Educational Development Corporation (NASDAQ:EDUC) Q3 2020 Earnings Conference Call - Final Transcript
Jan 16, 2020 • 04:00 pm ET
Ladies and gentlemen, thank you for standing by and welcome to the Educational Development Corporation Third Quarter Fiscal 2020 Investor Conference Call. At this time, all participants are on a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.
I would now like to hand the conference over to your speaker today, Mr. Randall White, President and Chief Executive Officer. Please go ahead, sir.
Thank you, Angela. Welcome to you guys to the -- welcome to the third quarter investor call. Along with me today on the call are Heather Cobb, Chief Sales and Marketing Officer; Craig White, Chief Operating Officer and Dan O'Keefe, Chief Financial Officer.
So with that, I want to pass it first off to Dan, so he can talk about the financial results for the third quarter. Then, I'll come back and have a few more comments about the results. Dan?
Thank you Randall. Net revenues for the third quarter of fiscal 2020 were approximately $40.8 million, an increase of $0.3 million or 1% from approximately $40.5 million reported in the third quarter of fiscal 2019. Earnings before income taxes for the third quarter totaled approximately $3.8 million, which was consistent with the earnings before income taxes of $3.8 million that we reported in the third quarter last year.
Pre-tax profit as a percentage of net revenue was also consistent between the common third quarters, coming in at approximately 9.4% for the quarter. Net earnings in the third quarter of fiscal 2020 totaled approximately $2.7 million compared with approximately $2.8 million in the third quarter of fiscal 2019.
Earnings per share on a fully diluted basis decreased $0.01 a share, from $0.34 a share reported in the third quarter of fiscal 2019 to $0.33 per share reported in this third quarter of fiscal 2020. This concludes the earnings results and I'll pass the call back over to Randall.
Okay, Dan. Thank you. I'll give you guys a few comments here of the operations, what's happened. The business is seasonal as you probably know, and the third quarter is our largest volume quarter of the year. So it's kind of nice to have an increase in the largest quarter. Also, the two previous ones were down a bit, so to be up in our largest quarter to me is significant.
UBAM division reported a 2% growth over the third quarter last year with the growth primarily coming from new sales associates that signed up. We ran a Special in the second quarter. We ran a 30th Anniversary Special and we brought in 10,000 new consultants and they're probably the primary reason why we grew a little bit, but there's always things that we're not sure about. As we reported in the last quarter earnings, we expect these new consultants to contribute to our growth and that expectation did become a reality.
We also have some nice expectations going forward, if you have a question about it, we can talk. The Publishing division was