SALT LAKE CITY, May 12 /PRNewswire-FirstCall/ -- FranklinCovey (NYSE: FC)
announced that its Board of Directors has approved an action that effectively
extends the due date and reduces the annual interest rate for its Management
Stock Purchase Program loans to non-executive officers. The due date has
effectively been extended from March 30, 2005 to the earlier of March 30, 2008
or the date after March 30, 2005 on which the closing price of the Company's
stock is sufficient to enable loan participants to retire their loans with the
stock that they purchased pursuant to the program. The interest rate on the
loans will be effectively reduced from 9.365% to 3.160% per annum. These
changes are effective May 7, 2004.
Loan participants remain obligated to repay principal and accrued interest
upon the due date of the loans. With six consecutive quarters of substantial
operating improvements and an improving general economic forecast, the Company
believes that these actions will enhance the Company's ability to collect and
the participants' ability to pay the loan balances.
About FranklinCovey
FranklinCovey is a leading learning and performance services firm
assisting professionals and organizations in measurably increasing their
effectiveness in leadership, productivity, communication and sales. Clients
include 91 of the Fortune 100, more than three-quarters of the Fortune 500,
thousands of small and mid-sized businesses, as well as numerous government
entities. Organizations and professionals access FranklinCovey services and
products through consulting services, licensed client facilitators, one-on-one
coaching, public workshops, catalogs, more than 140 retail stores, and
http://www.franklincovey.com. Nearly 2,000 FranklinCovey associates provide
professional services and products in 39 offices in 95 countries.
Safe-Harbor Statement
This announcement contains forward-looking statements that necessarily are
based on certain assumptions and are subject to certain risks and
uncertainties. The ability to collect, and participants to repay, the loans
will depend in part on a significant increase in the trading price of the
Company's Common Stock, which in turn depends to some extent on improvements
in the business performance of the Company. These results are subject to
certain risks and uncertainties, including the ability of the Company to
stabilize revenues, the ability of the Company to continue to recognize cost
savings, the impact of the modification of the Management Stock Purchase
Program loans on the financial statements of the Company, general economic
conditions, competition in the Company's targeted market place, market
acceptance of new products or services, increases or decreases in the
Company's market share, growth or contraction of the overall market for the
products offered by the Company and its competitors, changes in the training
and spending policies of the Company's clients, and other factors identified
and discussed in the Company's 2003 10-K report and subsequent reports filed
with the Securities and Exchange Commission, many of which are beyond the
control or influence of the Company. There can be no assurance that the
Company's actual future performance will meet management's expectations. These
forward-looking statements are based on management's expectations as of the
date hereof, and are subject to the outcome of various factors, including
those listed above, any one of which may cause future results to differ
materially from the Company's current expectations.
SOURCE Franklin Covey
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Related links:
http://www.franklincovey.com
CONTACT:
Richard R. Putnam, Investor Relations of
Franklin Covey, +1-801-817-1776
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