Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Oct. 31, 2023 | Feb. 28, 2023 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --08-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Period End Date | Aug. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-11107 | ||
Entity Registrant Name | Franklin Covey Co. | ||
Entity Incorporation, State or Country Code | UT | ||
Entity Tax Identification Number | 87-0401551 | ||
Entity Address, Address Line One | 2200 West Parkway Boulevard | ||
Entity Address, City or Town | Salt Lake City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84119-2331 | ||
City Area Code | 801 | ||
Local Phone Number | 817-1776 | ||
Title of 12(b) Security | Common Stock, $.05 Par Value | ||
Trading Symbol | FC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 13,433,388 | ||
Entity Public Float | $ 564.4 | ||
Documents Incorporated By Reference | Parts of the Registrant's Definitive Proxy Statement for the Annual Meeting of Shareholders, which is scheduled to be held on January 19, 2024, are incorporated by reference in Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000886206 | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Salt Lake City, Utah | ||
Document Financial Statement Error Correction [Flag] | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 38,230 | $ 60,517 |
Accounts receivable, less allowance for doubtful accounts of $3,790 and $4,492 | 81,935 | 72,561 |
Inventories | 4,213 | 3,527 |
Prepaid expenses | 4,401 | 4,711 |
Other current assets | 16,238 | 14,567 |
Total current assets | 145,017 | 155,883 |
Property and equipment, net | 10,039 | 9,798 |
Intangible assets, net | 40,511 | 44,833 |
Goodwill | 31,220 | 31,220 |
Deferred income tax assets | 1,661 | 4,686 |
Other long-term assets | 17,471 | 12,735 |
Total assets | 245,919 | 259,155 |
Current liabilities: | ||
Current portion of notes payable | 5,835 | 5,835 |
Current portion of financing obligation | 3,538 | 3,199 |
Accounts payable | 6,501 | 10,864 |
Deferred subscription revenue | 95,386 | 85,543 |
Other deferred revenue | 12,137 | 14,150 |
Accrued liabilities | 28,252 | 34,205 |
Total current liabilities | 151,649 | 153,796 |
Notes payable, less current portion | 1,535 | 7,268 |
Financing obligation, less current portion | 4,424 | 7,962 |
Other liabilities | 7,617 | 7,116 |
Deferred income tax liabilities | 2,040 | 199 |
Total liabilities | 167,265 | 176,341 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued | 1,353 | 1,353 |
Additional paid-in capital | 232,373 | 220,246 |
Retained earnings | 99,802 | 82,021 |
Accumulated other comprehensive loss | (987) | (542) |
Treasury stock at cost, 13,974 shares and 13,203 shares | (253,887) | (220,264) |
Total shareholders’ equity | 78,654 | 82,814 |
Total liabilities and shareholders' equity | $ 245,919 | $ 259,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 3,790 | $ 4,492 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,056,000 | 27,056,000 |
Treasury stock, shares | 13,974,000 | 13,203,000 |
Consolidated Income Statements
Consolidated Income Statements And Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Consolidated Income Statements And Statements Of Comprehensive Income [Abstract] | |||
Net sales | $ 280,521 | $ 262,841 | $ 224,168 |
Cost of sales | 67,031 | 60,929 | 51,266 |
Gross profit | 213,490 | 201,912 | 172,902 |
Selling, general, and administrative | 178,516 | 168,069 | 153,605 |
Depreciation | 4,271 | 4,903 | 6,190 |
Amortization | 4,342 | 5,266 | 5,006 |
Income from operations | 26,361 | 23,674 | 8,101 |
Interest income | 1,091 | 65 | 73 |
Interest expense | (1,583) | (1,675) | (2,099) |
Income before income taxes | 25,869 | 22,064 | 6,075 |
Benefit (provision) for income taxes | (8,088) | (3,634) | 7,548 |
Net income | $ 17,781 | $ 18,430 | $ 13,623 |
Net income per share: | |||
Basic | $ 1.30 | $ 1.30 | $ 0.97 |
Diluted | $ 1.24 | $ 1.27 | $ 0.96 |
Weighted average number of common shares: | |||
Basic | 13,640 | 14,147 | 14,090 |
Diluted | 14,299 | 14,555 | 14,143 |
COMPREHENSIVE INCOME: | |||
Net income | $ 17,781 | $ 18,430 | $ 13,623 |
Foreign currency translation adjustments, net of income tax benefit (provision) of $(80), $176, and $11 | (445) | (1,251) | 68 |
Comprehensive income | $ 17,336 | $ 17,179 | $ 13,691 |
Consolidated Income Statement_2
Consolidated Income Statements And Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Consolidated Income Statements And Statements Of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, net of income tax benefit (provision) | $ (80) | $ 176 | $ 11 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 17,781 | $ 18,430 | $ 13,623 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,613 | 10,169 | 11,196 |
Amortization of capitalized curriculum development costs | 3,084 | 3,354 | 3,445 |
Deferred income taxes | 4,748 | 121 | (9,790) |
Stock-based compensation expense | 12,520 | 8,286 | 8,617 |
Change in the fair value of contingent consideration liabilities | 7 | 68 | 193 |
Amortization of right-of-use operating lease assets | 834 | 913 | 1,003 |
Changes in assets and liabilities, net of effect of acquired businesses: | |||
Increase in accounts receivable, net | (9,452) | (2,406) | (14,266) |
Decrease (increase) in inventories | (692) | (1,048) | 463 |
Increase in prepaid expenses and other assets | (88) | (2,692) | (880) |
Increase (decrease) in accounts payable and accrued liabilities | (9,541) | 4,358 | 14,372 |
Increase in deferred revenue | 8,806 | 14,245 | 19,788 |
Increase (decrease) in income taxes payable/receivable | (195) | 138 | 273 |
Decrease in other liabilities | (687) | (1,682) | (1,860) |
Net cash provided by operating activities | 35,738 | 52,254 | 46,177 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | (4,515) | (3,177) | (1,602) |
Capitalized curriculum development costs | (9,035) | (2,154) | (2,504) |
Acquisition of businesses, net of cash acquired | (10,209) | ||
Net cash used for investing activities | (13,550) | (5,331) | (14,315) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from term notes payable financing | 7,500 | ||
Principal payments on notes payable | (13,335) | (5,835) | (5,000) |
Principal payments on financing obligation | (3,199) | (2,887) | (2,600) |
Purchases of common stock for treasury | (35,555) | (23,850) | (2,971) |
Payment of contingent consideration liabilities | (736) | (1,434) | (1,981) |
Cash paid to obtain new credit agreement | (393) | ||
Proceeds from sales of common stock held in treasury | 1,539 | 1,336 | 1,073 |
Net cash used for financing activities | (44,179) | (32,670) | (11,479) |
Effect of foreign currency exchange rates on cash and cash equivalents | (296) | (1,153) | (103) |
Net increase (decrease) in cash and cash equivalents | (22,287) | 13,100 | 20,280 |
Cash and cash equivalents at beginning of the year | 60,517 | 47,417 | 27,137 |
Cash and cash equivalents at end of the year | 38,230 | 60,517 | 47,417 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 3,308 | 3,210 | 1,766 |
Cash paid for interest | 1,501 | 1,655 | 2,069 |
Non-cash investing and financing activities: | |||
Purchases of property and equipment financed by accounts payable | $ 548 | $ 529 | $ 399 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Beginning balance, shares at Aug. 31, 2020 | 27,056,000 | 13,175,000 | ||||
Beginning balance at Aug. 31, 2020 | $ 1,353 | $ 211,920 | $ 49,968 | $ 641 | $ (204,429) | |
Issuance of common stock from treasury, shares | 405,000 | |||||
Issuance of common stock from treasury | (5,213) | $ 6,286 | ||||
Purchase of common shares for treasury, shares | (147,000) | |||||
Purchase of common shares for treasury | $ (2,971) | |||||
Unvested share award, shares | 28,000 | |||||
Unvested share award | (436) | $ 436 | ||||
Stock-based compensation | 8,617 | |||||
Cumulative translation adjustments | 68 | $ 68 | ||||
Net income | 13,623 | 13,623 | ||||
Ending balance, shares at Aug. 31, 2021 | 27,056,000 | 12,889,000 | ||||
Ending balance at Aug. 31, 2021 | $ 1,353 | 214,888 | 63,591 | 709 | $ (200,678) | |
Issuance of common stock from treasury, shares | 258,000 | |||||
Issuance of common stock from treasury | (2,719) | $ 4,055 | ||||
Purchase of common shares for treasury, shares | (585,000) | |||||
Purchase of common shares for treasury | $ (23,850) | |||||
Unvested share award, shares | 13,000 | |||||
Unvested share award | (209) | $ 209 | ||||
Stock-based compensation | 8,286 | |||||
Cumulative translation adjustments | (1,251) | (1,251) | ||||
Net income | 18,430 | 18,430 | ||||
Ending balance, shares at Aug. 31, 2022 | 27,056,000 | (13,203,000) | ||||
Ending balance at Aug. 31, 2022 | $ 1,353 | 220,246 | 82,021 | (542) | $ (220,264) | $ 82,814 |
Ending balance, shares, Treasury at Aug. 31, 2022 | (13,203,000) | |||||
Issuance of common stock from treasury, shares | 98,000 | 114,214 | ||||
Issuance of common stock from treasury | (127) | $ 1,666 | ||||
Purchase of common shares for treasury, shares | (885,000) | |||||
Purchase of common shares for treasury | $ (35,555) | |||||
Unvested share award, shares | 16,000 | |||||
Unvested share award | (266) | $ 266 | ||||
Stock-based compensation | 12,520 | |||||
Cumulative translation adjustments | (445) | $ (445) | ||||
Net income | 17,781 | 17,781 | ||||
Ending balance, shares at Aug. 31, 2023 | 27,056,000 | (13,974,000) | ||||
Ending balance at Aug. 31, 2023 | $ 1,353 | $ 232,373 | $ 99,802 | $ (987) | $ (253,887) | $ 78,654 |
Ending balance, shares, Treasury at Aug. 31, 2023 | (13,974,000) |
Nature Of Operations And Summar
Nature Of Operations And Summary Of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2023 | |
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Operations And Summary Of Significant Accounting Policies | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Franklin Covey Co. (hereafter referred to as we, us, our, or the Company) is a global company specializing in organizational performance improvement. We help individuals and organizations achieve results that require a change in human behavior and our mission is to “enable greatness in people and organizations everywhere.” We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training and products based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader In Me , The Four Disciplines of Execution , and Multipliers , and proprietary content in the areas of Leadership, Execution, Productivity, Sales Performance, and Educational improvement. Our offerings are described in further detail at www.franklincovey.com and elsewhere in this report. Through our organizational research and curriculum development efforts, we seek to consistently create, develop, and introduce new services and products that help individuals and organizations achieve their own great purposes. Fiscal Year Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May. Unless otherwise noted, references to fiscal years apply to the 12 months ended August 31 of the specified year. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, which consist of Franklin Development Corp., and our offices that serve clients in Japan, China, the United Kingdom, Ireland, Australia, New Zealand, Germany, Switzerland, and Austria. Intercompany balances and transactions are eliminated in consolidation. Pervasiveness of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, shareholders’ equity, revenues, and expenses. Actual results could differ from those estimates. Reclassifications Due to stock-based compensation adjustments and modifications resulting from uncertainties during the COVID-19 pandemic, we separately disclosed share-based compensation expense on our consolidated income statements in prior periods. During fiscal 2023 we returned to our normal presentation and reclassified share-based compensation expense as a component of selling, general, and administrative expense in the accompanying consolidated income statements. Refer to Note 13 for more information on our stock-based compensation instruments. Cash and Cash Equivalents Some of our cash is deposited with financial institutions located throughout the United States of America and at banks in foreign countries where we operate subsidiary offices, and at times may exceed insured limits. We consider all highly liquid debt instruments with an original maturity date of three months or less to be cash equivalents. Of our $ 38.2 million in cash at August 31, 2023, $ 12.0 million was held outside the U.S. by our foreign subsidiaries. We routinely repatriate cash from our foreign subsidiaries and consider cash generated from foreign activities a key component of our overall liquidity position. Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method. Elements of cost in inventories generally include raw materials and direct labor. Cash flows from the sale of inventory are included in cash flows provided by operating activities in our consolidated statements of cash flows. Our inventories are comprised primarily of training materials, books, training-related accessories, and consisted of the following (in thousands): AUGUST 31, 2023 2022 Finished goods $ 4,204 $ 3,519 Raw materials 9 8 $ 4,213 $ 3,527 Provision is made to reduce excess and obsolete inventories to their estimated net realizable value. In assessing the valuation of our inventories, we make judgments regarding future demand requirements and compare these estimates with current and committed inventory levels. Inventory requirements may change based on projected customer demand, training curriculum life-cycle changes, and other factors that could affect the valuation of our inventories. Other Current Assets Significant components of our other current assets were as follows (in thousands): AUGUST 31, 2023 2022 Deferred commissions $ 14,426 $ 12,598 Other current assets 1,812 1,969 $ 16,238 $ 14,567 We defer commission expense on subscription-based sales and recognize the commission expense with the recognition of the corresponding revenue. Property and Equipment Property and equipment are recorded at cost. Depreciation expense, which includes depreciation on our corporate campus that is accounted for as a financing obligation (Note 8), is calculated using the straight-line method over the lesser of the expected useful life of the asset or the contracted lease period. We generally use the following depreciable lives for our major classifications of property and equipment: Description Useful Lives Buildings 20 years Machinery and equipment 5 – 7 years Computer hardware and software 3 – 5 years Furniture, fixtures, and leasehold improvements 5 – 7 years Our property and equipment were comprised of the following (in thousands): AUGUST 31, 2023 2022 Land and improvements $ 1,312 $ 1,312 Buildings 30,038 30,038 Machinery and equipment 495 543 Computer hardware and software 28,948 26,030 Furniture, fixtures, and leasehold improvements 10,147 9,287 70,940 67,210 Less accumulated depreciation ( 60,901 ) ( 57,412 ) $ 10,039 $ 9,798 We expense costs for repairs and maintenance as incurred. Gains and losses resulting from the sale of property and equipment are recorded in income from operations. Depreciation of capitalized subscription portal costs is included in depreciation expense in the accompanying consolidated income statements and statements of comprehensive income. Impairment of Long-Lived Assets Long-lived tangible assets and finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the anticipated future cash flows of the assets, we recognize an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires us to use estimates of future cash flows. If forecasts and assumptions used to support the realizability of our long-lived tangible and finite-lived intangible assets change in the future, significant impairment charges could result that would adversely affect our results of operations and financial condition. There were no long-lived asset impairment charges during any of the periods presented in this report. Indefinite-Lived Intangible Assets and Goodwill Impairment Testing Intangible assets that are deemed to have an indefinite life and acquired goodwill are not amortized, but rather are tested for impairment on an annual basis or more often if events or circumstances indicate that a potential impairment exists. The Covey trade name intangible asset has been deemed to have an indefinite life. This intangible asset is tested for impairment using qualitative factors or the present value of estimated royalties on trade name related revenues, which consist primarily of training seminars and work sessions, international licensee sales, and related products. Based on the fiscal 2023 evaluation of the Covey trade name, we believe the fair value of the Covey trade name substantially exceeds its carrying value. No impairment charges were recorded against the Covey trade name during the periods presented in this report. Goodwill is recorded when the purchase price for a business acquisition exceeds the estimated fair value of the net tangible and identified intangible assets acquired. We test goodwill for impairment each year on August 31 or upon the occurrence of events or changes in circumstances which indicate that goodwill may be impaired. Goodwill is assigned to our reporting units, which are our operating segments, where discrete financial information is available that is regularly reviewed by management to evaluate segment performance. During the annual impairment testing process, we have the option to first perform a qualitative assessment (commonly referred to as Step Zero) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment where we estimate the fair value of each reporting unit using both an income and market approach. At August 31, 2023, we completed a Step Zero assessment and concluded there were no indicators of impairment. Refer to Note 5, Intangible Assets and Goodwill for further information on our goodwill. When we perform a quantitative analysis to assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the difference. The estimated fair value of each reporting unit is calculated using a combination of the income approach (discounted cash flows) and the market approach (using market multiples derived from a set of companies with comparable market characteristics). The value estimated using a discounted cash flow model is weighted against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our internal plan and assume a terminal growth rate thereafter. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable and constitute Level 3 fair value measures. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable, but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. Capitalized Curriculum Development Costs During the normal course of business, we develop training courses and related materials that we sell to our clients. Capitalized curriculum development costs include certain expenditures to develop course materials such as video segments, course manuals, and other related materials. Our capitalized curriculum development spending in fiscal 2023, which totaled $ 9.0 million, was primarily to create new and refreshed offerings and content for the AAP and new offerings for our Education practice. Our capitalized curriculum spending increased in fiscal 2023 primarily due to less-than-expected spending in fiscal 2022 and fiscal 2021 as several development projects were delayed or suspended in the wake of the pandemic. Curriculum costs are capitalized when there is a major revision to an existing course that requires a significant re-write of the course materials, or a significant investment in new curriculum. Costs incurred to maintain existing offerings are expensed when incurred. In addition, development costs incurred in the research and development of new offerings and software products to be sold, leased, or otherwise marketed are expensed as incurred until economic and technological feasibility have been established. Capitalized development costs are amortized over three - to five-year useful lives, which are based on numerous factors, including expected cycles of major changes to our content. Capitalized curriculum development costs are reported as a component of other long-term assets in our consolidated balance sheets and totaled $ 10.9 million and $ 5.0 million at August 31, 2023 and 2022. Amortization of capitalized curriculum development costs is reported as a component of cost of sales in the accompanying consolidated income statements and statements of comprehensive income. Accrued Liabilities Significant components of our accrued liabilities were as follows (in thousands): AUGUST 31, 2023 2022 Accrued compensation $ 17,974 $ 20,608 Other accrued liabilities 10,278 13,597 $ 28,252 $ 34,205 Contingent Consideration Payments from Business Acquisitions Business acquisitions may include contingent consideration payments based on various future financial measures related to the acquired entity. Contingent consideration is required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial projections of the acquired company and estimated probabilities of achievement. Based on updated estimates and projections, the contingent consideration liabilities are adjusted at each reporting date to their estimated fair value. Changes in fair value subsequent to the acquisition date are reported in selling, general, and administrative expense in our consolidated income statements and statements of comprehensive income and may have a material impact on our operating results. Variations in the fair value of contingent consideration liabilities may result from changes in discount periods or rates, changes in the timing and amount of earnings estimates, and changes in probability assumptions with respect to the likelihood of achieving various payment criteria. Foreign Currency Translation and Transactions The functional currencies of our foreign operations are the reported local currencies. Translation adjustments result from translating our foreign subsidiaries’ financial statements into United States dollars. The balance sheet accounts of our foreign subsidiaries are translated into United States dollars using the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated using average exchange rates for each month during the fiscal year. The resulting translation differences are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction losses totaled $ 0.1 million, $ 0.5 million, and $ 0.1 million for the fiscal years ended August 31, 2023, 2022, and 2021, respectively, and are included as a component of selling, general, and administrative expenses in our consolidated income statements and statements of comprehensive income. Revenue Recognition We account for revenue in accordance with Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . For further information on revenue recognition, refer to Note 2, Revenue Recognition . Revenue is recognized as the net amount to be received after deducting estimated amounts for discounts and product returns. Stock-Based Compensation We record the compensation expense for all stock-based payments, including grants of stock options and the compensatory elements of our employee stock purchase plan, in our consolidated income statements and statements of comprehensive income based upon their fair values over the requisite service period. For more information on our stock-based compensation plans, refer to Note 13. Shipping and Handling Fees and Costs All shipping and handling fees billed to customers are recorded as a component of net sales. All costs incurred related to the shipping and handling of products are recorded in cost of sales. Advertising Costs Costs for advertising are expensed as incurred. Advertising costs included in selling, general, and administrative expenses totaled $ 4.5 million, $ 4.8 million, and $ 4.0 million for the fiscal years ended August 31, 2023, 2022, and 2021. Income Taxes Our income tax provision has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The income tax provision represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred income taxes result from differences between the financial and tax bases of our assets and liabilities and are adjusted for tax rates and tax laws when changes are enacted. A valuation allowance is provided against deferred income tax assets when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. Interest and penalties related to uncertain tax positions are recognized as components of income tax benefit or expense in our consolidated income statements and statements of comprehensive income. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We provide for income taxes, net of applicable foreign tax credits, on temporary differences in our investment in foreign subsidiaries, which consist primarily of unrepatriated earnings. Comprehensive Income Comprehensive income includes changes to equity accounts that were not the result of transactions with shareholders. Comprehensive income is comprised of net income and other comprehensive income and loss items. Our other comprehensive income and losses generally consist of changes in the cumulative foreign currency translation adjustment, net of tax. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Aug. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. REVENUE RECOGNTION We earn revenue from contracts with customers primarily through the delivery of our All Access Pass and the Leader in Me membership subscription offerings, through the delivery of training days and training course materials (whether digitally or in person), and through the licensing of rights to sell our content into geographic locations where the Company does not maintain a direct office. We also earn revenues from leasing arrangements that are not accounted for under Topic 606. Returns and refunds are generally immaterial, and we do not have any significant warranty obligations. We recognize revenue upon the transfer of control of promised products and services to customers in an amount equal to the consideration we expect to receive in exchange for those products or services. Although rare, if the consideration promised in a contract includes variable amounts, we evaluate the estimate of variable consideration to determine whether the estimate needs to be constrained. We include the variable consideration in the transaction price only to the extent that it is probable a significant reversal of the amount of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through application of the following steps: Identification of the contract with a customer Identification of the performance obligations in the contract Determination of the transaction price Allocation of the transaction price to the performance obligations in the contract Recognition of revenue when the Company satisfies the performance obligations Taxes assessed by a government authority that are collected from a customer are excluded from net revenue. Subscription Revenues Subscription revenues primarily relate to the Company’s AAP and the Leader in Me membership offerings. We have determined that it is most appropriate to account for the AAP as a single performance obligation and recognize the associated transaction price ratably over the term of the underlying contract beginning on the commencement date of each contract, which is the date the Company’s platforms and resources are made available to the customer. This determination was reached after considering that our web-based functionality and content, in combination with our intellectual property, each represent inputs that transform into a combined output that represents the intended outcome of the AAP, which is to provide a continuously accessible, customized, and dynamic learning and development solution only accessible through the AAP platform. We typically invoice our customers annually upon execution of the contract or subsequent renewals. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control has occurred. Our Leader in Me membership offering is bifurcated into a portal membership obligation and a coaching delivery obligation. We have determined that it is appropriate to recognize revenue related to the portal membership over the term of the underlying contract and to recognize revenue from coaching as those services are performed. The combined contract amount is recorded in deferred subscription revenue until the performance obligations are satisfied. Any additional coaching or training days which are contracted independent of a Leader in Me membership are recorded as revenue in accordance with our general policy for services and products as described below. Services and Products We deliver Company-led training days from our offerings, such as The 7 Habits of Highly Effective People , at a customer’s location or live-online based upon a daily consultant rate and a set price for training materials. These revenues are recognized as the training days occur and the services are performed. Customers also have the option to purchase training materials and present our offerings through internal facilitators and not through the use of a Franklin Covey consultant. Revenue is recognized from these product sales when the materials are shipped. Shipping revenues associated with product sales are recorded in revenue with the corresponding shipping cost being recorded as a component of cost of sales. Royalties Our international strategy includes the use of licensees in countries where we do not have a wholly-owned direct office. Licensee companies are unrelated entities that have been granted a license to translate our content and offerings, adapt the content to the local culture, and sell our content in a specific country or region. We recognize revenue on the upfront fees from the sale of a territory to a licensee over the term of the initial contract. Licensees are then required to pay us royalties based upon a percentage of their sales to clients. We recognize royalty income each reporting period based upon the sales information reported to us from our licensees. When sales information is not received from a particular licensee at the end of a reporting period, the Company estimates the amount of royalties to be received for the period that is being reported based upon prior forecasts and historical performance. These estimated royalties are recorded as revenue and are adjusted in the subsequent period. Refer to the disaggregated revenue information presented in Note 17, Segment Information , for our royalty revenues in the fiscal years presented in this report. Contracts with Multiple Performance Obligations We periodically enter into contracts that include multiple performance obligations. A performance obligation is a promise in a contract to transfer products or services that are distinct, or that are distinct within the context of the contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Determining whether products and services meet the distinct criteria that should be accounted for separately or combined as one unit of accounting requires significant judgment. When determining whether goods and services meet the distinct criteria, we consider various factors for each agreement including the availability of the services and the nature of the offerings and services. We allocate the transaction price to each performance obligation on a relative standalone selling price (SSP) basis. Judgment is required to determine the SSP for each distinct performance obligation. The SSP is the price which the Company would sell a promised product or service separately to a customer. In determining the SSP, we consider the size and volume of transactions, price lists, historical sales, and contract prices. We may modify our pricing from time-to-time in the future, which could result in changes to the SSP. Contract Balances As described above, our subscription revenue is generally recognized ratably over the term of the underlying contract beginning on the commencement date of each agreement. The timing of when these contracts are invoiced, cash is collected, and revenue is recognized impacts our accounts receivable and deferred subscription revenue accounts. We generally bill our clients in advance for subscription offerings or within the month that the training and products are delivered. As such, consideration due to the Company for work performed is included in accounts receivable and we do not have a significant amount of contract assets. Our receivables are generally collected within 30 to 150 days but typically no longer than 12 months. Deferred subscription revenue primarily consists of billings or payments received in advance of revenue being recognized from our subscription offerings. Furthermore, our clients, to expend funds in a particular budget cycle, may prepay for services or products which are a component of our other deferred revenue. Our deferred subscription revenue and our other deferred revenue totaled $ 111.2 million at August 31, 2023 and $ 102.4 million at August 31, 2022, of which $ 3.7 million and $ 2.7 million were classified as components of other long-term liabilities at August 31, 2023 and August 31, 2022, respectively. The amount of deferred revenue that was generated from subscription offerings totaled $ 99.0 million at August 31, 2023 and $ 88.1 million at August 31, 2022. During the fiscal years ended August 31, 2023 and 2022, we recognized $ 139.0 million and $ 123.1 million of previously deferred subscription revenue. Remaining Performance Obligations When possible, we enter into multi-year non-cancellable contracts which are invoiced either upon execution of the contract or at the beginning of each annual contract period. Our remaining performance obligation represents contracted revenue that has not yet been recognized, including unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price is influenced by factors such as seasonality, the average length of the contract term, and the ability of the Company to continue to enter multi-year non-cancellable contracts. At August 31, 2023 we had $ 186.4 million of remaining performance obligations, including $ 99.0 million of deferred revenue related to our subscription offerings. The remaining performance obligation does not include other deferred revenue as amounts included in other deferred revenue include items such as deposits that are generally refundable at the client’s request prior to the satisfaction of the obligation. Costs Capitalized to Obtain Contracts We capitalize the incremental costs of obtaining non-cancellable subscription revenue, primarily from the All Access Pass and the Leader in Me membership offerings. These incremental costs consist of sales commissions paid to our sales force and include the associated payroll taxes and fringe benefits. As the same commission rates are paid annually when the customer renews their contract, the capitalized commission costs are generally amortized ratably on an annual basis consistent with the recognition of the corresponding subscription revenue. At August 31, 2023, we have $ 15.3 million of capitalized direct commissions, of which $ 14.4 million is included in other current assets and $ 0.9 million is in other long-term assets based on the expected recognition of the commission expense. During the fiscal year ended August 31, 2023, we capitalized $ 23.5 million of commission costs to obtain revenue contracts and amortized $ 22.0 million of deferred commissions to selling, general, and administrative expense. At August 31, 2022, we had $ 13.8 million of capitalized direct commissions, of which $ 12.6 million was included in other current assets and $ 1.2 million in other long-term assets. Refer to Note 17, Segment Information , to these consolidated financial statements for our disaggregated revenue information. |
Acquisition of Strive Talent, I
Acquisition of Strive Talent, Inc. | 12 Months Ended |
Aug. 31, 2023 | |
Acquisition of Strive Talent, Inc. [Abstract] | |
Acquisition of Strive Talent, Inc. | 3. ACQUISITION OF STRIVE TALENT, INC. On April 26, 2021 (the Closing Date), through our wholly owned subsidiary Franklin Covey Client Sales, Inc., we purchased all of the issued and outstanding stock of Strive Talent, Inc. (Strive), a San Francisco-based technology company which developed and marketed an innovative learning deployment platform. The Strive platform has greatly enhanced our All Access Pass subscription platform and has enabled improved deployment of our content, services, technology, and metrics to deliver behavioral impact at scale. The aggregate consideration for the purchase of Strive may total up to $ 20.0 million and is comprised of the following: Approximately $ 10.6 million was paid in cash on the Closing Date of the transaction, including $ 1.0 million placed in escrow for 18 months from the Closing Date to serve as the first source of funds to satisfy certain indemnification obligations of Strive. Approximately $ 4.2 million payable in equal cash payments on the first five anniversaries of the Closing Date (Note 7). The note payable is recorded at present value and accrues interest at 3.6 percent until the amount is paid in full. A maximum of approximately $ 4.2 million may be earned by the former principal owner of Strive over a five-year period ending in May 2026. The total value of this consideration is contingent upon sales and growth of the AAP subscription and subscription services revenues during the five-year period measurement ending in May 2026. The contingent earn out payments are conditional upon the continued employment of former principal owner of Strive over the first four years of the measurement period. These payments may be made in either cash or shares of our common stock at our sole discretion. Approximately $ 1.0 million was paid 18 months following the Closing Date to stockholders and option holders of Strive who were still employed by the Company or its affiliates as of such 18-month date, subject to certain exceptions. The bonus payments were forfeited by the individuals if they voluntarily terminated their employment with the Company prior to the 18-month anniversary of the purchase. These payments were made shares of our common stock and the decision to pay these bonuses in shares of common stock was made at our discretion. As described above, included in the purchase agreement for the acquisition of Strive are additional contingent payments of up to $ 5.2 million subject to continued employment of the primary seller and certain employees. These payments are expensed as earned and may be settled by us, at our sole discretion, in shares of our common stock or cash. Based on the relevant accounting literature for business acquisitions, the initial purchase price of Strive is comprised of the following: Cash paid at closing $ 10,554 Notes payable 3,766 Total purchase price $ 14,320 We have included the operating results of Strive in our financial statements since the Closing Date. However, the acquisition of Strive had an immaterial impact on our results of operations in fiscal 2021 and pro forma financial information for this acquisition was not deemed necessary. For the twelve months ended December 31, 2020, Strive had revenues of $ 1.3 million (unaudited) and an operating loss of $( 1.1 ) million (unaudited). Strive did not meet the definition of a significant subsidiary as specified by Regulation S-X of the Securities and Exchange Commission. The major classes of assets and liabilities to which we have allocated the purchase price were as follows (in thousands): Cash acquired $ 345 Accounts receivable 154 Prepaid and other current assets 56 Property and equipment 13 Intangible assets 7,976 Goodwill 7,000 Assets acquired 15,544 Deferred revenue ( 52 ) Accrued liabilities ( 135 ) Deferred income tax liability ( 1,037 ) Notes payable, current portion ( 835 ) Notes payable, less current portion ( 2,931 ) Liabilities assumed ( 4,990 ) $ 10,554 The allocation of the purchase price to the intangible assets acquired was as follows (in thousands): Weighted Average Description Amount Life Non-compete agreements $ 171 2 years Content 389 5 years Customer relationships 764 3 years Tradename 889 5 years Internally developed software 5,763 8 years $ 7,976 7 years The goodwill generated by the Strive acquisition is primarily attributable to the technology, content, and software development capabilities that complement our existing AAP subscription and was allocated to our operating segments based on relative fair value. None of the goodwill or intangible assets generated by the acquisition of Strive are expected to be deductible for income tax purposes. Acquisition costs totaled $ 0.3 million and were recorded in selling, general, and administrative expense in the accompanying consolidated income statement and statement of comprehensive income for the fiscal year ended August 31, 2021. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Aug. 31, 2023 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | 4. ACCOUNTS RECEIVABLE Our trade accounts receivable are recorded at net realizable value, which includes an allowance for estimated credit losses as described in Note 1, Nature of Operations and Summary of Significant Accounting Policies . Under the guidance found in ASC Topic 326, the “expected credit loss” model requires consideration of a broader range of information to estimate expected credit losses over the lives of our trade accounts receivable. We maintain an allowance for credit losses related to our trade accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon consideration of various factors, including historical bad debts, current customer receivable balances, age of customer receivable balances, macroeconomic factors (such as risk and uncertainty generated by the pandemic), and the customers’ financial condition in relation to a representative pool of assets consisting of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis, including those associated with customers that have a higher probability of default. We do not have a significant amount of notes or other receivables. The following schedule provides a reconciliation of the activity in our allowance for estimated credit losses during the periods indicated (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 4,492 $ 4,643 $ 4,159 Charged to costs and expenses ( 66 ) 306 1,553 Deductions ( 636 ) ( 457 ) ( 1,069 ) Ending balance $ 3,790 $ 4,492 $ 4,643 Deductions on the foregoing table represent the write-off of amounts deemed uncollectible during the fiscal year presented. During fiscal 2023, we received payment from customers whose accounts we had previously reserved against because of potential pandemic related uncertainties. Accordingly, we reversed a portion of the allowance during fiscal 2023 to reflect these payments. Recoveries of amounts previously written off were insignificant for the periods presented. No customer accounted for more than 10 percent of our sales or accounts receivable in any year presented. |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 12 Months Ended |
