Financial Data and Key Metrics Changes - Subscription and subscription services revenue grew 31% in Q2 and 32% year-to-date, driving overall company revenue growth of 18% in Q2 and 22% year-to-date [6][27] - Deferred revenue, both billed and unbilled, grew 24%, with gross margin reaching 77.9% for the quarter, an increase of 41 basis points year-over-year [7][30] - Adjusted EBITDA for Q2 increased 57% to $8 million and 103% to $18 million year-to-date, with net cash flow from operating activities increasing to $23.2 million [9][38] Business Line Data and Key Metrics Changes - The All Access Pass subscription and subscription services revenue grew 29% to $32 million in Q2 and 28% to $65.2 million year-to-date [26] - The average All Access Pass contract value in the US-Canada business increased from $31,000 in fiscal 2016 to $46,000 [21] - The annual revenue retention rate for All Access Pass has exceeded 90% every quarter since its inception [22] Market Data and Key Metrics Changes - The balance of deferred revenue grew to $70.4 million, a 20% increase compared to the same period last year, with unbilled deferred revenue growing 31% to $49 million [30] - The Education Division's Leader in Me subscription offering is in over 5,000 schools worldwide, achieving greater than 90% revenue retention [41] Company Strategy and Development Direction - The company aims to transition virtually all sales to subscription and subscription services within the next three years, expecting revenue growth to move from high single digits to low double digits and eventually to mid-teens and beyond [43][45] - The strategy includes significant investments in content, technology, and client partner hiring to enhance growth and client engagement [60][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the All Access Pass subscription and subscription services sales, which are expected to drive future revenue recognition from deferred revenue [50] - The company anticipates challenges in China and Japan due to pandemic-related issues but remains optimistic about growth in North America and the Education Division [52][56] Other Important Information - The company has raised its full-year guidance for FY 2022, expecting adjusted EBITDA to be between $38 million and $39 million, reflecting a 38% increase compared to the previous year [48] - The company has a strong liquidity position with $76.1 million in liquidity and no net debt, allowing for continued investments and potential share repurchases [38][95] Q&A Session Summary Question: Update on client partner hiring - Management indicated plans to hire 30 new client partners this year, with a focus on ramping up hiring in Q4 [62][64] Question: Outlook for fiscal years 2023 and 2024 - Management remains confident in achieving adjusted EBITDA targets of $45 million for FY 2023 and $55 million for FY 2024, with updates expected after Q4 results [57][68] Question: Update on Strive rollout - The Strive platform is on track for a full launch at the start of the new fiscal year, following successful pilot testing [73][74] Question: Cash buildup on the balance sheet - Management discussed using excess cash for business growth, acquisitions, and share repurchases, maintaining a focus on strategic investments [93][95] Question: Sustainability of service attach rate to All Access Pass - Management noted that the attach rate is currently in the high-50s and believes there is still room for growth, driven by client needs for higher-level services [84][88]

Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. FranklinCovey* Investor Update Second Quarter Fiscal Year 2022 lanita Anders © 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 Litigation Reform Act of 1995. Forward-looking statements re based upon management's current expectations and ...

