Educational Development Corp. (EDUC, Financial) filed Quarterly Report for the period ended 2012-05-31.
Educational Development Corporation has a market cap of $15.6 million; its shares were traded at around $4.05 with a P/E ratio of 10.8 and P/S ratio of 0.6. The dividend yield of Educational Development Corporation stocks is 12.1%.
The Publishing Division s gross sales decreased $323,300 during the three month period ending May 31, 2012 when compared with the same quarterly period a year ago. We attribute this to a 42% decrease in sales to major national accounts, offset by a 32% increase in sales to smaller retail stores and a 9% increase in inside sales.
The UBAM Division s discounts and allowances were $796,200 and $607,700 for the quarterly periods ended May 31, 2012 and 2011, respectively. The UBAM Division is a multi-level selling organization that markets its products through independent sales representatives (“consultants”). Sales are made to individual purchasers and school and public libraries. Most sales in the UBAM Division are at retail. As a part of the UBAM Division s marketing programs, discounts between 40% and 50% of retail are offered on selected items at various times throughout the year. The discounts and allowances in the UBAM Division will vary from year to year depending upon the marketing programs in place during any given year. The UBAM Division s discounts and allowances were 16.3% and 14.3% of UBAM s gross sales for the quarterly periods ended May 31, 2012 and 2011, respectively.
The Publishing Division s discounts and allowances are a much larger percentage of gross sales than discounts and allowances in the UBAM Division due to the different customer markets that each division targets. The Publishing Division s discounts and allowances were $2,432,300 and $2,657,600 for the quarterly periods ended May 31, 2012 and 2011, respectively. The Publishing Division sells to retail book chains, regional and local bookstores, toy and gift stores, school supply stores and museums. To be competitive with other wholesale book distributors, the Publishing Division sells at discounts between 48% and 55% of the retail price, based upon the quantity of books ordered and the dollar amount of the order. The Publishing Division s discounts and allowances were 51.4% of Publishing s gross sales for the quarterly period ended May 31, 2012 and 52.6% for the quarterly period ended May 31, 2011.
Cost of sales increased 1.5% for the three months ended May 31, 2012 when compared with the three months ended May 31, 2011. Cost of sales as a percentage of gross sales was 25.8% and 26.2%, respectively, for each of the three month periods ended May 31, 2012 and May 31, 2011. Cost of sales is the inventory cost of the product sold, which includes the cost of the product itself and inbound freight charges. Purchasing and receiving costs, inspection costs, warehousing costs, and other costs of our distribution network are included in operating and selling expenses, not in cost of sales. These costs totaled $324,900 in the quarter ended May 31, 2012 and $272,000 in the quarter ended May 31, 2011.
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Educational Development Corporation has a market cap of $15.6 million; its shares were traded at around $4.05 with a P/E ratio of 10.8 and P/S ratio of 0.6. The dividend yield of Educational Development Corporation stocks is 12.1%.
Highlight of Business Operations:
The UBAM Division s gross sales increased $623,300 during the three month period ending May 31, 2012 when compared with the same quarterly period a year ago. This increase resulted from the addition of our fund raiser option “Cards For a Cause”, increases of 8% in both school and library sales and direct sales, 5% in internet sales, and 2% in home party sales.The Publishing Division s gross sales decreased $323,300 during the three month period ending May 31, 2012 when compared with the same quarterly period a year ago. We attribute this to a 42% decrease in sales to major national accounts, offset by a 32% increase in sales to smaller retail stores and a 9% increase in inside sales.
The UBAM Division s discounts and allowances were $796,200 and $607,700 for the quarterly periods ended May 31, 2012 and 2011, respectively. The UBAM Division is a multi-level selling organization that markets its products through independent sales representatives (“consultants”). Sales are made to individual purchasers and school and public libraries. Most sales in the UBAM Division are at retail. As a part of the UBAM Division s marketing programs, discounts between 40% and 50% of retail are offered on selected items at various times throughout the year. The discounts and allowances in the UBAM Division will vary from year to year depending upon the marketing programs in place during any given year. The UBAM Division s discounts and allowances were 16.3% and 14.3% of UBAM s gross sales for the quarterly periods ended May 31, 2012 and 2011, respectively.
The Publishing Division s discounts and allowances are a much larger percentage of gross sales than discounts and allowances in the UBAM Division due to the different customer markets that each division targets. The Publishing Division s discounts and allowances were $2,432,300 and $2,657,600 for the quarterly periods ended May 31, 2012 and 2011, respectively. The Publishing Division sells to retail book chains, regional and local bookstores, toy and gift stores, school supply stores and museums. To be competitive with other wholesale book distributors, the Publishing Division sells at discounts between 48% and 55% of the retail price, based upon the quantity of books ordered and the dollar amount of the order. The Publishing Division s discounts and allowances were 51.4% of Publishing s gross sales for the quarterly period ended May 31, 2012 and 52.6% for the quarterly period ended May 31, 2011.
Cost of sales increased 1.5% for the three months ended May 31, 2012 when compared with the three months ended May 31, 2011. Cost of sales as a percentage of gross sales was 25.8% and 26.2%, respectively, for each of the three month periods ended May 31, 2012 and May 31, 2011. Cost of sales is the inventory cost of the product sold, which includes the cost of the product itself and inbound freight charges. Purchasing and receiving costs, inspection costs, warehousing costs, and other costs of our distribution network are included in operating and selling expenses, not in cost of sales. These costs totaled $324,900 in the quarter ended May 31, 2012 and $272,000 in the quarter ended May 31, 2011.
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