UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
Date of
Report (Date of Earliest Event Reported):
January
13, 2009
FRANKLIN
COVEY CO.
(Exact
name of registrant as specified in its charter)
Commission
File No. 1-11107
|
Utah
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87-0401551
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|
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(State
or other jurisdiction of incorporation)
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(IRS
Employer Identification
Number)
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2200
West Parkway Boulevard
Salt
Lake City, Utah 84119-2099
(Address
of principal executive offices)(Zip Code)
Registrant’s
telephone number, including area code: (801) 817-1776
Former
name or former address, if changed since last report: Not Applicable
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
[
] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))
Item
2.02 Results of Operations and Financial
Condition
On
January 13, 2009, Franklin Covey Co. (the Company) announced its financial
results for the fiscal quarter ended November 29, 2008. A copy of the
earnings release is being furnished as exhibit 99.1 to this current report on
Form 8-K.
Certain
information in this Report (including the exhibit) is furnished pursuant to Item
2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
subject to the liabilities of that section, nor shall it be deemed incorporated
by reference in any filing made by the Company under the Securities Act of 1933,
as amended, or the Exchange Act, except as expressly set forth by specific
reference in such a filing.
Item
9.01 Financial Statements and Exhibits
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(d)
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Exhibits
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99.1
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Earnings
release dated January 13,
2009
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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FRANKLIN
COVEY CO.
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||||
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Date:
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July 13, 2009
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By:
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/s/ Stephen D.
Young
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Stephen D.
Young
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||||
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Chief Financial
Officer
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||||
Exhibit
99.1
60; |
2200
West Parkway Boulevard
Salt
Lake City, Utah 84119-2331
www.franklincovey.com
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Press
Release
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FRANKLINCOVEY
ANNOUNCES FISCAL 2009 FIRST QUARTER RESULTS
Salt Lake City, Utah – January
13, 2009 – Franklin Covey Co. (NYSE: FC), a global provider of leadership and
productivity-based training and consulting services, today announced financial
results for its fiscal first quarter ended November 29,
2008. Reported net sales for the quarter totaled $35.1 million,
compared to $73.6 million in the first quarter of fiscal 2008. The
vast majority of this decline was attributable to the sale of CSBU operations
and the resulting reduction in product sales. The net loss totaled
$0.6 million, or $(0.04) per share, compared to net income of $2.0 million, or
$0.10 per diluted share, in the first quarter of fiscal 2008.
The
Company’s financial results are difficult to compare to the corresponding
quarter of the prior year due to the sale of its Consumer Solutions Business
Unit (CSBU). Effective July 6, 2008, the CSBU was sold to a new
private equity-funded entity known as Franklin Covey Products,
LLC. The CSBU was primarily responsible for sales of the Company’s
consumer products, including the popular FranklinCovey PlannerTM,
binders, and related accessories, to consumers and small businesses through
retail, wholesale, Internet, and call center channels. Due to the
Company’s 19.5 percent voting interest and continuing involvement with Franklin
Covey Products, LLC, the Company is not presenting the financial results of the
CSBU in a discontinued operations format.
“We are
pleased to now have a single-minded focus on our core training and consulting
business. We anticipated our 2009 performance would start slowly and
build momentum over the course of the year. We are encouraged to see
bookings strengthen considerably in November and December and validate our
earlier assumptions. Our training and consulting offerings are
targeted towards enhancing employee productivity and leadership, developing
customer loyalty, and improving sales force effectiveness, which makes our
services especially relevant to our clients as they attempt to navigate through
this difficult economic environment,” said Bob Whitman, Chairman and
Chief Executive Officer of FranklinCovey. “We remain committed to
taking costs out of our business, and concurrent with the sale of CSBU,
implemented a restructuring plan to reduce the number of domestic sales offices
and decentralize certain sales support functions. Combined with our
expected sales
momentum,
we believe that these actions to streamline our expense structure will position
us well for a strong second-half and overall performance in 2009.”
Sales
from the Company’s Organizational Solutions Business Unit, which primarily
consist of training and consulting sales, decreased $3.4 million compared to the
prior year. Domestic sales declined by $3.2 million, primarily due to
planned decreases in the number of public programs offered, a decline in
facilitator sales, fewer on-site events resulting from a decrease in days booked
at September 1, 2008 compared to the prior year, and lower sales force
performance training revenues. International sales declined by $0.1
million largely due to lower sales in certain countries in which the Company
operates directly owned offices, partially offset by increased licensee royalty
revenues.