Financial Data and Key Metrics Changes - Total revenue in Q1 2022 grew 27% or $12.9 million to $61.3 million, with a 12-month revenue growth of 26% or $48.9 million to $237.1 million [6][11] - Adjusted EBITDA for Q1 increased to $9.9 million, a rise of $6.2 million or 167% compared to $3.7 million in Q1 FY21 [13] - Gross margin percentage increased 240 basis points to 77.7% from 75.3% in the previous year [12] Business Line Data and Key Metrics Changes - Subscription revenue grew 31% or $6.7 million to $28.4 million in Q1, with a 12-month growth of 22% or $19.1 million to $106.2 million [7] - The Enterprise Division revenue grew 22% or $8.8 million to $48.1 million, driven by strong subscription sales [11] - The Education Division saw a revenue increase of 56% or $4.2 million to $11.7 million in Q1 [21] Market Data and Key Metrics Changes - Revenue in North America for the Enterprise Division grew 22% or $6 million to $33.4 million in Q1 [17] - International direct office revenue grew 24% in Q1 compared to the previous year, despite ongoing pandemic challenges in certain regions [18] - The number of Leader in Me schools increased to 706, up from 560 in the previous year [20] Company Strategy and Development Direction - The company aims to transition its entire business model to be increasingly subscription-based, expecting subscription services to account for approximately 90% of sales in North America over the next three years [30][32] - The focus on expanding the All Access Pass and related subscription services is a key strategic initiative [29] - The company is investing in technology and content to enhance its offerings, including the Strive platform, which aims to improve customer engagement and service delivery [49][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the All Access Pass and related sales, anticipating continued growth in revenue and adjusted EBITDA [53][55] - The company expects to generate adjusted EBITDA between $34 million and $36 million for FY22, reflecting a 25% increase compared to FY21 [53] - Management noted that the pandemic has accelerated certain trends, leading to strong performance in both the Enterprise and Education Divisions [17][50] Other Important Information - The company ended the quarter with $66 million in total liquidity, consisting of $51 million in cash and $15 million in undrawn credit [15] - The balance of deferred subscription revenue grew 19% to $67.8 million, indicating strong future revenue visibility [23] Q&A Session Summary Question: What were the big surprises in Q1 performance? - Management noted that the number of education coaching sessions delivered exceeded expectations, positively impacting margins [61] Question: Why was guidance not updated higher despite strong Q1 results? - Management decided to wait until the end of Q2 to reassess guidance for better visibility into the fourth quarter [64][65] Question: What investments are being made in marketing efforts? - The company plans to add net 30 client partners this year and is undergoing a branding project to enhance market presence [67][69] Question: Update on the Strive platform launch? - The Strive platform is on track, with Phase 2 currently underway, aiming for a full launch later this year [71] Question: What is the growth split between new logos and pass expansion? - New logos contributed significantly to growth, with a 23% increase in new logos in the Enterprise Division [78]

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, 2021 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 £ £ Indicate the number of shares outstanding of each of the issuer's classes of Common Stock as of the latest practicable date: 14,297,151 shares of Common Stock as of December 31, 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ Form 10-K __________________ þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED AUGUST 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___ TO ___ Franklin Covey Co. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | |-------------------------- ...

Franklin Covey Co. (NYSE:FC) Q4 2021 Earnings Conference Call November 9, 2021 5:00 PM ET Company Participants Derek Hatch – Corporate Controller Paul Walker – President and Chief Executive Officer Steve Young – Chief Financial Officer and Corporate Secretary Bob Whitman – Chairman and Executive Chair Sean Merrill Covey – President, Education Division Jen Colosimo – President, Enterprise Division Conference Call Participants Andrew Nicholas – William Blair Alex Paris – Barrington Research Marco Rodriguez – ...

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, 2021 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file no. 1-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) 2200 West Parkway Boulevard 8411 ...

Franklin Covey Co. (NYSE:FC) Q3 2021 Earnings Conference Call June 30, 2021 5:00 PM ET Company Representatives Bob Whitman - Chairman, Chief Executive Officer Steve Young - Chief Financial Officer Paul Walker - President, Chief Operating Officer Sean Merrill Covey - President, Franklin Covey Education Jen Colosimo - President, Enterprise Division Derek Hatch - Corporate Controller Conference Call Participants Andrew Nicholas - William Blair Jeff Martin - ROTH Capital Partners Marco Rodriguez - Stonegate Cap ...

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, 2021 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file no. 1-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) 2200 West Parkway Boulevard ...

Investor Update Second Quarter ~ Fiscal Year 2021 1 Forward-looking Statements / Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties including, but not limited to: The ability of the Company to stabilize and grow revenues; The acceptance of, and renewal rates for our subscription offerings, includ ...