Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States. It operates through two segments, ...
Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer
Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Educational Development Corporation's financial and operating results for its fiscal 2027 first quarter results. As a reminder, this conference is being recorded. On the call today are Craig White, President and Chief Executive Officer, Heather Cobb, Chief Sales and Marketing Officer, and Dan O'Keefe, Chief Financial Officer. After the market closed this afternoon, the company issued a press release announcing its results for the fiscal 2027 first quarter results. The release will be available later today on the company's website at www.edcpub.com. Before turning to the prepared remarks, I 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 filing 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? Craig White: Thank you, Chloe, and welcome everyone to the call. We appreciate your continued interest. I will start today's call with some general comments regarding the quarter. I will pass the call over to Dan to run through the financials, after which Heather will provide an update on sales and marketing and IT projects, and then I will provide an update on our plans for the rest of fiscal 2027. During March, we ran a recruiting special surrounding our March 14th, Pi Day, which yielded better than expected results. We added over 1,300 new brand partners, which brought our active brand partner numbers above 5,200, and we have maintained this level of brand partners to this day. This was a 20% growth in brand partners numbers since the end of last year, and continuing our brand partner growth is a key focus. Also, at the beginning of the quarter, we made several expense reductions, which are expected to exceed $1.2 million in savings for the fiscal year. These savings, which include decreases in pay for our executive team, were made to improve our cash flow and give us the ability to continue to execute our conservative purchasing plan to replenish some of our best-selling titles, as well as bring in new titles. Bringing in new titles energizes our brand partners and gives our retail reps some new products to present. I'm happy to say that many of these new titles came in throughout the last several months, and we have introduced them with much very early success. That is some confirmation that our strategy is on point. The results for the quarter were driven by our lower revenue levels, offset by lower expenses. The focus of our fiscal 2027 turnaround plan remains on growing our revenue and brand partner levels back to …
Est. EPS $0.96 · Revenue $145.10M · 1 analysts
Est. EPS $0.02 · Revenue $26.20M · 1 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Craig White | President, Chief Executive Officer & Chairman of the Board | USD 332,800 | Male | 1969 | Active |
Daniel E. O'Keefe | Corporate Secretary & Chief Financial Officer |
| USD 279,100 |
| Male |
| 1969 |
| Active |
Heather N. Cobb | Chief Sales & Marketing Officer | USD 275,400 | Female | 1977 | Active |
Est. EPS $0.28 · Revenue $40.00M · 1 analysts
Est. EPS $0.04 · Revenue $26.40M · 1 analysts
EPS $-0.64 · Revenue $34.19M
| $21.8M |
| -36.2% |
| +47.4% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $3.3M | +163.4% | +33.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +62.4% | +1.4% | -22.5% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | -3.6% | +81.8% | -98.8% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +15.3% | +199.3% | +54.8% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $1.5M | -47.2% | +122.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +6.7% | -17.3% | +115.2% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 15.7% | -80.3% | +3.8% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 3.33x | +137.3% | -3.9% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $57.0M | -27.2% | -7.2% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 0.38 vs 0.96 | -60.4% | -0.16 vs 0.41 | -139.0% |
| Revenue Surprise | $21.8M vs $145.1M | -85.0% | $4.5M vs $53.1M | -91.5% |
| Form Type |
|---|
| Filing Date |
|---|
| SEC Filing |
|---|
| Feb 28, 2026 | 0 | 10-K | May 19, 2026 | View |
| Feb 28, 2025 | 0 | 10-K | May 19, 2025 | View |
| Feb 29, 2024 | 0 | 10-K | May 21, 2024 | View |
| Feb 28, 2023 | 0 | 10-K | May 17, 2023 | View |
| Feb 28, 2022 | 0 | 10-K | May 5, 2022 | View |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Nov 14, 2025 | White Craig M | director, officer: CHIEF EXECUTIVE OFFICER | COMMON STOCK | A | 33,029 | — |
| Nov 14, 2025 | White Craig M | director, officer: CHIEF EXECUTIVE OFFICER | Common Stock | D | 11,419 | $1.35 |
| Nov 14, 2025 | O Keefe Daniel E | officer: CHIEF FINANCIAL OFFICER | Common Stock | A | 9,407 | — |
| Nov 14, 2025 | O Keefe Daniel E | officer: CHIEF FINANCIAL OFFICER | Common Stock | D | 11,419 | $1.35 |
| Nov 14, 2025 | Cobb Heather N. | officer: CHIEF SALES & MKTG OFFICER | Common Stock | A | 18,158 | — |
