FranklinCovey Announces Third Quarter and Fiscal 2007 Year to Date Results SALT LAKE CITY, Jul 12, 2007 (BUSINESS WIRE) -- FranklinCovey (NYSE: FC) today announced its financial results for its fiscal third quarter ended June 2, 2007. The Company reported income from operations of $2.4 million in the third quarter of fiscal 2007 compared to an operating loss of $1.4 million for the comparable quarter of last year. Due primarily to the change in tax rate, FranklinCovey reported net income of $0.9 million before preferred stock dividends ($0.03 earnings per common share after preferred stock dividends) for the quarter ended June 2, 2007, compared to $1.0 million before preferred stock dividends ($0.00 earnings per common share after preferred stock dividends) for the same quarter of the prior year. The Company's year-over-year operating results during the third quarter were influenced primarily by the following: (1) A $4.1 million increase or a 14% growth rate in the Organizational Solutions Business Unit (OSBU) sales combined with a 600 basis point increase in gross margin lead to a $4.5 million increase in OSBU gross profit; (2) a $2.9 million decrease in Consumer Solutions Business Unit (CSBU) sales mainly attributable to store closures ($0.6 million), lower technology product sales ($0.5 million) in the retail stores and sales decreases in the consumer direct channel ($2.2 million), and a 130 basis point increase in gross margin resulted in a $1.2 million decrease in CSBU gross profit; (3) a $0.3 million decrease in selling, general and administrative (SG&A) costs; and (4) a $0.1 million decline in depreciation expense. Operating results in the third quarter of fiscal 2006 were impacted by corrections made to the financial statements of our wholly-owned Mexico subsidiary which resulted in a decrease of $0.5 million in international sales and a $0.5 million increase in SG&A expense.
For the first three quarters of fiscal 2007, the Company reported a $2.2 million improvement in operating results to $15.5 million of operating income on revenues of $216.9 million compared to operating income of $13.3 million on revenues of $214.0 million for the first three quarters of last year. The Company also reported $7.0 million of net income before preferred dividends ($0.24 per diluted common share after preferred stock dividends), compared to $13.5 million of net income before preferred stock dividends ($0.48 per diluted common share after preferred stock dividends) for the first three quarters of fiscal 2006, reflecting the higher effective tax rate in fiscal 2007, much of which is non cash due to the utilization of net operating loss carry forwards. The Company provided the following details underlying the continued improvement of operating results during the fiscal third quarter and first three quarters of fiscal 2007.
Revenues: Total sales for the third quarter of fiscal 2007 grew $1.2 million. OSBU sales for the third quarter of fiscal 2007 grew 14% to $34.2 million compared to $30.1 million for the same quarter last year. Both Domestic and International OSBU sales grew by 14% reflecting the continued success of the growing sales force and continued strong booking rates.
Sales in the CSBU for the quarter ended June 2, 2007 were $30.3 million compared to $33.2 million for the same quarter last year. Retail stores sales declined $1.4 million with store closures accounting for $0.6 million of the decline and decreased technology sales accounting for $0.5 million during the quarter ended June 2, 2007. Comparable store sales decreased 7% during the quarter compared to the same quarter last year. There were 6 fewer domestic stores open during the quarter compared to the third quarter of last year. Consumer direct sales were $10.7 million compared to $12.9 million for the same quarter of last year. Wholesale sales were $6.9 million compared to $6.5 million for the same quarter last year.
Selling, general and administrative expenses: SG&A costs decreased by $0.3 million during the quarter primarily as a result of the $0.5 million SG&A charge correcting the financials of the Mexico subsidiary last year that was not repeated this year. SG&A costs increased by $3.9 million for the first three quarters ended June 2, 2007, compared to the same periods last year primarily as a result of benefits taken last year that were not repeated in the first three quarters of this year and increased commissions due to higher training sales.
Depreciation and amortization: Depreciation expenses continued to decline during the third quarter of fiscal 2007, reflecting lower, more focused and better-managed capital expenditures and the effect of certain assets becoming fully depreciated. The Company reported a decline of $0.1 million in depreciation during the third quarter and $0.5 million decline of depreciation and amortization during the first three quarters of fiscal 2007, compared to the respective periods of the prior year.
Other developments: The Company also announced that during the third quarter of fiscal 2007 it had redeemed the remaining $37.3 million of its Series A Preferred Stock resulting in a $0.6 million decrease in dividends paid during the quarter. The Company borrowed $17.8 million on its line of credit to pay for the redemption.
About FranklinCoveyFranklinCovey is a leading learning and performance services firm assisting professionals and organizations in measurably increasing their effectiveness in leadership, productivity, communication and sales. Clients include 91 of the Fortune 100, more than three-quarters of the Fortune 500, thousands of small and mid-sized businesses, as well as numerous government entities. Organizations and professionals access FranklinCovey services and products through consulting services, licensed client facilitators, one-on-one coaching, public workshops, catalogs, retail stores, and www.franklincovey.com. Nearly 1,500 FranklinCovey associates provide professional services and products in 41 offices servicing more than 100 countries.
