Press Release


EDC Announces 1st Quarter Results
 
July 13, 2006
 
Educational Development Corporation (NASDAQ: EDUC) reported today net revenues for the 1st quarter ended May 31, 2006 of $8,106,977 compared with $8,226,679 for the comparable period last year.  The Company reported net earnings of $696,648 compared with net earnings of $745,200 for the previous year and basic earnings per share of $0.19 a share versus $0.20 for the same period a year ago.

The Company has experienced a shift in sales from independent bookstores to national chains.  While sales to national chains were up 5%, sales to the smaller bookstores declined 11% resulting in an overall decline of 4% for the quarter ended May 31, 2006 when compared with the same quarter last year.  Home Business Division maintained its market share with virtually the same revenue for the quarters ended May 31, 2006 and 2005 respectively.

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.
 
  May 31, 2006   May 31, 2005
Revenues
Gross Sales $10,743,378   $10,994,404  
Less Discounts & Allowances ( 3,041,585 ) ( 3,111,541 )
Transportation Revenue 405,184   343,816  
Net Revenues $ 8,106,977   $ 8,226,679  
 
Pre-tax Earnings $ 1,090,548   $ 1,202,500  
Income Taxes     393,900       457,300  
 
Net Earnings $   696,648   $   745,200  
 
Basic Earnings Per Share $        0.19   $        0.20  
Diluted Earnings Per Share $        0.18   $        0.19  
 
Weighted Average Number of
Common and Common Equivalent
Shares Outstanding:
Basic 3,756,461   3,738,133  
Diluted 3,886,939   3,901,588