☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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73-0750007
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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5402 South 122nd East Avenue, Tulsa, Oklahoma
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74146
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(Address of principal executive offices)
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(Zip Code)
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Common Stock, $.20 par value
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NASDAQ
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(Title of class)
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(Name of each exchange on which registered)
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Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☒
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(Do not check if a smaller reporting company)
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Emerging growth company ☐
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4
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PART I
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Item 1.
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4
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Item 1A.
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6
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Item 1B.
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6
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Item 2.
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6
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Item 3.
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6
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Item 4.
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6
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PART II
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Item 5.
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7
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Item 6.
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7
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Item 7.
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8
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Item 7A.
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17
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Item 8.
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17
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Item 9.
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18
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Item 9A.
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18
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Item 9B.
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18
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PART III
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Item 10.
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19
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Item 11.
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19
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Item 12.
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19
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Item 13.
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19
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Item 14.
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19
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PART IV
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Item 15.
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20
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Item 16.
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22
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· |
Home Business Division (“Usborne Books & More” or “UBAM”) – This division sells our books through independent consultants directly to our customers. Our consultants sell books by hosting home parties, through social media collaboration platforms on the internet, by hosting book fairs with school and public libraries and through other events.
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· |
Publishing Division (“EDC Publishing” or “Publishing”) – This division sells our books to bookstores (including major national chains), toy stores, specialty stores, museums and other retail outlets throughout the country.
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FY 2018
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FY 2017
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||||||
UBAM
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93
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%
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92
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%
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||||
Publishing
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7
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%
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8
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%
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||||
Total net revenues
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100
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%
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100
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%
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FY 2018
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FY 2017
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||||||||||||||
Period
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High
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Low
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High
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Low
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||||||||||||
1st quarter
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9.85
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6.75
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14.60
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10.65
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||||||||||||
2nd quarter
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11.45
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9.50
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13.87
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9.95
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||||||||||||
3rd quarter
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14.45
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9.50
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12.75
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8.50
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||||||||||||
4th quarter
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22.80
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13.75
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10.50
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7.10
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Period
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Total # of Shares Purchased
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Average Price Paid Per Shares
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Total # of Shares Purchased as Part of Publicly Announced Plan (1)
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Maximum # of Shares that may be Repurchased under the Plan
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||||||||||||
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||||||||||||||||
December 1 - 31, 2017
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-
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$
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-
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-
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296,632
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|||||||||||
January 1-31, 2018
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-
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$
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-
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-
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296,632
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|||||||||||
February 1-28, 2018
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28
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$
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21.43
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-
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296,604
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|||||||||||
Total
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28
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$
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21.43
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-
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296,604
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(1) |
In April 2008, the Board of Directors authorized us to purchase up to 500,000 additional shares of our common stock under a plan initiated in 1998. This plan has no expiration date.
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FY 2018
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FY 2017
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||||||
New Consultants During Fiscal Year
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32,400
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24,600
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||||||
Active Consultants End of Fiscal Year
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35,500
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25,800
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·
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Consultants
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·
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Team Leaders
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·
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Senior Team Leaders
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·
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Executive Team Leaders
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·
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Senior Executive Team Leaders
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·
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Directors
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FY 2018
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FY 2017
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||||||
National chain stores
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8
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%
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17
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%
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||||
All other
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92
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%
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83
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%
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||||
Total net revenues
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100
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%
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100
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%
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For the Twelve Months Ended
February 28,
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||||||||
2018
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2017
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|||||||
Net revenues
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$
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111,966,100
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$
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106,628,100
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||||
Cost of goods sold
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30,931,300
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28,613,500
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||||||
Gross margin
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81,034,800
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78,014,600
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||||||
Operating expenses:
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||||||||
Operating and selling
|
22,571,200
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23,070,000
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||||||
Sales commissions
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35,359,000
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33,995,500
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||||||
General and administrative
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15,736,300
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15,920,600
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||||||
Impairment of asset
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-
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1,082,300
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||||||
Total operating expenses
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73,666,500
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74,068,400
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||||||
Other (income) expense
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||||||||
Interest expense
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1,119,500
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1,028,800
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||||||
Other income
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(1,583,900
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)
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(1,694,700
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)
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||||
Earnings before income taxes
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7,832,700
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4,612,100
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||||||
Income taxes
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2,618,000
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1,751,200
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||||||
Net earnings
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$
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5,214,700
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$
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2,860,900
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For the Twelve Months Ended
February 28,
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||||||||
2018
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2017
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|||||||
Gross sales
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$
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108,170,800
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$
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105,574,500
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||||
Less discounts and allowances
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(15,482,500
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)
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(19,088,100
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)
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||||
Transportation revenue
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11,010,300
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11,134,200
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||||||
Net revenues
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103,698,600
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97,620,600
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||||||
Cost of goods sold
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26,239,800
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23,744,000
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||||||
Gross margin
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77,458,800
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73,876,600
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||||||
Operating expenses
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||||||||
Operating and selling
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19,385,000
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19,784,600
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||||||
Sales commissions
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35,043,200
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33,687,200
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||||||
General and administrative
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3,602,000
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3,946,500
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||||||
Impairment of asset
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-
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1,082,300
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||||||
Total operating expenses
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58,030,200
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58,500,600
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||||||
Operating income
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$
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19,428,600
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$
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15,376,000
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||||
Average number of active consultants
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30,900
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24,900
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For the Twelve Months Ended
February 28,
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||||||||
2018
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2017
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|||||||
Gross sales
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$
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17,676,400
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$
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19,384,400
|
||||
Less discounts and allowances
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(9,446,300
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)
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(10,398,200
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)
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||||
Transportation revenue
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37,400
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21,300
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||||||
Net revenues
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8,267,500
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9,007,500
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||||||
Cost of goods sold
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4,691,500
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4,869,500
|
||||||
Gross margin
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3,576,000
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4,138,000
|
||||||
Total operating expenses
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1,812,800
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1,571,600
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||||||
Operating income
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$
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1,763,200
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$
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2,566,400
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Year Ending February 28 (29)
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||||
2019
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$
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881,200
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||
2020
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920,400
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|||
2021
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959,000
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|||
2022
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1,003,900
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|||
2023
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1,048,600
|
|||
Thereafter
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15,893,200
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|||
Total Maturities
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$
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20,706,300
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Page
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24
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25
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26
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27
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28
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29-40
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3.1
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Restated Certificate of Incorporation dated April 26, 1968 and Certificate of Amendment thereto dated June 21, 1968 are incorporated herein by reference to Exhibit 1 to Registration Statement on Form 10-K (File No. 0-4957).
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3.2
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Certificate of Amendment of Restated Certificate of Incorporation dated August 27, 1977 is incorporated herein by reference to Exhibit 20.1 to Form 10-K for fiscal year ended February 28, 1981 (File No. 0-4957).
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3.3
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By-Laws, as amended, are incorporated herein by reference to Exhibit 20.2. to Form 10-K for fiscal year ended February 28, 1981 (File No. 0-4957).
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3.4
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Certificate of Amendment of Restated Certificate of Incorporation dated November 17, 1986 is incorporated herein by reference to exhibit 3.3 to Form 10-K for fiscal year ended February 28, 1987 (File No. 0-4957).
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3.5
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Certificate of Amendment of Restated Certificate of Incorporation dated March 22, 1996 is incorporated herein by reference to Exhibit 3.4 to Form 10-K for fiscal year ended February 28, 1997 (File No. 0-4957).
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3.6
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4.1
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Specimens of Common Stock Certificates are incorporated herein by reference to Exhibits 3.1 and 3.2 to Registration Statement on Form 10-K (File No. 0-4957) filed June 29, 1970.
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10.1
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Usborne Agreement-Contractual agreement by and between the Company and Usborne Publishing Limited dated November 25, 1988 is incorporated herein by reference to Exhibit 10.12 to Form 10-K dated February 28, 1989 (File No. 0-4957).
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10.2
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Party Plan-Contractual agreement by and between the Company and Usborne Publishing Limited dated March 14, 1989 is incorporated herein by reference to Exhibit 10.13 to Form 10-K dated February 28, 1989 (File No. 0-4957).
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10.3
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Amendment dated January 1, 1992 to Usborne Agreement - Contractual agreement by and between the Company and Usborne Publishing Limited is incorporated herein by reference to Exhibit 10.13 to Form 10-K dated February 29, 1992 (File No. 0-4957).
