SALT LAKE CITY, Dec. 29 /PRNewswire/ -- Franklin Covey Co. (NYSE: FC)
today announced sales and earnings for its fiscal 1998 first quarter ended
November 30, 1997. Sales for the quarter were $143.9 million, a 41% increase
compared to the first quarter of fiscal 1997. Earnings before cumulative
change in accounting principle reached $13.6 million, up 5% from $13.0 million
for the comparable quarter in fiscal 1997, or $0.53 per share compared to
$0.62 per share. The lower earnings per share were due to a higher share
count resulting from the May 30, 1997 merger with Covey Leadership Center.
Net income of $11.5 million, or $0.45 per share, reflects an after-tax charge
of $2.1 million or $0.08 per share resulting from the recent Financial
Accounting Standards Board (FASB) change of accounting rules regarding
capitalization of reengineering costs.
On November 20, 1997, the FASB's Emerging Issues Task Force issued a
consensus ruling, which requires that certain "business process reengineering
and information technology transformation" costs that companies have
previously capitalized now have to be expensed as incurred. Any previously
capitalized costs of this nature must also be written off as a cumulative
adjustment in the quarter containing November 20, 1997.
Product sales reached $90.0 million, up 20% from the comparable quarter
last year. Product sales included $2.5 million in sales from Premier School
Agendas, an acquisition effective March 1, 1997. The Company opened seven new
stores during the quarter, which brings the total to 117 stores in 38 states
and the District of Columbia. The Company plans to open an additional 10 to
15 stores during the remainder of fiscal 1998. Comparative stores sales grew
10% during the quarter, attributable in part to the additional "7 Habits"
product line. Training sales increased 122% during the quarter to reach
$45.8 million compared to $20.7 million for the same quarter last year.
Training sales' increase included revenues from 7 Habits, and Principle-
Centered Leadership training and from True North, a coaching company acquired
in October of 1996. Printing service sales were $8.1 million compared to
$6.8 million in the first quarter of fiscal 1997.
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 has more than 12 million books
in print with more than 1.5 million being sold each year. Business Week
magazine listed Franklin Covey's, "The 7 Habits of Highly Effective People" as
the #1 best selling trade business book for the year 1996. A new title, "The
7 Habits of Highly Effective Families," released on October 1, 1997 has
already hit the best-seller list. Franklin Covey has more than 14,000
licensed client facilitators teaching its curriculum within their
organizations and trains in excess of 750,000 participants annually in
training seminars teaching principles to help them become more effective.
Franklin Covey Co.
Consolidated Condensed Statements of Income
(in thousands, except per share amounts)
Three Months Ended
November 30,
1997 1996
(unaudited)
Sales $143,919 $102,377
Cost of sales 56,650 43,275
Gross margin 87,269 59,102
Selling, general
and administrative 55,250 33,607
Depreciation and amortization 7,384 3,774
Income from operations 24,635 21,721
Interest income 359 227
Interest expense (1,727) (152)
Income before provision for
income taxes and cumulative
change in accounting principle23,267 21,796
Provision for income taxes 9,656 8,772
Income before cumulative change
in accounting principle 13,611 13,024
Cumulative change in
accounting principle,
net of tax 2,080 ---
Net Income $11,531 $13,024
Income per share
before cumulative adjustment $0.53 $0.62
Cumulative change in
accounting adjustment 0.08 ---
Net income per share $0.45 $0.62
Weighted average number
of common and common
equivalent shares 25,537 20,909
Sales Detail:
Product $90,015 $74,933
Training 45,844 20,667
Services 8,060 6,777
Total Sales $143,919 $102,377
SOURCE Franklin Covey Co.
 back to top
Related links:
http://www.franklincovey.com
CONTACT:
Jon H. Rowberry, President, or John L.
Theler, Chief Financial Officer, or Richard R. Putnam, Investor
Relations, 801-975-1776, all of Franklin Covey Co.
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
107086
|
