Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. FranklinCovey* Investor Update Second Quarter Fiscal Year 2022 lanita Anders © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 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 re based upon management's current expectations and ...

Financial Data and Key Metrics Changes - Total revenue in Q1 2022 grew 27% or $12.9 million to $61.3 million, with a 12-month revenue growth of 26% or $48.9 million to $237.1 million [6][11] - Adjusted EBITDA for Q1 increased to $9.9 million, a rise of $6.2 million or 167% compared to $3.7 million in Q1 FY21 [13] - Gross margin percentage increased 240 basis points to 77.7% from 75.3% in the previous year [12] Business Line Data and Key Metrics Changes - Subscription revenue grew 31% or $6.7 million to $28.4 million in Q1, with a 12-month growth of 22% or $19.1 million to $106.2 million [7] - The Enterprise Division revenue grew 22% or $8.8 million to $48.1 million, driven by strong subscription sales [11] - The Education Division saw a revenue increase of 56% or $4.2 million to $11.7 million in Q1 [21] Market Data and Key Metrics Changes - Revenue in North America for the Enterprise Division grew 22% or $6 million to $33.4 million in Q1 [17] - International direct office revenue grew 24% in Q1 compared to the previous year, despite ongoing pandemic challenges in certain regions [18] - The number of Leader in Me schools increased to 706, up from 560 in the previous year [20] Company Strategy and Development Direction - The company aims to transition its entire business model to be increasingly subscription-based, expecting subscription services to account for approximately 90% of sales in North America over the next three years [30][32] - The focus on expanding the All Access Pass and related subscription services is a key strategic initiative [29] - The company is investing in technology and content to enhance its offerings, including the Strive platform, which aims to improve customer engagement and service delivery [49][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the All Access Pass and related sales, anticipating continued growth in revenue and adjusted EBITDA [53][55] - The company expects to generate adjusted EBITDA between $34 million and $36 million for FY22, reflecting a 25% increase compared to FY21 [53] - Management noted that the pandemic has accelerated certain trends, leading to strong performance in both the Enterprise and Education Divisions [17][50] Other Important Information - The company ended the quarter with $66 million in total liquidity, consisting of $51 million in cash and $15 million in undrawn credit [15] - The balance of deferred subscription revenue grew 19% to $67.8 million, indicating strong future revenue visibility [23] Q&A Session Summary Question: What were the big surprises in Q1 performance? - Management noted that the number of education coaching sessions delivered exceeded expectations, positively impacting margins [61] Question: Why was guidance not updated higher despite strong Q1 results? - Management decided to wait until the end of Q2 to reassess guidance for better visibility into the fourth quarter [64][65] Question: What investments are being made in marketing efforts? - The company plans to add net 30 client partners this year and is undergoing a branding project to enhance market presence [67][69] Question: Update on the Strive platform launch? - The Strive platform is on track, with Phase 2 currently underway, aiming for a full launch later this year [71] Question: What is the growth split between new logos and pass expansion? - New logos contributed significantly to growth, with a 23% increase in new logos in the Enterprise Division [78]

