Franklin Covey Co. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 1, 2012; Reaffirms Earnings Guidance for the Fiscal Year 2013
January 03, 2013 at 09:03 pm
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Franklin Covey Co. reported unaudited consolidated earnings results for the first quarter ended December 1, 2012. For the quarter, the company's net sales increased 11% to $44.1 million, all of which was organic growth, compared with $39.5 million in the first quarter of the prior year. Adjusted EBITDA increased $0.7 million to $7.1 million, an 11% increase compared with $6.4 million in fiscal 2012. Income from operations increased $1.6 million to $5.3 million, a 43% increase compared with $3.7 million in the first quarter of fiscal 2012. Net income improved by $1.2 million, or 74%, to $2.9 million, or $0.15 per diluted share, compared with net income of $1.7 million, or $0.09 per diluted share in fiscal 2012. Income before income taxes was $4.693 million against $3.074 million a year ago. Net cash generated for the quarter increased just $100,000 to $4.8 million up 2% from the $4.7 million of net cash generated in the first quarter of 2012.
The company reaffirmed its previous earnings guidance that Adjusted EBITDA for the fiscal year 2013 is expected to range from $30 million to $32 million. Depreciation and amortization last year was $5.5 million, the company expects it to be about the same this year. The company expects its effective tax rate to be between 42% and 44%, which is down from prior years, even though the company does expect to pay more cash out in taxes.
Franklin Covey Co. is a global company focused on performance improvement. The Companyâs sales are primarily comprised of training and consulting services and its internal reporting and operating structure, which are organized around two divisions: Enterprise Division and Education Division. The Enterprise Division, which consists of its Direct Office and International Licensee segments. The Education Division, which is comprised of its Education practice. Its Direct Office segment includes its sales personnel that serve the United States and Canada; its international sales offices located in Japan, China, the United Kingdom, Australia, Germany, Switzerland, and Austria; its government services sales channel; and its book and audio sales. Its International Licensees segments consists of its international licensees. Its Education Practice segment includes its domestic and international Education practice operations. It is also focused on leasing operations, shipping and handling.
Franklin Covey Co. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 1, 2012; Reaffirms Earnings Guidance for the Fiscal Year 2013