, we are
currently constructing our new line 6 and line 7 pick, pack and
ship system. Not only will the addition of these two new lines
double our daily shipping capacity, they will also include
additional automation that will reduce the labor needed to pick,
pack and ship orders on these lines. This additional shipping
capacity will also allow us to focus more staff on our day shift
which has higher production volumes and lower costs than our night
shift. The efficiencies from these two new production
lines, along with the other changes recently made, are
expected to have a positive impact on our overall pre-tax margins
in the next fiscal year.”
About Educational Development Corporation
(EDC)
EDC is a publishing company specializing in
books for children. EDC is the exclusive United States trade
co-publisher of the line of educational children’s books produced
in the United Kingdom by Usborne Publishing Limited (“Usborne”) and
we also exclusively publish books through our ownership of Kane
Miller Book Publisher (“Kane Miller”); both international
award-winning publishers of 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 4,000 retail outlets
and by independent consultants, who hold book showings in
individual homes, book fairs with school and public libraries as
well as sales over the internet.
Contact: Educational
Development
Corporation Randall
White, (918) 622-4522
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,
2020, 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, 2020 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.
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