Franklin Covey Company · NYSE:FC

Franklin Covey — Q4 2023 Earnings Presentation

48 slides from Franklin Covey's earnings presentation, Nov 1, 2023

  1. Slide 1: © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL

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  19. Slide 19: Increased Focus

    INCREASED FOCUS ▪ ▪ ▪ © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 19

  20. Slide 20: Increased Focus

    INCREASED FOCUS ▪ ▪ ▪ © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 20

  21. Slide 21: Increased Focus

    INCREASED FOCUS ▪ ▪ ▪ © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL 21

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  25. Slide 25: Cash Flows from Operating Activities

    YEAR ENDED AUGUST 31, 2023 2022 2021 In thousands CASH FLOWS FROM OPERATING ACTIVITIES Net i ncome $ 17,781 $ 18,430 $ 13,623 Adjus tments to reconci l e net i ncome to net ca s h provi ded by opera ti ng a cti vi ti es : Depreci a ti on a nd a morti za ti on 8,613 10,169 11,196 Amorti za ti on of c

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  34. Slide 34: Sales Balance Sheet Roll-Forward of Deferred Subscription Revenue

    FY 2021 FY 2022 FY 2023 FY2018 FY2019 FY2020 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2023 Sales Reported Net Sales 209.8 225.4 198.5 48.3 48.2 58.7 68.9 224.2 61.3 56.6 66.2 78.8 262.8 69.4 61.8 71.4 78.0 280.5 Change in Deferred Revenue 11.4 8.3 2.4 (3.6) 1.6 (3.2) 21.7 16.5 (9.3) 2.6 (

  35. Slide 35: © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL

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  36. Slide 36: Reconciliation of Net Income to Adjusted EBITDA

    Quarter Ended Fiscal Year Ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted EBITDA: Net income $ 6,812 $ 5,578 $ 17,781 $ 18,430 Adjustments: Interest expense, net 122 383 492 1,610 Income tax provision 3,634 2,702 8,088 3,634 Amortization

  37. Slide 37: Sales by Division/Segment

    Quarter Ended Fiscal Year Ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 Sales by Division/Segment: Enterprise Division: Direct offices $ 49,827 $ 49,807 $ 194,021 $ 183,845 International licensees 2,597 2,355 11,645 10,551 52,424 52,162 205,666 194,396 Education Division 24,1

  38. Slide 38: Balance Sheet

    August 31, August 31, August 31, August 31, 2023 2022 2023 2022 Assets Current assets: Liabilities and Shareholders' Equity Cash and cash equivalents $ 38,230 $ 60,517 Current liabilities: Accounts receivable, less allowance for Current portion of notes payable $ 5,835 $ 5,835 doubtful accounts of $

  39. Slide 39: Income Statement

    Quarter Ended Fiscal Year Ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 Net sales $ 77,955 $ 78,806 $ 280,521 $ 262,841 Cost of sales 18,650 19,739 67,031 60,929 Gross profit 59,305 59,067 213,490 201,912 Selling, general, and administrative 46,525 48,027 178,516 168,069 Depr

  40. Slide 40: Cash Flows and Free Cash Flow

    YEAR ENDED AUGUST 31, 2023 2022 In thousands CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 17,781 $ 18,430 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,613 10,169 Amortization of capitalized curriculum development costs 3,084 3

  41. Slide 41: Non-GAAP 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 41

  42. Slide 42: © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL

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  43. Slide 43: Enterprise Division Sales Detail

    Fiscal 2023 Fiscal 2022 Fiscal 2021 Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 AAP Sales $99.3 $89.0 $74.0 $26.1 $25.4 $24.1 $23.8 $25.2 AAP Add on Sales* 58.7 55.5 38.5 15.6 16.0 11.3 15.8 15.1 Total AAP and Related 158.0 144.5 112.5 41.7 41.3 35.4 39.6 40.3 Percent of AAP and Related Sales to Total Enterp

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