Financial Performance - Consolidated sales for the first quarter of fiscal 2022 increased 27% to $61.3 million compared to $48.3 million in fiscal 2021[57] - All Access Pass and related sales increased 27% to $33.1 million in the first quarter of fiscal 2022[57] - Education Division revenues grew 56% due to increased Leader in Me subscription sales and related services[59] - Gross profit for the first quarter of fiscal 2022 was $47.6 million, with a gross margin improvement to 77.7% from 75.3% in the prior year[64] - Net income for the first quarter of fiscal 2022 was $3.8 million, or $0.27 per diluted share, compared to a net loss of $(0.9) million in the prior year[67] - Adjusted EBITDA for the first quarter increased 167% to $9.9 million compared to $3.7 million in the prior year[67] - Deferred subscription revenue increased 19% to $67.8 million compared to the prior year[63] - Direct Office segment revenue increased 23% to $45.1 million, driven by strong performance in the U.S. and Canada[69] - International licensee revenues increased 15% due to improving economic conditions in many licensee countries[58] Cash Flow and Expenditures - Cash flows from operating activities were strong at $10.2 million for the quarter, with $51.3 million in cash and no borrowings[68] - Cash and cash equivalents as of November 30, 2021, totaled $51.3 million, with no borrowings on the $15 million revolving credit facility[83] - Cash provided by operating activities was $10.2 million, slightly down from $10.9 million in the first quarter of fiscal 2021[86] - Cash used for investing activities was $0.8 million, primarily for property and equipment purchases[87] - The company expects capital expenditures for fiscal 2022 to total approximately $4.8 million, including $5 million for curriculum development[88][89] Education Division Performance - Education Division sales for the quarter ended November 30, 2021, were $11.7 million, a 56% increase from $7.5 million in the same quarter of the previous year[76] - Gross profit for the Education Division increased to $7.86 million, representing a gross margin of 67.2%, up from 53.2% in the prior year[76][78] - SG&A expenses rose to $7.63 million, accounting for 65.2% of sales, compared to 83.6% in the previous year[76][79] - Adjusted EBITDA improved to $235,000, a significant recovery from a loss of $2.29 million in the same quarter last year[76] Tax and Interest Rates - The effective income tax rate for the quarter was 25.5%, with a provision of $1.3 million compared to $0.2 million in the prior year[82] - The effective interest rate on term loans and the line of credit facility was 2.4% as of November 30, 2021[106] - A 1% increase in the effective interest rate on term loans would result in approximately $0.1 million of additional interest expense over the next 12 months[106] - The financing obligation has a fixed interest rate of 7.7%[106] Market and Operational Risks - The market price of the common stock has been volatile, influenced by quarter-to-quarter variations in revenues and earnings[104] - The company faces risks related to competition, consumer acceptance of new products, and potential cybersecurity threats[103] - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially[105] - The company has long-term obligations primarily consisting of term loans, a long-term lease agreement, and contingent consideration from acquisitions[106] - The company anticipates potential lingering effects from the COVID-19 pandemic on its business operations[101] - The company expects to maintain adequate capital for operations for at least the upcoming 12 months[101] Program Utilization - The Leader in Me program is currently utilized in nearly 3,000 schools across the United States and Canada, indicating strong market penetration[77]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ Form 10-K __________________ þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED AUGUST 31, 2021 OR ¨ 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. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | |-------------------------- ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for fiscal 2021 increased to $28 million, up 96% from $14.3 million in fiscal 2020 and up 36% compared to fiscal 2019's $20.6 million [6][17] - Total revenue grew 40.7% or $20 million in the fourth quarter and grew 13% or $25.7 million for the full fiscal year 2021 [9][13] - Gross margin for the year increased 388 basis points to 77.1% from 73.3% in fiscal 2020 [13][15] - Cash flow from operating activities for the year increased 68% to $46.2 million, up from $27.6 million in fiscal 2020 [19] Business Line Data and Key Metrics Changes - Total subscription revenue grew 33% or $7.2 million in the fourth quarter and 15% or $13 million for the full fiscal year [9][28] - Subscription and subscription services sales grew 21% to $157.2 million in fiscal 2021, with fourth quarter growth of 52% to $52.1 million [28][29] - Leader in Me subscription and subscription services sales grew 14% or $5.4 million to $44.7 million compared with $39.2 million in fiscal 2020 [33] Market Data and Key Metrics Changes - Revenue in North America grew $16.3 million or 16% from $103.3 million in fiscal 2020 to $119.6 million in fiscal 2021 [23] - International revenue grew 54% in the fourth quarter compared to the fourth quarter of fiscal 2020, although still below fiscal 2019 levels [24] Company Strategy and Development Direction - The company expects subscription and subscription services to account for greater than 90% of sales within three years [11][38] - Significant investments are being made in hiring additional salespeople and expanding the client partner network to drive growth [43][44] - The company aims to achieve a SaaS-like valuation as it transitions to a subscription-based model [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the All Access Pass and related sales, expecting continued strong growth and high revenue retention rates [57][58] - The company anticipates achieving adjusted EBITDA of between $34 million and $36 million for FY2022, reflecting a 25% increase compared to FY2021 [55][60] Other Important Information - The company ended the fourth quarter with $62.4 million in total liquidity, comprised of $47.4 million in cash and no net debt [20] - The balance of deferred subscription revenue grew 27% to $77 million at year-end compared to $60.6 million at year-end fiscal 2020 [30] Q&A Session Summary Question: What drove the strong performance in the Education segment? - Management indicated that the strong performance was due to a focus on selling to districts rather than individual schools, resulting in high retention rates [68] Question: Is the goal of adding 30 client partners still achievable in the current labor environment? - Management confirmed the goal remains, with a focus on leveraging existing client partners who are still ramping up to offset any potential hiring challenges [70][72] Question: What does the delivery model look like post-COVID? - Management noted that the delivery remains predominantly live online, with expectations that this trend will continue due to its effectiveness in driving behavior change [78][80] Question: What is the status of the Strive integration? - Management reported that the integration of Strive is on track for a January launch, with a roadmap for additional functionality throughout the fiscal year [84] Question: How is lead generation evolving in the digital space? - Management highlighted that online events have become a significant source of lead generation, potentially surpassing previous in-person events [86]