FRANKLIN COVEY CO.
CONDENSED CONSOLIDATED INCOME STATEMENTS
( in thousands, except per share amounts )
Quarter Ended Three Quarters Ended
------------------- ---------------------
June 2, May 27, June 2, May 27,
2007 2006 2007 2006
--------- --------- ---------- ----------
(unaudited) (unaudited)
Net sales $ 64,509 $ 63,282 $ 216,914 $ 213,966
Cost of sales 24,873 26,990 83,691 85,094
--------- --------- ---------- ----------
Gross profit 39,636 36,292 133,223 128,872
Selling, general and
administrative 35,287 35,629 112,803 108,885
Gain on sale of manufacturing
facility (1,227)
Depreciation 1,060 1,134 3,463 3,763
Amortization 906 908 2,708 2,911
--------- --------- ---------- ----------
Income (loss) from operations 2,383 (1,379) 15,476 13,313
Interest expense, net (743) (356) (1,521) (1,013)
Legal settlement 873
--------- --------- ---------- ----------
Income (loss) before income
taxes 1,640 (1,735) 13,955 13,173
Income tax provision
(benefit) 753 (2,754) 6,939 (292)
--------- --------- ---------- ----------
Net income 887 1,019 7,016 13,465
Preferred stock dividends (348) (934) (2,215) (3,452)
--------- --------- ---------- ----------
Net income available to
common shareholders $ 539 $ 85 $ 4,801 $ 10,013
========= ========= ========== ==========
Net income per share
available to common
shareholders - diluted $ 0.03 $ 0.00 $ 0.24 $ 0.48
Weighted average common
shares - diluted 19,969 20,734 20,062 20,670
Sales Detail:
Retail Stores $ 10,010 $ 11,414 $ 43,402 $ 49,837
Catalog / e-commerce 10,715 12,912 47,713 51,701
Wholesale 6,901 6,523 15,059 15,773
CSBU International 1,125 1,148 6,153 6,473
Other 1,544 1,168 4,422 3,623
--------- --------- ---------- ----------
Total Consumer Solutions
Business Unit 30,295 33,165 116,749 127,407
Domestic 20,297 17,875 57,331 49,552
International 13,917 12,242 42,834 37,007
--------- --------- ---------- ----------
Total Organizational
Solutions Business Unit 34,214 30,117 100,165 86,559
Total $ 64,509 $ 63,282 $ 216,914 $ 213,966
========= ========= ========== ==========
FranklinCovey Announces Gadget for Windows Vista SideShow and Releases Gadget for Windows Vista Sidebar PlanPlus(TM) for Microsoft Outlook and PlanPlus(TM) for Windows
Updated for Windows Vista and Microsoft Office Outlook 2007
SALT LAKE CITY--(BUSINESS WIRE)--Jan. 30, 2007--FranklinCovey (NYSE:FC) today announced it will release the FranklinCovey Task List Gadget for Windows SideShow in March 2007. It also released the FranklinCovey Task List Gadget for Windows Sidebar today.
Additionally, FranklinCovey has updated its award-winning productivity software applications, PlanPlus v.5.1 for Windows (available now) and PlanPlus v.4.1 for Microsoft Outlook (planned release February 2007), for Windows Vista compliance. Both applications are based on the FranklinCovey Planning System and assist desktop, notebook or Tablet PC users in better managing their time and focusing on top priorities for increased overall effectiveness.
The FranklinCovey Task List Gadget for Windows Sidebar is a mini-application that enables users to quickly view their PlanPlus for Windows (available now) or PlanPlus for Microsoft Outlook (available February 2007) task list within the Windows Vista Sidebar. Users can add and sort tasks by rank and priority using the FranklinCovey planning methodology. The FranklinCovey Task List Gadget is always visible on the desktop, so users always know what task they must complete next. The gadget for sidebar and PlanPlus applications were created with development partner, Agilix(R).
The FranklinCovey Task List Gadget for Windows SideShow is a mini-application which allows users immediate access to their FranklinCovey Task List whether their PC is on, off or in sleep mode - increasing productivity and saving time and battery life. It will update a Windows SideShow-compatible device with the information from the FranklinCovey Task List Gadget running on the PC. Some Windows SideShow-compatible devices include laptops with a secondary or auxiliary display, keyboards, LCD display casings, digital picture frames, remote controls, PDAs and cell phones. The Windows SideShow application was created in collaboration with the Microsoft Mobile and Tailored Platforms Division.
The FranklinCovey Task List Gadget for Windows Sidebar is now included with the 30-day trial or purchase of FranklinCovey's PlanPlus v.5.1 for Windows and will be included with the 30-day trial or purchase of PlanPlus v.4.1 for Microsoft Outlook in February 2007. The FranklinCovey Task List Gadget for Windows SideShow will be included with the 30-day trial or purchase of FranklinCovey's PlanPlus v.5.1 for Windows and PlanPlus v.4.1 for Microsoft Outlook in February 2007.
