Franklin Covey(US:FC)2024-11-06 21:30Financial 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]