UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) | Utah | 87-0401551 | ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | 53.4 | 141.7 | 177.4 | 199.7 | | | | | 93.0 | 119.7 | | 39.3 | 48.1 | | | | | | 26.0 | 33.1 | 39.6 | | | Q1 FY 21 Q1 FY 22 Q1 FY 23 LTM Q1FY21 LTM Q1FY22 LTM Q1FY23 124.4 97.7 80.0 LTM Q1FY23 LTM Q1FY21 LTM Q1FY22 © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 41 Education Division Financial Summary LTM Q1 LTM ...

Franklin Covey Co (NYSE:FC) Q1 2023 Earnings Conference Call January 5, 2023 5:00 PM ET Company Participants Derek Hatch - Corporate Controller Paul Walker - Chief Executive Officer Steve Young - Chief Financial Officer Jen Colosimo - President, Enterprise Sean Covey - President, Education Conference Call Participants Alex Paris - Barrington Research Nehal Chokshi - Northland Capital Markets Dave Storms - Stonegate Operator Good day and thank you for standing by and welcome to the First Quarter 2023 Frankli ...

Financial Performance - Consolidated net sales for the fiscal year ended August 31, 2022, totaled $262.8 million[13] - Fiscal 2022 consolidated revenue grew 17% to $262.8 million compared to $224.2 million in fiscal 2021, driven by strong subscription sales[175] - Net income for fiscal 2022 was $18.4 million, or $1.27 per diluted share, compared to $13.6 million, or $0.96 per diluted share, in fiscal 2021[182] - Adjusted EBITDA increased 51% to $42.2 million in fiscal 2022, up from $28.0 million in fiscal 2021[182] - Cash flows from operating activities increased 13% to $52.3 million in fiscal 2022 compared to $46.2 million in the prior year[184] Client and Market Growth - The number of client partners increased from 214 on August 31, 2018, to 300 on August 31, 2022, reflecting a growth of approximately 40%[27] - The U.S. training industry is expected to grow by 10% over 2021, reaching an estimated size of $101.6 billion[30] - Education Division revenues rose 26% to $61.9 million, with a record addition of 739 new Leader in Me schools in the U.S. and Canada[172] - The number of new Leader in Me schools added in the U.S. and Canada reached 739, a 29% increase over fiscal 2021[206] Subscription Services - All Access Pass subscription sales increased 28% to $144.5 million in fiscal 2022, up from $112.5 million in fiscal 2021[171] - AAP subscription and related revenues grew 28% to $144.5 million in fiscal 2022, with annual revenue retention remaining above 90%[198] - The company plans to launch the new Impact Platform in October 2022, aiming to enhance its subscription services and technology integration[174] Workforce and Culture - The company has approximately 1,150 associates worldwide, with a focus on diversity, equity, and inclusion in its workforce[29][46] - The associate turnover rate in the United States and Canada was 17% from June 1, 2021, to May 31, 2022, which is considered reasonable for the industry[49] - In the 2022 Culture Survey, 86% of associates reported having at least one meaningful conversation with their manager in the past year[50] - The Mentorship Program has grown from 30 pairs of mentors and mentees to 86 pairs of participants[52] - The company emphasizes a culture of feedback, encouraging ongoing dialogue between leaders and associates[50] Operational Challenges - The company has faced significant volatility and uncertainty due to the ongoing COVID-19 pandemic, impacting operations and financial results[70] - Economic and political conditions significantly impact client budgets for training, with a prolonged downturn potentially reducing demand for services[76] - Global economic instability, including inflation and energy shortages, may continue to pressure the company's operating results and financial condition[75] - The company operates in a highly competitive training industry, which may affect its ability to sell offerings[72] - The training and consulting services industry is highly competitive, with larger competitors having superior resources, which may adversely affect the company's ability to deliver quality services[73] Compliance and Legal Risks - Cybersecurity risks are heightened due to the internet-based nature of subscription services, with potential breaches leading to significant legal and financial exposure[94] - Compliance with evolving data protection laws, such as GDPR, is essential, as non-compliance could result in substantial fines[99] - The PRC Personal Information Protection Law (PIPL) imposes fines up to RMB 50,000,000 or 5% of global annual turnover for noncompliance, which could significantly impact the company's operations in China[102] - The California Consumer Privacy Act (CCPA) and its amendments require companies to disclose data practices and allow consumers to opt out of data sales, with enforcement beginning on July 1, 2023[103] Financial Strategy and Capital - The company may need to raise additional capital through debt or equity offerings to support growth initiatives and respond to competitive pressures[115] - The company did not pay or declare dividends during the fiscal years ended August 31, 2022, or 2021, and anticipates retaining all available funds for liabilities and growth[150] - The company has repurchased 504,411 shares of its common stock for $20.5 million under a Board-approved repurchase plan[154] Global Operations - The company operates globally with sales and support associates in various locations, including wholly owned subsidiaries in multiple countries[21] - The company operates in 150 countries and territories, with a wide range of content delivery options including digital online learning and on-site training[168] - Global operations expose the company to complex risks, including currency exchange fluctuations and political instability, which may affect financial performance[127] - The uncertainty surrounding Brexit may lead to economic and legal challenges, impacting the company's operations and financial condition in the UK and EU markets[128]

