Franklin Covey Now Expects to Exceed the High End of its Previously Announced Adjusted EBITDA Guidance Range of $24 Million to $26 Million for Fiscal 2012
Franklin Covey Co. (NYSE: FC) today announced, that, based on the strength of its results during the fiscal third quarter ended May 26, 2012, the strength of its contractual booking trends, and the resulting 23% increase in the size of its contractual pipeline, it is increasing its guidance for Adjusted EBITDA for fiscal 2012 (ending August 31, 2012), to a range of $26 million - $27 million (approximately 23% - 27% growth compared to fiscal 2011), from its previously announced Adjusted EBITDA guidance range of $24-$26 million.
The Company also said that it was pleased that, on top of the 34% revenue growth achieved in the third quarter of fiscal 2011 (from $30.5 million to $40.9 million, reflecting, in significant part, the recognition of revenue from a large, ongoing, government agency training contract in last year's fiscal third quarter), it expects revenue for its fiscal third quarter to slightly exceed the $40.9 million in revenue achieved in last year's third quarter, making it the strongest third quarter ever for the Company's current business. The Company also said that adding to last year's 161% growth in Adjusted EBITDA (from $2.0 million to $5.2 million), it expects Adjusted EBITDA to also increase for the quarter. With this strong third quarter performance, and its record level of bookings and pipeline for future delivery, the Company expects to achieve strong growth in both revenue and Adjusted EBITDA during its fiscal fourth quarter, and, as a result, has increased its guidance for Adjusted EBITDA to a range of $26 million - $27 million.
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