Q4 2021 Educational Development Corp Earnings Call
Okay.
Yes.
Good day, and thank you for standing by and welcome to the fiscal 2021.
Earnings Conference call.
At this time, all participants on a listen only mode.
After the speaker's presentation, there will be a question and answer session for asked a question. During this session. When he took on.
Our star one on your telephone keypad.
I would now like to turn the call over to Randall White, Chairman and Chief Executive Officer. Please go ahead Paul.
Well. Thank you very much yes, Randall white here and attending in the room with me is Heather Cobb, our chief sales and marketing officer.
Craig White, our Chief operating officer, and Dan O'keefe, our CFO.
Now normally we go to peacefully repeat all the financial information I think you've got it will go on to try to get to the chase here on.
We we had an incredible year the best in our history, our sales were up like 81% our earnings up about 121%, we paid down $7 million from debt and increased our dividend I don't know what we can do any better here and we've done and yet our stock has been.
So like a reason meal so.
I don't know, what's going on myself, so I'm really going over while a boring numbers that you already have why don't we just open it up for questions. He is bringing you guys. You tell me what it is that you think I see some negative reports out there about the company that are not have anything to do with us, but something is causing the market to lose confidence in our company.
After the best year in our history so anybody.
Anybody out there please jump in and maybe you get some insight on what the market is viewing about debt company that makes it a negative.
On sales you've already anybody got any suggestions.
Angela we're going to open up the call to questions and answers here immediately and you can just take the questions as they come in on the question and answer session on the leader Board there.
Okay.
I'd like to ask a question. Please press star one on your telephone keypad and you have that SAR. One on you have a question from the line of Randy read read with current El Paso.
Hi.
Sure.
Hum.
It may have a couple of questions later, but I just jumped on them because of what you said and Mike The only thing I can figure out is I talk to Dan.
On the phone.
I can't remember some time in the last month, or so and I asked him if youre going to still be reporting sales figures every single month like you have for a while which usually come out between about the seventh in the 12th or so in the next month and unless I missed it I didn't see anything for April.
Well you Didnt Miss it.
And so Wow why do we stopped recording monthly sales right now for your question.
Yeah, I guess I'm, just more I mean, I'm, a little curious that basically I'm just trying to sort of answer. Your question. That's the only thing I can figure out, but who knows what.
That's a good start and Youre right I would tell you last year that we just reported year March was down 25%.
And then April was up 69 was up 160, <unk> Oh My Gosh, we've got to get this information because thats drastic changes and then it went along that way and we wound up 81 per cent of hit and you can see the increase decrease towards the end of the year, but were up 81%. So.
Now we are developing in a little more normal pattern by the way and the monthly the monthly reporting isn't quite as significant and due to fluctuations in timing and things that have a month to month quarterly reported two seems to be a more reliable a disclosure of what.
We're done here, but it's not hiding anything.
We're at it.
We want.
We won't sales growth, 81% again, I don't know that we're going to see that but.
Nobody here is not working towards that goal. So it just doesn't seem as meaningful today.
Because we don't have 100% growth we report, but good question, though.
Okay. Thank you.
You bet.
And once a day.
A question Please press star one.
You better start asking questions, we're almost at telling stories.
I've got a lot of them.
Yeah.
Come on you guys.
Well, Okay. You, let me tell you my story and why I think your stocks down.
Well here's the deal on the captain of the good ship Paradise, and I'm seeing out the good ship EDC Paradise.
And we're seeing let's say lay out to the sea of prosperity all my shareholders.
And all of a sudden I'll look back and as some people, Hey, Hey, I didn't get on what come on so I'll kind of steer the ship background sure Les as more people get on at a good price. So we can steam back out into the sea of prosperity. So that's my story.
[laughter], although you've got like my humor, and I know you did.
It's not a question.
One question you only have tall eye on how much your way.
You probably want to know on to the NCAA Hall of Fame induction last weekend in Connecticut.
It was me and about one hundred's basketball Superstars I was the shortest one.
Yeah.
And.
Well.
You don't have to listen some boring so from Dan If you don't ask a question.
