Educational Development (EDUC) 27 May 202020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Educational Development Corporation Fiscal 2020 and Investor Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Mr. would to conference I speaker your Instructions] like the to over [Operator Randall White. please you, Thank go ahead sir.

Well, to the much. Welcome call. very thank quarterly you investor everyone

to are with the officer, a Marketing also bunch of Officer. and us Dan have one Chief here the Here O'Keefe, Sales our we us we're White, of turn Officer stuff the our Chief some Chiefs now. room earnings call in it right going Got today Dan, Operating Heather Craig our results. Cobb, and Financial over on them to and Chief give on

All right, back give quick right over. year the fourth update on I'll and then quarter it a then turn and the

million, million of So from and however or for at net quarter Pretax in fiscal the reported of fourth revenues quarters last the fourth fourth $X.X $XX.X approximately down XX.X% the $XX approximately fourth consistent between profit fiscal X.X%. XXXX. in year quarter the was Net net from of earnings year fourth million the were this to fourth diluted XXXX as right reported just quarter of per as well in reported of per consistent quarter around year XXXX. year last earnings million. $X.XX share decreased on remain fiscal a reported basis share quarter Earnings fully the last $X.XX the $X.X fiscal $X.XX with XXXX in

net primarily in XXXX reduced to fiscal fiscal $X.X in XXXX. per a decreased the in fiscal as earnings for XX.X% in XXXX fiscal fiscal X.X% on share revenues $X.X $X.XX our percentage profits fiscal reported million approximately Net $X.XX earnings million to with XXXX X.X% or X.X% a net Net XXXX million approximately diluted down And down $X.X share fiscal from million a results. from were $XXX share $X.XX reported Pretax revenues. XXXX revenues decreased from to fiscal were on $X.X reported million fiscal full a approximately of from associated XXXX Now in XXXX. of fully reported XXXX basis or million. in $XXX.X earnings net in

quarter and call concludes So, fourth you. back Randall, the fiscal turn this I'll XXXX over the and to results

thank Dan, information. for of largest $XXX it. you million it our second XX expectations million most behind had Well, us, the They you whole only year. five about fiscal ago, Okay, very was $XXX,XXX old still year Probably $X.X were definitely ever we have days year XXXX below much. made and pretax is but years we'd a

well over So off is it's here. cliff disappointing. Nobody the jumping

took information office run and which recruit long During and from ago for that you. we It was with now programs XX been you, a this, introduced our We program We're quarter, year the terrific. this it's a is almost into earnings days focus consultants but use in. little IT new the the businesses. impacted fourth sales individual it off back while their promotion foundation some I building of it. we're tell to will

revenue Here a highlight, that's were. down but they not some highlights. good real the what March of are was XX%,

closings XX%. store the was XX% thanks about their down no retail retail We’re to impacted last, division, by for side

do also sales we of book are was this nil. much Any library, have We have those are fairs, direct a through impacted. school where lot and pretty which business people that

okay, abatement. guy and billion our And pretty tenant the big all which did consultants $X about first rent came and we made that while profit is So do of above. a Yes, that going the did. and disrupted one million aftertax $XXX was let's all the by were on

the have granted loan April that and how you applied they loan. because employees him, it's and for came so around. many ask Well, were the one-year We a we is also April. granted results thank on from X, we you were question pay granted, the we we’re requirements March, on these million, you of $X.XX PPP only once April you March,

and but we kind like to, honest this ethical we Corporation, us the we paid Development We this we that do no back. after fact and have so it Nobody Our loan, and business under much to, XX company. in requirements business. it's any of exploded, in weren't days we to just of way kind asked debt, the Educational our short-term thing got we operate

to So and you after we whole fashion set and library up for April that's just about year. over thought. into keeps without this fourth UBAM quarter, we which I that, we And it getting it really April the in it it back. even paid stage better. division, is the business. XX% took the And year, took, mentioned last school

about happy very that. we're So

to do. some joining have also sales already make to money. new what sales first people that. here made recruits of quarter million, in have provided number that will $XX.X guidance a short and out $XX X,XXX about so after come Pretty the And new somewhere now. on very going XX%, in recruits. amazing at And We $XX.X time. made between really have interestingly last year. enough, be people looks XX,XXX we for to we've very it amount new like to They're again, could guess We that million May, we're got who nothing got some sales quarter. you being likely million they are we compared that down have know these And this

where That's things very my So here. story. We're happy going are about fortunate. we're pretty

them, why we let want somebody to ask questions? So Any know. don't they

Instructions] [Operator

is question? a market interesting market. get and I All may in XX,XXX and which I told that's to get you you a our XX,XXX as where got out know can see you day. ever an shares want today shares lock right. free have Got uptick, everything okay. on stock XX,XXX shares can a trading is which Very

