----

----

----

----

| x |   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------------------|

|   o |     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|------------------------------------------------------------------------------------------------------------|

| Delaware                                                       |   | 73-0750007                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 10302 East 55th Place, Tulsa, Oklahoma                         |   | 74146-6515                           |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| Large accelerated filer o | Accelerated filer o         |
|--------------------------------|-----------------------------|
| Non-accelerated filer o   | Smaller reporting company x |

----

Table of Contents 

TABLE OF 

|                |                                                                                        | Page     |
|---------------------|---------------------------------------------------------------------------------------------|----------|
| PART I.             | FINANCIAL INFORMATION                                                                  |     |
| Item 1.             | Financial Statements                                                                   | 2   |
| Item 2.        | Management's Discussion and Analysis of Financial Condition and Results of Operations  | 10  |
| Item 3.        | Quantitative and Qualitative Disclosures About Market Risk                             | 17  |
| Item 4.        | Control and Procedures                                                                 | 17  |
|                |                                                                                        |     |
| PART II.  | OTHER INFORMATION                                                                      |     |
| Item 1.        | Legal Proceedings                                                                      | 18  |
| Item 1A.  | Risk Factors                                                                           | 18  |
| Item 2.        | Unregistered Sales of Equity Securities and Use of Proceeds                            | 18  |
| Item 3.        | Defaults Upon Senior Securities                                                        | 19  |
| Item 4.        | Submission of Matters to a Vote of Security Holders                               | 19  |
| Item 5.        | Other Information                                                                      | 19  |
| Item 6.        | Exhibits                                                                               | 19  |
| Signatures          |                                                                                        | 20  |

----

Table of Contents 

| ITEM 1 | FINANCIAL STATEMENTS |
|--------|----------------------|

| ASSETS                                                                                                  |   | November 30, 2010 |        |   | February 28, 2010 |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|
|                                                                                                    |   |              |        |   |              |   |
| CURRENT ASSETS:                                                                                         |   |              |        |   |              |   |
|   Cash and cash equivalents                                                                   |   | $                 | 3,757,100   |   |              | $      | 1,196,900 |   |
|   Accounts receivable, less allowance for doubtful accounts and                               |   |              |        |   |              |   |   |   |
|     sales returns $176,600 (November 30) and  $231,300 (February 28)      |   |              | 3,878,400   |   |              |   | 3,305,500 |   |
|   Inventories—Net                                                                       |   |              | 9,519,000   |   |              |   | 11,285,300 |   |
|   Prepaid expenses and other assets                                                           |   |              | 307,500     |   |              |   | 268,400 |   |
|   Income tax receivable                                                                       |   |              | -           |   |              |   | 8,000 |   |
|   Deferred income taxes                                                                       |   |              | 220,500     |   |              |   | 256,900 |   |
|              Total current assets      |   |              | 17,682,500  |   |              |   | 16,321,000 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| INVENTORIES—Net                                                                                   |   |              | 606,000     |   |              |   | 659,000 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT—Net                                                                 |   |              | 2,069,000   |   |              |   | 2,147,500 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| OTHER ASSETS                                                                                            |   |              | 172,500     |   |              |   | 172,500 |   |
| DEFERRED INCOME TAXES                                                                                   |   |              | 60,900      |   |              |   | 60,400 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| TOTAL ASSETS                                                                                            |   | $                 | 20,590,900  |   |              | $      | 19,360,400 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                              |   |              |        |   |              |   |   |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                    |   |              |        |   |              |   |   |   |
|   Accounts payable                                                                            |   | $                 | 2,800,900   |   |              | $      | 2,259,100 |   |
|   Accrued salaries and commissions                                                            |   |              | 831,600     |   |              |   | 531,600 |   |
|   Current maturities of long-term debt                                                        |   |              | 75,000      |   |              |   | 75,000 |   |
|   Income taxes payable                                                                        |   |              | 297,200     |   |              |   | - |   |
|   Dividends payable                                                                           |   |              | 584,400     |   |              |   | 466,400 |   |
|   Other current liabilities                                                                   |   |              | 873,600     |   |              |   | 531,200 |   |
|              Total current liabilities |   |              | 5,462,700   |   |              |   | 3,863,300 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
|   LONG-TERM NOTES PAYABLE, net of current maturities                                          |   |              | 75,000      |   |              |   | 75,000 |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| COMMITMENTS                                                                                             |   |              |        |   |              |   |   |   |
|                                                                                                    |   |              |        |   |              |   |   |   |
| SHAREHOLDERS’ EQUITY:                                                                             |   |              |        |   |              |   |   |   |
|   Common stock, $0.20 par value; Authorized 8,000,000 shares;                                 |   |              |        |   |              |   |   |   |
|     Issued 6,041,040 (November 30) and 6,039,040 (February 28) shares;              |   |              |        |   |              |   |   |   |
|     Outstanding 3,895,674 (November 30) and 3,887,030 (February 28) shares          |   |              | 1,208,200   |   |              |   | 1,207,800 |   |
|   Capital in excess of par value                                                              |   |              | 8,548,000   |   |              |   | 8,544,000 |   |
|   Retained earnings                                                                           |   |              | 17,030,900  |   |              |   | 17,391,700 |   |
|                                                                                                    |   |              | 26,787,100  |   |              |   | 27,143,500 |   |
|   Less treasury stock, at cost                                                                |   |              | (11,733,900 | )      |              |   | (11,721,400 | ) |
|                                                                                                    |   |              | 15,053,200  |   |              |   | 15,422,100 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                        |   | $                 | 20,590,900  |   |              | $      | 19,360,400 |   |

