Financial Data and Key Metrics Changes - In Q1 2021, revenue was $48.3 million, driven by strong performance in All Access Pass sales, with gross margins increasing by 359 basis points to 75.3% compared to the previous year [5][30][26] - Adjusted EBITDA for the quarter was $3.7 million, exceeding expectations of $2 million to $2.5 million, and net cash provided by operating activities increased by 60% to $10.9 million [5][23][25] - The company ended the quarter with approximately $49 million in liquidity, up from $42 million at the end of the previous fiscal year [5][25] Business Line Data and Key Metrics Changes - All Access Pass subscription sales grew 16% in Q1 to $17 million, with invoiced amounts increasing by 55% [12][27] - The Education Division, accounting for nearly 20% of total sales, saw high retention rates for Leader in Me subscriptions, adding over 300 new schools during the pandemic [9][22] - Add-on services bookings returned to pre-pandemic levels, with actual delivered revenue for these services increasing to $9 million [29][17] Market Data and Key Metrics Changes - International sales improved significantly, with Q1 sales reaching $9.9 million, a 41% increase from the previous quarter [20][19] - Sales in China and Japan showed strong recovery, with sequential sales increasing 70% from the previous quarter [19][20] - The company reported that 87% of clients have shifted to live online delivery of services, reducing susceptibility to future cancellations [18] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA of $20 million to $22 million in FY 2021, reflecting a 50% increase from the previous year [34][66] - Strategic investments are being made in areas where the company has competitive advantages, particularly in enhancing the All Access Pass offerings [43][48] - The company plans to continue expanding its direct sales force and international licensee network to penetrate local markets more effectively [51][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the All Access Pass economic engine and its ability to drive future growth [37][38] - The company anticipates continued strong performance in North America and expects international operations to strengthen further [68][70] - Management acknowledged the challenges posed by the pandemic but noted that the business model has proven resilient and valuable to clients [65][66] Other Important Information - The total balance of billed and unbilled deferred revenue increased to $97.4 million, providing significant stability and visibility into future performance [32][33] - The company expects to achieve high single-digit revenue growth annually, targeting approximately $20 million in revenue growth each year [35][73] Q&A Session Summary Question: What were the key drivers of the sequential strength in international sales this quarter? - The main driver was increased stability in China and Japan, where teams have successfully filled the pipelines again as conditions improved [75][77] Question: How does the company expect international sales to perform in the upcoming quarters? - While Q2 is typically the smallest quarter due to holidays, the company expects to see continued sequential improvements year-over-year [77]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2020 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file no. 1-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) 2200 West Parkway Boulevard ...

Financial Performance - Consolidated net sales for the fiscal year ended August 31, 2020, totaled $198.5 million[15] - Net sales for fiscal 2020 were $198,456,000, a decrease of 12% from $225,356,000 in fiscal 2019[150] - Gross profit for fiscal 2020 was $145,370,000, down from $159,314,000 in fiscal 2019, reflecting a decline of approximately 8.7%[150] - Net loss for fiscal 2020 was $(9,435,000), compared to a loss of $(1,023,000) in fiscal 2019, indicating a significant increase in losses[150] - Cash flows from operating activities decreased to $27,563,000 in fiscal 2020, compared to $30,452,000 in fiscal 2019, a decline of about 6.2%[150] - Shareholders' equity decreased to $59,453,000 in fiscal 2020 from $82,014,000 in fiscal 2019, reflecting a decline of approximately 27.5%[150] - The effective income tax rate for fiscal 2020 was approximately 1,284%, significantly higher than 273% in fiscal 2019, primarily due to an increase in the valuation allowance against deferred income tax assets[178] - The company incurred $1.6 million in severance costs related to restructuring activities during the fourth quarter of fiscal 2020[203] Impact of COVID-19 - COVID-19 adversely impacted financial results in the third and fourth quarters of fiscal 2020, leading to decreased sales due to office and school closures[25] - The company accelerated digital engagement with clients during the pandemic, leveraging the AAP and Leader in Me subscription services for remote access to content[26] - The COVID-19 pandemic significantly impacted financial results in the third and fourth quarters, leading to postponed or canceled training and coaching events[166] Business Operations and Strategy - The company transitioned operations in Germany, Switzerland, and Austria from independent licensees to directly owned offices, aiming for significant business growth in these regions[22] - The company plans to expand its global reach by increasing the