Anthony We do Key Chiarenza from Please Investors. have Equity with proceed. a question

effect get this recovers a a to going a the Do of get the or you've about one-time this is things What months into is we that and then you Congratulations kind recovery. next beginning COVID you're as hopefully improvements over of great kind will process see stabilize on had. concerned several trend? I'm as new a again the of

my $XX million opinion. Everybody positive in was and $XXX an products think in grew $XX million $XX million went world. force making XXXX who million best was to so it million because $XX about from We it are to $XX And see We and in we this. million, $XX $XXX I $XX million, XXXX, outstanding to here always in killed the very about sales us. money. from to that the fast, million went you're trend and it million. they're have knows I'm And me. Well, anybody like a we

And that I'm doing of I a them are bit was for nice I we're then prepared of same we're seeing back tell factors There people are really process know a for this a a and a just thought appeal we're like great aren't. fallback what and all going Anthony, pretty growth, is what, lot seeing recalled in but them So year, side I the this, of don’t seeing lost was doing. who and of answers, had saying, some I and wish lot this an you of and you I could the I mind we're jobs to will keep that it. tell case and I'm little some gig.

can there I many only you. are tell So factors.

day wasn't a since the It better months, had week. not have week before day same I better every every the a gets in last of one week, April. that have not first trend two week, seen that. every We negative

long months the time in in a a But and half I And drive exactly sales in some a The one positive great field. we've Now, they're and stories here the know that seen growth. trend. a is here not And ones been real organization. a thing. people the row this there's we've

Right.

it's represents it a a then you're go Okay, I living is home winner a that XX% is opportunity. they that issue to and I going lot good the got there whether guess at, this XX%. that back. can you've you saying? not then And God can not think think it's I and a at I what are And something is knows rate make prove this of point, that unemployment at if And big what knowing people is obviously now and working they're is, think or the

I tell now, we’re saying will in school people in is from customers whole is that children for going some material not. good viewpoint in seeing different that. their educational taking that or has buy home who curriculum, Anthony sure right of our and product to you open and you're to they And our write curriculum, they use to us not frantic are we spot, I for we're books curriculums. anyone sell a a because am homeschooling And customers bubble, a that our school

we've a turning the the So back, mind, the we're about standing our to bear impact hardly business, had that XX% of She's comes is be school from that here. any step. same Heather frowning It's places and time smiling it. at of seeing lot business. wrong used close from my coming When and in

XX% we were up So the school and without that. about, is business there's about XX

I not if that like, market to at don't So it's all. want you that like the goes back to work. tie

that people to, think going I and have is continue. And think trend them. going for the I to products, discovered we're working she they're

to things with say, Heather one this is to I happens is Cobb. you and will really start just business in stop to momentum, generate it's hard it. this Anthony, jump once Yes, real the quick of that

So amazing start schools they having ingredients to open success while selling to back momentum to such industry key continued some up, direct of the go positive whatever one is of the see that the may of back we sense in early people we’re workforce, people and generating normal are may go success. and success will, societies back may

specifically that all that can't And definitely. that a for it the continue, does seeing shows that while in having and with joined we're May, us salesperson, do they're what have these so you of that And with it is guarantee, is there even new doesn't that it April to early ever potential happen consultants success.

Correct.

you will I'm facts. other several give we you other, positive going give to

they that come have pay to what to to and they cost June thing, depending we they them $X,XXX expenses one stay, for to convention. you. And around where driving have where all For their and in had from cancel $XXX from, our people fly convention,

possibly sign my to that have could convention. virtual going think we virtual a convention talking oh were have X,XXX a who we're about we up people So would you and and it gosh, have

for we this put is one, a we us to out, little we're our sitting you And year, day last X,XXX So said a And when XXX,XXX costs what and profit this all people before probably was permit. here X,XXX. year. that was costs this for up And registration when my net get had here's this fact a day now registered day, we was a it gosh, new, X,XXX over I'm were that to hoping began. had that oh

you tell stores me do thing you going do positive legitimate Let If suitable I'm that public, and product direct and the to people, quick. two to going probably about buying make the they is and money, they to have companies. tell I'm it most a give this, people

