EDUC - Earnings call transcript Q2 2025 | Educational Development Corporation

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Operator

Good afternoon ladies and gentlemen, and welcome to Educational Development Corporation's Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, October 10, 2024.

Before beginning the call, you 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 cut variety of factors. We refer you to the Educational Development Corporation's recent filings with the SEC for a more detailed discussion of the company's financial condition. to conference like Hooser. to now would turn over the Steven I go Please ahead.

Steven Hooser

and for Call. you, Educational you, thank Thank operator, everyone, First Quarter Development Second joining XXXX Earnings Corporation's for today

Craig results, results On with press company year-to-date Officer; Cobb, quarter After release O'Keefe, Sales the Chief issued the for release be second available Dan and Marketing and and Financial me are a Heather Officer; call and the Chief will Chief fiscal White, the the www.educpub.com. today market Executive its website company's President announcing Officer. the closed, on at

As forward-looking I'd White, Officer. President and that our suggest the call like we Craig? operator look documents. the company's forward-looking mentioned, the will Craig now statements, and at to Executive a take make Chief to I that, With turn you over

Craig White

the you, will our comments Thank interest. the I continued the and sales some to through update and general the with and pass and everyone, over Steven, appreciate then provide regarding on financials call. your We an Heather to welcome, call start quarter to run call marketing. Dave today's I will

of I and headquarters, XXXX up will with leaseback call update the our the Finally, outlook. progress on sale the Hilti the on complex strategy comments provide of fiscal some an and wrap our remaining

flow. levels reducing bank macroeconomic spending to cash of quarter, both as generate in recruiting inventory coupled challenging levels, of discretionary the brand to to environment customers. necessary current strategic address promotions is inflation with covenants discounts agreement sales ran and our related our we our to and the higher the the offer customers, During partner an second to decisions increase levels our increase are effort These

sales our discounts profits it for quarter. Although increase short and our impacts the in higher term, these pretax gross margin percentage historical the than negatively also our

will talk on and Dan stability, a turn I'll improving about end now have the over the that, we I been changes brief the these operational reducing our is efficiency overall O'Keefe focus of financials. of our these to call on at decisions provide overview priority costs. making the of sales With to While strategic focused call. some to

Dan O'Keefe

Thank Craig. you,

net Our the million second $XX.X $X.X second to compared quarter, quarter compared were million. prior revenues year to summary

fully ] Our loss compared taxes per compared to were before active million brand million. share of partners [ XX,XXX. totaled $X.X income a share on Loss $X.X to Net XX,XXX $X.X million basis. to taxes totaled totaled income $X.X of of diluted to compared income $X.XX Loss before per million. income compared $X.XX

summary $XX.X year. to year-to-date to $XX.X revenues prior our the Net to of million. compared Next million compared

XX,XXX. our Our active compared partners totaled to XX,XXX brand partners from brand average active

share million. taxes per Loss fully million diluted income basis. of to and $X.X before totaled loss before compared $X.X of of on to income compared taxes $X.XX loss of per share compared income $X.X income to million income $X.X $X.XX million totaled a

totaled $X That an concludes for XXXX. February working second credit $X.X of decreased the availability Net August update million on from update. XXXX, Now as at XX, our million Borrowings positions. to million the August capital capital of line million of at $X.X inventories XX, our of end the the $XX.X $XX.X on at quarter. end million with financial of working

Heather? Heather the about Cobb marketing now detail. in call opportunities and I'll further to turn over to talk sales

Heather Cobb

Dan. you, Thank

sold to our several on customers changes books contest. launched for our incentive Craig we travel National bring those. shortly held we and Convention Escape through our a including on promos, July to our Story success continue days After initiatives incentives, where convention, sales very many dollar $X inventory partners This included mentioned the new we paper we As strategic successful which of offered brand after price to new earlier, for June happened side. to make

recruiting summer where a promoting promotion support the In provided addition, incentives training, we leadership. offered for and we

side as to Our and paper to on brand overall partner as retention be strategies growth pie move sales continues inventory. on focus well the

book Our as retail of turn specialty Lab Craig division independent well in and to This update. shops, over gift offerings. I back and continues to remarks. Greg? especially Smart relation see our success stores current our customers closing working call new marketing sales Toys for with with line the concludes will as to

Craig White

Thank you, both Heather and Dan.

this only biggest headquarters expense, levels, at but down us sale million savings allow One is is XXXX in from work positive complex. end a $XX million excess bring to approximately August. building, leaseback we reduced inventory proceeds our in which will events to and continue fiscal $XX million will of of excess. our the of The the to build sale $XX not the as cash Hilti anticipated position interest the That's from

Selling as past the size not is an of months. the have easy we over this complex transaction XX learned

Systems, marketability sale in Energy leasing improvement on in complexes new However, One the of based strong but their the a that [indiscernible]. capital complex is which only to add improvements leased we we space. they began work tenant, demand XX% of the income the tenant remain confident strengthens did just the committed interest the have occupying on not is in new complex driving under several Cruso levels. This recent to

to land, XX, of OSHA. the EDC's will September the excludes excess letter As of complex. we which a previously agreement leaseback under remain executed Hilti intent announced sell we The acres XX on of

including from recent completed is and costs, no years. Making made our reduce but necessary to bank we with XX%. the was needs which pay the change reduce a strategic proceeds and year reduced that approximately this us costs the to past fully The around over back expect increased help move this of expected forward. expected by has have borrowing have calendar costs to not improvements several changing outbound debt, We leaving is which other the parcel easy, carrier, freight sale, be significantly freight limited our outbound end moving to to

the here Oklahoma. Utah both From was the quarter will consolidation changes reduction a go-forward operational these cost performance on of learning Salt improve City, after [indiscernible] Another wrap-up second our in [indiscernible] of basis. our and the Lake end

our shareholders our to than Lastly, stronger for want our confident their all more and during I'm commitment in emerge before. mission for resilient collective I brand employees their patients, period. and in thank of to to ability customers their difficult ever partners loyalty this our for our

that Now summary we recent the activity, I'd have provided a the back turn to and of to answer. for like over question some call operator

