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Feb 28, 2021
FranklinCovey Q2 2021 Earnings Report
FranklinCovey's operating income and Adjusted EBITDA exceeded expectations as Adjusted EBITDA increased by 26%.
Key Takeaways
FranklinCovey reported strong second quarter fiscal 2021 results driven by the continued success of its All Access Pass subscription model and the strength of its subscription business overall. The company's operating income and Adjusted EBITDA exceeded expectations, with Adjusted EBITDA increasing 26% to $5.1 million. Cash flows from operating activities increased 26% to $21.9 million in the first two quarters of fiscal 2021, and the company ended the quarter with $40.3 million in cash.
All Access Pass sales increased 13% in the second quarter of fiscal 2021.
Sales of All Access Pass related services in the second quarter were higher than add-on sales in the pre-pandemic second quarter.
Sales in international direct offices and international licensee partners continued to strengthen.
Booking trends in the Education Division strengthened in the quarter, even compared to last year’s second quarter.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.com Forward Guidance
The Company affirms its previously announced guidance and continues to expect Adjusted EBITDA to total between $20 million to $22 million in fiscal 2021.
Positive Outlook
- Strength of the All Access Pass and Leader in Me membership.
- Expected accelerated growth during fiscal 2021 and in the future.
- Company expects its results to continue to be strong throughout the remainder of the fiscal year.
- Company expects to generate significant growth in Adjusted EBITDA during the second half of fiscal 2021, and in future years.
- Company expects to generate significant growth in cash flow during the second half of fiscal 2021, and in future years.
Challenges Ahead
- General economic conditions.
- The severity and duration of global business disruptions from the COVID-19 outbreak.
- The ability of the Company to operate effectively during and in the aftermath of the COVID-19 pandemic.
- Expectations regarding the economic recovery from the pandemic.
- Market acceptance of new products or services, including new AAP portal upgrades.
Revenue & Expenses
Visualization of income flow from segment revenue to net income