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]

Financial Performance - Q1 Fiscal Year 2025 revenue reached $69.1 million, a 1% increase compared to $68.4 million in Q1 Fiscal Year 2024[12, 25] - Last Twelve Months (LTM) revenue for Q1 Fiscal Year 2025 was $287.9 million, a 3% increase from $279.6 million in Q1 Fiscal Year 2024[12, 25] - Adjusted EBITDA for Q1 Fiscal Year 2025 was $7.7 million, a 30% decrease compared to $11 million in Q1 Fiscal Year 2024[12, 25] - LTM Adjusted EBITDA for Q1 Fiscal Year 2025 was $52 million, a 9.3% increase from $47.6 million in Q1 Fiscal Year 2024[12, 25] - Free Cash Flow for Q1 Fiscal Year 2025 was $11.4 million, compared to $13.7 million in Q1 Fiscal Year 2024[12] Segment Performance - Enterprise Division revenue for Q1 Fiscal Year 2025 was $51.6 million, a 1.7% decrease compared to $52.4 million in Q1 Fiscal Year 2024[32, 40] - Education Division revenue for Q1 Fiscal Year 2025 was $16.5 million, a 10.6% increase compared to $14.9 million in Q1 Fiscal Year 2024[32, 44] - Enterprise Division North America revenue for Q1 Fiscal Year 2025 was $40.1 million, slightly down from $40.3 million in Q1 Fiscal Year 2024[15, 35] - Enterprise Division International Direct revenue for Q1 Fiscal Year 2025 was $8.2 million, compared to $8.7 million in Q1 Fiscal Year 2024[16, 35] - Enterprise Division International Licensee revenue for Q1 Fiscal Year 2025 was $3.2 million, compared to $3.4 million in Q1 Fiscal Year 2024[16, 35]

Core Viewpoint - Franklin Covey reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.22 per share, representing a significant earnings surprise of -59.09% compared to $0.36 per share a year ago [1][2] Financial Performance - The company posted revenues of $69.09 million for the quarter ended November 2024, which was 1.36% below the Zacks Consensus Estimate and slightly above the year-ago revenues of $68.4 million [2] - Over the last four quarters, Franklin Covey has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Franklin Covey shares have declined approximately 6.2% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of the recent earnings report and the potential changes in earnings expectations for upcoming quarters [4][7] - The current consensus EPS estimate for the next quarter is $0.08 on revenues of $63.63 million, and for the current fiscal year, it is $1.36 on revenues of $297.34 million [7] Industry Context - The Consulting Services industry, to which Franklin Covey belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Franklin Covey's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Revenue Performance - Consolidated revenue for Q1 fiscal 2025 increased by 1% to $69.1 million compared to $68.4 million in Q1 fiscal 2024[3] - Education Division revenue grew by 11% to $16.5 million, up from $14.9 million in the prior year, driven by increased sales of classroom and training materials[4] - Enterprise Division revenue decreased to $51.6 million from $52.4 million, primarily due to reduced revenue from offices in China and Japan[4] - Total subscription and subscription services revenue reached $55.8 million, a 2% increase from $54.8 million in Q1 fiscal 2024[7] - Net revenue for the quarter ended November 30, 2024, was $69,086,000, a slight increase from $68,399,000 in the same quarter of 2023, representing a growth of 1.0%[20] - Revenue from the Enterprise Division totaled $51,579,000, a decrease from $52,446,000 in the prior year, representing a decline of 1.6%[24] - The Education Division reported revenue of $16,464,000, an increase from $14,891,000, reflecting a growth of 10.6%[24] Financial Metrics - Adjusted EBITDA for Q1 fiscal 2025 was $7.7 million, down from $11.0 million in the prior year, with a constant currency figure of $8.1 million[6] - Adjusted EBITDA for the quarter was $7,674,000, down from $10,969,000 in the prior year, reflecting a decrease of 30.9%[22] - The Adjusted EBITDA margin was 11.1% for the quarter, down from 16.0% in the previous year[22] - Net income decreased to $1,181,000 for the quarter, compared to $4,851,000 in the same quarter last year, a decline of 75.7%[20] Cash Flow and Liabilities - Cash flows from operating activities totaled $14.1 million, down from $17.4 million in fiscal 2024, while free cash flow decreased to $11.4 million from $13.7 million[7] - Free cash flow for the quarter was $11,391,000, down from $13,698,000 in the same quarter of 2023, a decrease of 16.9%[30] - Cash and cash equivalents increased to $53,294,000 from $48,663,000 at the end of the previous quarter[26] - Total current liabilities decreased to $143,538,000 from $162,453,000, a reduction of 11.6%[26] Future Guidance - The company affirms fiscal 2025 revenue guidance in the range of $295 million to $305 million in constant currency[10] - The company expects Adjusted EBITDA for fiscal 2025 to be between $40 million and $44 million in constant currency, reflecting anticipated revenue growth[10] Operational Changes - The new North America sales force structure is now in place, with sales hiring activities ahead of plan, aimed at accelerating future sales growth[1] - The company incurred restructuring costs of $1,984,000 in the quarter, significantly higher than $581,000 in the same quarter last year[20] - Deferred subscription revenue increased by 10% to $95.7 million compared to $87.2 million at the same time last year[7]

Group 1 - Franklin Covey's stock has experienced a year-to-date decline of approximately 11% despite a generally positive year [1] - The stock price has recently decreased from the low $40s per share to around $36, presenting a potential buying opportunity for investors [1]