Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Feb. 28, 2022 | Mar. 31, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2022 | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-11107 | |
Entity Registrant Name | FRANKLIN COVEY CO. | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0401551 | |
Entity Address, Address Line One | 2200 West Parkway Boulevard | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84119-2099 | |
City Area Code | 801 | |
Local Phone Number | 817-1776 | |
Title of 12(b) Security | Common Stock, $.05 Par Value | |
Trading Symbol | FC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,342,897 | |
Amendment Flag | false | |
Entity Central Index Key | 0000886206 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 61,062 | $ 47,417 |
Accounts receivable, less allowance for doubtful accounts of $4,504 and $4,643 | 47,726 | 70,680 |
Inventories | 2,472 | 2,496 |
Prepaid expenses and other current assets | 16,105 | 16,115 |
Total current assets | 127,365 | 136,708 |
Property and equipment, net | 10,032 | 11,525 |
Intangible assets, net | 47,325 | 50,097 |
Goodwill | 31,220 | 31,220 |
Deferred income tax assets | 3,658 | 4,951 |
Other long-term assets | 13,864 | 15,153 |
Total assets | 233,464 | 249,654 |
Current liabilities: | ||
Current portion of notes payable | 5,835 | 5,835 |
Current portion of financing obligation | 3,040 | 2,887 |
Accounts payable | 6,644 | 6,948 |
Deferred subscription revenue | 68,583 | 74,772 |
Other deferred revenue | 12,349 | 11,117 |
Accrued liabilities | 23,302 | 34,980 |
Total current liabilities | 119,753 | 136,539 |
Notes payable, less current portion | 10,543 | 12,975 |
Financing obligation, less current portion | 9,598 | 11,161 |
Other liabilities | 7,067 | 8,741 |
Deferred income tax liabilities | 375 | 375 |
Total liabilities | 147,336 | 169,791 |
Shareholders’ equity: | ||
Common stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued | 1,353 | 1,353 |
Additional paid-in capital | 215,348 | 214,888 |
Retained earnings | 69,281 | 63,591 |
Accumulated other comprehensive income | 533 | 709 |
Treasury stock at cost, 12,730 shares and 12,889 shares | (200,387) | (200,678) |
Total shareholders’ equity | 86,128 | 79,863 |
Total liabilities and shareholders' equity | $ 233,464 | $ 249,654 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 4,504 | $ 4,643 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 40,000 | 40,000 |
Common stock, shares issued | 27,056 | 27,056 |
Treasury stock, shares | 12,730 | 12,889 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Income (Loss) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022USD ($)$ / sharesshares | Feb. 28, 2021USD ($)$ / sharesshares | Feb. 28, 2022USD ($)$ / sharesshares | Feb. 28, 2021USD ($)$ / sharesshares | |
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net sales | $ 56,599 | $ 48,162 | $ 117,859 | $ 96,486 |
Cost of sales | 12,485 | 10,822 | 26,146 | 22,760 |
Gross profit | 44,114 | 37,340 | 91,713 | 73,726 |
Selling, general, and administrative | 38,061 | 33,623 | 77,405 | 67,306 |
Depreciation | 1,190 | 1,740 | 2,470 | 3,481 |
Amortization | 1,346 | 1,133 | 2,776 | 2,265 |
Income from operations | 3,517 | 844 | 9,062 | 674 |
Interest income | 12 | 16 | 27 | 40 |
Interest expense | (423) | (540) | (869) | (1,108) |
Income (loss) before income taxes | 3,106 | 320 | 8,220 | (394) |
Income tax provision | (1,228) | (366) | (2,530) | (544) |
Net income (loss) | $ 1,878 | $ (46) | $ 5,690 | $ (938) |
Net income (loss) per share: | ||||
Basic and diluted | $ / shares | 0.13 | 0 | 0.40 | (0.07) |
Weighted average number of common shares: | ||||
Basic | shares | 14,312 | 14,082 | 14,279 | 14,029 |
Diluted | shares | 14,333 | 14,082 | 14,323 | 14,029 |
COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 1,878 | $ (46) | $ 5,690 | $ (938) |
Foreign currency translation adjustments, net of income taxes of $0, $0, $0, and $0 | (32) | (33) | (176) | 274 |
Comprehensive income (loss) | $ 1,846 | $ (79) | $ 5,514 | $ (664) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Foreign currency translation adjustments, income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 5,690 | $ (938) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,246 | 5,746 |
Amortization of capitalized curriculum costs | 1,620 | 1,750 |
Stock-based compensation | 3,618 | 2,757 |
Deferred income taxes | 1,277 | (198) |
Change in fair value of contingent consideration liabilities | 48 | 46 |
Amortization of right-of-use operating lease assets | 475 | 509 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable, net | 22,925 | 14,978 |
Decrease in inventories | 25 | 346 |
Decrease (increase) in prepaid expenses and other assets | 353 | (344) |
Decrease in accounts payable and accrued liabilities | (11,165) | (244) |
Decrease in deferred revenue | (5,518) | (1,497) |
Decrease in income taxes payable/receivable | (238) | (87) |
Decrease in other long-term liabilities | (1,118) | (912) |
Net cash provided by operating activities | 23,238 | 21,912 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,264) | (877) |
Curriculum development costs | (774) | (1,292) |
Net cash used for investing activities | (2,038) | (2,169) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on notes payable | (2,500) | (2,500) |
Principal payments on financing obligation | (1,409) | (1,269) |
Purchases of common stock for treasury | (3,535) | (2,971) |
Payment of contingent consideration liabilities | (671) | (540) |
Proceeds from sales of common stock held in treasury | 668 | 464 |
Net cash used for financing activities | (7,447) | (6,816) |
Effect of foreign currency exchange rates on cash and cash equivalents | (108) | 279 |
Net increase in cash and cash equivalents | 13,645 | 13,206 |
Cash and cash equivalents at the beginning of the period | 47,417 | 27,137 |
Cash and cash equivalents at the end of the period | 61,062 | 40,343 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 1,302 | 788 |
Cash paid for interest | 782 | 1,085 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment financed by accounts payable | 160 | 48 |
Acquisition of right-of-use operating lease assets for operating lease liabilities | $ 338 | $ 885 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Beginning balance, shares at Aug. 31, 2020 | 27,056,000 | |||||
Beginning balance at Aug. 31, 2020 | $ 1,353 | $ 211,920 | $ 49,968 | $ 641 | ||
Beginning balance, shares, Treasury at Aug. 31, 2020 | (13,175,000) | |||||
