Latest news with #FranklinCovey
Yahoo
03-07-2025
- Business
- Yahoo
Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $67.1 million for the third quarter, down 9% from the prior year. Adjusted EBITDA: $7.3 million, exceeding the top end of the guidance range of $4 million to $6.5 million. Gross Margin: Approximately flat year over year at 76.5% of revenue. Operating Expenses: $53.5 million, increased by $5.7 million compared to the prior year. Restructuring Charges: $4 million increase in restructuring charges. SG&A Expenses: Increased by $1.6 million due to go-to-market acceleration initiative. Cash Flow from Operating Activities: $19 million year-to-date, down from $38.4 million last year. Free Cash Flow: $10.6 million year-to-date, compared to $30.6 million last year. Enterprise Division Revenue: $47.3 million, down from $51.9 million in the prior year. Education Division Revenue: $18.6 million, down 8% from the prior year. Education Subscription Revenue: Increased 13% in the third quarter to $11.8 million. Deferred Subscription Revenue: Increased 7% to $89.3 million. Share Repurchase: Approximately 372,000 shares purchased in the third quarter at a cost of $8.3 million. Fiscal 2025 Revenue Guidance: Revised to $265 million to $275 million. Fiscal 2025 Adjusted EBITDA Guidance: Widened to $28 million to $33 million. Release Date: July 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Covey Co (NYSE:FC) reported third-quarter revenue of $67.1 million, in line with expectations, and adjusted EBITDA of $7.3 million, exceeding the top end of the expected range. The company successfully implemented cost reductions, which are expected to result in meaningful year-over-year increases in adjusted EBITDA next year. Franklin Covey Co (NYSE:FC) achieved strong traction in its go-to-market transformation in the Enterprise North America business, with an increase in new client wins and revenue per win. The Education business continues to be strong, with subscription revenue growing 13% and deferred revenue increasing 21% in the third quarter. The company reported a high attachment rate of strategically important subscription services, with a 60% attach rate in the Enterprise division. Revenue was down 9% from the prior year quarter, primarily due to the impact of government actions and macroeconomic uncertainty. Operating expenses increased by $5.7 million compared to the prior year, driven by restructuring charges and increased SG&A expenses. The company revised its fiscal 2025 revenue guidance to a range of $265 million to $275 million, reflecting continued uncertainty impacting client decision-making. Subscription revenue invoiced was down 8% year-over-year, attributed to government contract cancellations and economic uncertainty. The company experienced some client downsizing in subscription sizes, impacting overall subscription growth. Q: Can you provide more details on the improvements in the Enterprise division despite challenges related to government actions and uncertainty? A: Paul Walker, CEO, highlighted that new logos are up and expansion within existing clients is ongoing. The sales force transition is showing positive results, with increased pipeline growth and a high services attach rate. The company is also seeing more services attached to new logo wins, indicating strong traction in their sales model. Q: How is the Education division performing amid uncertainties like the Department of Education funding and ESSER funds sunsetting? A: Paul Walker, CEO, expressed confidence in the Education division, expecting to match or exceed the 728 new schools added in fiscal 2024. Despite uncertainties, the division is growing due to the strong demand for the Leader in Me program and successful navigation of the current environment. Q: What factors contributed to the recent revision in revenue guidance? A: Paul Walker, CEO, explained that the revision is primarily due to the timing of service deliveries and decision-making delays in both the Education and Enterprise divisions. While the direct impact from government contracts has stabilized, the uncertainty in the macroeconomic environment continues to affect client decision timelines. Q: How is Franklin Covey leveraging AI in its service delivery? A: Paul Walker, CEO, mentioned the use of an AI sales coach as part of their sales performance solution, which provides real-time coaching tailored to clients' unique circumstances. AI is also being used for content customization and personalization, enhancing the value and efficiency of their offerings. Q: Can you elaborate on the cost reduction actions taken and their impact on EBITDA guidance? A: Jessica Betjemann, CFO, stated that the company implemented cost reductions resulting in $3 million savings in Q3 and an expected $4 million in Q4. These actions have allowed Franklin Covey to maintain its EBITDA guidance range despite the revenue decline, with an annualized savings of $8 million anticipated for fiscal 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $67.1 