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Feb 28, 2022
FranklinCovey Q2 2022 Earnings Report
FranklinCovey's second quarter 2022 financial results were marked by sales growth and increased profitability.
Key Takeaways
Franklin Covey reported strong second-quarter results with an 18% increase in sales to $56.6 million, driven by subscription growth. Operating income rose to $3.5 million, and Adjusted EBITDA increased by 57% to $8.0 million. The company also increased its earnings guidance for fiscal year 2022.
Consolidated sales increased by 18% to $56.6 million compared to fiscal year 2021.
All Access Pass subscription and subscription services sales grew by 29% to $32.0 million.
Education Division revenues grew by 31%.
Operating income increased to $3.5 million and Adjusted EBITDA increased 57% to $8.0 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company increased its guidance for fiscal 2022 and now expects Adjusted EBITDA to total between $38.0 million and $39.0 million.
Positive Outlook
- Strong performance in the first and second quarters of fiscal 2022.
- Anticipated results for the remainder of the current fiscal year.
- Strength of the All Access Pass and Leader in Me membership subscriptions.
- Continued growth in the second half of fiscal 2022 and subsequent years.
- Company expects Adjusted EBITDA to total between $38.0 million and $39.0 million.
Challenges Ahead
- Growth trajectory in the third and fourth quarters is expected to be impacted by comparisons to prior year periods which were less impacted by the COVID-19 pandemic.
- Planned investments in the second half of fiscal 2022 for long-term growth.
- Costs associated with hiring new client partners to position the Company for sales growth in future periods.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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