SALT LAKE CITY, Dec. 21 /PRNewswire/ -- Franklin Covey Co. (NYSE: FC)
today announced financial results for its fiscal 1999 first quarter ended
November 28, 1998. The Company reported earnings of $0.50 per share
($10.9 million) compared to $0.45 per share ($11.5 million) in the prior year.
The prior year's first quarter results included an after-tax charge of
$2.1 million or $0.08 per share, resulting from the Financial Accounting
Standards Board (FASB) change of accounting rules regarding capitalization of
reengineering costs associated with the Company's reengineering project
started in fiscal 1997. Sales for the first quarter of fiscal 1999 were
$140.4 million, a 2% decrease compared to the first quarter of fiscal 1998.
Consumer Product sales were $74.6 million, the same level as in fiscal
1998. The Company opened three new stores during the quarter, bringing the
total to 123 stores in 38 states and the District of Columbia. Comparative
stores sales declined 2% during the quarter. Training and Education sales
decreased 8% during the quarter to $42.8 million compared to $46.5 million for
the same quarter last year. International sales during the quarter were
$14.7 million, a 20% increase compared to $12.3 million in the first quarter
of fiscal 1998. Other sales, including printing services, were $8.2 million
for the quarter compared to $10.6 million for the same quarter of fiscal 1998.
The Company announced the repurchase of 1,116,000 shares of its common
stock during the quarter ended November 28, 1998, at an average price of
$18.75 per share. The Company has board authorization to repurchase up to
another 1,992,000 shares.
Franklin Covey Co. also announced today the completion of a reorganization
of the Company's operating structure into three Strategic Business Units and
four Support Units. The three Strategic Business Units announced are Consumer
Products Business, Training and Education Business and International Business.
The Consumer Products Business is responsible for distribution of the
Company's products through retail stores, catalog sales, wholesale channels,
mass markets and the Internet. Gordon Wilson was named President of this
Business. The Training and Education Business, which will include Personal
Coaching and Premier School Agendas, is responsible for delivery of products
and consulting, training and implementation services to corporations,
business, government and educational institutions. Stephen M.R. Covey was
named President of this Business. The International Business is responsible
for product and services delivered outside the United States. Kevin Cope was
appointed President of this Business. Leadership for the Support Units,
Manufacturing and Distribution, Legal, Finance and Information Systems will
remain as previously organized.
Commenting on the organizational changes, Jon H. Rowberry, Chief Executive
Officer, said, "With the anticipated speed of change and development in the
market, we felt the need to be aligned in a way that facilitated a more
entrepreneurial approach to our clients' needs. Although significant
synergies between our Consumer Product and our Training and Education
Businesses still exist, the need for separately defined and carefully executed
strategies in each has become more apparent. In the same way, the development
of our international presence demands a separate focus. We expect this
reorganization to allow us to grow more rapidly and to more quickly meet the
developing needs of our clients."
Franklin Covey is the 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 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."
FRANKLIN COVEY CO.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Quarter Ended
November 28, November 30,
1998 1997
(unaudited)
Sales $140,362 $143,919
Cost of sales 53,931 56,650
Gross margin 86,431 87,269
Selling, general and administrative 56,421 55,250
Depreciation 4,645 3,701
Amortization 4,390 3,683
Income from operations 20,975 24,635
Interest income 362 359
Interest expense (2,522) (1,727)
Income before provision for income taxes 18,815 23,267
Provision for income taxes 7,902 9,656
Earnings prior to cumulative adjustment 10,913 13,611
Cumulative change in accounting adjustment 2,080
Net income $10,913 $11,531
Net income per share (Diluted)
after cumulative accounting adjustment $0.50 $0.45
Weighted average number of common and
common equivalent shares (Diluted) 21,751 25,537
Sales Detail:
Consumer Products $74,613 $74,632
Training and Education 42,848 46,463
International 14,701 12,270
Other 8,200 10,554
Total Sales $140,362 $143,919
Fiscal 1998 Sales Recast Q1 Q2 Q3 Q4 Total
Consumer Products 74,632 77,742 43,967 54,260 250,601
Training and Education 46,463 42,161 43,009 83,752 215,385
International 12,270 10,777 11,377 10,646 45,070
Other 10,554 7,884 9,189 7,929 35,556
Total 143,919 138,564 107,542 156,587 546,612
SOURCE Franklin Covey Co.
 back to top
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
|