Greatness Starts Here © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL We transform organizations by building exceptional leaders, teams, and cultures that get results. FranklinCovey* Investor Update Fiscal Year & Q4 2022 Janita Anderson Strategic Partnerships, Education Division © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL Forward-Looking Statements/Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litig ...

Financial Data and Key Metrics - Revenue for fiscal 2022 increased by 17% to $262.8 million, with a 21% growth excluding the impact of China and Japan [7] - Subscription and subscription services revenue grew 29% in fiscal 2022, with All Access Pass revenue growing 28% and Leader in Me revenue growing 29% [8] - Gross margin for fiscal 2022 remained strong at 76.8%, with a gross margin of 75% in Q4 [11] - Adjusted EBITDA increased by 51% to $42.2 million in fiscal 2022, with a 26% increase in Q4 to $13.3 million [13] - Net cash provided by operating activities increased by 13% to $52.3 million for the year [13] Business Line Performance - North America Enterprise revenue grew 19% in fiscal 2022, with subscription revenue increasing 26% [22] - International direct offices in the UK, Ireland, Germany, Austria, Switzerland, and Australia saw revenue growth of 40% in fiscal 2022 [23] - Education division revenue grew 26% in fiscal 2022, with subscription revenue increasing 29% [26] Market Performance - Revenue in China and Japan declined by 16% in fiscal 2022 due to COVID-related lockdowns and restrictions [24] - International licensee partner revenue increased by 17% for the year, despite challenges in Eastern Europe [25] Company Strategy and Industry Competition - The company is focused on large, growing, and fragmented markets, with a total addressable market of $99 billion in Enterprise learning and $59 billion in Education [35] - The subscription business model is driving strong growth, with 77% of total business now coming from subscription and subscription services [48] - The company expects to accelerate revenue growth to mid-teens and high-teens in the coming years, driven by subscription revenue [55] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of the subscription model in uncertain economic times, as it provides predictable and durable revenue [34] - The company expects adjusted EBITDA to grow to between $47 million and $49 million in fiscal 2023, with further growth to $57 million in fiscal 2024 and $67 million in fiscal 2025 [16][69] Other Important Information - The company repurchased 585,000 shares for $23.9 million in fiscal 2022 and ended the year with $75.5 million in liquidity [13] - The company launched the Franklin Covey Impact Platform, which combines content, coaching, and technology to drive measurable behavior change [57] Q&A Session Question: Impact Platform Rollout and Client Uptake - The Impact Platform was launched on October 18, 2022, and is receiving positive feedback from clients. It will be localized into core languages and rolled out further in the coming months [78] Question: Pricing Power with All Access Subscription - The company implemented annual price increases effective September 1, 2022, with the Impact Platform supporting the case for continued price increases [79][80] Question: Education Division and Stimulus Funds - The Education division saw strong growth, with 739 new schools added in fiscal 2022. Stimulus funds are helping the market, with less than 20% of the $200 billion allocated having been spent so far [84] Question: Multiyear Contracts for All Access Subscriptions - 46% of All Access Pass contracts are multiyear, representing 61% of subscription revenue. The company expects this trend to continue as clients recognize the long-term nature of the solutions provided [88][89] Question: Hiring Environment for Client Partners - The hiring environment has improved, with the company successfully hiring 30 new client partners in fiscal 2022 and planning to add 40 more in fiscal 2023 [94][95] Question: Capital Allocation and Share Repurchases - The company opportunistically repurchases shares based on market conditions, intrinsic value calculations, and internal factors. Share repurchases are expected to continue in fiscal 2023 [98][99] Question: M&A Strategy - The company is considering M&A opportunities to add capabilities, expand content areas, or accelerate customer growth, with a focus on buy versus build decisions [100][101]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) Utah 87-0401551 (State or ...

Financial Data and Key Metrics Changes - Revenue growth for Q3 2022 was strong, increasing by 13%, and 19% when excluding the impact of COVID-related lockdowns in China and Japan [7][18] - Subscription and subscription services revenue grew 31% in Q3 2022, with All Access Pass revenue reaching $136.2 million, a growth of 32% [8][39] - Adjusted EBITDA increased by 27% to $10.9 million for the quarter, with year-to-date adjusted EBITDA growth of 66% [11][15] Business Line Data and Key Metrics Changes - North America Enterprise operations saw revenue growth of 20% in Q3, with subscription services revenue growing 27% [19][20] - Education business revenue grew 21% in Q3 and 33% year-to-date, with subscription services revenue growing 28% [21][22] - International operations were impacted by COVID, with revenue in China and Japan declining 46% in Q3, but showing signs of recovery [23][24] Market Data and Key Metrics Changes - Deferred revenue increased by 21% to $116.5 million, indicating strong future revenue visibility [9][40] - The percentage of multiyear contracts for All Access Pass increased to 42%, with 58% of total subscription revenue coming from these contracts [9][40] Company Strategy and Development Direction - The company is focused on expanding its presence in large, fragmented markets, including Enterprise learning and Education, which are expected to grow significantly [27][30] - The strength of the subscription model is a key driver for growth, providing predictability and durability in revenue [37][39] - Investments in technology and sales force are ongoing to support growth, with plans to increase client partners from 30 to 40 in fiscal 2023 [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential economic downturns, citing the enduring nature of the problems they help clients solve [76][78] - The company expects to increase revenue growth guidance to the low teens for fiscal 2023 and beyond, driven by strong subscription growth [13][61] - Adjusted EBITDA guidance for fiscal 2022 has been raised to between $40 million and $41.5 million, reflecting strong performance [15][57] Other Important Information - The company returned $20.3 million to shareholders through share repurchases, ending the quarter with $67.1 million in liquidity [12][26] - The company is actively exploring acquisition opportunities to enhance capabilities and expand its service offerings [71][73] Q&A Session Summary Question: Can you elaborate on client partner hirings and the shift from net 30 to net 40? - Management confirmed that the support staff is in place to support the increase to net 40 client partners in fiscal 2023, with ambitions to go beyond that in the following years [64][67] Question: What is the status of All Access Pass implementation in China and Japan? - Significant progress has been made in Japan, with 45% of their business being All Access Pass related, while China is also seeing growth despite recent downturns due to COVID restrictions [68][69] Question: Can you provide an update on the acquisition landscape? - The company is focused on acquiring capabilities and content that complement their existing offerings, with ongoing discussions about potential targets [70][72] Question: How is the company preparing for potential macroeconomic challenges? - Management expressed confidence in their preparedness, highlighting the importance of their subscription model and strong cash flow as key advantages during economic uncertainty [76][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2022 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) Utah 87-0401551 (Stat ...

Franklin Covey Co. (NYSE:FC) Q2 2022 Earnings Conference Call March 30, 2022 5:00 PM ET Company Participants Derek Hatch - Corporate Controller Paul Walker - Chief Executive Officer Steve Young - Chief Financial Officer & Corporate Secretary Conference Call Participants Alex Paris - Barrington Research Jeff Martin - Roth Capital Partners Marco Rodriguez - Stonegate Capital Markets Samir Patel - Askeladden Capital Operator Welcome to the Q2 2022 Franklin Covey Earnings Conference Call. My name is Adrianne, a ...