EDC Reports Nine Months Results and Declares Annual Dividend
|January 12, 2006|
|The Company reports that net revenues increased slightly, up 4% for the
quarter, after experiencing a small decline in the previous two quarters. Net
revenues in the Publishing Division increased 15% for the quarter ending
November 30, 2005 when compared with the same quarter last year and are up 13%
for the nine months. This trend has continued in the Publishing Division with
December recording a 24% increase in net revenues. Net revenues in the Home
Business Division increased 1.3% for the three months ended November 30, 2005
after experiencing a 10.5% decline in the previous three months. The increase
is attributed to additional sales force incentives put in place in August and
continued through December. The additional incentives were also responsible for
a record number of new sales associates joining the organization, 1,500 during
the last week of August and the month of September. The additional incentives,
along with increased shipping costs, were primarily responsible for lower
margins in the quarter.
The Company's continued profit and cash flow generation have allowed the repayment of virtually all of the debt under its current loan agreement, with the current balance under $100,000.
The positive cash flow and debt position has prompted the Board of Directors to authorize a $0.20 per share cash dividend, a 33% increase over last year's cash dividend of $0.15 per share. The dividend will be paid on May 12, 2006 to shareholders of record May 2, 2006.
Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 5,100 retail stores and over the Internet. The Company offers over 1,400 different titles for children of all ages.
|Three Months Ended November 30||Nine Months Ended November 30|
|Net Revenues||$ $9,683,000||$ $9,331,100||$ $24,703,800||$ $24,876,600|
|Earnings Before Income Taxes||$1,167,100||$1,298,100||$3,008,000||$3,359,200|
|Earnings Per Share|
|Weighted Average Shares|