This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Franklin Covey Announces Strong Financial Results For Its First Quarter Of Fiscal 2012

Stocks in this article: FC

Gross profit margins increased 6% to $26.5 million primarily due to increased royalty revenues from new publications and from the Company’s international licensees. Book and international licensee royalty sales have higher gross margins than the majority of the Company’s other offerings. As a result of these increases, the Company’s gross margin for the quarter improved to 67.1% of sales compared to 63.6% of sales in the first quarter of fiscal 2011.

Selling, general and administrative expenses (SG&A) increased by $1.6 million primarily due to a $0.8 million increase in non-cash share-based compensation expense and $0.8 million of increased promotion and travel expenses associated with the world-wide launch of the Company’s new productivity offering, The 5 Choices to Extraordinary Productivity. Depreciation and amortization charges declined compared to the prior year primarily due to the full depreciation and amortization of certain assets, contributing to improved income from operations during the first quarter of fiscal 2012.

Net income improved to $1.7 million, or $0.09 per diluted share, compared with $0.8 million, or $.05 per diluted share in fiscal 2011. The Company’s net income benefited from a significant decrease in the effective tax rate from 71% in fiscal 2011 to 46% in fiscal 2012, primarily due to the recognition of foreign tax credits in the first quarter of fiscal 2012.

As of November 26, 2011, the Company had $2.6 million in cash and cash equivalents, compared with $3.0 million at August 31, 2011. Net working capital increased to $19.1 million at November 26, 2011 compared with $16.7 million on August 31, 2011 and the Company had $1.1 million outstanding on its line of credit facility at November 26, 2011.

First Quarter Financial Highlights

  • Sales grew in a majority of the Company’s offices, practices, and from its licensee partners.
  • Adjusted EBITDA increased 12% to $6.4 million, compared with $5.7 million in the prior year.
  • Net income increased to $1.7 million compared with $0.8 million in the first quarter of fiscal 2011.
  • EPS in the quarter growth of 95%, to $0.09 per diluted share, from $0.05 per diluted share in the first quarter of fiscal 2011.
  • Gross profit increased 6% to $26.5 million.
  • Gross margin for the quarter expanded to 67.1% of sales compared to 63.6% of sales in the first quarter of fiscal 2011.
  • Adjusted EBITDA/Sales Percentage increased to 16.1% from 14.4% last year.

Fiscal 2012 Outlook

The Company reaffirmed its projections that Adjusted EBITDA for fiscal 2012 is expected to range from $24 million to $26 million, and expressed commitment to work to be at the higher end of that range.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs