Educational Development (EDUC) 8 Jul 212022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the first quarter fiscal 2022 earnings conference call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Randall White, CEO and President. ahead. go Please

very you Okay. much. Thank

Okay. We call ago. here the and us. [indiscernible] We reports he's with earnings got on -- welcome some nice

firstly, the give like kind highlights. So us just of quarterly Dan

Randall. right. All you, Thank

million quarter so approximately profit approximately first of approximately an $XX.X representing in the from increase million the revenues $XX.X million increased $X.X first were quarter quarter our increase reported fiscal results, an And to net XX%. of for million or Pretax for $X.X of approximately $X.X XXXX fiscal XXXX. million, first $X.X X% the from million, of

Net a million $X.XX the quarter the last fully back the the XX quarter compared diluted it XX%. totaled Earnings the or first $X.X share, increase XXXX per $X.X results, an earnings last representing XX%. earnings Randall. in to and of This basis in increase $X.XX for call of of million we year, fiscal over year, pass an to million put quarter concludes per totaled to on share first share -- compared or $X.X I'll per

the So Okay, enhancement. [indiscernible] our date we because but earnings but quarter COVID XX% the made is to and kind pretty Well, get to first quarter in in comes not are in Revenue up started because optimizations [indiscernible] [indiscernible] the cost fourth of was solid. up think because when the sales that's [indiscernible] X%. are you not quarter issues. [indiscernible] guys But [indiscernible] internal totally much Thanks. those the I earnings [indiscernible] said, of skyrocket strong on And you it's really pretty fourth the only given of almost just year really Dan. is quarter greatest, we last

going things the some So up. to again, over got to Craig us we quarter, [indiscernible] phone exciting give to pass coming I'm and decent

Okay. Thanks, Randall.

IT. little on Just operations a to give and update you

have and Line we just the and before in warehouse investor using fully heard capacity. previous We're operational, the final our have are As you a in to to X CapEx basically X quarter start it. for calls, we stages shipping be done may picking and waiting tested. double project packing

to are more next in will efficient and the with output those much lines requirements. lower weeks. They shift higher few we So labor

X capacity, So for adding basically shift us will the one is these our foreseeable much shifts. which future, will than lines efficient double shipping on more and which third second keep

about and weeks, here again, that's couple be up that. next the So going in very we're running to excited of and

moving we're moving and for final of shopping what online as far a the version. us mobile-friendly into the we're into phase new takes like market. customer while, IT platform to This the on testing. e-commerce improves the in our working the an e-commerce testing update, It's of and stages very for As new been basically but experience. We've seems this development state

increased it's shopping cart cart with of return this really e-commerce in expect abandoned We state the customer We platform. send e-mails, and increased can new marketing e-mails and closures market. and activity

next the X X we're to out in going again, that weeks. So with

So for IT-wise. season fall We're -- and selling gearing the operationally up

So to we're back few you, it Randall. of looking I'll that, months, forward give to the year. our heaviest With the time next

Okay. Yes. Thanks.

of million. -- happened we [indiscernible] a confusing. booth. year on normally X we'll of to out tried our last Every in And about of missed [indiscernible] have probably revenue million not a face-to-face. pretty or got this importantly I [indiscernible] I is will consultants of $XX have or [indiscernible] the $XX weekend, about explain missed combination feel excited think we more because out [indiscernible] what's We we're the on [indiscernible] COVID, maybe Because in

people again. are back having sales also our in and seeing resurgence those school obviously We're coming clues. So

be good could So a year. we're -- pretty in we this it think -- that

that's So current historical, information.

we open just investors. up pretty think questions to a But I from we'll quarter. now good think I had

comes line first [ Instructions] from ]. Mahara the question of Your Bobby [Operator

Okay.

we've First or X weeks? be gone question X should quite obvious. So so how has trading, got QX it far?

going quarter that far? saying? in what is How Is so you're the we're

current the quarter. Yes,

QX So we've got started? results for QX. How's

now Well, [indiscernible] this know you

Randall, I apologize.

I think cutting your keeps line out.

So -- don't you say. I hear everything I can't

we're What what Okay. I'm is saying we restricted can say. by

haven't you But are yet. released tough We tell we a quarter. the will [indiscernible] I financials that facing

We're we was last the quarter exceed sales, going year. to the And way the biggest strong morning, And the it we will far. be I so was don't forecast second like this forecast, way The just likely you going are tell huge. ever. I that that's the this second but know. one feel year, by -- probably we're the of we our year the quarter by here way and feel And will for up make things for end up the not

a answer I I definitive you. wish I'd but more you give will tell

we're encouraged our by had day We So the in million picking so they're year while. our lower in. last sales first first coming are how but It's second than shipping for far, the up. time quarter $X a

going, with happy quarter have to where it's a compare considering tough we're we So to.

