Company Quick10K Filing
Franklin Covey
Price26.17 EPS-0
Shares14 P/E-71
MCap365 P/FCF14
Net Debt-11 EBIT-1
TEV355 TEV/EBIT-368
TTM 2019-05-31, in MM, except price, ratios
10-Q 2020-11-30 Filed 2021-01-08
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10-K 2013-08-31 Filed 2013-11-14
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10-K 2012-08-31 Filed 2012-11-14
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10-Q 2010-11-27 Filed 2011-01-06
10-K 2010-08-31 Filed 2010-11-12
10-Q 2010-05-29 Filed 2010-07-08
10-Q 2010-02-27 Filed 2010-04-08
10-Q 2009-11-28 Filed 2010-01-07
8-K 2021-02-18
8-K 2021-01-22 Shareholder Vote
8-K 2021-01-07 Earnings, Regulation FD, Exhibits
8-K 2020-12-22 Other Events
8-K 2020-11-01
8-K 2020-10-22
8-K 2020-07-09
8-K 2020-07-08
8-K 2020-06-25
8-K 2020-05-19
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8-K 2020-03-19
8-K 2020-01-23
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8-K 2019-11-07
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8-K 2018-06-14
8-K 2018-04-04
8-K 2018-03-22
8-K 2018-01-26
8-K 2018-01-04

FC 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation
Note 2 - Inventories
Note 3 - Receivables
Note 4 - Fair Value of Financial Instruments
Note 5 - Revenue Recognition
Note 6 - Stock - Based Compensation
Note 7 - Income Taxes
Note 8 - Loss per Share
Note 9 - Segment Information
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1A.Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 fc-20201130xex31_1.htm
EX-31.2 fc-20201130xex31_2.htm
EX-32 fc-20201130xex32.htm

Franklin Covey Earnings 2020-11-30

Balance SheetIncome StatementCash Flow
215172129864302012201420172020
Assets, Equity
7055402510-42012201420172020
Rev, G Profit, Net Income
151050-5-102012201420172020
Ops, Inv, Fin

fc-20201130x10q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2020

[   ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file no. 1-11107

Picture 1

FRANKLIN COVEY CO.

(Exact name of registrant as specified in its charter)

Utah

 

87-0401551

(State of incorporation)

 

(I.R.S. employer identification number)

 

2200 West Parkway Boulevard

 

84119-2099

Salt Lake City, Utah

 

(Zip Code)

(Address of principal executive offices)

 

 

Registrant’s telephone number,

 

(801) 817-1776

Including area code

 

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.05 Par Value

FC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past

90 days.  Yes T  No  £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  T  No  £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

£

Accelerated Filer

T

Non-accelerated Filer

£

Smaller Reporting Company

£

Emerging Growth Company

£

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  £  No  T

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock as of the latest practicable date:

14,036,458 shares of Common Stock as of December 31, 2020


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per-share amounts)

November 30,

August 31,

2020

2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

34,260 

$

27,137 

Accounts receivable, less allowance for doubtful accounts of $3,751 and $4,159

43,066 

56,407 

Inventories

2,675 

2,974 

Prepaid expenses and other current assets

15,430 

15,146 

Total current assets

95,431 

101,664 

Property and equipment, net

14,169 

15,723 

Intangible assets, net

45,996 

47,125 

Goodwill

24,220 

24,220 

Deferred income tax assets

1,028 

1,094 

Other long-term assets

15,516 

15,611 

$

196,360 

$

205,437 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of term notes payable

$

5,000 

$

5,000 

Current portion of financing obligation

2,670 

2,600 

Accounts payable

3,691 

5,622 

Deferred subscription revenue

55,681 

59,289 

Other deferred revenue

7,654 

7,389 

Accrued liabilities

21,902 

22,628 

Total current liabilities

96,598 

102,528 

Term notes payable, less current portion

13,750 

15,000 

Financing obligation, less current portion

13,350 

14,048 

Other liabilities

8,820 

9,110 

Deferred income tax liabilities

5,089 

5,298 

Total liabilities

137,607 

145,984 

Shareholders’ equity:

Common stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued

1,353 

1,353 

Additional paid-in capital

209,667 

211,920 

Retained earnings

49,076 

49,968 

Accumulated other comprehensive income

948 

641 

Treasury stock at cost, 13,028 shares and 13,175 shares

(202,291)

(204,429)

Total shareholders’ equity

58,753 

59,453 

$

196,360 

$

205,437 

See notes to condensed consolidated financial statements


2


 

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS

OF COMPREHENSIVE LOSS

(in thousands, except per-share amounts)

