EXHIBIT 99.1
PRESS RELEASE
EDUCATIONAL DEVELOPMENT CORPORATION REPORTS NINE MONTHS RESULTS
AND DECLARES ANNUAL DIVIDEND
TULSA, Okla.--January 12, 2006--The Company reports that net revenues increased
slightly, up 4% for the quarter, after experiencing a small decline in the
previous two quarters. Net revenues in the Publishing Division increased 15% for
the quarter ending November 30, 2005 when compared with the same quarter last
year and are up 13% for the nine months. This trend has continued in the
Publishing Division with December recording a 24% increase in net revenues.
Net revenues in the Home Business Division increased 1.3% for the three months
ended November 30, 2005 after experiencing a 10.5% decline in the previous three
months. The increase is attributed to additional sales force incentives put in
place in August and continued through December. The additional incentives were
also responsible for a record number of new sales associates joining the
organization, 1,500 during the last week of August and the month of September.
The additional incentives, along with increased shipping costs, were primarily
responsible for lower margins in the quarter.
The Company's continued profit and cash flow generation have allowed the
repayment of virtually all of the debt under its current loan agreement, with
the current balance under $100,000.
The positive cash flow and debt position has prompted the Board of Directors to
authorize a $0.20 per share cash dividend, a 33% increase over last year's cash
dividend of $0.15 per share. The dividend will be paid on May 12, 2006 to
shareholders of record May 2, 2006.
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.
Three Months Ended November 30, Nine months Ended November 30,
--------------------------------- ---------------------------------
2005 2004 2005 2004
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Net Revenues $ 9,683,000 $ 9,331,100 $ 24,703,800 $ 24,876,600
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Earnings Before Income Taxes $ 1,167,100 $ 1,298,100 $ 3,008,000 $ 3,359,200
Income Taxes 428,000 488,700 1,128,900 1,273,000
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Net Earnings $ 739,100 $ 809,400 $ 1,879,100 $ 2,086,200
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Earnings Per Share:
Basic $ 0.20 $ 0.21 $ 0.50 $ 0.53
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Diluted $ 0.19 $ 0.20 $ 0.48 $ 0.50
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Weighted Average Shares:
Basic 3,753,923 3,878,975 3,745,704 3,954,306
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Diluted 3,898,439 4,055,713 3,901,772 4,147,691
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Contact:
Educational Development Corporation
Randall White, (918) 622-4522