Educational Development Corporation extends credit terms

TULSA, OKLAHOMA - Educational Development Corporation (NASDAQ: EDUC), a children’s book publisher and distributor with a current market capitalization of $11.4 million, has reached an agreement with BOKF, NA to amend its credit facility, extending the maturity dates of its revolving loan and term loans. The amendment, effective as of April 4, 2025, pushes the revolving loan’s maturity to July 11, 2025, with a step-down requirement to $4.5 million by May 31, 2025. Additionally, the maturity dates of two term loans have been extended to September 19, 2025.

The company has expressed appreciation for the patience and cooperation of its banking partner throughout the process of marketing its Hilti Complex for sale. Educational Development Corporation has been actively reducing its bank debt, which has decreased by over $3.0 million, and has also lowered its payables by $2.0 million, thereby strengthening its balance sheet. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.64, indicating its liquid assets exceed short-term obligations, though the company faces profitability challenges with negative earnings in the last twelve months.

In pursuit of selling the Hilti Complex, the company recently engaged Keen-Summit as its real estate broker. The broker has prepared marketing materials and relisted the property. The extended credit terms are intended to provide additional time for the effective completion of the property’s sale.

Mr. White, a representative of the company, stated that the anticipated sale proceeds are expected to pay off the company’s outstanding borrowings under the revolving credit and term loans. Post-sale, the company aims to operate with limited borrowings, which is projected to favorably affect its profitability and cash flow.

Educational Development Corporation, founded as a publisher of children’s books, is the proprietor and sole publisher of Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys. It is also the exclusive multi-level marketing distributor of Usborne Publishing Limited’s children’s books in the United States. The company’s products are sold through various retail outlets and independent brand partners who conduct sales via social media, book fairs, and other events. Despite challenging market conditions reflected in a 36% year-over-year revenue decline, the company maintains impressive gross profit margins of 61.8%. For deeper insights into EDUC’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro.

This report is based on a press release statement from Educational Development Corporation.

In other recent news, Educational Development Corporation has entered into a brokerage agreement with Keen-Summit Capital Partners LLC to market its headquarters and distribution warehouse in Tulsa, known as the Hilti Complex. The property, which spans 402,000 square feet, is currently occupied by EDC and other tenants, including Hilti and Crusoe. This decision aims to maximize shareholder value, and local brokerage services will continue to assist in the sale process. In parallel, EDC has begun discussions to amend the real estate contract for the sale of the Hilti Complex. The proposed amendment, suggested by the buyer, Partner Holdings, includes a 30-day extension to the due diligence period and a delay in the earnest money deposit. EDC is currently reviewing these proposed changes, which could adjust the original contractual obligations and timelines. The outcome of these discussions remains uncertain as both parties work towards a conclusive agreement. These developments are part of EDC’s strategic plans regarding its real estate assets.

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