EDC Home Business Unit Rolls Along into Fiscal 2004
by Jim Milliot -- Publishers Weekly, 5/19/2003
Educational Development Corp.'s home business division had sales of $17.3 million in the fiscal year ended February 28, an increase of 31.1%, while pretax earnings rose 36.6%, to $3.9 million. Sales in the publishing division rose 2.7%, to $7.6 million, and pretax income was flat at $2.6 million. Earlier this year, EDC reported total sales of $24.9 million and net income of $2 million (News, Apr. 21).
In its year-end filing with the Securities and Exchange Commission, EDC said the gain in its home business division was due to the increase in the number of sales consultants to about 7,000 by year's end. The company continues to add new home sales reps, and EDC said it is "optimistic" that the growth in fiscal 2003 will continue in fiscal 2004.
The increase in the publishing business was driven by a 13% increase in sales to the bookstore chains, which accounted for 36% ($2.7 million) of the unit's revenue. EDC also expanded into new outlets in the year including drugstores, department stores and discount stores. The addition of new stores and increased business with the chains offset a 13.5% decline in sales to independent bookstores and gift stores. The company now offers its Usborne line of children's books through about 6,000 outlets. Its retail market focus in fiscal '04 will be to increase its sales through the bookstore chains.
Fiscal '04 appears to have gotten off to a good start. Although EDC did not issue a report on March sales, it said sales in April rose 29% over April 2002, to $2.6 million, making the month the third highest sales month in company history. The increase was again led by the home business division, which had a 38% sales jump, while sales in the publishing division rose 9.7%. EDC also reported that in April it recruited more sales consultants than in any other month in its history.