Earnings Conference
Call
On
Thursday, January 13, 2009 at 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Franklin Covey will host a conference call to review its financial results for
the fiscal quarter ended November 29, 2008. Interested persons may
participate by dialing 1-866-700-7477 (International participants may dial
1-617-213-8840), access code: 95846365. Alternatively, a webcast will
be accessible at the following Web site: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=102601&eventID=2058937. A
replay will be available through 11:59 p.m. Eastern time on January 22, 2009 by
dialing 1-888-286-8010 (International participants may dial 1-617-801-6888),
access code: 61056511. The webcast will remain accessible through
January 22, 2009 on the Investor Relations area of the Company’s web site at:
http://phx.corporate-ir.net/phoenix.zhtml?c=102601&p=irol-IRHome.
Forward-Looking
Statements
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based upon management’s current expectations and are subject to
various risks and uncertainties including, but not limited to: expected sales;
reductions in capital requirements and cost structure; general economic
conditions; market acceptance of new products or services and marketing
strategies; the ability to achieve sustainable growth in future periods; the
expected impact of the Company’s restructuring plan; and other factors
identified and discussed in the Company’s most recent Annual Report on Form 10-K
and other periodic reports filed with the Securities and Exchange
Commission. Many of these conditions are beyond the Company’s control
or influence, any one of which may cause future results to differ materially
from the Company’s current expectations, and there can be no assurance the
Company's actual future performance will meet management’s
expectations. These forward-looking statements
are based
on management’s current expectations and the Company undertakes no obligation to
update or revise these forward-looking statements to reflect events or
circumstances subsequent to this press release.
About
FranklinCovey
FranklinCovey
(NYSE: FC) is the global consulting and training leader in the areas of strategy
execution, customer loyalty, leadership, and individual
effectiveness. Clients include 90 percent of the Fortune 100, more
than 75 percent of the Fortune 500, thousands of small- and mid-sized
businesses, as well as numerous government entities and educational
institutions. FranklinCovey (www.franklincovey.com)
has 46 direct and licensee offices providing professional services in 147
countries.
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Investor
Contact:
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Media
Contact:
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||
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FranklinCovey
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or
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ICR,
LLC
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FranklinCovey
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Steve
Young
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Kate
Messmer
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Debra
Lund
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801-817-1776
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203-682-8338
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801-817-6440
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investor.relations@franklincovey.com
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kate.messmer@icrinc.com
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Debra.Lund@franklincovey.com
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FRANKLIN COVEY CO.
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CONDENSED CONSOLIDATED INCOME
STATEMENTS
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||||||||
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(
in thousands, except per share amounts )
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||||||||
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Quarter
Ended
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||||||||
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November
29,
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December
1,
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|||||||
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2008
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2007
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|||||||
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(unaudited)
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(unaudited)
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|||||||
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Net
sales
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$ | 35,081 | $ | 73,574 | ||||
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Cost
of sales
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13,384 | 27,583 | ||||||
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Gross
profit
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21,697 | 45,991 | ||||||
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Selling,
general, and administrative
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20,610 | 38,771 | ||||||
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Depreciation
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903 | 1,380 | ||||||
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Amortization
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902 | 899 | ||||||
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Income
(loss) from operations
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(718 | ) | 4,941 | |||||
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Interest
expense, net
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(775 | ) | (901 | ) | ||||
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Income
before income taxes
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(1,493 | ) | 4,040 | |||||
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Income
tax provision (benefit)
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(924 | ) | 2,048 | |||||
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Net
income (loss)
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$ | (569 | ) | $ | 1,992 | |||
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Net
income (loss) per share available to common shareholders:
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||||||||
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Basic
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$ | (0.04 | ) | $ | 0.10 | |||
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Diluted
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$ | (0.04 | ) | $ | 0.10 | |||
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Weighted
average common shares:
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||||||||
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Basic
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13,378 | 19,481 | ||||||
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Diluted
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13,378 | 19,760 | ||||||
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Sales
Detail by Category:
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||||||||
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Training
and consulting services
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$ | 30,481 | $ | 34,199 | ||||
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Products
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3,681 | 38,802 | ||||||
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Leasing
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919 | 573 | ||||||
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Total
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$ | 35,081 | $ | 73,574 | ||||
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Sales
Detail by Business Unit:
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||||||||
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Domestic
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$ | 20,726 | $ | 23,964 | ||||
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International
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13,436 | 13,567 | ||||||
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Total
Organizational Solutions Business Unit
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34,162 | 37,531 | ||||||
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Retail
Stores
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- | 13,135 | ||||||
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Catalog
/ e-commerce
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- | 14,812 | ||||||
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Wholesale
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- | 4,261 | ||||||
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CSBU
International
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- | 2,671 | ||||||
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Other
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- | 591 | ||||||
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Total
Consumer Solutions Business Unit
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- | 35,470 | ||||||
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Leasing
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919 | 573 | ||||||
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Total
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$ | 35,081 | $ | 73,574 | ||||