Yeah.
Thank you.
Yes.
Don't be shy guys.
Okay.
And we have another question from the line of Randy free with our El Paso.
Hey, Randy I'm just.
I'm just jumping in because I don't know if youre going to have price moves at the N. Two but I'm just trying to think of things so.
I know you don't give projections, but I'm wondering.
You know where are what one to two and a half months into the next into the new fiscal year. So I'm just wondering is there.
Can you give any kind of range of sales or or or earn on per share anything at all I know you really can't do that but unfortunately, I don't know that but.
Maybe for you.
You know what that that year was one year and this year, maybe about the same or less I mean, who knows on I'm just trying to think of that the reason for the stock price.
Hey don't Challenge me that I can't do something because I can do anything I want to because I'm old and on the CEO.
I don't want to get in any travel okay.
You know on.
I don't I won't get in trouble here's the story.
If someone one year ago today was on this call and says.
Randall what do you expect for this year, you think possibly could be expected that we would be up 81% and the largest share in our history. You can go from 113 million to $208 million I wouldn't have so you know the asked me today I'd know just about as much as I did a year ago today, but I will tell you. This I'm going to turn you over to Craig.
Right.
And let him give you a little insight on what we think about our growth potential.
So we got a $6 million Capex project to expand our productivity in the warehouse that's getting ready to go live for the next few weeks so.
We can go from our $205 million to roughly $400 million to $450 million without multiple shifts. So we're anticipating growth continued growth we've got debt warehouse operations capacity to handle it and we're we're ready to go so we're absolutely <unk>.
<unk> continued growth.
That's a forecast from somebody is out there doing it.
I look down on the people on this call on <unk>.
Now some of you guys.
Surely somebody.
<unk> has a question you all not read the papers about things in the industry or.
Other companies in our market segment that might want to ask a question about well, maybe about head count consulting growth or I'm trying to throw out some bones here for you guys. Because you can bring anything you want to this table.
I'll answer any question you have.
Okay and done.
I know you.
We spoke on a couple of times.
So since we don't have the numbers for for.
April specifically can you just give us an idea of how you see things trending compared to last year like.
Especially as you're getting for the comparable from spot to.
Save us.
Second third quarter fourth quarter like how like how like what is the plan basically two to compete with those numbers.
Okay.
The the first quarter and this year that we just finished was up about 40% and that was two months carrying amongst down and it just exploded on us. So this year, we look at more historically aligned numbers and I think.
I think I.
I was advised that I Couldnt tell you that.
Debt.
I'm going to be happy with the quarter.
So that's not a forecast.
You know guys I used to have on his opinion on come at me, but.
We spent $6 million to double our capacity that's what we think.
And.
We put our money in there to be able to handle the business and now where we.
We've got 60000 salespeople out there.
And we've.
Got it really prolific national sales manager Chief sales and marketing officer, who knows how to make those grills jump on run fast and.
So she's been here for about.
10 years and it happened last year and if you think we're not going to be happy with growth again, where you're wrong. So.
As for our forecast.
I think we're going to have a really good year.
Great, Thanks, Dan, which cloud in Oklahoma.
Yeah.
I mean, Ryan here, we may ask bill to knock down here in Oklahoma, I believe it or not but.
That's how we feel about it we've invested $6 million just to double our capacity.
Okay, Okay, and maybe you could just tell us a little bit about the investor relations firm and what the plan is for them what theyre going to do for you guys over the next year I know, we've talked potentially about a new.
Investor website, but.
Anything on that.
Well, yes, I've been here a long time.
The older than some of you people are but I've been here 35 years on the third longest tenured CEO on America behind the.
Warren Buffett Rupert Murdoch.
But gosh.
Gosh.
I always thought the technology.
Would reach every one that we didn't have to go tell a story that you guys find it but.
But when we agree to.
$100 million.
We became a different company and we view differently and then $200 million and so it's not that I don't think because I've got the best story out there on TV I do think because of things like unless you can on stock drop in fuel Paul on me and.
I thought it was time maybe two.
Have a sufficient or a person to guide us a little bit he can get us in front of people at <unk>.
