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]

Core Points - Firm Capital Mortgage Investment Corporation announced a special year-end cash dividend of $0.056 per share for 2024, with total dividends declared and paid for the year amounting to $0.992 per share [2] - The monthly cash dividend for December 2024 is set at $0.078 per share, bringing the total estimated cash dividends for December to $0.134 per share, payable on or about January 15, 2025 [3] - The board of directors has approved monthly cash dividends of $0.078 per share for Q1 2025, with specific payment dates outlined [4] 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, including construction, mezzanine, and equity investments [4] - 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 [4] - The Corporation is classified as a Mortgage Investment Corporation (MIC) under the Income Tax Act (Canada), allowing it to avoid taxation on income as long as it distributes taxable income to shareholders within 90 days after year-end [4]

Financial Performance - Consolidated net sales for the fiscal year ended August 31, 2024, totaled $287.2 million[13] - Consolidated revenue for fiscal 2024 increased by $6.7 million to a record $287.2 million compared to $280.5 million in fiscal 2023, with constant currency sales growing to $288.2 million[181] - Net income for fiscal 2024 was $23.4 million, or $1.74 per diluted share, compared to $17.8 million, or $1.24 per diluted share, in fiscal 2023[189] - Cash flows from operating activities increased by 69% to $60.3 million in fiscal 2024, up from $35.7 million in fiscal 2023[192] - Gross profit for fiscal 2024 increased by $7.6 million to $221.1 million, resulting in a gross margin of 77.0%, up from 76.1% in the prior year[185] - Income from operations improved by 25% to $33.0 million in fiscal 2024 compared to $26.4 million in fiscal 2023[187] - Adjusted EBITDA for fiscal 2024 increased by 15% to $55.3 million compared to $48.1 million in the prior year[189] Revenue Sources - The company’s revenue is significantly dependent on renewals of subscription-based offerings, which include the AAP and Leader in Me membership[71] - A large portion of revenue is generated from subscription-based offerings and related materials sales, making new sales generation a challenging and costly process[72] - Deferred subscription revenue at August 31, 2024, was $107.9 million, up from $99.0 million at August 31, 2023, indicating strong future revenue recognition[183] - Direct Office segment revenue grew 2% to $197.6 million in fiscal 2024, with AAP subscription revenue increasing by 7% to $106.3 million[198] - Education Division revenue increased by 5% to $73.5 million in fiscal 2024, supported by growth in classroom materials, membership subscriptions, and coaching services[182] Market and Competitive Landscape - The training industry is highly competitive, with significant competitors including Development Dimension International, Korn Ferry, and LinkedIn Learning[32] - The U.S. training expenditures are estimated to total $98 billion in 2024, a slight decrease from $102 billion in 2023, indicating potential for revenue growth[31] - The company faces intense competition in the training and consulting services industry, which may adversely affect its ability to obtain new business[70] Strategic Initiatives - The company plans to invest approximately $16 million in fiscal 2025 to reorganize its sales force and implement a new selling strategy aimed at accelerating client acquisition and revenue growth[175] - The company aims to enhance its market approach to reach more clients and improve sales efficiency through strategic initiatives launched in fiscal 2024[175] - The company’s strategic objectives for fiscal 2025 include transforming market approaches, becoming the partner of choice for leaders, and building best-in-class solutions[175] Human Resources and Culture - The company has 1,084 associates worldwide, primarily full-time employees, with no union representation[30] - Franklin Covey supports eight Employee Resource Groups (ERGs) aimed at enhancing career opportunities and fostering community among underrepresented associates[51] - The company emphasizes a culture of trust and inclusion, with a focus on relationship-building as a key driver of associate engagement[48] - The Chief People Officer oversees HR operations and talent management, ensuring alignment with the company's strategic intent[44] - The organization has implemented a comprehensive onboarding process that includes a three-part orientation for new associates[45] Compliance and Risk Management - The company is exposed to risks associated with government contracting, including potential changes in project scope and funding[89] - Cybersecurity risks are heightened due to the internet-based nature of subscription services, which could lead to significant legal and financial exposure[90] - The company has implemented policies to comply with evolving data protection laws, including GDPR, but faces challenges in ensuring complete effectiveness[95] - Compliance with various state privacy laws, such as the California Consumer Privacy Act (CCPA), may increase operational costs and legal liabilities[102] Operational Challenges - Rising inflation in the U.S. and other markets may increase operational costs, impacting profitability if price adjustments cannot be made[124] - The company may need to raise additional capital for growth and acquisitions, which could dilute current shareholders' ownership[115] - The company operates directly in multiple countries including Austria, Australia, China, Germany, Ireland, Japan, New Zealand, Switzerland, and the United Kingdom, which exposes it to various operational risks[126] Future Outlook - The company aims to enhance talent management and build a high-performing organization through strategic recruitment and development initiatives[40] - The company recognizes inherent climate-related risks and expects increasing regulations related to climate change, which may impact its operations and financial condition[141]

