UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): June 8, 2020 (June 3, 2020)  

EDUCATIONAL DEVELOPMENT CORPORATION
(Exact Name of Registrant as Specified in Charter)

Delaware000-0495773-0750007
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

5402 S 122nd E Avenue, Tulsa, Oklahoma 74146
(Address of Principal Executive Offices) (Zip Code)

(918) 622-4522
(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each classTrading SymbolsName of each exchange on which registered
Common stock, $.20 par valueEDUCNASDAQ

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Item 1.02. Termination of a Material Definitive Agreement.

On June 3, 2020, Educational Development Corporation (the “Company”), repaid the loan with MidFirst Bank as the lender (“Lender”) in an aggregate principal amount of $2,912,500 (the “Term Loan #2”) which was originally borrowed on June 28, 2016 with the proceeds being used to fund ongoing operations.  The collateral for Term Loan #2 was the Company’s owned facility located at 10302 East 55th Place, Tulsa, Oklahoma that contains approximately 105,000 square feet of usable space, including 8,000 square feet of office and 97,000 square feet of warehouse space.   The Company uses approximately 76,000 square feet of warehouse space for overflow inventory.   The remaining 8,000 square feet of office and 21,000 square feet of warehouse are leased to third-party tenants with multi-year lease agreements.

The Company issued a press release regarding the loan repayment.

Item 7.01. Regulation FD Disclosure.

On June 8, 2020, Educational Development Corporation, announced via press release, the repayment of Term Loan #2.

Item 9.01. Financial Statements and Exhibits.

(d)        EXHIBITS       

Exhibit
Number
     
Description
99.1  Press release dated as of dated June 8, 2020


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 EDUCATIONAL DEVELOPMENT CORPORATION
   
  
Date: June 8, 2020By: /s/ Randall W. White        
  Randall W. White
  President and Chief Executive Officer
  

EdgarFiling

EXHIBIT 99.1

Educational Development Corporation Announces Recent Repayment of Loan

TULSA, Okla., June 08, 2020 (GLOBE NEWSWIRE) -- Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC) (http://www.edcpub.com) today reports the repayment of one of the Company’s outstanding loans.

Randall White, CEO of Educational Development Corporation, announced the Company has generated excess cash and has used the funds to repay one of the Company’s outstanding loans. 
   
Per Mr. White, “As previously reported, over the past two months we have experienced material growth in our business.  This growth has generated additional cash flows from operations.  Last week we determined that using a portion of our available excess cash balance to pay the $2.9 million balance of a term loan, that is collateralized by the building we own at 10302 East 55th Place, Tulsa, Oklahoma, would be in the best interest of our shareholders.    Additionally, the lease payments from the long-term tenant of our main complex at 5402 S. 122nd East Avenue, Tulsa OK, covers the debt amortization of our only remaining debt.”

Mr. White concluded, “With this debt reduction, we continue to generate sufficient cash and maintain available borrowing capacity to fund our current growth.   We also expect to continue to pay quarterly dividends and expect to continue to buy back shares in the open market during the current fiscal year.” 

About Educational Development Corporation (EDC)

EDC is a publishing company specializing in books for children.  EDC is the exclusive United States trade co-publisher of the line of educational children’s books produced in the United Kingdom by Usborne Publishing Limited (“Usborne”) and we also exclusively publish books through our ownership of Kane Miller Book Publisher (“Kane Miller”); both international award-winning publishers of children’s books.  EDC’s current catalog contains over 2,000 titles, with new additions semi-annually.  Both Usborne and Kane Miller products are sold via 4,000 retail outlets and by independent consultants, who hold book showings in individual homes, book fairs with school and public libraries as well as sales over the internet. 

Contact:
            Educational Development Corporation
            Randall White, (918) 622-4522

Cautionary Statement for the Purpose of the “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995.

The information discussed in this Press Release includes “forward-looking statements.” These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “continue,” “potential,” “should,” “could,” and similar terms and phrases.  Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved.  Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new consultants, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing  for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 29, 2020, all of which are difficult to predict.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur.  All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 29, 2020 and speak only as of the date of this Press Release.  Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.