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10.4
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10.5
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10.6
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10.7
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Loan Agreement dated December 1, 2015 by and between the Company and MidFirst Bank, Tulsa, OK
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10.8
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Purchase and Sale Agreement dated October 1, 2015 by and between the Company and Hilti, Inc., Tulsa, OK
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10.9
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Lease Agreement dated December 1, 2015 by and between the Company and Hilti, Inc., Tulsa, OK
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10.10
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First Amendment Loan Agreement dated March 10, 2016 by and between the Company and MidFirst Bank, Tulsa, OK
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10.11
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Second Amendment Loan Agreement dated June 15, 2016 by and between the Company and MidFirst Bank, Tulsa, OK
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10.12
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Third Amendment Loan Agreement dated June 28, 2016 by and between the Company and MidFirst Bank, Tulsa, OK
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10.13
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Fourth Amendment Loan Agreement dated February 7, 2017 by and between the Company and MidFirst Bank, Tulsa, OK
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10.14
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10.15
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10.16
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*23.1
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*31.1
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*31.2
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*32.1
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Date:
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May 29, 2018
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By
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/s/ Dan E. O’Keefe
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Dan E. O’Keefe
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Chief Financial Officer and Corporate Secretary
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(Principal Financial and Accounting Officer)
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Date:
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May 29, 2018
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/s/ Randall W. White
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Randall W. White
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Chairman of the Board, President and Director
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(Principal Executive Officer)
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May 29, 2018
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/s/ John A. Clerico
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John A. Clerico, Director
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May 29, 2018
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/s/ Ronald McDaniel
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Ronald McDaniel, Director
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May 29, 2018
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/s/ Kara Gae Neal
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Kara Gae Neal, Director
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May 29, 2018
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/s/ Betsy Richert
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Betsy Richert, Director
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May 29, 2018
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/s/ Dan E. O’Keefe
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Dan E. O’Keefe
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Chief Financial Officer and Corporate Secretary
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(Principal Financial and Accounting Officer)
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EDUCATIONAL DEVELOPMENT CORPORATION
|
||||||||
AS OF FEBRUARY 28,
|
||||||||
ASSETS
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2018
|
2017
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
2,723,300
|
$
|
699,200
|
||||
Accounts receivable, less allowance for doubtful accounts and
sales returns $675,600 (2018) and $675,000 (2017)
|
2,813,800
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2,917,000
|
||||||
Inventories—Net
|
26,618,500
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34,253,100
|
||||||
Prepaid expenses and other assets
|
1,142,000
|
695,200
|
||||||
Total current assets
|
33,297,600
|
38,564,500
|
||||||
INVENTORIES—Net
|
435,900
|
192,100
|
||||||
PROPERTY, PLANT AND EQUIPMENT—Net
|
27,860,500
|
27,034,300
|
||||||
DEFERRED INCOME TAXES—Net
|
-
|
128,000
|
||||||
OTHER ASSETS
|
26,900
|
61,400
|
||||||
|
||||||||
TOTAL ASSETS
|
$
|
61,620,900
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$
|
65,980,300
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
$
|
12,469,000
|
$
|
17,565,300
|
||||
Line of credit
|
-
|
4,882,900
|
||||||
Deferred revenues
|
693,000
|
633,100
|
||||||
Current maturities of long-term debt
|
881,200
|
898,500
|
||||||
Accrued salaries and commissions
|
2,007,900
|
1,379,700
|
||||||
Income taxes payable
|
1,798,800
|
1,519,400
|
||||||
Other current liabilities
|
3,300,900
|
3,218,200
|
||||||
Total current liabilities
|
21,150,800
|
30,097,100
|
||||||
LONG-TERM DEBT—Net of current maturities
|
19,825,100
|
20,665,800
|
||||||
DEFERRED INCOME TAXES—Net
|
136,900
|
-
|
||||||
OTHER LONG-TERM LIABILITIES
|
106,000
|
-
|
||||||
Total liabilities
|
41,218,800
|
50,762,900
|
||||||
COMMITMENTS (Note 8)
|
||||||||
|
||||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
Common stock, $0.20 par value; Authorized 8,000,000 shares;
Issued 6,046,040 (2018) and 6,041,040 (2017) shares;
Outstanding 4,089,806 (2018) and 4,090,074 (2017) shares
|
1,209,200
|
1,208,200
|
||||||
Capital in excess of par value
|
8,573,300
|
8,548,000
|
||||||
Retained earnings
|
21,532,500
|
16,317,800
|
||||||
|
31,315,000
|
26,074,000
|
||||||
Less treasury stock, at cost
|
(10,912,900
|
)
|
(10,856,600
|
)
|
||||
Total shareholders' equity
|
20,402,100
|
15,217,400
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
61,620,900
|
$
|
65,980,300
|
EDUCATIONAL DEVELOPMENT CORPORATION
|
||||||||
FOR THE YEARS ENDED FEBRUARY 28,
|
||||||||
|
2018
|
2017
|
||||||
GROSS SALES
|
$
|
125,847,200
|
$
|
124,958,900
|
||||
Less discounts and allowances
|
(24,928,800
|
)
|
(29,486,300
|
)
|
||||
Transportation revenue
|
11,047,700
|
11,155,500
|
||||||
NET REVENUES
|
111,966,100
|
106,628,100
|
||||||
COST OF GOODS SOLD
|
30,931,300
|
28,613,500
|
||||||
Gross margin
|
81,034,800
|
78,014,600
|
||||||
|
||||||||
OPERATING EXPENSES:
|
||||||||
Operating and selling
|
22,571,200
|
23,070,000
|
||||||
Sales commissions
|
35,359,000
|
33,995,500
|
||||||
General and administrative
|
15,736,300
|
15,920,600
|
||||||
Impairment of asset
|
-
|
1,082,300
|
||||||
Total operating expenses
|
73,666,500
|
74,068,400
|
||||||
|
||||||||
INTEREST EXPENSE
|
1,119,500
|
1,028,800
|
||||||
OTHER INCOME
|
(1,583,900
|
)
|
(1,694,700
|
)
|
||||
|
||||||||
EARNINGS BEFORE INCOME TAXES
|
7,832,700
|
4,612,100
|
||||||
|
||||||||
INCOME TAXES
|
2,618,000
|
1,751,200
|
||||||
NET EARNINGS
|
$
|
5,214,700
|
$
|
2,860,900
|
||||
|
||||||||
BASIC AND DILUTED EARNINGS PER SHARE:
|
||||||||
Basic
|
$
|
1.28
|
$
|
0.70
|
||||
Diluted
|
$
|
1.27
|
$
|
0.70
|
||||
|
||||||||
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING:
|
||||||||
Basic
|
4,087,998
|
4,077,695
|
||||||
Diluted
|
4,090,661
|
4,082,854
|
||||||
Dividends per share
|
$
|
0.00
|
$
|
0.27
|
EDUCATIONAL DEVELOPMENT CORPORATION
|
||||||||||||||||||||||||||||
FOR THE YEARS ENDED FEBRUARY 28,
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
Common Stock
|
|||||||||||||||||||||||||||
|
(par value $0.20 per share)
|
Treasury Stock
|
||||||||||||||||||||||||||
|
Number of
|
Capital in
|
||||||||||||||||||||||||||
|
Shares
|
Excess of
|
Retained
|
Number of
|
Shareholders’
|
|||||||||||||||||||||||
|
Issued
|
Amount
|
Par Value
|
Earnings
|
Shares
|
Amount
|
Equity
|
|||||||||||||||||||||
BALANCE—
March 1, 2016
|
6,041,040
|
$
|
1,208,200
|
$
|
8,548,000
|
$
|
14,557,500
|
1,976,430
|
$
|
(11,084,200
|
)
|
$
|
13,229,500
|
|||||||||||||||
Purchases of treasury stock
|
-
|
-
|
-
|
-
|
23
|
(200
|
)
|
(200
|
)
|
|||||||||||||||||||
Sales of treasury stock
|
-
|
-
|
-
|
-
|
(25,487
|
)
|
227,800
|
227,800
|
||||||||||||||||||||
Dividends paid ($0.27/share)
|
-
|
-
|
-
|
(1,100,600
|
)
|
-
|
-
|
(1,100,600
|
)
|
|||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
2,860,900
|
-
|
-
|
2,860,900
|
|||||||||||||||||||||
BALANCE—February 28, 2017
|
6,041,040
|
$
|
1,208,200
|
$
|
8,548,000
|
$
|
16,317,800
|
1,950,966
|
