Franklin Covey Company · NYSE:FC

Franklin Covey — Q1 2023 Earnings Presentation

46 slides from Franklin Covey's earnings presentation, Jan 5, 2023

Slide 34: Reconciliation of Net Income to Adjusted EBITDA
Quarter Ended November 30, November 30, 2022 2021 Reconciliation of net income to Adjusted EBITDA: Net income $ 4,667 $ 3,812 Adjustments: Interest expense, net 329 431 Income tax provision 1,396 1,302 Amortization 1,092 1,431 Depreciation 1,246 1,279 Stock-based compensation 2,735 1,649 Increase in
Slide 35: Sales, Gross Profit and Adjusted EBITDA by Division/Segment
Quarter Ended November 30, November 30, 2022 2021 Sales by Division/Segment: Enterprise Division: Direct offices $ 50,167 $ 45,119 International licensees 3,278 2,997 53,445 48,116 Education Division 14,350 11,697 Corporate and other 1,574 1,446 Consolidated $ 69,369 $ 61,259 Gross Profit by Divisio
Slide 36: Condensed Consolidated Balance Sheets
November 30, August 31, November 30, August 31, 2022 2022 2022 2022 Assets Liabilities and Shareholders' Equity Current assets: Current liabilities: Cash and cash equivalents $ 58,152 $ 60,517 Current portion of notes payable $ 5,835 $ 5,835 Accounts receivable, less allowance for Current portion of
Slide 37: Condensed Consolidated Income Statement
Quarter Ended November 30, November 30, 2022 2021 Net sales $ 69,369 $ 61,259 Cost of sales 16,627 13,661 Gross profit 52,742 47,598 Selling, general, and administrative 44,012 39,343 Depreciation 1,246 1,279 Amortization 1,092 1,431 Income from operations 6,392 5,545 Interest expense, net (329) (43
Slide 38: Cash Flows and Free Cash Flow
Quarter Ended November 30, November 30, 2022 2021 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,667 $ 3,812 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,338 2,710 Amortization of capitalized curriculum costs 843 7
Slide 39: Non-GAAP Measures Note
Note: Adjusted EBITDA and Operating SG&A are non-GAAP financial measures; please see Appendix for additional information. Amounts may not total due to rounding. © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 39
Slide 45: AAP Revenue Retention Rate Definition
• • • • • “AAP Revenue Retention Rate” is equal to the revenue from retained All Access Pass customers plus win backs, divided by the prior period total All Access Pass recuring revenue. © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 45

Franklin Covey Company — Q1 2023 Earnings Presentation on 6ix

Franklin Covey — Q1 2023 Earnings Presentation

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Slide 34: Reconciliation of Net Income to Adjusted EBITDA

Slide 35: Sales, Gross Profit and Adjusted EBITDA by Division/Segment

Slide 36: Condensed Consolidated Balance Sheets

Slide 37: Condensed Consolidated Income Statement

Slide 38: Cash Flows and Free Cash Flow

Slide 39: Non-GAAP Measures Note

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Slide 45: AAP Revenue Retention Rate Definition

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