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 ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___ TO ___ Franklin Covey Co. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED AUGUST 31, 2019 OR (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Utah 1-11107 87-0401551 (Com ...

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, 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 incorporation) 87 ...