Franklin Covey Reports Second Quarter Fiscal 2024 Financial Results
- Consolidated revenue for Q2 2024 is $61.3 million, slightly lower than the prior year.
- Subscription and subscription services sales total $50.3 million for Q2 2024 and reach a record $227.3 million in the rolling four quarters.
- Cash flows from operating activities increase to $30.2 million in fiscal 2024.
- Free Cash Flow rises to $24.7 million through February 29, 2024.
- Liquidity remains strong at over $103 million with $40.9 million in cash.
- Company expects Adjusted EBITDA of approximately $54.5 million in constant currency.
- AAP subscription sales grow by 9% in Q2 2024 compared to the prior year.
- Education Division revenues increase by 3% to $14.6 million in Q2 2024.
- Net income for Q2 2024 is $0.9 million, with Adjusted EBITDA at $7.4 million.
- Consolidated deferred subscription revenue increases by 13% to $86.1 million at February 29, 2024.
- Cash flows from operating activities increase significantly to $30.2 million in the first half of fiscal 2024.
- Free Cash Flow rises to $24.7 million in the first half of fiscal 2024.
- None.
Insights
The reported financial results of Franklin Covey Co. indicate a relatively stable revenue stream with a slight decrease from $61.8 million to $61.3 million year-over-year for the second quarter. The modest growth in subscription and subscription services sales, which are up 5% to $50.3 million, is a positive signal for recurring revenue stability. The 9% increase in deferred subscription revenue to $158.8 million suggests a healthy pipeline for future revenue recognition. However, the company's net income drop from $1.7 million to $0.9 million raises concerns about profitability and cost management.
Investors should note the strong liquidity position, with over $103 million in liquidity and no drawdowns on the credit facility. This robust liquidity position offers financial flexibility and may serve as a buffer against market volatility or investment in growth opportunities. The substantial increase in cash flows from operating activities and free cash flow is indicative of improved operational efficiency and effective working capital management. The company's expectation of achieving an Adjusted EBITDA of approximately $54.5 million aligns with its guidance, providing a level of predictability in its financial performance.
The performance of Franklin Covey Co. in the educational and enterprise sectors reflects broader trends in the professional training and development industry. The increase in Education Division revenues and the delivery of additional training days indicate a growing demand for education and professional development services. The strong retention levels of AAP subscription revenue in North America, exceeding 90%, demonstrate a robust customer base and suggest a competitive edge in customer loyalty.
However, the report highlights a slower-than-expected rebound of subscription services sales, which may signal a need for strategic adjustments in the company's service offerings or sales tactics. The increase in multi-year contracts for the company's AAP, now comprising 56% of contracts, is an encouraging trend for future revenue stability and may reflect a strategic shift toward long-term customer engagement.
Franklin Covey Co.'s financial results must be contextualized within the current macroeconomic environment. The slight decrease in consolidated sales year-over-year could be attributed to various factors, including market saturation, shifts in corporate spending due to economic uncertainty, or increased competition. The company's strong cash flow performance and increased liquidity are particularly noteworthy against the backdrop of potential tightening monetary policy and economic headwinds, which could challenge companies with weaker cash positions.
The growth in deferred revenue and multi-year contracts suggests a strategic emphasis on long-term stability, which may be a prudent approach in the face of economic fluctuations. However, the reported slower-than-expected sales growth in subscription services could reflect broader economic trends that may impact discretionary spending on corporate training and development programs.
