Franklin Covey Co. (NYSE:FC) Q1 2020 Earnings Conference Call - Final Transcript

Jan 09, 2020 • 05:00 pm ET


Franklin Covey Co. (NYSE:FC) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the Q1 2020 Franklin Covey Earnings Conference Call. My name is Cynthia 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 that this conference is being recorded.

I will now turn the call over to Derek Hatch. Derek, you may begin.

Derek Hatch

Thank you, Cynthia. Hello everyone and Happy New Year. On behalf of Franklin Covey, we'd like to welcome you to our first quarter of fiscal 2020 conference call to discuss our earnings -- our earnings this day.

Before we begin, we'd like to remind everybody that this presentation contains forward-looking statements 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 hire -- to stabilize and grow revenues, the acceptance and renewal rates for 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 identified and discussed in the company's 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 managements expectations. These forward-looking statements are based on 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.

With that out of the way, we'd like to turn the time over to our Chief Executive Officer, Mr. Bob Whitman.

Robert A. Whitman

Thanks, Derek. Good afternoon and Happy New Year. We hope all of you had a great holiday. We really appreciate you joining us today. We're really pleased to report that our strategic and financial momentum continues to be very strong in the first quarter. As you know our golden expectation for fiscal 2020 and for years to come are really twofold. First, to continue to be the leader in what we view as the most strategically important and lucrative segments of the performance improvement industry and second to consistently generate extremely high rates of growth in adjusted EBITDA and cash flow.

Our first quarter and latest 12 months results were very strong actually on both of these objectives. Strategically, we had a significant number of large All Access Pass client wins and expansions in the first quarter. And as shown on Slide 3, our All Access