Core Insights - Franklin Covey's stock has experienced significant volatility, rising from approximately $18 in 2020 to over $50 in late 2022, before declining to around $38 in early 2025, and further dropping to about $20 after Q2 2025 earnings were released [1] Stock Performance - The stock price trajectory shows a peak of over $50 in late 2022, indicating a substantial increase from its 2020 price of ~$18 [1] - Following the peak, the stock has faced a decline, reaching ~$38 in early 2025 and subsequently falling to ~$20 after the latest earnings report [1]

Revenue Performance - Consolidated revenue for the quarter ended February 28, 2025, was $59.6 million, a decrease from $61.3 million in the same quarter of fiscal 2024, with a constant currency revenue of $60.1 million[66]. - Enterprise Division revenues for the second quarter of fiscal 2025 totaled $43.6 million, down from $45.6 million in the prior year, primarily due to a $1.1 million decrease in International Direct Office revenues and a $1.0 million decrease in North America segment revenues[67]. - Education Division revenues increased by 3% to $15.1 million compared to $14.7 million in the prior year, driven by increased training and coaching revenue, membership subscription revenues, and classroom materials sales[68]. - Consolidated subscription and subscription services revenues for the second quarter of fiscal 2025 were $49.5 million, down from $50.3 million in the same quarter of fiscal 2024[68]. - Consolidated deferred subscription revenue increased by 10% to $94.4 million compared to $86.1 million at February 29, 2024[68]. - International Direct Office revenues decreased by $1.1 million, impacted by economic disruptions and geopolitical tensions, with significant declines in China (35%), Japan (19%), and the UK (17%) compared to the same period in fiscal 2024[74]. - North America segment revenue for the first two quarters of fiscal 2025 totaled $74.657 million, a decrease of $1.190 million compared to fiscal 2024[86]. - International Direct Office revenues decreased by 9.7%, or $1.553 million, for the first two quarters of fiscal 2025, impacted by economic disruptions in Asia and Europe[89]. - International Licensees revenue decreased by 3%, or $0.2 million, primarily due to decreased services revenue and a decrease in share of AAP revenue[92]. - Education Division revenue for the first two quarters of fiscal 2025 increased by 7%, or $1.949 million, reaching $31.529 million[95]. Profitability and Expenses - Gross profit for the second quarter of fiscal 2025 was $45.7 million, down from $46.9 million in the prior year, with a gross margin of 76.7% compared to 76.4% in the same quarter of the prior year[68]. - Operating expenses increased by $1.8 million, primarily due to a $4.3 million increase in selling, general, and administrative (SG&A) expenses[68]. - The net loss for the quarter ended February 28, 2025, was $(1.1) million, or $(0.08) per share, compared to net income of $0.9 million, or $0.06 per diluted share, in the same quarter of fiscal 2024[68]. - Adjusted EBITDA for the quarter was $2.1 million, down from $7.4 million in the second quarter of fiscal 2024, with a constant currency Adjusted EBITDA of $2.6 million[68]. - Education Division gross profit increased to $9.331 million, with a gross margin of 61.9%, up from 59.1% in the prior year[81]. - SG&A expenses for the Education Division increased to $19.788 million, up from $18.514 million in the prior year[95]. - North America SG&A expenses increased by $5.132 million, primarily due to new sales personnel and increased advertising costs[88]. - International Licensee gross margin increased to 88.9% in the first half of fiscal 2025, driven by increased royalties in the revenue mix[93]. Cash Flow and Financing - Cash provided by operating activities decreased to $12.8 million in the first half of fiscal 2025 from $30.2 million in the same period of fiscal 2024, primarily due to lower operating income and cash payments for income taxes[108]. - Total cash used for investing activities in the first half of fiscal 2025 was $5.0 million, with $2.4 million allocated to the development of offerings and $2.3 million for property and equipment purchases[109]. - The company expects capital spending for curriculum development to total approximately $8.3 million in fiscal 2025, with additional investments planned for future offerings[110]. - A new credit agreement provides up to $70.0 million in total credit, with $62.5 million available as a revolving line of credit, maturing on March 27, 2028[105]. - Net cash used for financing activities totaled $15.9 million, primarily for purchasing common stock and principal payments on financing obligations[113]. - The company had over $100 million in available liquidity as of February 28, 2025, consisting of $40.4 million in cash and a $62.5 million undrawn revolving credit facility[104]. - The effective interest rate on the 2023 Credit Agreement was 6.0% as of February 28, 2025, while the financing obligation had a fixed interest rate of 7.7%[129]. - The company anticipates that total cash paid for income taxes will approximate its total income tax provision on an annual basis going forward[103]. Tax and Regulatory Matters - The effective tax rate for the first two quarters of fiscal 2025 was 56.1%, significantly higher than the 14.4% rate in the same period of the previous year, due to near-break-even pre-tax income[102]. Market and Strategic Updates - The company reacquired license rights to sell content in France for $0.3 million in cash and $0.2 million of forgiven receivables, indicating plans for market expansion in France[112]. - No material changes reported from the previous information in the Annual Report[130]. - No utilization of foreign currency or interest rate derivative instruments during the quarter[130]. - No significant updates on user data or performance metrics provided in the call[130]. - No new product or technology developments mentioned in the conference[130]. - No market expansion or acquisition strategies discussed[130]. - No future outlook or performance guidance provided[130]. - No new strategies or initiatives highlighted during the call[130]. - No financial performance figures or percentages disclosed[130]. - No commentary on competitive positioning or market trends included[130]. - No updates on regulatory or compliance matters shared[130].

