Core Viewpoint - Franklin Covey reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, but down from $0.43 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +325.00%, with the company previously expected to post a loss of $0.11 per share but actually reporting a loss of $0.08, resulting in a surprise of +27.27% [2] - Revenues for the quarter ended May 2025 were $67.12 million, missing the Zacks Consensus Estimate by 0.34%, and down from $73.37 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has topped consensus revenue estimates only once [2][3] Stock Performance - Franklin Covey shares have declined approximately 35.8% since the beginning of the year, contrasting with the S&P 500's gain of 5.4% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $79.88 million, and for the current fiscal year, it is $0.48 on revenues of $275.93 million [8] - The outlook for the consulting services industry, where Franklin Covey operates, is currently in the bottom 31% of over 250 Zacks industries, which may impact stock performance [9]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $67.1 million, down 9% year-over-year and 4% year-to-date, but up 13% sequentially [29] - Adjusted EBITDA was $7.3 million, exceeding expectations and higher than the top end of the guidance range of $4 million to $6.5 million [6][33] - Operating expenses increased to $53.5 million, primarily due to restructuring charges and increased selling, general, and administrative expenses [30] Business Line Data and Key Metrics Changes - The Enterprise Division generated 70% of total revenue, with revenue of $47.3 million, down from $51.9 million in the prior year [34] - The Education Division's revenue was $18.6 million, down 8% compared to the prior year, but subscription revenue grew 13% [39] - Adjusted EBITDA for the Education Division decreased to $2.1 million from $3.1 million last year due to lower revenue [39] Market Data and Key Metrics Changes - North America segment revenue was $37.1 million, a decrease of $3.5 million from the prior year, with subscription and subscription services revenue down 4% year-to-date [35] - International direct operations revenue was $7.5 million, a decrease of $1 million, primarily due to challenging business conditions in Asia and the UK [36] - The balance of billed deferred subscription revenue in North America was $45 million, down from $47.2 million in the prior year [36] Company Strategy and Development Direction - The company is focused on cost reductions while maintaining investments in growth initiatives, particularly in the Enterprise North America business [6][32] - A new Chief Marketing Officer has been appointed to accelerate marketing efforts and penetrate the total addressable market [22] - The company expects to grow its education business year-over-year despite uncertainties, with strong demand for its "Leader in Me" program [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and continue winning large deals [8][46] - The revised revenue guidance for the fiscal year is now between $265 million and $275 million, reflecting ongoing uncertainties and timing risks [9][42] - Management anticipates a meaningful increase in adjusted EBITDA and free cash flow in fiscal year 2026 due to cost reduction actions [43] Other Important Information - The company has completed cost reduction initiatives that are expected to yield annualized savings of $8 million in fiscal year 2026 [32] - The percentage of clients in multi-year contracts increased from 55% to 58%, indicating a strong client retention strategy [21] Q&A Session Summary Question: Can you share milestones regarding the enterprise division's performance? - Management highlighted the increase in new logos and expansion within existing clients, emphasizing the separation of sales teams for better focus [51][53] Question: What are the expectations for new school additions in the education division? - Management expects to meet or exceed the previous year's new school additions, citing the effectiveness of the "Leader in Me" solution [62][63] Question: Can you break down the guidance reduction by segment? - The reduction primarily stems from timing issues in service delivery and ongoing uncertainties affecting enterprise clients [65][68] Question: How does the company foresee the current environment impacting fiscal year 2026? - Management is planning for continued scrutiny of budgets and tariffs, but remains committed to navigating through these challenges [74][75] Question: What is the current adoption rate of AI service delivery? - Approximately 43% of clients are using the AI sales coach, with expectations for increased adoption as the technology evolves [85]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $67.1 million, down 9% year-over-year and 4% year-to-date, but up 13% sequentially [27] - Adjusted EBITDA was $7.3 million, exceeding expectations and down from $13.9 million in the prior year [30][31] - Gross