Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May. 31, 2015 | Jul. 10, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Educational Development Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --02-28 | |
Entity Common Stock, Shares Outstanding | 4,022,438 | |
Amendment Flag | false | |
Entity Central Index Key | 31,667 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | May 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED BALANCE SHEETS (UNAUD
CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) | May. 31, 2015 | Feb. 28, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 371,400 | $ 383,900 |
Accounts receivable, less allowance for doubtful accounts and sales returns of $365,800 (May 31) and $334,500 (February 28) | 3,058,200 | 3,076,700 |
Inventories—Net | 12,922,000 | 11,181,000 |
Prepaid expenses and other assets | 407,800 | 374,200 |
Deferred income taxes | 257,700 | 249,800 |
Total current assets | 17,017,100 | 15,265,600 |
INVENTORIES—Net | 358,600 | 350,800 |
PROPERTY, PLANT AND EQUIPMENT—Net | 2,158,700 | 2,073,200 |
OTHER ASSETS | 243,400 | 243,400 |
DEFERRED INCOME TAXES | 75,700 | 80,200 |
TOTAL ASSETS | 19,853,500 | 18,013,200 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,449,400 | 2,237,700 |
Line of credit | 1,700,000 | 1,400,000 |
Accrued salaries and commissions | 912,000 | 618,100 |
Income taxes payable | 202,500 | 63,600 |
Dividends payable | 323,000 | 322,000 |
Other current liabilities | 891,100 | 1,043,500 |
Total current liabilities | $ 7,478,000 | $ 5,684,900 |
COMMITMENTS | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.20 par value; Authorized 8,000,000 shares; Issued 6,041,040 (May 31 and February 28) shares; Outstanding 4,037,572 (May 31) and 4,024,539 (February 28) shares | $ 1,208,200 | $ 1,208,200 |
Capital in excess of par value | 8,548,000 | 8,548,000 |
Retained earnings | 13,858,800 | 13,857,200 |
23,615,000 | 23,613,400 | |
Less treasury stock, at cost | (11,239,500) | (11,285,100) |
Total shareholders' equity | 12,375,500 | 12,328,300 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 19,853,500 | $ 18,013,200 |
CONDENSED BALANCE SHEETS (UNAU3
CONDENSED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) | May. 31, 2015 | Feb. 28, 2015 |
Allowance for doubtful accounts and sales returns (in Dollars) | $ 365,800 | $ 334,500 |
Common Stock, par value (in Dollars per share) | $ 0.20 | $ 0.20 |
Common Stock, shares authorized | 8,000,000 | 8,000,000 |
Common Stock, shares issued | 6,041,040 | 6,041,040 |
Common Stock, shares outstanding | 4,037,572 | 4,024,539 |
CONDENSED STATEMENTS OF EARNING
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
GROSS SALES | $ 13,303,100 | $ 10,720,400 |
Discounts and allowances | (4,207,600) | (3,801,900) |
Transportation revenue | 542,300 | 259,800 |
NET REVENUES | 9,637,800 | 7,178,300 |
COST OF SALES | 3,573,800 | 2,843,500 |
Gross margin | 6,064,000 | 4,334,800 |
OPERATING EXPENSES: | ||
Operating and selling | 2,723,300 | 2,058,600 |
Sales commissions | 2,314,600 | 1,419,900 |
General and administrative | 484,400 | 472,300 |
Total operating expenses | 5,522,300 | 3,950,800 |
OTHER INCOME (EXPENSE) | (10,000) | 3,600 |
EARNINGS BEFORE INCOME TAXES | 531,700 | 387,600 |
INCOME TAXES | 207,100 | 147,900 |
NET EARNINGS | $ 324,600 | $ 239,700 |
BASIC AND DILUTED EARNINGS PER SHARE: | ||
Basic (in Dollars per share) | $ 0.08 | $ 0.06 |
Diluted (in Dollars per share) | 0.08 | 0.06 |
DIVIDENDS PER SHARE (in Dollars per share) | $ 0.08 | $ 0.08 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ||
Basic (in Shares) | 4,010,830 | 3,986,561 |
Diluted (in Shares) | 4,010,830 | 3,986,561 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - 3 months ended May. 31, 2015 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 28, 2015 | $ 1,208,200 | $ 8,548,000 | $ 13,857,200 | $ (11,285,100) | $ 12,328,300 |
Balance (in Shares) at Feb. 28, 2015 | 6,041,040 | 2,016,501 | |||