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, 2021 [ ] 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 8411 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $58.7 million, a 58% increase compared to $37.1 million in Q3 2020, and higher than the $56 million in Q3 2019 [10][11] - Gross margin percentage increased by 587 basis points to 78.2% compared to 72.3% in Q3 2020 [10][16] - Adjusted EBITDA rose to $8.6 million, an increase of $12.2 million from a loss of $3.6 million in Q3 2020 [18][42] - Net cash from operating activities increased 65% to $30.9 million compared to $18.7 million in the same period last year [21][45] - The company ended the quarter with $51 million in liquidity, up from $37 million at the start of the pandemic [22][46] Business Line Data and Key Metrics Changes - All Access Pass subscription sales increased 17% to $19.2 million compared to $16.4 million in Q3 2020 [12][25] - Total subscription and subscription services sales grew 43% to $29.7 million compared to $20.8 million in Q3 2020 [13] - Deferred subscription revenue grew 26% to $55.3 million, up from $43.9 million in Q3 2020 [14] - Education division revenue grew 44.8% compared to Q3 2020, with a gross margin improvement from 57.3% to 68.7% [38][39] Market Data and Key Metrics Changes - International sales were down only 13% compared to Q3 2019, showing recovery from pandemic impacts [34] - The number of Leader in Me schools increased to 1,921, up from 1,681 in the same period last year [36] Company Strategy and Development Direction - The company aims for subscription and subscription services to account for the majority of sales within three to four years [58][61] - The focus is on expanding All Access Pass subscriptions in both North America and international markets, with expectations of significant growth in these areas [62][64] - Recent acquisitions, such as Strive, are expected to enhance the company's technology platform and client engagement capabilities [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of All Access Pass subscriptions and the overall business model, despite pandemic-related challenges [58][60] - The adjusted EBITDA guidance for FY 2021 has been raised to between $24.5 million and $26.5 million, reflecting strong performance and expectations for Q4 [79][80] - Future projections for adjusted EBITDA are optimistic, with expectations of approximately $30 million in FY 2022 and $40 million in FY 2023 [84] Other Important Information - The company announced key leadership promotions, with Paul Walker becoming the new CEO effective September 1 [92][96] - The executive team is expected to continue driving growth and strategic initiatives, with a focus on enhancing client partner hiring and expanding market reach [98][99] Q&A Session Summary Question: Guidance and Increased Spending - Inquiry about the nature of increased spending initiatives and whether they are one-time or multi-quarter investments [101] Response: - Management indicated that spending includes investments in client partners and marketing initiatives, with some costs being one-time expenditures [103]

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 February 28, 2021 [ ] 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 ...

Investor Update Second Quarter ~ Fiscal Year 2021 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, includ ...

Franklin Covey Co. (NYSE:FC) Q2 2021 Results Earnings Conference Call April 1, 2021 5:00 PM ET Company Participants Derek Hatch - Corporate Controller Bob Whitman - Chairman and CEO Steve Young - Chief Financial Officer Paul Walker - President and COO Sean Merrill Covey - President, Franklin Covey Education Jen Colosimo - President, Enterprise Division Conference Call Participants Andrew Nicholas - William Blair Marco Rodriguez - Stonegate Capital Jeff Martin - ROTH Capital Markets Operator Welcome to the Q ...