Franklin Covey Co. (NYSE:FC) Q1 2019 Earnings Conference Call Transcript
Jan 09, 2019 • 05:00 pm ET
Welcome to the Q1 2019 Franklin Covey Earnings Conference Call. My name is Angela, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) Please note this conference is being recorded.
I will now turn the call over to Derek Hatch. Mr. Hatch, you may begin.
Thanks, Angela. Good afternoon, ladies and gentlemen and Happy New Year. On behalf of Franklin Covey Co., I'd like to welcome you to our conference call to discuss our financial results for the first quarter of fiscal 2019, which ended on November 30, 2018.
Before we begin, we'd like to remind everybody that this presentation contains forward-looking statements and this (technical difficulty) within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties, including but not limited to: the ability of the company to stabilize and grow revenues, the acceptance of and renewal rates of the All Access Pass, the ability of the company to hire productive sales professionals, general economic conditions, competition in the company's targeted marketplace, market acceptance of new products or services and marketing strategies, changes in the company's market share, changes in the size of the overall market for the company's products, changes in the training and spending policies of the company's clients and other factors discussed and identified in the company's most annual -- most recent annual report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
Many of these conditions are beyond our control or influence, any one of which may cause future results to differ materially from the company's current expectations, and there can be no assurance the company's actual future performance will meet management's expectations. These forward-looking statements are based upon management's current expectations, and we undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of today's presentation, except as required by law.
We'd also like to point out on the next slide that we have adopted in May 2014 the FASB issued ASU 2014-09, which is revenue from contracts with customers. This is the new revenue recognition standard that everybody's heard a lot about and we just wanted to point out that we adopted ASU 2014-09 on September 1 or the beginning of this quarter using a modified retrospective approach. Under this transition method, we applied the new standard to contracts which were not completed as of the adoption date, and recognized the cumulative effect adjustment, which reduced retained earnings by $3.1 million net of tax.
The comparative prior period information has not been restated and continues to be presented according to revenue accounting standards, which were in effect for those periods. The impact of the implementation of the new revenue recognition standard resulted in us recognizing $1.1 million of additional revenue in the first quarter, which