Beginning balance, Treasury at Aug. 31, 2020 | $ (204,429) | |||||
Issuance of common stock from treasury, shares | 236,000 | |||||
Issuance of common stock from treasury | (3,411) | $ 3,668 | ||||
Purchase of common shares for treasury, shares | (89,000) | |||||
Purchase of common shares for treasury | $ (1,530) | |||||
Stock-based compensation | 1,158 | |||||
Cumulative translation adjustments | 307 | |||||
Net income (loss) | (892) | |||||
Ending balance, shares at Nov. 30, 2020 | 27,056,000 | |||||
Ending balance at Nov. 30, 2020 | $ 1,353 | 209,667 | 49,076 | 948 | ||
Ending balance, shares, Treasury at Nov. 30, 2020 | (13,028,000) | |||||
Ending balance, Treasury at Nov. 30, 2020 | $ (202,291) | |||||
Beginning balance, shares at Aug. 31, 2020 | 27,056,000 | |||||
Beginning balance at Aug. 31, 2020 | $ 1,353 | 211,920 | 49,968 | 641 | ||
Beginning balance, shares, Treasury at Aug. 31, 2020 | (13,175,000) | |||||
Beginning balance, Treasury at Aug. 31, 2020 | $ (204,429) | |||||
Cumulative translation adjustments | $ 274 | |||||
Net income (loss) | (938) | |||||
Ending balance, shares at Feb. 28, 2021 | 27,056,000 | |||||
Ending balance at Feb. 28, 2021 | $ 1,353 | 208,816 | 49,030 | 915 | ||
Ending balance, shares, Treasury at Feb. 28, 2021 | (12,915,000) | |||||
Ending balance, Treasury at Feb. 28, 2021 | $ (201,074) | |||||
Beginning balance, shares at Nov. 30, 2020 | 27,056,000 | |||||
Beginning balance at Nov. 30, 2020 | $ 1,353 | 209,667 | 49,076 | 948 | ||
Beginning balance, shares, Treasury at Nov. 30, 2020 | (13,028,000) | |||||
Beginning balance, Treasury at Nov. 30, 2020 | $ (202,291) | |||||
Issuance of common stock from treasury, shares | 143,000 | |||||
Issuance of common stock from treasury | (2,014) | $ 2,222 | ||||
Purchase of common shares for treasury, shares | (58,000) | |||||
Purchase of common shares for treasury | $ (1,441) | |||||
Restricted stock award, shares | 28,000 | |||||
Restricted stock award | (436) | $ 436 | ||||
Stock-based compensation | 1,599 | |||||
Cumulative translation adjustments | (33) | (33) | ||||
Net income (loss) | (46) | (46) | ||||
Ending balance, shares at Feb. 28, 2021 | 27,056,000 | |||||
Ending balance at Feb. 28, 2021 | $ 1,353 | 208,816 | 49,030 | 915 | ||
Ending balance, shares, Treasury at Feb. 28, 2021 | (12,915,000) | |||||
Ending balance, Treasury at Feb. 28, 2021 | $ (201,074) | |||||
Beginning balance, shares at Aug. 31, 2021 | 27,056,000 | |||||
Beginning balance at Aug. 31, 2021 | $ 1,353 | 214,888 | 63,591 | 709 | 79,863 | |
Beginning balance, shares, Treasury at Aug. 31, 2021 | (12,889,000) | |||||
Beginning balance, Treasury at Aug. 31, 2021 | $ (200,678) | |||||
Issuance of common stock from treasury, shares | 217,000 | |||||
Issuance of common stock from treasury | (3,033) | $ 3,378 | ||||
Purchase of common shares for treasury, shares | (85,000) | |||||
Purchase of common shares for treasury | $ (3,488) | |||||
Stock-based compensation | 1,649 | |||||
Cumulative translation adjustments | (144) | |||||
Net income (loss) | 3,812 | |||||
Ending balance, shares at Nov. 30, 2021 | 27,056,000 | |||||
Ending balance at Nov. 30, 2021 | $ 1,353 | 213,504 | 67,403 | 565 | ||
Ending balance, shares, Treasury at Nov. 30, 2021 | (12,757,000) | |||||
Ending balance, Treasury at Nov. 30, 2021 | $ (200,788) | |||||
Beginning balance, shares at Aug. 31, 2021 | 27,056,000 | |||||
Beginning balance at Aug. 31, 2021 | $ 1,353 | 214,888 | 63,591 | 709 | $ 79,863 | |
Beginning balance, shares, Treasury at Aug. 31, 2021 | (12,889,000) | |||||
Beginning balance, Treasury at Aug. 31, 2021 | $ (200,678) | |||||
Issuance of common stock from treasury, shares | 245,157 | |||||
Cumulative translation adjustments | $ (176) | |||||
Net income (loss) | 5,690 | |||||
Ending balance, shares at Feb. 28, 2022 | 27,056,000 | |||||
Ending balance at Feb. 28, 2022 | $ 1,353 | 215,348 | 69,281 | 533 | 86,128 | |
Ending balance, shares, Treasury at Feb. 28, 2022 | (12,730,000) | |||||
Ending balance, Treasury at Feb. 28, 2022 | $ (200,387) | |||||
Beginning balance, shares at Nov. 30, 2021 | 27,056,000 | |||||
Beginning balance at Nov. 30, 2021 | $ 1,353 | 213,504 | 67,403 | 565 | ||
Beginning balance, shares, Treasury at Nov. 30, 2021 | (12,757,000) | |||||
Beginning balance, Treasury at Nov. 30, 2021 | $ (200,788) | |||||
Issuance of common stock from treasury, shares | 15,000 | |||||
Issuance of common stock from treasury | $ 84 | $ 239 | ||||
Purchase of common shares for treasury, shares | (1,000) | |||||
Purchase of common shares for treasury | $ (47) | |||||
Restricted stock award, shares | 13,000 | |||||
Restricted stock award | $ (209) | $ 209 | ||||
Stock-based compensation | 1,969 | |||||
Cumulative translation adjustments | (32) | (32) | ||||
Net income (loss) | 1,878 | 1,878 | ||||
Ending balance, shares at Feb. 28, 2022 | 27,056,000 | |||||
Ending balance at Feb. 28, 2022 | $ 1,353 | $ 215,348 | $ 69,281 | $ 533 | $ 86,128 | |
Ending balance, shares, Treasury at Feb. 28, 2022 | (12,730,000) | |||||
Ending balance, Treasury at Feb. 28, 2022 | $ (200,387) |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Feb. 28, 2022 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | NOTE 1 – BASIS OF PRESENTATION General Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. We have a wide range of content delivery options, including: the All Access Pass (AAP) subscription, the Leader in Me membership, and other intellectual property licenses; digital online learning; on-site training; training led through certified facilitators; blended learning; and organization-wide transformational processes, including consulting and coaching. We believe our investments in digital delivery modalities over the past few years have enabled us to deliver our content to clients in a high-quality learning environment whether those clients are working remotely or in a centralized location. We believe that our clients are able to utilize our content to create cultures whose hallmarks are high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders. We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader in Me, The 4 Disciplines of Execution, and Multipliers, and proprietary content in the areas of Execution, Sales Performance, Productivity, Educational Improvement, and Customer Loyalty. Our offerings are described in further detail at www.franklincovey.com. The information posted on our website is not incorporated into this report. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2021. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the quarter and two quarters ended February 28, 2022 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2022, or for any future periods. Note on the Continuing COVID-19 Pandemic The COVID-19 pandemic continues to produce difficult economic and operating conditions for certain areas of our business, including our international direct offices and licensee partners as countries and local municipalities have maintained a variety of measures designed to contain the spread of the virus. These measures included the closure of offices, schools, and other meeting spaces. These efforts persist in the face of new variants, increasing cases, and ongoing uncertainty regarding the pandemic. While our content is able to be presented digitally and is translated into numerous languages, the technology base differs significantly among countries, which may impede the smooth delivery of content to remote work locations. We remain optimistic about the future as we continue to see signs of economic recovery in the United States and many of the other countries in which we operate as companies, schools, and individuals are adapting, and the positive effect of vaccinations and therapeutics are enabling some economies to open and recover. However, emerging variants continue to create uncertainty and many countries, states, and local governments may continue to implement additional lockdowns or other containment measures in future periods. These measures change rapidly to new and perceived threats and may have an adverse impact on our results of operations in future periods. We will continue to monitor developments related to the COVID-19 pandemic, including supply chain issues, and their actual and potential impacts on our financial position, results of operations, and liquidity. Accounting Pronouncements Issued and Adopted In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The guidance in ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2022 | |
Inventories [Abstract] | |
Inventories | NOTE 2 – INVENTORIES Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method, and were comprised of the following (in thousands): February 28, August 31, 2022 2021Finished goods$ 2,445 $ 2,468Raw materials 27 28 $ 2,472 $ 2,496 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Feb. 28, 2022 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS At February 28, 2022, the carrying value of our financial instruments approximated their fair values. The fair values of our contingent consideration liabilities from previous business acquisitions are considered “Level 3” measurements because we use various estimates in the valuation models to project the timing and amount of future contingent payments. The fair value of the contingent consideration liability from the acquisition of Jhana Education (Jhana) changed as follows during the quarter and two quarters ended February 28, 2022 (in thousands): Balance at August 31, 2021 $ 2,095 Change in fair value 28 Payments (368)Balance at November 30, 2021 1,755 Change in fair value 20Payments (303)Balance at February 28, 2022 $ 1,472 At each quarterly reporting date, we estimate the fair value of our contingent liability from the acquisition of Jhana through the use of a Monte Carlo simulation. Based on the timing of expected payments, all of the Jhana contingent consideration liability was recorded in accrued liabilities at February 28, 2022. Adjustments to the fair value of our contingent consideration liabilities are included in selling, general, and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Feb. 28, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 4 – REVENUE RECOGNITION Contract Balances Our deferred revenue totaled $83.0 million at February 28, 2022 and $88.6 million at August 31, 2021, of which $2.1 million and $2.7 million were classified as components of other long-term liabilities at February 28, 2022, and August 31, 2021, respectively. The amount of deferred revenue that was generated from subscription offerings totaled $70.4 million at February 28, 2022 and $77.0 million at August 31, 2021. During the quarter and two quarters ended February 28, 2022, we recognized $28.0 million and $56.4 million of previously deferred subscription revenue. Remaining Performance Obligations When possible, we enter into multi-year non-cancellable contracts which are invoiced either upon execution of the contract or at the beginning of each annual contract period. Remaining transaction price represents contracted revenue that has not yet been recognized, including unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price is influenced by factors such as seasonality, the average length of the contract term, and the ability of the Company to continue to enter into multi-year non-cancellable contracts. At February 28, 2022, we had $119.3 million of remaining performance obligations, including the amount of deferred revenue related to our subscription offerings. The remaining performance obligation does not include other deferred revenue, as amounts included in other deferred revenue include items such as deposits that are generally refundable at the client’s request prior to the satisfaction of the obligation. Disaggregated Revenue Information Refer to Note 7, Segment Information, to these condensed consolidated financial statements for our disaggregated revenue information. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Feb. 28, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 5 – STOCK-BASED COMPENSATION Our stock-based compensation was comprised of the following for the periods presented (in thousands): Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Long-term incentive awards$ 1,375 $ 1,368 $ 2,498 $ 2,314 Strive acquisition compensation 366 - 645 -Restricted stock awards 168 175 343 350 Employee stock purchase plan 60 56 117 93 Fully-vested share awards - - 15 - $ 1,969 $ 1,599 $ 3,618 $ 2,757 During the two quarters ended February 28, 2022, we issued 245,157 shares of our common stock under various stock-based compensation arrangements, including our employee stock purchase plan (ESPP). Our stock-based compensation plans also allow shares to be withheld to cover statutory income taxes if so elected by the award recipient. During the two quarters ended February 28, 2022, we withheld 86,125 shares of our common stock for taxes on stock-based compensation arrangements, which had a total fair value of $3.5 million. Adoption of the Franklin Covey Co. 2022 Omnibus Incentive Plan On January 14, 2022, our shareholders approved the Franklin Covey Co. 2022 Omnibus Incentive Plan (the 2022 Plan), which authorized an additional 1,000,000 shares of common stock for issuance as stock-based payments. A more detailed description of the 2022 Plan is set forth in our Definitive Proxy Statement filed with the SEC on December 15, 2021. Fiscal 2022 Long-Term Incentive Plan Award On February 4, 2022, the Compensation Committee granted a new LTIP award to our executive officers and members of senior management. The fiscal 2022 LTIP award has two tranches, one with a time-based vesting condition and one with a performance-based vesting condition as described below: Time-Based Award Shares – Twenty-five percent of the 2022 LTIP award shares vest to participants on August 31, 2024. The number of shares that may be earned by participants at the end of the service period totals 24,649 shares. The number of shares awarded in this tranche does not fluctuate based on the achievement of financial measures. Performance-Based Award Shares – The remaining shares of the fiscal 2022 LTIP award are earned based on the highest rolling four-quarter level of qualified adjusted earnings before interest, income taxes, depreciation, amortization, and certain other charges (Adjusted EBITDA) achieved in the three-year period ending August 31, 2024. The number of shares that will vest to participants for this tranche is variable and may be 50 percent of the award (minimum award threshold) or up to 200 percent of the participant’s award (maximum threshold) depending on the level of qualified Adjusted EBITDA achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 73,929 shares. The maximum number of shares that may be awarded in connection with the performance-based tranche of the 2022 LTIP totals 147,840 shares. Fiscal 2022 Restricted Stock Award Our annual restricted stock award granted to non-employee members of the Board of Directors is administered under the terms of our omnibus incentive plans, and is designed to provide our non-employee directors, who are not eligible to participate in our employee stock purchase plan, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock. The annual award is granted in January (following the annual shareholders’ meeting) of each year. For the fiscal 2022 award, each eligible director received a whole-share grant equal to $110,000 with a one year vesting period. Our restricted stock award activity during the two quarters ended February 28, 2022 consisted of the following: Weighted-Average Grant Date Number of Fair Value Shares Per ShareRestricted stock awards at August 31, 2021 28,049 $ 24.96 Granted 13,260 49.78 Forfeited - -Vested (28,049) 24.96 Restricted stock awards at February 28, 2022 13,260 $ 49.78 Employee Stock Purchase Plan We have an employee stock purchase plan that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of each fiscal quarter. During the quarter and two quarters ended February 28, 2022, we issued 8,667 shares and 18,046 shares of our common stock to participants in the ESPP. |
Income (Loss) Per Share
Income (Loss) Per Share | 6 Months Ended |
Feb. 28, 2022 | |
Income (Loss) Per Share [Abstract] | |
Income (Loss) Per Share | NOTE 6 – INCOME (LOSS) PER SHARE The following schedule shows the calculation of income (loss) per share for the periods presented (in thousands, except per-share amounts). Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Numerator for basic and diluted loss per share: Net income (loss)$ 1,878 $ (46) $ 5,690 $ (938) Denominator for basic and diluted loss per share: Basic weighted average shares outstanding 14,312 14,082 14,279 14,029 Effect of dilutive securities: Other stock-based awards 21 - 44 -Diluted weighted average shares outstanding 14,333 14,082 14,323 14,029 EPS Calculations: Net income (loss) per share: Basic and diluted$ 0.13 $(0.00) $ 0.40 $ (0.07) |
Segment Information
Segment Information | 6 Months Ended |
Feb. 28, 2022 | |
Segment Information [Abstract] | |
Segment Information | NOTE 7 – SEGMENT INFORMATION Segment Information Our sales are primarily comprised of training and consulting services and our internal reporting and operating structure is currently organized around two divisions. The Enterprise Division, which consists of our Direct Office and International Licensee segments and the Education Division, which is comprised of our Education practice. Based on the applicable guidance, our operations are comprised of three reportable segments and one corporate services group. The following is a brief description of our reportable segments: Direct Offices – Our Direct Office segment has a depth of expertise in helping organizations solve problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. We have a variety of principle-based offerings that help build winning and profitable cultures. This segment includes our sales personnel that serve the United States and Canada; our international sales offices located in Japan, China, the United Kingdom, Australia, Germany, Switzerland, and Austria; our government services sales channel; and our book and audio sales. International Licensees – Our independently owned international licensees provide our offerings and services in countries where we do not have a directly-owned office. These licensee partners allow us to expand the reach of our services to large multinational organizations as well as smaller organizations in their countries. This segment’s results are primarily comprised of royalty revenues received from these licensees. Education Practice – Centered around the principles found in The Leader in Me, the Education practice is dedicated to helping educational institutions build a culture that will produce great results. We believe these results are manifested by increases in student performance, improved school culture, decreased disciplinary issues, and increased teacher engagement and parental involvement. This segment includes our domestic and international Education practice operations, which are focused on sales to educational institutions such as elementary schools, high schools, and colleges and universities. Corporate and Other – Our corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp., and certain corporate administrative functions. We have determined that the Company’s chief operating decision maker is the Chief Executive Officer, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts disclosed by other companies. Adjusted EBITDA is a non-GAAP financial measure. For reporting purposes, our consolidated Adjusted EBITDA may be calculated as net income (loss) excluding interest expense, income taxes, depreciation expense, intangible asset amortization expense, stock-based compensation, and certain other charges such as adjustments for changes in the fair value of contingent liabilities arising from business acquisitions. We reference this non-GAAP financial measure in our decision making because it provides supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe it provides investors with greater transparency to evaluate operational activities and financial results. Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the reportable segments for analysis purposes. Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes. We account for the following segment information on the same basis as the accompanying condensed consolidated financial statements (in thousands). Sales to Quarter Ended External AdjustedFebruary 28, 2022 Customers Gross Profit EBITDA Enterprise Division: Direct offices$ 41,502 $ 33,948 $ 8,732International licensees 2,588 2,304 1,444 44,090 36,252 10,176Education practice 11,066 7,098 (324)Corporate and eliminations 1,443 764 (1,810)Consolidated$ 56,599 $ 44,114 $ 8,042 Quarter Ended February 28, 2021 Enterprise Division: Direct offices$ 35,738 $ 29,084 $ 6,131 International licensees 2,429 2,100 1,505 38,167 31,184 7,636 Education practice 8,478 5,344 (858)Corporate and eliminations 1,517 812 (1,655)Consolidated$ 48,162 $ 37,340 $ 5,123 Two Quarters Ended February 28, 2022 Enterprise Division: Direct offices$ 86,621 $ 70,150 $ 18,686International licensees 5,586 5,005 3,115 92,207 75,155 21,801Education practice 22,763 14,959 (89)Corporate and eliminations 2,889 1,599 (3,738)Consolidated$ 117,859 $ 91,713 $ 17,974 Two Quarters Ended February 28, 2021 Enterprise Division: Direct offices$ 72,481 $ 58,523 $ 12,827 International licensees 5,026 4,385 2,795 77,507 62,908 15,622 Education practice 15,975 9,331 (3,142)Corporate and eliminations 3,004 1,487 (3,641)Consolidated$ 96,486 $ 73,726 $ 8,839 A reconciliation of our consolidated Adjusted EBITDA to consolidated net income (loss) is provided below (in thousands). Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Segment Adjusted EBITDA$ 9,852 $ 6,778 $ 21,712 $ 12,480 Corporate expenses (1,810) (1,655) (3,738) (3,641)Consolidated Adjusted EBITDA 8,042 5,123 17,974 8,839 Stock-based compensation (1,969) (1,599) (3,618) (2,757)Increase in the fair value of contingent consideration liabilities (20) 16 (48) (46)Government COVID-19 assistance - 27 - 234 Gain from insurance settlement - 150 - 150 Depreciation (1,190) (1,740) (2,470) (3,481)Amortization (1,346) (1,133) (2,776) (2,265)Income (loss) from operations 3,517 844 9,062 674 Interest income 12 16 27 40 Interest expense (423) (540) (869) (1,108)Income (loss) before income taxes 3,106 320 8,220 (394)Income tax provision (1,228) (366) (2,530) (544)Net income (loss)$ 1,878 $ (46) $ 5,690 $ (938) Revenue by Category The following table presents our revenue disaggregated by geographic region (in thousands). Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021 Americas$ 46,447 $ 38,828 $ 95,202 $ 77,155 Asia Pacific 6,489 6,622 14,287 13,428 Europe/Middle East/Africa 3,663 2,712 8,370 5,903 $ 56,599 $ 48,162 $ 117,859 $ 96,486 The following table presents our revenue disaggregated by type of service (in thousands). Quarter Ended Services and Leases and February 28, 2022 Products Subscriptions Royalties Other Consolidated Enterprise Division: Direct offices$ 20,212 $ 20,553 $ 737 $ - $ 41,502International licensees 99 313 2,176 - 2,588 20,311 20,866 2,913 - 44,090Education practice 2,844 7,128 1,094 - 11,066Corporate and eliminations - - 220 1,223 1,443Consolidated$ 23,155 $ 27,994 $ 4,227 $ 1,223 $ 56,599 Quarter Ended February 28, 2021 Enterprise Division: Direct offices$ 17,912 $ 17,132 $ 694 $ - $ 35,738 International licensees 522 - 1,907 - 2,429 18,434 17,132 2,601 - 38,167 Education practice 1,797 5,731 950 - 8,478 Corporate and eliminations - - 373 1,144 1,517 Consolidated$ 20,231 $ 22,863 $ 3,924 $ 1,144 $ 48,162 Two Quarters Ended February 28, 2022 Enterprise Division: Direct offices$ 44,063 $ 41,065 $ 1,493 $ - $ 86,621International licensees 212 605 4,769 - 5,586 44,275 41,670 6,262 - 92,207Education practice 6,070 14,972 1,721 - 22,763Corporate and eliminations - - 564 2,325 2,889Consolidated$ 50,345 $ 56,642 $ 8,547 $ 2,325 $ 117,859 Two Quarters Ended February 28, 2021 Enterprise Division: Direct offices$ 37,323 $ 33,747 $ 1,411 $ - $ 72,481 International licensees 854 - 4,172 - 5,026 38,177 33,747 5,583 - 77,507 Education practice 3,721 10,805 1,449 - 15,975 Corporate and eliminations - - 708 2,296 3,004 Consolidated$ 41,898 $ 44,552 $ 7,740 $ 2,296 $ 96,486 |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 6 Months Ended |
Feb. 28, 2022 | |
Basis Of Presentation [Abstract] | |
General | General Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. We have a wide range of content delivery options, including: the All Access Pass (AAP) subscription, the Leader in Me membership, and other intellectual property licenses; digital online learning; on-site training; training led through certified facilitators; blended learning; and organization-wide transformational processes, including consulting and coaching. We believe our investments in digital delivery modalities over the past few years have enabled us to deliver our content to clients in a high-quality learning environment whether those clients are working remotely or in a centralized location. We believe that our clients are able to utilize our content to create cultures whose hallmarks are high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders. We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader in Me, The 4 Disciplines of Execution, and Multipliers, and proprietary content in the areas of Execution, Sales Performance, Productivity, Educational Improvement, and Customer Loyalty. Our offerings are described in further detail at www.franklincovey.com. The information posted on our website is not incorporated into this report. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2021. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the quarter and two quarters ended February 28, 2022 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2022, or for any future periods. |
