NYSE$FC

Franklin Covey Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Franklin Covey's Q4 2020 net income and Adjusted EBITDA exceeded expectations due to the strength of its subscription business and quick pivot to digital delivery.

Franklin Covey reported Q4 2020 results impacted by COVID-19 but better-than-expected due to subscription business strength and a shift to live-online content. All Access Pass sales grew 15% during Q3 and Q4, with revenue retention over 90% for the year. Net income was $1.0 million, or $0.07 per diluted share, and Adjusted EBITDA was $8.9 million.

  • Subscription business, including All Access Pass and Leader in Me, showed strong growth and high revenue retention.
  • Quick pivot to live-online and digital delivery mitigated the impact of COVID-19.
  • Booking pace for add-on coaching and services returned to pre-pandemic levels by July and exceeded last year's pace through August.
  • Nearly 2,200 schools renewed Leader in Me memberships, and 320 new schools joined the program.

Headline financials

Total Revenue

$49M

Previous: $65.2M-24.8%
EPS (adj)

$0.07

Previous: $0.41-82.9%
Deferred Subscription Revenue

$60.6M

No prior period
Capital Expenditures

$847K

Previous: $1.16M-26.8%
Free Cash Flow

$8.01M

Previous: $10.7M-25.0%
Net Income

$980K

Previous: $5.88M-83.3%
Operating Income

$3.74M

Previous: $8.73M-57.1%
Gross Profit

$37.9M

Previous: $47.5M-20.3%
Cash & Equivalents

$27.1M

Previous: $27.7M-2.0%
Total Assets

$205M

Previous: $225M-8.7%
Stock-Based Comp

$887K

Previous: $1.75M-49.3%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$49M

Q4 2020-24.8%vs Q4 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

FranklinCovey · $47.5M total across 2 segments · Q4 2020

  • Enterprise Division
    $34.3M
  • Education Division
    $13.2M

Forward guidance

Based on current expectations, including the duration and anticipated economic recovery from the COVID-19 pandemic, the Company expects Adjusted EBITDA to total between $20 million to $22 million in fiscal 2021.

Tailwinds

  • Strength of All Access Pass and Leader in Me membership
  • These have driven Franklin Covey’s growth trajectory across recent years
  • These have remained strong during the pandemic
  • Will drive accelerated growth in fiscal 2021
  • Will drive accelerated growth 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 Q4 2020

Historical avgQ4 2020

+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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