NYSE$FC

Franklin Covey Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

FranklinCovey reported a strong start to fiscal year 2022 with a record first quarter and significant growth in key areas.

FranklinCovey's first quarter of fiscal 2022 showed strong growth, with a 27% increase in sales to a record $61.3 million. All Access Pass subscriptions and Education Division revenues also grew significantly, contributing to a 167% increase in Adjusted EBITDA to $9.9 million.

  • Consolidated sales increased 27% to $61.3 million, a record for the first quarter.
  • All Access Pass subscription and subscription services sales grew 27% to $33.1 million.
  • Education Division revenues increased 56% due to growth in Leader in Me subscriptions.
  • Adjusted EBITDA increased 167% to $9.9 million, driven by increased sales and improved margins.

Headline financials

Total Revenue

$61.3M

Previous: $48.3M+26.8%
EPS (adj)

$0.27

Previous: -$0.06+550.0%
Deferred Subscription Revenue

$121M

Previous: $97.4M+24.3%
Adjusted EBITDA Margin

16.2%

No prior period
Capital Expenditures

-$520K

Previous: -$185K-181.1%
Free Cash Flow

$3.29M

Previous: -$1.08M+405.7%
Net Income

$3.81M

Previous: -$892K+527.4%
Operating Income

$5.55M

Previous: -$169K+3381.1%
Gross Profit

$47.6M

Previous: $36.4M+30.8%
Cash & Equivalents

$51.3M

Previous: $34.3M+49.6%
Total Assets

$231M

Previous: $196M+17.5%
Stock-Based Comp

$1.65M

No prior period

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$61.3M

Q1 2022+26.8%vs Q1 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

FranklinCovey · $61.3M total across 3 segments · Q1 2022

  • Enterprise Division
    $48.1M+22.3%
  • Education Division
    $11.7M+56.0%
  • Corporate and other
    $1.45M-2.8%

Forward guidance

The Company expects fiscal 2022 Adjusted EBITDA to total between $34.0 million and $36.0 million.

Tailwinds

  • Strong first quarter performance
  • Momentum generated in late fiscal 2021
  • Expected Adjusted EBITDA growth of 25% compared to fiscal 2021
  • Strength of All Access Pass subscriptions
  • Strength of Leader in Me membership subscriptions

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 2022

Historical avgQ1 2022

+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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