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Table of Contents 

|                                                                           |   | Three Months Ended November 30, |       |   | Nine Months Ended November 30, |   |
|--------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                           |   | 2010                            |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |
| GROSS SALES                                                                    |   | $                               | 13,227,000 |   |                           | $      | 13,401,900 |   |   | $ | 31,115,200 |   |   | $ | 31,631,000 |   |
|   Less discounts and allowances                                      |   |                            | (4,234,400 | )      |                           |   | (3,932,500 | ) |   |   | (10,595,600 | ) |   |   | (10,331,100 | ) |
|   Transportation revenue                                             |   |                            | 492,000    |   |                           |   | 547,000 |   |   |   | 1,010,800 |   |   |   | 1,113,000 |   |
| NET REVENUES                                                                   |   |                            | 9,484,600  |   |                           |   | 10,016,400 |   |   |   | 21,530,400 |   |   |   | 22,412,900 |   |
| COST OF SALES                                                                  |   |                            | 3,478,600  |   |                           |   | 3,534,800 |   |   |   | 8,163,000 |   |   |   | 8,287,600 |   |
|            Gross margin |   |                            | 6,006,000  |   |                           |   | 6,481,600 |   |   |   | 13,367,400 |   |   |   | 14,125,300 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                                            |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   Operating and selling                                              |   |                            | 2,128,800  |   |                           |   | 2,105,000 |   |   |   | 5,441,700 |   |   |   | 5,267,000 |   |
|   Sales commissions                                                  |   |                            | 2,165,500  |   |                           |   | 2,410,500 |   |   |   | 4,468,700 |   |   |   | 4,860,600 |   |
|   General and administrative                                         |   |                            | 472,000    |   |                           |   | 487,100 |   |   |   | 1,466,600 |   |   |   | 1,520,300 |   |
|   Casualty loss                                                      |   |                            | -          |   |                           |   | - |   |   |   | 188,500 |   |   |   | - |   |
|                                                                           |   |                            | 4,766,300  |   |                           |   | 5,002,600 |   |   |   | 11,565,500 |   |   |   | 11,647,900 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME                                                                   |   |                            | 8,600      |   |                           |   | 4,200 |   |   |   | 49,800 |   |   |   | 31,000 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS BEFORE INCOME TAXES                                                   |   |                            | 1,248,300  |   |                           |   | 1,483,200 |   |   |   | 1,851,700 |   |   |   | 2,508,400 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES                                                                   |   |                            | 471,400    |   |                           |   | 558,100 |   |   |   | 696,400 |   |   |   | 942,500 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET EARNINGS                                                                   |   | $                               | 776,900    |   |                           | $      | 925,100 |   |   | $ | 1,155,300 |   |   | $ | 1,565,900 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS                                                     |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   PER SHARE:                                                         |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                              |   | $                               | 0.20       |   |                           | $      | 0.24 |   |   | $ | 0.30 |   |   | $ | 0.41 |   |
|   Diluted                                                            |   | $                               | 0.20       |   |                           | $      | 0.24 |   |   | $ | 0.30 |   |   | $ | 0.41 |   |
|                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF                                                     |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| COMMON AND EQUIVALENT SHARES                                                   |   |                            |       |   |                           |   |   |   |   |   |   |   |   |
|   OUTSTANDING:                                                       |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                              |   |                            | 3,891,065  |   |                           |   | 3,872,134 |   |   |   | 3,883,420 |   |   |   | 3,861,001 |   |
|   Diluted                                                            |   |                            | 3,893,301  |   |                           |   | 3,873,296 |   |   |   | 3,885,646 |   |   |   | 3,862,104 |   |