Financial Data and Key Metrics Changes - The company reported its fourth quarter and fiscal year results for the period ending August 31, 2024, indicating a focus on revenue growth and subscription offerings [3][4]. Business Line Data and Key Metrics Changes - Specific performance metrics for the Enterprise and Education divisions were discussed, highlighting their contributions to overall revenue [3]. Market Data and Key Metrics Changes - The company emphasized the importance of market acceptance for its subscription offerings, including the All Access Pass and Leader in Me memberships, which are critical for revenue growth [4]. Company Strategy and Development Direction and Industry Competition - Management outlined strategic initiatives aimed at enhancing revenue growth and improving subscription renewal rates, while also addressing competitive pressures in the marketplace [4]. Management's Comments on Operating Environment and Future Outlook - The management team expressed optimism about future growth, contingent on hiring productive sales professionals and navigating general economic conditions [4]. Other Important Information - The call included a reminder about forward-looking statements and the associated risks and uncertainties that could impact the company's performance [4]. Q&A Session All Questions and Answers Question: What are the expectations for revenue growth in the upcoming quarters? - Management indicated that revenue growth is a priority and will depend on the success of subscription offerings and market conditions [4]. Question: How is the company addressing competition in its targeted marketplace? - The company is focusing on enhancing its product offerings and improving customer engagement to better compete [4]. Question: What are the key risks identified by management for the upcoming fiscal year? - Management highlighted risks related to economic conditions, competition, and the ability to attract and retain sales talent as critical factors to monitor [4].

Financial Performance - Consolidated fourth quarter revenue increased 8% to $84.1 million compared to $78.0 million in the prior year[1] - Fourth quarter net income rose 76% to $12.0 million, or $0.89 per diluted share, compared to $6.8 million, or $0.49 per diluted share, in the prior year[2] - Revenue for the quarter ended August 31, 2024, was $84,124,000, representing a 7.5% increase from $77,955,000 for the same quarter in 2023[16] - Gross profit for the quarter was $65,737,000, up 10.5% from $59,305,000 year-over-year[16] - Net income for the quarter was $11,956,000, a significant increase of 75.5% compared to $6,812,000 in the prior year[16] - Net income for the year ended August 31, 2024, was $23,402,000, up from $17,781,000 in 2023, reflecting a growth of 32.5%[21] - Adjusted EBITDA for the quarter was $22,933,000, reflecting a 38.9% increase from $16,508,000 in the same quarter last year[18] - The Adjusted EBITDA margin improved to 27.3% from 21.2% year-over-year[18] Cash Flow and Investments - Cash flows from operating activities for fiscal 2024 increased 69% to $60.3 million compared to $35.7 million in fiscal 2023[3] - Free cash flow improved significantly to $48,947,000 in 2024 compared to $22,188,000 in 2023, marking an increase of 120.5%[21] - The Company plans to invest approximately $16 million in sales and marketing to accelerate revenue growth from mid-single digits to solid double digits[5] - Adjusted EBITDA for fiscal 2025 is expected to be in the range of $40 million to $44 million, following an initial decrease due to investments[6] Revenue Breakdown - Enterprise Division revenues for the fourth quarter increased 12% to $58.5 million, driven by a 3% growth in All Access Pass subscription revenue[2] - Total subscription and subscription services revenues reached $65.8 million, a 2% increase over the fourth quarter of the prior year[3] - Revenue from the Enterprise Division's Direct offices was $56,100,000, an increase from $49,827,000 in the previous year[19] - The Education Division generated revenue of $24,117,000, slightly up from $24,105,000 year-over-year[19] Balance Sheet and Equity - Total current assets increased to $160,253,000 in August 2024 from $145,017,000 in August 2023, representing an increase of 10.5%[8] - Total liabilities rose to $178,404,000 in August 2024 from $167,265,000 in August 2023, an increase of 6.8%[8] - Current liabilities increased to $162,453,000 in August 2024, up from $151,649,000 in August 2023, which is a rise of 7.9%[8] - Cash and cash equivalents increased to $48,663,000 in August 2024 from $38,230,000 in August 2023, a growth of 27.5%[8] - Retained earnings grew to $123,204,000 in August 2024, up from $99,802,000 in August 2023, indicating a rise of 23.4%[8] - The total shareholders' equity increased to $83,135,000 in August 2024 from $78,654,000 in August 2023, reflecting a growth of 5.9%[8] Stock and Compensation - The company purchased 776,234 shares of its common stock for $30.7 million during fiscal 2024[3] - The company incurred $10,142,000 in stock-based compensation expense in 2024, down from $12,520,000 in 2023, a decrease of 19%[21] - The company incurred no restructuring costs in the current quarter, compared to $565,000 in the same quarter last year[16] Other Financial Metrics - Total cost of revenue decreased slightly to $18,387,000 from $18,650,000 year-over-year[16] - The company reported a basic net income per share of $0.92, compared to $0.52 in the same quarter last year[16] - The company reported a decrease in accounts payable to $7,863,000 in August 2024 from $6,501,000 in August 2023, a decrease of 20.4%[8]

