Financial Performance - For the three months ended March 31, 2025, net income increased by 16.4% to $9,973,265 compared to $8,569,784 for the same period in 2024 [2] - Basic weighted average earnings per share for the same period was $0.271, up from $0.248 per share reported for the three months ended March 31, 2024 [3] - The Corporation reported income in excess of distributions by approximately $1.4 million, or $0.04 per share [3] Investment Portfolio - The investment portfolio decreased by 3.4% to $631.9 million as of March 31, 2025, from $653.8 million as of December 31, 2024 [4][7] - New investment funding for the quarter was $70.2 million, compared to $47.7 million in the same period of 2024, while repayments were $92.2 million, up from $32.6 million in 2024 [4] - The average gross investment size was approximately $2.3 million, with 17 investments individually exceeding $7.5 million [4] Credit Losses and Fair Value Adjustments - The allowance for expected credit losses and fair value adjustment as of March 31, 2025, was $31.6 million, an increase from $29.6 million as of December 31, 2024 [5] - This allowance includes $25.1 million representing the estimated shortfall between investment balances and recoverable amounts, and $4.7 million for fair value adjustments [5] Dividend Information - The Corporation declared dividends on its common shares totaling $8,595,950 or $0.234 per share for the three months ended March 31, 2025, compared to $8,070,602 or $0.234 per share for the same period in 2024 [10] - A monthly cash dividend of $0.078 per common share has been declared, payable on specified dates [8] Shareholder Plans - The Corporation has a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends in additional shares at a discounted price [9] - Participants in the Share Purchase Plan can purchase additional shares with no commission costs, subject to certain limits [9]

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].

Core Viewpoint - Firm Capital Mortgage Investment Corporation plans to redeem all outstanding $25 million of its 5.40% convertible unsecured subordinated debentures early on May 12, 2025, prior to their maturity date of June 30, 2025 [1][2]. Group 1: Redemption Details - The redemption price will be $1,000 for each $1,000 principal amount of debentures, including all accrued and unpaid interest up to the redemption date [2]. - The corporation will utilize cash on hand to pay the redemption price for the debentures [2]. - Formal notice of redemption will be delivered to debenture holders through the Debenture Trustee, Computershare Trust Company of Canada [3]. Group 2: 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 [4]. - The corporation's investment objective focuses on preserving shareholders' equity while providing a stable stream of monthly dividends from investments [4]. - 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 [4].

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]

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 ...

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]

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]