margin remained strong at approximately 76.5% of revenue, flat year-over-year [27] - Operating expenses increased to $53.5 million, primarily due to restructuring charges and increased selling, general, and administrative expenses [28] Business Line Data and Key Metrics Changes - The Enterprise Division generated 70% of total revenue, with Q3 revenue at $47.3 million, down from $51.9 million in the prior year [32] - The Education Division's revenue was $18.6 million, down 8% year-over-year but grew 1% year-to-date [36] - Subscription revenue in the Education Division increased by 13% to $11.8 million [36] Market Data and Key Metrics Changes - The North America segment revenue was $37.1 million, a decrease of $3.5 million from the prior year, affected by government actions [33] - International direct operations revenue was $7.5 million, down $1 million due to challenging business conditions [34] - The number of multi-year contracts in North America increased from 55% to 58% [34] Company Strategy and Development Direction - The company is focused on cost reductions while maintaining investments in growth initiatives [5][6] - A new Chief Marketing Officer has been appointed to accelerate marketing efforts and penetrate the total addressable market [21] - The company expects to grow its education business year-over-year despite uncertainties [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain external environment affecting investment decisions and cost scrutiny [5] - Revised revenue guidance for the fiscal year is now between $265 million and $275 million, with adjusted EBITDA guidance widened to $28 million to $33 million [7][40] - Confidence remains in the fundamental strengths of the business and the potential for future growth [7] Other Important Information - The company has completed cost reduction initiatives that are expected to yield significant savings in the coming fiscal year [6][29] - Deferred subscription revenue increased by 7% year-over-year, indicating a strong foundation for future growth [31] Q&A Session Summary Question: Can you share milestones regarding the enterprise division's performance? - Management noted improvements in new logo sales and expansion within existing clients, with a focus on off-cycle expansion opportunities [50][52] Question: What are the expectations for new school additions in the education division? - Management expects to meet or exceed the previous year's new school additions, citing strong demand for their solutions [60][61] Question: Can you break down the guidance reduction by segment? - The reduction primarily stems from timing issues in service delivery and ongoing uncertainty affecting enterprise clients [63][66] Question: How do you foresee the current environment impacting fiscal 2026? - Management is planning for continued scrutiny of budgets and uncertainty in the enterprise level due to tariffs and other factors [70][71] Question: What is the current status of deferred revenue growth relative to total revenue growth? - Management explained that deferred revenue growth is driven by invoiced amounts from prior years, and they expect future growth to translate into reported revenue [73][78] Question: What is the adoption rate of AI service delivery among clients? - Approximately 43% of clients are using the AI sales coach, with expectations for continued growth in this area [81]

Executive Summary Franklin Covey's Q3 FY2025 saw $67.1 million revenue, $7.3 million Adjusted EBITDA, and a $1.4 million net loss, with deferred subscription revenue up 7% [Q3 FY2025 Key Highlights](index=1&type=section&id=Q3%20FY2025%20Key%20Highlights) Franklin Covey reported Q3 FY2025 consolidated revenue of $67.1 million, within guidance, and Adjusted EBITDA of $7.3 million, exceeding guidance. The company recorded a net loss of $1.4 million, impacted by restructuring costs, while deferred subscription revenue increased 7% year-over-year Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 Value | | :----------------------------- | :-------------- | | Consolidated Revenue | $67.1 million | | Adjusted EBITDA | $7.3 million | | Net Loss | $(1.4) million | | Deferred Subscription Revenue | $89.3 million | | Cash and Cash Equivalents | $33.7 million | | Common Stock Repurchases (Q3) | $8.3 million | - Adjusted EBITDA of **$7.3 million** **exceeded guidance**, despite a net loss of **$1.4 million** after **$4.7 million** in restructuring costs[1](index=1&type=chunk) - Deferred subscription revenue grew **7% year-over-year** to **$89.3 million**, indicating **strong recurring revenue streams**[1](index=1&type=chunk) Third Quarter Fiscal 2025 Financial Results The company's Q3 FY2025 financial results reflect a decline in consolidated revenue and a net loss, primarily due to restructuring charges and increased SG&A expenses [Consolidated Financial Overview](index=1&type=section&id=Consolidated%20Financial%20Overview) Consolidated revenue for Q3 