At these regional meetings, that's what we do best I'll tell you on led to get up in front of the in these sessions and talk about our company because I Love This company and what it has been through a lot of people now on your other question about the corporate web site.
Net corporate website is not on line website.
You think it is you are you on a best corporate websites are although 60000 salespeople, who use debt to transact business. Those are income producing activities that corporate website is a front door and I will tell you, it's not a pretty front door and so about three weeks ago. We had this conversation and we do have in plans too.
Upgrade and make that a little more professional on the EBIT today.
We have expanded our resources to making our income producing web sites.
As mobile competitive because I'm going to tell you well, we've got young women out there now that want to put your phone and have it delivered and so.
We're trying to we're trying to be comply with them.
We we have a great story.
And I think Stephen and his group can help us get in front of the right audience to hear it. So that's why we committed debt I'll never done that before.
Okay, great. Thank you.
Okay. Thanks.
And your next question is from Dennis Amato. Please go ahead.
Oh, yes.
Okay to Fox.
Okay.
Iraq and pulp room.
Oh, okay.
You're breaking up.
With losses.
You were losing Dennis for having a hard time hearing you you're breaking up quite a bit.
Okay.
And how do you really.
Okay.
Okay, Oh, I don't know what's wrong with the phone.
That's better better better I have to go outside.
Alright.
One is I think for.
Moving.
Okay.
Golar further flow I think.
We lost you again Dennis.
No no.
No.
Yes.
<unk>.
Okay, well I'll give you a call directly.
Absolutely alright.
Are you from Tulsa.
No no no im Cleveland Okay.
Cleveland must be cloudy in Cleveland to that.
Net Ohio, Oklahoma.
Youre welcome.
Alright, Okay, we'll talk call me Angela if I can take us to the question.
And your next question is from David Atkins Baird. Please go ahead.
Hi can you hear me well.
Yes, great.
Alright, so congratulation on the life financial results.
I have been following your company for total what line has been very from Chris sorry.
The results that you have published for this fiscal year.
On the questions that I had.
Releasing for your first question is for Hawaii.
The stock might have might have gone down despite the good results.
Wondering actually.
How about the industry, you're in like specifically books physical books.
What do you think of.
The future physical book is it some kind of medium that is.
Declining in terms of usage, how long do you envision the future of books on what is.
What is the impact that you think.
It might have on your company.
David Thats a good question.
What about 10 years ago or more a guy told me. He said called me and said you know what you're going to be out of business in 10 years, because all of this book will be out of nowhere. It looks because of you read on the iPad, maybe didn't have ipads and then on electronic devices well I'll tell you 110 years later on we just had a record year because let me.
Tell you something David if you think anybody wants to curl up in bed with a good iPad children I don't think that's happening our books are chewable washable drop them.
And they're good.
Goodbye and let me in this with this the latest surveys or information we have from the industry is that the reading retention from electronic device is 75% from an actual book. So if you want your kids reading on iPad, well theyre going to be 25% behind those guys, who buy our books.
So just a warning to you.
Theres literally please out there so.
Careful about trying to outlaw books, because theyre not we've not see one day ever in the sale of children's books, I think electron devices or more for adults, we get on a plane.
You have a bunch of bookstore debt, but children's book Touchy Feely currently from bid with them a story.
That's a book and it will be for ever but that's my opinion.
<unk> been correct, so far and we think the market we did $200 million, we think we can do.
$1 billion in books in children's books now that in our forecast.
Why people read books because as.
Our whole process are willing to hold the book and then the child.
Turning to page they learned to REIT ride the lift.
It's a learning process that you go through and it doesn't happen anywhere, but a real book and so you're skipping some steps in growing up if you don't have a real book.
Yes.
That's why we feel about here because we sell books.
Alright, so what else I think it makes sense.
That makes sense, that's what I asked as well at book is something that you can hold in there is.
I think there might be part of the learning process of learning to read.
It really.
Related to the fact that you hold on the object and then.
Surely.
Yes makes sense.
And another question is I was wondering is do you think how do you position yourself.
Relation to other players in the industry like scholastic.
