Franklin Covey Co. (NYSE:FC) reported stronger-than-expected results for its second quarter on Thursday after the bell.
The Salt Lake City-based company, "a global performance improvement company that creates and distributes world-class content, training, processes, and tools that organizations and individuals use to transform their results," reported sales increased $3.8 million, or 8%, over the prior-year second quarter, and boosted 10% in constant currency, with growth in both the Enterprise and Education Divisions.
Adjusted EBITDA improved $1.6 Million over last year’s second quarter.
Operating cash flows increased 43% to $13.4 million in Fiscal 2019 compared with $9.4 million for the first two quarters of Fiscal 2018
Following the launch of the All Access Pass (AAP) in fiscal 2016, FC began a major transition in its business model and in its interaction with clients. All Access Pass and related sales grew 33% year-over-year
AAP subscribers increased 29% year-over-year.
Moreover, deferred revenue (billed and unbilled) grew 36%, or $17.0 million, compared with the second quarter of fiscal 2018. Contracted subscription and related revenue grew 23% compared with the second quarter of last year.
Said CEO Bob Whitman, "We are very pleased with the trajectory of our results for the second quarter and first half of fiscal 2019, which exceeded our expectations, and produced increased sales, increased gross profit, improved operating results, and a significant increase in Adjusted EBITDA in the quarter, fiscal year, and for the latest 12 months."
Shares spiked $2.01, or 7.6%, to $28.35
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