Purchases of treasury stock | $ (200) | (200) | |||
Purchases of treasury stock (in Shares) | 59 | ||||
Sales of treasury stock | $ 45,800 | 45,800 | |||
Sales of treasury stock (in Shares) | (13,092) | ||||
Dividends declared ($.08/share) | (323,000) | (323,000) | |||
Net earnings | 324,600 | 324,600 | |||
Balance at May. 31, 2015 | $ 1,208,200 | $ 8,548,000 | $ 13,858,800 | $ (11,239,500) | $ 12,375,500 |
Balance (in Shares) at May. 31, 2015 | 6,041,040 | 2,003,468 |
CONDENSED STATEMENT OF CHANGES6
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parentheticals) | 3 Months Ended |
May. 31, 2015$ / shares | |
Retained Earnings [Member] | |
Dividends declared/share | $ 0.08 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | $ 82,800 | $ (484,200) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (118,900) | (87,100) |
Net cash used in investing activities | (118,900) | (87,100) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash paid to acquire treasury stock | (200) | (4,400) |
Cash received from sales of treasury stock | 45,800 | 42,300 |
Borrowings under revolving credit agreement | 300,000 | 475,000 |
Payments under revolving credit agreement | 0 | 0 |
Dividends paid | (322,000) | (318,200) |
Net cash provided by financing activities | 23,600 | 194,700 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (12,500) | (376,600) |
CASH AND CASH EQUIVALENTS—BEGINNING OF PERIOD | 383,900 | 680,000 |
CASH AND CASH EQUIVALENTS—END OF PERIOD | 371,400 | 303,400 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 15,800 | 1,300 |
Cash paid for income taxes | $ 71,500 | $ 205,700 |
Note 1
Note 1 | 3 Months Ended |
May. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Note 1 These financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Ex-change Commission for interim reporting and should be read in conjunction with the audited financial statements and accompanying notes contained in our annual report on Form 10-K for the fiscal year ended February 28, 2015. |
Note 2
Note 2 | 3 Months Ended |
May. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 2 We had $1,700,000 in borrowings outstanding on the revolving credit agreement at May 31, 2015 and $1,400,000 in borrowings at February 28, 2015. Available credit under the previous revolving credit agreement was $1,500,000 at May 31, 2015. This agreement also contains a provision for our use of the Bank’s letters of credit. The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 30, 2016 and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. The agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures and leasing transactions. For the quarter ended May 31, 2015, we had no letters of credit outstanding. |
Note 3
Note 3 | 3 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3 2015 May 31, February 28, Current: Book inventory $ 12,947,000 $ 11,206,000 Inventory valuation allowance (25,000 ) (25,000 ) Inventories net–current $ 12,922,000 $ 11,181,000 Non-current: Book inventory $ 723,900 $ 718,900 Inventory valuation allowance (365,300 ) (368,100 ) Inventories net–non-current $ 358,600 $ 350,800 |
Note 4
Note 4 | 3 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 4 Earnings Per Share: Three Months Ended May 31, 2015 2014 Net earnings $ 324,600 $ 239,700 Shares: Weighted average shares outstanding - basic 4,010,830 3,986,561 Assumed exercise of options - - Weighted average shares outstanding - diluted 4,010,830 3,986,561 Basic Earnings Per Share $ 0.08 $ 0.06 Diluted Earnings Per Share $ 0.08 $ 0.06 Stock options not considered above because they were antidilutive 10,000 10,000 Our Board of Directors has adopted a stock repurchase plan in which we may purchase up to a total of 3,000,000 shares as market conditions warrant. This plan has no expiration date. During the three months ended May 31, 2015, we purchased 59 shares of common stock. The maximum number of shares that can be repurchased in the future is 303,256. |
