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FranklinCovey Franklin Covey Reports Strong Second Quarter Fiscal 2021 Results April 1 , 2021 Operating Income and Adjusted EBITDA Exceed Expectations for the Second Quarter as Adjusted EBITDA Increases 26 % to $ 5.1 Million Compared with $ 4.1 Million in the Pre - Pandemic Second Quarter of Fiscal 2020 Company's Powerful Subscription Business Growth Engine , the All Access Pass and Leader in Me Membership , Show Continued Strong Growth , High Revenue Retention , and Durability with Clients Higher Gross Margin and Decreased Operating Expenses Allow Income from Operations to Show Significant Improvement Year - Over - Year Cash Flows from Operating Activities Increases 26 % to $ 21.9 Million in the First Two Quarters of Fiscal 2021 - Liquidity and Financial Position Remain Strong SALT LAKE CITY -- ( BUSINESS WIRE ) -- Apr . 1 , 2021-- Franklin Covey Co. ( NYSE : FC ) , a global performance improvement company that creates , and on a subscription basis , distributes world - class content , training , processes , and tools that organizations and individuals use to achieve systemic changes in human behavior to transform their results , today announced financial results for its second quarter of fiscal 2021 , which ended on February 28 , 2021 . Introduction The Company was very pleased with its second quarter and fiscal 2021 year - to - date results . The Company's strong , and stronger - than - expected performance reflects the continuation and acceleration of four key trends that have been repeated throughout the pandemic . These trends include : ■ First , the strong growth of All Access Pass sales . All Access pass sales increased 13 % in the second quarter of fiscal 2021 , 14 % year - to - date , and 15 % for the twelve - month pandemic period ended February 28 , 2021 . ■ Second , the growth of All Access Pass related services . Sales of All Access Pass related services in the second quarter were even higher than add - on sales in last year's pre - pandemic second quarter , reflecting the strong bookings of services in prior quarters , and the Company's capabilities to deliver services live - online and digitally . ■ Third , sales in its international direct offices and international licensee partners continued to strengthen . ■ Fourth , despite the challenging environment for education , booking trends in the Education Division strengthened in the quarter , even compared to last year's second quarter . Bob Whitman , Chairman and Chief Executive Officer , commented , " We are really pleased that our second quarter and year - to - date results were strong , and even stronger than expected . This performance was driven by the continued success of our All Access Pass subscription model where we achieved double - digit sales growth in the second quarter , year - to - date , and latest twelve month periods , and by the strength of our subscription business overall . In the coming quarters and years we expect three factors to continue to drive significant growth in subscription and related sales and profitability . First : driven by growth in All Access Pass , we expect substantially all the Company's sales to be subscription and subscription - related within 3-4 years ; second : we expect the already significant lifetime customer value of our All Access Passholders to continue to increase ; and third : we expect the volume of new All Access Pass logos to grow significantly as we continue to aggressively grow our sales force and licensee network . As the almost complete conversion to subscription and related revenue occurs , we expect virtually the entire Company to be able to generate the same kinds of growth in revenue , gross margins , revenue retention , and customer impact we have seen in our subscription business over the past five years . " Whitman added , " Cash flow during the first half of fiscal 2021 was strong , and we ended the quarter with approximately $ 55 million in liquidity , a level higher than the $ 39 million of we had when the pandemic started , and up from $ 42 million at the end of fiscal 2020 in August . The Company had $ 40.3 million of cash , with no borrowings on its $ 15.0 million revolving line of credit , at February 28 , 2021. " Financial Overview The following is a summary of key financial results for the quarter ended February 28 , 2021 : ■ Net Sales : Consolidated sales for the second quarter of fiscal 2021 totaled $ 48.2 million , compared with $ 53.7 million in the pre - pandemic quarter ended February 29 , 2020. While consolidated sales were adversely impacted in certain areas by the ongoing COVID - 19 pandemic , the Company was pleased with the continued strength of its All Access Pass and Leader in Me subscription - based services . During the second quarter of fiscal 2021 , AAP sales increased 13 percent compared with the second quarter of the prior year and annual revenue retention remained strong at greater than 90 percent . The pivot to online delivery continued in the second quarter and the Company's booking pace in the U.S / Canada recovered to be higher than the prior year . However , increased All Access Pass and related sales did not fully offset fewer coaching and consulting days delivered in the Education Division , cancelation of the Education Division Symposium events in fiscal 2021 , decreased materials sales , and decreased licensee revenues . However , the Company is seeing continued strengthening in many of these areas as companies and individuals are adapting , and the positive effect of vaccinations is enabling certain economies to open and recover . Importantly , even with some of these areas still in the process of