"FranklinCovey is pleased to have worked with Microsoft to create our FranklinCovey Task List Gadget for Windows SideShow," said Jeff Anderson, Senior Vice President of Product Management for FranklinCovey. "This integral component of FranklinCovey's planning methodology allows users to organize their most vital tasks by ABC rank and 123 priority, whether or not they are connected to their PC, saving valuable time and increasing individual productivity."
"Microsoft is excited to have collaborated with world-renowned productivity expert, FranklinCovey, to create the Task List Gadget for Windows SideShow," said Brad Goldberg, general manager for Windows Client at Microsoft Corp. "This mini-application, in combination with PlanPlus for Microsoft Outlook and PlanPlus for Microsoft Windows, marries the millions of Microsoft customers with the renowned FranklinCovey planning principles that have helped businesses and individuals for years to better focus and execute on their highest priorities."
PlanPlus for Microsoft Outlook seamlessly integrates the proven planning methods from FranklinCovey within Microsoft Office Outlook 2007. It features a user interface that mirrors FranklinCovey's paper planner for managing calendar, tasks, contacts and notes. It also features a simple, user-friendly Project Manager which integrates with the FranklinCovey Daily Task List, generates e-mail project reports, allows task delegation, and supports customizable columns to view priority, flags, owner, category, and more. The software syncs information to FranklinCovey handheld applications for Windows Mobile-based and Palm devices.
PlanPlus for Microsoft Outlook allows users to drag and drop tasks, appointments and notes within the different PlanPlus modules for increased productivity. It also includes digital ink support so Tablet PC users can take notes in their own handwriting within the PowerNotes note-taking and note management module. Traditional FranklinCovey Planning Page users can print information from Microsoft Office Outlook 2007 and PlanPlus to all four FranklinCovey Planning Page sizes.
PlanPlus for Windows
PlanPlus for Windows is a stand-alone electronic planning system for desktop, notebook, Tablet PC or Ultra Mobile PC users who are looking for an alternative to Microsoft Office Outlook. The software manages calendar, tasks, contacts and notes using the familiar layout and functionality of the FranklinCovey Paper Planning System. It features digital ink support throughout the application, including handwriting to text conversion and resizable objects and drawings; a tabbed filing system for notes and information; a customizable user interface which utilizes drag-and-drop functionality to customize the workspace; full category support for tasks, appointments, contacts and notes; and FranklinCovey handheld applications for Palm devices.
The software also offers synchronization to Microsoft Office Outlook 2007 and traditional FranklinCovey Planning Page users can print information from PlanPlus to all four FranklinCovey Planning Page sizes.
Both applications are available in 88 FranklinCovey retail stores, by calling 800-819-1812, or by visiting www.franklincovey.com/vista, where users can also download a free 30-day trial. Suggested retail is $99.95 for either PlanPlus for Microsoft Outlook or PlanPlus for Windows. A free update is available for users who own PlanPlus v.4 for Microsoft Outlook or PlanPlus v.5 for Windows. Site licensing and quantity discounts are also available.
For system requirements please visit www.franklincovey.com/vista.
About FranklinCovey FranklinCovey(R) (NYSE:FC) is a global leader in effectiveness training, productivity tools, and assessment services for organizations and individuals. FranklinCovey helps companies succeed by unleashing the power of their workforce to focus and execute on top business priorities. 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. Organizations and individuals access FranklinCovey products and services through corporate training, licensed client facilitators, one-on-one coaching, public workshops, catalogs, 88 retail stores and www.franklincovey.com. FranklinCovey has nearly 1,500 associates providing professional services and products in 39 offices and in 95 countries
FranklinCovey Announces Updates to Planning Applications and New Gadget for Windows Vista at CES 2007 PlanPlus(TM) for Microsoft Outlook and PlanPlus(TM) for Windows to Be Updated for Windows Vista and Outlook 2007 LAS VEGAS, Jan 08, 2007 (BUSINESS WIRE) -- FranklinCovey (NYSE:FC) today announced updates to its award-winning productivity applications, PlanPlus(TM) for Windows and PlanPlus(TM) for Microsoft Outlook, which will be compliant with Windows Vista and Microsoft Office Outlook 2007 by January 29, 2007. Both applications are based on the FranklinCovey Planning System and assist users in getting organized and focused on their priorities, to increase overall effectiveness using a desktop, notebook or Tablet PC. FranklinCovey also announced the release of the FranklinCovey Task List Gadget for Windows Vista, which enables users to quickly view their PlanPlus for Microsoft Outlook or PlanPlus for Windows task list within the Windows Vista Sidebar. It allows users to add and sort tasks by rank and priority using the FranklinCovey planning methodology. The gadget will be available with the 30-day trial or purchase ($99.95) of PlanPlus v.5.1 for Windows or PlanPlus v.4.1 for Microsoft Outlook. Both applications and the gadget were created with development partner, Agilix(R).
"FranklinCovey has had a long-standing relationship with Microsoft and we are pleased to update our applications for Windows Vista compliance to significantly enhance the functionality of both Microsoft Office Outlook and Windows for individuals and teams," said Jeff Anderson, Senior Vice President of Product Management for FranklinCovey. "We are honored to have created the FranklinCovey Task List Gadget, allowing Windows Vista users to apply our planning methodology every day to enhance their productivity as they complete their most important tasks first."
