Franklin Covey Co (FC) has reported 0.74 percent rise in profit for the quarter ended Aug. 31, 2016. The company has earned $7.73 million, or $0.55 a share in the quarter, compared with $7.67 million, or $0.46 a share for the same period last year. Revenue during the quarter dropped 3.87 percent to $64.83 million from $67.44 million in the previous year period. Gross margin for the quarter expanded 142 basis points over the previous year period to 70.44 percent. Total expenses were 79.01 percent of quarterly revenues, down from 80.21 percent for the same period last year. This has led to an improvement of 120 basis points in operating margin to 20.99 percent.
Operating income for the quarter was $13.61 million, compared with $13.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.22 million compared with $17.27 million in the prior year period. At the same time, adjusted EBITDA margin contracted 59 basis points in the quarter to 25.02 percent from 25.60 percent in the last year period.
Bob Whitman, chairman and chief executive officer of Franklin Covey, commented, "Fiscal 2016 was a solid year of growth and progress in our business, including record operating cash flows and the return of over $43 million to our shareholders through purchases of stock. The growth of the All Access Pass exceeded our expectations for the fourth quarter and for fiscal 2016. We are pleased that reported Adjusted EBITDA, combined with the embedded Adjusted EBITDA within the increase in our deferred revenue, was within our original guidance for the fiscal year. As we continue to expand the All Access Pass offering, we are confident that the lifetime value of our customers will increase and provide growth in future periods."
Working capital drops significantlyFranklin Covey Co has witnessed a decline in the working capital over the last year. It stood at $35.68 million as at Aug. 31, 2016, down 36.04 percent or $20.11 million from $55.79 million on Aug. 31, 2015. Current ratio was at 1.66 as on Aug. 31, 2016, down from 2.41 on Aug. 31, 2015.
Debt increases substantially
Franklin Covey Co has witnessed an increase in total debt over the last one year. It stood at $38.67 million as on Aug. 31, 2016, up 48.28 percent or $12.59 million from $26.08 million on Aug. 31, 2015. Total debt was 20.26 percent of total assets as on Aug. 31, 2016, compared with 13 percent on Aug. 31, 2015. Debt to equity ratio was at 0.41 as on Aug. 31, 2016, up from 0.21 as on Aug. 31, 2015. Interest coverage ratio deteriorated to 26.02 for the quarter from 28.40 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
