NYSE$FC

Franklin Covey Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

FranklinCovey's operating income and Adjusted EBITDA exceeded expectations as Adjusted EBITDA increased by 26%.

FranklinCovey reported strong second quarter fiscal 2021 results driven by the continued success of its All Access Pass subscription model and the strength of its subscription business overall. The company's operating income and Adjusted EBITDA exceeded expectations, with Adjusted EBITDA increasing 26% to $5.1 million. Cash flows from operating activities increased 26% to $21.9 million in the first two quarters of fiscal 2021, and the company ended the quarter with $40.3 million in cash.

  • All Access Pass sales increased 13% in the second quarter of fiscal 2021.
  • Sales of All Access Pass related services in the second quarter were higher than add-on sales in the pre-pandemic second quarter.
  • Sales in international direct offices and international licensee partners continued to strengthen.
  • Booking trends in the Education Division strengthened in the quarter, even compared to last year’s second quarter.

Headline financials

Total Revenue

$48.2M

Previous: $53.7M-10.4%
EPS (adj)

-$0.01

Previous: -$0.07+85.7%
Adjusted EBITDA

$5.1M

No prior period
Capital Expenditures

-$877K

Previous: -$2.52M+65.1%
Free Cash Flow

-$923K

Previous: -$1.42M+35.0%
Net Income

-$46K

Previous: $1.1M-104.2%
Operating Income

$844K

Previous: -$378K+323.3%
Gross Profit

$37.3M

Previous: $38.7M-3.4%
Cash & Equivalents

$40.3M

Previous: $24.8M+62.6%
Total Assets

$199M

Previous: $202M-1.5%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$48.2M

Q2 2021-10.4%vs Q2 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

FranklinCovey · $93.5M total across 2 segments · Q2 2021

  • Enterprise Division
    $77.5M+90.6%
  • Education Division
    $16M+46.9%

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.
  • Expected accelerated growth during fiscal 2021 and in the future.
  • Company expects its results to continue to be strong throughout the remainder of the fiscal year.
  • Company expects to generate significant growth in Adjusted EBITDA during the second half of fiscal 2021, and in future years.
  • Company expects to generate significant growth in cash flow during the second half of fiscal 2021, and in future years.

Headwinds

  • General economic conditions.
  • The severity and duration of global business disruptions from the COVID-19 outbreak.
  • The ability of the Company to operate effectively during and in the aftermath of the COVID-19 pandemic.
  • Expectations regarding the economic recovery from the pandemic.
  • Market acceptance of new products or services, including new AAP portal upgrades.

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 Q2 2021

Historical avgQ2 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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