July 7, 1998
Randall W. White, Chairman and CEO of Educational Development Corporation reports net earnings of $350,000 for the first quarter ended May 31, 1998 compared with net earnings of $463,900 for the first quarter a year ago.
Net sales were $4,160,700 for the first quarter ended May 31, 1998 compared with $4,660,400 for the quarter ended May 31, 1997. Publishing net sales for the quarter increased 1.4% over the same quarter last year, which is encouraging, as sales nationwide in the juvenile paperback market have declined 18%. Net sales for the Home Business Division declined 21% for the quarter ended May 31, 1998 when compared with the quarter ended May 31, 1997. The Company attributes this decline to the unanticipated lingering aftereffects of the changes made to the compensation structure in October 1996. New compensation programs have been created to encourage sales and recruiting at all levels of the organization. Positive results from these new programs have been achieved and Management believes the current programs will re-establish long-term growth in the Home Business Division.
On May 28, 1998 the Company purchased from Randall W. White, Chairman of the Board and President, 135,200 shares of the Companys common stock at the closing market price on that day and issued Mr. White an option to repurchase those shares at that same price.
The Board of Directors authorized increasing the annual dividend 100% to $0.02 per share, payable August 14, 1998 to shareholders of record August 1, 1998.