Okay. Yes, yes.

year So very good a QX. was definitely, last

-- few other questions, So a so them. got I'll on with I've just the carry

Sure.

Okay.

agents. next sales about to to there I'm switch thing what So is I going I ask shortly. back want my said But to

you've sales by slipped So XX,XXX. basically. now the year, then and end sales -- that the said down think agents, that's XX,XXX I of the more now just previously And to we're last more

How that on it. will to slipping? has then and -- share. And that parts earnings that how is both carried sales per affect X So

when is tell you, we have, up time. a start, Well, but We try number. we I'll a salespeople don't have you will should sales. I when they I the certainly, more know That sign guys know quit, we -- more tell you we soft every to number tell

sometimes when don't okay new That sell any by it of never because that's we about doesn't going XX,XXX, are kits. money a necessarily affected drop have out join our on much couple to who get be and mean all thousand lose excited people of that And anything. that sales you we because

your us. like seem to the a and trend answer a Rob, isn't There's "Oh, and few seasonal yet. -- says, cyclical, that's may it's this, also and It trend." question, alarming my no here gosh, so far So to

You'll see November, any we a October, more in the December. had trend if

And year, but recruiting so for a people thing. We run provide grew much, to Last do the when -- shift we new about any anything try more to tell out office. Bobby, didn't one We you didn't didn't thing get contest. so door. will do I any incentives. we didn't one We the

you, happen, but done more incentives a I'll in up to anything again years, as now, but so we going things get And it's to recruits. increase level normal it's just in to start haven't sales out, we cycle, and started tell It's headcount people. with to cranked our business

to little a that, Bobby. add me let Randall, bit

the So active count is months. natural they time. the consultants if had have attrition X last summer sales the We in

and reaching made anything months. selling easy the haven't time maybe people that the we're through in last several Christmas it now So done

off, after season. So we're biggest -- this is selling to the X natural people months time our drop for

Okay.

basically... So

add just Bobby, off, doesn't them not let one don't still consultants. dropped for more We you. We them thing. me it count they're mean

with again. something sell next back we're know you guys anything. heading they're active So in If month, on sell people don't they who not

-- that the So and happen, will by way.

Correct.

Okay.

fine. Yes, that's

or how is. hearing can I asking well the this equipped it didn't -- that's it's are year. decision. know well. down, normal it's last time at And but -- certainly see bit it alarming I'm because understood make as was I is think to the numbers that I why what that you, sounds I not not to And very guys you I of I I'm the -- didn't

that it. about So all not at you're Is worried? carry were not going even -- anyhow. you're all up think sales Or on, your barely You worried hopefully will correct? you

right. That's Yes.

expect and share to got touch here. down your upon I'll reduced your costs your high And just then be like now your And costs. as line it your Actually, QX. or that this and your margins Does X working you've in slightly per well, if well, even you with as reduced publishing would are shipping actually X earnings enough profits actual correct? will flat rise sales sound that earnings,

flat the true. way because earnings. and Yes, things increased think coming. we have are That's some quarter, will But -- that's sales there's other a there's that we

right. understood. All That's I Cool. Yes. all Good.

sounds you something that ever do that need all But have just have do of you is a also more just ever ever lot offers Or up -- don't touching doing you ever? company. something of to so books? the And something recently? related. that -- on don't you discount that But anyhow? I lot with that is less resort you good. do a to a And Do So do big history you're

you doing priced, feel sales products we about -- direct think is most but -- our inflated in bookshelves way talking and prices we I and very -- companies, I'm I'll division the thing this the to are & fairly way price feel about this that's direct be sales, the are direct Noble, in could bet the not the same price on sales our pay and the fair. business. the you back, None price you and at is Barnes printing be. of pay my with

the there's run again, discourage discount because specials $XX. people books We average and are priced some cost control point. book The But everything, discounting per don't reasonably about this Now -- at we but is them. that. discourage

fairly discounting. now And so think and don't they're need priced we

That's cool. That's good.

which all, to So is no nice. normal at difference quite still

your colleague the, I website, did main now. think, then -- And Okay. upon just touched now the just you

saying an hope you're website get indication within when you've to weeks, that investor have you go you to going as got any So live. that then probably Do that's X live? well also And revamping. of

do get the that the in developers we the our X but e-commerce next weeks Yes. data that. Yes, time or here, before coming site. so. working on have is We didn't of actually I our around focus in a same main expect few in enough frame junior

Cool. Okay. right. Good. All

make comments me Let some there.

