Franklin Covey(FC)2025-01-10 17:10Revenue and Income - Consolidated revenue for the quarter ended November 30, 2024, increased 1% to 68.4 million in the prior year, driven by an 11% growth in the Education Division [56]. - Net income for the first quarter of fiscal 2025 was 0.09 per diluted share, down from 0.36 per diluted share, in the prior year [59]. - Adjusted EBITDA for the quarter was 11.0 million in the first quarter of fiscal 2024; in constant currency, it was 16.5 million, attributed to a new state-wide initiative and increased membership subscription revenues [59]. - Adjusted EBITDA for the Education Division improved to 110,000 in the prior year, reflecting a significant increase in profitability [72]. Expenses and Cash Flow - Operating expenses increased by 3.0 million rise in SG&A expenses related to new personnel and restructuring efforts [59]. - Cash flows from operating activities totaled 17.4 million in the prior year, mainly due to reduced operating income [65]. - Cash provided by operating activities was 17.4 million in the same quarter of the prior year [82]. Liquidity and Capital Expenditures - At November 30, 2024, the company had over 53.3 million in cash and a 115 million, consisting of 62.5 million undrawn revolving credit facility [78]. - Capital expenditures for curriculum development are expected to total 1.4 million already spent in the first quarter [85]. International Performance - International Direct Office revenues decreased by 18% in China and 16% in Japan, partially offset by a 20% increase in Australia [66]. - International licensee revenue decreased by 7%, or 3.203 million for the quarter ended November 30, 2024, compared to 3.423 million in the prior year [69]. - SG&A expenses for the International Licensees segment rose to 1.220 million, representing 38.1% of sales, compared to 0.3 million in cash and $0.2 million of forgiven receivables, indicating a strategic move to expand operations in that market [87]. - The company anticipates future revenue levels and financial results, including expected increases in add-on subscription services revenue [99]. - The company expects to maintain adequate capital for operations for at least the upcoming 12 months [99]. - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially [102]. Risks and Market Conditions - The company faces risks including cybersecurity risks, inflation, and competition that may impact future performance [100]. - The market price of the company's common stock has been volatile, influenced by quarter-to-quarter variations in revenues and earnings [101]. - There have been no significant changes to previously disclosed estimates or critical accounting policies [95]. - The company did not utilize any foreign currency or interest rate derivative instruments during the quarter ended November 30, 2024 [105].