TULSA, Oklahoma — (Newsfile Corp. – January 5, 2023) — EDUC Education Development Corporation ("EDC" or the "Company"), a publisher of children's books and educational products, today announced the end of the third quarter of this year. On November 30, 2022.
Highlights of the third quarter compared to the third quarter of last year
- Net income was $30.3 million, a decrease of $14.8 million or 32.8 percent from $45.1 million.
- The average number of active direct selling advisors was 27,100 vs. 41,500.
- Income before tax was $0.0 million, a decrease of $3.6 million from $3.6 million.
- Net income was $0.0 million versus $2.6 million, a decrease of $2.6 million.
- Earnings per share were $0.00, compared to $0.31 on a fully diluted basis.
The main indicators since the beginning of the year compared to last year
- Net income was $72.8 million, a decrease of $46.1 million or 38.8 percent from $118.9 million.
- The average number of active business advisors at UBAM was 28,700 compared to 47,300.
- Profit (loss) before tax was $0.8 million, a decrease of $11.7 million or 107.3% from $10.9 million.
- Net Income (Loss) was $0.6M vs. $8.0M, a decrease of $8.6M or 107.5%.
- Earnings (loss) per share was ($0.07), compared to $0.94, down 107.4% on a fully diluted basis.
“While sales continued to be affected by high inflation and rising food and fuel prices, our sales volumes steadily increased by more than 50% as Q3 was our best seasonal quarter yet. During the quarter, we introduced additional discounts and increased sales incentives. While decisions impacted This market based on our results in the quarter, however, was aimed at accelerating sales, converting excess inventory into cash more quickly to pay off creditors, and reducing bad debt credit.In the third quarter, we also made strategic changes to improve continued profitability, including increasing the amount we charge on merchandise in outbound shipments, plus many other cost reductions,” said Craig White, president and CEO of Education. in the development company. . “Our business has a long history of profitability and our fundamentals around pricing, product costs and selling expenses have not changed. And although we have faced recent macroeconomic challenges, we continue to face them head on and work hard to bring returns to historical levels.
“We remain excited that many of the recently announced changes to our direct sales department will provide additional impetus not only in the fourth quarter, but as we move into fiscal 2024 and beyond. In the third quarter, we saw a stabilization in the average number of active consultants We're seeing our Active Consultants begin to pick up, while our Leader Level Consultants remain at historically high levels As with most Direct Selling firms, our Leaders deliver the majority of our sales and new hires while maintaining a high level of leadership in these challenging times of inflation gives us confidence in the future of our providers Plus, we've historically seen an increase in the number of active consultants during periods of inflation as households seek non-traditional income to offset higher costs in their homes.