Aug. 31, 2023 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible Assets And Goodwill | 5. INTANGIBLE ASSETS AND GOODWILL Intangible Assets Our intangible assets were comprised of the following (in thousands): Gross Carrying Accumulated Net Carrying AUGUST 31, 2023 Amount Amortization Amount Finite-lived intangible assets: Acquired content $ 49,802 $ ( 43,910 ) $ 5,892 License rights 31,758 ( 25,461 ) 6,297 Customer lists 15,982 ( 15,272 ) 710 Acquired technology 7,282 ( 3,200 ) 4,082 Trade names 1,883 ( 1,408 ) 475 Non-compete agreements and other 930 ( 875 ) 55 107,637 ( 90,126 ) 17,511 Indefinite-lived intangible asset: Covey trade name 23,000 - 23,000 $ 130,637 $ ( 90,126 ) $ 40,511 AUGUST 31, 2022 Finite-lived intangible assets: Acquired content $ 49,964 $ ( 42,501 ) $ 7,463 License rights 32,077 ( 24,401 ) 7,676 Customer lists 16,140 ( 15,028 ) 1,112 Acquired technology 7,282 ( 2,479 ) 4,803 Trade names 1,883 ( 1,231 ) 652 Non-compete agreements and other 930 ( 803 ) 127 108,276 ( 86,443 ) 21,833 Indefinite-lived intangible asset: Covey trade name 23,000 - 23,000 $ 131,276 $ ( 86,443 ) $ 44,833 Our intangible assets are amortized over the estimated useful life of the asset. The range of remaining estimated useful lives and weighted-average amortization period over which we are amortizing the major categories of finite-lived intangible assets at August 31, 2023 were as follows: Category of Intangible Asset Range of Remaining Estimated Useful Lives Weighted Average Original Amortization Period Acquired content 3 to 4 years 24 years License rights 4 to 6 years 26 years Customer lists 1 to 4 years 11 years Acquired technology 6 years 6 years Trade names 3 years 5 years Non-compete agreements and other 4 to 6 years 3 years Our aggregate amortization expense from finite-lived intangible assets totaled $ 4.3 million, $ 5.3 million, and $ 5.0 million for the fiscal years ended August 31, 2023, 2022, and 2021. Amortization expense from our intangible assets over the next five years is expected to be as follows (in thousands): YEAR ENDING AUGUST 31, 2024 $ 4,200 2025 4,030 2026 3,945 2027 3,110 2028 1,169 Goodwill The acquisition of Strive in fiscal 2021 generated $ 7.0 million of goodwill which was allocated to the Direct Office and International Licensee segments based on their relative fair value. We performed our annual testing of goodwill in accordance with our accounting policies described in Note 1, Nature of Operations and Summary of Significant Accounting Policies . We completed a Step Zero assessment as of August 31, 2023 and concluded there were no indicators of impairment. We do not have any accumulated impairment charges against the carrying value of our goodwill. At each of August 31, 2023 and 2022, goodwill was allocated to our segments as shown below (in thousands): Direct offices $ 22,962 International licensees 5,928 Education practice 2,330 $ 31,220 |
Secured Credit Agreement
Secured Credit Agreement | 12 Months Ended |
Aug. 31, 2023 | |
Secured Credit Agreement [Abstract] | |
Secured Credit Agreement | 6. SECURED CREDIT AGREEMENT On March 27, 2023, we entered into a new credit agreement (the 2023 Credit Agreement) with KeyBank National Association (KeyBank) leading a group of financial institutions (collectively, the Lenders), which replaced our previous credit agreement with JPMorgan Chase Bank, N.A. (the 2019 Credit Agreement). KeyBank will act as the sole administrative and collateral agent under the 2023 Credit Agreement. The 2023 Credit Agreement provides up to $ 70.0 million in total credit, of which $ 7.5 million was used to replace the outstanding term loan balance from the 2019 Credit Agreement. The remaining $ 62.5 million will be available as a revolving line of credit or for future term loans. Principal payments on our existing term loan consist of quarterly principal payments of $ 1.25 million that are due and payable on the last business day of each March, June, September, and December until the term loan obligation is repaid. These payment conditions on the term loan are essentially the same as the 2019 Credit Agreement. The 2023 Credit Agreement matures on March 27, 2028 , and interest on term loan borrowings under the 2023 Credit Agreement is due and payable on the principal payment dates. Interest on all other borrowings is due the last day of each month. The interest rate for all borrowings on the 2023 Credit Agreement is based on the Secured Overnight Financing Rate (SOFR) and is a tiered structure that varies according to the Leverage Ratio calculated at the end of each fiscal quarter. On August 31, 2023, the interest rate on our term loan and revolving line of credit was 6.9 percent and we are charged an unused credit commitment fee of 0.2 percent per annum, which is paid quarterly. The interest rate on our term loan at August 31, 2022 was 4.2 percent. The Leverage Ratio as defined by the 2023 Credit Agreement is Funded Debt to adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) and determines the applicable interest rate as shown below: Leverage Ratio Interest Rate Less than 1.00 SOFR plus 1.50 % Between 1.00 and 2.00 SOFR plus 1.75 % Between 2.01 and 2.50 SOFR plus 2.25 % Greater than 2.51 SOFR plus 2.75 % The 2023 Credit Agreement also contains representations, warranties, and certain covenants. While any amounts are outstanding under the 2023 Credit Agreement, we are subject to a number of affirmative and negative covenants, including covenants regarding dispositions of property, investments, forming or acquiring subsidiaries, and business combinations or acquisitions, among other customary covenants, subject to certain exceptions. As defined in the 2023 Credit Agreement, we are (i) required to maintain a Leverage Ratio of less than 3.00 to 1.00 and a Fixed Charge Coverage Ratio greater than 1.15 to 1.00; and (ii) we are restricted from making certain distributions to stockholders, including repurchases of common stock. However, we are permitted to make distributions, including through purchases of outstanding common stock, provided that we are in compliance with the Leverage Ratio and Fixed Charge Coverage Ratio financial covenants before and after such distribution. In the event of noncompliance with these financial covenants and other defined events of default, the Lender is entitled to certain remedies, including acceleration of the repayment of amounts outstanding under the 2023 Credit Agreement. At August 31, 2023, we believe that we were in compliance with the covenants and conditions of the 2023 Credit Agreement. The 2023 Credit Agreement is secured by substantially all of our assets and certain of our subsidiaries, and provides for standard events of default, such as for non-payment and failure to perform or observe covenants, and contains standard indemnifications benefitting the Lenders. In connection with the 2023 Credit Agreement, the Company and certain of its subsidiaries, as applicable, also entered into a Security Agreement, Intellectual Property Security Agreement, and Guaranty of Payment. We did no t have any borrowings on our revolving line of credit facilities at either of August 31, 2023 or 2022. |
Notes Payable
Notes Payable | 12 Months Ended |
Aug. 31, 2023 | |
Notes Payable [Abstract] | |
Notes Payable | 7. NOTES PAYABLE At August 31, 2023 and 2022, our notes payable consisted of a term loan payable to a bank and a note payable to the former owners of Strive Talent, Inc. (Note 3). The note payable to the former owners of Strive is recorded at net present value and accrues interest at 3.6 percent until the obligation is paid in full. The balances and classification of our notes payable were as follows at the dates indicated (in thousands): Current Portion of Notes Payable Notes Payable, Less Current Portion August 31, August 31, August 31, August 31, Description 2023 2022 2023 2022 Term loan payable $ 5,000 $ 5,000 $ - $ 5,000 Strive acquisition note payable 835 835 1,535 2,268 $ 5,835 $ 5,835 $ 1,535 $ 7,268 Principal payments of $ 1.25 million on our term loan payable under the 2023 Credit Agreement are due and payable on the last day of each March, June, September, and December until the term loan liability is fully repaid in 2024. Interest accrues on the term loans and is paid as discussed in Note 6 above. Under the terms of the Strive acquisition, we pay the former principal owner of Strive $ 0.8 million each April for the first five years following the acquisition. Principal payments on these notes payable are as follows over the next five years (in thousands): YEAR ENDING Term Loan Strive Note AUGUST 31, Payable Payable Total 2024 $ 5,000 $ 835 $ 5,835 2025 - 835 835 2026 - 835 835 2027 - - - $ 5,000 $ 2,505 $ 7,505 |
Financing Obligation
Financing Obligation | 12 Months Ended |
Aug. 31, 2023 | |
Financing Obligation [Abstract] | |
Financing Obligation | 8. FINANCING OBLIGATION We previously sold our corporate headquarters campus located in Salt Lake City, Utah, and entered into a 20 -year master lease agreement with the purchaser, an unrelated private investment group. The 20 -year master lease agreement contains six additional five -year renewal options that allow us to maintain our operations at the current location for up to 50 years. Although the corporate headquarters facility was sold and we have no legal ownership of the property, the applicable accounting guidance prohibited us from recording the transaction as a sale since we subleased a significant portion of the property that was sold. In transition to the lease accounting guidance in ASC 842, we reassessed whether the contract met the sale criteria under the new leasing standard. Based on this assessment, we determined that the sale criteria under the new leasing standard was not met and we will continue to account for the corporate campus lease as a financing obligation on our consolidated balance sheet in future periods. The financing obligation on our corporate campus was comprised of the following (in thousands): AUGUST 31, 2023 2022 Financing obligation payable in monthly installments of $ 335 at August 31, 2023, including principal and interest, with two percent annual increases (imputed interest at 7.7 %), through June 2025 $ 7,962 $ 11,161 Less current portion ( 3,538 ) ( 3,199 ) Total financing obligation, less current portion $ 4,424 $ 7,962 Future principal maturities of our financing obligation were as follows at August 31, 2023 (in thousands): YEAR ENDING AUGUST 31, 2024 $ 3,538 2025 4,424 Thereafter - $ 7,962 Our remaining future minimum payments under the financing obligation in the initial 20 -year lease term are as follows (in thousands): YEAR ENDING AUGUST 31, 2024 $ 4,031 2025 3,301 Thereafter - Total future minimum financing obligation payments 7,332 Less interest ( 682 ) Present value of future minimum financing obligation payments $ 6,650 The $ 1.3 million difference between the carrying value of the financing obligation and the present value of the future minimum financing obligation payments represents the carrying value of the land sold in the financing transaction, which is not depreciated. At the conclusion of the master lease agreement, the remaining financing obligation and carrying value of the land will be offset and eliminated from our consolidated financial statements. |
Leases