Second Quarter Consolidated Revenue Totals
Second Quarter Subscription and Subscription Services Sales Total
Cash Flows From Operating Activities Increase to
Liquidity Remains Strong at over
Company Expects to Achieve Adjusted EBITDA of Approximately
Introduction
The Company’s consolidated sales for the quarter ended February 29, 2024 totaled
-
Enterprise Division revenues totaled
$45.7 million $46.6 million 9% compared with the second quarter of fiscal 2023 and AAP subscription and subscription services sales grew6% compared with the prior year. For the rolling four quarters ended February 29, 2024, AAP subscription and subscription services sales increased5% to$162.1 million $154.4 million the United States andCanada remained strong and were greater than90% . -
Education Division revenues grew
3% to$14.6 million 4% compared with the prior year primarily due to increased annual membership sales recognized. Delivery of training and coaching days remained strong and during the second quarter of fiscal 2024, the Education Division delivered nearly 100 more training and coaching days than the prior year, which are recognized in sales as they are delivered. -
Net income for the second quarter was
$0.9 million $0.06 $1.7 million $0.12 $7.4 million $8.2 million -
Total Company subscription and subscription services sales reached
$50.3 million 5% increase over the second quarter of fiscal 2023, a quarter which had very strong subscription and subscription services revenue growth. For the rolling four quarters ended February 29, 2024, subscription and subscription service sales reached a second quarter record level of$227.3 million $10.0 million 5% , increase over the rolling four quarters ended February 28, 2023. -
Consolidated deferred subscription revenue at February 29, 2024 increased
13% to$86.1 million $76.1 million 9% , or$13.0 million $158.8 million $145.8 million 56% of the Company’s AAP contracts are for at least two years, compared with50% at February 28, 2023, and the percentage of contracted amounts represented by multi-year contracts increased to62% from57% at the end of the second quarter of fiscal 2023. -
Cash flows from operating activities for the first half of fiscal 2024 increased to
$30.2 million $11.2 million $24.7 million $3.3 million
Paul Walker, President and Chief Executive Officer, commented, “We are pleased that our second quarter results met our expectations as we generated
Walker added, “Our business has remained extremely resilient and we are particularly pleased with this durability in the context of an uncertain economic environment which has negatively impacted many of our clients in both our domestic and international markets. The resiliency of our business model in the second quarter was reflected by strong client retention, strong revenue retention (over
Walker concluded, “We also believe that there are still tremendous opportunities for growth as economies improve, we ramp up client partners, and increase our market penetration with both existing and new clients. We have been expanding key initiatives which we expect to further accelerate our growth by: (a) increasing the extent to which we can further penetrate existing client accounts; and (b) further increasing the number of new accounts we can reach. We expect the roll-out of these initiatives to our already significant marketing, sales, and servicing capabilities will further expand and accelerate our reach. The strength of our powerful business model—a model that features the combination of increasing revenue per client; high revenue and client retention; high gross margins; upfront invoicing; low capital intensity; and disciplined reinvestment for growth—is driving significant amounts of both Adjusted EBITDA and free cash flow in fiscal 2024 and we expect these to increase significantly in future periods.”
Second Quarter 2024 Financial Overview
The following is a summary of the Company’s financial results for the quarter ended February 29, 2024:
-
Net Sales: The Company’s consolidated sales for the second quarter of fiscal 2024 totaled
$61.3 million $61.8 million $43.0 million $43.6 million 6% compared with fiscal 2023 primarily due to decreased royalty revenue. Foreign exchange rates had a$0.3 million $0.2 million 3% to$14.6 million $14.2 million 4% compared with the prior year primarily due to increased annual membership sales recognized. Delivered training days remained strong as the Education Division delivered nearly 100 more training and coaching days than the prior year, which are recognized as sales when they are delivered. -
Deferred Subscription Revenue and Unbilled Deferred Revenue: On February 29, 2024, the Company had
$158.8 million 9% , or$13.0 million $86.1 million 13% , or$9.9 million -
Gross profit: Gross profit for the quarter ended February 29, 2024, was
$46.9 million $47.2 million 76.4% of sales. Cost of goods sold and gross profit each decreased primarily due to sales performance as previously described. -
Operating Expenses: The Company’s operating expenses for the quarter ended February 29, 2024, increased
$1.0 million $1.7 million $0.9 million $1.6 million -
Restructuring Costs: During the quarter ended February 29, 2024, the Company commenced a plan to realign and restructure certain areas of its operations to sharpen the focus of its efforts on proven growth initiatives. As a result of this restructuring plan, the Company incurred severance charges totaling
$1.7 million -
Impaired Asset: In a prior period, the Company began investing in the development of a student leadership assessment. However, due to societal changes in perception regarding the collection of student information and potential legal challenges, the Company determined that it was in its best interest to suspend further development of the student leadership assessment and impair the associated asset, which resulted in a
$0.9 million -
Operating Income: As a result of the factors noted above, the Company’s income from operations for the second quarter of fiscal 2024 was
$1.4 million $2.8 million -
Income Taxes: The Company’s income tax provision for the quarter ended February 29, 2024, was
$0.5 million $1.0 million 38.2% in fiscal 2024, compared with37.5% in fiscal 2023. The effective tax rates for the second quarters of both fiscal 2024 and 2023 were higher than statutory rates primarily due to non-deductible executive compensation and additional income tax related to foreign earnings.
