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's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: FC

We’re pleased that our total revenue somewhat exceeded our expectations and made the first quarter the best first quarter ever for our current business. Our results even slightly exceeded the very strong first quarter reports of last year, which was driven by the substantial revenue we received as part of the initial launch phase of that contract. And then, for the trailing four quarters ended November 26, revenue of $160.9 million was, represented a $16.6 million increase or 11.5% increase compared to $144 million in trailing four quarters revenue we had a year ago.

We’re pleased that our [results] during the [first] quarter is very broad-based with revenue growth of 9% in our four U.S. and Canadian geographic direct offices; revenue growth of 24% in our National Account practices, with Sales Performance practice growing 37% in the quarter, the Education practice growing 23%, and Customer Loyalty growing 11%.

We had revenue growth of 22.8% for international licensee partner offices and we’re excited that 18 of our 20 largest licensee partners posted revenue growth for the quarter. And we also had a small amount of revenue growth in our international direct offices. So that’s kind of the first headline for the quarter.

Second headline is that a higher increase in percentage of revenue flowed through to increases in adjusted EBITDA, operating income, net income and free cash flow. I’ll just maybe touch on each of those. Our adjusted EBITDA grew 12.2% for the first quarter to $6.4 million, which is up from $5.7 million for the first quarter in fiscal 2011. This exceeded our expectations and also made the first quarter our best first quarter ever for adjusted EBITDA.

We really feel particularly good about this since we’re up against a very tough comp from last year, where our adjusted EBITDA had increased by 63% or $2.2 million compared to the first quarter of 2010, driven by the initiation of the government contract. Interesting for us is historically the only quarter in a year in which we’ve really ever achieved adjusted EBITDA of $6 million has been in our seasonally strong fourth quarter.

3 of 4

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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