/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ TORONTO, April 07, 2025 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX: FC) is pleased to announce that it intends to redeem early all of its outstanding $25,000,000 aggregate principal amount of 5.40% convertible unsecured subordinated debentures due June 30, 2025 (the “Debentures”) on May 12, 2025 (the “Redemption Date”). The Debentures, which have a maturity date of June 30 ...

TORONTO, April 07, 2025 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (“MIC”) (TSX: FC), announces its monthly cash dividend of $0.078 per share payable to shareholders of record as follows: Record DateDividend PayableApril 30, 2025May 15, 2025May 30, 2025June 16, 2025June 30, 2025July 15, 2025   DIVIDEND AND SHARE PURCHASE PLAN The Corporation has in place a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan that is available to its shareholders. The DRIP allows participants to ha ...

Core Viewpoint - Franklin Covey reported a quarterly loss of $0.08 per share, which was better than the Zacks Consensus Estimate of a loss of $0.11, indicating a 27.27% earnings surprise [1] - The company has shown mixed performance in revenue and earnings estimates over the past four quarters, with a notable decline in stock price compared to the S&P 500 [3][4] Financial Performance - For the quarter ended February 2025, Franklin Covey posted revenues of $59.61 million, missing the Zacks Consensus Estimate by 4.96%, and down from $61.34 million a year ago [2] - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $77.19 million, and for the current fiscal year, it is $0.97 on revenues of $296.7 million [7] Stock Performance and Outlook - Franklin Covey shares have declined approximately 25.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.2% [3] - The company's Zacks Rank is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Consulting Services industry, to which Franklin Covey belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $59.6 million, slightly below the $61.3 million achieved in the same quarter last year, primarily due to government-related cancellations [44][60][65] - Adjusted EBITDA for the quarter was $2.1 million, landing at the top end of expectations despite disruptions [44][45] - The company expects revenue for the fiscal year to be between $275 million and $285 million, which is $7 million or 2.5% lower than last year [21][53] Business Line Data and Key Metrics Changes - The North America enterprise business is experiencing significant traction from a go-to-market transformation, with new logo sales exceeding plans by more than 50% in the second quarter [30][31] - Education revenue grew 3% in the second quarter and is up 7% year-to-date, with invoiced amounts in education up 13% [40][49] Market Data and Key Metrics Changes - The company is experiencing direct and indirect impacts from government actions and economic uncertainty, particularly in its government business, which constitutes roughly 6% of total revenue [12][13] - International revenues are expected to decline by as much as $4 million due to trade tensions and government actions [14][18] Company Strategy and Development Direction - The company is committed to its go-to-market transformation, which is expected to drive significant revenue growth, moving from single-digit to double-digit growth in the coming years [19][20] - The focus remains on enhancing client relationships and expanding service offerings, with a strong emphasis on multi-year contracts [26][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the turbulent external economic environment but remains confident in the business model and the importance of the services offered [8][9] - The company anticipates a one-year step back in performance due to government-related impacts but expects to return to previous adjusted EBITDA levels in the following year [23][88] Other Important Information - The company has over $100 million in liquidity and has invested approximately $105 million in share repurchases since 2022 [51][52] - The company is focused on maintaining its growth investments despite the current challenges [128] Q&A Session Summary Question: Impact of government actions on revenue - Management confirmed that the $17 million in government-related revenue is primarily from federal agencies, with expectations of not recovering this revenue in the current year [60][69] Question: Education revenue and funding sources - Management clarified that the Department of Education is not a direct client, and funding is expected to continue flowing from state governments despite potential federal cuts [74][76] Question: Guidance and future expectations - Management indicated that the guidance reflects a one-year step back, with expectations to update long-term revenue and EBITDA projections in November [85][88] Question: New logo sales and project starts - Management reported strong new logo sales and confirmed that project starts have not been delayed despite external uncertainties [108][110] Question: Adjusted EBITDA expectations for Q4 - Management discussed that Q4 EBITDA could be influenced by service delivery and education days, with potential for exceeding guidance if disruptions do not materialize [116][118]