million for the third quarter, down 9% from the prior year. Adjusted EBITDA: $7.3 million, exceeding the top end of the guidance range of $4 million to $6.5 million. Gross Margin: Approximately flat year over year at 76.5% of revenue. Operating Expenses: $53.5 million, increased by $5.7 million compared to the prior year. Restructuring Charges: $4 million increase in restructuring charges. SG&A Expenses: Increased by $1.6 million due to go-to-market acceleration initiative. Cash Flow from Operating Activities: $19 million year-to-date, down from $38.4 million last year. Free Cash Flow: $10.6 million year-to-date, compared to $30.6 million last year. Enterprise Division Revenue: $47.3 million, down from $51.9 million in the prior year. Education Division Revenue: $18.6 million, down 8% from the prior year. Education Subscription Revenue: Increased 13% in the third quarter to $11.8 million. Deferred Subscription Revenue: Increased 7% to $89.3 million. Share Repurchase: Approximately 372,000 shares purchased in the third quarter at a cost of $8.3 million. Fiscal 2025 Revenue Guidance: Revised to $265 million to $275 million. Fiscal 2025 Adjusted EBITDA Guidance: Widened to $28 million to $33 million. Release Date: July 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Covey Co (NYSE:FC) reported third-quarter revenue of $67.1 million, in line with expectations, and adjusted EBITDA of $7.3 million, exceeding the top end of the expected range. The company successfully implemented cost reductions, which are expected to result in meaningful year-over-year increases in adjusted EBITDA next year. Franklin Covey Co (NYSE:FC) achieved strong traction in its go-to-market transformation in the Enterprise North America business, with an increase in new client wins and revenue per win. The Education business continues to be strong, with subscription revenue growing 13% and deferred revenue increasing 21% in the third quarter. The company reported a high attachment rate of strategically important subscription services, with a 60% attach rate in the Enterprise division. Revenue was down 9% from the prior year quarter, primarily due to the impact of government actions and macroeconomic uncertainty. Operating expenses increased by $5.7 million compared to the prior year, driven by restructuring charges and increased SG&A expenses. The company revised its fiscal 2025 revenue guidance to a range of $265 million to $275 million, reflecting continued uncertainty impacting client decision-making. Subscription revenue invoiced was down 8% year-over-year, attributed to government contract cancellations and economic uncertainty. The company experienced some client downsizing in subscription sizes, impacting overall subscription growth. Q: Can you provide more details on the improvements in the Enterprise division despite challenges related to government actions and uncertainty? A: Paul Walker, CEO, highlighted that new logos are up and expansion within existing clients is ongoing. The sales force transition is showing positive results, with increased pipeline growth and a high services attach rate. The company is also seeing more services attached to new logo wins, indicating strong traction in their sales model. Q: How is the Education division performing amid uncertainties like the Department of Education funding and ESSER funds sunsetting? A: Paul Walker, CEO, expressed confidence in the Education division, expecting to match or exceed the 728 new schools added in fiscal 2024. Despite uncertainties, the division is growing due to the strong demand for the Leader in Me program and successful navigation of the current environment. Q: What factors contributed to the recent revision in revenue guidance? A: Paul Walker, CEO, explained that the revision is primarily due to the timing of service deliveries and decision-making delays in both the Education and Enterprise divisions. While the direct impact from government contracts has stabilized, the uncertainty in the macroeconomic environment continues to affect client decision timelines. Q: How is Franklin Covey leveraging AI in its service delivery? A: Paul Walker, CEO, mentioned the use of an AI sales coach as part of their sales performance solution, which provides real-time coaching tailored to clients' unique circumstances. AI is also being used for content customization and personalization, enhancing the value and efficiency of their offerings. Q: Can you elaborate on the cost reduction actions taken and their impact on EBITDA guidance? A: Jessica Betjemann, CFO, stated that the company implemented cost reductions resulting in $3 million savings in Q3 and an expected $4 million in Q4. These actions have allowed Franklin Covey to maintain its EBITDA guidance range despite the revenue decline, with an annualized savings of $8 million anticipated for fiscal 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Franklin Covey (FC) Q3 Earnings Beat Estimates