$
|
(10,856,600
|
)
|
$
|
15,217,400
|
|||||||||||||||
Exercise of stock options
|
5,000
|
1,000
|
25,300
|
-
|
-
|
-
|
26,300
|
|||||||||||||||||||||
Purchases of treasury stock
|
-
|
-
|
-
|
-
|
10,069
|
(98,400
|
)
|
(98,400
|
)
|
|||||||||||||||||||
Sales of treasury stock
|
-
|
-
|
-
|
-
|
(4,801
|
)
|
42,100
|
42,100
|
||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
5,214,700
|
-
|
-
|
5,214,700
|
|||||||||||||||||||||
BALANCE—February 28, 2018
|
6,046,040
|
$
|
1,209,200
|
$
|
8,573,300
|
$
|
21,532,500
|
1,956,234
|
$
|
(10,912,900
|
)
|
$
|
20,402,100
|
EDUCATIONAL DEVELOPMENT CORPORATION
|
||||||||
FOR THE YEARS ENDED FEBRUARY 28,
|
||||||||
|
2018
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$
|
5,214,700
|
$
|
2,860,900
|
||||
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
|
||||||||
Impairment of asset
|
-
|
1,082,300
|
||||||
Depreciation
|
1,251,000
|
1,079,000
|
||||||
Deferred income taxes, net
|
264,900
|
221,100
|
||||||
Provision for doubtful accounts and sales returns
|
510,900
|
283,200
|
||||||
Provision for inventory valuation allowance
|
311,800
|
(25,000
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
(407,700
|
)
|
(686,900
|
)
|
||||
Inventories, net
|
7,079,000
|
(16,771,700
|
)
|
|||||
Prepaid expenses and other assets
|
(412,300
|
)
|
533,500
|
|||||
Accounts payable, accrued salaries and commissions,
and other liabilities
|
(4,918,900
|
)
|
11,427,000
|
|||||
Deferred revenues
|
59,900
|
(2,292,100
|
)
|
|||||
Income tax payable
|
279,400
|
716,300
|
||||||
Total adjustments
|
4,018,000
|
(4,433,300
|
)
|
|||||
Net cash provided by (used in) operating activities
|
9,232,700
|
(1,572,400
|
) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of property, plant and equipment
|
(1,437,700
|
)
|
(2,485,400
|
)
|
||||
Net cash used in investing activities
|
(1,437,700
|
)
|
(2,485,400
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Payments on long-term debt
|
(1,877,000
|
)
|
(738,500
|
)
|
||||
Proceeds from long-term debt
|
1,019,000
|
4,000,000
|
||||||
Cash received from sale of treasury stock
|
42,100
|
227,800
|
||||||
Cash used to purchase treasury stock
|
(98,400
|
)
|
(200
|
)
|
||||
Proceeds from the issuance of stock options
|
26,300
|
-
|
||||||
Net borrowings (payments) under line of credit
|
(4,882,900
|
)
|
1,551,100
|
|||||
Dividends paid
|
-
|
(1,466,900
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(5,770,900
|
)
|
3,573,300
|
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
2,024,100
|
(484,500
|
)
|
|||||
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR
|
699,200
|
1,183,700
|
||||||
CASH AND CASH EQUIVALENTS—END OF YEAR
|
$
|
2,723,300
|
$
|
699,200
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
|
||||||||
Cash paid for interest
|
$
|
1,116,500
|
$
|
1,005,200
|
||||
Cash paid for income taxes
|
$
|
2,073,600
|
$
|
543,800
|
||||
NON-CASH TRANSACTIONS:
|
||||||||
Accrued capital expenditures
|
$ |
639,500
|
$ | - |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Building
|
30 years
|
Building improvements
|
10 – 15 years
|
Machinery and equipment
|
3 – 15 years
|
Furniture and fixtures
|
3 years
|
|
Year Ended February 28,
|
|||||||
|
2018
|
2017
|
||||||
Earnings Per Share:
|
||||||||
Net earnings applicable to
common shareholders
|
$
|
5,214,700
|
$
|
2,860,900
|
||||
|
||||||||
Shares:
|
||||||||
Weighted average shares
outstanding–basic
|
4,087,998
|
4,077,695
|
||||||
Assumed exercise of options
|
2,663
|
5,159
|
||||||
|
||||||||
Weighted average shares
outstanding–diluted
|
4,090,661
|
4,082,854
|
||||||
|
||||||||
Diluted Earnings Per Share:
|
||||||||
Basic
|
$
|
1.28
|
$
|
0.70
|
||||
Diluted
|
$
|
1.27
|
$
|
0.70
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
Current:
|
||||||||
Book inventory
|
$
|
26,800,000
|
$
|
34,278,100
|
||||
Inventory valuation allowance
|
(181,500
|
)
|
(25,000
|
)
|
||||
Inventories net–current
|
$
|
26,618,500
|
$
|
34,253,100
|
Noncurrent:
|
||||||||
Book inventory
|
$
|
707,700
|
$
|
467,100
|
||||
Inventory valuation allowance
|
(271,800
|
)
|
(275,000
|
)
|
||||
Inventories net–noncurrent
|
$
|
435,900
|
$
|
192,100
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
Land
|
$
|
4,107,200
|
$
|
4,107,200
|
||||
Building
|
20,321,800
|
20,321,800
|
||||||
Building improvements
|
1,758,800
|
1,692,500
|
||||||
Machinery and equipment
|
7,231,300
|
5,230,700
|
||||||
Furniture and fixtures
|
109,000
|
101,600
|
||||||
|
33,528,100
|
31,453,800
|
||||||
Less accumulated depreciation
|
(5,667,600
|
)
|
(4,419,500
|
)
|
||||
|
$
|
27,860,500
|
$
|
27,034,300
|
4. |
IMPAIRMENT
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
Accrued royalties
|
$
|
791,800
|
$
|
721,600
|
||||
Accrued UBAM incentives
|
633,800
|
1,180,400
|
||||||
Accrued freight
|
357,800
|
494,900
|
||||||
Sales tax payable
|
557,600
|
425,700
|
||||||
Other
|
959,900
|
395,600
|
||||||
|
$
|
3,300,900
|
$
|
3,218,200
|
February 28,
|
||||||||
|
2018
|
2017
|
||||||
Deferred tax assets:
|
||||||||
Allowance for doubtful accounts
|
$
|
149,600
|
$
|
164,600
|
||||
Inventory overhead capitalization
|
69,800
|
131,000
|
||||||
Inventory valuation allowance
|
47,200
|
9,500
|
||||||
Inventory valuation allowance – noncurrent
|
70,700
|
104,500
|
||||||
Allowance for sales returns
|
26,000
|
72,200
|
||||||
Capital loss carryforward
|
111,900
|
163,600
|
||||||
Accruals
|
141,700
|
89,300
|
||||||
|
||||||||
Deferred tax assets
|
616,900
|
734,700
|
||||||
|
||||||||
Less valuation allowance
|
(111,900
|
)
|
(163,600
|
)
|
||||
|
||||||||
Subtotal deferred tax assets:
|
505,000
|
571,100
|
||||||
Deferred tax liabilities:
|
||||||||
Property, plant and equipment
|
(641,900
|
)
|
(443,100
|
)
|
||||
Deferred tax liabilities
|
(641,900
|
)
|
(443,100
|
)
|
||||
Net deferred income tax assets (liabilities)
|
$
|
(136,900
|
)
|
$
|
128,000
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
Current:
|
||||||||
Federal
|
$
|
1,964,700
|
$
|
1,267,600
|
||||
State
|
388,400
|
262,500
|
||||||
|
2,353,100
|
1,530,100
|
||||||
Deferred:
|
||||||||
Federal
|
239,800
|
186,200
|
||||||
State
|
25,100
|
34,900
|
||||||
|
264,900
|
221,100
|
||||||
Total income tax expense
|
$
|
2,618,000
|
$
|
1,751,200
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
U.S. federal statutory income tax rate
|
31.8
|
%
|
34.0
|
%
|
||||
U.S. state and local income taxes–net of federal benefit
|
4.0
|
%
|
4.0
|
%
|
||||
Other
|
(2.4
|
%)
|
0.0
|
%
|
||||
Total income tax expense
|
33.4
|
%
|
38.0
|
%
|
7. |
EMPLOYEE BENEFIT PLAN
|
|
Year Ending
February 28 (29),
|
||||
|
|||||
2019
|
$
|
1,324,800
|
|||
2020
|
1,351,300
|
||||
2021
|
1,378,300
|
||||
2022
|
1,405,900
|
||||
2023
|
1,434,000
|
||||
Thereafter
|
12,269,300
|
||||
Total
|
$
|
19,163,600
|
|
February 28,
|
|||||||
|
2018
|
2017
|
||||||
|
||||||||
Line of credit
|
$
|
-
|
$
|
4,882,900
|
||||
|
||||||||
Long-term debt
|
$
|
20,706,300
|
$
|
21,564,300
|
||||
Less current maturities
|
(881,200
|
)
|
(898,500
|
)
|
||||
Long-term debt, net of current maturities
|
$
|
19,825,100
|
$
|
20,665,800
|
Pricing Tier
|
Adjusted Funded Debt to EBITDA Ratio
|
LIBOR Margin (bps)
|
I
|
>3.00
|
350.50
|
II
|
>2.50 but <3.00
|
337.50
|
III
|
>2.00 but <2.50
|
325.00
|
IV
|
<2.00
|
312.50
|
Year ending February 28 (29),
|
||||
2019
|
$
|
881,200
|
||
2020
|
920,400
|
|||
2021
|
959,000
|
|||
2022
|
1,003,900
|
|||
2023
|
1,048,600
|
|||
Thereafter
|
15,893,200
|
|||
|
$
|
20,706,300
|
10. |
CAPITAL STOCK, STOCK OPTIONS AND WARRANTS
|
|
February 28,
|
|||||||||||||||
|
2018
|
2017
|
||||||||||||||
|
Weighted
|
Weighted
|
||||||||||||||
|
Average
|
Average
|
||||||||||||||
|
Exercise
|
Exercise
|
||||||||||||||
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||
Outstanding at beginning of Year
|
10,000
|
$
|
5.25
|
10,000
|
$
|
5.25
|
||||||||||
Exercised
|
5,000
|
5.25
|
-
|
-
|
||||||||||||
Expired
|
-
|
-
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Outstanding at End of Year
|
5,000
|
$
|
5.25
|
10,000
|
$
|
5.25
|
|
Basic
|
Diluted
|
||||||||||||||||||
|
Net
|
Earnings
|
Earnings
|
|||||||||||||||||
|
Revenues
|
Gross Margin
|
Net Earnings
|
Per Share
|
Per Share
|
|||||||||||||||
2018
|
||||||||||||||||||||
First quarter
|
$
|
26,930,800
|
$
|
19,506,000
|
$
|
1,225,300
|
$
|
0.30
|
$
|
0.30
|
||||||||||
Second quarter
|
24,181,300
|
17,521,700
|
1,036,900
|
0.25
|
0.25
|
|||||||||||||||
Third quarter
|
38,908,000
|
28,413,200
|
2,128,400
|
0.52
|
0.52
|
|||||||||||||||
Fourth quarter
|
21,946,000
|
15,593,900
|
824,100
|
0.21
|
0.20
|
|||||||||||||||
Total year
|
$
|
111,966,100
|
$
|
81,034,800
|
$
|
5,214,700
|
$
|
1.28
|
$
|
1.27
|
2017
|
||||||||||||||||||||
First quarter
|
$
|
22,784,200
|
$
|
16,110,400
|
$
|
620,200
|
$
|
0.15
|
$
|
0.15
|
||||||||||
Second quarter
|
25,893,000
|
18,394,600
|
318,500
|
0.08
|
0.08
|
|||||||||||||||
Third quarter
|
30,697,600
|
22,369,500
|
1,274,200
|
0.31
|
0.31
|
|||||||||||||||
Fourth quarter
|
27,253,300
|
21,140,100
|
648,000
|
0.16
|
0.16
|
|||||||||||||||
Total year
|
$
|
106,628,100
|
$
|
78,014,600
|
$
|
2,860,900
|
$
|
0.70
|
$
|
0.70
|
12. |
BUSINESS SEGMENTS
|
·
|
Publishing markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty retailers and an internal tele-sales group.