"Microsoft is pleased to highlight FranklinCovey's PlanPlus for Windows Vista," said Brad Goldberg, general manager for Windows Client at Microsoft Corp. "FranklinCovey has consistently produced exceptional products that help users significantly increase their effectiveness and productivity. We are excited the company is taking advantage of Windows SideBar technology for its FranklinCovey Task List Gadget designed to help users better prioritize and manage their most vital tasks."
PlanPlus for Microsoft Outlook
PlanPlus for Microsoft Outlook seamlessly integrates the proven planning methods from FranklinCovey within Outlook. It features a user interface that mirrors FranklinCovey's paper planner, a Project Manager and handheld applications for Windows Mobile-based devices and Palm(R) devices.
Users can view their calendar, tasks or projects and notes or e-mail on one screen. The toolbar along the top of the screen allows easy accessibility to notes, daily tasks, projects, Weekly Planning, and "Coach Me" Dynamic Help. PlanPlus also features a rich-text editor which gives users full customization capabilities within PowerNotes and Daily Notes.
The Project Manager allows users to manage their projects with a simple, user-friendly interface that integrates directly with their Daily Task List. Project Manager supports customizable columns to display priority, flags, owner, category, due date, and more on one screen. To simplify reporting, Project Manager easily generates summary and detailed e-mail project reports. Additionally, users can delegate tasks and view their progress or completion within their own Project Manager. Project Manager also supports templates and copy and paste functionality within Microsoft Office Word and Excel.
In addition to standard sync functionality, users of Windows Mobile 5.0 can access the FranklinCovey Daily Task List, Master Task List, Project Manager, and Daily Notes applications on their handheld device or smartphone. These new applications were developed by WebIS and a full version of their award-winning product, Pocket Informant 2007, is included with PlanPlus for Microsoft Outlook.
Palm(R) users can access the FranklinCovey Daily Task List, Master Task List, Project Manager, Mission/Values, Compass/Roles, and Goals applications on their handheld device.
PlanPlus for Outlook includes digital ink support for Tablet PC users to take notes in their own handwriting within the PowerNotes note-taking and note management module and traditional FranklinCovey Planning Page users can print information from Outlook and PlanPlus to all four FranklinCovey Planning Page sizes.
PlanPlus for Windows
PlanPlus for Windows is a stand-alone electronic planning system with the look and functionality of a paper planner. It was created for users who do not rely on Outlook alone, but who utilize a desktop, notebook, Tablet PC or Ultra Mobile PC running Windows.
The software allows users to manage their calendar, tasks, contacts and notes using the familiar layout and functionality of the FranklinCovey Paper Planning System. It features ink-enabled note-taking, a customizable user interface, full category support, and FranklinCovey applications for Palm OS.
Tablet PC and Ultra Mobile PC users have digital ink support throughout the application and can convert handwritten notes to standard text. Users can add objects, flags, and drawings to notes; insert, move, and resize graphics; and utilize a tabbed filing system to keep notes and information easily accessible.
The customizable user interface allows users to customize their workspace to meet their needs by using the drag-and-drop feature to select, view and manipulate those modules that are most important to the user. PlanPlus for Windows also offers full category support to assign categories to tasks, appointments and contacts.
In addition to standard sync functionality, Palm users can synchronize and view FranklinCovey applications including Daily Tasks, Master Tasks, Daily Record, Missions/Values, Weekly Compass(R), and Goals on their handheld devices. The software also offers synchronization to Microsoft Outlook.
Traditional FranklinCovey Planning Page users can print information from Outlook and PlanPlus to all four FranklinCovey Planning Page sizes.
Both applications are available in 89 FranklinCovey retail stores, by calling 800-819-1812, or by visiting www.franklincovey.com/vista, where users can also download a free 30-day trial. Suggested retail is $99.95 for either PlanPlus for Microsoft Outlook or PlanPlus for Windows. A free update is available for users who own PlanPlus v.4 for Microsoft Outlook or PlanPlus v.5 for Windows. Site licensing and quantity discounts are also available.
For system requirements please visit www.franklincovey.com/vista.
About FranklinCovey
FranklinCovey(R) (NYSE:FC) is a global leader in effectiveness training, productivity tools, and assessment services for organizations and individuals. FranklinCovey helps companies succeed by unleashing the power of their workforce to focus and execute on top business priorities. 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. Organizations and individuals access FranklinCovey products and services through corporate training, licensed client facilitators, one-on-one coaching, public workshops, catalogs, 89 retail stores and www.franklincovey.com. FranklinCovey has nearly 1,500 associates providing professional services and products in 39 offices and in 95 countries.
Stressed Out About The Holiday Season? Money, Gift Giving and Workload Lead Top 10 Stress List Again, According to FranklinCovey's Second Annual Holiday Survey Experts Give Tips for a Less Stressful Holiday Season
FranklinCovey (NYSE:FC), a global leader in effectiveness training, productivity tools, and assessment services, today released the results of its second annual Holiday Stress Survey. The survey polled 15,202 customers and found that the holiday season causes stress for 87 percent of respondents and leaves 49 percent relieved when it is finally over.