-
Net Income: The Company’s net income for the second quarter of fiscal 2024 was
$0.9 million $0.06 $1.7 million $0.12 -
Adjusted EBITDA: Adjusted EBITDA for the quarter ended February 29, 2024 was
$7.4 million $8.2 million $2.9 million 7% , to$46.8 million $43.9 -
Purchases of Common Stock: During the first two quarters of fiscal 2024, the Company purchased 460,609 shares of its common stock for
$18.4 million -
Liquidity and Financial Position: Even after the purchase of
$18.4 million $49.3 million $103 million $40.9 million $62.5 million
Fiscal 2024 Year-to-Date Financial Results
Consolidated revenue for the first two quarters of fiscal 2024 was
Operating expenses for the two quarters ended February 29, 2024 increased
Fiscal 2024 Guidance and Outlook
Based on the strength of the Company’s business model that features high recurring revenue, high gross margins, and low capital intensity, combined with the continued strength and strategic durability of the All Access Pass and Leader in Me membership subscriptions, the Company looks forward to a strong second half of fiscal 2024. Despite the challenges from the first half of fiscal 2024, the Company expects that its Adjusted EBITDA for fiscal 2024 will be at the lower end of its previously announced guidance range of
Earnings Conference Call
On Wednesday, March 27, 2024, at 5:00 p.m. Eastern (3:00 p.m. Mountain) Franklin Covey will host a conference call to review its fiscal 2024 second quarter financial results. Interested persons may access a live audio webcast at https://edge.media-server.com/mmc/p/oqgb55wf or may participate via telephone by registering at https://register.vevent.com/register/BI48d1c548f55048e0b4368e6c233ffc82. 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; growth in and client demand for add-on services; the impact of deferred revenues on future financial results; impacts from geopolitical conflicts; market acceptance of new products or services, including new AAP portal upgrades and content launches; inflation; the ability to achieve sustainable growth in future periods; 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 concept of Adjusted EBITDA and Free Cash Flow, which are non-GAAP measures. The Company defines Adjusted EBITDA as net income excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other infrequently occurring items such as restructuring costs and impaired assets. Free Cash Flow is defined as cash flows from operating activities less capitalized expenditures for purchases of property and equipment and curriculum development. 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 a global leadership company with directly owned and licensee partner offices providing professional services in over 160 countries and territories. The Company transforms organizations by partnering with its clients to build leaders, teams, and cultures that achieve breakthrough results through collective action, which leads to a more engaging work experience for their people. Available through the Franklin Covey All Access Pass, the Company’s best-in-class content and solutions, experts, technology, and metrics seamlessly integrate to ensure lasting behavioral 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, and thousands of small- and mid-sized businesses, numerous governmental entities, and educational institutions. To learn more, visit www.franklincovey.com, and enjoy exclusive content from Franklin Covey’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 | Two Quarters Ended | ||||||||||||||
