EXHIBIT 99.1
PRESS RELEASE
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EDUCATIONAL DEVELOPMENT CORPORATION REPORTS SIX MONTHS RESULTS
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TULSA, Okla.--October 12, 2006--Educational Development Corporation (NASDAQ:
EDUC) reported today that net revenues for the six months ended August 31, 2006
were $14,591,347 compared with $15,020,831 for the same six-months a year ago.
Net earnings for the six months ended August 31, 2006 were $1,120,637 compared
with net earnings of $1,140,047 for the same six-months a year ago. Net revenues
for the three months ended August 31, 2006 were $6,484,370 compared with
$6,794,152 for the same period last year. Net earnings for the three months
ended August 31, 2006 were $423,989 compared with $394,847 for the same period
last year.
Net revenues in the Publishing Division declined 7.4% during the 2nd quarter and
5.8% for the first six months of fiscal year 2007. The Company attributes this
to the fact that one of its major chain store clients had a major promotion last
year in the 2nd quarter but has not had a similar promotion yet this year. Net
revenues in the Usborne Books at Home Division declined 3.1% during the 2nd
quarter and 1.6% for the first six months of fiscal year 2007. The Company
previously announced that in the month of September 2006 over 3,200 new sales
consultants joined the Home Business Division. The Company expects the influx of
new sales consultants will have an immediate impact as they have generated over
$140,000 in sales in the first 10 days of October. While actions have been taken
to stimulate growth internally, the Company is also currently exploring
possibilities for external growth through acquisitions.
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 August 31 Six Months Ended August 31,
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2006 2005 2006 2005
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Net Revenues $ 6,484,370 $ 6,794,152 $ 14,591,347 $ 15,020,831
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Earnings Before Income Taxes $ 700,889 $ 638,447 $ 1,791,437 $ 1,840,947
Income Taxes 276,900 243,600 670,800 700,900
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Net Earnings $ 423,989 $ 394,847 $ 1,120,637 $ 1,140,047
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Earnings Per Share:
Basic $ 0.11 $ 0.11 $ 0.30 $ 0.30
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Diluted $ 0.11 $ 0.10 $ 0.29 $ 0.29
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Weighted Average Shares:
Basic 3,756,042 3,745,057 3,756,251 3,741,595
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Diluted 3,869,908 3,905,290 3,878,424 3,903,439
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Contact:
Educational Development Corporation
Randall White, (918) 622-4522