Even taking the holiday stress survey and thinking about all they had to accomplish over the holiday season caused stress for 43 percent of respondents. They ranked holiday activities from most stressful to least stressful; money, shopping for gifts and workload topped the list.
Top 10 Most Stressful Holiday Activities 1. Spending too much money 2. Creating a specific holiday budget 3. Deciding what gift to buy for whom 4. Managing workload to take time off 5. Not enough time to shop 6. Not enough time for events 7. Sending gifts and cards on time 8. Taking care of physical well-being 9. Relationships with family, friends and co-workers 10. Decorating for or hosting a holiday party
It is no surprise that money and budgeting are the most stressful part of the holidays since 89 percent of respondents said they spend more than they budgeted for holiday gifts.
Shopping-related activities, such as what gift to buy for whom and not enough time to shop, are also near the top of the stress list. Seventy-four percent of respondents said they shop for all of their gifts in a month or less. Twenty-eight percent of respondents don't even have a gift list before they go shopping, leaving them to shop aimlessly until the perfect gift appears and leading to more than a day of wasted time for 64 percent of respondents.
"The key to avoiding stress during the holiday season is to create a manageable, written plan for the holidays that includes events, budgeting, shopping, traditions and quality time with friends and family. Make sure your plan allows you and your loved ones to enjoy the holiday season - your way," said Julie Morgenstern, professional organizer, time-management expert, and best-selling author of Never Check Email in the Morning and Organizing From the Inside Out. "Without a plan, you can easily go over budget, waste time searching for the perfect gift, and abandon your own well-being. Be prepared before you take on the season."
In addition to holiday shopping, decorating and events, people are still required to manage their workload despite fewer working days. In order to take time off, employees must carefully plan their workload in order to fulfill their work responsibilities, yet 42 percent of respondents don't begin planning their workload until the week before they wish to take time off.
"While money, shopping and workload may cause holiday stress, the real issue is that people are trading the most important things in life for the most urgent," said Stephen R. Covey, best-selling author of The 7 Habits of Highly Effective People and The 8th Habit and vice-chairman of FranklinCovey. "Now is the perfect time to envision how you will use the holiday season to focus on and strengthen the wellsprings of a rich life: friends, family, service, health, spirituality and contribution."
Survey results also revealed that only 10 percent of respondents keep to their diet and exercise plans well or very well during the holidays, and 49 percent don't keep to them at all. Additionally, respondents wish to spend a day and a half more on average than they are currently spending with family and friends during the holidays and a day more on activities such as Sub for Santa, Angel Tree, or other community and service activities.
Better planning and organization during the holiday season and throughout the year can help reduce holiday stress and allow individuals to spend more time on activities that will leave them feeling happy and fulfilled when the holidays are over. Below are five tips from FranklinCovey and Julie Morgenstern on how to make the holiday season less stressful and more fulfilling.
Julie Morgenstern's Five Top Tips for Reducing Holiday Stress1. Write everything down in one planning system. Make a list of all of the holiday activities that make this season meaningful to you and your family, because the holiday season you experience will be the holiday season you plan. Keep this list, along with your gift and shopping lists and other tasks you wish to complete, with you in an integrated planning system, which includes your calendar, contacts, prioritized task list and notes.
2. Add up how long each holiday task will take to complete. The easiest way to get overwhelmed is by having an unrealistic plan of just how long it takes to complete certain tasks. Estimate the time each holiday task will take before you schedule it into your planning system and then realistically schedule your time so that you work on the most important things first.
3. Decide when you will do each task and schedule it. Schedule time in your week or day to work on a specific holiday task and record it in your planning system. If you have more tasks than time in a day or week, use the 4 D's.
-- Delete unnecessary tasks from your list
-- Delay less important tasks until after the holidays or next
year
-- Diminish the scope of certain holiday activities - Simplify
-- Delegate to family, friends and work associates - You don't
have to do it all yourself
4. Execute your plan. Stay focused on following your holiday plan. It is your essential roadmap for the holidays. Don't try to multi-task to the point that you don't complete anything.
5. Make time for yourself. Make sure you take time for yourself throughout the holiday season. Invest in your physical well-being, emotional stability and personal relationships.
Methodology
This survey was conducted online within the United States between October 13 and October 23, 2006 among 15,202 FranklinCovey Customers nationwide. Of the 15,202 customers polled, 1,074 responded. Results provided have a 95 percent confidence level and an overall margin of error of +/-2 percent.
In theory, with a probability sample of this size, one can say with 95 percent certainty that the results have a statistical precision of +/-2 percentage point of what they would be if the entire adult population had been polled with complete accuracy. This online survey is not a probability sample.
