FranklinCovey Q1 2020 Earnings Report
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
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