- Franklin Covey (FC +9.7%) reported Q1 net sales increase of 12.3% Y/Y to $53.83M, reflecting growth in both Enterprise and Education divisions.
- Sales by segments: Enterprise Division $42.1M (+12% Y/Y) and Education Division $10.3M (NYSE:MMM) (+13% Y/Y).
- Subscription and subscription-related revenue grew 36% Y/Y to $27.8M; balance of billed deferred subscription revenue grew 32% Y/Y to $41.4M; and balance of unbilled deferred subscription revenue increased 50% Y/Y to $24.4M.
- Q1 Overall gross margin declined by 25 bps to 68.3%.
- Adj. EBITDA increased 426.4% Y/Y to $3.17M and margin improved by 463 bps to 5.9%.
- SG&A expenses were $33.6M (+4.2% Y/Y) and margin 62.4% down by 490 bps.
- Cash flows from operating activities of $8.1M, an increase of 248% Y/Y. Company has cash $11.1M as of November 30. 2018.
- FY19 Outlook: Adj. EBITDA $18-22M; Deferred revenue $30-34M and net cash generated $18-22M.
- Previously: Franklin Covey beats by $0.09, beats on revenue (Jan. 9)
- Slides
- Now read: Franklin Covey Company 2019 Q1 - Results - Earnings Call Slides
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