TULSA, OK – Educational Development Corporation (NASDAQ:EDUC), a leading provider of educational books and materials with a market capitalization of $14.3 million and impressive gross margins of 62%, today announced significant changes to its board of directors.
The company disclosed in a recent SEC filing that Randall White has resigned from his roles as Director and Chairman of the Board, effective immediately as of last Wednesday. Mr. White, who has been with the company since 1983, expressed no disagreements with management or accounting practices in his departure.
Mr. White's notable contributions to the company include his service as President & CEO from 1986 through 2021 and his role in founding the company's direct-selling division in 1988. His advisory role to the current President & CEO, Craig White, who was appointed in 2021, has also been recognized. The company and its management team have expressed their gratitude for Mr. White's service and his enduring legacy.
In response to the vacancy, the Board has unanimously elected Craig White, the current CEO and President, to also serve as the Chairman of the Board. Craig White, who is a Class II Director with a term through 2026, will assume the additional responsibilities effective from last Wednesday.
The company has not yet appointed a new director to fill the position left by Randall White, stating that it expects to fill the vacancy by the next annual shareholders meeting scheduled for July 2025. Despite this departure, the Board maintains compliance with NASDAQ listing requirements, with three independent directors and one non-independent director. The company maintains strong liquidity with a current ratio of 3.64, though it faces profitability challenges with negative earnings in the last twelve months.
In other recent news, Educational Development Corporation (EDUC) revealed a net loss in its Q3 2024 financial results. The company's net revenues for the quarter were $16.9 million, a decrease from the previous year, and a net loss of $800,000 was recorded.
The loss per share was $0.10, contrasting with $0.24 earnings per share last year. The earnings per share and revenue results were below expectations, with the forecasted EPS of $0.31 significantly higher than the actual loss and the revenue forecast of $46.5 million not met.
Despite these challenges, EDUC is focusing on operational efficiency and strategic initiatives for future growth. The company plans to complete a building sale by March 2025, which is expected to strengthen its financial position.
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