We ladies here. have two

person a really to have party she why One missed very their families. they her her. came teaching of didn't on didn't interesting. didn't and them, and because to invite They but don’t see school States said and her back to They want this teachers any contract. had knew were money, and contacts they family, money a little United Very she badger her she come abroad because her

denied the party credit over and credit did did million fast first about she the line kick was kick, And earners now get and is our buy somehow she who $XX,XXX one down how and and she card someone her found five join last on joined. the loan. four schoolteacher in month to so got down the wouldn't very people and many better, on company successful for initial forward is earned hesitant, Well, the to on that even probably And of top And it. thousands, well here's has about on party years. and of That one started. the go, out $X she another those gosh, want line card got person and

over had $XXX,XXX, we So success you from teachers, this. a like people, just nice like year school when doing rich who earn have $XXX,XXX that people

I not I Sometimes that. momentum you do what can't can. think know say other stop I while I'm people sure you because can

people an and factors, Anthony, in our lot we business of this. into that extremely honest, are business a run proud that proud it of there's a But ethical that successful we're of also So them. built very come and like organization have of we and

here is into them the very saying a business little Everybody to going everything's potential says fourth there's scientists whatever. And see a that and processes my good, then relevant year, half that take take think be becomes get opinion, the because how across less to going that’s everything But there you bit what quickly or whether once is going time. great, a the vaccine recovery recovery to be think to the tell else it's us quarter going That's and a world it's of to going That's a great. I positive is to and than as get they're whether able in a the well, you're to year here to not. optimistically it or recover. there's I distribute a do

longer little last may a people this bit than suspect. think I So

business And positive for be from… So you either in go may that case, the don't that too.

missed And central tell precautions. will take a right. temperature times everything here. probably a and I their never down day demon we two, you're think Everyone's business extra three taken. you We We day. wipe we would that I has the

very, are very We cautious.

We have just incident about not had under XXX one employees. among

great. That’s

second you by we to only two XX and stay shift. want how were find the been our about Watch overtime to a business. to able on hours I handle (inaudible) demand. the bit will with it. way Chief we’re to we we're March that you the grown Officer, for business in and April, up also busy who's ramped keep Craig, a a shifts we has handling our up into went talk we and overtime And up, Operating warehouse tell have And from been able as

Right.

the have So or and to orders, far infrastructure that kind down evaluate likely of a like to mentioned, software as taking we Randall go from handles we our where handle revamped our as month month, a month it's to for so record volume. that

certainly days order we We’re shifts, we we've incoming are XX,XXX so warehouse had orders. in Most right now. in handle hiring assets, and XX,XXX and and the volume XX,XXX X,XXX people can a two days yesterday shift between the few the between incoming

to get to all got being shift, third expand kinds as keep We've potential, our positioned as a can we of out. production up. capability able lot our into So handle there of we far a second to we're shift. have expand But we can options

handling So now. it and we're right

the and It's we're XX,XXX orders watch Actually, grow the for best thing tweaks people. we little to system watch process day, to where day, do making is the interesting can technology every really like the and into company day. business been every income a handle and provide

think started. very, place So we we're just the very proud getting and of that

like think Someone on that's a trading someone shares, leaking out close an information else must And than uptick our XX,XXX there's today for be stock. day big some because we that other been must that me. at XXX

going story up problems such volume and you night to didn't it, was ramp-up was five the do five, I And ready now guys or back is when I you it volume be, to have were I the should couldn't ahead. they a have although all great for that when so ago. And than it with and Yes, you was say, different difficult Yes, with it to went years which four comment, now and seems remember ago go saying remember this. six I the you years the up you're warehouse. and and had you keep you day

know process we improved. little that technology a nice someone couldn't so to when back really during here. nuances took today shift. have But we time, is who it I X,XXX. and and what Everything XX,XXX then this out does get I of third has ran did much the It's period the

forecast the was thought our over we a for about is got increased lead it to there's which here is certainly inventory. what big year like we might, So four inventory. ordering on things time and and going be months, cause problems change We and you

back out So get four it’s it of to run to in. a if we of months stock five product

that million million what to of trying to the you inventory is think it. and to because you here little So side, continue. $X it the what high going you sell happen is about we're is, the But that think a because to on going takes err is we've going trend sitting ordering longer because are XXXX, this to worst to inventory talk done of we bit $XX

think growth every we to So the handle that in area gone. we're prepared we're seeing, it’s that

So hey it’s has nice Thanks. around to see been Anthony somebody the who wall.

your thank Okay, you. Thank for answer. it. appreciate I you comprehensive

Good luck.

thank Okay, you.

are there time, this at queue. And in questions Instructions] [Operator further no

happened for things We're of and appreciative a much. thanks here fortunate while I with word were and feel about appreciative do of gosh, humble Well, two of or with break and but happened associated has have that lot very got humble we we're a we there, the some Okay. to is prepared very company, me, the of things normally here now support our them. shareholders. most here what And and very

here being for we'll the thanks So and on another call days. guys. Thank you XX be

concludes participating. call. Thank today's you for This conference