Note 5
Note 5 | 3 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 5 |
Note 6
Note 6 | 3 Months Ended |
May. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Other Operating Income and Expense [Text Block] | Note 6 Outbound freight and handling costs incurred are included in operating and selling expenses and were $1,057,400 and $740,700 for the three months ended May 31, 2015 and 2014, respectively. |
Note 7
Note 7 | 3 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 7 The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net sales reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments, but are listed in the “other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management. Our assets and liabilities are not allocated on a segment basis Information by industry segment for the three-month periods ended May 31, 2015 and 2014 follows: NET REVENUES Three Months Ended May 31, 2015 2015 2014 EDC Publishing $ 2,619,600 $ 2,763,900 UBAM 7,018,200 4,414,400 Total $ 9,637,800 $ 7,178,300 EARNINGS BEFORE INCOME TAXES Three Months Ended May 31, 2015 2015 2014 EDC Publishing $ 718,600 $ 809,300 UBAM 952,000 615,400 Other (1,138,900 ) (1,037,100 ) Total $ 531,700 $ 387,600 |
Note 8
Note 8 | 3 Months Ended |
May. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 8 – . |
Note 9
Note 9 | 3 Months Ended |
May. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 9 – Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. If an asset or liability has a specified term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability. We do not report any assets or liabilities at fair value in the financial statements. However, the estimated fair value of our line of credit is estimated by management to approximate the carrying value of $1,700,000 at May 31, 2015 and $1,400,000 at February 28, 2015. Management's estimates are based on the obligation’s characteristics, including a floating interest rate, maturity, and collateral. Such valuation inputs are considered a Level 2 measurement in the fair value valuation hierarchy. |
Note 10
Note 10 | 3 Months Ended |
May. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 10 |
Note 3 (Tables)
Note 3 (Tables) | 3 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | Inventories consist of the following: 2015 May 31, February 28, Current: Book inventory $ 12,947,000 $ 11,206,000 Inventory valuation allowance (25,000 ) (25,000 ) Inventories net–current $ 12,922,000 $ 11,181,000 Non-current: Book inventory $ 723,900 $ 718,900 Inventory valuation allowance (365,300 ) (368,100 ) Inventories net–non-current $ 358,600 $ 350,800 |
Note 4 (Tables)
Note 4 (Tables) | 3 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted earnings per share (“EPS”) is shown below. Earnings Per Share: Three Months Ended May 31, 2015 2014 Net earnings $ 324,600 $ 239,700 Shares: Weighted average shares outstanding - basic 4,010,830 3,986,561 Assumed exercise of options - - Weighted average shares outstanding - diluted 4,010,830 3,986,561 Basic Earnings Per Share $ 0.08 $ 0.06 Diluted Earnings Per Share $ 0.08 $ 0.06 Stock options not considered above because they were antidilutive 10,000 10,000 |
Note 7 (Tables)
Note 7 (Tables) | 3 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information by industry segment for the three-month periods ended May 31, 2015 and 2014 follows: NET REVENUES Three Months Ended May 31, 2015 2015 2014 EDC Publishing $ 2,619,600 $ 2,763,900 UBAM 7,018,200 4,414,400 Total $ 9,637,800 $ 7,178,300 EARNINGS BEFORE INCOME TAXES Three Months Ended May 31, 2015 2015 2014 EDC Publishing $ 718,600 $ 809,300 UBAM 952,000 615,400 Other (1,138,900 ) (1,037,100 ) Total $ 531,700 $ 387,600 |
Note 2 (Details)
Note 2 (Details) - USD ($) | Jul. 07, 2015 | May. 31, 2015 | Feb. 28, 2015 |
Note 2 (Details) [Line Items] | |||
Line of Credit Facility, Interest Rate at Period End | 4.00% | ||
