Press Release


EDUCATIONAL DEVELOPMENT CORPORATION REPORTS RECORD THIRD QUARTER SALES AND EARNINGS
 
January 07, 2003
 
Educational Development Corporation (NASDAQ: EDUC) reported today record sales and earnings for the three months ended November 30, 2002.  The Company announced net earnings increased 58% to $764,900 and net sales increased 30% for the current three month period when compared with the same three month period a year ago.  Earnings per share on a fully diluted basis increased 58% to $0.19 per share for the 3rd quarter ended November 30, 2002.  Net earnings for the nine months ended November 30, 2002 increased 38% to $1,766,600 and net sales increased 23% to $19,561,800 for the current nine month period when compared with the same nine month period a year ago.  Earnings per share on a fully diluted basis were up 34% for the current nine month period.

The Home Business Division posted a 38% increase in net sales for the 3rd quarter of the current year.  This division has recorded 28 consecutive months of increased sales.  Recruiting of new sales associates was up nearly 67% for the nine months ended November 30, 2002 when compared with the same period a year ago.

The Publishing Division recorded a 6% increase in net sales for the 3rd quarter of the current year.  This is especially encouraging in today's economic market and particularly the retail market which is generally experiencing a nationwide decline.

The Company has a strong cash position, with a current balance of $3 million and no outstanding debt.  The Company expects continued revenue growth to generate increasing cash reserves.  As a result, the Board of Directors has approved a policy to pay 20% of net earnings as a cash dividend.  The Company expects basic earnings per share to be $0.53 to $0.55 for the fiscal year ending February 28, 2003, compared to $0.40 for the previous year.

Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 10,000 retail stores and over the Internet.  The Company offers over 1,100 different titles for children of all ages.
 
  Three Months Ended November 30 Nine Months Ended November 30
  2002   2001 2002   2001
Net Sales $ 7,827,400 $ 6,007,900 $ 19,561,800 $ 15,916,900
Earnings Before Income Taxes $1,232,900 $800,100 $2,845,900 $2,063,400
Income Taxes 468,000 315,100 1,079,300 785,100
Net Earnings $764,900 $485,000 $1,766,600 $1,278,300
Earnings Per Share
     Basic $0.20 $0.13 $0.46 $0.33
     Diluted $0.19 $0.12 $0.43 $0.32
Weighted Average Shares
     Basic 3,836,345 3,851,496 3,836,331 3,877,764
     Diluted 4,136,271 4,095,284 4,146,051 4,043,381