Leases | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Leases | 9. LEASES Lessee Obligations In the normal course of business, we lease office space, primarily for international sales administration offices, in commercial office complexes that are conducive to sales and administrative operations. We also rent warehousing and distribution facilities that are designed to provide secure storage and efficient distribution of our training products, books, and accessories, and certain office equipment. These leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we do not have significant amounts of variable lease payments. Some of our operating leases contain renewal options that may be exercised at our discretion after the completion of the base rental term. At August 31, 2023, we had operating leases with remaining terms ranging from less than one year to approximately five years . The amounts of assets and liabilities (in thousands) and other information related to our operating leases follows: Balance Sheet Caption Amount Assets: Operating lease right of use assets Other long-term assets $ 812 Liabilities: Current: Operating lease liabilities Accrued liabilities 579 Long-Term: Operating lease liabilities Other long-term liabilities 233 $ 812 Weighted Average Remaining Lease Term: Operating leases (years) 1.6 Weighted Average Discount Rate: Operating leases 5.0 % In fiscal 2023, we obtained $ 0.6 million of right-of-use operating lease assets in exchange for operating lease liabilities. Future minimum lease payments under our operating leases at August 31, 2023, are as follows (in thousands): YEAR ENDING AUGUST 31, 2024 $ 607 2025 179 2026 38 2027 22 2028 7 Thereafter - Total operating lease payments 853 Less imputed interest ( 41 ) Present value of operating lease liabilities $ 812 We recognize lease expense on a straight-line basis over the life of the lease agreement. Total rent expense recorded in selling, general, and administrative expense from our lease agreements totaled $ 1.2 million, $ 1.5 million, and $ 1.6 million for the fiscal years ended August 31, 2023, 2022, and 2021. Lessor Accounting We have subleased the majority of our corporate headquarters campus located in Salt Lake City, Utah to multiple tenants. These sublease agreements are accounted for as operating leases. We recognize sublease income on a straight-line basis over the life of the sublease agreement. The cost basis of our corporate campus is $ 37.1 million, which had a carrying value of $ 3.0 million at August 31, 2023. The following future minimum lease payments due to us from our sublease agreements at August 31, 2023, are as follows (in thousands): YEAR ENDING AUGUST 31, 2024 $ 2,197 2025 1,814 2026 - Thereafter - $ 4,011 Sublease revenue totaled $ 2.4 million, $ 3.9 million, and $ 4.0 million during the fiscal years ended August 31, 2023, 2022, and 2021. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 10. COMMITMENTS AND CONTINGENCIES Warehouse Outsourcing Contract We have a warehousing services agreement with an independent warehouse and distribution company to provide product kitting, warehousing, and order fulfillment services at a facility in Des Moines, Iowa. Under the terms of this contract, we pay a fixed charge of approximately $ 102,000 per year for account management services and variable charges for other warehousing services based on specified activities, including shipping charges. This warehousing contract expired on September 30, 2023 . We are currently in the process of negotiating a new warehousing contract with this services provider. During fiscal years ended August 31, 2023, 2022, and 2021, we expensed $ 2.7 million, $ 2.5 million, and $ 2.1 million for services provided under the terms of our warehouse and distribution outsourcing contract. The total amount expensed each year includes freight charges, which are billed to us based upon activity. Freight charges included in the warehouse and distribution outsourcing costs totaled $ 1.9 million, $ 1.7 million, and $ 1.4 million during the fiscal years ended August 31, 2023, 2022, and 2021, respectively. Because of the variable component of the agreement, our payments for warehouse and distribution services may fluctuate in the future due to changes in sales and levels of specified activities. Purchase Commitments During the normal course of business, we issue purchase orders to various vendors for products and services. At August 31, 2023, we had open purchase commitments totaling $ 3.3 million for products and services to be delivered primarily in fiscal 2024. Letter of Credit At August 31, 2023 and 2022, we had a standby letter of credit for $ 10,000 . No thing was drawn on this letter of credit at either August 31, 2023 or August 31, 2022. Legal Matters and Loss Contingencies We are the subject of certain legal actions, which we consider routine to our business activities. At August 31, 2023, we believe that, after consultation with legal counsel, any potential liability to us under these other actions will not materially affect our financial position, liquidity, or results of operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Aug. 31, 2023 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 11. SHAREHOLDERS’ EQUITY Preferred Stock We have 14.0 million shares of preferred stock authorized for issuance. At August 31, 2023 and 2022, no shares of preferred stock were issued or outstanding. Treasury Stock On February 14, 2023, our Board of Directors approved a new plan to purchase up to $ 50.0 million of our outstanding common stock. The previously existing common stock purchase plan was canceled, and the new common share purchase plan does not have an expiration date. During fiscal 2023, we purchased 867,873 shares of our common stock on the open market for $ 34.7 million, including 857,608 shares for $ 34.3 million under the terms of the purchase plan approved in 2023. The actual timing, number, and value of common shares purchased under our board-approved plan will be determined at our discretion and will depend on a number of factors, including, among others, general market and business conditions, the trading price of common shares, and applicable legal requirements. We have no obligation to purchase any common shares under the authorization, and the purchase plan may be suspended, discontinued, or modified at any time for any reason. Purchases of common stock for treasury as presented on our consolidated statements of cash flows includes both shares purchased on the open market and shares withheld for statutory taxes on our stock-based compensation awards (Note 13) and include the applicable one percent excise tax. Shares withheld for income taxes are valued at the market price on the date the stock-based plan shares were distributed to participants. In fiscal 2023, we withheld 17,639 shares for statutory taxes with a cost basis of $ 0.8 million. During fiscal 2022, we purchased 499,411 shares of our common stock for $ 20.3 million in open market purchases and withheld 86,125 shares of common stock, with a cost basis of $ 3.5 million, for statutory taxes. The cost of common stock purchased for treasury in fiscal 2021 was entirely comprised of 147,092 shares withheld for income taxes on various stock-based compensation awards, which had a cost basis of $ 3.0 million. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Aug. 31, 2023 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | 12. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into the following three levels based on reliability: Level 1 valuations are based on quoted prices in active markets for identical instruments that we can access at the measurement date. Level 2 valuations are based on inputs other than quoted prices included in Level 1 that are observable for the instrument, either directly or indirectly, for substantially the full term of the asset or liability including the following: a. quoted prices for similar, but not identical, instruments in active markets; b. quoted prices for identical or similar instruments in markets that are not active; c. inputs other than quoted prices that are observable for the instrument; or d. inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. The book values of our financial instruments at August 31, 2023 and 2022 approximated their fair values. The assessment of the fair values of our financial instruments is based on a variety of factors and assumptions. Accordingly, the fair values may not represent the actual values of the financial instruments that could have been realized at August 31, 2023 or 2022, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. The following methods and assumptions were used to determine the fair values of our financial instruments, none of which were held for trading or speculative purposes. Cash, Cash Equivalents, and Accounts Receivable – The carrying amounts of cash, cash equivalents, and accounts receivable approximate their fair values due to the liquidity and short-term maturity of these instruments. Other Assets – Our other assets, including notes receivable, were recorded at the net realizable value of estimated future cash flows from these instruments. Debt Obligations – At August 31, 2023, our debt obligations consisted primarily of a variable-rate term loan payable and a note payable to the former owners of Strive. Our term loan payable and revolving line of credit are negotiated components of our new 2023 Credit Agreement (Note 6), which was completed in March 2023 and replaced the 2019 Credit Agreement. Since the interest rate for any obligation on our 2023 Credit Agreement is variable, the applicable interest rates and other conditions related to the term loan and revolving line of credit are reflective of current market conditions, and the carrying value of term loan and revolving line of credit (when applicable) obligations therefore approximate their fair value. Contingent Consideration Liabilities from Business Acquisitions The acquisition price of Jhana Education (Jhana), which was completed in fiscal 2017, included total potential contingent consideration of $ 7.2 million through a specified measurement period, which lasted through July 2026. We measured the fair value of this contingent consideration liability at each reporting date based on a Monte Carlo simulation model. The fair value of the Jhana contingent consideration was a Level 3 measurement because we estimated consolidated Company and AAP sales over the measurement period. Changes to the fair value of the contingent consideration liabilities were recorded in selling, general, and administrative expenses in the accompanying consolidated income statements and statements of comprehensive income in the period of adjustment. The fair value of the contingent consideration liability from the acquisition of Jhana changed as follows during the fiscal year ended August 31, 2023 (in thousands): Change in AUGUST 31, 2022 Fair Value Payments 2023 Jhana contingent liability $ 729 $ 7 $ ( 736 ) $ - At August 31, 2023, we have no further contingent consideration payable or other liabilities to the former owners of Jhana. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Aug. 31, 2023 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 13. STOCK-BASED COMPENSATION PLANS Overview We utilize various stock-based compensation plans as integral components of our overall compensation and associate retention strategy. Our shareholders have approved various stock incentive plans that permit us to grant performance awards, unvested stock awards, stock options, fully vested stock awards, and employee stock purchase plan (ESPP) shares. The Organization and Compensation Committee of the Board of Directors (the Compensation Committee) has responsibility for the approval and oversight of our stock-based compensation plans. On January 14, 2022, our shareholders approved the Franklin Covey Co. 2022 Omnibus Incentive Plan (the 2022 Plan), which authorized an additional 1,000,000 shares of common stock for issuance as stock-based payments. A more detailed description of the 2022 Plan is set forth in our Definitive Proxy Statement filed with the SEC on December 15, 2021. At August 31, 2023, the 2022 Plan had approximately 594,000 shares available for future grants. Our ESPP is administered under the terms of the Franklin Covey Co. 2017 Employee Stock Purchase Plan, which was approved by our shareholders at the annual meeting of shareholders held on January 26, 2018. For additional information regarding the Franklin Covey Co. 2017 Employee Stock Purchase Plan, please refer to our definitive Proxy Statement as filed with the SEC on December 22, 2017. At August 31, 2023, we had approximately 733,000 shares available for purchase by plan participants under the terms of the current shareholder approved ESPP. The total compensation expense of our various stock-based compensation plans was as follows (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Performance awards $ 10,767 $ 6,133 $ 7,298 Strive acquisition compensation 739 1,196 354 Unvested stock awards 700 673 700 Compensation cost of the ESPP 269 239 205 Fully vested stock awards 45 45 60 $ 12,520 $ 8,286 $ 8,617 No stock-based compensation was capitalized during the fiscal years presented in this report. We recognize forfeitures of stock-based compensation instruments as they occur. During fiscal 2023, we issued 114,214 shares of our common stock from shares held in treasury for various stock-based compensation arrangements, including the ESPP. Our stock-based compensation plans allow shares to be withheld from the award to pay the participants’ statutory income tax liabilities. We withheld 17,639 shares of our common stock, with a fair value of $ 0.8 million, for statutory income taxes during fiscal 2023. At each quarterly or annual reporting date, we evaluate the number and probability of shares expected to vest in each of our performance-based long-term incentive plan (LTIP) awards and adjust our stock-based compensation expense to correspond with the number of shares expected to vest over the anticipated service period. Due to the significant impact of the COVID-19 pandemic on our results of operations in the third quarter of fiscal 2020 and the uncertainties surrounding the recovery of the world’s economies and our business, we determined that nearly all LTIP award tranches based on