He is.
Like bigger distributors, who sell to libraries in school.
Plant two.
Go buy these.
Bigger players.
Well I have no line lastly, very well.
I do know the scholastic very well on and as CEO for many years.
Yes, we have a plan we have a whole school in LIBOR division and by the way if you want to forecast. Let me tell you what we have about $30 million of sales that we didn't get last year because schools weren't open for book fairs or booths like if you go with the Green corn country Festival there'll be a boost of our books with people selling directly to that.
Kevin and on event.
About $30 million will is coming back we are starting to get school library orders again.
These are open up people, who are getting out of their house and so we think there is an upside in that business and yet we've had a plan for school on lobbyist for many many years.
Thank you and I have another question.
Probably the last one for me on.
Was wondering because right now what I think are thinking debt.
The evolution of your company at this price at the price approaching close today.
For me it seems.
Spence is relative.
For the fact that you have had a very nice growth.
On the fact that.
Return on capital of your companies.
Above average I would I would think.
So my question is.
Sure.
Is there a way what does your long term vision.
A long term objective for something.
It can be a financially speaking or.
For quality qualitatively speaking.
So where do where would you like to meet years.
10 years.
That would justify that maybe the multiple would be higher than now.
Yes, okay.
I'll make one other point when you talk about competition.
Competition with other publishers, we have a division.
We have as more on books and we've had on for 35 years and they are the goal absolutely gold standard in children's nonfiction any publisher in the World will tell you that and on the other side of the business Kane Miller, we were able to buy from other publishers mainly for fiction some cash.
Consequently, we buy from the major publishers around the world.
And bring them into our line and published in the United States. So we go to Bologna in for a conference here, where people present products that they want to be sold in United States. We get first crack first Craig we used to get.
Whilst off the bottom of the barrel now they can invest because we'll get awarded for 100000 copies and I'll tell you that gets your attention. So thats, what im telling you about the other publishers, we're not competing with them. They are funding their products into us their best once now because our market is growing so fast so that's about that question and.
And where do I see long term.
I think I'm going to get from my little younger on this line to talk about long term.
You're a little younger than me.
Thanks very much.
You said, we could Andrew to answer with numbers or qualitative.
Wanted to bring up.
Going back to some of the forecast and what we're thinking will happen as far as being prepared to double sales on.
On the direct sales side, especially on one of the nice things about being indirect sales is that our market is just huge we can try to get into not only schools and libraries on I'll say, the homes and families and communities across the nation.
And although we have been around as a direct sales division for over 30 years I would say one of our long term goals is to truly become a household name and that May sound Crazy.
We still have 55 or 60000 sales consultants, we hear story after story when they host a party one of the first questions I ask how many of you have ever heard of <unk> and more or ask for non Kane Miller Bucks and they still have several people in each of the parties that have never heard of us.
And so for me personally in charge of the sales and marketing that from my long term goals is to make as household names so that people come to us first.
They do once they start from the first time, but just getting it out there. So people know who we are and that I think in turn will get us to that doubling of sales and more and more sales consultant and to reiterate debt I'm driving down the road in my neighborhood yesterday and about a block on the half from my House, there is a big sign or.
Yes.
Let me know what it was at our issue grant in there, which is may and I stopped well my wife had already found them and give them their children's books, but they had never heard of us. They leave a block away from me and low they are in Tulsa and they never heard of a swap promise you there is.
Large market that we haven't touched and on one other thing.
When Stephen Hoosier was hired he interviewed me and he says what is your 10 year plan.
The nominal day you.
You look around the stream when we got here there day in and Craig. That's my 10 year plan because it might be on those other darden 10 years, but our plan on being here, but we have an incredible staff here Heather is the best in the direct selling industry Dan comes from a $400 million company with much more.
Financial expertise.
More than me, but.
He brings to the company a lot more expertise and Craig has been here 25 years. He lives in my house.
He has grown up this business and he is now the second largest shareholder and so I have a lot of confidence.
And the loan.
Ooh.
[laughter] Oh, sorry go on.
Yes.
A lot of confidence what about Heather what are you thinking about.
