Educational Development Corporation (NASDAQ:EDUC) Q1 2021 Earnings Conference Call - Final Transcript

Jul 15, 2020 • 04:00 pm ET

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Educational Development Corporation (NASDAQ:EDUC) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Educational Development Corporation's First Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your presenter, Mr. Randall White. Thank you. Please go ahead, sir.

Executive
Randall W. White

Okay. Erika, Thank you. Welcome, everyone, to the quarterly investors call. I will tell you here in the room with me, we have Heather Cobb, our Chief Sales and Marketing Officer; Craig White, our Chief Operating Officer; and Dan O'Keefe, our Chief Financial Officer. What I'm going to do first is hand it off to Dan to give you a review of the quarterly results.

Executive
Dan E O'Keefe

Thank you, Randall. Here is our first quarter results for fiscal 2021.

Net revenues for the first quarter were approximately $38.3 million, up $10.7 million or 38.8% from approximately $27.6 million reported in the first quarter of fiscal 2020. Pre-tax profits for the first quarter totaled $2.6 million, an increase of $800,000 over the pre-tax profit of $1.8 million reported in the first quarter last year. Pre-tax profit as a percentage of net revenues increased from 6.7% in the first quarter of last year to 6.9% in the first quarter of fiscal 2021.

Net earnings in the first quarter of fiscal 2021 totaled $1.9 million compared to approximately $1.4 million reported in the first quarter of fiscal 2020. Pre-tax earnings grew 41.6% over the first quarter last year. Earnings per share on a fully diluted basis increased $0.06 per share from $0.17 reported in the first quarter of fiscal 2020 to $0.23 per share reported in the first quarter of fiscal 2021. Earnings per share for the quarter increased 35.3% over last year.

This concludes the earnings results, and I'll pass the call back to Randall.

Executive
Randall W. White

Okay, Dan. Thank you.

Well, guys, what a heck of a quarter. And it's kind of an unusual quarter, too, because March started out with our first kind of hint about the virus, the COVID-19. And wow, things changed for everybody in the world during that period. Of course, it goes back to February, but for us, we started seeing it in March. And what happened was, on March, it was down. Well, let me tell you what happened.

Publishing, of course, was down because stores closed. Our school and library sales and any other face-to-face like booths and what have you, were basically non-existent because that was gone. The UBAM consultants were disrupted all over the country. And our tenant had asked for a 90-day rate abatement. And I went, okay. Well, I tell you, we granted that because we got a pretty good deal with our tenant. And so we said, okay. So quarterly sales down 25% in March. Not a -- kind of gloomy there forecast. However, April came. And wow, did April come in strong. For whatever reason, we just got inundated with orders, and we handled it. Our ability to take these on the Internet and process these went off