Educational Development Corporation (EDC) is a publicly traded company on NASDAQ, specializing in children's books, educational manipulatives, and STEAM toys, primarily operating through direct sales via the PaperPie MLM model and wholesale distribution.

# Educational Development Corporation (EDC) - Company Summary

## Business Overview
- **Type:** Publicly traded company listed on NASDAQ with ticker **EDUC**.
- **Incorporation:** Delaware, since August 23, 1965.
- **Headquarters:** Tulsa, Oklahoma (5402 South 122nd East Avenue), with multiple facilities and warehouses.
- **Fiscal Year Ends:** February 28 (or 29 in leap years).

## Core Operations
- **Product Lines:**
  - **Children’s Books:** Owner and exclusive publisher of Kane Miller titles.
  - **Educational Manipulatives:** Maker of Learning Wrap-Ups.
  - **STEAM Toys and Games:** Maker of SmartLab Toys.
- **Distribution Rights:**
  - **Kane Miller Books:** Exclusive rights in the U.S., with some titles also sold in Canada.
  - **Learning Wrap-Ups & SmartLab Toys:** Owned product lines sold domestically and internationally.
  - **Usborne Publishing:** The company is the exclusive U.S. multi-level marketing (MLM) distributor of Usborne children's books.

## Business Segments
1. **Direct Sales Division (“PaperPie”):**
   - Sells products through approximately 7,800 independent Brand Partners.
   - Uses home parties, social media, book fairs, and events.
   - Focuses on online social media platforms (Facebook, etc.) and direct-to-consumer sales.
   - Revenue FY 2025: **87% of net sales** (~$29.85 million).
   - Revenue FY 2024: **89%** (~$45.63 million).
   - Active Brand Partners (FY 2025): 7,800 (down from 15,000 in FY 2024).
   
2. **Publishing Division (“EDC Publishing”):**
   - Markets Kane Miller, SmartLab Toys, and Learning Wrap-Ups via wholesale to retail stores.
   - Serves about 4,000 retail outlets, including book chains, independent stores, gift shops, schools, libraries.
   - Revenue FY 2025: **13% of net sales** (~$4.34 million).
   - Revenue FY 2024: **11%** (~$5.40 million).

## Financial Highlights (FY Ended Feb 28, 2025)
- **Total Net Revenue:** **$34.19 million** (down from $51.03 million in FY 2024).
- **Net Loss:** **$5.26 million** (compared to net income of $0.55 million in FY 2024).
- **Gross Margin:** **$21.03 million**.
- **Operating Expenses:** **$27.80 million**.
- **Interest Expense:** **$2.19 million**.
- **Other Income:** **$2.11 million** (mainly from rental income and sale gains).
- **Income Taxes:** **Tax benefit of $1.59 million**.

## Employees
- **Total Employees:** 83 (as of February 28, 2025).
- **Locations:** Tulsa, Oklahoma; San Diego, California; Ogden, Utah; Seattle, Washington.

## Key Business Details
- The company’s revenue is heavily seasonal, peaking in fall and spring due to holidays.
- The company faces competition from other publishers (like Scholastic), online retailers, and direct-selling companies.
- It has a strategy of building brand partners in PaperPie and expanding retail presence via wholesale.
- The Company has faced liquidity challenges, with ongoing efforts to sell real estate and reduce debt.
- Revenue from Usborne product sales significantly declined in FY 2025, mainly due to unmet minimum purchase requirements and the discontinuation of retail sales.

## Summary
- The company distributes educational and children’s products via direct sales and wholesale channels.
- It operates under a multi-level marketing model for its children’s books through PaperPie.
- Product offerings include books, manipulatives, and STEAM toys.
- Revenue in FY 2025 was approximately $34.19 million, with a net loss of $5.26 million.
- Employs 83 staff members across multiple locations.
- The company is actively engaged in real estate sales to address liquidity concerns.

Educational Development Corporation (EDC) publishes and distributes children's educational products and engages in direct sales through independent Brand Partners, boasting a significant portfolio of children's books and STEAM toys.

# Educational Development Corporation (EDC) Overview

## General Description
Educational Development Corporation (EDC) is a Delaware-based corporation focused on children's education and entertainment products. It was established on August 23, 1965, and engages in the publishing and distribution of children's books, educational manipulatives, and STEAM-based toys and games. The company operates through two main divisions: 

- **Direct Sales Division (PaperPie):** This division sells products directly to consumers via independent sales representatives known as Brand Partners. As of February 29, 2024, it boasts approximately **15,000 active Brand Partners** who engage in various sales strategies including home parties, social media collaborations, and book fairs.

- **Publishing Division (EDC Publishing):** This division markets its products through commissioned trade representatives who reach out to around **4,000 retail outlets**, including bookstores, toy stores, and specialty shops. This segment previously included rights to sell Usborne Publishing's products, which ended in early fiscal 2024.

## Financial Information
- **Net Revenues:** For Fiscal Year 2024, EDC's revenue distribution was approximately **89%** from the PaperPie Direct Sales Division and **11%** from the Publishing Division.
  
- **Employee Count:** As of February 23, 2024, EDC employs **101 full-time employees** across its facilities in Tulsa, Oklahoma; San Diego, California; and Layton, Utah.

- **Products:** The company’s product catalog includes around **2,000 titles** of children’s books and educational toys. These products are designed to engage children in interactive learning experiences, including board books, activity books, and STEAM-based toys like SmartLab Toys and Learning Wrap-Ups.

## Business Vision and Mission
- **Vision Statement:** EDC aims to empower the world by stimulating children's natural curiosity and fostering a lifelong love of learning through products at the intersection of education and play.

- **Mission Statement:** The company is committed to creating impactful stories of tomorrow through the synergy of people, products, and purpose.

## Competitive Landscape
EDC operates in a competitive environment, contending with major publishers like Scholastic Corporation and numerous other domestic and international companies. The PaperPie division must continuously recruit and retain Brand Partners, facing competition from other direct selling businesses and gig economy opportunities for part-time work.

## Key Highlights
- No current material legal proceedings against the company.
- The headquarters and distribution warehouse in Tulsa span **400,000 square feet**, with a **170,000 square foot** warehouse devoted to order fulfillment.
- Financial strategies include a reclassification of their headquarters property as **Assets held for sale** in Q3 of fiscal 2024.

### Summary
Educational Development Corporation is a vibrant player in the educational products industry, combining a robust catalog of children’s books and educational toys with a direct sales strategy that engages thousands of independent representatives. While facing competitive challenges, the company's commitment to education and innovation positions it uniquely in the marketplace.

EDUCATIONAL DEVELOPMENT CORP

10-K / May 19, 2025

10-K / May 21, 2024

10-K / May 19, 2025

Educational Development Corporation (EDC) - Company Summary

Business Overview

Core Operations

Business Segments

Financial Highlights (FY Ended Feb 28, 2025)

Employees

Key Business Details

Summary