| February 29, | February 28, | February 29, | February 28, | ||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
| Net sales | $ |
61,336 |
|
$ |
61,756 |
|
$ |
129,736 |
|
$ |
131,125 |
|
|||
| Cost of sales |
|
14,485 |
|
|
14,546 |
|
|
30,607 |
|
|
31,173 |
|
|||
| Gross profit |
|
46,851 |
|
|
47,210 |
|
|
99,129 |
|
|
99,952 |
|
|||
| Selling, general, and administrative |
|
40,771 |
|
|
42,338 |
|
|
84,976 |
|
|
86,350 |
|
|||
| Restructuring costs |
|
1,726 |
|
|
- |
|
|
2,307 |
|
|
- |
|
|||
| Impaired asset |
|
928 |
|
|
- |
|
|
928 |
|
|
- |
|
|||
| Depreciation |
|
913 |
|
|
951 |
|
|
2,005 |
|
|
2,196 |
|
|||
| Amortization |
|
1,071 |
|
|
1,093 |
|
|
2,142 |
|
|
2,185 |
|
|||
| Income from operations |
|
1,442 |
|
|
2,828 |
|
|
6,771 |
|
|
9,221 |
|
|||
| Interest expense, net |
|
(27 |
) |
|
(47 |
) |
|
(80 |
) |
|
(377 |
) |
|||
| Income before income taxes |
|
1,415 |
|
|
2,781 |
|
|
6,691 |
|
|
8,844 |
|
|||
| Income tax provision |
|
(541 |
) |
|
(1,042 |
) |
|
(966 |
) |
|
(2,438 |
) |
|||
| Net income | $ |
874 |
|
$ |
1,739 |
|
$ |
5,725 |
|
$ |
6,406 |
|
|||
| Net income per common share: | |||||||||||||||
| Basic | $ |
0.07 |
|
$ |
0.13 |
|
$ |
0.43 |
|
$ |
0.46 |
|
|||
| Diluted |
|
0.06 |
|
|
0.12 |
|
|
0.42 |
|
|
0.44 |
|
|||
| Weighted average common shares: | |||||||||||||||
| Basic |
|
13,263 |
|
|
13,900 |
|
|
13,253 |
|
|
13,888 |
|
|||
| Diluted |
|
13,484 |
|
|
14,533 |
|
|
13,560 |
|
|
14,520 |
|
|||
| Other data: | |||||||||||||||
| Adjusted EBITDA(1) | $ |
7,448 |
|
$ |
8,187 |
|
$ |
18,418 |
|
$ |
19,659 |
|
|||
(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 to Adjusted EBITDA as shown below. | ||||||
| FRANKLIN COVEY CO. | ||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||
| (in thousands and unaudited) | ||||||||||||||||
| Quarter Ended | Two Quarters Ended | |||||||||||||||
| February 29, | February 28, | February 29, | February 28, | |||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Reconciliation of net income to Adjusted EBITDA: | ||||||||||||||||
| Net income | $ |
874 |
|
$ |
1,739 |
|
$ |
5,725 |
|
$ |
6,406 |
|
||||
| Adjustments: | ||||||||||||||||
| Interest expense, net |
|
27 |
|
|
47 |
|
|
80 |
|
|
377 |
|
||||
| Income tax provision |
|
541 |
|
|
1,042 |
|
|
966 |
|
|
2,438 |
|
||||
| Amortization |
|
1,071 |
|
|
1,093 |
|
|
2,142 |
|
|
2,185 |
|
||||
| Depreciation |
|
913 |
|
|
951 |
|
|
2,005 |
|
|
2,196 |
|
||||
| Stock-based compensation |
|
1,368 |
|
|
3,315 |
|
|
4,265 |
|
|
6,050 |
|
||||
| Restructuring costs |
|
1,726 |
|
|
- |
|
|
2,307 |
|
|
- |
|
||||
| Impaired asset |
|
928 |
|
|
- |
|
|
928 |
|
|
