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Press Release |
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EDUCATIONAL DEVELOPMENT CORPORATION REPORTS RECORD THIRD QUARTER SALES AND EARNINGS |
| January 08, 2004 |
| Educational Development Corporation (NASDAQ: EDUC) reported today the highest
quarterly net earnings in the Company's history. Net earnings for the 3rd
quarter ended November 30, 2003 increased 14% to $871,100 when compared with
the 3rd quarter last year. Net earnings for the nine months ended
November 30, 2003 increased 13% to $1,991,400 when compared with the same
nine-month period a year ago. Net revenues for the 3rd quarter ended
November 30, 2003 increased 20% to $9,976,700. Net revenues for the nine
months ended November 30, 2003 increased 17% to $24,134,200. The record 3rd quarter earnings include an extra charge of $160,000 for additional inventory reserves and nonrecurring promotional marketing expenses in the Home Business Division. The net result of these charges was $.02 per share for the 3rd quarter. The Home Business Division posted a 23% increase in revenues for the 3rd quarter of the current year. This division has recorded 41 consecutive months of increased sales. Recruiting of new sales associates was up 31% for the 3rd quarter of the current year. The Publishing Division recorded a 9% increase in revenues for the 3rd quarter of the current year when compared with the same quarter last year. Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 6,000 retail stores and over the Internet. The Company offers over 1,300 different titles for children of all ages. |
| Three Months Ended November 30 | Nine Months Ended November 30 | ||||||
| 2003 | 2002 | 2003 | 2002 | ||||
| Net Sales | $ 9,976,700 | $ 8,289,200 | $ 24,134,200 | $ 20,631,000 | |||
| Earnings Before Income Taxes | $1,415,600 | $1,232,900 | $3,215,400 | $2,845,900 | |||
| Income Taxes | 544,400 | 468,000 | 1,224,000 | 1,079,300 | |||
| Net Earnings | $871,100 | $764,900 | $1,991,400 | $1,766,600 | |||
| Earnings Per Share | |||||||
| Basic | $0.22 | $0.20 | $0.51 | $0.46 | |||
| Diluted | $0.20 | $0.19 | $0.46 | $0.43 | |||
| Weighted Average Shares | |||||||
| Basic | 3,974,715 | 3,836,345 | 3,933,728 | 3,836,331 | |||
| Diluted | 4,322,308 | 4,136,271 | 4,292,120 | 4,146,051 | |||