Franklin Covey(US:FC)2025-01-08 21:11Revenue 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]