Quarter Ended

November 30,

November 30,

2020

2019

(unaudited)

Net sales

$

48,324 

$

58,613 

Cost of sales

11,938 

16,584 

Gross profit

36,386 

42,029 

Selling, general, and administrative

33,683 

39,399 

Depreciation

1,741 

1,619 

Amortization

1,131 

1,170 

Loss from operations

(169)

(159)

Interest income

24 

5 

Interest expense

(568)

(606)

Loss before income taxes

(713)

(760)

Income tax benefit (provision)

(179)

216 

Net loss

$

(892)

$

(544)

Net loss per share:

Basic and diluted

$

(0.06)

$

(0.04)

Weighted average number of common shares:

Basic and diluted

13,977 

13,982 

COMPREHENSIVE LOSS

Net loss

$

(892)

$

(544)

Foreign currency translation adjustments,

net of income tax benefit

of $0 and $0

307 

(37)

Comprehensive loss

$

(585)

$

(581)

See notes to condensed consolidated financial statements

3


 

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Quarter Ended

November 30,

November 30,

2020

2019

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(892)

$

(544)

Adjustments to reconcile net loss to net cash

provided by operating activities:

Depreciation and amortization

2,872 

2,789 

Amortization of capitalized curriculum costs

889 

1,029 

Stock-based compensation

1,158 

1,851 

Deferred income taxes

(111)

(115)

Change in fair value of contingent consideration liabilities

62 

91 

Amortization of right-of-use operating lease assets

259 

-

Loss on disposal of assets

-

35 

Changes in assets and liabilities, net of effect of acquired business:

Decrease in accounts receivable, net

13,482 

20,090 

Decrease in inventories

309 

328 

Decrease (increase) in prepaid expenses and other assets

(176)

656 

Decrease in accounts payable and accrued liabilities

(2,721)

(9,333)

Decrease in deferred revenue

(3,625)

(9,006)

Increase (decrease) in income taxes payable/receivable

(111)

(1,029)

Decrease in other long-term liabilities

(519)

(6)

Net cash provided by operating activities

10,876 

6,836 

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property and equipment

(185)

(1,408)

Curriculum development costs

(263)

(458)

Purchase of note receivable from bank

-

(2,600)

Net cash used for investing activities

(448)

(4,466)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from term notes payable

-

5,000 

Principal payments on term notes payable

(1,250)

(1,250)

Principal payments on financing obligation

(628)

(564)

Purchases of common stock for treasury

(1,530)

(3)

Payment of contingent consideration liabilities

(329)

(782)

Proceeds from sales of common stock held in treasury

256 

254 

Net cash provided by (used for) financing activities

(3,481)

2,655 

Effect of foreign currency exchange rates on cash and cash equivalents

176 

37 

Net increase in cash and cash equivalents

7,123 

5,062 

Cash and cash equivalents at the beginning of the period

27,137 

27,699 

Cash and cash equivalents at the end of the period

$

34,260 

$

32,761 

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$

403 

$

932 

Cash paid for interest

562 

580 

Non-cash investing and financing activities:

Purchases of property and equipment financed by accounts payable

$

20 

$

249 

Acquisition of right-of-use operating lease assets for operating lease liabilities

726 

-

Use of notes receivable to modify revenue contract

-

3,246 

See notes to condensed consolidated financial statements

4


 

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(in thousands and unaudited)

Accumulated

Common

Common

Additional

Other

Treasury

Treasury

Stock

Stock

Paid-In

Retained

Comprehensive

Stock

Stock

Shares

Amount

Capital

Earnings

Income

Shares

Amount

Balance at August 31, 2020

27,056 

$

1,353 

$

211,920 

$

49,968 

$

641 

(13,175)

$

(204,429)

Issuance of common stock from

treasury

(3,411)

236 

3,668 

Purchase of treasury shares

(89)

(1,530)

Stock-based compensation

1,158 

Cumulative translation

adjustments

307 

Net loss

(892)

Balance at November 30, 2020

27,056 

$

1,353 

$

209,667 

$

49,076 

$

948 

(13,028)

$

(202,291)

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY –

PRIOR FISCAL YEAR

(in thousands and unaudited)

Accumulated

Common

Common

Additional

Other

Treasury

Treasury

Stock

Stock

Paid-In

Retained

Comprehensive

Stock

Stock

Shares

Amount

Capital

Earnings

Income

Shares

Amount

Balance at August 31, 2019

27,056 

$

1,353 

$

215,964 

$

59,403 

$

269 

(13,087)

$

(194,975)

Issuance of common stock from