Note On The Continuing COVID-19 Pandemic | Note on the Continuing COVID-19 Pandemic The COVID-19 pandemic continues to produce difficult economic and operating conditions for certain areas of our business, including our international direct offices and licensee partners as countries and local municipalities have maintained a variety of measures designed to contain the spread of the virus. These measures included the closure of offices, schools, and other meeting spaces. These efforts persist in the face of new variants, increasing cases, and ongoing uncertainty regarding the pandemic. While our content is able to be presented digitally and is translated into numerous languages, the technology base differs significantly among countries, which may impede the smooth delivery of content to remote work locations. We remain optimistic about the future as we continue to see signs of economic recovery in the United States and many of the other countries in which we operate as companies, schools, and individuals are adapting, and the positive effect of vaccinations and therapeutics are enabling some economies to open and recover. However, emerging variants continue to create uncertainty and many countries, states, and local governments may continue to implement additional lockdowns or other containment measures in future periods. These measures change rapidly to new and perceived threats and may have an adverse impact on our results of operations in future periods. We will continue to monitor developments related to the COVID-19 pandemic, including supply chain issues, and their actual and potential impacts on our financial position, results of operations, and liquidity. |
Accounting Pronouncements Issued And Adopted | Accounting Pronouncements Issued and Adopted In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The guidance in ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Inventories [Abstract] | |
Components Of Inventories | February 28, August 31, 2022 2021Finished goods$ 2,445 $ 2,468Raw materials 27 28 $ 2,472 $ 2,496 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Fair Value Of Financial Instruments [Abstract] | |
Schedule Of Contingent Consideration Liability | Balance at August 31, 2021 $ 2,095 Change in fair value 28 Payments (368)Balance at November 30, 2021 1,755 Change in fair value 20Payments (303)Balance at February 28, 2022 $ 1,472 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Stock-Based Compensation [Abstract] | |
Total Cost Of Stock-Based Compensation | Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Long-term incentive awards$ 1,375 $ 1,368 $ 2,498 $ 2,314 Strive acquisition compensation 366 - 645 -Restricted stock awards 168 175 343 350 Employee stock purchase plan 60 56 117 93 Fully-vested share awards - - 15 - $ 1,969 $ 1,599 $ 3,618 $ 2,757 |
Restricted Stock Award Activity | Weighted-Average Grant Date Number of Fair Value Shares Per ShareRestricted stock awards at August 31, 2021 28,049 $ 24.96 Granted 13,260 49.78 Forfeited - -Vested (28,049) 24.96 Restricted stock awards at February 28, 2022 13,260 $ 49.78 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Income (Loss) Per Share [Abstract] | |
Computation Of Income (Loss) Per Share | Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Numerator for basic and diluted loss per share: Net income (loss)$ 1,878 $ (46) $ 5,690 $ (938) Denominator for basic and diluted loss per share: Basic weighted average shares outstanding 14,312 14,082 14,279 14,029 Effect of dilutive securities: Other stock-based awards 21 - 44 -Diluted weighted average shares outstanding 14,333 14,082 14,323 14,029 EPS Calculations: Net income (loss) per share: Basic and diluted$ 0.13 $(0.00) $ 0.40 $ (0.07) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Segment Information [Abstract] | |
Schedule Of Segment Operations | Sales to Quarter Ended External AdjustedFebruary 28, 2022 Customers Gross Profit EBITDA Enterprise Division: Direct offices$ 41,502 $ 33,948 $ 8,732International licensees 2,588 2,304 1,444 44,090 36,252 10,176Education practice 11,066 7,098 (324)Corporate and eliminations 1,443 764 (1,810)Consolidated$ 56,599 $ 44,114 $ 8,042 Quarter Ended February 28, 2021 Enterprise Division: Direct offices$ 35,738 $ 29,084 $ 6,131 International licensees 2,429 2,100 1,505 38,167 31,184 7,636 Education practice 8,478 5,344 (858)Corporate and eliminations 1,517 812 (1,655)Consolidated$ 48,162 $ 37,340 $ 5,123 Two Quarters Ended February 28, 2022 Enterprise Division: Direct offices$ 86,621 $ 70,150 $ 18,686International licensees 5,586 5,005 3,115 92,207 75,155 21,801Education practice 22,763 14,959 (89)Corporate and eliminations 2,889 1,599 (3,738)Consolidated$ 117,859 $ 91,713 $ 17,974 Two Quarters Ended February 28, 2021 Enterprise Division: Direct offices$ 72,481 $ 58,523 $ 12,827 International licensees 5,026 4,385 2,795 77,507 62,908 15,622 Education practice 15,975 9,331 (3,142)Corporate and eliminations 3,004 1,487 (3,641)Consolidated$ 96,486 $ 73,726 $ 8,839 |
Reconciliation Of Adjusted EBITDA | Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021Segment Adjusted EBITDA$ 9,852 $ 6,778 $ 21,712 $ 12,480 Corporate expenses (1,810) (1,655) (3,738) (3,641)Consolidated Adjusted EBITDA 8,042 5,123 17,974 8,839 Stock-based compensation (1,969) (1,599) (3,618) (2,757)Increase in the fair value of contingent consideration liabilities (20) 16 (48) (46)Government COVID-19 assistance - 27 - 234 Gain from insurance settlement - 150 - 150 Depreciation (1,190) (1,740) (2,470) (3,481)Amortization (1,346) (1,133) (2,776) (2,265)Income (loss) from operations 3,517 844 9,062 674 Interest income 12 16 27 40 Interest expense (423) (540) (869) (1,108)Income (loss) before income taxes 3,106 320 8,220 (394)Income tax provision (1,228) (366) (2,530) (544)Net income (loss)$ 1,878 $ (46) $ 5,690 $ (938) |