going company one this the that's to single that things I affect think of website. new biggest is

e-commerce now, impact rolls this because expect You positive going out, to which very but think we they have go very -- just we impatient country about have. the the will our in millennials in site, I not it that's be encouraged and and And technology. new We're latest everywhere, mobile-friendly. online

cool. that's Yes,

quite So I modern your more the, was I to difference. websites -- first date, want I when ever call yes, or up looked compared companies to it's mean something keep I to a that is, more the some there websites to noticed their of website

So think you're right. yes, I

there's it well. there a I could be right the that sounds few think on and like improved, you're track as things

Okay.

me one more say let Bobby, thing.

our very our we which got probably little core [indiscernible] we with order of look don't You in e-commerce XX% need we're pay the but professional which more it. But to try the an for our attention that, do the [indiscernible] corporate see on to a working and do are sites we since any sales website, the concentrate although business too. of on on income-producing consultant. to, little website, efforts We be call, kind last activity, website, towards I more

okay. Right,

mean Okay. -- good. that's I Yes, that's fine. okay,

answered you've again, questions like, think it in all sounds the I had, and the right I direction. going

[Operator the from And line question [Ford]. your Instructions] next of comes Joseph

sales About consultant on question. the

was assumptions? that consultants to supplementary people income. you go those due people pandemic, so guess some were off have -- So looking necessarily expecting sales Am large sense my thus, some natural And due through so didn't last and at that that? in would I didn't understanding I as of expected, your least work, question, that people the drop the I sort would answer some to on, to get also. to the was increase during extent, back jobs have a I to incorrect you for in were drop-off

could. -- drop been furloughed, have This it. off. you you see from funny they've say I taking working home. People a We're No, not thing,

interesting. they job to which of want kind maybe stable back, that thought. their go Now as they're don't as And is seeing they also, wasn't

may So for part-time. they just on hang

jobs, competing people part were actually portion a things. of with full-time good and A lot of time are have our we but

with a going last paid to to commissions in the year we're whole about and home you living there's that. we that in putting I more them and So first $XX country make Very it. tell are are of a salespeople. our employment thing million adjusting that on to But whatever, proud will today will their of be are I and that. proud can moms children and allow can't stay their home. These who family

as any, people think up can impact significant go-forward make to an learned And having they be have so this going without to basis, doing I income on as a that that give [indiscernible]. that's big

it as tell to nucleus number and we've see goes you, we'll a much So money But less. like I'll core that some just make of they along. how don't got make, want

bringing to a it's looking So -- And always question. forward we'll see We're turnover. now more people develops. have in how you good that because

answered I -- that's have So hope question. I your

consultants always millennials streams. these age, and our are days for looking these income also, multiple Joseph,

alongside question may bit sign our So know other things add with as don't well. don't your be And doing to a why your to they they little us. we We business know answer stop. why up -- to they more,

major anticipate -- any don't drop off we So though.

That you and it. the and was tell these also a I'll they of use Internet, do the way young point. good people the

Some something, make to they easier of have of we're and -- will not buy go of we others And they X companies. as lot site the product leave our open, when the our people the are cart to sure more a stay a X, involved drift it, we because or with opposed this -- why. they in on

going easy check be to company about the in make address is these out, It's biggest this the all X on all impact So years. IT. IT to we're next to things it [indiscernible] trying to X,

the are products in best world. Our the

the we've the to make world in to Now easiest program got the use.

what So addressing. that's we're

And comes Instructions] the line of question [Operator [van next from your Wachem.] Ron

is million I'm your looking you that to get think -- be independent revenue thing the about, to your agents page $XX website that there moms kind to when there at selling you're -- said books. from tell to on just main your of that's you what X -- just -- I lacking all is need and

or credit for? get might I download But error. kind sellers independent web noticed like into got to on the a looking your you you goes potential little also think bit should that. app, said, think marketing you a I it the file a I directory if of turning page bit of download just hype some you up website publishing That fixed. your -- major when little that the you're help

website or I [indiscernible] we would access the course, on agree report, will working ignored which have of I consultants, the tool and and a are that and turns don't have off marketing reserve to, you people that, addressing it it and more, good income-producing have ours, are are access it. you to and because . Yes, couldn't that's that we team tell #X you I

comments, I your by So that, we with agree way. and definitely appreciate the

site, Ron, I site think you uses The force edcpub.com. were corporate myubam.com. looking at is our the the sales

What? Sorry.

Myubam, com. M-Y-U-B-A-M dot

it. That's Okay?

there And no other are questions time. at this

guess we Timmy, wrap can right, All I up. Okay. then

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

now may You disconnect.