qualified Adjusted EBITDA for outstanding LTIP awards would not vest before the end of the respective service periods. We therefore reversed the previously recognized stock-based compensation expense associated with these awards during fiscal 2020. On October 2, 2020, the Compensation Committee modified the terms of our performance-based LTIP award tranches to extend the service period of each financial-metric based tranche by two years and increase each qualified Adjusted EBITDA vesting target by $ 2.0 million. No time-based vesting LTIP tranches were modified. During the periods presented in this report, we reassessed the probability of awards vesting under the modified conditions and have expensed awards based on the new vesting requirements and expected financial results over the revised service periods. The following is a description of our stock-based compensation plans. Performance Awards The Compensation Committee has awarded various performance-based stock compensation awards to members of our senior management as long-term incentive-based compensation. These awards vest to the participants based upon the achievement of specified performance criteria. Compensation expense is recognized as we determine it is probable that the shares will vest. Adjustments to compensation expense to reflect the timing of and the number of shares expected to be awarded are made on a cumulative basis at the date of the adjustment. We reevaluate the likelihood and/or the number of shares expected to vest under performance awards at each reporting date. Based on current estimates and projections, we have $ 11.1 million of unrecognized compensation expense related to our performance awards at August 31, 2023. The following descriptions of our performance-based awards as of August 31, 2023 were adjusted for forfeitures. Fiscal 2023 LTIP Award – On October 14, 2022, the Compensation Committee granted a new LTIP award to our executive officers and members of senior management. The fiscal 2023 LTIP award was subsequently expanded with new grants for additional participants, which are expensed based on the market value of our common stock on the date of the grants. The fiscal 2023 LTIP award has two tranches, which consist of: 1) shares that vest after three years of service and 2) shares that vest based on the highest amount of rolling four quarter qualified Adjusted EBITDA earned in the three years ended August 31, 2025. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche does not fluctuate based on financial measures. The number of shares granted in this tranche totals 26,682 shares. The number of shares that vest to participants for the amount of qualified Adjusted EBITDA achieved through August 31, 2025 is variable and may be 50 percent of the award or up to 200 percent of the participant’s award depending on the amount of qualified Adjusted EBITDA achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 80,018 shares. The maximum number of shares that may be awarded in connection with the performance-based tranche of the 2023 LTIP totals 160,036 shares. Fiscal 2022 LTIP Award – On February 4, 2022, the Compensation Committee granted an LTIP award to our executive officers and members of senior management. The fiscal 2022 LTIP award has two tranches, which consist of: 1) shares that vest after three years of service and 2) shares that vest based on the highest amount of rolling four quarter qualified Adjusted EBITDA in the three years ended August 31, 2024. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche does not fluctuate based on financial measures. The number of shares granted in this tranche totals 24,138 shares. The number of shares that vest to participants for the amount of qualified Adjusted EBITDA achieved through August 31, 2024 is variable and may be 50 percent of the award or up to 200 percent of the participant’s award depending on the amount of qualified Adjusted EBITDA achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 72,397 shares. The maximum number of shares that may be awarded in connection with the performance-based tranche of the 2022 LTIP totals 144,794 shares. Fiscal 2021 LTIP Award – On October 2, 2020, the Compensation Committee of the Board of Directors granted an LTIP award to our executive officers and members of senior management. The fiscal 2021 LTIP award had two tranches, which consisted of: 1) shares that vest after three years of service and 2) shares that vest based on the amount of rolling four quarter qualified Adjusted EBITDA achieved in the three-year measurement period ended August 31, 2023. Twenty-five percent of each participant’s award vested on August 31, 2023, after three years of service. We issued a total of 51,617 shares for this tranche of the 2021 LTIP award. We achieved the maximum payout parameter for the qualified Adjusted EBITDA tranche of the fiscal 2021 LTIP award and issued 309,660 shares of our common stock during the first quarter of fiscal 2024 to participants in the fiscal 2021 LTIP. Fiscal 2020 LTIP Award – On October 18, 2019, the Compensation Committee granted a new LTIP award to our executive officers and members of senior management. The fiscal 2020 LTIP award has three tranches, which consist of the following: 1) shares that vest after three years of service; 2) shares that vest based on the achievement of specified levels of qualified Adjusted EBITDA; and 3) shares that vest based on the achievement of specified levels of subscription service sales. Twenty-five percent of each participant’s award vested on August 31, 2022, after three years of service. We issued a total of 23,701 shares for the time-based tranche of the 2020 LTIP award. The remaining two tranches of the award are based on the highest rolling four-quarter levels of qualified Adjusted EBITDA and subscription service sales achieved in the three-year period which originally ended August 31, 2022. As described above, the qualified Adjusted EBITDA vesting targets for the fiscal 2020 LTIP were increased by $ 2.0 million and the measurement period of the variable award tranches was extended to August 31, 2024 . The number of shares that will vest to participants for these two tranches is variable and may be 50 percent of the award or up to 200 percent of the participant’s award. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 70,577 shares and the maximum number of shares that may be awarded in connection with these tranches currently totals 141,154 shares. Fiscal 2019 LTIP Award – On October 1, 2018, the Compensation Committee granted a performance-based LTIP award to our executive officers and members of senior management. The fiscal 2019 LTIP award had three tranches, which consisted of the following: 1) shares that vest after three years of service; 2) shares that vest based on the amount of qualified Adjusted EBITDA achieved in the measurement period; and 3) shares that vest based on the amount of subscription service sales achieved in the measurement period. Twenty-five percent of each participant’s award vested on August 31, 2021, after three years of service. We issued a total of 34,605 shares for the time-based tranche of the 2019 LTIP award. The remaining two tranches of the fiscal 2019 award were based on the highest rolling four-quarter levels of qualified Adjusted EBITDA and subscription service sales achieved in the measurement period that originally ended August 31, 2021. During fiscal 2021, the fiscal 2019 LTIP award was modified by increasing the qualified Adjusted EBITDA vesting targets by $ 2.0 million and extending the measurement period by two years to August 31, 2023 . We achieved the maximum payout parameters for the variable tranches of the fiscal 2019 LTIP award and issued 204,418 shares of our common stock during the first quarter of fiscal 2024 to participants in the 2019 LTIP. Long-Term Incentive and Retention Equity Awards - On October 14, 2022, the Compensation Committee approved a new long-term incentive award, included in the LTIP award program, for client partners, managing client partners, managing directors, and certain other associates that management believes are critical to our long-term success. For sales-related personnel, their award amounts are based upon meeting minimum sales levels and determining the value of the award based on their total sales performance for the fiscal year. For the other associates, their award amount was approved by the Compensation Committee. One-third of these award shares vest each year over a three-year service period. During fiscal 2023, this award program granted 40,009 shares to eligible associates. These awards are expected to be granted annually by the Compensation Committee to retain these key associates. Strive Acquisition Compensation – We structured two parts of the consideration for the fiscal 2021 acquisition of Strive (Note 3) as potentially payable in shares of our common stock. Each of the following amounts may be payable in shares of our common stock or cash at our sole discretion: Contingent Consideration – A maximum of $ 4.2 million may be earned by the former principal owner of Strive over a five-year period ending in May 2026. The total value of this consideration is contingent upon sales and growth of the All Access Pass subscription and subscription services revenues during the five-year measurement period. We measure the contingent consideration each quarter and divide the total by the average of the closing share price of our common stock on the NYSE over the last 15 trading days of the quarter. Shares are required to be distributed within 45 days following the end of each quarter. Through August 31, 2023, we have recognized $ 1.5 million of share-based compensation expense for the Strive contingent consideration payments. Bonus Payments – Approximately $ 1.0 million was payable 18 months following the Closing Date to stockholders and option holders of Strive who were still employed by us as of the 18 -month date, subject to certain exceptions. We expensed these awards evenly over the 18 -month service period and recognized $ 0.8 million of share-based compensation expense for these awards, which were paid in October 2022. We have reserved 200,000 shares of our common stock from our 2019 Omnibus Plan for payment of this consideration related to the acquisition of Strive. Unvested Stock Awards The annual Board of Director unvested stock award, which is administered under the terms of the Franklin Covey Co. Omnibus Incentive Plans, is designed to provide our non-employee directors, who are not eligible to participate in our ESPP, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock as part of their compensation. For fiscal 2023, each eligible director received a whole-share grant equal to $ 120,000 with a one-year vesting period. The Board of Director unvested awards are generally granted in January (following the Annual Shareholders’ Meeting) of each year, and shares granted under the terms of this annual award may not be voted or participate in any common stock dividends until they are vested. We issued 15,882 shares, 13,260 shares, and 28,049 shares of our common stock to eligible members of the Board of Directors during fiscal 2023, fiscal 2022, and fiscal 2021 as unvested stock awards. The fair value of shares awarded to the directors was $ 0.7 million in each of fiscal 2023, fiscal 2022, and fiscal 2021 as calculated on the grant date of the awards. The corresponding compensation cost of each award is recognized over the service period of the award, which is one year. The cost of the common stock issued from treasury for these awards was $ 0.3 million in fiscal 2023, $ 0.2 million in fiscal 2022, and $ 0.4 million in fiscal 2021. The following information applies to our unvested stock awards for the fiscal year ended August 31, 2023: Weighted- Average Grant- Date Fair Number of Value Per Shares Share Unvested stock awards at August 31, 2022 13,260 $ 49.78 Granted 15,882 45.34 Forfeited - - Vested ( 13,260 ) 49.78 Unvested stock awards at August 31, 2023 15,882 $ 45.34 At August 31, 2023, there was $ 0.2 million of unrecognized compensation cost left on our unvested stock awards, which is expected to be recognized over the remaining service period of approximately four months . The total recognized income tax benefit from unvested stock awards totaled $ 0.2 million for each of the years ended August 31, 2023, 2022, and 2021. The intrinsic value of our unvested stock awards at August 31, 2023 was $ 0.7 million. Stock Options On January 12, 2021, our Chief Executive Officer (CEO) exercised his remaining stock options, which would have expired on January 14, 2021. After these stock options were exercised, we do not have any remaining stock options outstanding. These stock options were exercised on a net basis, meaning no cash was paid to exercise the options. For the 218,750 options exercised in fiscal 2021, we withheld 51,738 shares of our common stock with a fair value of $ 1.3 million for income taxes. The intrinsic value of options exercised in fiscal 2021 totaled $ 2.9 million and we recognized an income tax benefit of $ 0.7 million, of which $ 0.5 million was recognized upon the exercise of the options. Employee Stock Purchase Plan We have an employee stock purchase plan that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of each quarter. ESPP participants purchased a total of 40,141 shares, 36,960 shares, and 51,581 shares of our common stock during the fiscal years ended August 31, 2023, 2022, and 2021, which had a corresponding cost basis of $ 0.7 million in fiscal 2023, $ 0.6 million in fiscal 2022, and $ 0.8 million in fiscal 2021. We received cash proceeds for these shares from ESPP participants totaling $ 1.5 million in fiscal 