|
·
|
UBAM markets its products through a network of independent sales consultants using a combination of home shows, internet shows, and book fairs.
|
NET REVENUES
|
||||||||
|
||||||||
|
2018
|
2017
|
||||||
Publishing
|
$
|
8,267,500
|
$
|
9,007,500
|
||||
UBAM
|
103,698,600
|
97,620,600
|
||||||
Total
|
$
|
111,966,100
|
$
|
106,628,100
|
EARNINGS (LOSS) BEFORE INCOME TAXES
|
||||||||
|
||||||||
|
2018
|
2017
|
||||||
Publishing
|
$
|
1,763,200
|
$
|
2,566,400
|
||||
UBAM
|
19,428,600
|
15,376,000
|
||||||
Other
|
(13,359,100
|
)
|
(13,330,300
|
)
|
||||
Total
|
$
|
7,832,700
|
$
|
4,612,100
|
13. |
STOCK REPURCHASE PLAN
|
1. |
I have reviewed this Annual Report on Form 10-K of Educational Development Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1. |
I have reviewed this Annual Report on Form 10-K of Educational Development Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c. |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d. |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: May 29, 2018
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By /s/ Randall W. White
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Randall W. White
President and Chief Executive Officer
(Principal Executive Officer)
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Date: May 29, 2018
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By /s/ Dan E. O’Keefe
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Dan E. O’Keefe
Chief Financial Officer and Corporate Secretary
(Principal Financial and Accounting Officer)
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Document And Entity Information - USD ($) |
12 Months Ended | ||
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Feb. 28, 2018 |
May 23, 2018 |
Aug. 31, 2017 |
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | Educational Development Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Common Stock, Shares Outstanding | 4,088,383 | ||
Entity Public Float | $ 32,691,300 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000031667 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Feb. 28, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS (Parentheticals) - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Allowance for doubtful accounts and sales returns (in Dollars) | $ 675,600 | $ 675,000 |
Common Stock, par value (in Dollars per share) | $ 0.20 | $ 0.20 |
Common Stock, shares authorized | 8,000,000 | 8,000,000 |
Common Stock, shares issued | 6,046,040 | 6,041,040 |
Common Stock, shares outstanding | 4,089,806 | 4,090,074 |
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Treasury Stock [Member] |
Total |
---|---|---|---|---|---|
Balance at Feb. 29, 2016 | $ 1,208,200 | $ 8,548,000 | $ 14,557,500 | $ (11,084,200) | $ 13,229,500 |
Balance (in Shares) at Feb. 29, 2016 | 6,041,040 | 1,976,430 | |||
Exercise of stock options (in Shares) | 0 | ||||
Purchases of treasury stock | $ (200) | $ (200) | |||
Purchases of treasury stock (in Shares) | 23 | ||||
Sales of treasury stock | $ 227,800 | 227,800 | |||
Sales of treasury stock (in Shares) | (25,487) | ||||
Dividends paid | (1,100,600) | (1,100,600) | |||
Net earnings | 2,860,900 | 2,860,900 | |||
Balance at Feb. 28, 2017 | $ 1,208,200 | 8,548,000 | 16,317,800 | $ (10,856,600) | $ 15,217,400 |
Balance (in Shares) at Feb. 28, 2017 | 6,041,040 | 1,950,966 | 6,041,040 | ||
Exercise of stock options | $ 1,000 | 25,300 | $ 26,300 | ||
Exercise of stock options (in Shares) | 5,000 | 5,000 | |||
Purchases of treasury stock | $ (98,400) | $ (98,400) | |||
Purchases of treasury stock (in Shares) | 10,069 | ||||
Sales of treasury stock | $ 42,100 | 42,100 | |||
Sales of treasury stock (in Shares) | (4,801) | ||||
Net earnings | 5,214,700 | 5,214,700 | |||
Balance at Feb. 28, 2018 | $ 1,209,200 | $ 8,573,300 | $ 21,532,500 | $ (10,912,900) | $ 20,402,100 |
Balance (in Shares) at Feb. 28, 2018 | 6,046,040 | 1,956,234 | 6,046,040 |
STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) |
12 Months Ended |
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Feb. 28, 2017
$ / shares
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Retained Earnings [Member] | |
Dividends paid | $ 0.27 |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] |
Nature of Business—Educational Development Corporation (“we”, “our”, “us”, or “the Company”) distributes books and publications through our Usborne Books & More (“UBAM”) and EDC Publishing (“Publishing”) divisions to individual consumers, book, toy and gift stores, libraries and home educators located throughout the United States (“U.S.”). We are the exclusive U.S. trade co-publisher of books and related items, published by Usborne Publishing Limited (“Usborne”), an England-based publishing company, our largest supplier. We are also a publishing company through our ownership of Kane Miller Book Publisher (“Kane Miller”). Estimates—Our financial statements were prepared in conformity with generally accepted accounting principles in the United States of America, which requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual results could differ from these estimates. Reclassifications—Certain reclassifications have been made to the fiscal 2017 balance sheet and statement of earnings to conform to the classifications used in fiscal 2018. These reclassifications had no effect on net earnings. Business Concentration—A significant portion of our inventory purchases are concentrated with Usborne. Purchases from them were approximately $15.1 million and $34.8 million for the years ended February 28, 2018 and 2017, respectively. Total inventory purchases for those same periods were approximately $24.5 million and $45.4 million, respectively. As of February 28, 2018, our outstanding accounts payable due to Usborne was $5.3 million. Cash and Cash Equivalents—Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000. We have never experienced any losses related to these balances. The majority of payments due from banks for third party credit card transactions process within two business days. These amounts due are classified as cash and cash equivalents. Cash and cash equivalents also include demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. Accounts Receivable—Accounts receivable are uncollateralized customer obligations due under normal trade terms, generally requiring payment within thirty days from the invoice date. Extended payment terms are offered at certain times of the year for orders that meet minimum quantities or amounts. Accounts receivable are stated at the amount management expects to collect from outstanding balances. Delinquency fees are not assessed. Payments of accounts receivable are allocated to the specific invoices identified on the customers’ remittance advice. Accounts receivable are carried at original invoice amount less an estimated reserve made for returns and discounts based on quarterly review of historical rates of returns and expected discounts to be taken. The carrying amount of accounts receivable is reduced, if needed, by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected. Accounts receivable also include consignment inventory balances of inactive consultants as the Company considers these amounts to be collectable directly from the inactive consultants either through payment or the return of titles consigned. Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Recoveries of accounts receivable previously written off are recorded as income when received. Management has estimated an allowance for doubtful accounts and sales returns of $675,600 and $675,000 as of February 28, 2018 and 2017, respectively. Included within this allowance is $278,500 and $217,000 of reserve related to consignment inventory held by inactive consultants, $100,000 and $190,000 of reserve related to sales returns, and $93,900 and $98,500 of reserve for vendor discounts to sell remaining inventory as of February 28, 2018 and 2017, respectively. Inventories—Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average costing method. We present a portion of our inventory as a noncurrent asset. Occasionally we purchase book inventory in quantities in excess of what will be sold within the normal operating cycle due to minimum order requirements of our primary supplier. These excess quantities are included in noncurrent inventory. We estimate noncurrent inventory using the current year turnover ratio by title. All inventory in excess of 2½ years of anticipated sales is classified as noncurrent inventory. Consultants that meet certain eligibility requirements are allowed to receive inventory on consignment. Consignment inventory is stated at cost, less an estimated reserve for consignment inventory that is not expected to be sold or returned to the Company. The total value of inventory on consignment with active consultants was $1,270,700 and $1,140,700 at February 28, 2018 and 2017, respectively. The Company has reserved for consignment inventory not expected to be sold or returned of $181,500 and $25,000 as of February 28, 2018 and 2017, respectively. Inventory related to inactive consultants is reclassified to accounts receivables and amounted to $278,500 and $309,000 at February 28, 2018 and 2017, respectively. Such inventory is subject to a reserve based on estimated amounts that will not be sold or returned. This reserve is included in the Allowance for Doubtful Accounts. Inventories are presented net of a valuation allowance, which includes reserves for inventory obsolescence and active consultant consignment inventory that is not expected to be sold or returned. Management estimates the allowance for both current and noncurrent inventory. The allowance is based on management’s identification of slow moving inventory and estimated consignment inventory that will not be sold or returned. Property, Plant and Equipment—Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows:
Capitalized projects that are not placed in service are recorded as in progress and are not depreciated until the related assets are placed in service. Impairments of Long-Lived Assets—We review the value of long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable based on estimated cash flows. Such indicators include, among others, the nature of the asset, the projected future economic benefit of the asset, historical and future cash flows and profitability measurements. If the carrying value of an asset exceeds the future undiscounted cash flows expected from the asset, we recognize an impairment charge for the excess of carrying value of the asset over its estimated fair value. Determination as to whether and how much an asset is impaired involves management estimates and can be impacted by other uncertainties. We recorded impairment loss of $1.1 million to long-lived assets in our UBAM segment in the fourth quarter of fiscal year 2017 (Note 4). No impairment was noted during fiscal year 2018. Income Taxes—We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and the tax basis of assets and liabilities using the current tax laws and rates. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts that are “more likely than not” to be realized. Revenue Recognition—The New Revenue Standard will be effective for the Company in the first quarter of fiscal 2019. The Company is evaluating the adoption methodology and the impact on its financial position, results of operations and cash flows. This includes a review of current accounting policies and practices to identify potential differences that would result from applying the guidance. While this evaluation is in progress, and the impact is not fully assessed, the Company expects this standard will not result in material changes. Sales are generally recognized and recorded when products are shipped. Products are shipped FOB shipping point. UBAM’s sales are generally paid at the time the product is ordered. Sales which have been paid for but not shipped are classified as deferred revenue on the balance sheet. Sales associated with consignment inventory are recognized when reported and payment associated with the sale has been remitted. Transportation revenue represents the amount billed to the customer for shipping the product and is recorded when the product is shipped. Estimated allowances for sales returns are recorded as sales are recognized. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit or damaged at customer locations. It is industry practice to accept returns from retail customers for non-damaged products. Management has estimated and included a reserve for sales returns of $100,000 and $190,000 for the fiscal years ended February 28, 2018 and 2017, respectively. Advertising Costs—Advertising costs are expensed as incurred. Advertising expenses, included in general and administrative expenses in the statements of earnings, were $546,600 and $266,400 for the years ended February 28, 2018 and 2017, respectively. Shipping and Handling Costs—We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs were $15,990,800 and $16,637,500 for the years ended February 28, 2018 and 2017, respectively. Interest Expense—Interest related to our outstanding debt is recognized as incurred. Interest expense, classified separately in the statements of earnings, were $1,119,500 and $1,028,800 for the years ended February 28, 2018 and 2017, respectively. Interest Expense—Interest related to our outstanding debt is recognized as incurred. Interest expense, classified separately in the statements of earnings, were $1,119,500 and $1,028,800 for the years ended February 28, 2018 and 2017, respectively. Earnings per Share—Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares outstanding and dilutive potential common shares issuable which include, where appropriate, the assumed exercise of options. In computing Diluted EPS, we have utilized the treasury stock method. The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below.
