FranklinCovey on Tuesday reported a marked increase in net income attributable to common shareholders during the quarter ended Feb. 25, despite lower sales.
The Salt Lake-based producer of organizational products and services reported net income of $8 million, or 39 cents per share, for the quarter. That compares with $4.9 million, or 19 cents per share, for the same quarter a year earlier.
Net income was boosted $900,000 from a legal settlement in a lawsuit involving one of the company's vendors.
Net income before preferred stock dividends totaled $9.2 million, up from $7.1 million in the year-earlier period.
Sales, however, were down to $78.3 million from the year-earlier $82.5 million. The company said that was primarily due to a $4.9 million decrease from closed stores and $400,000 from decreased technology product sales.
The company said it had a 9 percent decrease in selling, general and administrative costs, primarily resulting from store closures and initiatives to reduce overall operating costs, and a $1.2 million decline in depreciation and amortization expense.
The company's stock fell 66 cents Tuesday to close at $9.04 per share on the New York Stock Exchange. During the past year, the price has ranged from $2.28 to $9.79.