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Franklin Covey Company (FC+4.15%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing includes financial statements for the quarter, showing a slight increase in revenue to $69.1 million from $68.4 million in the same quarter the previous year. The increase was driven by a strong performance in the Education Division, which grew by 11%, while the Enterprise Division remained flat.
Cost of revenue for the quarter was $16.4 million, resulting in a gross profit of $52.7 million, compared to $52.3 million in the same quarter of the previous year. The gross margin remained consistent at approximately 76%.
Selling, general, and administrative expenses increased to $47.2 million from $44.2 million, primarily due to increased personnel costs and marketing expenses.
Restructuring costs for the quarter were $2.0 million, related to ongoing sales force restructuring activities in North America and international offices.
Net income for the quarter was $1.2 million, down from $4.9 million in the previous year. Basic and diluted earnings per share were $0.09, compared to $0.37 and $0.36, respectively, in the previous year.
Cash provided by operating activities was $14.1 million, while cash used in investing and financing activities was $2.8 million and $6.6 million, respectively.
Franklin Covey had $53.3 million in cash and cash equivalents as of November 30, 2024, with total available liquidity of over $115 million, including an undrawn $62.5 million line of credit.
The filing also details a lawsuit filed by Franklin Saltlake LLC, the landlord for the company's corporate offices, alleging breach of lease related to equipment repairs. Franklin Covey intends to defend against the claims.
The company continues to focus on its strategic initiatives, including the restructuring of its sales force and investments in content development, to drive future growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Franklin Covey Company quarterly 10-Q report dated January 10, 2025. To report an error, please email earnings@qz.com.