Educational Development Corporation Announces Record Net Revenues and Earnings Estimates for Fiscal 2021

TULSA, Okla., Jan. 25, 2021 (GLOBE NEWSWIRE) -- 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."