After a scare in March, the first quarter of its new fiscal year, Educational Development Corporation said that it now expects to have a record first period when the quarter ends May 31, and is estimating sales between $36.5 million and $38.5 million.
Earlier this month, EDC reported that it had repaid its $1.4 million Payroll Protection Program loan following a sales surge in April after revenue plunged in late March. In the company's newest announcement, EDC CEO Randall White said April sales increased “an unprecedented 60% over the previous April, which allowed us to repay the loan completely in less than 40 days.” That dramatic increase in revenue, White added, has continued into May.
The strong first period followed a soft fourth quarter of fiscal 2020, ended February 29, when sales declined 14.7%, falling to $20.2 million from the year ago period. Net earnings fell 3.1%, to $555,500. White attributed part of the fourth quarter decline to investments the company made during the quarter to upgrade its infrastructure, as well as to the implementation of a new recruiting program, Climb.
The fourth quarter decline contributed to a 4.9% drop in revenue in fiscal 2020 and a 15.5% decline in net earnings. Total sales were $113 million in the year and profits were $5.6 million. The results, White noted, where the second best in EDC’s history.