Franklin Covey (FC) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +325.00%. A quarter ago, it was expected that this corporate training and consultanting company would post a loss of $0.11 per share when it actually produced a loss of $0.08, delivering a surprise of +27.27%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Franklin Covey, which belongs to the Zacks Consulting Services industry, posted revenues of $67.12 million for the quarter ended May 2025, missing the Zacks Consensus Estimate by 0.34%. This compares to year-ago revenues of $73.37 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Franklin Covey shares have lost about 35.8% since the beginning of the year versus the S&P 500's gain of 5.4%. While Franklin Covey has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Franklin Covey was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.55 on $79.88 million in revenues for the coming quarter and $0.48 on $275.93 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Exponent (EXPO), is yet to report results for the quarter ended June 2025. This engineering and scientific consulting company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of -15.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Exponent's revenues are expected to be $129.78 million, down 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Covey Company (FC) : Free Stock Analysis Report Exponent, Inc. (EXPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
02-07-2025
- Business
- Yahoo
Franklin Covey Reports Third Quarter Fiscal 2025 Financial Results
Consolidated Revenue for the Third Quarter of $67.1 Million within Guidance Range Adjusted EBITDA of $7.3 Million Exceeds Guidance; After $4.7 Million of Restructuring Costs Net Loss Totals $1.4 Million Deferred Subscription Revenue of $89.3 Million, up 7% Year-over-Year Liquidity Remains Strong at over $95 Million, with $33.7 Million of Cash and No Drawdowns on the Company's $62.5 Million Credit Facility, even after $8.3 Million of Common Stock Re-purchases in the Third Quarter Company Updates Guidance for Fiscal 2025 SALT LAKE CITY, July 02, 2025--(BUSINESS WIRE)--Franklin Covey Co. (NYSE: FC), a leader in organizational performance improvement that creates and distributes world-class content, training, processes, and tools that organizations and individuals use to achieve systemic changes in human behavior to transform their results, today announced its financial results for the third fiscal 2025 quarter, ended May 31, 2025. Third Quarter Fiscal 2025 Financial Results The Company's consolidated revenue for Q3 FY2025 was $67.1 million compared with $73.4 million in Q3 FY2024. The Company's financial results for Q3 FY2025 include the following: Enterprise Division revenue for Q3 FY2025 totaled $47.3 million compared with $51.9 million in the prior year. Enterprise Division revenue performance was impacted by a $3.5 million decrease in North America segment revenue and a $1.0 million decrease in International Direct Office revenue. These segments were affected by ongoing macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal government contracts. Education Division revenue in Q3 FY2025 was $18.6 million compared with $20.2 million in the prior year. The decrease was primarily due to less materials revenue during the quarter compared to Q3 FY2024, a quarter last year that included a new state-wide initiative which had a significant amount of training materials in the initial phases of the program. Decreased materials revenue was partially offset by increased training and coaching revenue and membership subscription revenue. Consolidated subscription and subscription services revenue for Q3 FY2025 was $57.7 million compared with $60.8 million in Q3 FY2024. Subscription revenue invoiced for Q3 FY2025 totaled $31.7 million compared with $34.5 million in Q3 FY2024. The Company realized a net loss for Q3 FY2025 of $(1.4) million, or $(0.11) per share, compared with net income of $5.7 million, or $0.43 per diluted share, in Q3 FY2024. The net loss included $4.7 million in restructuring charges as the Company optimized its go-to-market transformation investments in the Enterprise Division and reduced costs in other areas of its operations, and a $1.6 million year-over-year increase in selling, general, and administrative expenses from the implementation of the Company's go-to-market strategy that commenced in December 2024. Adjusted EBITDA for Q3 FY2025 exceeded Company guidance and was $7.3 million compared with $13.9 million in the prior year. Consolidated deferred subscription revenue at May 31, 2025, increased 7% to $89.3 million compared with $83.8 million at May 31, 2024. At May 31, 2025, 58% of the Company's AAP contracts in North America are for at least two years, compared with 55% at May 31, 2024, and the percentage of contracted amounts represented by multi-year contracts was 62% compared with 60% on May 31, 2024. Unbilled deferred subscription revenue totaled $62.0 million at May 31, 2025, compared with $69.4 million at May 31, 2024. Cash provided by operating activities for the three quarters ended May 31, 