number of client partners, having opened direct offices in Germany, Switzerland, and Austria[186] - The company added 320 new schools to the Leader in Me program, with nearly 2,200 schools renewing their memberships, surpassing fiscal 2019 numbers[171] - New offerings based on bestselling books, including "Multipliers" and "Unconscious Bias," were developed and released during fiscal 2020, with plans for further releases in fiscal 2021[187] Competition and Market Position - The U.S. training industry is estimated to be $82.5 billion, with Franklin Covey positioned as a significant competitor in the performance skills and education market[34] - The training and consulting services industry is intensely competitive, with competitors continually introducing new programs that may impact the company's ability to sell its offerings[67] - The company faces intense competition for skilled personnel, which is critical for its growth and ability to deliver services effectively[80] Intellectual Property and Compliance - The company holds over 640 trademarks and 220 registered copyrights, emphasizing the importance of intellectual property to its business[38] - The company relies on a combination of confidentiality policies, nondisclosure agreements, and copyright and trademark laws to protect its intellectual property, which is crucial for its financial success[74] - Compliance with evolving data protection laws, such as GDPR and CCPA, may impose significant costs and operational changes[94] - The company is subject to numerous and sometimes conflicting regulations across different countries, which could result in fines and damage to its reputation if violated[121] Employee and Talent Management - Over 71% of new hires from June 1, 2019, to May 31, 2020, were women, reflecting the company's commitment to diversity and inclusion[42] - The employee turnover rate in the United States and Canada was 10.7% during the period from June 1, 2019, to May 31, 2020, which is considered reasonable for the industry[47] - The company offers 100% salary continuance for up to 12 weeks in a rolling 12-month period for qualifying medical leaves, along with various employee benefits[48] - The Organization and Compensation Committee has made Talent Stewardship a standing agenda item to improve practices in attracting, developing, and retaining top talent[50] Financial Risks and Future Outlook - Future capital needs may necessitate raising additional funds through debt or equity offerings, which could dilute current shareholders' ownership[107] - The company may struggle to meet analyst expectations, which could negatively impact its stock price and lead to potential securities litigation[110] - The company's stock price has historically experienced significant volatility due to fluctuations in quarterly results, market conditions, and currency exchange rates[114] - Recent international trade developments, including proposed tariffs by the United States, may negatively impact global economic conditions and the company's financial results[116] - The company operates in multiple countries, exposing it to complex management, legal, and economic risks, including currency exchange rate fluctuations and compliance with local laws[117] - The company has significant intangible assets and goodwill that may be impaired if cash flows from related activities decline[124] - The company did not pay or declare dividends during the fiscal years ended August 31, 2020, or 2019, and plans to retain funds for liabilities and growth opportunities[135]

Financial Data and Key Metrics Changes - Revenue for Q4 2020 was $49.9 million, exceeding expectations, with adjusted EBITDA of $8.9 million compared to an expectation of $4 million, bringing full-year adjusted EBITDA to $14.3 million, surpassing the expected $9.4 million [8][29][70] - Gross margins increased to 77.3%, up 437 basis points from 72.9% in Q4 2019, and SG&A expenses decreased to $28.9 million, down from $34.1 million in the previous year [34][35] Business Line Data and Key Metrics Changes - All Access Pass subscription sales grew 11% in Q4 and 17% for the full fiscal year, with a revenue retention rate exceeding 90% [14][20] - The Education Division, which accounts for approximately 22% of total sales, saw 2,200 existing Leader in Me schools renew their subscriptions, with 320 new schools added during the fiscal year [25][27] Market Data and Key Metrics Changes - North American operations accounted for 70% of total enterprise sales, with All Access Pass and related sales making up approximately 80% of that revenue [9][41] - International operations improved, with sequential sales increasing 70% to $7 million in Q4 compared to $4.1 million in Q3 [24][22] Company Strategy and Development Direction - The company aims for high single-digit revenue growth, targeting adjusted EBITDA of $20 million to $22 million for FY 2021, reflecting a 50% increase from FY 2020 [70][76] - The focus remains on strengthening the All Access Pass subscription model, which has proven resilient during the pandemic, and expanding its market share internationally [44][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and durability of the All Access Pass subscription, noting that it has driven significant revenue growth and improved gross margins [41][43] - The company anticipates continued growth in both North American and