SALT LAKE CITY, May 28 /PRNewswire/ -- Franklin Covey (NYSE: FC) provided
today a forecast for the quarter ending May 29, 1999. The Company is
estimating that sales for the quarter will be approximately $107 million
compared to $108 million for the same quarter in fiscal 1998. The Company
expects increased Consumer Product sales, but indicated that revenues in its
Training and Education business will continue to run behind last year. The
Company further noted that International sales were also below expectations.
Franklin Covey forecasted results for the third quarter to be a loss of
between $4 and $5 million compared to a $0.5 million profit in the comparable
quarter of fiscal 1998. Diluted earnings per share for the third quarter of
fiscal 1999 are expected to be a loss of $0.22 per share compared to $0.02 per
share gain for the third quarter of fiscal 1998.
Commenting on the quarter's forecast and the outlook for the remainder of
the year, John L. Theler, Chief Financial Officer, said, "The expected results
of the third quarter represent a combination of slightly lower sales and
narrower gross margins resulting from product mix shifts and more aggressive
discounting. Our operating expenses included additional expenses for the
development of new electronic solutions and the installation of a materials
management and inventory management software package. As a result of improved
inventory information, we have identified and written-off raw material
inventories that do not match current finished goods inventories. This
contributed to the lower gross margin for the quarter. We now anticipate that
we will earn between $1.05 and $1.10 per share for fiscal 1999, after giving
effect to the equity financing announced earlier this month."
Franklin Covey is a leading global provider of leadership development and
productivity services and product solutions based on proven principles. More
than 17 million individuals use Franklin Covey's agendas and planners, and its
training products and related materials are printed in 32 languages throughout
the world. Franklin Covey trains approximately 750,000 participants annually
in training seminars teaching principles to help them achieve "What Matters
Most."
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 1998 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.
SOURCE Franklin Covey Co.
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Related links:
http://www.franklincovey.com
Company News On-Call:
http://www.prnewswire.com/comp/107086.html or fax,
800-758-5804, ext. 107086
CONTACT:
Jon H. Rowberry, Chief Executive Officer,
John L. Theler, Chief Financial Officer, or Richard R. Putnam,
Investor Relations, all of Franklin Covey Co., 801-975-1776
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