Stock-Based Compensation—Share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at date of grant and recognized as compensation expense over the requisite service period, net of estimated forfeitures. New Accounting Pronouncements—The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that the following recently issued accounting standard updates (“ASU”) apply to us. In May 2014, FASB issued ASU No. 2014-09, and amended with ASU No. 2015-14 “Revenue from Contracts with Customers,” which provides a single revenue recognition model which is intended to improve comparability over a range of industries, companies and geographical boundaries and will also result in enhanced disclosures. The changes are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which means the first quarter of our fiscal year 2019. We do not expect the adoption of this ASU will have a significant impact on the Company’s financial position, results of operations and cash flows. In July 2015, FASB issued ASU No. 2015-11 "Inventory - Simplifying the Measurement of Inventory", which is intended to allow measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU became effective for the Company on March 1, 2017. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations and cash flows. In November 2015, FASB issued ASU No. 2015-17, “Income Taxes - Balance Sheet Classification of Deferred Taxes,” which is intended to improve how deferred taxes are classified on organizations’ balance sheets by eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. The changes are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which means the first quarter of our fiscal year 2018. We have retrospectively implemented this new presentation in our financial statements. As of February 28, 2017, we reclassified $466,600 of current deferred tax assets to noncurrent assets and netted $338,600 of deferred tax liabilities against the balance on the balance sheet. The adoption of this ASU did not affect our statements of earnings. In February 2016, FASB issued ASU No. 2016-02, “Leases,” which is intended to establish a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset. The new standard is effective for interim and annual periods beginning after December 15, 2018, which means the first quarter of our fiscal year 2020. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. We are currently reviewing the ASU and evaluating the potential impact on our financial statements. In March 2016, FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU became effective for the Company on March 1, 2017. The adoption of this ASU did not have a material impact on the Company's financial position, results of operations and cash flows. In June 2016, FASB issued ASU No. 2016-13 "Financial Instruments—Credit Losses", which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means the first quarter of our fiscal year 2021. We expect the implementation of this ASU will not have a significant impact on our financial statements. In August 2016, FASB issued ASU No. 2016-15 “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments.” The guidance's objective is to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flow. The new standards required date of adoption is effective for fiscal years beginning after December 15, 2017, which means the first quarter of our fiscal year 2019. Adoption and restatement of the cash flow statement for the new standard is not expected to be material. In May 2017, FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which means the first quarter of our fiscal year 2019. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations and cash flows. On December 22, 2017, the Securities Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 provides for a measurement period that may not extend beyond one year from the Tax Act enactment date for companies to complete the required accounting under ASC 740. In accordance with SAB 118, a company must reflect, as of the end of the accounting period that includes the date of enactment of the Tax Act, only those income tax effects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that the company’s accounting for certain income tax effects of the Tax Act is incomplete, but the company is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. If the company cannot determine a provisional estimate, it must continue to apply ASC 740 on the basis of the provisions of the tax law that were in effect immediately before the enactment of the Tax Act. At February 28, 2018, our accounting for the Tax Act is complete under SAB 118. Forthcoming guidance, such as regulations or technical corrections, could change how we interpreted provisions of the Tax Act. |
2. INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] | 2. INVENTORIES Inventories consist of the following:
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3. PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following:
During fiscal year 2018, the Company purchased and installed new warehouse equipment and made software enhancements to increase its daily shipping capacity. |
4. IMPAIRMENT |
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Feb. 28, 2018 | |||
Disclosure Text Block Supplement [Abstract] | |||
Asset Impairment Charges [Text Block] |
Beginning in fiscal 2015, the Company began working with a third-party to develop an integrated direct-sales order system. This system was to be used by the Company’s independent sales consultants to assist them in order processing, payment collection, genealogy tracking, and commission reporting among other features. Our sales consultants started using the new system during the third quarter of fiscal 2017. During the fourth quarter of fiscal year 2017 it was concluded that the system was not fulfilling the needs of the direct-sales program. Management evaluated various alternatives, but ultimately concluded it was necessary to abandon the system as it became clear the third-party developer would be unable to get the system to operate as originally intended. As a result, we reverted to our original web-based proprietary system and recognized an impairment loss of $1.1 million, as it was determined that the system had no fair value as a result of being abandoned. |
5. OTHER CURRENT LIABILITIES |
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Other Liabilities Disclosure [Text Block] | 5. OTHER CURRENT LIABILITIES Other current liabilities consist of the following:
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6. INCOME TAXES |
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Income Tax Disclosure [Text Block] | 6. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows:
On December 22, 2017, President Trump signed into law the Tax Act. Among its provisions, the Tax Act reduces the statutory U.S. Corporate income tax rate from a maximum rate of 35% to 21% effective January 1, 2018. The Tax Act also provides for accelerated deductions of certain capital expenditures made after September 27, 2017 through bonus depreciation. Upon the enactment of the Tax Act, we recorded a reduction in our deferred income tax liabilities of $43,200 for the effect of the aforementioned change in the U.S. statutory income tax rate. The application of the Tax Act may change due to regulations subsequently issued by the U.S. Treasury Department. Management has assessed the evidence to estimate whether sufficient future capital gains will be generated to utilize the existing capital loss carryforward. As no current expectation of capital gains exists, management has determined that a valuation allowance is necessary to reduce the carrying value of the capital loss carryforward deferred tax asset as it is “more likely than not” that such assets are unrealizable. The amount of the deferred tax asset considered realizable, however, could be adjusted if future capital gains are generated during the carryforward period which ends February 28, 2019. Management has determined that no valuation allowance is necessary to reduce the carrying value of other deferred tax assets as it is “more likely than not” that such assets are realizable. The components of income tax expense are as follows:
The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate:
Our U.S. federal statutory income tax rate declined from 34.0% to 21.0% as of January 1, 2018. As our fiscal year ends February 28, 2018, our effective tax rate for fiscal 2018 was a blended rate of 31.8%. We file our tax returns in the U.S. and certain state jurisdictions. We are no longer subject to income tax examinations by tax authorities for fiscal years before 2013. Based upon a review of our income tax filing positions, we believe that our positions would be sustained upon an audit and do not anticipate any adjustments that would result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded. We classify interest and penalties associated with income taxes as a component of income tax expense on the statements of earnings. |
7. EMPLOYEE BENEFIT PLAN |
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Retirement Benefits [Abstract] | |||
Pension and Other Postretirement Benefits Disclosure [Text Block] |
We have a profit sharing plan that incorporates the provisions of Section 401(k) of the Internal Revenue Code. The 401(k) plan covers substantially all employees meeting specific age and length of service requirements. Matching contributions are discretionary and amounted to $89,400 and $61,200 during the fiscal years ended February 28, 2018 and 2017, respectively. The 401(k) plan includes an option for employees to invest in our stock, which is purchased from our treasury stock shares. Shares purchased for the 401(k) plan from treasury stock amounted to 4,801 net shares and 25,487 net shares during the fiscal years ended February 28, 2018 and 2017, respectively. |
8. COMMITMENTS |
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Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Text Block] | 8. COMMITMENTS In connection with the purchase our 400,000 square-foot facility on 40-acres, in 2015, we entered into a 15-year lease with the seller, a non-related third party, who leases 181,300 square feet, or 45.3% of the facility. The lease is being accounted for as an operating lease. The cost of the leased space upon acquisition was estimated at $10,159,000, which was also the carrying cost as of February 28, 2018. The accumulated depreciation associated with the leased assets was $789,100 and $438,700 for the fiscal years ended February 28, 2018 and 2017, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment-net in the balance sheets. The lessee pays $110,100 per month, through the lease anniversary date of December 2018, with a 2.0% annual increase adjustment on each anniversary date thereafter. The lease terms allow for one five-year extension, which is not a bargain renewal option, at the expiration of the 15-year term. Revenue associated with the lease is being recorded on a straight-line basis and is reported in other income on the statements of earnings. The following table reflects future minimum rental income payments under the non-cancellable portion of this lease as of February 28, 2018:
At February 28, 2018, we had outstanding purchase commitments for inventory totaling approximately $18,906,600 which is due during fiscal year 2019. Of these commitments, $13,436,100 were with Usborne, $5,339,100 with various Kane Miller publishers and the remaining $131,400 with other suppliers. Rent expense for the year ended February 28, 2018 and 2017, was $53,400 and $69,500, respectively. As of February 28, 2018, we did not have any lease commitments in excess of one year. |
9. DEBT |
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Debt Disclosure [Text Block] | 9. DEBT Debt consists of the following:
We have a Loan Agreement dated as of March 10, 2016 (as amended the “Loan Agreement”) with MidFirst Bank (“the Bank”) which includes multiple loans. Term Loan #1 is comprised of Tranche A totaling $13.4 million and Tranche B totaling $5.0 million, both with the maturity date of December 1, 2025. Tranche A has a fixed interest rate of 4.23% and interest is payable monthly. Tranche B interest is payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.70% at February 28, 2018). Term Loan #1 is secured by the primary office, warehouse and land. The outstanding borrowings on Tranche A were $12,453,300 and $12,902,800 at February 28, 2018 and 2017, respectively. The outstanding borrowings on Tranche B were $4,657,900 and $4,813,800 at February 28, 2018 and 2017, respectively. We also have Term Loan #2 with the Bank in the amount of $4.0 million with the maturity date of June 28, 2021, and interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.70% at February 28, 2018). Term Loan #2 is secured by our secondary warehouse and land. The Loan Agreement also provided a $15.0 million revolving loan (“line of credit”) through June 15, 2018 with interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.70% at February 28, 2018). The outstanding borrowings on Term Loan #2 were $3,595,100 and $3,847,700 at February 28, 2018 and 2017, respectively. We had $0 and $4,882,900 in borrowings outstanding on line of credit at February 28, 2018 and 2017, respectively. Available credit under the revolving credit agreement was $9,424,000 at February 28, 2018 and $2,117,100 at February 28, 2017. The Tranche B, the line of credit and the Term Loan #2 all accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA ratio which is payable monthly. The current pricing tier is as follows:
Adjusted Funded Debt is defined as all long term and short-term bank debt less the outstanding balances of Tranche A and Tranche B Term Loans. EBITDA is defined in the Loan Agreement as earnings before interest expense, income tax expense (benefit) and depreciation and amortization expenses, reduced by rental income. The $15.0 million line of credit is limited to advance rates on eligible receivables and eligible inventory levels. The President and Chief Executive Officer and his wife have executed a Guaranty Agreement obligating them to repay $3,680,000 of any unpaid Term Loans, unpaid accrued interest and any recourse amounts as defined in the Continuing Guaranty Agreement. The Loan Agreement contains a provision for our use of the Bank’s letters of credit. The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 15, 2018, and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. For the year ended February 28, 2018, we had no letters of credit outstanding. The Loan Agreement also contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures, leasing transactions we can make on a quarterly basis. Additionally, the Loan Agreement places limitations on the amount of dividends that may be distributed and certain stock buyback transactions. The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows:
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10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS |
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Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
The Board of Directors adopted the 2002 Incentive Stock Option Plan (the “2002 Plan”) in June of 2002. The 2002 Plan also authorized us to grant up to 1,000,000 stock options. Options granted under the 2002 Plan vest at date of grant and are exercisable up to ten years from the date of grant. The exercise price on options granted is equal to the market price at the date of grant. Options outstanding at February 28, 2018 expire in December 2019. A summary of the status of our 2002 Plan as of February 28, 2018 and 2017, and changes during the years then ended is presented below:
At February 28, 2018, all options outstanding are exercisable with an aggregate intrinsic value of $70,500 and weighted-average remaining contractual terms of options outstanding of 1.8 years. |
11. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) |
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Quarterly Financial Information [Text Block] | 11. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended February 28, 2018 and 2017.
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12. BUSINESS SEGMENTS |
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Segment Reporting Disclosure [Text Block] |
We have two reportable segments, Publishing and UBAM, which are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate segment performance based on earnings (loss) before income taxes of the segments, which is defined as segment net sales reduced by direct cost of sales and direct expenses. Corporate expenses, depreciation, interest expense, other income and income taxes are not allocated to the segments, but are listed in the “Other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management. Our assets and liabilities are not allocated on a segment basis. Information by industry segment for the years ended February 28, 2018 and 2017 is set forth below:
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13. STOCK REPURCHASE PLAN |
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Stockholders' Equity Note [Abstract] | |||
Stockholders' Equity Note Disclosure [Text Block] |
In April 2008, the Board of Directors authorized us to purchase up to an additional 500,000 shares of our common stock under the plan initiated in 1998. This plan has no expiration date. During fiscal year 2018, we purchased 6,525 shares of common stock at an average price of $9.73 per share totaling approximately $63,500. The maximum number of shares that may be repurchased in the future is 296,604. |
14. FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 14. FAIR VALUE MEASUREMENTS The valuation hierarchy included in U.S. GAAP considers the transparency of inputs used to value assets and liabilities as of the measurement date. A financial instrument's classification within the valuation hierarchy is based on the lowest level of input that is significant to its fair value measurement. The three levels of the valuation hierarchy and the classification of our financial assets and liabilities within the hierarchy are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. If an asset or liability has a specified term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability. We do not report any assets or liabilities at fair value in the financial statements. However, the estimated fair value of our line of credit is estimated by management to approximate the carrying value of $0 and $4,882,900 at February 28, 2018 and 2017, respectively. The estimated fair value of our term notes payable is estimated by management to approximate $19,454,500 and $20,130,100 at February 28, 2018 and 2017, respectively. Management's estimates are based on the obligations' characteristics, including floating interest rate, maturity, and collateral. Such valuation inputs are considered a Level 2 measurement in the fair value valuation hierarchy. |
15. SUBSEQUENT EVENT |
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Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENTS On May 25, 2018, the Board of Directors of EDC approved a $.10 dividend that will be paid to shareholders of record on Monday, June 4, 2018. |
Accounting Policies, by Policy (Policies) |
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Basis of Accounting, Policy [Policy Text Block] | Nature of Business—Educational Development Corporation (“we”, “our”, “us”, or “the Company”) distributes books and publications through our Usborne Books & More (“UBAM”) and EDC Publishing (“Publishing”) divisions to individual consumers, book, toy and gift stores, libraries and home educators located throughout the United States (“U.S.”). We are the exclusive U.S. trade co-publisher of books and related items, published by Usborne Publishing Limited (“Usborne”), an England-based publishing company, our largest supplier. We are also a publishing company through our ownership of Kane Miller Book Publisher (“Kane Miller”). |
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Use of Estimates, Policy [Policy Text Block] | Estimates—Our financial statements were prepared in conformity with generally accepted accounting principles in the United States of America, which requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual results could differ from these estimates. |
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Reclassification, Policy [Policy Text Block] | Reclassifications—Certain reclassifications have been made to the fiscal 2017 balance sheet and statement of earnings to conform to the classifications |
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Concentration Risk, Credit Risk, Policy [Policy Text Block] | Business Concentration—A significant portion of our inventory purchases are concentrated with Usborne. Purchases from them were approximately $15.1 million and $34.8 million for the years ended February 28, 2018 and 2017, respectively. Total inventory purchases for those same periods were approximately $24.5 million and $45.4 million, respectively. As of February 28, 2018, our outstanding accounts payable due to Usborne was $5.3 million. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents—Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000. We have never experienced any losses related to these balances. The majority of payments due from banks for third party credit card transactions process within two business days. These amounts due are classified as cash and cash equivalents. Cash and cash equivalents also include demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. |
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Receivables, Policy [Policy Text Block] | Accounts Receivable—Accounts receivable are uncollateralized customer obligations due under normal trade terms, generally requiring payment within thirty days from the invoice date. Extended payment terms are offered at certain times of the year for orders that meet minimum quantities or amounts. Accounts receivable are stated at the amount management expects to collect from outstanding balances. Delinquency fees are not assessed. Payments of accounts receivable are allocated to the specific invoices identified on the customers’ remittance advice. Accounts receivable are carried at original invoice amount less an estimated reserve made for returns and discounts based on quarterly review of historical rates of returns and expected discounts to be taken. The carrying amount of accounts receivable is reduced, if needed, by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected. Accounts receivable also include consignment inventory balances of inactive consultants as the Company considers these amounts to be collectable directly from the inactive consultants either through payment or the return of titles consigned. Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Recoveries of accounts receivable previously written off are recorded as income when received. Management has estimated an allowance for doubtful accounts and sales returns of $675,600 and $675,000 as of February 28, 2018 and 2017, respectively. Included within this allowance is $278,500 and $217,000 of reserve related to consignment inventory held by inactive consultants, $100,000 and $190,000 of reserve related to sales returns, and $93,900 and $98,500 of reserve for vendor discounts to sell remaining inventory as of February 28, 2018 and 2017, respectively. |
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Inventory, Policy [Policy Text Block] | Inventories—Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average costing method. We present a portion of our inventory as a noncurrent asset. Occasionally we purchase book inventory in quantities in excess of what will be sold within the normal operating cycle due to minimum order requirements of our primary supplier. These excess quantities are included in noncurrent inventory. We estimate noncurrent inventory using the current year turnover ratio by title. All inventory in excess of 2½ years of anticipated sales is classified as noncurrent inventory. Consultants that meet certain eligibility requirements are allowed to receive inventory on consignment. Consignment inventory is stated at cost, less an estimated reserve for consignment inventory that is not expected to be sold or returned to the Company. The total value of inventory on consignment with active consultants was $1,270,700 and $1,140,700 at February 28, 2018 and 2017, respectively. The Company has reserved for consignment inventory not expected to be sold or returned of $181,500 and $25,000 as of February 28, 2018 and 2017, respectively. Inventory related to inactive consultants is reclassified to accounts receivables and amounted to $278,500 and $309,000 at February 28, 2018 and 2017, respectively. Such inventory is subject to a reserve based on estimated amounts that will not be sold or returned. This reserve is included in the Allowance for Doubtful Accounts. Inventories are presented net of a valuation allowance, which includes reserves for inventory obsolescence and active consultant consignment inventory that is not expected to be sold or returned. Management estimates the allowance for both current and noncurrent inventory. The allowance is based on management’s identification of slow moving inventory and estimated consignment inventory that will not be sold or returned. |
