Franklin Covey announced financial results for its fiscal 2016 second quarter ended February 27, 2016. Consolidated revenue was $45.3 million compared with $46.3 million in Q2 2015.
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Second quarter gross profit was $29.9 million compared with $30.0 million in the second quarter of fiscal 2015. The gross margin improved to 65.9% of sales compared with 64.8% in the second quarter of the prior year.
Adjusted EBITDA: Adjusted EBITDA for the second quarter increased 15% to $4.4 million compared with $3.8 million in the second quarter of fiscal 2015.
Excluding $0.6 million of adverse impact from foreign exchange rates during the quarter, Adjusted EBITDA increased 29% compared with the second quarter of the prior year.
Franklin Covey reported a loss from operations of $0.3 million compared with $1.2 million of income in the second quarter of fiscal 2015.
The company reported a second quarter fiscal 2016 net loss of $0.4 million compared with net income totaling $0.4 million in the second quarter of fiscal 2015, reflecting the above-noted factors.
Franklin Covey reported a loss per share for the quarter ended February 27, 2016 of $(.03) compared with diluted EPS of $.02 per share in the second quarter of fiscal 2015.
The company’s cash flows, liquidity, and balance sheet continue to remain strong. Cash provided by operating activities through February 27, 2016 increased $4.6 million, or 38%, to $16.8 million compared with $12.2 million in the first half of the prior year.
After completion of its previously announced tender offer, in which Franklin Covey acquired 1,971,832 shares of its common stock for $35.3 million, the company had $5.3 million of cash and $10.1 million outstanding on its long-term revolving credit facility. As a result of strong ongoing cash flows, the company was able to complete the tender offer utilizing less of its credit facility than previously anticipated.
The company affirms its previously-announced annual guidance range for Adjusted EBITDA of $34 million to $36 million, excluding the impact of changes in foreign exchange during the year. ■