international markets, with expectations for strong retention rates in the Education Division despite budget constraints [72][73] Other Important Information - The total balance of billed and unbilled deferred revenue increased to over $100 million, reflecting a growth of 13.7% compared to the previous year [37] - The company ended the fiscal year with approximately $42 million in liquidity, consisting of $27 million in cash and $15 million undrawn under its revolving credit facility [31] Q&A Session Summary Question: Recognition of postponed training engagements - Management indicated that it is challenging to track the exact recognition of postponed engagements but believes that around 70% of those will ultimately be realized over time [79][80] Question: Cost structure and margin sustainability - The majority of cost reductions are expected to be permanent, with some variable costs returning as revenue increases, but overall, a significant portion of the savings will remain [82][83] Question: Transition to online delivery for training - The transition to online delivery has been well-received, with high Net Promoter Scores, and it is anticipated that this model will become a permanent part of the business moving forward [88][90]

Investor Update Fourth Quarter / Fiscal Year-End 2020 1 Forward-looking Statements / Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties including, but not limited to: The ability of the Company to stabilize and grow revenues; The acceptance of, and renewal rates for our subscription offerings, in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2020 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------|-----------------------------------| | | | | For the transition period from | __________ to __________ | | | Commission file no. 1-111 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2020 was $37.1 million, down $18.9 million from $56 million in Q3 2019, primarily due to the need to reschedule coaching and training engagements [14][20] - Adjusted EBITDA declined by $6.7 million in Q3, reflecting a $12.8 million decline in gross profit, which was partially offset by a decline in operating SG&A [19][20] - Cash flow from operating activities remained strong at $18.7 million during the quarter [19] Business Line Data and Key Metrics Changes - Subscription and related revenue grew by 18% in Q3, with All Access Pass revenue increasing by 19% and Leader in Me revenue growing by 14% [52][54] - The gross margin increased by 146 basis points to 72.3% in Q3, reflecting a higher share of revenue from subscription sales [17] Market Data and Key Metrics Changes - The majority of revenue decline occurred in international operations, particularly in China and Japan, where strict stay-at-home orders were in place [15][41] - U.S. and Canadian operations accounted for only $1.4 million of reduced contribution, highlighting the strength of the subscription model in these markets [41] Company Strategy and Development Direction - The company expects to resume high EBITDA growth and cash flow as it moves beyond the current challenges, leveraging its strong operational and strategic foundations [7][27] - The shift to Live-Online delivery has been a significant competitive advantage, allowing the company to adapt quickly to changing market conditions [30][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, noting that the booking pace for coaching and training services has regained levels seen in the previous year [23][42] - The company anticipates that the subscription business will continue to show resilience, with strong revenue retention rates despite the pandemic [57][60] Other Important Information - The company has developed strong Live-Online delivery capabilities over the past decade, which has allowed it to pivot effectively during the pandemic [28][80] - The All Access Pass subscription business is expected to be a key driver of future growth, with a significant portion of revenue being deferred to future periods [48][95] Q&A Session Summary Question: Clarification on revenue tied to on-site training - Management confirmed that approximately $20 million of previously estimated $30 million in revenue tied to on-site training was postponed, with expectations that about 70% of this will ultimately be recognized [106][109] Question: Impact of current environment on client preferences for virtual vs. on-site content - Management indicated that while some clients may return to on-site preferences, a significant shift towards virtual delivery is expected to remain, as clients have found Live-Online delivery effective [113][115]

Investor Update Third Quarter Fiscal 2020 1 Forward-looking Statements / Non-GAAP Forward-looking Statements / Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties including, but not limited to: The ability of the Company to stabilize and grow revenues; The acceptance of, and renewal rates for the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 84119-2099 (Zip Code) FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2020 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file no. 1-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) Utah ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2019 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file no. 1-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) Utah (State of incorporatio ...