Okay.
She has told US that he has a lot of confidence on the team that that youre hearing today as well as our teams that we work with every single day to you to pull up missing 17, yes. They are awesome.
One of the things that we accomplish this last year on our growth of 81% as Randall was mentioning was.
Operationally, we had some challenges a few years with rapid growth through the Greg do you want to talk about some of the some of the accomplishments of this last year with our operations in it.
Yes, so through the rapid growth obviously, we had to bring on a second shift which was may be the most challenging is getting.
Getting people to.
To work in that environment.
<unk>.
In our country's environment, but.
We never.
Got it.
Sure Vin.
Two days, we shipped everywhere within two days throughout the fall in line with 81% growth. So our operations are there. We're now adding the new capex projects that you'll be able to help us.
Double so operationally we're doing great.
So sorry, I got a little fired up there, but I'll tell you when you're here 35 years.
Your children and when someone sales a share of stock I kind of take it personally I want to know why why would you sales stock in this company today and I went to some of you guys.
Our fund managers.
Investors tell me why today, you would sell the stock share of EDC you might want it.
Hey, this is open for them.
Tell me.
Sure.
Our job is to build sales and earnings and we've done that increased the sales force of 100% and we're moving into the new year with the.
<unk> plans to double our sales so what is it.
Out there that would make similar sale a share of stock and value us and listen the utility.
I don't quite.
Because people ask me I'll say.
Sometimes we get painted with the same brush as other people in the industry that has nothing to do with us.
And I don't know if there is an elephant in the room, because I'll just wait a reported today about debt.
And guys, we operate a 100% honest ethical company on we'll tell you how it works, it's very simple on a $10 book retail book.
Generally pay about $2 from <unk>.
And as we grow that's coming down because of volume.
The <unk>.
Marketing expense is about 50% of the dollar thats in the either where do you sell it to Barnes and noble.
Barnes <unk> noble will pay $5 for Kindle retail thereabouts and on the <unk> side, the direct sales side, the commissions overrides and trips and sees all that comes out to about the same we make about the same amount of money.
From our direct sales as we do sell into a retail store and by the way, we're taking a thousand people to Hawaii in July.
People and what that was all in those numbers that you've already seen a record profit covered all of that is all accounted for so we pay out we paid out $80 million plus in commissions and overruns for our field sales force and you'd be like Oh, My Gosh, Oh, My Gosh, Oh, My gosh what.
We made $180 million next year, because the more they make the more we make is a very simple formula there is nothing deceptive about it.
Don't make any excess demand.
Claims is just a good book at a good price.
And that's what you see in these sales for use in profit figures in.
Those 60000 people they want to make more.
So that's that's what I look at down the road.
Yes.
Right.
It's really no more questions.
I'll start growth $3 in a week and nobody has any angle on any thought or question about debt.
I mean, besides those are two on ones that we already had.
Oh, Thank you Erin so on and think I'm talking on myself.
On box so.
So I just I have a little bit of insight here. So one one of the things obviously I think thats impacting the stock is that it's it is seen as something that benefited by the pandemic and as companies a lot of sectors that are benefited by the pandemic.
Hold on recently and the reopening stores are doing battery on a lot of cases.
So if you guys were able to continue to perform over the next several quarters, obviously, that's going to do a lot for your socket for confidence I think that the investor website is going to make a big difference to one thing.
Is that just in terms of how.
I know that you are restricted in terms of what you can say about your sales consultants and what they may but I don't know if theres any investigation that you are doing maybe with your investor relations firm in terms of figuring out what it is you can say like just for example can you say can you provide the percentage of revenues on produce by.
Cost.
10% of consultants or apply consults consultants that have been with the company for a certain period of time like say for over year on a full months 18 months.
That might help people kind of understand.
The business because right now if you looked at if you look at just the consultants I mean, obviously, there's a lot of turnover and.
And the consultants on a yearly basis I mean, if you look at the 10-K I think debt.
<unk> 90 plus percent.
Hum.
We're actually acquired.
During during 2020.