Core Points - Firm Capital Mortgage Investment Corporation has successfully closed a bought deal public offering of 1,950,000 common shares at a price of $11.30 per share, resulting in gross proceeds of $22,035,000 [1] - The net proceeds from the offering will be utilized to repay indebtedness [2] - The underwriters have been granted an over-allotment option to purchase up to an additional 292,500 common shares within 30 days following the closing [1] 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, including construction, mezzanine, and equity investments [4] - The corporation aims to preserve shareholders' equity while providing a stable stream of monthly dividends through investments in niche markets that are underserved by larger lending institutions [4] - The corporation's lending activities have led to the development of a diversified mortgage portfolio, producing stable returns for shareholders [4]

/BASE SHELF PROSPECTUS IS ACCESSIBLE, AND PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE ON SEDAR+ WITHIN TWO BUSINESS DAYS/ /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ TORONTO, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX: FC) is pleased to announce that it has increased the size of its previously announced bought deal offering. Pursuant to the amended terms, the Corporation has entered into an agreement to sel ...

Financial Performance - Consolidated revenue for the quarter ended May 31, 2024, increased to $73.4 million, up from $71.4 million in the prior year, representing a growth of 2.8%[30] - Gross profit for the quarter ended May 31, 2024, was $56.2 million, compared to $54.2 million in the same quarter of fiscal 2023, with a gross margin increase to 76.6% from 75.9%[31] - Adjusted EBITDA for the quarter ended May 31, 2024, was $13.9 million, an increase from $11.9 million in the prior year, reflecting a growth of 16.8%[55] - Subscription and subscription services revenues reached $60.8 million, a 6% increase over the third quarter of fiscal 2023, with deferred subscription revenue increasing 15% to $83.8 million[60] - For the quarter ended May 31, 2024, Direct Office segment revenue totaled $49.3 million, a decrease from $50.4 million in fiscal 2023, while AAP subscription revenue grew 4% year-over-year to $42.6 million[64] - Education Division revenue increased by 8%, or $3.8 million, compared to the first three quarters of fiscal 2023, driven by classroom and training materials, membership subscriptions, and international royalties[72] Cash Flow and Liquidity - Cash flows from operating activities for the first three quarters of fiscal 2024 increased to $38.4 million, compared to $25.9 million in the same period of fiscal 2023, marking a 48.5% increase[32] - Cash provided by operating activities increased by $12.4 million to $38.4 million in the first three quarters of fiscal 2024, compared to $25.9 million in the prior year, attributed to strong collections of accounts receivable[76] - As of May 31, 2024, the company had nearly $100 million in available liquidity, consisting of $36.6 million in cash and an undrawn $62.5 million line of credit[62] Margins and Expenses - Direct Office gross margin improved to 81.4% of sales compared to 80.6% in the prior year, driven by a favorable mix of services and products sold[40] - Education Division gross margin improved to 65.6% of sales, up from 64.0% in the prior year, due to better margins on classroom materials and a favorable mix of services[67] - SG&A expenses for the Education Division decreased by $1.8 million compared to the prior year, reflecting cost management efforts[71] Taxation - The effective income tax rate for the third quarter of fiscal 2024 was 31.6%, slightly higher than the 30.7% in fiscal 2023, primarily due to nondeductible