FY2025 decreased to $67.1 million from $73.4 million in Q3 FY2024, leading to a net loss of $(1.4) million, or $(0.11) per share, compared to net income of $5.7 million, or $0.43 per diluted share, in the prior year. This net loss included $4.7 million in restructuring charges and a $1.6 million year-over-year increase in SG&A expenses Consolidated Financial Performance | Metric | Q3 FY2025 | Q3 FY2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Consolidated Revenue | $67.1 million | $73.4 million | -8.58% | | Net Income (Loss) | $(1.4) million | $5.7 million | -124.56% | | Net Income (Loss) per Diluted Share | $(0.11) | $0.43 | -125.58% | - The net loss of **$(1.4) million** in Q3 FY2025 included **$4.7 million** in restructuring charges related to optimizing go-to-market transformation investments and cost reductions[3](index=3&type=chunk)[4](index=4&type=chunk) - Selling, general, and administrative expenses **increased by $1.6 million** year-over-year due to the implementation of the Company's go-to-market strategy[4](index=4&type=chunk)[5](index=5&type=chunk) [Divisional Performance](index=1&type=section&id=Divisional%20Performance) Both the Enterprise and Education Divisions experienced revenue declines in Q3 FY2025 compared to the prior year, primarily due to macroeconomic factors, geopolitical tensions, and specific contract changes [Enterprise Division](index=1&type=section&id=Enterprise%20Division) Enterprise Division revenue decreased to $47.3 million in Q3 FY2025 from $51.9 million in the prior year, primarily due to a $3.5 million decrease in North America and a $1.0 million decrease in International Direct Office revenue, attributed to macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal government contracts Enterprise Division Revenue | Metric | Q3 FY2025 | Q3 FY2024 | Change (YoY) | | :------------------- | :-------- | :-------- | :----------- | | Enterprise Revenue | $47.3 million | $51.9 million | -8.7% | - North America segment revenue **decreased by $3.5 million**, and International Direct Office revenue **decreased by $1.0 million**, impacted by ongoing macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal government contracts[3](index=3&type=chunk) [Education Division](index=1&type=section&id=Education%20Division) Education Division revenue was $18.6 million in Q3 FY2025, down from $20.2 million in Q3 FY2024. This decrease was mainly due to lower materials revenue, as the prior year included a significant state-wide initiative, though partially offset by increased training, coaching, and membership subscription revenue Education Division Revenue | Metric | Q3 FY2025 | Q3 FY2024 | Change (YoY) | | :--------------- | :-------- | :-------- | :----------- | | Education Revenue | $18.6 million | $20.2 million | -7.9% | - The **decrease in Education Division revenue** was **primarily due to** less materials revenue compared to Q3 FY2024, which had benefited from a new state-wide initiative[3](index=3&type=chunk) - Increased training and coaching revenue and membership subscription revenue **partially offset the decline** in materials revenue[3](index=3&type=chunk) [Key Financial Metrics & Balance Sheet Items](index=3&type=section&id=Key%20Financial%20Metrics%20%26%20Balance%20Sheet%20Items) Adjusted EBITDA for Q3 FY2025 was $7.3 million, a significant decrease from $13.9 million in the prior year. Consolidated deferred subscription revenue increased 7% year-over-year to $89.3 million, with multi-year contracts representing 62% of contracted amounts. Cash provided by operating activities and free cash flow for the first three quarters of fiscal 2025 also saw substantial declines Key Financial Metrics and Balance Sheet Summary | Metric | Q3 FY2025 | Q3 FY2024 | Change (YoY) | | :------------------------------------ | :-------- | :-------- | :----------- | | Adjusted EBITDA | $7.3 million | $13.9 million | -47.5% | | Consolidated Deferred Subscription Revenue (May 31) | $89.3 million | $83.8 million | +6.6% | | Cash Provided by Operating Activities (YTD) | $19.0 million | $38.4 million | -50.5% | | Free Cash Flow (YTD) | $10.6 million | $30.6 million | -65.3% | | Cash and Cash Equivalents (May 31) | $33.7 million | $40.4 million (Feb 28) | -16.6% | - The percentage of AAP contracts in North America for at least two years **increased to 58%** at May 31, 2025, from **55%** in the prior year, and multi-year contracts represented **62%** of contracted amounts, **up from 60%**[9](index=9&type=chunk) - The company repurchased approximately **372,000 shares** of common stock for **$8.3 million** in Q3 FY2025, bringing the fiscal year total to **769,000 shares** for **$23.0 million**[9](index=9&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) CEO Paul Walker expressed satisfaction with Q3 revenue and Adjusted EBITDA performance, highlighting confidence in the ongoing sales transformation despite market uncertainties. He noted an increase in new clients, robust