SALT LAKE CITY, June 22 /PRNewswire/ -- Franklin Covey (NYSE: FC)
announced today sales and earnings for the quarter ended May 29, 1999. The
Company reported sales of $109.3 million compared to $107.5 million for the
same quarter in fiscal 1998. Franklin Covey reported a loss of $4.6 million
for the third quarter's earnings results 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 were a loss of $0.22 per share compared to income
of $0.02 per share for the third quarter of fiscal 1998. The results were in
line with the May 28, 1999, earnings forecast for the quarter that the Company
had issued prior to the quarter's ending and reflect the inventory write-off
discussed in that press release.
Consumer Product sales were $49.4 million, up 9% from the same quarter of
fiscal 1998 as a result of strong comparative store sales and increased
contract stationer sales. Same retail store sales increased 6% during the
quarter compared to last year. The same store sales increase was due
primarily to strong electronic solutions sales led by the Palm(R) electronic
planner, manufactured by 3COM, and bundled with the Franklin Planner Software.
Training and Education sales were $41.2 million, down from $41.6 million for
the same quarter in fiscal 1998. International sales were $11.2 million for
the quarter, compared to $11.4 million for the same quarter of fiscal 1998.
Other printing service sales of $7.5 million made up the balance.
Sales for the first nine months of fiscal 1999 were $386.7 million
compared to $390.0 million for the same nine month period of fiscal 1998.
Earnings decreased to $12.9 million, down from $24.5 million for the same nine
month period of last year due primarily to higher operating expenses and the
inventory write-off discussed above. Diluted earnings per share for the first
nine months of Fiscal 1999 were $0.60 compared to $0.97 for the same period of
the prior year.
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."
FRANKLIN COVEY CO.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 29, May 31, May 29, May 31,
1999 1998 1999 1998
(unaudited) (unaudited)
Sales $109,267 $107,542 $386,718 $390,025
Cost of sales 50,745 42,728 162,638 152,874
Gross margin 58,522 64,814 224,080 237,151
Selling, general
and administrative 54,647 53,825 167,168 163,283
Depreciation 5,295 4,403 14,719 12,691
Amortization 4,708 4,183 13,716 11,571
Income (loss)
from operations (6,128) 2,403 28,477 49,606
Interest expense (1,794) (1,600) (6,279) (4,233)
Income (loss) before
provision for income taxes (7,922) 803 22,198 45,373
Provision for income taxes (3,327) 333 9,323 18,830
Cumulative change
in accounting principle
- net of tax (2,080)
Net income (loss) $(4,595) $470 $12,875 $24,463
Earnings (loss) per share:
Basic $(0.22) $0.02 $0.61 $1.00
Diluted $(0.22) $0.02 $0.60 $0.97
Weighted average
common shares:
Basic 20,522 24,040 21,252 24,522
Diluted 20,687 24,732 21,461 25,227
Sales Detail:
Consumer Product $49,366 $45,393 $207,192 $203,211
Training and Education 41,237 41,586 116,886 124,765
International 11,213 11,376 39,922 34,423
Other 7,451 9,187 22,719 27,627
Total Sales $109,267 $107,542 $386,719 $390,026
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, of Franklin Covey Co., 801-975-1776
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