Revenue Performance - Consolidated revenue for Q2 fiscal 2025 totaled $59.6 million, a decrease of 2.8% from $61.3 million in Q2 fiscal 2024[1][3] - Education Division revenue increased by 3% to $15.1 million compared to $14.7 million in the prior year[1][3] - Enterprise Division revenues decreased to $43.6 million, down from $45.6 million in the prior year, primarily due to a $1.1 million drop in International Direct Office revenues[3][6] - Revenue for the quarter ended February 28, 2025, was $59,612,000, a decrease of 2.8% compared to $61,336,000 for the same quarter in 2024[25] - The Enterprise Division generated $43,551,000 in revenue for the quarter, a decrease of 4.5% from $45,598,000 in the prior year[29] - The Education Division reported revenue of $15,065,000, an increase of 2.6% compared to $14,689,000 in the same quarter last year[29] Financial Metrics - Adjusted EBITDA for Q2 fiscal 2025 was $2.1 million, down from $7.4 million in the prior year, with constant currency Adjusted EBITDA at $2.6 million[7][10] - Adjusted EBITDA for the quarter was $2,060,000, with an adjusted EBITDA margin of 3.5%[27] - Gross profit for the quarter was $45,746,000, down from $46,851,000, reflecting a gross margin of 76.7%[25] - The company reported a net loss of $(1.1) million, or $(0.08) per share, compared to net income of $0.9 million, or $0.06 per diluted share, in the prior year[7][10] - Net loss for the quarter was $(1,076,000), compared to net income of $874,000 in the same quarter last year, resulting in a diluted loss per share of $(0.08)[25] Guidance and Expectations - The company expects fiscal 2025 revenue to be between $275 million and $285 million, reflecting a decrease of $7 million or 2.5% from the prior year[11][14] - The midpoint of the revised revenue guidance is $15 million or 5% lower than the low end of the original guidance[14] - The company anticipates a one-year setback due to government actions and expects Adjusted EBITDA to approach fiscal 2025 expectations in fiscal 2026[16] Cash Flow and Assets - Free cash flow for the two quarters ended February 28, 2025, was $7,801,000, down from $24,726,000 for the same period in 2024[33] - Total current assets decreased to $121,044,000 from $160,253,000 as of August 31, 2024[31] - Total liabilities decreased to $148,814,000 from $178,404,000 as of August 31, 2024[31] Stock and Restructuring - The company purchased 250,772 shares of common stock for $8.7 million during Q2 fiscal 2025, totaling 396,540 shares for $14.7 million in fiscal 2025[7][10] - The company reported a restructuring cost of $1,984,000 for the two quarters ended February 28, 2025[25] Deferred Revenue - Deferred subscription revenue rose by 10% to $94.4 million as of February 28, 2025, up from $86.1 million a year earlier[1][6]

Franklin Covey Co. FC will release its second-quarter financial results after the closing bell on Wednesday, April 2.Analysts expect the Salt Lake City, Utah-based company to report a quarterly loss at 6 cents per share, versus a year-ago profit of 19 cents per share. Franklin Covey projects quarterly revenue of $62.65 million, compared to $61.34 million a year earlier, according to data from Benzinga Pro.On Jan. 8, Franklin Covey posted downbeat results for the first quarter.Franklin Covey shares rose 1.4% ...

TORONTO, March 31, 2025 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX FC, FC.DB.I, FC.DB.J ,FC.DB. K and FC.DB.L) today released its financial statements for the three and twelve months ended December 31, 2024. NET INCOME For the three months ended December 31, 2024, net income increased by 9.9% to $9,164,362 as compared to $8,335,525 for the same period in 2023. Net income for the year ended December 31, 2024 increased by 3.1% to $35,228,450, as compared to $34,1 ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Franklin Covey (FC) reports results for the quarter ended February 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stoc ...