SALT LAKE CITY, May 14 /PRNewswire/ -- Franklin Covey Co. (NYSE: FC)
announced today preliminary results for the third quarter that will end on
May 31, 1998. The Company expects to report $105 to $110 million in sales for
the quarter with earnings between $0.01 and $0.05 per share. The expected
revenues and earnings are lower than previous expectations and are due
primarily to slower product sales.
Jon H. Rowberry, CEO and President of the Company, said, "We began to
notice slower product sales at the end of the second quarter and that trend
has continued. We now expect same store sales for the third quarter to be
down 6% to 8% from the previous year. We believe there has been a shift to
using corporate stationers and mass market retail channels for planner product
purchases, and we have historically stayed away from those channels. We
initiated a change in that strategy with our January announcement of an
alliance with At-A-Glance to more aggressively service the corporate market,
and are in the planning stages for other initiatives and alliances that will
make our products more readily available to the consumer market. Our customer
satisfaction levels remain extremely high, and we believe our revenue growth
will resume with the implementation of these programs at the end of this
calendar year."
John L. Theler, Chief Financial Officer for the Company, said, "This is a
significant change from our financial forecast against which we have been
measuring ourselves. We expect that there will be continued softness in
product sales during the fourth quarter. We now expect that our sales for the
fiscal 1998 year will be between $540 and $550 million and earnings between
$1.60 and $1.65 per share, after the effect of the $0.08 per share charge for
the change in accounting principle taken earlier in the year. We expect to
release final third quarter results before the end of June."
This announcement contains forward-looking statements that necessarily are
based on certain assumptions and are subject to certain risks and
uncertainties, including the effects of competition, lack of market acceptance
of new products or services, failure to gain market share in target markets
and other factors identified and discussed in the Company's 1997 10-K and
subsequent 10-Q reports filed with the Securities Exchange Commission. There
can be no assurance that the Company's actual future performance will meet the
Company's expectations. These forward-looking statements are based on
management's expectations as of the date hereof, and are based on factors that
may cause future results to differ materially from the Company's current
expectations.
Franklin Covey is the leading global provider of leadership development
and productivity services and product solutions based on proven principles.
More than 15 million individuals use Franklin Covey's agendas, organizers and
planners, and its training products and related materials are printed in 28
languages throughout the world. Franklin Covey trains in excess of 750,000
participants annually in training seminars teaching principles to help them
achieve "What Matters Most".
SOURCE Franklin Covey Co.
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Related links:
http://www.franklincovey.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 107086
CONTACT:
Jon H. Rowberry, CEO and President, or John
L. Theler, Chief Financial Officer, or Richard R. Putnam,
Investor Relations, all of Franklin Covey Co., 801-975-1776
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