expenses[61] - The effective tax rate for the third quarter of fiscal 2024 was 31.6%, compared to 30.7% in fiscal 2023, primarily due to non-deductible expenses[69] Other Factors - International licensees' revenue decreased by 3% during the first three quarters of fiscal 2024, attributed to a 3% decrease in royalty revenues[41] - Amortization expense for the first three quarters of fiscal 2024 was $3.2 million, a slight decrease from $3.3 million in the prior year[43] - AAP subscription revenue retention levels remained strong at over 90% during the third quarter[64] - The fluctuation of foreign exchange rates had a $0.3 million adverse impact on Direct Office revenue for the quarter ended May 31, 2024[64] - The company anticipates strong cash flows from operating activities to continue for the remainder of fiscal 2024[76]

Financial Data and Key Metrics Changes - Revenue for Q3 was $73.4 million, a 3% increase from $71.4 million in the same quarter last year [57][62] - Adjusted EBITDA for Q3 was $13.9 million, representing a 17% growth compared to the previous year [74][96] - Free cash flow for the first three quarters increased by 96% to $30.6 million compared to $15.6 million in the prior year [73][101] Business Line Data and Key Metrics Changes - North American subscription revenue was $22 million, reflecting a 3% growth in the quarter [97] - Education revenue grew to $20.1 million in Q3, up 18% from the previous year [99] - International licensee partner revenue was $2.7 million, a decrease of 5% year-over-year [71] Market Data and Key Metrics Changes - Deferred revenue increased by 15% to $83.8 million, indicating strong growth in contracted revenue [65][74] - Unbilled deferred revenue increased by 2% to $69.4 million, reflecting growth in multi-year contracts [65][74] - The balance of billed and unbilled deferred revenue increased to $153.2 million, providing increased visibility into future revenue [90] Company Strategy and Development Direction - The company is focusing on enhancing its sales organization and expanding client partnerships, with plans to add more client partners in fiscal '25 [28][134] - Strategic projects such as Project Penetrate, Project Speed to Ramp, and Project Impact are aimed at driving future growth [67][153] - The company is optimistic about the funding environment due to community support and grants, which are expected to aid growth [41][112] Management's Comments on Operating Environment and Future Outlook - Management noted strong retention rates and a positive outlook for the fourth quarter, driven by a solid pipeline and new district partnerships [13][41] - The sentiment among clients is described as neutral to slightly positive, with expectations for continued spending [27][27] - Management expressed confidence in overcoming challenges posed by the end of ESSER funds, supported by community initiatives and foundation funding [109][135] Other Important Information - The company has returned $25.8 million to shareholders through stock repurchases year-to-date [94] - The company ended the quarter with nearly $100 million in total liquidity, including $36.3 million in cash [73] Q&A Session Summary Question: How does the company view the impact of ESSER funds ending? - Management believes the impact will be manageable, as many schools have already utilized their ESSER funds and are renewing contracts [109][112] Question: What is the outlook for international markets, particularly China? - Management indicated that challenges in China are significant, but they are hopeful for better growth moving forward [129][149] Question: What are the expectations for cash flow in the fourth quarter? - Management expects cash flow to normalize, projecting it to be around 70% to 75% of adjusted EBITDA [145]