EDUC - Earnings call transcript Q1 2023 | Educational Development Corporation

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Operator

Thank you for joining the Educational Development Corporation's first quarter earnings call.

Before beginning the call, we would like to remind you that some of the statements made today will be forward-looking and are protected under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Educational Development Corporation's recent filings with the SEC for a more detailed discussion of the company's financial condition.

With that, I would like to turn the call over to Craig White, the company's President and Chief Executive Officer.

Craig White

Justin. you, Thank welcome, and the call. Thank everyone, you, to our me Sales the of are Financial and White, today Randall Executive Officer. Chief Board; our Officer; Dan Chairman and With Marketing O'Keefe, Heather Cobb, Chief

start to like I'd points off with. Some

by additionally Ukraine, active As disruptions. including headwinds, tied out, X in first this record this work retail Quarter last impacted stores quarter Quarter the keep continuing tailwinds as of increases in difficult. our year was overall remain reopening, back much had we consultants comparisons from as the war school double-digit to price office. such to record primarily economy employees X pointing food year to and resulting hate returning and in fuel continued sequential the and the levels pandemic, inflation

While of team, profitable through to pandemic ability these impacts other created of tumultuous these changes to headwinds, and to manage see to and times. and our our from I'm our resiliency proud employees the global-related manage through remain we continue the the

expand on QX through May and you year. in walk in agreement will recent distribution the in announcement publishing will to the I regard this call, announced our further Usborne We

over I of provide to With the XXXX. Officer, our fiscal financials O'Keefe, turn will first Financial that, for a our Chief now the Dan overview call to brief quarter of

Dan O’Keefe

you, Craig. Thank

XX.X% totaled revenues $X.X decrease first quarter or the totaled $X.X Earnings quarter first million first $XXX,XXX, quarter net the net XXXX. in $XX.X decrease for in highlights to or to last compared the of taxes XX.X% million quarter before reported include $XX.X of fiscal year. a for million a Our $XX.X first million first compared quarter of income the million, reported

down compared last per diluted on $X.XX, decrease $XXX,XXX $X.X $X.XX totaled on Earnings fully XX.X% or $X.X of a from year. earnings compared basis a diluted to share from last XX.X% totaled fully year. a basis million million, Net to

highlights. balance sheet Some

to inventory call, of beginning first the year the As $XX.X this last fiscal approximately we levels million earnings at quarter. of slightly the end peaked mentioned in $XX.X reduced by at and the million

in We continue to current normalize expect as we sales to volumes match volumes. inventory our to future quarters reduce

We to generated fiscal quarter in be inventory sales used sales are third Cash our when in change highest. the biggest inventory the see of from working line our to expect credit. the flow will capital reduce

report now over call turn That back and financial concludes the to the I'll Craig.

Craig White

Thanks, Dan.

depending flow mentioned our or unemployment discretionary inflation previously, customers tailwinds, in business network. on is change in headwinds the I As consultant impacting the of continually cash our change facing or our both and

capitalize is our we in can we on adjust consumer tailwinds Fortunately, and sales declining. discretionary when like now spending costs challenging and are periods

not are impact We idle market. the of the sitting watching

marketing sales are strategy We constantly and our our to opportunity. changing maximize

our call to Chief And pass sales and to Cobb. I'll Officer, opportunities, about the over Heather further Sales Marketing talk

Heather Cobb

Thanks, resulted in to are for some consultants itself uptick a to May as offered Craig. specials marketing a that bit we just doing. we we and that I recent our little and double done trip the want things talk of May, incentive sales points about In have currently various which draw offered June, contest, and an customers. discount books we on from different promotion well May of X. May on actually as in launched opportunities That attention we sales. variety some

is convention The the A first was with convention at week. this a version who but only in various fully on host opportunity running both over the that promotions, our the our also and to X,XXX we've people last some through on best those a end we've virtual July, promotion hybrid the from this event years, had. not of event. attended live few back Monday This on weeks we ago, We've We It our we had response the this attending national a great shipping is We with been site, able in that Tulsa. we X done years. live year, from running event worked vendors and And have event. year. free X convention were did ever of began e-commerce believe had including here which home. we

during XX, excited over running in we date will announced see convention We currently be joining that how generate to started that through many recruits were We've fabulous that recruiting to mid-June. to is team. we running special with and a new in we're special the July had more adding. interest It X,XXX

announced both families have be are inflationary addition, In costs. on a more towards we income usually at looking consultants date, offset July periods and coming months, that later active more customers precede supplemental High increase the for an living growth promotions targeted to and will as a in in even consultants.

the And fall. opportunity door working the increase in more so we try to are into helps going capitalize on especially sales to coming that recruits opportunities that later, because come those

the our update, back over Craig turn I and concludes call again. recruiting sales and will That once to

Craig White

Heather. Thanks,

As Dan mentioned, to strengthen are our we sheet. balance continuing

down to first turns flow line. inventory additional our our cash utilize use will we As And cash into to investor reinstate then capital pay working we this dividends. cash, to will look

educational Additionally, games wanting I've several last I'm calls said get over to and look the expand into to toys, to that puzzles.

content for that presentations. process. We've for seen looking samples. in seen few or been XXXX. talking to be revisions vendors this It's We've create fiscal that But with us. XXXX few a early calendar would on we've so exclusive second And want a of

additional -- at So projects aggressively looking we and products. but are

sales by toward X school sales a see force the our positive active excite our our we're team marketing our products Heather that of looking to consultant count. negatively to sales As sales mentioned, channels turn pandemic, fairs, school of These making exciting channels lots taken periods. booths, rebounding is levels. impacted back also including grow course, changes, book and excited We're And new have and from were to during sales. inflationary pre-pandemic and library and ideas fairs promote

agreement The a want our overdue agreements. comments outdated to is of many about and replaces I Lastly, make Usborne couple long recent new agreement.

does books and children's we each our support to of are in agreement committed change division. who XX-plus-year are marketing these are world, committed relationship, to through new and Publishing produces are working still changes Our the our continue leadership of we There during other of but our some the Usborne best we not to companies. multilevel some they both transitions

I our we questions of that have Now call up provided investors. a some activity, recent to summary open will from the

Justin, if you up for could us. that open

Operator

time, there no [Operator Instructions] questions. this At are

Craig White

comment I make Justin, might another also.

get so this is that over not last X-K. a the call are filings streamline X-K schedule our release and press quarters release down day to the We've our full it press been trying We call. announcing working to on and after our our and several

ago announce we did next quarter. so think until I not on we'll that's probably call probably form part, about great not work on better and an but hour our -- making for this that

Operator

There this time, no are Instructions] at sir. questions [Operator

Craig White

statements make I'll right. closing some All then.

the give hoped be not that two what many the economy, the first been inflation, While recession, factors rising for quarter things world there's or great to is of But still our costs. it's be, last control, the we us by being future. month hope it outside impacted in many,

well, success. and Our working promotions got are We've convention a many huge very do we'll that. was continue to that

couple that need we're smooth trying of sales are one we and most us our on take -- increase two inventory of being It's to then rightsized we Thank us We everyone With our should to to to levels, going our appreciate be from our call. well, then the quarters together. a get I on. another and tied can back sailing so importantly, inventory. kind increase to head you. number reduce But count.

Operator

And your today's Thank that participation. an conference. We you. does do thank excellent you conclude Have day. for

Educational Development (EDUC) 6 Jul 222023 Q1 Earnings call transcript