On the consultants by the end of 2020, 90% of them were acquired during the year I don't have the exact number but it would really help if people from time to understand on the structure and where.
And obviously you're restricted on that but that is something that I think would definitely definitely be helpful.
Yeah.
<unk> would.
It would be helpful as well.
I don't comp line commerce chickens about anything I'm going to tell you what happens here and that is.
We started out with 30000, we ended up with 60000.
And how many people signed up we have some very.
Aggressive and happy sales consultants that may tail for the next door neighbor Wow I'm doing this debt what the FTC doesn't want you to do is say well. This person earned 400000, which we have some people who do and they don't want you to tell you that because what about person on anything well you want to look at this company you want to compare.
My salary and make money by on the building and this should be allowed to make 20000 I'm on Mike a little bit more so if you wanted to averages.
Did the same thing we have people, who sign up and never sell a book.
I'm fine with debt, we've got samples in little termites out there on each one of their house, maybe moulds or whatever because they love to book. Some next thing and maybe a year later in the meantime, it's another customer they never sell anything for six months. They go off the active list and so yes, it's a normal churn like that and it is not.
Thousands of people, we had to start with are gone and we got <unk> <unk>, it's not at all is simple.
And then there was the only thing we're good with debt and.
Again, it's.
It's the business district, sealant business and what you need to look at is how many active sales people you have it doesn't matter how many didn't sale.
This was the FTC once we won't see the people who earn the least well on at least from <unk> zero because they knew so on the book and nobody makes any money from someone sales of book and again you saw the Formula 2500, $25 50, it's been that way for 30 years is the honest ethical business in the region.
And I will tell you. This is not an almond low with Vic selling is because how does a little company in Tulsa, Oklahoma penetrate a market that's dominated the major publishers well.
I saw it.
<unk> selling convention Oh, my gosh, absolutely as people selling the $1 billion and that went on low and so now we've done this and now we're getting very rich products from the major publishers, we buy from Mcmillon, we buy from quarter, we buy from rent.
Brent barrel random house, and we buy from everybody and get their best products and so that's how we built it and.
I think I was gonna have Heather talked about that too a little bit yeah.
One of the things I did want to touch on is a little bit of your your question of not knowing what we can disclose as far as income.
So one of the things that it being in the direct selling industry that we try to do is we are producing an annual what we're calling our income disclosure statement.
While it is not required.
It is something that is requested.
Various different direct selling companies here's the challenge with that everyone report different numbers you don't they're not asking you to report the exact same statistics for the exact same averages and so we kind of get an opportunity to.
At present, our own findings, but even in doing so we are as open and honest with everyone. As we possibly can be with what the potential is for the company I will tell you that our.
Number one earner.
Is definitely in the six figures and our tier.
One 1% to one 5% of our earners.
Our average six figure earners.
But we are a direct selling company and so as Randall said, we have plenty of people that don't ever really so anything that's just the way that the market goes that's just the way that the industry is so depending on if there are specifics that youre looking for we definitely can pull some of those numbers, but we do already to provide some of those to our field and.
So that they can be fully aware and we can be as transparent as possible with what the opportunity looks like one other point on this is you have to look at this company differently.
Look at we don't we don't expect 30000 people on average of $100 million three $3000. We don't expect in the sales six thousands of double our sales what we want them to do is have 30000 more sell 3000, that's the direct selling model and when you do that you thought it up against the wall and some of them.
Sticks for those people, who think man I'm going to do that yeah, well, they never do and that's fine.
We don't lose any money and Theres books out there that's the way this works and the only thing you really need to look at is how many people do we have selling well.
We got about 60000, we had about 30000, a year ago and Thats, how we double our sales can we double that next year.
I don't know there is I think is unlimited number of people, especially with what's happened in the past year. So many people got laid off for work from home and some of them joined us.
Some of them stayed here because we are more stable than where they work so all.
All these things go into a forecast, which where we kind of anxious on sales to see how this all force out but I'll tell you what we help it because heather knows how to.
Two.
Provided synovitis.
Yes.
And I'll also expand a little bit and two in the 10-K, we disclose our 60000 consultants we have different levels of consultant status in the first level as a consultant that signs up and as Randall said.