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Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment—Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows:
Capitalized projects that are not placed in service are recorded as in progress and are not depreciated until the related assets are placed in service. |
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Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairments of Long-Lived Assets—We review the value of long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable based on estimated cash flows. Such indicators include, among others, the nature of the asset, the projected future economic benefit of the asset, historical and future cash flows and profitability measurements. If the carrying value of an asset exceeds the future undiscounted cash flows expected from the asset, we recognize an impairment charge for the excess of carrying value of the asset over its estimated fair value. Determination as to whether and how much an asset is impaired involves management estimates and can be impacted by other uncertainties. We recorded impairment loss of $1.1 million to long-lived assets in our UBAM segment in the fourth quarter of fiscal year 2017 (Note 4). No impairment was noted during fiscal year 2018. |
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Income Tax, Policy [Policy Text Block] | Income Taxes—We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and the tax basis of assets and liabilities using the current tax laws and rates. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts that are “more likely than not” to be realized. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition—The New Revenue Standard will be effective for the Company in the first quarter of fiscal 2019. The Company is evaluating the adoption methodology and the impact on its financial position, results of operations and cash flows. This includes a review of current accounting policies and practices to identify potential differences that would result from applying the guidance. While this evaluation is in progress, and the impact is not fully assessed, the Company expects this standard will not result in material changes. Sales are generally recognized and recorded when products are shipped. Products are shipped FOB shipping point. UBAM’s sales are generally paid at the time the product is ordered. Sales which have been paid for but not shipped are classified as deferred revenue on the balance sheet. Sales associated with consignment inventory are recognized when reported and payment associated with the sale has been remitted. Transportation revenue represents the amount billed to the customer for shipping the product and is recorded when the product is shipped. Estimated allowances for sales returns are recorded as sales are recognized. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit or damaged at customer locations. It is industry practice to accept returns from retail customers for non-damaged products. Management has estimated and included a reserve for sales returns of $100,000 and $190,000 for the fiscal years ended February 28, 2018 and 2017, respectively. |
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Advertising Costs, Policy [Policy Text Block] | Advertising Costs—Advertising costs are expensed as incurred. Advertising expenses, included in general and administrative expenses in the statements of earnings, were $546,600 and $266,400 for the years ended February 28, 2018 and 2017, respectively. |
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Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs—We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs were $15,990,800 and $16,637,500 for the years ended February 28, 2018 and 2017, respectively. |
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Interest Expense, Policy [Policy Text Block] | Interest Expense—Interest related to our outstanding debt is recognized as incurred. Interest expense, classified separately in the statements of earnings, were $1,119,500 and $1,028,800 for the years ended February 28, 2018 and 2017, respectively. |
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Earnings Per Share, Policy [Policy Text Block] | Earnings per Share—Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares outstanding and dilutive potential common shares issuable which include, where appropriate, the assumed exercise of options. In computing Diluted EPS, we have utilized the treasury stock method. The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below.
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation—Share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at date of grant and recognized as compensation expense over the requisite service period, net of estimated forfeitures. |
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New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements—The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that the following recently issued accounting standard updates (“ASU”) apply to us. In May 2014, FASB issued ASU No. 2014-09, and amended with ASU No. 2015-14 “Revenue from Contracts with Customers,” which provides a single revenue recognition model which is intended to improve comparability over a range of industries, companies and geographical boundaries and will also result in enhanced disclosures. The changes are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which means the first quarter of our fiscal year 2019. We do not expect the adoption of this ASU will have a significant impact on the Company’s financial position, results of operations and cash flows. In July 2015, FASB issued ASU No. 2015-11 "Inventory - Simplifying the Measurement of Inventory", which is intended to allow measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU became effective for the Company on March 1, 2017. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations and cash flows. In November 2015, FASB issued ASU No. 2015-17, “Income Taxes - Balance Sheet Classification of Deferred Taxes,” which is intended to improve how deferred taxes are classified on organizations’ balance sheets by eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. The changes are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which means the first quarter of our fiscal year 2018. We have retrospectively implemented this new presentation in our financial statements. As of February 28, 2017, we reclassified $466,600 of current deferred tax assets to noncurrent assets and netted $338,600 of deferred tax liabilities against the balance on the balance sheet. The adoption of this ASU did not affect our statements of earnings. In February 2016, FASB issued ASU No. 2016-02, “Leases,” which is intended to establish a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset. The new standard is effective for interim and annual periods beginning after December 15, 2018, which means the first quarter of our fiscal year 2020. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. We are currently reviewing the ASU and evaluating the potential impact on our financial statements. In March 2016, FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU became effective for the Company on March 1, 2017. The adoption of this ASU did not have a material impact on the Company's financial position, results of operations and cash flows. In June 2016, FASB issued ASU No. 2016-13 "Financial Instruments—Credit Losses", which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means the first quarter of our fiscal year 2021. We expect the implementation of this ASU will not have a significant impact on our financial statements. In August 2016, FASB issued ASU No. 2016-15 “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments.” The guidance's objective is to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flow. The new standards required date of adoption is effective for fiscal years beginning after December 15, 2017, which means the first quarter of our fiscal year 2019. Adoption and restatement of the cash flow statement for the new standard is not expected to be material. In May 2017, FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which means the first quarter of our fiscal year 2019. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations and cash flows. On December 22, 2017, the Securities Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 provides for a measurement period that may not extend beyond one year from the Tax Act enactment date for companies to complete the required accounting under ASC 740. In accordance with SAB 118, a company must reflect, as of the end of the accounting period that includes the date of enactment of the Tax Act, only those income tax effects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that the company’s accounting for certain income tax effects of the Tax Act is incomplete, but the company is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. If the company cannot determine a provisional estimate, it must continue to apply ASC 740 on the basis of the provisions of the tax law that were in effect immediately before the enactment of the Tax Act. At February 28, 2018, our accounting for the Tax Act is complete under SAB 118. Forthcoming guidance, such as regulations or technical corrections, could change how we interpreted provisions of the Tax Act. |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below.
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Property, Plant and Equipment [Table Text Block] |
Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows:
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2. INVENTORIES (Tables) |
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Schedule of Inventory, Current [Table Text Block] |
Inventories consist of the following:
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Schedule of Inventory, Noncurrent [Table Text Block] |
Inventories consist of the following:
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3. PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Table Text Block] |
Property, plant and equipment consist of the following:
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5. OTHER CURRENT LIABILITIES (Tables) |
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Other Current Liabilities [Table Text Block] |
Other current liabilities consist of the following:
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6. INCOME TAXES (Tables) |
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows:
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
The components of income tax expense are as follows:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate:
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8. COMMITMENTS (Tables) |
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] |
The following table reflects future minimum rental income payments under the non-cancellable portion of this lease as of February 28, 2018:
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9. DEBT (Tables) |
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Schedule of Debt [Table Text Block] |
Debt consists of the following:
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Schedule of Long-term Debt Instruments [Table Text Block] |
The Tranche B, the line of credit and the Term Loan #2 all accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA ratio which is payable monthly. The current pricing tier is as follows:
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Schedule of Maturities of Long-term Debt [Table Text Block] |
The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows:
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10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Tables) |
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Share-based Compensation, Stock Options, Activity [Table Text Block] |
A summary of the status of our 2002 Plan as of February 28, 2018 and 2017, and changes during the years then ended is presented below:
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11. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) |
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Quarterly Financial Information [Table Text Block] |
The following is a summary of the quarterly results of operations for the years ended February 28, 2018 and 2017.