About FranklinCovey
FranklinCovey(R) (NYSE:FC) is a global leader in effectiveness training, productivity tools, and assessment services for organizations and individuals. FranklinCovey helps companies succeed by unleashing the power of their workforce to focus and execute on top business priorities. 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. Organizations and individuals access FranklinCovey products and services through corporate training, licensed client facilitators, one-on-one coaching, public workshops, catalogs, 89 retail stores and www.franklincovey.com. FranklinCovey has nearly 1,500 associates providing professional services and products in 39 offices and in 95 countries.
FranklinCovey Announces Fourth Quarter and Fiscal 2006 Year-End Operating Results
SALT LAKE CITY, Nov. 14 FranklinCovey (NYSE: FC) today announced financial results for its fiscal year and fourth quarter ended August 31, 2006. For the fiscal year ended August 31, 2006, the Company reported a $5.6 million improvement in operating results with operating income of $14.0 million compared to an $8.4 million income from operations in fiscal 2005. For the fiscal year ended August 31, 2006, the Company reported an $18.4 million improvement in net income with $28.6 million of net income before preferred stock dividends ($1.18 earnings per diluted common share, after accounting for preferred stock dividends) compared to $10.2 million of net income before preferred stock dividends ($.34 loss per common share, after accounting for preferred dividends and recapitalization valuation non-cash charge) for the fiscal year 2005. Net income for the fiscal year ended August 31, 2006 included an income tax benefit of $14.9 million primarily from a reversal of a valuation allowance established in prior years against net deferred income tax assets.
The $5.6 million improvement in operating results for fiscal 2006 compared to fiscal 2005 is comprised of the following: (1) a $4.9 million decrease in sales, much more than 100% of which was due to closed stores, combined with an improved gross margin (60.1 % compared to 59.5%) resulting in a net $1.3 million year-over-year decrease in gross margin, (2) a $3.6 million decrease in selling, general and administrative costs, and (3) a $3.3 million reduction in depreciation and amortization expense.
For the fourth quarter ended August 31, 2006, the Company reported an improvement of $1.8 million in its operating results, with $0.7 million of operating income compared to a loss from operations of $1.0 million for the comparable quarter of the prior year. FranklinCovey also reported an improvement in its net results with $15.1 million of net income before preferred stock dividends ($0.70 earnings per diluted common share, after accounting for preferred stock dividends) for the fourth quarter ended August 31, 2006, compared to a $1.5 million net loss before preferred stock dividends ($.16 per common share loss, after accounting for preferred stock dividends) for the same quarter of the prior year. The fourth quarter net income included a $14.7 million tax benefit primarily from the reversal of the valuation allowance described above.
The year-over-year improvement in the operating results for the quarter is comprised of the following: (1) a $1.5 million decrease in sales, more than 100% of which was due to closed stores, resulting in a net $0.3 million year-over-year decrease in gross margin, (2) a $1.5 million decrease in selling, general and administrative costs, and (3) a $0.6 million reduction in depreciation and amortization expense.
The Company provided the following details underlying the continued improvement in its operating results during the fourth quarter and full year of fiscal 2006.
Revenues: Organizational Solutions Business Unit (OSBU) sales for the year were $127.8 million, a 4% increase compared to $122.9 million for fiscal year 2005. Sales in the OSBU for the fourth quarter of fiscal 2006 grew by 5% to $34.9 million, compared to $33.4 million for the same quarter last year. International sales during the quarter were up 3% while domestic sales grew by 6%.
Sales from the Consumer Solutions Business Unit (CSBU) for the fiscal year were $150.8 million compared to $160.7 million for fiscal year 2005 with store closures accounting for more than 100 percent of the decline with an impact of $12.4 million on total sales. CSBU sales for the fourth quarter ended August 31, 2006 declined to $29.8 million compared to $32.7 million for the same quarter last year, primarily a result of stores closures during the year. Comparable store sales increased 1% during the quarter compared to the same quarter last year. Consumer direct sales declined less than 1% during the fourth quarter to $13.4 million compared to $13.5 million for the same quarter last year. Wholesale revenues were $2.6 million during the quarter compared to $3.6 million for the same quarter of the prior year. Other CSBU sales increased by $0.1 million to $1.3 million compared to $1.2 million for the same quarter last year.
Selling, general and administrative expenses: Selling, general and administrative expenses (SG/A) declined by $3.6 million for the year ended August 31, 2006, compared to fiscal year 2005. SG/A decreased to $35.9 million during the fourth quarter of fiscal year 2006 compared to $37.3 million for the fourth quarter of fiscal 2005. The decreases were a result of closed retail stores and continued efforts to reduce operating costs.
Depreciation and amortization: Depreciation and amortization expenses (D/A) continued to decline during the fiscal year 2005 and fourth quarter, reflecting lower, more focused and better-managed capital expenditures and the effect of certain assets becoming fully depreciated and store closures. The Company reported declines of $3.3 million and $0.6 million in D/A during the fiscal year and fourth quarter ended August 31, 2006, respectively, compared to the same periods of the prior year.
Liquidity: The Company had $30.6 million in cash and cash equivalents at August 31, 2006. During fiscal 2006, the Company redeemed $20.0 million of its outstanding Series A Preferred Stock and purchased $5.1 million or 0.7 million shares of its Common Stock during fiscal 2006 under a plan that was approved by the Board of Directors in January 2006.
About FranklinCovey
FranklinCovey is a leading learning and performance services firm assisting professionals and organizations in measurably increasing their effectiveness in leadership, productivity, communication and sales. Clients include more than 90 of the Fortune 100, more than three-quarters of the Fortune 500, thousands of small and mid-sized businesses, as well as numerous government entities. Organizations and professionals access FranklinCovey services and products through consulting services, licensed client facilitators, one-on-one coaching, public workshops, catalogs, retail stores, and www.franklincovey.com . Nearly 1,500 FranklinCovey associates provide professional services and products to clients in more than 130 countries.
FranklinCovey and Jakoter Health Organizers Partner to Create and Launch New Healthcare Organizer
New Organizer Helps Users Manage Their Detailed Healthcare History
SALT LAKE CITY--(BUSINESS WIRE)--Nov. 13, 2006--FranklinCovey(R) (NYSE:FC), a global leader in effectiveness training, productivity tools and assessment services for organizations and individuals, and Jakoter Health Organizers, creators of personal health organizers for families, individuals and caregivers, today announced the debut of the FranklinCovey Healthcare Organizer.
The Healthcare Organizer was created and designed to help families, retirees, caregivers, and individuals in managing their healthcare history and records.
"We are thrilled to partner with FranklinCovey in creating a complete system that helps users organize every health detail for themselves and their loved ones," said Laura Heuer, President of Jakoter Health Organizers. "When dealing with a new health concern or a chronic condition, this organizer will help to keep all vital information, such as health history and doctor's appointments, available at a moment's notice."
Jeff Anderson, FranklinCovey Vice President of Product Management, said, "Whether you are a parent keeping track of your children's health information or the family member of an elderly person in a care center, this organizer will help to relieve the stress of trying to remember and keep track of pertinent healthcare information."
The Healthcare Organizer features a durable three-ring poly binder; forms and tabs for tracking Health History, Bills and Receipts, Appointments, Notes, Symptoms, Charts, Medication, Test Results, Doctor's Letters, and Resources; three blank tabs; and a sticker sheet with preprinted and blank tab labels. Plastic accessories also included are: two business card holders, one zipper pouch and six sheet protectors. This organizer is available in the FranklinCovey monarch size for $39.95 and is available at www.franklincovey.com and at FranklinCovey's 89 stores nationwide.
About FranklinCovey
FranklinCovey(R) (NYSE:FC) is a global leader in effectiveness training, productivity tools, and assessment services for organizations and individuals. FranklinCovey helps companies succeed by unleashing the power of their workforce to focus and execute on top business priorities. 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. Organizations and individuals access FranklinCovey products and services through corporate training, licensed client facilitators, one-on-one coaching, public workshops, catalogs, 89 retail stores and www.franklincovey.com. FranklinCovey has nearly 1,500 associates providing professional services and products in 39 offices and in 95 countries.
About Jakoter Health Organizers
Jakoter Health Organizers empowers people through organization, allowing them to become their own best advocate throughout their medical journey. Based on a real-life medical journey, Jakoter Health Organizers is a simple, yet effective solution for individuals, companies and organizations. Jakoter works with several non-profit organizations and donates a portion of the proceeds back to these organizations. In 2007 Jakoter will begin their insightful speaking sessions Empower Yourself Organize Your Health. For more information contact www.jakoter.com.
FranklinCovey Releases PlanPlus Online
Integrated Contact Management with the Familiarity of the
FranklinCovey Planner
SALT LAKE CITY--(BUSINESS WIRE)--Nov. 1, 2006--FranklinCovey(R) (NYSE:FC) today announced the release of PlanPlus(TM) Online, a secure Web-based application which offers users integrated contact management capabilities while implementing the FranklinCovey planning methodology.
PlanPlus Online features a familiar FranklinCovey interface, a powerful search tool, the FranklinCovey weekly planning tool, and an email center. The application is accessible from anywhere, allowing users to enter and retrieve information on the go and utilizes the strongest encryption products available. It was developed in partnership with COMPLETExRM and EBSuite.com.
The integrated contact management capabilities within PlanPlus Online allow customers to easily track leads, organizations, contacts, tasks and sales opportunities and integrate action items with their daily task list and schedule. A simple sales process is included with the application, along with the ability to track client or opportunity history, view the activity of other team members and create detailed reports. PlanPlus Online is collaborative and scaleable for individual and small, medium or large business use.
"We are excited to present an online application that features the same components our customers enjoy using on their desktop, laptops, and tablet PCs," says Jeff Anderson, Vice President of Product Management for FranklinCovey. "This application will provide mobile professionals and work groups with access to all of their planning and contact management needs anytime, anywhere. We are confident that PlanPlus Online will enable increased productivity for these professionals as they implement FranklinCovey's proven planning principles."
The PlanPlus Online home view features a simple tab system that allows instant access to key information. Users can utilize drag and drop functionality for quick changes to tasks and within the Quick Prioritize tool to prioritize their daily task list.
