Franklin Covey Co. (NYSE: FC), a global performance improvement company that creates and distributes world-class content, training, processes, and tools that organizations and individuals use to transform their results, today announced financial results for its fiscal third quarter ended June 1, 2013.
Fiscal 2013 Third Quarter Financial Highlights
- Sales increased 9% to $44.9 million, compared with $41.3 million in the prior year.
- Sales grew at nearly all of the Company’s major channels, including its U.S./Canada regional sales offices, government services office, international direct offices, from licensee partners, and through the national account practices channel.
- Gross profit increased 13% to $29.4 million on increased sales and an improvement in the Company’s gross margin to 65.6% of sales compared with 63.3% of sales in fiscal 2012.
- Adjusted EBITDA increased 9% to $6.3 million compared with $5.8 million in the prior year.
- Net income increased 31% to $2.1 million compared with $1.6 million in the third quarter of fiscal 2012.
- EPS grew 44%, to $0.13 per diluted share, from $0.09 per diluted share in the prior year.
- Cash and cash equivalents remained strong and totaled $8.9 million at June 1, 2013 compared with $11.0 million at August 31, 2012.
- The Company completed the acquisition of NinetyFive 5, an entity that provides sales success training services that complement existing Sales Performance Practice curriculum. This acquisition is expected to strengthen the Company’s Sales Performance Practice offerings and improve practice performance in future periods.
Net sales for the quarter ended June 1, 2013 increased $3.6 million, or 9%, to $44.9 million, compared with $41.3 million in the prior year. Sales increased at the Company’s U.S./Canada direct offices, including its government services office; at its international direct offices; from international licensees; from its national account practices; and from increased leasing revenues. Adjusted EBITDA for the quarter increased to $6.3 million, or 9%, compared with $5.8 million in fiscal 2012. The Company’s Adjusted EBITDA margin (Adjusted EBITDA as a percent of sales) remained strong, and increased to 14.0% compared with 13.9% in the third quarter of fiscal 2012. Income from operations increased by $0.7 million, or 20%, to $4.1 million compared with $3.4 million the third quarter of the prior year. Improved operating results flowed through to net income, which increased by 31% to $2.1 million, or $0.13 per diluted share, compared with $1.6 million, or $.09 per diluted share, in the third quarter of fiscal 2012.