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Table of Contents 

|                                        |   | Common Stock                |      |   |   |   |      |       |   |   |      |   |   |           |       |   |   |   |
|---------------------------------------------|--------|-----------------------------|-----------|--------|--------|--------|-----------|------------|--------|--------|-----------|--------|--------|----------------|------------|--------|--------|--------|
|                                        |   | (par value $0.20 per share) |      |   |   |   |      |       |   |   |      |   |   |           |       |   |   |   |
|                                        |   | Number of                   |      |   |   |   |      | Capital in |   |   |      |   |   | Treasury Stock |       |   |   |   |
|                                        |   | Shares                      |      |   |   |   |      | Excess of  |   |   | Retained  |   |   | Number of      |       |   |   |   |   | Shareholders’ |   |
|                                        |   | Issued                      |      |   | Amount |   |      | Par Value  |   |   | Earnings  |   |   | Shares         |       |   | Amount |   |   | Equity |   |
|                                        |   |                        |      |   |   |   |      |       |   |   |      |   |   |           |       |   |   |   |   |   |   |
|                                        |   |                        |      |   |   |   |      |       |   |   |      |   |   |           |       |   |   |   |   |   |   |
| BALANCE—March 1, 2010                 |   |                        | 6,039,040 |   |   | $      | 1,207,800 |       |   | $      | 8,544,000 |   |   | $              | 17,391,700 |   |   |   | 2,152,010 |   |   | $ | (11,721,400 | ) |   | $ | 15,422,100 |   |
|   Purchases of treasury stock     |   |                        | -         |   |   |   | -         |       |   |   | -         |   |   |           | -          |   |   |   | 29,191 |   |   |   | (189,600 | ) |   |   | (189,600 | ) |
|   Sales of treasury stock         |   |                        | -         |   |   |   | -         |       |   |   | -         |   |   |           | -          |   |   |   | (35,835 | ) |   |   | 177,100 |   |   |   | 177,100 |   |
|   Exercise of options at $2.1875  |   |                        | 2,000     |   |   |   | 400       |       |   |   | 4,000     |   |   |           | -          |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
|   Dividends declared ($.39/share) |   |                        | -         |   |   |   | -         |       |   |   | -         |   |   |           | (1,516,100 | )      |   |   | - |   |   |   | - |   |   |   | (1,516,100 | ) |
|   Net earnings                    |   |                        | -         |   |   |   | -         |       |   |   | -         |   |   |           | 1,155,300  |   |   |   | - |   |   |   | - |   |   |   | 1,155,300 |   |
| BALANCE—November 30, 2010             |   |                        | 6,041,040 |   |   | $      | 1,208,200 |       |   | $      | 8,548,000 |   |   | $              | 17,030,900 |   |   |   | 2,145,366 |   |   | $ | (11,733,900 | ) |   | $ | 15,053,200 |   |

