Franklin Covey Co (FC, Financial) announced its financial results for the fourth quarter and full fiscal 2023 year on November 1, 2023. The company reported a 7% increase in consolidated sales for the fiscal year, reaching a record $280.5 million compared to $262.8 million in fiscal 2022. The Education Division revenues grew by 13% compared with fiscal 2022.
Fiscal 2023 Performance Highlights
Franklin Covey Co (FC, Financial) reported a strong financial performance for fiscal 2023. The company's consolidated sales for the fiscal year increased by 7% to a record $280.5 million, compared with $262.8 million in fiscal 2022. This growth was on top of the strong 17% growth achieved in fiscal 2022, a fiscal year which benefited from very strong sales performance and a comparison with a pandemic-impacted fiscal 2021.
Paul Walker, President and Chief Executive Officer, commented, “Our strong results for the fourth quarter and fiscal year demonstrate the strength and durability of our subscription business model, which continued its growth trajectory during the year and was evident by the strong growth in both our Enterprise and Education Divisions."
Financial Overview
The company's gross margin remained strong at 76.1%, pre-tax income increased 17% to $25.9 million, and adjusted EBITDA increased 14% to $48.1 million. Even after purchasing $35.6 million of its common stock during fiscal 2023, the company's liquidity remained very strong with over $100 million available from existing cash and its undrawn revolving credit facility.
Outlook for Fiscal 2024
Driven by the continued strength and strategic durability of its All Access Pass and Leader in Me membership subscriptions, and its strong fiscal 2023 financial performance, the company's guidance for fiscal 2024 is that Adjusted EBITDA will increase to between $54.5 million and $58.0 million in constant currency, compared with the $48.1 million of Adjusted EBITDA achieved in fiscal 2023.
Key Financial Tables
The company's net sales for the fourth quarter of fiscal 2023 were $77,955, compared to $78,806 for the same period in fiscal 2022. For the fiscal year ended August 31, 2023, net sales were $280,521, compared to $262,841 for the same period in fiscal 2022. The company's net income for the fourth quarter of fiscal 2023 was $6,812, compared to $5,578 for the same period in fiscal 2022. For the fiscal year ended August 31, 2023, net income was $17,781, compared to $18,430 for the same period in fiscal 2022.
About Franklin Covey Co (FC, Financial)
Franklin Covey Co (FC) is a global leadership company with directly owned and licensee partner offices providing professional services in over 160 countries and territories. The company transforms organizations by partnering with its clients to build leaders, teams, and cultures that achieve breakthrough results through collective action, which leads to a more engaging work experience for their people.
Explore the complete 8-K earnings release (here) from Franklin Covey Co for further details.
