EXHIBIT 99.1
PRESS RELEASE
EDUCATIONAL DEVELOPMENT CORPORATION
ANNOUNCES RECORD THIRD QUARTER 2008 RESULTS
TULSA, OK --January 11, 2008--http://www.edcpub.com --Educational Development
Corporation (NASDAQ: EDUC) today reported results for the third quarter and the
first nine months of fiscal 2008, ended November 30, 2007.
Third quarter earnings per share were an all-time record for the Company,
reversing a three year decline for this period. Net revenues were $9,903,500 for
the third quarter ended November 30, 2007, the highest in four years and second
highest in the Company's history, compared to $9,820,500 for the same period
last year. Earnings per share increased to $.23 from $.21 due to continued
efficiency in operations.
The Publishing Division, which sells to retail outlets, increased net revenues
11% for the quarter, resulting in part from strong sales to independent
retailers and specialized markets which were up 34%. Sales to major chains were
down 6% over the same quarter the previous year due to a 49% decline in sales to
one major chain. This is an improvement, however as sales to that chain were off
57% in the first two quarters and we anticipate this improvement will continue
during 2008.
The Home Business division experienced a slight decline of 2% in net revenue
which is reflective of changing sales mix. Home parties and direct sales were
down which was somewhat offset by increasing Internet sales. The Company
launched an aggressive new program in January designed to add new sales
consultants. This program was previously implemented with our affiliate
companies in England and Canada and has proven successful in restoring sales
growth.
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
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Three Months Ended November 30, Nine Months Ended November 30,
2007 2006 2007 2006
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NET REVENUES $ 9,903,500 $ 9,820,500 $ 23,728,400 $ 24,411,900
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EARNINGS BEFORE INCOME TAXES 1,406,500 1,304,000 2,951,100 3,095,400
INCOME TAXES 529,700 505,800 1,109,200 1,176,600
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NET EARNINGS $ 876,800 $ 798,200 $ 1,841,900 $ 1,918,800
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BASIC AND DILUTED EARNINGS
PER SHARE:
Basic $ 0.23 $ 0.21 $ 0.49 $ 0.51
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Diluted $ 0.23 $ 0.21 $ 0.48 $ 0.49
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WEIGHTED AVERAGE NUMBER OF
COMMON AND EQUIVALENT SHARES
OUTSTANDING:
Basic 3,755,704 3,758,422 3,760,554 3,756,975
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Diluted 3,845,694 3,872,277 3,867,223 3,876,375
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About Educational Development Corporation
Educational Development Corporation sells the Usborne line of educational
children's books through a multi-level sales organization of independent
consultants (http://www.ubah.com), through 5,100 retail stores and over the
Internet. Over 1,400 different titles are available for children of all ages,
with frequent new additions.
Contact:
Educational Development Corporation
Randall White, (918) 622-4522