Schedule Of Revenue Disaggregated By Category | The following table presents our revenue disaggregated by geographic region (in thousands). Quarter Ended Two Quarters Ended February 28, February 28, February 28, February 28, 2022 2021 2022 2021 Americas$ 46,447 $ 38,828 $ 95,202 $ 77,155 Asia Pacific 6,489 6,622 14,287 13,428 Europe/Middle East/Africa 3,663 2,712 8,370 5,903 $ 56,599 $ 48,162 $ 117,859 $ 96,486 The following table presents our revenue disaggregated by type of service (in thousands). Quarter Ended Services and Leases and February 28, 2022 Products Subscriptions Royalties Other Consolidated Enterprise Division: Direct offices$ 20,212 $ 20,553 $ 737 $ - $ 41,502International licensees 99 313 2,176 - 2,588 20,311 20,866 2,913 - 44,090Education practice 2,844 7,128 1,094 - 11,066Corporate and eliminations - - 220 1,223 1,443Consolidated$ 23,155 $ 27,994 $ 4,227 $ 1,223 $ 56,599 Quarter Ended February 28, 2021 Enterprise Division: Direct offices$ 17,912 $ 17,132 $ 694 $ - $ 35,738 International licensees 522 - 1,907 - 2,429 18,434 17,132 2,601 - 38,167 Education practice 1,797 5,731 950 - 8,478 Corporate and eliminations - - 373 1,144 1,517 Consolidated$ 20,231 $ 22,863 $ 3,924 $ 1,144 $ 48,162 Two Quarters Ended February 28, 2022 Enterprise Division: Direct offices$ 44,063 $ 41,065 $ 1,493 $ - $ 86,621International licensees 212 605 4,769 - 5,586 44,275 41,670 6,262 - 92,207Education practice 6,070 14,972 1,721 - 22,763Corporate and eliminations - - 564 2,325 2,889Consolidated$ 50,345 $ 56,642 $ 8,547 $ 2,325 $ 117,859 Two Quarters Ended February 28, 2021 Enterprise Division: Direct offices$ 37,323 $ 33,747 $ 1,411 $ - $ 72,481 International licensees 854 - 4,172 - 5,026 38,177 33,747 5,583 - 77,507 Education practice 3,721 10,805 1,449 - 15,975 Corporate and eliminations - - 708 2,296 3,004 Consolidated$ 41,898 $ 44,552 $ 7,740 $ 2,296 $ 96,486 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Inventories [Abstract] | ||
Finished goods | $ 2,445 | $ 2,468 |
Raw materials | 27 | 28 |
Inventories | $ 2,472 | $ 2,496 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Schedule Of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2022 | Nov. 30, 2021 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Business Acquisition, Contingent Consideration [Line Items] | |||||
Change in fair value | $ 20 | $ (16) | $ 48 | $ 46 | |
Jhana [Member] | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Balance at beginning | 1,755 | $ 2,095 | 2,095 | ||
Change in fair value | 20 | 28 | |||
Payments | (303) | (368) | |||
Balance at ending | $ 1,472 | $ 1,755 | $ 1,472 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2022 | Aug. 31, 2021 | |
Deferred revenue | $ 83 | $ 83 | $ 88.6 |
Other long-term liabilities | 2.1 | 2.1 | 2.7 |
Remaining performance obligations | 119.3 | 119.3 | |
Subscription Offerings [Member] | |||
Deferred revenue | 70.4 | 70.4 | $ 77 |
Subscription [Member] | |||
Deferred revenue recognized | $ 28 | $ 56.4 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | Jan. 14, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Feb. 28, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock issued from treasury stock | 245,157 | |||||
Shares withheld for tax | 86,125 | |||||
Shares withheld for tax, fair value | $ 3,500,000 | |||||
Vesting period of awards | 1 year | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price of common stock as a percent of the average fair market value | 85.00% | |||||
Shares issued to employee stock purchase plan participants | 8,667 | 18,046 | ||||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of common stock issued from treasury | ||||||
Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Whole-share grant per eligible director | $ 110,000 | |||||
Time-Based Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of performance award to be granted | 25.00% | |||||
Shares may be awarded | 24,649 | |||||
Performance-Based Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued under terms of the award | 73,929 | |||||
Performance-Based Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of performance-based objectives | 100.00% | 100.00% | ||||
Performance-Based Award [Member] | Common Stock [Member] | 2022 Omnibus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized additional shares of common stock for issuance | 1,000,000 | |||||
Tranche One and Two [Member] | Performance-Based Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares may be awarded | 147,840 | |||||
Tranche One and Two [Member] | Performance-Based Award [Member] | Minimum [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of performance award to be granted | 50.00% | |||||
Tranche One and Two [Member] | Performance-Based Award [Member] | Maximum [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of performance award to be granted | 200.00% |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1,969 | $ 1,599 | $ 3,618 | $ 2,757 |
Long-Term Incentive Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 1,375 | 1,368 | 2,498 | 2,314 |
Strive Acquisition Compensation [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 366 | 645 | ||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 168 | 175 | 343 | 350 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 60 | $ 56 | 117 | $ 93 |
Fully-Vested Share Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 15 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Award Activity) (Details) | 6 Months Ended |
Feb. 28, 2022$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Restricted stock awards at August 31, 2021, Number of Shares | shares | 28,049 |
Granted, Number of Shares | shares | 13,260 |
Vested, Number of Shares | shares | (28,049) |
Restricted stock awards at February 28, 2022, Number of Shares | shares | 13,260 |
Restricted stock awards at August 31, 2021, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 24.96 |
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 49.78 |
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 24.96 |
Restricted stock awards at February 28, 2022, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 49.78 |
Income (Loss) Per Share (Comput
Income (Loss) Per Share (Computation Of Income (Loss) Per Share) (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022USD ($)$ / sharesshares | Feb. 28, 2021USD ($)$ / sharesshares | Feb. 28, 2022USD ($)$ / sharesshares | Feb. 28, 2021USD ($)$ / sharesshares | |
Numerator for basic and diluted loss per share: | ||||
Net income (loss) | $ | $ 1,878 | $ (46) | $ 5,690 | $ (938) |
Denominator for basic and diluted loss per share: | ||||
Basic weighted average shares outstanding | 14,312 | 14,082 | 14,279 | 14,029 |
Effect of dilutive securities: | ||||
Other stock-based awards | 21 | 44 | ||
Diluted weighted average shares outstanding | 14,333 | 14,082 | 14,323 | 14,029 |
EPS Calculations: | ||||