So much sign up and have a goal of having an extra money for a pizza night, a week and go out for pizza with their family some some might want to.
It just have enough money to put their kids through ballet lessons and things like that but then as youll see in our different levels. Some of them look at it more of a business and want to recruit consultants below them and grow their income possibilities.
And Thats, what you see with your different level of leaderships and our consultants and we have we have several levels of leaderships and those once you moving into the leadership levels you are.
Serious about the business and wanting to make this not just non traditional supplemental income, but trying to make this a primary income source. We have a lot of consultants now that this is the this is their business. This is her life. This is how they feed their families and buy houses and cars.
It's a full time full time activity and have retired their husbands in some cases, but it's most people will not last year or so.
<unk> been doing this for 30 years and people sign up and they never thought to make any money and they wanted to get some good books first thing you know so I'll make a little money go well, that's kind of on too and I go around the regionals in our hubs.
Commensurate with what I come home and just have dinner.
Oh man, Okay. So I'll try to explain to them that we tried to this business is trying to do for the family not to the family and to get the husband's on board and you might be surprised how many are not to steal one six o'clock dinner on the table and don't want to help there was in the business.
There's all kinds of things that go into what to fix out successful a person is by and large you need the family support behind you that because if you're involved in for allows an evening than maybe the husband has to babysit, which we call parenting Navy Sydney motorway and.
So many many things go into this.
I don't I'm not only on the direct selling but there isn't a way for this company.
Have $200 million on sales and has a major publishers in the world contact us.
Look at their very best that they have coming out because they see what kind of sales that we're generating.
You can imagine six years ago six.
$25 million.
Six years ago, you might understand 875000 pre tax for the whole year. So.
We have people contacting us.
Considered we had a we had a publisher this larger than is born flew to Tulsa met with me. He said I'll bring my staff over here just to create looks for you.
That's the kind of on market they see.
In our company so our product line keeps getting better which is another factor that people understand that debt.
They come to us and say Wow look at this.
The story about that as a good then went to millenia and.
Major company contact him come by here first because we think we have a great book and we won't you take first crack at it.
It didn't happen on a few years ago.
Bill is the strength of our line.
And.
It just keeps getting better so.
We think the.
We think it's going to continue and grow.
We.
Or in the direct selling industry most of which are.
Beauty and health products not us that's not what we do and so were gauged by that somewhat that's okay.
I don't care, what they do not on my business on what we do.
I'll go out to regionals and I tell them. If you find one thing about this company is not 100% honest ethical you tell me and I'll fix it because that's not me.
And I'll tell you if theres a thousands of excellent companies will have a 999 on list of contact with the FTC for something because we just don't.
Our books are priced on.
On the back from the publisher and they sell at the same price in the bookstore as they do when we got a sales person out there in the field that can't be more fair value.
You've made it very same price to buy from the <unk>.
Sales consultant as you would look towards you just don't have to go to the bookstore you Pan.
She can tailor an entire library for use with the knowledge. He has more products. So direct selling has been a very nice tool for us we use it we use it honestly and ethically and that's that's how we built this business.
That puts you all sleep.
Alright. So this is angelus have on.
Last call for questions.
And once again, if you'd like to ask a question. Please press star one.
Going going.
Oh, we don't have an option here Dewey.
Guys.
Although this company 35 years.
And I don't want it to be a billion.
I don't want to have a $1 billion of educational books in the hands of families across America and never thought that would happen, but I didn't know we're going to sell 200 million last year, either so I have got.
The goals and Big Dreams here.
Never.
Never doubt how impossible it all might be so were added and we have a very competent.
Staff here to make it happen so.
Oh no questions.
Okay, Hey.
It's a good group I see the guys on the line and I appreciate you listen our story.
This company has is way undervalued guys.
That's your job not mine our job is to produce the results we did now.
Not you presumed you're.
Sure.
Fund.
People are not it's we've done what we can do and I can tell you what we're 100% added to do it again. So thank you guys for listening to our story and look forward to the next call.
Yes.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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On the.
Okay.
Moving forward.
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