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]

Franklin Covey Company (FC) Q2 2025 Earnings Conference Call April 02, 2025 05:00 PM ET Company Participants Conference Call Operator - OperatorDerek Hatch - Corporate ControllerPaul Walker - Chief Executive Officer at PrestonSteve - Chief Financial Officer Conference Call Participants Alex Paris - Analyst at Barrington ResearchJeff Martin - Analyst at Roth Capital MarketsDave Storms - Analyst at StoneGateNihal Chokshi - Analyst at Northland Capital Markets Conference Call Operator you for standing by. Welc ...

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]

Financial Results - Franklin Covey Co. is set to release its second-quarter financial results on April 2, with analysts expecting a quarterly loss of 6 cents per share compared to a profit of 19 cents per share a year ago [1] - The company projects quarterly revenue of $62.65 million, an increase from $61.34 million a year earlier [1] Stock Performance - Franklin Covey shares rose 1.4% to close at $28.00 on Tuesday [2] Analyst Ratings - Barrington Research analyst Alexander Paris maintained an Outperform rating with a price target of $45, with an accuracy rate of 82% [6] - Roth MKM analyst Jeff Martin reiterated a Buy rating with a price target of $50, holding an accuracy rate of 70% [6]

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 ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Franklin Covey despite higher revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - Franklin Covey is expected to report a quarterly loss of $0.11 per share, reflecting a significant year-over-year decline of 283.3% [3]. - Revenue projections stand at $62.72 million, indicating a 2.3% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 6.02% higher in the last 30 days, suggesting a positive reassessment by analysts [4]. - A positive Earnings ESP of +20.59% indicates that analysts have recently become more optimistic about the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the former being more recent and potentially more accurate [6]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, Franklin Covey was expected to post earnings of $0.22 per share but only achieved $0.09, resulting in a surprise of -59.09% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While Franklin Covey is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Group 1 - Franklin Covey (NYSE: FC) continues to deliver strong financial results, yet the market does not accurately reflect its economic potential [1] - There is a justified reduction in internal rate of return (IRR) due to a temporary decrease in EBITDA, but this is counterbalanced by long-term incremental growth prospects [1]

Revenue and Income - Consolidated revenue for the quarter ended November 30, 2024, increased 1% to $69.1 million compared to $68.4 million in the prior year, driven by an 11% growth in the Education Division [56]. - Net income for the first quarter of fiscal 2025 was $1.2 million, or $0.09 per diluted share, down from $4.9 million, or $0.36 per diluted share, in the prior year [59]. - Adjusted EBITDA for the quarter was $7.7 million, down from $11.0 million in the first quarter of fiscal 2024; in constant currency, it was $8.1 million [59]. - Education Division revenues increased 11% to $16.5 million, attributed to a new state-wide initiative and increased membership subscription revenues [59]. - Adjusted EBITDA for the Education Division improved to $266,000, up from $110,000 in the prior year, reflecting a significant increase in profitability [72]. Expenses and Cash Flow - Operating expenses increased by $4.3 million, primarily due to a $3.0 million rise in SG&A expenses related to new personnel and restructuring efforts [59]. - Cash flows from operating activities totaled $14.1 million, down from $17.4 million in the prior year, mainly due to reduced operating income [65]. - Cash provided by operating activities was $14.1 million for the quarter ended November 30, 2024, down from $17.4 million in the same quarter of the prior year [82]. Liquidity and Capital Expenditures - At November 30, 2024, the company had over $115 million in available liquidity, consisting of $53.3 million in cash and a $62.5 million undrawn line of credit [65]. - Total liquidity at November 30, 2024, was over $115 million, consisting of $53.3 million in cash and a $62.5 million undrawn revolving credit facility [78]. - Capital expenditures for curriculum development are expected to total $9.3 million in fiscal 2025, with $1.4 million already spent in the first quarter [85]. International Performance - International Direct Office revenues decreased by 18% in China and 16% in Japan, partially offset by a 20% increase in Australia [66]. - International licensee revenue decreased by 7%, or $0.2 million, to $3.203 million for the quarter ended November 30, 2024, compared to $3.423 million in the prior year [69]. - SG&A expenses for the International Licensees segment rose to $1.220 million, representing 38.1% of sales, compared to $1.165 million or 34.0% of sales in the prior year [69]. - Gross profit margin for the International Licensees segment was 89.4%, slightly down from 90.0% in the prior year, indicating stable profitability despite revenue decline [71]. Tax and Interest Rates - The effective tax rate for the quarter ended November 30, 2024, was 25.6%, significantly higher than the 8.1% rate in the prior year, primarily due to reduced tax benefits related to stock-based compensation [76]. - The effective interest rate on the 2023 Credit Agreement was 6.2% as of November 30, 2024, with no outstanding liability on this agreement at that date [104]. - The financing obligation related to the corporate headquarters facility has a fixed interest rate of 7.7% [104]. Strategic Moves and Future Outlook - The company reacquired license rights to France for $0.3 million in cash and $0.2 million of forgiven receivables, indicating a strategic move to expand operations in that market [87]. - The company anticipates future revenue levels and financial results, including expected increases in add-on subscription services revenue [99]. - The company expects to maintain adequate capital for operations for at least the upcoming 12 months [99]. - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially [102]. Risks and Market Conditions - The company faces risks including cybersecurity risks, inflation, and competition that may impact future performance [100]. - The market price of the company's common stock has been volatile, influenced by quarter-to-quarter variations in revenues and earnings [101]. - There have been no significant changes to previously disclosed estimates or critical accounting policies [95]. - The company did not utilize any foreign currency or interest rate derivative instruments during the quarter ended November 30, 2024 [105].

Core Points - Firm Capital Mortgage Investment Corporation has declared a special year-end dividend of $0.056 per common share, in addition to the regular December 2024 dividend, totaling $0.134 per common share, payable on January 15, 2025 [1][2] - The special year-end dividend is a result of the Corporation's annual income in 2024 exceeding regular dividends, ensuring the distribution of all taxable income [2] - Total dividends paid to common shareholders in 2024 amounted to $0.992 per common share, reflecting a slight increase from the previous year [3] Dividend Information - Monthly cash dividends of $0.078 per common share have been declared, with payment dates set for January 31, February 28, and March 31, 2025 [4] - The Corporation's investment objective focuses on preserving shareholders' equity while providing a stable stream of monthly dividends from investments [5] Company Overview - Firm Capital Mortgage Investment Corporation operates as a non-bank lender, providing residential and commercial short-term bridge and conventional real estate financing [5] - The Corporation is classified as a Mortgage Investment Corporation (MIC) under the Income Tax Act (Canada), allowing it to avoid taxation on income if distributed to shareholders as dividends within 90 days after year-end [5]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - The company's forward-looking statements include expectations around revenue growth, acceptance and renewal rates for subscription offerings like the All Access Pass and The Leader in Me memberships, and the ability to hire productive sales and client-facing professionals [4] - The company acknowledges risks and uncertainties related to general economic conditions and competition in its targeted marketplace [4] Management Commentary on Operating Environment and Future Outlook - Management highlights the importance of growing revenues and the acceptance of subscription offerings as key factors for future success [4] - The ability to hire productive sales and client-facing professionals is also noted as a critical element for the company's growth [4] Other Important Information - The presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties [4] Q&A Session Summary - No Q&A session content provided in the documents [1][2][3][4]