Franklin Covey continues to cut both its operations losses and net losses.
The Salt Lake-based organizational-products company said Tuesday its net loss for the quarter ended Nov. 29 was $3.2 million before accounting for preferred stock dividends. That compares with a net loss of $8.1 million before dividends for the same quarter a year ago.
The net loss attributable to common shareholders was $5.4 million, or 7 cents per share, which compares with a loss of $10.3 million, or 51 cents per share, for the prior-year period.
The operating results showed a loss of $3.1 million, compared with $7.3 million in the prior year.
Franklin Covey said the period was the fifth straight quarter of "significant" year-over-year improvements in operating results.
Sales totaled $75 million, down from $85 million, although it was partially offset by an improvement in gross margin. Gross profit was down $4.4 million.
Sales from the company's consumer business unit fell $6.4 million to $47.9 million. Retail stores sales were $5.5 million of that decline and totaled $22.7 million for the quarter, down from $28.2 million in the prior-year quarter. The company said the most recent quarter had 34 fewer stores, which had $3.1 million in sales in the fiscal 2003 first quarter. That, plus a 17 percent drop in sales of PDAs and related products, contributed to the retail store sales decline, the company said.
The company said it will close more stores during fiscal 2004 after closing 22 domestic stores and 10 international stores during fiscal 2003 and two more stores during the fiscal 2004 first quarter. The closures have been primarily of unprofitable stores and stores located in markets where the company has multiple retail operations.
"The company may also close additional retail store locations if future analysis demonstrates that operating performance may be improved through further retail store closures," it said.
Franklin Covey also said it is considered a "company in good standing" by the New York Stock Exchange, after having been on the exchange's "Watch List." The move to the better ranking resulted from the company meeting minimum price standards in September and the company's positive performance regarding the business plan that it submitted to the exchange last year.
E-mail: bwallace@desnews.com