Line of Credit Facility, Collateral | collateralized by substantially all of our assets | ||
Long-term Line of Credit | $ 1,700,000 | $ 1,400,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 1,500,000 | ||
Letters of Credit Outstanding, Amount | $ 0 | ||
Subsequent Event [Member] | |||
Note 2 (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | ||
Line of Credit Facility, Expiration Date | Jun. 30, 2016 | ||
Line of Credit Facility, Frequency of Payment and Payment Terms | Interest is payable monthly at the prime rate |
Note 3 (Details)
Note 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Note 3 (Details) [Line Items] | ||
Payments for Purchase of Other Assets | $ 5.7 | $ 4 |
England Based Publishing Company [Member] | ||
Note 3 (Details) [Line Items] | ||
Payments for Purchase of Other Assets | $ 4.4 | $ 3.3 |
Note 3 (Details) - Schedule of
Note 3 (Details) - Schedule of Inventory - USD ($) | May. 31, 2015 | Feb. 28, 2015 |
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Inventories net–current | $ 12,922,000 | $ 11,181,000 |
Inventories net–non-current | 358,600 | 350,800 |
Inventory, Current [Member] | ||
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | 12,947,000 | 11,206,000 |
Inventory valuation allowance | (25,000) | (25,000) |
Inventory, Noncurrent [Member] | ||
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | 723,900 | 718,900 |
Inventory valuation allowance | $ (365,300) | $ (368,100) |
Note 4 (Details)
Note 4 (Details) - May. 31, 2015 - shares | Total |
Earnings Per Share [Abstract] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 3,000,000 |
Stock Repurchased During Period, Shares | 59 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 303,256 |
Note 4 (Details) - Schedule of
Note 4 (Details) - Schedule of Earnings Per Share - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Schedule of Earnings Per Share [Abstract] | ||
Net earnings (in Dollars) | $ 324,600 | $ 239,700 |
Shares: | ||
Weighted average shares outstanding - basic | 4,010,830 | 3,986,561 |
Assumed exercise of options | 0 | 0 |
Weighted average shares outstanding - diluted | 4,010,830 | 3,986,561 |
Basic Earnings Per Share (in Dollars per share) | $ 0.08 | $ 0.06 |
Diluted Earnings Per Share (in Dollars per share) | $ 0.08 | $ 0.06 |
Stock options not considered above because they were antidilutive | 10,000 | 10,000 |
Note 5 (Details)
Note 5 (Details) - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 |
Note 6 (Details)
Note 6 (Details) - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Disclosure Text Block [Abstract] | ||
Shipping, Handling and Transportation Costs | $ 1,057,400 | $ 740,700 |
Note 7 (Details)
Note 7 (Details) | 3 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 7 (Details) - Schedule of
Note 7 (Details) - Schedule of Information by Industry Segment - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 9,637,800 | $ 7,178,300 |
Earnings (Loss) Before Income Taxes | 531,700 | 387,600 |
Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 2,619,600 | 2,763,900 |
Earnings (Loss) Before Income Taxes | 718,600 | 809,300 |
Usborne Books and More [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 7,018,200 | 4,414,400 |
Earnings (Loss) Before Income Taxes | 952,000 | 615,400 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Earnings (Loss) Before Income Taxes | $ (1,138,900) | $ (1,037,100) |
Note 9 (Details)
Note 9 (Details) - USD ($) | May. 31, 2015 | Feb. 28, 2015 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 9 (Details) [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 1,700,000 | $ 1,400,000 |
Note 10 (Details)
Note 10 (Details) - Jun. 19, 2015 - Subsequent Event [Member] - $ / shares | Total |
Note 10 (Details) [Line Items] | |
Dividends Payable, Date to be Paid | Jun. 19, 2015 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.08 |
Dividends Payable, Date of Record | Jun. 12, 2015 |