EXHIBIT 99.1
PRESS RELEASE
EDUCATIONAL DEVELOPMENT CORPORATION REPORTS 3rd QUARTER EARNINGS
TULSA, Okla.--January 13, 2005--Educational Development Corporation (NASDAQ:
EDUC) reported today that net revenues for the nine months ended November 30,
2004 were $24,380,200 compared with $24,134,200 for the same nine months a year
ago, an increase of 1.0%. Net earnings for the nine months ended November 30,
2004 were $2,086,200, an increase of 4.8% over net earnings of $1,991,400 for
the same nine-months a year ago. Net revenues for the three months ended
November 30, 2004 were $9,187,700 compared with $9,976,700 for the same period
last year, a decrease of 7.9%. Net earnings for the three months ended
November 30, 2004 were $809,400 compared with $871,100 for the same period last
year, a decrease of 7.1%.
The 2nd and 3rd quarters' sales and earnings were lower than previous year's
results, primarily due to the softening demand during the summer months in both
divisions and other one-time events including national weather related problems.
However, management reports increases in net earnings and net revenues in the
months of November and December and the trend has continued for the first two
weeks in January.
Effective today, the Company launched the most comprehensive Marketing and
Promotion Program in its history. The program consists of additional promotional
sales aids and strategy to increase market penetration for the Retail Division
and the Home Business Division. Company management believes that in the next few
quarters their long-term strategic objective of recording a 15-20% annual growth
in sales and earnings will be achieved.
The management of the Company continues to have confidence in the value of the
stock. Between March 1, 2004 and January 12, 2005 the Company has acquired over
479,000 shares of stock under the Stock Repurchase Program. Stock purchases and
the addition of a $600,000 warehouse were funded primarily through operational
cash flow.
Three Months Ended November 30, Nine Months Ended November 30,
------------------------------- -------------------------------
2004 2003 2004 2003
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Net Revenues $ 9,187,700 $ 9,976,700 $ 24,380,200 $ 24,134,200
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Earnings Before Income Taxes $ 1,298,100 $ 1,415,600 $ 3,359,200 $ 3,215,400
Income Taxes 488,700 544,500 1,273,000 1,224,000
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Net Earnings $ 809,400 $ 871,100 $ 2,086,200 $ 1,991,400
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Earnings Per Share:
Basic $ 0.21 $ 0.22 $ 0.53 $ 0.51
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Diluted $ 0.20 $ 0.20 $ 0.50 $ 0.46
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Weighted Average Shares:
Basic 3,878,975 3,974,715 3,954,306 3,933,728
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Diluted 4,055,713 4,322,308 4,147,691 4,292,120
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Contact:
Educational Development Corporation
Randall White, (918) 622-4522