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Free Research Report as Franklin’s Sales Surged 20% and Net Loss Narrowed

LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free earnings report on Franklin Covey Co. (NYSE: FC) ("Franklin"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FC. The Company reported its first quarter fiscal 2018 operating and financial results on January 04, 2018. The corporate training and consulting Company surpassed top- and bottom-line expectations and reiterated its adjusted EBITDA guidance for the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Franklin Covey most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=FC

Earnings Highlights and Summary

For the quarter ended November 30, 2017, Franklin's consolidated revenue jumped 20% to $47.9 million compared to $39.8 million in Q1 FY17. The improvement in sales was primarily driven by the recognition of high-margin subscription revenues. In addition, the Company's sales were also favorably impacted by the acquisition of businesses in H2 FY17; a large intellectual property contract that was obtained in the reported quarter; increased onsite presentation revenues; and increased Education Division revenues. Franklin's revenue numbers topped analysts' estimates of $43.5 million.

During Q1 FY18, Franklin invoiced $12.3 million of All Access Pass (AAP) contracts and $5.1 million of related materials compared to $7.1 million of AAP contracts and $6.4 million of related products in Q1 FY17. At November 30, 2017, the Company had $15.9 million of unbilled deferred revenue.

During Q1 FY18, Franklin's gross profit was $32.9 million compared to $25.3 million in Q1 FY17. The Company's gross margin increased to 68.6% of sales for the reported quarter versus 63.6% of sales in the year earlier same quarter.

For Q1 FY18, Franklin's operating expenses increased by $5.4 million on a y-o-y basis, primarily due to an increase in selling, general, and administrative expenses (SG&A) of $4.7 million to $33.82 million, and an increase in amortization expenses of $0.7 million to $1.40 million. The increase in SG&A was primarily attributed to increased associate costs resulting from new sales and sales related personnel; increased commission expenses on higher sales; and $1.2 million of increased expense associated with the change in fair value of contingent consideration liabilities from previous business acquisitions. The increase in amortization expenses was due to the amortization of intangible assets acquired in business combinations which occurred in H2 FY17.

Franklin reported a loss from operations of $3.3 million for Q1 FY18 compared to a loss from operations of $5.4 million in Q1 FY17. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $0.6 million for the reported quarter versus a loss of $2.8 million in the year earlier comparable quarter.

Franklin posted a net loss of $2.39 million in Q1 FY18 compared to a net loss of $3.96 million in Q1 FY17. On a per share diluted basis, the Company posted a net loss of $0.17 versus a net loss of $0.29 for the year ago corresponding period. The Company's net loss was lower than Wall Street's estimates for a loss of $0.33 per share.

Cash Matters

Franklin's balance sheet and liquidity position remained healthy through Q1 FY18. The Company had $8.1 million of cash at November 30, 2017, compared to $8.9 million at August 31, 2017. At November 30, 2017, Franklin had $21.0 million of available borrowing on its revolving line of credit facility.

Fiscal 2018 Outlook

Based on anticipated increases in its Subscription as a Service (SaaS) business, Franklin reaffirmed its earlier announced adjusted EBITDA guidance for the fiscal year 2018, which is expected to be in the range of $10 million to $15 million.

Stock Performance Snapshot

January 16, 2018 - At Tuesday's closing bell, Franklin Covey's stock dropped 4.60%, ending the trading session at $29.05.

Volume traded for the day: 112.08 thousand shares, which was above the 3-month average volume of 44.06 thousand shares.

Stock performance in the last month – up 55.76%; previous three-month period – up 47.46%; past twelve-month period – up 61.39%; and year-to-date – up 40.00%

After yesterday's close, Franklin Covey's market cap was at $350.63 million.

The stock is part of the Services sector, categorized under the Education & Training Services industry.

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