- |
|
||||
| Increase in the fair value of contingent consideration liabilities |
|
- |
|
|
- |
|
|
- |
|
|
7 |
|
||||
| Adjusted EBITDA | $ |
7,448 |
|
$ |
8,187 |
|
$ |
18,418 |
|
$ |
19,659 |
|
||||
| Adjusted EBITDA margin |
|
12.1 |
% |
|
13.3 |
% |
|
14.2 |
% |
|
15.0 |
% |
||||
| FRANKLIN COVEY CO. | ||||||||||||||||
| Additional Financial Information | ||||||||||||||||
| (in thousands and unaudited) | ||||||||||||||||
| Quarter Ended | Two Quarters Ended | |||||||||||||||
| February 29, | February 28, | February 29, | February 28, | |||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Sales by Division/Segment: | ||||||||||||||||
| Enterprise Division: | ||||||||||||||||
| Direct offices | $ |
42,960 |
|
$ |
43,646 |
|
$ |
92,175 |
|
$ |
93,812 |
|
||||
| International licensees |
|
2,748 |
|
|
2,935 |
|
|
6,126 |
|
|
6,213 |
|
||||
|
45,708 |
|
|
46,581 |
|
|
98,301 |
|
|
100,025 |
|
|||||
| Education Division |
|
14,579 |
|
|
14,198 |
|
|
29,323 |
|
|
28,549 |
|
||||
| Corporate and other |
|
1,049 |
|
|
977 |
|
|
2,112 |
|
|
2,551 |
|
||||
| Consolidated | $ |
61,336 |
|
$ |
61,756 |
|
$ |
129,736 |
|
$ |
131,125 |
|
||||
| Gross Profit by Division/Segment: | ||||||||||||||||
| Enterprise Division: | ||||||||||||||||
| Direct offices | $ |
35,514 |
|
$ |
35,854 |
|
$ |
75,015 |
|
$ |
75,775 |
|
||||
| International licensees |
|
2,374 |
|
|
2,659 |
|
|
5,426 |
|
|
5,635 |
|
||||
|
37,888 |
|
|
38,513 |
|
|
80,441 |
|
|
81,410 |
|
|||||
| Education Division |
|
8,597 |
|
|
8,392 |
|
|
17,977 |
|
|
17,568 |
|
||||
| Corporate and other |
|
366 |
|
|
305 |
|
|
711 |
|
|
974 |
|
||||
| Consolidated | $ |
46,851 |
|
$ |
47,210 |
|
$ |
99,129 |
|
$ |
99,952 |
|
||||
| Adjusted EBITDA by Division/Segment: | ||||||||||||||||
| Enterprise Division: | ||||||||||||||||
| Direct offices | $ |
9,122 |
|
$ |
9,641 |
|
$ |
20,809 |
|
$ |
20,890 |
|
||||
| International licensees |
|
1,342 |
|
|
1,541 |
|
|
3,238 |
|
|
3,372 |
|
||||
|
10,464 |
|
|
11,182 |
|
|
24,047 |
|
|
24,262 |
|
|||||
| Education Division |
|
(529 |
) |
|
(622 |
) |
|
(487 |
) |
|
(341 |
) |
||||
| Corporate and other |
|
(2,487 |
) |
|
(2,373 |
) |
|
(5,142 |
) |
|
(4,262 |
) |
||||
| Consolidated | $ |
7,448 |
|
$ |
8,187 |
|
$ |
18,418 |
|
$ |
19,659 |
|
||||
| FRANKLIN COVEY CO. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands and unaudited) | |||||||
| February 29, | August 31, | ||||||
2024 |
2023 |
||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ |
40,904 |
|
$ |
38,230 |
|
|
| Accounts receivable, less allowance for doubtful accounts of |
|
57,153 |
|
|
81,935 |
|
|
| Inventories |
|
4,196 |
|
|
4,213 |
|
|
| Prepaid expenses and other current assets |
|
20,182 |
|
|
20,639 |
|
|
| Total current assets |
|
122,435 |
|
|
145,017 |
|
|
| Property and equipment, net |
|
8,708 |
|
|
10,039 |
|
|
| Intangible assets, net |
|
38,371 |
|
|
40,511 |
|
|
| Goodwill |
|
31,220 |
|
|
31,220 |
|
|
| Deferred income tax assets |
|
1,655 |
|
|
1,661 |
|
|
| Other long-term assets |
|
19,544 |
|
|
17,471 |
|
|
$ |
221,933 |
|
$ |
245,919 |
|
