Franklin Covey reports Q3 EPS (14c), consensus (20c)
Reports Q3 revenue $56M, consensus $52.95M. Bob Whitman, Chairman and Chief Executive Officer, commented, "Our strong third quarter and year-to-date performance reinforced four key themes. First, our better-than-expected results in the third quarter continued to be broad-based, driven by the combination of higher-than-expected sales, higher gross margins, and a high flow-through of increases in revenue to increases in Adjusted EBITDA and cash flow. Second, these strong results are being driven by the strong growth in subscription and related sales, which grew 27% in the third quarter. Third, our subscription business model's high recurring revenue, strong and expanding gross margins, mostly-variable selling costs, and low capital intensity is driving significant and rapid growth in profitability and cash flow. Fourth, we are continuing to aggressively expand our sales force to take advantage of what we believe is an extraordinary sales force expansion opportunity."