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Nov 30, 2019
FranklinCovey Q1 2020 Earnings Report
Franklin Covey had a strong start to fiscal year 2020 with net sales increasing and strong growth in both the Enterprise and Education Divisions.
Key Takeaways
Franklin Covey reported a strong first quarter for fiscal year 2020, with a 9% increase in net sales to $58.6 million and a 57% increase in Adjusted EBITDA to $5.0 million. The company saw growth in both the Enterprise and Education Divisions and reaffirmed its fiscal year 2020 Adjusted EBITDA guidance.
Net sales increased by 9% to $58.6 million, driven by growth in both Enterprise and Education Divisions.
Subscription and subscription-related sales grew by 21% compared to the prior year.
Gross profit increased by 14% to $42.0 million, with gross margin improving to 71.7%.
Adjusted EBITDA increased by 57% to $5.0 million.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.com Forward Guidance
The Company reaffirms its previously announced Adjusted EBITDA guidance for fiscal 2020, which is expected to be in the range of $27 million to $32 million, excluding the impact of foreign exchange, which represents growth of 31% to 55% over fiscal 2019.
Positive Outlook
- Adjusted EBITDA is expected to be in the range of $27 million to $32 million.
- Guidance excludes the impact of foreign exchange.
- Represents growth of 31% to 55% over fiscal 2019.
- Company reaffirms its previously announced Adjusted EBITDA guidance for fiscal 2020.
- Strong growth in sales and gross profit.
Challenges Ahead
- Guidance excludes the impact of foreign exchange.
- General economic conditions.
- Renewals of subscription contracts.
- The impact of new sales personnel.
- Market acceptance of new products or services, including new AAP portal upgrades.
Revenue & Expenses
Visualization of income flow from segment revenue to net income