||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Current portion of notes payable | $ |
3,335 |
|
$ |
5,835 |
|
|
| Current portion of financing obligation |
|
3,718 |
|
|
3,538 |
|
|
| Accounts payable |
|
7,734 |
|
|
6,501 |
|
|
| Deferred subscription revenue |
|
82,365 |
|
|
95,386 |
|
|
| Other deferred revenue |
|
22,012 |
|
|
12,137 |
|
|
| Accrued liabilities |
|
19,301 |
|
|
28,252 |
|
|
| Total current liabilities |
|
138,465 |
|
|
151,649 |
|
|
| Notes payable, less current portion |
|
1,577 |
|
|
1,535 |
|
|
| Financing obligation, less current portion |
|
2,515 |
|
|
4,424 |
|
|
| Other liabilities |
|
7,492 |
|
|
7,617 |
|
|
| Deferred income tax liabilities |
|
1,057 |
|
|
2,040 |
|
|
| Total liabilities |
|
151,106 |
|
|
167,265 |
|
|
| Shareholders' equity: | |||||||
| Common stock |
|
1,353 |
|
|
1,353 |
|
|
| Additional paid-in capital |
|
225,776 |
|
|
232,373 |
|
|
| Retained earnings |
|
105,527 |
|
|
99,802 |
|
|
| Accumulated other comprehensive loss |
|
(1,075 |
) |
|
(987 |
) |
|
| Treasury stock at cost, 13,801 and 13,974 shares |
|
(260,754 |
) |
|
(253,887 |
) |
|
| Total shareholders' equity |
|
70,827 |
|
|
78,654 |
|
|
$ |
221,933 |
|
$ |
245,919 |
|
||
| FRANKLIN COVEY CO. | |||||||
| Condensed Consolidated Free Cash Flow | |||||||
| (in thousands and unaudited) | |||||||
| Two Quarters Ended | |||||||
| February 29, | February 28, | ||||||
2024 |
2023 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income | $ |
5,725 |
|
$ |
6,406 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|||||
| Depreciation and amortization |
|
4,146 |
|
|
4,381 |
|
|
| Amortization of capitalized curriculum costs |
|
1,501 |
|
|
1,648 |
|
|
| Impairment of assets |
|
928 |
|
|
- |
|
|
| Stock-based compensation |
|
4,265 |
|
|
6,050 |
|
|
| Deferred income taxes |
|
(978 |
) |
|
1,130 |
|
|
| Change in fair value of contingent consideration liabilities |
|
- |
|
|
7 |
|
|
| Amortization of right-of-use operating lease assets |
|
403 |
|
|
411 |
|
|
| Changes in working capital |
|
14,222 |
|
|
(8,825 |
) |
|
| Net cash provided by operating activities |
|
30,212 |
|
|
11,208 |
|
|
|
|
||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|||||
| Purchases of property and equipment |
|
(1,716 |
) |
|
(2,644 |
) |
|
| Curriculum development costs |
|
(3,770 |
) |
|
(5,277 |
) |
|
| Net cash used for investing activities |
|
(5,486 |
) |
|
(7,921 |
) |
|
|
|
||||||
| Free Cash Flow | $ |
24,726 |
|
$ |
3,287 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327505434/en/
Investor Contact:
Franklin Covey
Boyd Roberts
801-817-5127
investor.relations@franklincovey.com
Media Contact:
Franklin Covey
Debra Lund
801-817-6440
Debra.Lund@franklincovey.com
Source: Franklin Covey Co.
FAQ
What is Franklin Covey Co.'s (FC) revenue for Q2 2024?
How much did the subscription and subscription services sales total in Q2 2024?
What is the record amount of subscription and subscription services sales for the rolling four quarters?
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What is the expected Adjusted EBITDA for Franklin Covey Co.?
