NYSE$FC

Franklin Covey Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Net income and Adjusted EBITDA exceeded expectations due to the company’s subscription business and quick pivot to delivering content live-online and through other digital modalities.

Franklin Covey reported strong Q1 fiscal 2021 results, driven by the All Access Pass and Leader in Me membership. Gross margins increased and operating expenses decreased, allowing income from operations to remain effectively even with the prior year despite the pandemic. Cash flows from operating activities increased 59% to $10.9 million.

  • All Access Pass sales grew 16% compared with the prior year, and annual AAP revenue retention remained strong at greater than 90%.
  • Leader in Me membership revenues increased 14% over the first quarter of the prior year.
  • The company’s loss from operations for the quarter ended November 30, 2020 was $0.2 million, which was essentially even compared with the first quarter of the prior year.
  • Cash flows from operating activities for the first quarter of fiscal 2021 increased 59%, to $10900000.

Headline financials

Total Revenue

$48.3M

Previous: $58.6M-17.6%
EPS (adj)

-$0.06

No prior period
Adjusted EBITDA

$3.72M

Previous: $5M-25.7%
Deferred Subscription Revenue

$97.4M

No prior period
Capital Expenditures

-$185K

Previous: -$1.41M+86.9%
Free Cash Flow

-$1.08M

Previous: -$1.95M+44.8%
Net Income

-$892K

Previous: -$544K-64.0%
Operating Income

-$169K

Previous: -$159K-6.3%
Gross Profit

$36.4M

Previous: $42M-13.4%
Cash & Equivalents

$34.3M

Previous: $32.8M+4.6%
Total Assets

$196M

Previous: $211M-7.1%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$48.3M

Q1 2021-17.6%vs Q1 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

FranklinCovey · $48.3M total across 3 segments · Q1 2021

  • Enterprise Division
    $39.3M
  • Education Division
    $7.5M
  • Corporate and other
    $1.49M

Forward guidance

The Company affirms its previously announced guidance and continues to expect Adjusted EBITDA to total between $20 million to $22 million in fiscal 2021.

Tailwinds

  • Strength of the All Access Pass and Leader in Me membership will drive accelerated growth in fiscal 2021 and in the future.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+5.4%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+44.5%

Q2 2026

Best reaction

-26.5%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+44.5%+1.2%
Q1 2026+1.0%+11.1%+3.4%
Q4 2025-10.7%-13.0%-10.1%
Q3 2025+2.0%+0.1%-1.6%
Q2 2025-26.5%-29.3%-24.0%
Q1 2025-11.3%-13.8%+7.2%
Q4 2024-8.3%-4.3%-11.6%
Q3 2024+6.5%+6.9%+24.0%
Q2 2024+0.7%-3.6%+1.4%
Q1 2024+1.9%-1.8%+2.0%
Q4 2023-11.0%-11.3%-0.3%
Q3 2023+28.7%+26.2%+32.5%
Q2 2023-17.7%-12.3%-16.6%
Q1 2023-8.4%-7.7%+1.0%
Q4 2022-0.6%-5.8%-0.3%
Q3 2022+19.0%+21.4%+34.8%
Q2 2022-6.8%-3.8%-17.4%
Q1 2022+10.9%+12.1%+2.0%
Q4 2021+5.6%+13.3%+2.9%
Q3 2021+11.6%+6.3%+13.5%
Q2 2021+6.6%+7.1%+8.0%
Q1 2021+4.8%+3.1%+15.8%
Q4 2020+16.4%+36.7%+26.0%
Q3 2020-8.3%-7.1%-0.2%
Q2 2020+15.4%+29.6%+35.8%
Q1 2020-3.6%-2.3%-3.2%
Q4 2019+3.5%+1.0%-2.8%
Q3 2019+8.2%+8.8%+17.0%
Q2 2019+8.4%+5.0%+13.0%
Q1 2019+3.7%+4.3%+5.4%
Q4 2018+3.5%+0.6%+3.0%
Q3 2018-6.8%-8.9%-11.4%
Q2 2018+9.0%-1.9%-4.1%
Q1 2018+14.5%+36.5%+26.6%
Q4 2017+11.0%+2.9%+2.9%
Q3 2017-7.9%-6.2%-12.9%
Q2 2017+26.6%+29.2%+33.2%
Q1 2017-6.4%-6.9%-13.0%
Q4 2016-1.6%+4.4%+14.8%
Q3 2016-4.3%-1.7%+13.4%
Q2 2016-9.8%
Q1 2016+1.5%
Q4 2015-13.3%
Q3 2015-13.0%
Q2 2015-2.2%
Q1 2015-0.5%
Q4 2014+0.5%
Q3 2014+0.3%
Q2 2014+1.1%
Q1 2014+0.7%
Q4 2013+5.3%
Q3 2013+3.8%
Q2 2013-0.7%
Q1 2013+0.9%
Q4 2010-7.0%
Q4 2012-7.0%
Q3 2011+0.6%
Q3 2012+6.2%
Q2 2012-2.2%
Q2 2011-2.2%
Q4 2011-0.6%
Q1 2012-0.6%
Q1 2011-5.0%
Q3 2010+4.1%
Q2 2010+0.9%

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