The powerful search engine can retrieve critical information from the database in seconds by searching clients, organizations, sales opportunities, notes, tasks and emails at once.
PlanPlus Online also includes the same weekly planning tool found in FranklinCovey's award-winning software offerings, PlanPlus for Microsoft(R) Outlook(R) and PlanPlus for Windows(R) XP. This tool allows users to review their Mission Statement, Values, Goals, and Weekly Compass and drag and drop items from these forms onto their schedule or task list.
Users can also have their existing IMAP or POP3 email account delivered to their PlanPlus Online portal. By doing so, users can send, receive, and manage email within PlanPlus Online.
FranklinCovey also offers PlanPlus for Microsoft Outlook and PlanPlus for Windows XP software for customers who wish to incorporate the planning system on their desktop, laptop or tablet PC.
COMPLETExRM provides dynamic productivity solutions within vertical markets by combining Customer Relationship Management (CRM) and Business Process Management (BPM) technology on a Web-services platform (www.completexrm.com). EBSuite.com is a leading global provider of customizable, on-demand Customer Relationship Management (CRM) solutions (www.ebsuite.com).
Pricing and Availability
PlanPlus Online is available in 89 FranklinCovey retail stores, www.planplusonline.com, or by calling 800-819-1812. Suggested retail price for PlanPlus Online is $25 per month. A one-month introductory subscription is available for $9.95 and a three-month subscription is available for $39.95. Quantity discounts are also available.
System Requirements Internet Explorer, Netscape 4, Firefox 1+ Any operating system that supports a Browser (Windows 98, 2000, XP, Mac OS 9+, Linux, Palm, Pocket PC, Windows Mobile, Symbian)
Security Features 128-bit VeriSign SSL Certification 1024 Bit RSA Public Keys 24/7/365 physical security Redundant configuration
About FranklinCovey
FranklinCovey(R) is a global leader in effectiveness training, productivity tools, and assessment services for organizations and individuals. FranklinCovey helps companies succeed by unleashing the power of their workforce to focus and execute on top business priorities. 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. Organizations and individuals access FranklinCovey products and services through corporate training, licensed client facilitators, one-on-one coaching, public workshops, catalogs, 89 retail stores and www.franklincovey.com. FranklinCovey has nearly 1,500 associates providing professional services and products in 39 offices and in 95 countries.
High Point University Welcomes Stedman Graham HIGH POINT, N.C., Oct. 23, 2006 While some people know him as Oprah's boyfriend, best-selling author and noted speaker Stedman Graham has made a significant name for himself in the business world. Graham will bring his expertise to the High Point University family when he gives a lecture in the University's Hayworth Fine Arts Center on Friday, Nov. 10 at 1 p.m. "We're thrilled to have Mr. Graham on campus," says President Nido Qubein. "Giving our students the opportunity to hear from such noted personalities is part of our commitment to making their experience here extraordinary." Graham is the recipient of the Franklin Covey Humanitarian Service Award, National Urban League Community Service Award, Drum Major for Justice Award, American Advertising Federation Industry Influential and H. Naylor Fitzhugh Award of Relevance.
The perfect tool to help you create your life plan and track your progress, the FranklinCovey Planning System is based on a concept used by Benjamin Franklin. Franklin recorded the attributes he wished to develop, the goals he wanted to reach, and the plans he made for achieving both in a small notebook. Referring to the book daily helped him use his time more wisely and led to many successes. The FranklinCovey Planning System can do the same for you.
Make the Most of Your Planning System
A paper-based Planning System allows you to manage tasks, appointments, contacts, and notes every day and is easy to integrate with any electronic components you use. Every good Planning System will allow you to personalize it to fit your lifestyle, carry your information with you always, and eliminate redundancy for maximum effectiveness.
Your Planning System is designed to do much more than help you remember appointments. Make the most of your Planning System with the online Quick Start Guide. It will help you use your Planning Pages to achieve success every single day.
See Our Complete Collection of Franklin Covey Paper Planning Systems
BoConcept will open near JCPenney, in a portion of the old Bath and Body Works, which moved near Macy's. Women's apparel store BCBG will take up the rest of the Bath and Body Works space in mid November, said WestShore Plaza marketing coordinator Joanna Caputi.
Also expected in mid November is business accessory purveyor Franklin Covey. Franklin Covey will occupy the former Treehouse Gallery space in the mall's Saks Fifth Avenue wing.
Effective management lecture 11/11/06.
BARBADIANS have an opportunity to see and hear one of the world's leading management and personal development gurus, Dr Stephen R. Covey, when he delivers a public lecture at the gymnasium of the Garfield Sobers Sports Complex tomorrow at 2:45 p.m.
Covey, author of the bestselling 7 Habits Of Highly Effective People, is due in the island for two engagements co-ordinated by the Junior Chamber International.
The first will be for CEOs and leaders of Government, business and society at Hilton Barbados tomorrow, at 11 a.m. His subject will be Leadership: A New Paradigm For A New Era.
Covey is cofounder/ vice-chairman of Franklin Covey Company, a leading global professional services firm which offers learning and performance solutions to assist professionals and organisations.