Back to GetFilings.com



 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended February 26, 2005

o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file no. 1-11107


FRANKLIN COVEY CO.

(Exact name of registrant as specified in its charter)

 
Utah
87-0401551
  
 
(State of incorporation)
(I.R.S. employer identification number)
  
       
 
2200 West Parkway Boulevard
84119-2099
  
 
Salt Lake City, Utah
(Zip Code)
  
 
(Address of principal executive offices)
    
       
 
Registrant’s telephone number,
    
 
Including area code
(801) 817-1776
  


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes
x
No
 o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes
 o 
No
x

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock as of the latest practicable date:
20,135,743 shares of Common Stock as of April 4, 2005
 

 
 
 
 
 
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS


FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

   
February 26,
2005
  
August 31,
2004
  
   
(unaudited)
  
ASSETS
              
Current assets:
              
Cash, cash equivalents, and short-term investments
  
$
47,262
  
$
41,904
  
Accounts receivable, less allowance for doubtful  accounts of $1,356 and $1,034
    
18,290
    
18,636
  
Inventories
    
23,423
    
23,693
  
Other current assets
    
4,656
    
5,794
  
Total current assets
    
93,631
    
90,027
  
               
Property and equipment, net
    
36,389
    
40,584
  
Intangible assets, net
    
85,426
    
87,507
  
Other long-term assets
    
9,045
    
7,593
  
   
$
224,491
  
$
225,711
  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
Current liabilities:
              
Current portion of long-term debt
  
$
120
  
$
120
  
Accounts payable
    
8,716
    
14,018
  
Outsourcing contract costs payable
    
4,059
    
4,914
  
Income taxes payable
    
7,416
    
5,903
  
Accrued liabilities
    
29,391
    
31,244
  
Total current liabilities
    
49,702
    
56,199
  
               
Long-term debt, less current portion
    
1,341
    
1,350
  
Other liabilities
    
1,722
    
1,550
  
Total liabilities
    
52,765
    
59,099
  
               
Shareholders’ equity:
              
Preferred stock - Series A, no par value; convertible into common stock at $14 per    share; 4,000 shares authorized, 873 shares  issued; liquidation preference totaling $89,530
    
87,203
    
87,203
  
Common stock - $0.05 par value; 40,000 shares authorized, 27,056 shares issued
    
1,353
    
1,353
  
Additional paid-in capital
    
194,960
    
205,585
  
Accumulated deficit
    
(186
)
  
(8,798
)
Deferred compensation on restricted stock grants
    
(814
)
  
(732
)
Accumulated other comprehensive income
    
1,111
    
1,026
  
Treasury stock at cost, 6,615 and 7,028 shares
    
(111,901
)
  
(119,025
)
Total shareholders’ equity
    
171,726
    
166,612
  
   
$
224,491
  
$
225,711
  
               


See notes to condensed consolidated financial statements.

-3-

FRANKLIN COVEY CO.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

   
Quarter Ended
  
Two Quarters Ended
  
                   
   
February 26,
2005
  
February 28,
2004
  
February 26,
2005
  
February 28,
2004
  
   
(unaudited)
  
(unaudited)
  
Net sales:
                          
Products
  
$
55,175
  
$
57,009
  
$
99,226
  
$
108,785
  
Training and services
    
27,348
    
21,706
    
52,401
    
44,961
  
     
82,523
    
78,715
    
151,627
    
153,746
  
Cost of sales:
                          
Products
    
24,733
    
26,898
    
44,817
    
51,562
  
Training and services
    
7,725
    
7,192
    
15,586
    
15,033
  
     
32,458
    
34,090
    
60,403
    
66,595
  
Gross margin