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Table of Contents 

|                                                                                                                |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                |   |   |       |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |   | $      | 3,982,100  |   |   | $      | 258,100 |   |
|                                                                                                                |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |   |   |       |   |   |   |   |   |
|   Purchases of property and equipment                                                                     |   |   | (15,700    | )      |   |   | (2,500 | ) |
|                                                                                                                |   |   |       |   |   |   |   |   |
|              Net cash used in investing activities |   |   | (15,700    | )      |   |   | (2,500 | ) |
|                                                                                                                |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |   |       |   |   |   |   |   |
|   Cash paid to acquire treasury stock                                                                     |   |   | (189,600   | )      |   |   | (4,400 | ) |
|   Cash received from sales of treasury stock                                                              |   |   | 177,100    |   |   |   | 146,000 |   |
|   Borrowings under revolving credit agreement                                                             |   |   | -          |   |   |   | 2,200,000 |   |
|   Payments under revolving credit agreement                                                               |   |   | -          |   |   |   | (2,200,000 | ) |
|   Dividends paid                                                                                          |   |   | (1,398,100 | )      |   |   | (1,536,600 | ) |
|   Stock options exercised                                                                                 |   |   | 4,400      |   |   |   | - |   |
|                                                                                                                |   |   |       |   |   |   |   |   |
|              Net cash used in financing activities |   |   | (1,406,200 | )      |   |   | (1,395,000 | ) |
|                                                                                                                |   |   |       |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                |   |   | 2,560,200  |   |   |   | (1,139,400 | ) |
|                                                                                                                |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—BEGINNING OF PERIOD                                                                 |   |   | 1,196,900  |   |   |   | 2,896,200 |   |
|                                                                                                                |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—END OF PERIOD                                                                       |   | $      | 3,757,100  |   |   | $      | 1,756,800 |   |
|                                                                                                                |   |   |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH  FLOW                                                                     |   |   |       |   |   |   |   |   |
|   INFORMATION:                                                                                            |   |   |       |   |   |   |   |   |
|   Cash paid for interest                                                                                  |   | $      | -          |   |   | $      | 7,300 |   |
|   Cash paid for income taxes                                                                              |   | $      | 330,300    |   |   | $      | 462,500 |   |

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Table of Contents 

|                                      |   | 2010         |      |
|-------------------------------------------|--------|--------------|-----------|
|                                      |   | November 30, |      |   | February 28, |   |
| Current:                                  |   |         |      |   |   |   |
|   Book inventory                |   | $            | 9,548,500 |   |   | $ | 11,310,300 |   |
|   Inventory valuation allowance |   |         | (29,500   | ) |   |   | (25,000 | ) |
|                                      |   |         |      |   |   |   |   |   |
| Inventories net–current             |   | $            | 9,519,000 |   |   | $ | 11,285,300 |   |
|                                      |   |         |      |   |   |   |   |   |
| Noncurrent:                               |   |         |      |   |   |   |   |   |
|   Book inventory                |   | $            | 926,000   |   |   | $ | 989,000 |   |
|   Inventory valuation allowance |   |         | (320,000  | ) |   |   | (330,000 | ) |
|                                      |   |         |      |   |   |   |   |   |
| Inventories net–noncurrent          |   | $            | 606,000   |   |   | $ | 659,000 |   |

----

Table of Contents 

| Earnings Per Share:                                        |   |                            |      |   |                           |   |      |   |   |   |      |   |
|------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
|                                                       |   | Three Months Ended November 30, |      |   | Nine Months Ended November 30, |   |
|                                                       |   | 2010                            |      |   | 2009                           |   |      | 2010   |   |   | 2009      |   |
|                                                       |   |                            |      |   |                           |   |      |   |   |   |      |   |
|   Net earnings applicable to common shareholders |   | $                               | 776,900   |   |                           | $      | 925,100   |   |   | $      | 1,155,300 |   |   | $ | 1,565,900 |   |
|                                                       |   |                            |      |   |                           |   |      |   |   |   |      |   |   |   |   |   |
| Shares:                                                    |   |                            |      |   |                           |   |      |   |   |   |      |   |   |   |   |   |
|                                                       |   |                            |      |   |                           |   |      |   |   |   |      |   |   |   |   |   |
|   Weighted average shares outstanding - basic    |   |                            | 3,891,065 |   |                           |   | 3,872,134 |   |   |   | 3,883,420 |   |   |   | 3,861,001 |   |
|   Assumed exercise of options                    |   |                            | 2,236     |   |                           |   | 1,162     |   |   |   | 2,226     |   |   |   | 1,103 |   |
|                                                       |   |                            |      |   |                           |   |      |   |   |   |      |   |   |   |   |   |
|   Weighted average shares outstanding - diluted  |   |                            | 3,893,301 |   |                           |   | 3,873,296 |   |   |   | 3,885,646 |   |   |   | 3,862,104 |   |
|                                                       |   |                            |      |   |                           |   |      |   |   |   |      |   |   |   |   |   |
| Basic Earnings Per Share                                   |   | $                               | 0.20      |   |                           | $      | 0.24      |   |   | $      | 0.30      |   |   | $ | 0.41 |   |
| Diluted Earnings Per Share                                 |   | $                               | 0.20      |   |                           | $      | 0.24      |   |   | $      | 0.30      |   |   | $ | 0.41 |   |

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Table of Contents 

----

Table of Contents 

| NET REVENUES                        |
|-------------------------------------|
|                                |   | Three Months Ended November 30, |   | Nine Months Ended November 30, |   |
|                                |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Publishing                          |   | $ | 2,822,700 |   |   | $ | 2,756,800 |   |   | $ | 7,631,600 |   |   | $ | 7,380,700 |   |
| UBAM                                |   |   | 6,661,900 |   |   |   | 7,259,600 |   |   |   | 13,898,800 |   |   |   | 15,032,200 |   |
| Other                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                               |   | $ | 9,484,600 |   |   | $ | 10,016,400 |   |   | $ | 21,530,400 |   |   | $ | 22,412,900 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS (LOSS) BEFORE INCOME TAXES |
|                                |   | Three Months Ended November 30, |   | Nine Months Ended November 30, |   |
|                                |   |   | 2010 |   |   |   | 2009 |   |   |   | 2010 |   |   |   | 2009 |   |
| Publishing                          |   | $ | 1,045,300 |   |   | $ | 1,048,900 |   |   | $ | 2,492,400 |   |   | $ | 2,584,400 |   |
| UBAM                                |   |   | 1,257,000 |   |   |   | 1,496,800 |   |   |   | 2,597,900 |   |   |   | 3,027,300 |   |
| Other                               |   |   | (1,054,000 | ) |   |   | (1,062,500 | ) |   |   | (3,238,600 | ) |   |   | (3,103,300 | ) |
| Total                               |   | $ | 1,248,300 |   |   | $ | 1,483,200 |   |   | $ | 1,851,700 |   |   | $ | 2,508,400 |   |

----

Table of Contents 

| ITEM 2 | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|---------------------------------------------------------------------------------------|

| Earnings as a Percent of Net Revenues    |
|------------------------------------------|
|                                     |   | Three Months Ended November 30, |   |   | Nine Months Ended November 30, |   |
|                                     |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Net revenues                             |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                            |   |   | 36.7 | % |   |   | 35.3 | % |   |   | 37.9 | % |   |   | 37.0 | % |
|   Gross margin                 |   |   | 63.3 | % |   |   | 64.7 | % |   |   | 62.1 | % |   |   | 63.0 | % |
| Operating expenses:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating & selling      |   |   | 22.4 | % |   |   | 21.0 | % |   |   | 25.3 | % |   |   | 23.5 | % |
|   Sales commissions            |   |   | 22.8 | % |   |   | 24.1 | % |   |   | 20.7 | % |   |   | 21.7 | % |
|   General & administrative |   |   | 5.0 | % |   |   | 4.9 | % |   |   | 6.8 | % |   |   | 6.8 | % |
|   Casualty loss                |   |   | 0.0 | % |   |   | 0.0 | % |   |   | 0.9 | % |   |   | 0.0 | % |
|   Total operating expenses     |   |   | 50.2 | % |   |   | 50.0 | % |   |   | 53.7 | % |   |   | 52.0 | % |
| Income from operations                   |   |   | 13.1 | % |   |   | 14.7 | % |   |   | 8.4 | % |   |   | 11.0 | % |
| Other income                             |   |   | 0.1 | % |   |   | 0.0 | % |   |   | 0.2 | % |   |   | 0.2 | % |
| Earnings before income taxes             |   |   | 13.2 | % |   |   | 14.7 | % |   |   | 8.6 | % |   |   | 11.2 | % |
| Income taxes                             |   |   | 5.0 | % |   |   | 5.5 | % |   |   | 3.2 | % |   |   | 4.2 | % |
| Net earnings                             |   |   | 8.2 | % |   |   | 9.2 | % |   |   | 5.4 | % |   |   | 7.0 | % |

