Educational Development Corporation (NASDAQ:EDUC) Q1 2020 Earnings Conference Call Transcript
Jul 16, 2019 • 04:00 pm ET
Good day, ladies and gentlemen, and welcome to the Educational Development First Quarter Fiscal Year 2020 Results Conference Call. [Operator Instructions]
I would now like to turn the conference over your host Mr. Randall White, Chief Executive Officer and President. Sir, you may begin.
Randall W. White
Thank you, Valerie. Welcome to the call gentlemen and ladies. Here with me today, I want to introduce Craig White, our Chief Operating Officer; and also Dan O'Keefe, our Chief Financial Officer. And I think we are going to start with Dan, he'll give you a highlight of the previous earnings release.
Dan E. O'Keefe
Thank you, Randall. As a recap of our earnings for the quarter, net revenues for the first quarter of fiscal 2020 were approximately $27.6 million, down $2.4 million or 8% from approximately $30 million reported in the first quarter of fiscal 2019. Earnings before income taxes totaled approximately $1.8 million, a decrease of $0.6 million or 26% from approximately $2.5 million in the first quarter of fiscal 2019.
Pretax profit as a percentage of net revenues were 6.7% in the first quarter of fiscal 2020, compared to 8.3% reported in the first quarter of fiscal 2019. Net earnings in the first quarter of fiscal 2020 totaled approximately $1.4 million, a decrease of $0.4 million or 25% from approximately $1.8 million in the first quarter of fiscal 2019.
Earnings per share on a fully diluted basis decreased $0.05 a share or 23% from $0.22 per share reported in the first quarter of fiscal 2019 to $0.17 per share reported in the first quarter of fiscal 2020.
This concludes our earnings results and I'll pass the call back to Randall.
Randall W. White
Okay Dan, thanks. Well investors, this is the first quarter that I've had to report a decline in sales in a very long time. This is not an indication of where we're headed for the fiscal year or beyond, I don't think. But because we continue to expect growth in both divisions of the Company, actually. The decline, if there's any, explain what happened, the decline resulted from a very successful recruiting program in February of 2018, which was in the quarter we're comparing to, and we had 8,800 new consultants that month and pretty much that resulted in the 10% [Phonetic] revenue growth for the quarter. So we've actually, -- we actually grew our average consultants between quarter four last year and quarter one of this year. So that big negating is compared since first quarter, not likely in the remaining quarters.
But, I can tell you guys before the average number of active consultants is not exactly a firm number, but -- it is a guideline. And we'll tell you that we've had a very successful current recruiting effort. And so far, halfway through the month, we're up about, more than about 400% over the same month last year, July. So we're having another very nice surge in recruiting. And I think it's coming from the fact that we had a very successful national convention.