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12. BUSINESS SEGMENTS (Tables) |
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
Information by industry segment for the years ended February 28, 2018 and 2017 is set forth below:
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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Diluted Earnings Per Share - USD ($) |
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Earnings Per Share: | ||||||||||
Net earnings applicable to common shareholders (in Dollars) | $ 5,214,700 | $ 2,860,900 | ||||||||
Shares: | ||||||||||
Weighted average shares outstanding–basic | 4,087,998 | 4,077,695 | ||||||||
Assumed exercise of options | 2,663 | 5,159 | ||||||||
Weighted average shares outstanding–diluted | 4,090,661 | 4,082,854 | ||||||||
Diluted Earnings Per Share: | ||||||||||
Basic (in Dollars per share) | $ 0.21 | $ 0.52 | $ 0.25 | $ 0.30 | $ 0.16 | $ 0.31 | $ 0.08 | $ 0.15 | $ 1.28 | $ 0.70 |
Diluted (in Dollars per share) | $ 0.20 | $ 0.52 | $ 0.25 | $ 0.30 | $ 0.16 | $ 0.31 | $ 0.08 | $ 0.15 | $ 1.27 | $ 0.70 |
2. INVENTORIES (Details) - Schedule of Inventory, Current - USD ($) |
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---|---|---|
Current: | ||
Book inventory | $ 26,800,000 | $ 34,278,100 |
Inventory valuation allowance | (181,500) | (25,000) |
Inventories net–current | $ 26,618,500 | $ 34,253,100 |
2. INVENTORIES (Details) - Schedule of Inventory, Noncurrent - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Noncurrent: | ||
Book inventory | $ 707,700 | $ 467,100 |
Inventory valuation allowance | (271,800) | (275,000) |
Inventories net–noncurrent | $ 435,900 | $ 192,100 |
4. IMPAIRMENT (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Disclosure Text Block Supplement [Abstract] | ||
Asset Impairment Charges | $ 0 | $ 1,082,300 |
5. OTHER CURRENT LIABILITIES (Details) - Schedule of Other Current Liabilities - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Schedule of Other Current Liabilities [Abstract] | ||
Accrued royalties | $ 791,800 | $ 721,600 |
Accrued UBAM incentives | 633,800 | 1,180,400 |
Accrued freight | 357,800 | 494,900 |
Sales tax payable | 557,600 | 425,700 |
Other | 959,900 | 395,600 |
$ 3,300,900 | $ 3,218,200 |
6. INCOME TAXES (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Jan. 01, 2018 |
Dec. 22, 2017 |
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 31.80% | 34.00% |
Increase (Decrease) in Deferred Income Taxes (in Dollars) | $ (43,200) |
6. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Allowance for doubtful accounts | $ 149,600 | $ 164,600 |
Inventory overhead capitalization | 69,800 | 131,000 |
Inventory valuation allowance | 47,200 | 9,500 |
Inventory valuation allowance – noncurrent | 70,700 | 104,500 |
Allowance for sales returns | 26,000 | 72,200 |
Capital loss carryforward | 111,900 | 163,600 |
Accruals | 141,700 | 89,300 |
Deferred tax assets | 616,900 | 734,700 |
Less valuation allowance | (111,900) | (163,600) |
Subtotal deferred tax assets: | 505,000 | 571,100 |
Property, plant and equipment | (641,900) | (443,100) |
Deferred tax liabilities | (641,900) | (443,100) |
Net deferred income tax assets (liabilities) | $ (136,900) | $ 128,000 |
6. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) |
12 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Current: | ||
Federal | $ 1,964,700 | $ 1,267,600 |
State | 388,400 | 262,500 |
2,353,100 | 1,530,100 | |
Deferred: | ||
Federal | 239,800 | 186,200 |
State | 25,100 | 34,900 |
264,900 | 221,100 | |
Total income tax expense | $ 2,618,000 | $ 1,751,200 |
6. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation |
12 Months Ended | |||
---|---|---|---|---|
Jan. 01, 2018 |
Dec. 22, 2017 |
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 31.80% | 34.00% |
U.S. state and local income taxes–net of federal benefit | 4.00% | 4.00% | ||
Other | (2.40%) | 0.00% | ||
Total income tax expense | 33.40% | 38.00% |
7. EMPLOYEE BENEFIT PLAN (Details) - 401(k) Plan [Member] - USD ($) |
12 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Feb. 28, 2017 |
|
7. EMPLOYEE BENEFIT PLAN (Details) [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 89,400 | $ 61,200 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 4,801 | 25,487 |
8. COMMITMENTS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases |
Feb. 28, 2018
USD ($)
|
---|---|
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2019 | $ 1,324,800 |
2020 | 1,351,300 |
2021 | 1,378,300 |
2022 | 1,405,900 |
2023 | 1,434,000 |
Thereafter | 12,269,300 |
Total | $ 19,163,600 |
9. DEBT (Details) - Schedule of Debt - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Schedule of Debt [Abstract] | ||
Line of credit | $ 0 | $ 4,882,900 |
Long-term debt | 20,706,300 | 21,564,300 |
Less current maturities | (881,200) | (898,500) |
Long-term debt, net of current maturities | $ 19,825,100 | $ 20,665,800 |
9. DEBT (Details) - Schedule of Maturities of Long-term Debt - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
Schedule of Maturities of Long-term Debt [Abstract] | ||
2019 | $ 881,200 | |
2020 | 920,400 | |
2021 | 959,000 | |
2022 | 1,003,900 | |
2023 | 1,048,600 | |
Thereafter | 15,893,200 | |
$ 20,706,300 | $ 21,564,300 |
10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) - 2002 Plan [Member] - USD ($) |
1 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2002 |
Feb. 28, 2018 |
|
10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 1,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | exercise price on options granted is equal to the market price at the date of grant | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $ 70,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 292 days | |
Maximum [Member] | ||
10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years |
10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) - Schedule of Stock Option Activity - $ / shares |
12 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Schedule of Stock Option Activity [Abstract] | ||
Outstanding at beginning of Year | 10,000 | 10,000 |
Outstanding at beginning of Year | $ 5.25 | $ 5.25 |
Exercised | 5,000 | 0 |
Exercised | $ 5.25 | $ 0 |
Expired | 0 | 0 |
Expired | $ 0 | $ 0 |
Outstanding at End of Year | 5,000 | 10,000 |
Outstanding at End of Year | $ 5.25 | $ 5.25 |
11. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - Schedule of Quarterly Financial Information - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Schedule of Quarterly Financial Information [Abstract] | ||||||||||
Net Revenues | $ 21,946,000 | $ 38,908,000 | $ 24,181,300 | $ 26,930,800 | $ 27,253,300 | $ 30,697,600 | $ 25,893,000 | $ 22,784,200 | $ 111,966,100 | $ 106,628,100 |
Gross Margin | 15,593,900 | 28,413,200 | 17,521,700 | 19,506,000 | 21,140,100 | 22,369,500 | 18,394,600 | 16,110,400 | 81,034,800 | 78,014,600 |
Net Earnings | $ 824,100 | $ 2,128,400 | $ 1,036,900 | $ 1,225,300 | $ 648,000 | $ 1,274,200 | $ 318,500 | $ 620,200 | $ 5,214,700 | $ 2,860,900 |
Basic Earnings Per Share (in Dollars per share) | $ 0.21 | $ 0.52 | $ 0.25 | $ 0.30 | $ 0.16 | $ 0.31 | $ 0.08 | $ 0.15 | $ 1.28 | $ 0.70 |
Diluted Earnings Per Share (in Dollars per share) | $ 0.20 | $ 0.52 | $ 0.25 | $ 0.30 | $ 0.16 | $ 0.31 | $ 0.08 | $ 0.15 | $ 1.27 | $ 0.70 |
12. BUSINESS SEGMENTS (Details) |
12 Months Ended |
---|---|
Feb. 28, 2017 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
12. BUSINESS SEGMENTS (Details) - Schedule of Information by Industry Segment - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 28, 2018 |
Feb. 28, 2017 |
|
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | $ 21,946,000 | $ 38,908,000 | $ 24,181,300 | $ 26,930,800 | $ 27,253,300 | $ 30,697,600 | $ 25,893,000 | $ 22,784,200 | $ 111,966,100 | $ 106,628,100 |
Earnings (Loss) Before Income Taxes | 7,832,700 | 4,612,100 | ||||||||
Publishing [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | 8,267,500 | 9,007,500 | ||||||||
Earnings (Loss) Before Income Taxes | 1,763,200 | 2,566,400 | ||||||||
Usborne Books and More [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | 103,698,600 | 97,620,600 | ||||||||
Earnings (Loss) Before Income Taxes | 19,428,600 | 15,376,000 | ||||||||
Other Segments [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Earnings (Loss) Before Income Taxes | $ (13,359,100) | $ (13,330,300) |
13. STOCK REPURCHASE PLAN (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Apr. 30, 2008 |
|
Stockholders' Equity Note [Abstract] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000 | |
Stock Repurchased During Period, Shares | 6,525 | |
Stock Repurchased During Period, Average Price Paid (in Dollars per share) | $ 9.73 | |
Stock Repurchased During Period, Value (in Dollars) | $ 63,500 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 296,604 |
14. FAIR VALUE MEASUREMENTS (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) |
Feb. 28, 2018 |
Feb. 28, 2017 |
---|---|---|
14. FAIR VALUE MEASUREMENTS (Details) [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 0 | $ 4,882,900 |
Long-term Debt, Fair Value | $ 19,454,500 | $ 20,130,100 |
15. SUBSEQUENT EVENT (Details) - Subsequent Event [Member] |
May 24, 2018
$ / shares
|
---|---|
15. SUBSEQUENT EVENT (Details) [Line Items] | |
Dividends Payable, Date Declared | May 25, 2018 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 |
Dividends Payable, Date to be Paid | Jun. 04, 2018 |
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