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|                            |   | For the Three Months Ended November 30, |       |   | $ Increase/ |   |       | % Increase/ |   |
|---------------------------------|--------|-----------------------------------------|------------|--------|-------------|--------|------------|-------------|--------|
|                            |   | 2010                                    |       |   | 2009        |   |       | (decrease)  |   |   | (decrease) |   |
| Gross sales                     |   | $                                       | 13,227,000 |   |        | $      | 13,401,900 |        |   | $ | (174,900 | ) |   |   | (1.3 | ) |
| Less discounts & allowances |   |                                    | (4,234,400 | )      |        |   | (3,932,500 | )           |   |   | (301,900 | ) |   |   | 7.7 |   |
| Transportation revenue          |   |                                    | 492,000    |   |        |   | 547,000    |        |   |   | (55,000 | ) |   |   | (10.1 | ) |
| Net revenues                    |   | $                                       | 9,484,600  |   |        | $      | 10,016,400 |        |   | $ | (531,800 | ) |   |   | (5.3 | ) |

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|                         |   | For Three Months Ended November 30, |      |   | $ Increase/ |   |      | % Increase/ |   |
|------------------------------|--------|-------------------------------------|-----------|--------|-------------|--------|-----------|-------------|--------|
|                         |   | 2010                                |      |   | 2009        |   |      | (decrease)  |   |   | (decrease) |   |
| Cost of sales                |   | $                                   | 3,478,600 |   |        | $      | 3,534,800 |        |   | $ | (56,200 | ) |   |   | (1.6 | ) |
| Operating & selling      |   |                                | 2,128,800 |   |        |   | 2,105,000 |        |   |   | 23,800 |   |   |   | 1.1 |   |
| Sales commissions            |   |                                | 2,165,500 |   |        |   | 2,410,500 |        |   |   | (245,000 | ) |   |   | (10.2 | ) |
| General & administrative |   |                                | 472,000   |   |        |   | 487,100   |        |   |   | (15,100 | ) |   |   | (3.1 | ) |
| Total                        |   | $                                   | 8,244,900 |   |        | $      | 8,537,400 |        |   | $ | (292,500 | ) |   |   | (3.4 | ) |

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|                            |   | For the Nine Months Ended November 30, |        |   | $ Increase/ |   |        | % Increase/ |   |
|---------------------------------|--------|----------------------------------------|-------------|--------|-------------|--------|-------------|-------------|--------|
|                            |   | 2010                                   |        |   | 2009        |   |        | (decrease)  |   |   | (decrease) |   |
| Gross sales                     |   | $                                      | 31,115,200  |   |        | $      | 31,631,000  |        |   | $ | (515,800 | ) |   |   | (1.6 | ) |
| Less discounts & allowances |   |                                   | (10,595,600 | )      |        |   | (10,331,100 | )           |   |   | (264,500 | ) |   |   | 2.6 |   |
| Transportation revenue          |   |                                   | 1,010,800   |   |        |   | 1,113,000   |        |   |   | (102,200 | ) |   |   | (9.2 | ) |
| Net revenues                    |   | $                                      | 21,530,400  |   |        | $      | 22,412,900  |        |   | $ | (882,500 | ) |   |   | (3.9 | ) |