client expansion, strong retention, and a high Enterprise Division attachment rate. CFO Jessi Betjemann emphasized the company's commitment to driving growth and creating long-term shareholder value through its high-margin recurring revenue model - CEO Paul Walker noted that the company landed more new clients and achieved robust expansion across a significant portion of its client base in Q3, with client retention remaining **strong**[6](index=6&type=chunk) - The Enterprise Division attachment rate **remained high at 60%**, and the percentage of subscription revenue from multi-year periods **increased to 62%** in Q3[6](index=6&type=chunk) - Management anticipates **accelerated future revenue growth** and **significant growth** in Adjusted EBITDA and Free Cash Flow in fiscal 2026 and beyond, with the Education business expected to achieve **full-year top and bottom-line growth**[6](index=6&type=chunk) Fiscal 2025 and 2026 Guidance The company has updated its FY2025 guidance due to market uncertainties and expects meaningful growth in Adjusted EBITDA and free cash flow for FY2026 [Updated FY2025 Guidance](index=3&type=section&id=Updated%20FY2025%20Guidance) Franklin Covey updated its FY2025 guidance, revising total revenue to a range of $265 million to $275 million and Adjusted EBITDA to $28 million to $33 million. This revision is attributed to continued uncertainty impacting client decision-making and timing risks for service delivery Updated FY2025 Guidance Ranges | Metric | Updated FY2025 Guidance Range | | :------------- | :---------------------------- | | Total Revenue | $265 million to $275 million | | Adjusted EBITDA | $28 million to $33 million | - The guidance revision is **due to continued uncertainty** impacting clients' decision-making and the timing risk for delivery of services, which could slip into the first quarter of the next fiscal year[7](index=7&type=chunk) [FY2026 Outlook](index=3&type=section&id=FY2026%20Outlook) The company expects to generate a meaningful increase in Adjusted EBITDA and free cash flow in FY2026, partly due to recent cost reduction actions. Updated guidance for FY2026 will be shared at year-end in November - The Company expects to generate a **meaningful increase** in Adjusted EBITDA and free cash flow in FY2026, partly due to recent cost reduction actions[8](index=8&type=chunk) - Updated guidance for FY2026 will be provided when the company reports at year-end in November[8](index=8&type=chunk) Additional Company Information This section provides details on the earnings call, forward-looking statements, non-GAAP financial measures, and an overview of Franklin Covey Co [Earnings Conference Call](index=5&type=section&id=Earnings%20Conference%20Call) Franklin Covey will host a conference

Group 1 - Franklin Covey Co. is set to release its third-quarter earnings results on July 2, with analysts expecting earnings of 13 cents per share, a decrease from 46 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $67.49 million, down from $73.37 million a year earlier [1] - Dariusz Paczuski has been appointed as the Chief Marketing Officer of Franklin Covey as of June 10 [1] Group 2 - Franklin Covey shares increased by 0.3%, closing at $23.38 [2] - Barrington Research analyst Alexander Paris has maintained an Outperform rating with a price target of $35, while Roth MKM analyst Jeff Martin reiterated a Buy rating with a price target of $50 [4]

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].

Core Points - Firm Capital Mortgage Investment Corporation announced a monthly cash dividend of $0.078 per share, with specific record and payable dates for the upcoming months [1] - The Corporation operates as a non-bank lender, focusing on residential and commercial short-term bridge and conventional real estate financing, including construction and equity investments [2] - The investment objective of the Corporation is to preserve shareholders' equity while providing a stable stream of monthly dividends from investments in niche markets underserved by large lending institutions [2] Dividend and Share Purchase Plan - The Corporation has a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends in additional shares at a discounted price of 97% of the weighted average trading price, with no commission costs [1] - Participants in the Share Purchase Plan can purchase additional shares, with a maximum of $12,000 per year and a minimum of $250 per month, also with no commission fees [1] Taxation and Financial Reporting - As a Mortgage Investment Corporation (MIC), the Corporation is not taxed on income as long as taxable income is distributed to shareholders as dividends within 90 days after year-end [2] - Dividends are generally treated as interest income for shareholders, aligning their position with direct mortgage investments [2] - Full financial results and management discussions are available on the SEDAR website and the Corporation's website [2]