Operator

Paul Carter Capstone question Management. Your from first comes from Asset

line Your ahead. Please open. now is go

Paul Carter

everyone. afternoon, Good you. Thank

talking Just the all. of first building, about

that Hilti Can through you Complex. transaction. investor a got that little you've third this talk through, is lease the So investor third two but groups Cruso are Energy the more, this just bit how there. confident investor will now close announced on the fell you've group first know the like buying group I you the

Craig White

Yes.

two were related groups The at actually link. arms first somewhat

renegotiate So were considering to of to using got and deadlines to group. and where full that it sale I'm the bank we But one towards terminate kind period, our on. had support they move end price, negotiation the that the LOI of of

Paul Carter

structure or is this a group, with the the transaction more of this details little solid? [indiscernible] investor bit you feel

Craig White

Yes, do. Yes. I

offer X with the a each XX was They the our which their but forward So best they've of them. put moving couple last for months. and sidelines time increased offer offers, they've in not been on to

Dan O'Keefe

holdings as Yes. They campuses we've look to if that at Partner thing similar their the would I to have you on add The that, is Holdings, Paul, this only Internet. disclosed this. new group

an healthy structure holdings complex, the the real estate is not some entire where of complex partner to and got So a underneath the estate similar kind you've management of a of campus that's a of real kind just small is this name.

Paul Carter

be sales the intent price that of That's you'll -- over then What's $XX in figure Okay. net And amount million. the so just is great. letter the you receiving?

Dan O'Keefe

net is the of to got at where going can to the identify letter what net number point executed haven't [indiscernible]. be. executed, the kind price but to we we a disclose we're the Well, agreement intent not We've

Paul Carter

Okay.

Okay. goes thought that pay will you're inventory to new so, with credit different through, institution you entering purchases? you off be And might And agreement just have then a facilitate through like? another that parameters what your of agreement bank, going look if into assuming to

Dan O'Keefe

We interested couple some to needs. give working parties a have us capital of different small

will that very or need a right to some buy about But borrowing talking we be months. XX back we're You're paid small will that inventory.

replenishment we agreement expect and just So we need do inventory that do some delaying of to do that and purchases some metals been as absolutely and right close you're to forward. soon -- this of kind we and we've that as move

Paul Carter

of new Great. an know understand significant sales net Has which of that, sort inability the is can your of drag has much inflated on And purchase I that inventory revenues? Pie's impacted you don't I how related has that, to last to couple quarters? stocks, of like Paper sort quantify a meaningful but been that and how recent -- speaking of that out so

Heather Cobb

give and color my that Paul, on question. jump I'll

replenished a of And so are the do that lesser you we it's there? to well waiting be think titles that, little yes, as with a there's percentage of think me? I we of I that it bit free say in think know a out a I as absolutely, place number can specific hear has can is fact. a representative it stock number. I because truly Paul, to don't

Paul Carter

cut Yes, you can there I moment. for you Oh, out sorry. now. a hear

Heather Cobb

is one that say do of worries. think a always we things various worries. No identify that right we to now to the No, specific I we're an as are. added The injury insult dealing any there's economy number factor. that No factors hard it's with

like so way some forward. successful what pie a retail our looks for offerings both paper the to time the out sustainable actually and and taking as is catalog going move on decisions this we division of that to building And be strategic in we're and that make just

Paul Carter

recently strategies, specifically with filed What of a sales reps those know their bankruptcy, Okay. so to to else independent using looking time sort that uncertainty introduces I are And of quite strategies for thinking do sales bit their are probably you Tupperware now. probably guys something reps. which Tupperware right of attract for

Heather Cobb

the anyone selling our are. the That's can a products, industry. outreach said, making and see with we what obviously, or selling of that out to fill consultants our programs willing ourselves we really brand seeing Tupperware, different are and their to arm just to want but generations has. doing wanting can not like time strategies, they're adapt and as We're as interesting who that looking our also question, another They the those available various would so working and and with in. to now to one-to-one opportunity just ready and And where children's for that an want selling are we books. necessarily may We're It's income can they that means specifically Tupperware Yes. because be an targeted in on offerings prominent with any they're direct the we're it I society ambassadors right Paul. things are different expecting not bring not going of

Paul Carter

sell Okay. of ambassador Curious, your many do partners brand for brand although Tupperware? or

Heather Cobb

question. don't But are think great for. a else of the they sell can't by doing that top track head, specifically who side I That's of side. We many that my very off

Operator

will this the Mr. questions go further at Craig no time. are There to I Please White. now ahead. give call

Craig White

Thank of more really future. and kind we've our get right. efficient. we're to to excited it's adapted been and Paper All challenging changed. as gotten sale business about of but through some a we offerings, mean Pie We've year, ready transaction I we're And poised somewhat you. get I the and think division back usual. We've Yes, go. the leaseback

appreciate on us an great your to and joining our in call Thank for everyone, continued January you, We XXXX. support update forward providing day. and today. a have thanks, additional look So

Operator

Ladies you and conference concludes Thank your participation. today's gentlemen, call. for this

now disconnect. You may

Educational Development (EDUC) 10 Oct 242025 Q2 Earnings call transcript