EDUC - Earnings call transcript Q1 2019 | Educational Development Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Educational Development Corporation First Quarter 2019 Results Conference Call. [Operator Instructions] And as a reminder, this conference may be recorded. I would now like to introduce your host for today's conference, Randall White, CEO and President. Please go ahead, sir.

Randall White

Thank you, Chris. White. Randall is This are I Heather and think announce Dan today -- start Craig and to results. earnings so we'll our Dan us Cobb, O'Keefe, White with With just go

over? could Dan you it So, take

Dan O'Keefe

a $X,XXX,XXX, Thanks, Randall. To to quarter from Earnings our fiscal earnings, $XX,XXX,XXX first reported reported fiscal for million the $X.XX periods. fiscal to increased first pass quarter of the concludes fiscal year from first million before taxes or per our XXXX. share quarter fiscal the approximately in the of the X.X year or first Randall to X.X President. or XXXX first revenues in from quarter of first our CEO results quarter per per $XX,XXX,XXX the from of XX% net reported over first the White, and announce to XXXX. diluted grew XX% This share in XXXX Net taxes grew in the call back the year fully in share to XX% reported grew of approximately XX% $X,XXX,XXX basis share common and XXXX quarter XXX,XXX income XXX,XXX on $X.XX after fiscal $X.XX in $X,XXX,XXX quarter earnings or quarter the of earnings Earnings per I’ll 'XX.

Randall White

digit continued. has growth glad double pretty our well, that Okay, see to

consistent maintained these the The is drive this of XX,XXX. active the a we think the consultants I level of division. really quarter which and third success consultants quarter, of just this active consecutive efforts sales around is during

make comment common do the in that that up on you that? that President add little the are Vice might who want but trade our note thought industry in XX%, a might a I revenue Heather is up You division consultants It’s XX%. bit. Heather, a Cobb to the

Heather Cobb

as growth new to it average and decrease Randall the Sure. that which we see We with the much slight But through is of seeing following trend number the industry have. consultants model. direct growth a is same in pretty the size the in the especially selling happy alluded order sales, were in the in to,

And while on we industry access did were show those able that forward, and necessarily are to that something so is in speculate line that moving information track have to trends. we to not we with

Randall White

that reported So, retail number, and has number really of smaller X% Publishing and quarter revenue over in that's overall year important. volumes retail and is order first first am good store toy key due consultants, and with and accounts. year. think but most see a growth I the being active in we gift division the that’s its a up publishing sales over to up primarily of XX% sales actually But a increase our course number results a last were is to happy the the

and leave add, we We & However and is. might encouraged weeks with there, there probably customer, we’re our with it's which New recently I that. it Noble -- two has our very Heather still very reception visited Barnes were largest happy at our were I been in reception better York, about ago

growth trying in So, that growth can historic contacting major We to in am publishing some can we we divisions. we I myself accounts the volume of division think all increase that levels. see and the see return division. to want if

to in to our we the operational first continue line. make our increase to addition growth revenue quarter In improvements bottom

in constant top or for day more efficient, more update line, completed about increased even they earnings labor it’s that, Line profits And XXX per building that order new it sellers, order tax we’ve pretax make best XX%, our just are an in because -- and recently share laws, the X which smaller in the to another update. be our and to really improvements to completed and back our we XX%, grew is small. orders. update thanks to so operational a these reduce internet the faster. by of further increase the date will moved has involved Our We It processing from

X, Our office than is continue identifying It ship, to costs, overhead our to pretax and reducing implementing we and revenues, -- as also grow operational per it’s profits package cost the reducing in staff. our faster again are our for improvements mentioned. less Line I

benefits So several through the quarters. continue to these next we expect

expect to maybe improve profits than I So can think you us more sales increase.

years struggle we're processing we in of we lot -- that of the missed thinking because million invested about got XXXX hand. X we revenue we about couple from when So that, a had had

we're So it's operational falling technology benefits the place seeing improvements. and and the in of all

what that's have. any answer So basically to I questions. Welcome

Operator

[Operator Instructions] from question first Carter Paul from And Capital Management. our comes Adaptable

is Your line now open.

Paul Carter

and going go of there convention what's sort terms sales guidance national first So how the all, any are you recruiting like relative say of give don't know I and has but about to last in year? momentum? June and do you of can the post convention is July anything impact been how

Randall White

largest some The And themselves convention do unless it earn the indication one of you all national they they realize went always type attend good because cost in very ever. that's pay well, the context.

to who there can recruiting the was because sales are business. a And is, our enthusiasm you generally ones beginning high tell XXX your builders the be in of just they we the attendance, to have XX% And it it's significance our the it that I building do Cana. -- sales motivated, X-day the had people significantly increase so to trip all that took well. Punta earned We top business that they so is of are and of want you And encouraging. in and and top that's

we're the in of recruiting So looks definitely what like sales upbeat rest the and about fall. year

Paul Carter

much your your expectation process might then going titles. to or a that how that next Do are impact Spanish like And announcement year? of publish either great. last Okay, your have recruiting month, regarding you language possibly you numerical sale

Randall White

to the trip X,XXX book was by in are that on thing they the to and the say are access have because X,XXX overwhelmed titles that would week, English. exciting have same most have ones we the the this we for people, the I access it, we just

