Educational Development Corporation Announces Record Third Quarter 2008 Results

TULSA, Okla., Jan. 15 /PRNewswire-FirstCall/ -- http://www.edcpub.com --
Educational Development Corporation (Nasdaq: EDUC) today reported results for
the third quarter and the first nine months of fiscal 2008, ended November 30,
2007.
Third quarter earnings per share were an all-time record for the Company,
reversing a three year decline for this period. Net revenues were $9,903,500
for the third quarter ended November 30, 2007, the highest in four years and
second highest in the Company's history, compared to $9,820,500 for the same
period last year. Earnings per share increased to $.23 from $.21 due to
continued efficiency in operations.
The Publishing Division, which sells to retail outlets, increased net
revenues 11% for the quarter, resulting in part from strong sales to
independent retailers and specialized markets which were up 34%. Sales to
major chains were down 6% over the same quarter the previous year due to a 49%
decline in sales to one major chain. This is an improvement, however as sales
to that chain were off 57% in the first two quarters and we anticipate this
improvement will continue during 2008.
The Home Business division experienced a slight decline of 2% in net
revenue which is reflective of changing sales mix. Home parties and direct
sales were down which was somewhat offset by increasing Internet sales. The
Company launched an aggressive new program in January designed to add new
sales consultants. This program was previously implemented with our affiliate
companies in England and Canada and has proven successful in restoring sales
growth.

EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)

Three Months Ended Nine Months Ended
November 30, November 30,
2007 2006 2007 2006

NET REVENUES $9,903,500 $9,820,500 $23,728,400 $24,411,900
EARNINGS BEFORE
INCOME TAXES 1,406,500 1,304,000 2,951,100 3,095,400
INCOME TAXES 529,700 505,800 1,109,200 1,176,600
NET EARNINGS $876,800 $798,200 $1,841,900 $1,918,800

BASIC AND DILUTED
EARNINGS
PER SHARE:
Basic $0.23 $0.21 $0.49 $0.51
Diluted $0.23 $0.21 $0.48 $0.49

WEIGHTED AVERAGE
NUMBER OF COMMON AND
EQUIVALENT SHARES
OUTSTANDING:
Basic 3,755,704 3,758,422 3,760,554 3,756,975
Diluted 3,845,694 3,872,277 3,867,223 3,876,375

About Educational Development Corporation
Educational Development Corporation sells the Usborne line of educational
children's books through a multi-level sales organization of independent
consultants (http://www.ubah.com), through 5,100 retail stores and over the
Internet. Over 1,400 different titles are available for children of all ages,
with frequent new additions.
SOURCE Educational Development Corporation

Randall White, President of Educational Development Corporation,
+1-918-622-4522