Earnings Per Share Including Basic And Diluted | $ / shares | 0.13 | 0 | 0.40 | (0.07) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2022itemsegment | |
Segment Information [Abstract] | |
Number of divisions | 2 |
Number of operating reportable segments | segment | 3 |
Number of corporate services group | 1 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | $ 56,599 | $ 48,162 | $ 117,859 | $ 96,486 |
Gross Profit | 44,114 | 37,340 | 91,713 | 73,726 |
Adjusted EBITDA | 8,042 | 5,123 | 17,974 | 8,839 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 9,852 | 6,778 | 21,712 | 12,480 |
Operating Segments [Member] | Enterprise Division [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | 44,090 | 38,167 | 92,207 | 77,507 |
Gross Profit | 36,252 | 31,184 | 75,155 | 62,908 |
Adjusted EBITDA | 10,176 | 7,636 | 21,801 | 15,622 |
Operating Segments [Member] | Education practice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | 11,066 | 8,478 | 22,763 | 15,975 |
Gross Profit | 7,098 | 5,344 | 14,959 | 9,331 |
Adjusted EBITDA | (324) | (858) | (89) | (3,142) |
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | 41,502 | 35,738 | 86,621 | 72,481 |
Gross Profit | 33,948 | 29,084 | 70,150 | 58,523 |
Adjusted EBITDA | 8,732 | 6,131 | 18,686 | 12,827 |
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | 2,588 | 2,429 | 5,586 | 5,026 |
Gross Profit | 2,304 | 2,100 | 5,005 | 4,385 |
Adjusted EBITDA | 1,444 | 1,505 | 3,115 | 2,795 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to External Customers | 1,443 | 1,517 | 2,889 | 3,004 |
Gross Profit | 764 | 812 | 1,599 | 1,487 |
Adjusted EBITDA | $ (1,810) | $ (1,655) | $ (3,738) | $ (3,641) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Segment Reporting Information [Line Items] | ||||
Consolidated Adjusted EBITDA | $ 8,042 | $ 5,123 | $ 17,974 | $ 8,839 |
Stock-based compensation | (1,969) | (1,599) | (3,618) | (2,757) |
Increase in the fair value of contingent consideration liabilities | (20) | 16 | (48) | (46) |
Government COVID-19 assistance | 27 | 234 | ||
Gain from insurance settlement | 150 | 150 | ||
Depreciation | (1,190) | (1,740) | (2,470) | (3,481) |
Amortization | (1,346) | (1,133) | (2,776) | (2,265) |
Income from operations | 3,517 | 844 | 9,062 | 674 |
Interest income | 12 | 16 | 27 | 40 |
Interest expense | (423) | (540) | (869) | (1,108) |
Income (loss) before income taxes | 3,106 | 320 | 8,220 | (394) |
Income tax provision | (1,228) | (366) | (2,530) | (544) |
Net income (loss) | 1,878 | (46) | 5,690 | (938) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated Adjusted EBITDA | 9,852 | 6,778 | 21,712 | 12,480 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated Adjusted EBITDA | (1,810) | (1,655) | (3,738) | (3,641) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated Adjusted EBITDA | $ (1,810) | $ (1,655) | $ (3,738) | $ (3,641) |
Segment Information (Schedule_2
Segment Information (Schedule Of Revenue Disaggregated By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 56,599 | $ 48,162 | $ 117,859 | $ 96,486 |
Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 46,447 | 38,828 | 95,202 | 77,155 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,489 | 6,622 | 14,287 | 13,428 |
Europe/Middle East/Africa [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,663 | $ 2,712 | $ 8,370 | $ 5,903 |
Segment Information (Schedule_3
Segment Information (Schedule Of Revenue Disaggregated By Type Of Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 56,599 | $ 48,162 | $ 117,859 | $ 96,486 |
Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,443 | 1,517 | 2,889 | 3,004 |
Services And Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,155 | 20,231 | 50,345 | 41,898 |
Subscriptions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,994 | 22,863 | 56,642 | 44,552 |
Royalties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,227 | 3,924 | 8,547 | 7,740 |
Royalties [Member] | Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 220 | 373 | 564 | 708 |
Leases And Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,223 | 1,144 | 2,325 | 2,296 |
Leases And Other [Member] | Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,223 | 1,144 | 2,325 | 2,296 |
Operating Segments [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,090 | 38,167 | 92,207 | 77,507 |
Operating Segments [Member] | Education practice [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,066 | 8,478 | 22,763 | 15,975 |
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41,502 | 35,738 | 86,621 | 72,481 |
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,588 | 2,429 | 5,586 | 5,026 |
Operating Segments [Member] | Services And Products [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,311 | 18,434 | 44,275 | 38,177 |
Operating Segments [Member] | Services And Products [Member] | Education practice [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,844 | 1,797 | 6,070 | 3,721 |
Operating Segments [Member] | Services And Products [Member] | Direct Offices [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,212 | 17,912 | 44,063 | 37,323 |
Operating Segments [Member] | Services And Products [Member] | International Licensees [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 99 | 522 | 212 | 854 |
Operating Segments [Member] | Subscriptions [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,866 | 17,132 | 41,670 | 33,747 |
Operating Segments [Member] | Subscriptions [Member] | Education practice [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,128 | 5,731 | 14,972 | 10,805 |
Operating Segments [Member] | Subscriptions [Member] | Direct Offices [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,553 | 17,132 | 41,065 | 33,747 |
Operating Segments [Member] | Subscriptions [Member] | International Licensees [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 313 | 605 | ||
Operating Segments [Member] | Royalties [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,913 | 2,601 | 6,262 | 5,583 |
Operating Segments [Member] | Royalties [Member] | Education practice [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,094 | 950 | 1,721 | 1,449 |
Operating Segments [Member] | Royalties [Member] | Direct Offices [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 737 | 694 | 1,493 | 1,411 |
Operating Segments [Member] | Royalties [Member] | International Licensees [Member] | Enterprise Division [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,176 | $ 1,907 | $ 4,769 | $ 4,172 |