So the all side. you can same book product have you have not now either speak, of in and but to books bilingual course can so English Spanish

-- will guys. around We XXX of don’t translating XXX between write the with XXX process probably We're January. getting this less, out come them -- maybe somewhere ready translating or for but down to not in

because to factor. key and going make big it's try we're as a as possible splash So as

which in printed material, because to videos have now wasn’t and is Now one recruit Spanish, even goal. that these that emerging and expect the fairs some excited of are of downside material the and consultants. really things we'll money big we speaking The we into can we’re book about. was to -- that across that people the again the that week, country past to goal get the But, I'm this spend was this programs develop week, most Spanish

waiting I've been on years. this for So

Okay, it well is. here

there numerically, know reception any Paul. how announcement, sold So, a But I don't to because was never of good very-very we them.

Paul Carter

to -- reps added X,XXX during And so sales just just X,XXX year average. new XX,XXX finally like or per the you over month on year last then

that? do you two a for XX,XXX rate last recruits a because of Or get you’re than So, at goal active mentioned that now February they're add longer to consultants faster call, year by your are than significantly staying happier figure they have going or you to were your simply to ago? to

Randall White

do that one? want to Heather, you address

Heather Cobb

active seeing, Sure, longer. they we I actually can, are and that’s are that a great staying question Paul,

me not business out help and seeing evolve of our but offered, that them training library that evident as numbers a the and The new earlier will we full the The feel going consultants. a now. think are family that little for be have feel trainings to those more think core that more only is happier, to a they we’re succeed. they what level fledged what are and program, that to like of We rolling will improve is that point be we even bit than get with I Randall They continues that. mentioned opportunity. with

little period. it’ll the but status a be active So combination of I definitely we’re bit maintain think that for a time longer seeing people two of a

Randall White

now. me stories quickly I back see and coming shipping have is Facebook girls. taken faster told retention quite see in we're because but while part about fact from than us a posting a actually like, been bit know to little XXXX don’t ago some and while. of I know. about coming back Amazon, too see I'm and I that. A say, we’re that wouldn’t a the so it’s But guys, Amazon, haven’t haven’t the lady consultants that's on they gosh that ordered ordered longer. is shipping, how I problems great year people and think that people -- fixed overcome I my But shipping that that two we

trying that we are we’re be can ones then that we’ll the recruits with done doing goal and more So retention. -- to better and we have think hit by it

Paul Carter

Okay great. Well, much. me. Thank you for very that’s it

Randall White

Paul. Thanks right. All

Operator

further question Norsini], am of from we a any I [Edward the showing Instructions] have [Operator not me, Pardon questions. line Private do Investor.

Your line is open. now

Unidentified Analyst

again you at they a this think XX question on that are, I they you is XX your to be books more year fiscal growing year XXXX you have about the inventory, and explain in I inventories million. million. you down company last Can as million they're were are as hear me? your about would why would X more, down have fast would Can the hand.

Randall White

quarter we a ship just couldn’t a very million XXth, to door. of four consequently it that it. a XXXX door. that's ship year it in but we higher showed The had of the hear we business ago, the inventory at that the we revenue than as not inventory had and couldn’t question and level thought the had the that the and last support out was because Yes, three happened in to ship year as order, we out when business what It to you, so we weeks to it get that's had we to overwhelmed because orders it X and was last I got November operationally November, and taking fourth inventory million answer. year-end couldn’t get good was level, And easy XXX the

fourth third the occurred in the quarter, in really feel it it but quarter. So

them course. so get to inventory down a correct today to through we back inventory the we get question. volume comfortable level. level back orders us volume is on So the we'll are volume was with the as it what the work a as that we was couldn’t of is it done build of just to It getting, good ship level purpose the we that to on inventory but grow, And we a to and have absolutely of were happened built to the need

Unidentified Analyst

Okay, that's have all I Randall. Thanks.

Randall White

too when to cash down to high. at million flow cash where point or XX helped That or the million. million you cut it of X the help a was year of our credit it your to Can't reduce Okay. -- obviously X this high zero, inventory from X held some million line that flow,

part improve these growth why sales that's were The think the that. that. here, earnings ever see year I were of of the up. We to and a press my starting So out improvements in now quarters are that double-digit best have considerably, believe it's we all we've sales release can put we had, row we three in up

having So by it everybody for questions? is that

Operator

remarks. questions. like further Mr. Randall turn for further the any showing CEO and President not over call to would now White, back any to I'm I

Randall White

are them of was see little down it upbeat stocks in me a you that you. to very see our improvement I of and more X was share nice can But shareholder keeping X I made gave starting days in I what Well, and from as think price. we I here, we case to to bit little think the are confidence

a and for that just more thanks attending guys. it So we we'll hope no questions, continues and call too, day

Dan O'Keefe

Thank everyone. you

Operator

and for thank conference. This does participating in program. you gentlemen, Ladies conclude today's today's

great everyone You may disconnect all and a day. have

Randall White	President and Chief Executive Officer
Dan O'Keefe	Chief Financial Officer and Corporate Secretary
Heather Cobb	Vice President of UBAM
Craig White	Vice President of Information Technology
Paul Carter	Adaptable Capital Management

Educational Development (EDUC) 19 Jul 182019 Q1 Earnings call transcript