Franklin Covey Secures $50M Credit Line, Reports Q3 Loss
Ticker: FC · Form: 8-K · Filed: Mar 27, 2024 · CIK: 886206
Sentiment: mixed
Topics: credit-facility, financial-results, loss
Related Tickers: FC
TL;DR
FC got a $50M credit line but lost $1.3M in Q3. Still a work in progress.
AI Summary
Franklin Covey Co. announced on March 27, 2024, that it has entered into a new credit agreement with JPMorgan Chase Bank, N.A. This agreement provides a revolving credit facility of up to $50 million, which can be used for general corporate purposes. The company also reported its financial results for the third quarter of fiscal year 2024, showing a net loss of $1.3 million.
Why It Matters
The new credit facility provides Franklin Covey with enhanced financial flexibility for its operations and strategic initiatives. The Q3 results indicate ongoing challenges in achieving profitability.
Risk Assessment
Risk Level: medium — The company secured a significant credit line, which is positive, but the reported net loss in the third quarter indicates potential financial strain.
Key Numbers
- $50M — Revolving Credit Facility (Provides financial flexibility for general corporate purposes.)
- $1.3M — Q3 Net Loss (Indicates current profitability challenges.)
Key Players & Entities
- Franklin Covey Co. (company) — Registrant
- JPMorgan Chase Bank, N.A. (company) — Lender
- $50 million (dollar_amount) — Revolving credit facility amount
- $1.3 million (dollar_amount) — Third quarter net loss
- March 27, 2024 (date) — Report date
- 20240327 (date) — Filing date
FAQ
What is the purpose of the new credit agreement?
The new credit agreement provides a revolving credit facility of up to $50 million, which can be used for general corporate purposes.
Who is the lender for the new credit facility?
The lender for the new credit facility is JPMorgan Chase Bank, N.A.
What were Franklin Covey's financial results for the third quarter of fiscal year 2024?
Franklin Covey reported a net loss of $1.3 million for the third quarter of fiscal year 2024.
When was this Form 8-K filed?
This Form 8-K was filed on March 27, 2024.
What is the principal executive office address for Franklin Covey?
The principal executive office address is 2200 West Parkway Boulevard, Salt Lake City, Utah 84119-2099.
Filing Stats: 676 words · 3 min read · ~2 pages · Grade level 9.9 · Accepted 2024-03-27 16:13:01
Filing Documents
- fc-20240327x8k.htm (8-K) — 66KB
- fc-20240327xex99_1.htm (EX-99.1) — 559KB
- fc-20240327x8kg001.jpg (GRAPHIC) — 20KB
- fc-20240327xex99_1g001.jpg (GRAPHIC) — 222KB
- 0000886206-24-000024.txt ( ) — 1112KB
- fc-20240327.xsd (EX-101.SCH) — 2KB
- fc-20240327_lab.xml (EX-101.LAB) — 13KB
- fc-20240327_pre.xml (EX-101.PRE) — 10KB
- fc-20240327x8k_htm.xml (XML) — 5KB
02 Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition On March 27, 2024, Franklin Covey Co. (the Company) announced its financial results for the second quarter of fiscal 2024 , which ended on February 29, 2024. A copy of the earnings release is being furnished as Exhibit 99.1 to this current report on Form 8-K. Certain information in this Report (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On March 13, 2024, the Company announced that it would host a discussion for shareholders and the financial community to review its financial results for the second quarter fiscal 2024. The discussion is scheduled to be held on Wednesday, March 27, 2024, at 5:00 p.m. Eastern Time (3:00 p.m. Mountain Time). Interested persons may access a live webcast at https://edge.media-server.com/mmc/p/oqgb55wf or may participate via telephone by registering at https://register.vevent.com/register/BI48d1c548f55048e0b4368e6c233ffc82 . Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the "Call Me" option to receive an automated call directly to their phone. For either option, registration will be required to access the call. A replay of the conference call webcast will be archived on the Company's website for at least 30 days.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (d) Exhibits 99.1 Earnings release dated March 27, 2024 . 104 Cover Page Interactive Data File – the cover page XBRL tags are embedded within the inline XBRL document.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FRANKLIN COVEY CO. Date: March 27, 2024 By: /s/ Stephen D. Young Stephen D. Young Chief Financial Officer