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|                         |   | For Nine Months Ended November 30, |       |   | $ Increase/ |   |       | % Increase/ |   |
|------------------------------|--------|------------------------------------|------------|--------|-------------|--------|------------|-------------|--------|
|                         |   | 2010                               |       |   | 2009        |   |       | (decrease)  |   |   | (decrease) |   |
| Cost of sales                |   | $                                  | 8,163,000  |   |        |   | 8,287,600  |        |   | $ | (124,600 | ) |   |   | (1.5 | ) |
| Operating & selling      |   |                               | 5,441,700  |   |        |   | 5,267,000  |        |   |   | 174,700 |   |   |   | 3.3 |   |
| Sales commissions            |   |                               | 4,468,700  |   |        |   | 4,860,600  |        |   |   | (391,900 | ) |   |   | (8.1 | ) |
| General & administrative |   |                               | 1,466,600  |   |        |   | 1,520,300  |        |   |   | (53,700 | ) |   |   | (3.5 | ) |
| Casualty loss                |   |                               | 188,500    |   |        |   | -          |        |   |   | 188,500 |   |   |   | 100.0 |   |
| Total                        |   | $                                  | 19,728,500 |   |        | $      | 19,935,500 |        |   | $ | (207,000 | ) |   |   | (1.0 | ) |

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| ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------|------------------------------------------------------------|

| ITEM 4 | CONTROLS AND PROCEDURES |
|--------|-------------------------|

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| Item 1 | LEGAL PROCEEDINGS |
|--------|-------------------|

| Item 1A | RISK FACTORS |
|---------|--------------|

| Item 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|--------|-------------------------------------------------------------|

| Period                 |   | Total # of SharesPurchased |   |   | Average PricePaid per Share |   |   | Total # of SharesPurchased asPart of Publicly Announced Plan (1) |   |   | Maximum # of Shares that Maybe Repurchased under the Plan (2) (3) |   |
|------------------------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|                   |   |                       |   |   |                        |   |   |                                                             |   |   |                                                              |   |   |
| September 1 - 30, 2010 |   |                       | 203    |   |                        | $      | 6.12   |                                                             |   |   | 203                                                               |   |   |   | 397,310 |   |
| October 1 - 31, 2010   |   |                       | 268    |   |                        | $      | 6.10   |                                                             |   |   | 268                                                               |   |   |   | 397,042 |   |
| November 1 - 30, 2010  |   |                       | -      |   |                        | $      | 0.00   |                                                             |   |   | -                                                                 |   |   |   | 397,042 |   |
| Total                  |   |                       | 471    |   |                        | $      | 6.11   |                                                             |   |   | 471                                                               |   |   |   |   |   |

| (1)   | All of the shares of common stock set forth in this column were purchased pursuant to a publicly announced plan as described in footnote 2 below. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In April 2008 the Board of Directors authorized us to purchase up to an additional 500,000 shares of our common stock under a repurchase plan.  Pursuant to the plan, we may purchase a total of 397,042 additional shares of our common stock until 3,000,000 shares have been repurchased. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | There is no expiration date for the repurchase plan. |
|-----------------|------------------------------------------------------|

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| Item 3 | DEFAULTS UPON SENIOR SECURITIES |
|--------|---------------------------------|

| Item 4 | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|--------|-----------------------------------------------------|

| Item 5 | OTHER INFORMATION |
|--------|-------------------|

| Item 6 | EXHIBITS |
|--------|----------|

| 31.1 | Certification of the Chief Executive Officer of Educational Development Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 furnished herewith. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Controller and Corporate Secretary (Principal Financial and Accounting Officer) of Educational Development Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 furnished herewith. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------|------------------------------------------------------------------------------------------------------------------------|

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SIGN

|                              | EDUCATIONAL DEVELOPMENT CORPORATION |                                                                                                                                                                             |
|-----------------------------------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              | (Registrant)                        |                                                                                                                                                                             |
|                              |                                |                                                                                                                                                                             |   |
| Date:  January 14, 2011 | By:                                 | /s/ Randall W. White                           |   |
|                              |                                | Randall W. White                                                                                                                                                                 |   |
|                              |                                | President                                                                                                                                                                        |   |

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| 31.1 | Certification of the Chief Executive Officer of Educational Development Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 furnished herewith. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Controller and Corporate Secretary (Principal Financial and Accounting Officer) of Educational Development Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 furnished herewith. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------|------------------------------------------------------------------------------------------------------------------------|

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