2025 was $19.0 million compared with $38.4 million in the prior year. Free cash flow for the first three quarters of fiscal 2025 was $10.6 million compared with $30.6 million in the prior year. Cash and cash equivalents totaled $33.7 million compared to $40.4 million as of February 28, 2025. The Company purchased approximately 372,000 shares of its common stock on the open market for $8.3 million during Q3 FY2025. For full fiscal 2025, the Company has purchased approximately 769,000 shares of its common stock for a total of $23.0 million. Paul Walker, President and Chief Executive Officer commented, "We are pleased that our third quarter revenue was in line with our expectation and that Adjusted EBITDA exceeded the high end of our range. We are now 180 days into the sales transformation of our Enterprise North America business, and despite an environment where uncertainty is prompting organizations to scrutinize costs, we continue to be confident in the actions we are undertaking to accelerate future growth. In the third quarter we landed more new clients than we did a year ago. We also achieved robust expansion across a significant portion of our client base. Our client retention remained strong and consistent with previous quarters and historical trends. Our clients continue to find value and impact from our subscription services and our Enterprise Division attachment rate remained high at 60%. Additionally, the percentage of our subscription revenue that is for multi-year periods increased to 62% in the third quarter. Our Education business also continues to be strong and we expect to achieve top and bottom-line growth for the full-year. As a result, we expect to accelerate future revenue growth and in turn achieve significant growth in Adjusted EBITDA and Free Cash Flow in fiscal 2026 and beyond." Jessi Betjemann, Chief Financial Officer said, "I am thrilled to be part of a company that is a trusted partner to leaders of enterprises and schools around the world to deliver improved organizational performance and breakthrough results through collective action. I look forward to partnering with Paul and the leadership team to help drive the growth trajectory for FranklinCovey during this transitory period as we make progress on our strategic initiatives and manage through the current macroeconomic headwinds. Through these efforts and with the strength of our underlying high margin recurring revenue and high cashflow conversion business model, we are committed to creating long-term value for our shareholders and customers." Fiscal 2025 Guidance The effect of government actions and their impact on our direct Government business and our International business has been consistent with what the Company described last quarter. In the middle of an uncertain environment, we have continued to win and expect to win many large deals in our Enterprise and Education businesses. However, due to the continued uncertainty impacting our clients' decision-making and the timing risk for delivery of services, where delivery of the services could slip into the first quarter of the next fiscal year, we are making a revision to our guidance. The Company updates guidance to the following, in constant currency: Total revenue in the range of $265 million to $275 million. Adjusted EBITDA in the range of $28 million to $33 million, based on the revised revenue guidance this year and cost reductions that will beneficially impact Q4 FY2025. The Company will share updated guidance for FY2026 when it reports at year-end in November, but due in part to the recent cost reduction actions, the Company expects to generate a meaningful increase in Adjusted EBITDA and free cash flow in FY2026. Earnings Conference Call On Wednesday, July 2, 2025, at 5:00 p.m. Eastern (3:00 p.m. Mountain) Franklin Covey will host a conference call to review its third quarter fiscal 2025 financial results. Interested persons may access a live audio webcast at or may participate via telephone by registering at Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the "Call Me" option to receive an automated call directly to their phone. For either option, registration will be required to access the call. A replay of the conference call webcast will be archived on the Company's website for at least 30 days. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including those statements related to the Company's future results and profitability and other goals relating to the growth and operations of the Company. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties including, but not limited to: general macroeconomic conditions; renewals of subscription contracts; the impact of strategic projects and initiatives on future financial results; growth in and client demand for add-on services; market acceptance of new products or services, including new AAP portal upgrades and content launches; impacts from geopolitical trade tensions and the general business environment; and other factors identified and discussed in the Company's most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Many of these conditions are beyond the Company's control or influence, any one of which may cause future results to differ materially from the Company's current expectations, and there can be no assurance that the Company's actual future performance will meet management's expectations. These forward-looking statements are based on management's current expectations and the Company undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances subsequent to this press release. Non-GAAP Financial Information This earnings release includes the concepts of Adjusted EBITDA, Free Cash Flow, and "constant currency" which are non-GAAP measures. The Company defines Adjusted EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other infrequently occurring items such as restructuring and headquarters moving costs. Free Cash Flow is defined as GAAP calculated cash flows from operating activities less capitalized expenditures for purchases of property and equipment, curriculum development, and content or license rights. Constant currency is a non-GAAP financial measure that removes the impact of fluctuations in foreign currency exchange rates and is calculated by translating the current period's financial results at the same average exchange rates in effect during the prior year and then comparing this amount to the prior year. The Company references these non-GAAP financial measures in its decision-making because they provide supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and the Company believes they provide investors with greater transparency to evaluate operational activities and financial results. Refer to the attached tables for the reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to consolidated net income, a related GAAP financial measure, and for the calculation of Free Cash Flow. The Company is unable to provide a reconciliation of the above forward-looking estimate of non-GAAP Adjusted EBITDA to GAAP measures because certain information needed to make a reasonable forward-looking estimate is difficult to obtain and dependent on future events which may be uncertain, or out of the Company's control, including the amount of AAP contracts invoiced, the number of AAP contracts that are renewed, necessary costs to deliver the Company's offerings, such as unanticipated curriculum development costs, and other potential variables. Accordingly, a reconciliation is not available without unreasonable effort. About Franklin Covey Co. Franklin Covey Co. (NYSE: FC) is the premiere organizational performance partner of choice, with directly owned and licensee partner offices providing professional services in over 160 countries and territories. With its Enterprise and Education Divisions, the Company transforms organizations by partnering with clients to build leaders, teams, and cultures that get breakthrough results through collective action. Available through the FranklinCovey All Access Pass and Leader in Me membership, FranklinCovey's best-in-class content, solutions, experts, technology, and metrics seamlessly integrate to produce lasting behavior change at scale. Solutions are available in multiple delivery modalities in more than 20 languages. This approach to leadership and organizational change has been tested and refined by working with tens of thousands of teams and organizations over the past 30 years. Clients have included organizations in the Fortune 100, Fortune 500, thousands of small and mid-sized businesses, and numerous educational institutions and government entities. To learn more, visit and enjoy exclusive content across FranklinCovey's social media channels at: LinkedIn, Facebook, Twitter, Instagram, and YouTube. FRANKLIN COVEY CO. Condensed Consolidated Income Statements (in thousands, except per-share amounts, and unaudited) Quarter Ended Three Quarters Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Revenue $ 67,121 $ 73,373 $ 195,819 $ 203,109 Cost of revenue 15,799 17,167 46,040 47,773 Gross profit 51,322 56,206 149,779 155,336 Selling, general, and administrative 46,676 45,110 138,966 130,088 Restructuring costs 4,739 701 6,723 3,008 Impaired asset - - - 928 Depreciation 1,012 990 2,979 2,994 Amortization 1,098 1,062 3,294 3,204 Income (loss) from operations (2,203 ) 8,343 (2,183 ) 15,114 Interest income (expense), net 76 21 295 (59 ) Income (loss) before income taxes (2,127 ) 8,364 (1,888 ) 15,055 Income tax benefit (provision) 718 (2,643 ) 584 (3,609 ) Net income (loss) $ (1,409 ) $ 5,721 $ (1,304 ) $ 11,446 Net income (loss) per common share: Basic $ (0.11 ) $ 0.43 $ (0.10 ) $ 0.87 Diluted (0.11 ) 0.43 (0.10 ) 0.85 Weighted average common shares: Basic 12,891 13,160 13,028 13,222 Diluted 12,891 13,378 13,028 13,499 Other data: Adjusted EBITDA(1) $ 7,307 $ 13,924 $ 17,041 $ 32,340 (1) The term Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to a GAAP measure, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA as shown below. FRANKLIN COVEY CO. Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands and unaudited) Quarter Ended Three Quarters Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss) $ (1,409 ) $ 5,721 $ (1,304 ) $ 11,446 Adjustments: Interest expense (income), net (76 ) (21 ) (295 ) 59 Income tax provision (benefit) (718 ) 2,643 (584 ) 3,609 Amortization 1,098 1,062 3,294 3,204 Depreciation 1,012 990 2,979 2,994 Stock-based compensation 2,217 2,828 5,730 7,092 Restructuring costs 4,739 701 6,723 3,008 Headquarters moving costs 444 - 498 - Impaired asset - - - 928 Adjusted EBITDA $ 7,307 $ 13,924 $ 17,041 $ 32,340 Adjusted EBITDA margin 10.9 % 19.0 % 8.7 % 15.9 % FRANKLIN COVEY CO. Additional Financial Information (in thousands and unaudited) Quarter Ended Three Quarters Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Revenue by Division/Segment: Enterprise Division: North America $ 37,054 $ 40,592 $ 111,711 $ 116,439 International direct offices 7,496 8,540 21,936 24,533 International licensees 2,716 2,747 8,749 8,951 47,266 51,879 142,396 149,923 Education Division 18,640 20,235 50,169 49,815 Corporate and other 1,215 1,259 3,254 3,371 Consolidated $ 67,121 $ 73,373 $ 195,819 $ 203,109 Gross Profit by Division/Segment: Enterprise Division: North America $ 30,708 $ 33,425 $ 92,503 $ 96,101 International direct offices 5,490 6,629 16,163 18,744 International licensees 2,379 2,463 7,742 7,941 38,577 42,517 116,408 122,786 Education Division 12,227 13,270 31,968 31,420 Corporate and other 518 419 1,403 1,130 Consolidated $ 51,322 $ 56,206 $ 149,779 $ 155,336 Adjusted EBITDA by Division/Segment: Enterprise Division: North America $ 6,201 $ 10,822 $ 19,788 $ 30,421 International direct offices 313 1,268 (884 ) 2,318 International licensees 1,349 1,352 4,449 4,626 7,863 13,442 23,353 37,365 Education Division 2,053 3,142 2,006 2,778 Corporate and other (2,609 ) (2,660 ) (8,318 ) (7,803 ) Consolidated $ 7,307 $ 13,924 $ 17,041 $ 32,340 FRANKLIN COVEY CO. Condensed Consolidated Balance Sheets (in thousands and unaudited) May 31, August 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 33,707 $ 48,663 Accounts receivable, less allowance for credit losses of $2,328 and $3,015 49,843 86,002 Inventories 4,062 4,002 Prepaid expenses and other current assets 23,391 21,586 Total current assets 111,003 160,253 Property and equipment, net 9,867 8,736 Intangible assets, net 35,648 37,766 Goodwill 31,220 31,220 Deferred income tax assets 854 870 Other long-term assets 29,692 22,694 $ 218,284 $ 261,539 Liabilities and Shareholders' Equity Current liabilities: Current portion of notes payable $ 816 $ 835 Current portion of financing obligation 221 3,112 Accounts payable 6,234 7,862 Deferred subscription revenue 83,488 101,218 Customer deposits 20,054 16,972 Accrued liabilities 21,494 32,454 Total current liabilities 132,307 162,453 Notes payable, less current portion - 775 Financing obligation, less current portion 1,312 1,312 Other liabilities 15,939 10,732 Deferred income tax liabilities 3,147 3,132 Total liabilities 152,705 178,404 Shareholders' equity: Common stock 1,353 1,353 Additional paid-in capital 230,375 231,813 Retained earnings 121,900 123,204 Accumulated other comprehensive loss (863 ) (768 ) Treasury stock at cost, 14,427 and 14,084 shares (287,186 ) (272,467 ) Total shareholders' equity 65,579 83,135 $ 218,284 $ 261,539 FRANKLIN COVEY CO. Condensed Consolidated Free Cash Flow (in thousands and unaudited) Three Quarters Ended May 31, May 31, 2025 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (1,304 ) $ 11,446 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 6,273 6,198 Amortization of capitalized curriculum costs 3,269 2,340 Stock-based compensation 5,730 7,092 Impaired asset - 928 Deferred income taxes 12 (169 ) Amortization of right-of-use operating lease assets 392 596 Changes in working capital 4,667 9,954 Net cash provided by operating activities 19,039 38,385 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (4,050 ) (2,618 ) Curriculum development costs (4,095 ) (5,195 ) Reacquisition of license rights (324 ) - Net cash used for investing activities (8,469 ) (7,813 ) Free Cash Flow $ 10,570 $ 30,572 View source version on Contacts Investor Contact:Franklin CoveyBoyd Media Contact:Franklin CoveyDebra Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Franklin Covey: Fiscal Q3 Earnings Snapshot
SALT LAKE CITY (AP) — SALT LAKE CITY (AP) — Franklin Covey Co. (FC) on Wednesday reported a loss of $1.4 million in its fiscal third quarter. The Salt Lake City-based company said it had a loss of 11 cents per share. Earnings, adjusted for restructuring costs, were 18 cents per share. The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 8 cents per share. The corporate training and consultanting company posted revenue of $67.1 million in the period, falling short of Street forecasts. Three analysts surveyed by Zacks expected $67.4 million. Franklin Covey expects full-year revenue in the range of $265 million to $275 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on FC at Sign in to access your portfolio