2023; $ 1.3 million in fiscal 2022; and $ 1.1 million during fiscal 2021. Fully Vested Stock Awards We have a stock-based incentive program that is designed to reward our client partners and training consultants for exceptional long-term performance. The program grants shares of our common stock to client partners who have achieved certain cumulative sales goals and to training consultants who have delivered a specified number of training days during their career. Three individuals qualified for these awards in each of fiscal 2023 and fiscal 2022 and four individuals qualified for these awards in the fiscal year ended August 31, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Aug. 31, 2023 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 14. EMPLOYEE BENEFIT PLANS We have defined contribution profit sharing plans for our employees that qualify under Section 401(k) of the Internal Revenue Code. These plans provide retirement benefits for employees meeting minimum age and service requirements. Qualified participants may contribute up to 75 percent of their gross wages, subject to certain limitations. These plans also provide for matching contributions to the participants that are paid by the Company. The matching contributions, which were expensed as incurred, totaled $ 3.0 million, $ 2.7 million, and $ 2.5 million during the fiscal years ended August 31, 2023, 2022, and 2021, respectively. We do not sponsor or participate in any defined-benefit pension plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 15. INCOME TAXES Our benefit (provision) for income taxes consisted of the following (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Current: Federal $ - $ - $ - State ( 791 ) ( 1,221 ) ( 286 ) Foreign ( 2,389 ) ( 2,202 ) ( 1,773 ) ( 3,180 ) ( 3,423 ) ( 2,059 ) Deferred: Federal 1,545 ( 9,339 ) 2,869 State 225 ( 889 ) 13 Foreign 216 24 24 Operating loss carryforward ( 7,201 ) 7,150 ( 3,058 ) Valuation allowance 372 2,845 10,546 Foreign tax credit carryforward reduction ( 65 ) ( 2 ) ( 787 ) ( 4,908 ) ( 211 ) 9,607 $ ( 8,088 ) $ ( 3,634 ) $ 7,548 The allocation of our total income tax benefit (provision) is as follows (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Net income $ ( 8,088 ) $ ( 3,634 ) $ 7,548 Other comprehensive income ( 80 ) 176 11 $ ( 8,168 ) $ ( 3,458 ) $ 7,559 Income before income taxes was generated as follows (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 United States $ 23,574 $ 21,152 $ 6,834 Foreign 2,295 912 ( 759 ) $ 25,869 $ 22,064 $ 6,075 The differences between income taxes at the statutory federal income tax rate and the consolidated income tax rate reported in our consolidated income statements and statements of comprehensive income were as follows: YEAR ENDED AUGUST 31, 2023 2022 2021 Federal statutory income tax rate ( 21.0 ) % ( 21.0 ) % ( 21.0 ) % State income taxes, net of federal effect ( 4.7 ) ( 3.9 ) ( 1.6 ) Valuation allowance 1.4 12.9 173.6 Foreign tax credit carryforward reduction ( 0.3 ) - ( 13.0 ) Executive stock options - - 7.7 Foreign jurisdictions tax differential ( 0.2 ) ( 1.1 ) ( 4.0 ) Tax differential on income subject to both U.S. and foreign taxes ( 1.4 ) ( 0.2 ) ( 0.7 ) Uncertain tax positions ( 0.9 ) ( 0.8 ) ( 3.0 ) Non-deductible executive compensation ( 3.6 ) ( 5.5 ) ( 5.8 ) Non-deductible meals and entertainment ( 0.7 ) ( 0.1 ) ( 0.2 ) Other stock-based compensation ( 0.4 ) 2.5 - Other 0.5 0.7 ( 7.8 ) ( 31.3 ) % ( 16.5 ) % 124.2 % Our effective income tax expense rate for fiscal 2023 of 31.3 percent was higher than the statutory tax rate primarily due to tax expense of $ 0.9 million for non-deductible executive compensation and $ 0.4 million in tax differential on income subject to both U.S. and foreign taxes, which were partially offset by a $ 0.4 million decrease in the valuation allowance against our deferred income tax assets. The effective income tax expense rate for fiscal 2022 of 16.5 percent was lower than the statutory tax rate primarily due to a $ 2.8 million decrease in the valuation allowance against our deferred income tax assets and a $ 0.6 million benefit for share-based compensation deductions in excess of the corresponding book expense. These tax benefits were partially offset by tax expense of $ 1.2 million for non-deductible executive compensation. Our effective income tax benefit rate for fiscal 2021 of 124.2 percent was primarily due to a $ 10.5 million reduction in our valuation allowance against deferred income tax assets, which was partially offset by the reduction of $ 0.8 million in foreign tax credit carryforwards resulting from tax withheld by foreign jurisdictions in excess of amounts allowable as credits against our U.S. income taxes. In fiscal 2020, as explained below, we recognized $ 11.3 million of additional income tax expense resulting from the increase in the valuation allowance against our deferred tax assets. In consideration of the relevant accounting guidance, we reevaluated our deferred tax assets during fiscal 2020 and considered both positive and negative evidence in determining whether it is more likely than not that some portion or all of our deferred tax assets will be realized. Because of the cumulative pre-tax losses over the prior three fiscal years, combined with the expected continued disruptions and negative impact to our business resulting from uncertainties related to the recovery from the pandemic, we were unable to overcome accounting guidance indicating that it is more-likely-than-not that insufficient taxable income will be available to realize all of our deferred tax assets before they expire, primarily foreign tax credit carryforwards and a portion of our net operating loss carryforwards. Based on this assessment, we increased the valuation allowance against our deferred tax assets, which generated $ 11.3 million of additional income tax expense in fiscal 2020. Our strong financial performance during fiscal 2021 produced cumulative three-year pre-tax income through August 31, 2021. Because of better-than-expected earnings during fiscal 2021, as well as a favorable outlook for future earnings, particularly from sales of our All Access Pass, we reduced the valuation allowance against our deferred tax assets by $ 10.5 million during fiscal 2021. In fiscal 2022, we reduced the valuation allowance against our deferred tax assets by $ 2.8 million, due primarily to foreign tax credits claimed on our fiscal 2021 U.S. federal income tax return which we previously concluded would expire unused. In fiscal 2023, we reduced the valuation allowance against our deferred tax assets by $ 0.4 million, due primarily to reversals of certain foreign subsidiaries’ valuation allowances. We are subject to the anti-deferral provisions on Global Intangible Low-Taxed Income (GILTI) under the Tax Cut and Jobs Act of 2017. We have elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the Period Cost Method). We recorded income tax expense of $ 0.2 million in fiscal 2023, an insignificant amount of income tax expense in fiscal 2022 and no income tax expense in fiscal 2021 under the GILTI provisions. During fiscal 2019, we recorded income tax expense of $ 0.3 million under GILTI. However, IRS guidance issued after we filed our fiscal 2019 federal income tax return allowed us to amend the return and reverse the GILTI tax previously recorded. Accordingly, we recorded a $ 0.3 million benefit for this reversal during fiscal 2021. The significant components of our deferred tax assets and liabilities were as follows (in thousands): AUGUST 31, 2023 2022 Deferred income tax assets: Net operating loss carryforward $ 6,505 $ 11,334 Foreign income tax credit carryforward 4,253 4,096 Stock-based compensation 4,222 2,503 Sale and financing of corporate headquarters 1,899 2,638 Deferred revenue 1,677 1,596 Bonus and other accruals 1,517 2,094 Capitalized development costs 1,236 - Inventory and bad debt reserves 1,094 1,533 Other 458 605 Total deferred income tax assets 22,861 26,399 Less: valuation allowance ( 1,313 ) ( 1,685 ) Net deferred income tax assets 21,548 24,714 Deferred income tax liabilities: Intangibles step-ups – indefinite lived ( 5,522 ) ( 5,478 ) Intangibles step-ups – finite lived ( 2,541 ) ( 3,186 ) Self-constructed tangible assets ( 5,476 ) ( 3,811 ) Intangible asset amortization ( 4,189 ) ( 3,851 ) Deferred commissions ( 3,598 ) ( 3,187 ) Unremitted earnings of foreign subsidiaries ( 521 ) ( 388 ) Property and equipment depreciation ( 80 ) ( 326 ) Total deferred income tax liabilities ( 21,927 ) ( 20,227 ) Net deferred income taxes $ ( 379 ) $ 4,487 Deferred income tax amounts are recorded as follows in our consolidated balance sheets (in thousands): AUGUST 31, 2023 2022 Long-term assets $ 1,661 $ 4,686 Long-term liabilities ( 2,040 ) ( 199 ) Net deferred income tax asset $ ( 379 ) $ 4,487 Our U.S. federal net operating loss carryforwards were comprised of the following at August 31, 2023 (in thousands): Loss Carryforward Loss Loss Operating Loss Carryforward Expires Deductions Deductions Loss Carried for Year Ended August 31, Amount in Prior Years in Current Year Forward Acquired NOL - Jhana December 31, 2015 2034 $ 1,491 $ ( 1,428 ) $ ( 63 ) $ - December 31, 2016 2035 3,052 - ( 908 ) 2,144 July 15, 2017 2036 1,117 - - 1,117 5,660 ( 1,428 ) ( 971 ) 3,261 Acquired NOL - Strive December 31, 2018 No Expiration 947 ( 295 ) ( 652 ) - December 31, 2019 No Expiration 869 - ( 869 ) - December 31, 2020 No Expiration 1,133 - ( 160 ) 973 April 25, 2021 No Expiration 553 - - 553 3,502 ( 295 ) ( 1,681 ) 1,526 August 31, 2022 No Expiration 40,996 - ( 27,790 ) 13,206 $ 50,158 $ ( 1,723 ) $ ( 30,442 ) $ 17,993 Certain operating loss carryforwards in the table above were obtained through the fiscal 2017 acquisition of Jhana Education (Jhana) and the fiscal 2021 acquisition of Strive (Note 3). We have U.S. state net operating loss carryforwards generated in fiscal 2009 and before in various jurisdictions that expire primarily between September 1, 2023 and August 31, 2029. The U.S. state net operating loss carryforwards generated in fiscal 2017 and fiscal 2018 primarily expire on August 31, 2037 and 2038, respectively. The state net operating loss carryforwards acquired through the purchase of Jhana stock expire between August 31, 2034 and August 31, 2036. The state net operating loss carryforwards acquired through the purchase of Strive stock expire between August 31, 2038 and August 31, 2041. The state net operating loss carryforwards generated in fiscal 2022 primarily expire on August 31, 2042. Our U.S. foreign income tax credit carryforwards were comprised of the following at August 31, 2023 (in thousands): Credit Generated in Credits Used Credits Credits Used Credits Fiscal Year Ended Credit Expires Credits in Prior Reduced in in Current Carried August 31, August 31, Generated Years Current Year Year Forward 2018 2028 $ 1,727 $ ( 965 ) $ ( 21 ) $ - $ 741 2019 2029 1,578 ( 234 ) - - 1,344 2020 2030 1,010 ( 147 ) ( 18 ) - 845 2022 2032 1,216 - ( 25 ) - 1,191 2023 2033 1,061 - - ( 929 ) 132 $ 6,592 $ ( 1,346 ) $ ( 64 ) $ ( 929 ) $ 4,253 As previously explained, during fiscal 2020 we significantly increased the valuation allowance on our deferred income tax assets. During fiscal 2021 we reversed nearly all of the valuation allowance amounts that we recorded in fiscal 2020. The remaining valuation allowance at August 31, 2021 related primarily to the foreign tax credit carryforward from fiscal 2011, which we expected to expire in fiscal 2022, and losses of certain foreign subsidiaries. During fiscal 2022 we were able to utilize the foreign tax credit carryforward from 2011. The remaining valuation allowance at August 31, 2022 related primarily to the losses of certain foreign subsidiaries. During fiscal 2023 we reversed the valuation allowance for certain foreign subsidiaries and increased the valuation allowance for certain other foreign subsidiaries, resulting in a net decrease in our total valuation allowance. The remaining valuation allowance at August 31, 2023 relates primarily to the losses of certain foreign subsidiaries which we currently expect will expire unused. Activity in our deferred income tax asset valuation allowance was as follows for the periods indicated (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 1,685 $ 4,530 $ 15,076 Charged to costs and expenses 212 683 394 Deductions ( 584 ) ( 3,528 ) ( 10,940 ) Ending balance $ 1,313 $ 1,685 $ 4,530 Except for the deferred tax assets subject to valuation allowances, we have determined that projected future taxable income will be adequate to allow for realization of all deferred tax assets. We considered sources of taxable income, including reversals of taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, and reasonable, practical tax-planning strategies to generate additional taxable income. Based on the factors described above, we concluded that realization of our deferred tax assets, except those subject to the valuation allowances described above, is more likely than not at August 31, 2023. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 1,597 $ 1,594 $ 1,640 Additions based on tax positions related to the current year 188 77 349 Additions for tax positions in prior years 290 207 79 Reductions for tax positions of prior years resulting from the lapse of applicable statute of limitations ( 186 ) - ( 188 ) Other reductions for tax positions of prior years ( 271 ) ( 281 ) ( 286 ) Ending balance $ 1,618 $ 1,597 $ 1,594 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $ 1.3 million at each of August 31, 2023 and 2022. Included in the ending balance of gross unrecognized tax benefits at August 31, 2023 is $ 1.2 million related to individual states’ net operating loss carryforwards. Interest and penalties related to uncertain tax positions are recognized as components of income tax expense. The net accruals and reversals of interest and penalties increased our income tax expense by $ 0.1 million in each of fiscal 2023 and 2022 and had an insignificant effect on our income taxes in fiscal 2021. The balance of interest and penalties included in other long-term liabilities on our consolidated balance sheets was $ 0.4 million on August 31, 2023 and $ 0.3 million on August 31, 2022. During the next 12 months, we expect an immaterial change in our unrecognized tax benefits. We file United States federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The tax years that remain subject to examinations for our major tax jurisdictions are shown below. 2016-2023 Australia, Canada, and Japan 2016 - 2023 China 2018 - 2023 Germany, Switzerland, and Austria 2019 - 2023 United Kingdom, Singapore 2019 - 2023 United States – state and local income tax 2020 - 2023 United States – federal income tax |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. EARNINGS PER SHARE The following schedule shows the calculation of earnings per share (EPS) for the periods presented (in thousands, except per-share amounts). YEAR ENDED AUGUST 31, 2023 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 17,781 $ 18,430 $ 13,623 Denominator for basic and diluted earnings per share: Basic weighted average shares outstanding 13,640 14,147 14,090 Effect of dilutive securities: Stock-based compensation awards 659 408 53 Diluted weighted average shares outstanding 14,299 14,555 14,143 EPS Calculations: Net income per share: Basic $ 1.30 $ 1.30 $ 0.97 Diluted 1.24 1.27 0.96 |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 17. SEGMENT INFORMATION Reportable Segments Our sales are primarily comprised of training and consulting services and our internal reporting structure is comprised of three reportable operating segments and a corporate services group. Our internal reporting structure and reportable segments are organized primarily around the client channels which produce the Company’s revenues. The following is a brief description of our reportable segments: Direct Offices – This segment includes our sales personnel that serve the United States and Canada; our international sales offices that serve clients in Japan, China, the United Kingdom, Ireland, Australia, New Zealand, Germany, Switzerland, and Austria; our governmental sales channel; our coaching operations; and our books and audio sales channel. International Licensees – This segment is primarily comprised of our international licensees’ royalty revenues. Education Practice – This group includes our domestic and international Education practice operations, which are focused on sales to educational institutions. Corporate and Other – Our corporate and other information includes royalty revenue from Franklin Planner Corporation, leasing operations, shipping and handling revenues, and certain corporate administrative expenses. We have determined that the Company’s chief operating decision maker is the CEO, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts reported by other companies. For reporting purposes, w e define Adjusted EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other items such as adjustments to the fair value of expected contingent consideration liabilities arising from business acquisitions, and other unusual or infrequent items . Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the divisions for analysis purposes. Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes. We account for our segment information on the same basis as the accompanying consolidated financial statements (in thousands). Sales to Fiscal Year Ended External Adjusted August 31, 2023 Customers Gross Profit EBITDA Enterprise Division: Direct offices $ 194,021 $ 156,915 $ 44,198 International licensees 11,645 10,507 5,874 205,666 167,422 50,072 Education Division 69,736 44,418 7,426 Corporate and eliminations 5,119 1,650 ( 9,432 ) Consolidated $ 280,521 $ 213,490 $ 48,066 Fiscal Year Ended August 31, 2022 Enterprise Division: Direct offices $ 183,845 $ 148,051 $ 37,497 International licensees 10,551 9,382 4,964 194,396 157,433 42,461 Education Division 61,852 41,206 8,408 Corporate and eliminations 6,593 3,273 ( 8,672 ) Consolidated $ 262,841 $ 201,912 $ 42,197 Fiscal Year Ended August 31, 2021 Enterprise Division: Direct offices $ 159,608 $ 129,416 $ 27,948 International licensees 9,036 7,727 3,586 168,644 137,143 31,534 Education Division 48,902 32,771 4,818 Corporate and eliminations 6,622 2,988 ( 8,394 ) Consolidated $ 224,168 $ 172,902 $ 27,958 A reconciliation of Adjusted EBITDA to consolidated net income is provided below (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Segment Adjusted EBITDA $ 57,498 $ 50,869 $ 36,352 Corporate expenses ( 9,432 ) ( 8,672 ) ( 8,394 ) Consolidated Adjusted EBITDA 48,066 42,197 27,958 Stock-based compensation ( 12,520 ) ( 8,286 ) ( 8,617 ) Increase in contingent consideration liabilities ( 7 ) ( 68 ) ( 193 ) Restructuring costs ( 565 ) - - Gain from insurance settlement - - 150 Government COVID assistance - - 299 Business acquisition costs - - ( 300 ) Depreciation ( 4,271 ) ( 4,903 ) ( 6,190 ) Amortization ( 4,342 ) ( 5,266 ) ( 5,006 ) Income from operations 26,361 23,674 8,101 Interest income 1,091 65 73 Interest expense ( 1,583 ) ( 1,675 ) ( 2,099 ) Income before income taxes 25,869 22,064 6,075 Benefit (provision) for income taxes ( 8,088 ) ( 3,634 ) 7,548 Net income $ 17,781 $ 18,430 $ 13,623 Disaggregated Revenue Our revenues are derived primarily from the United States. However, we also operate directly-owned offices or contract with licensees to provide our services in various countries throughout the world. Our consolidated revenues were derived from the following countries/regions (in thousands): YEAR ENDED AUGUST 31, 2023 2022 2021 Americas $ 233,479 $ 218,863 $ 182,954 Asia Pacific 28,640 26,835 28,621 Europe/Middle East/Africa 18,402 17,143 12,593 $ 280,521 $ 262,841 $ 224,168 The following table presents our revenue disaggregated by our significant revenue generating activities. Sales of services and products include training and consulting services and related products such as training manuals. Subscription sales include revenues from our subscription services such as the All Access Pass and Leader in Me membership. We receive royalty revenue from our international licensees and from other sources such as book publishing arrangements. Corporate royalties are amounts received from Franklin Planner Co. pursuant to a licensing arrangement obtained in fiscal 2020. Leases and other revenue is primarily comprised of lease revenues from sub-leases for space at our corporate headquarters campus and from shipping and handling revenues (in thousands). Fiscal Year Ended Services and Leases and August 31, 2023 Products Subscriptions Royalties Other Consolidated Enterprise Division: Direct offices $ 93,700 $ 97,992 $ 2,329 $ - $ 194,021 International licensees 428 1,327 9,890 - 11,645 94,128 99,319 12,219 - 205,666 Education Division 26,803 39,662 3,271 - 69,736 Corporate and eliminations - - 1,250 3,869 5,119 Consolidated $ 120,931 $ 138,981 $ 16,740 $ 3,869 $ 280,521 Fiscal Year Ended August 31, 2022 Enterprise Division: Direct offices $ 93,324 $ 88,055 $ 2,466 $ - $ 183,845 International licensees 429 1,281 8,841 - 10,551 93,753 89,336 11,307 - 194,396 Education Division 25,134 34,037 2,681 - 61,852 Corporate and eliminations - - 1,194 5,399 6,593 Consolidated $ 118,887 $ 123,373 $ 15,182 $ 5,399 $ 262,841 Fiscal Year Ended August 31, 2021 Enterprise Division: Direct offices $ 84,111 $ 72,789 $ 2,708 $ - $ 159,608 International licensees 1,085 - 7,951 - 9,036 85,196 72,789 10,659 - 168,644 Education Division 19,747 26,742 2,413 - 48,902 Corporate and eliminations - - 1,396 5,226 6,622 Consolidated $ 104,943 $ 99,531 $ 14,468 $ 5,226 $ 224,168 Inter-segment sales were immaterial for the periods presented and were eliminated in consolidation. Other Geographic Information At August 31, 2023, we had wholly owned direct offices that serve clients in Australia, New Zealand, China, Japan, the United Kingdom, Ireland, Germany, Switzerland, and Austria. Our long-lived assets, excluding intangible assets and goodwill, were held in the following locations for the periods indicated (in thousands): AUGUST 31, 2023 2022 United States/Canada $ 25,538 $ 24,179 China 1,504 1,375 Japan 1,024 983 United Kingdom 782 425 Germany, Switzerland, and Austria 223 102 Australia 100 155 $ 29,171 $ 27,219 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. RELATED PARTY TRANSACTIONS CoveyLink We previously acquired the assets of CoveyLink Worldwide, LLC (CoveyLink). CoveyLink conducts training and provides consulting based upon the book The Speed of Trust by Stephen M.R. Covey, who is the brother of one of our executive officers. Prior to the acquisition date, CoveyLink had granted us a non-exclusive license for content related to The Speed of Trust book and related training courses for which we paid CoveyLink specified royalties. As part of the CoveyLink acquisition, we signed an amended and restated license for intellectual property that granted us an exclusive, perpetual, worldwide, transferable, royalty-bearing license to use, reproduce, display, distribute, sell, prepare derivative works of, and perform the licensed material in any format or medium and through any market or distribution channel. We are required to pay Stephen M.R. Covey royalties for the use of certain intellectual property developed by him. The amount expensed for these royalties totaled $ 1.7 million, $ 1.8 million, and $ 1.5 million during the fiscal years ended August 31, 2023, 2022, and 2021. As part of the acquisition of CoveyLink, we signed an amended license agreement as well as a speaker services agreement. Based on the provisions of the speakers’ services agreement, we pay Stephen M.R. Covey a portion of the speaking revenues received for his presentations. We expensed $ 1.4 million, $ 0.8 million, and $ 0.6 million for payment on these presentations during the fiscal years ended August 31, 2023, 2022 and 2021. We had $ 0.3 million accrued for these royalties and speaking fees at each of August 31, 2023 and 2022, which were included as components of accrued liabilities on our consolidated balance sheets. Other Related Party Transactions We pay an executive officer of the Company a percentage of the royalty proceeds received from the sales of certain books authored by him in addition to his annual salary. During each of the fiscal years ended August 31, 2023, 2022, and 2021, we expensed $ 0.1 million for these royalties. We had $ 0.1 million and an insignificant amount accrued to this executive officer at August 31, 2023 and 2022, respectively, as payable under the terms of these arrangements. These amounts are included as components of accrued liabilities in our consolidated balance sheets. We pay a company owned by the brother of a member of our executive management team for the production of video segments used in our offerings. During the fiscal years ended August 31, 2023, 2022, and 2021 we paid $ 0.2 million, $ 0.3 million, and $ 0.8 million to this company for services provided. |
Nature Of Operations And Summ_2
Nature Of Operations And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Aug. 31, 2023 | |
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract] | |
Nature of Operations | Franklin Covey Co. (hereafter referred to as we, us, our, or the Company) is a global company specializing in organizational performance improvement. We help individuals and organizations achieve results that require a change in human behavior and our mission is to “enable greatness in people and organizations everywhere.” We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training and products based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader In Me , The Four Disciplines of Execution , and Multipliers , and proprietary content in the areas of Leadership, Execution, Productivity, Sales Performance, and Educational improvement. Our offerings are described in further detail at www.franklincovey.com and elsewhere in this report. Through our organizational research and curriculum development efforts, we seek to consistently create, develop, and introduce new services and products that help individuals and organizations achieve their own great purposes. |
Fiscal Year | Fiscal Year Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May. Unless otherwise noted, references to fiscal years apply to the 12 months ended August 31 of the specified year. |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, which consist of Franklin Development Corp., and our offices that serve clients in Japan, China, the United Kingdom, Ireland, Australia, New Zealand, Germany, Switzerland, and Austria. Intercompany balances and transactions are eliminated in consolidation. |
Pervasiveness Of Estimates | Pervasiveness of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, shareholders’ equity, revenues, and expenses. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Due to stock-based compensation adjustments and modifications resulting from uncertainties during the COVID-19 pandemic, we separately disclosed share-based compensation expense on our consolidated income statements in prior periods. During fiscal 2023 we returned to our normal presentation and reclassified share-based compensation expense as a component of selling, general, and administrative expense in the accompanying consolidated income statements. Refer to Note 13 for more information on our stock-based compensation instruments. |
Cash And Cash Equivalents | Cash and Cash Equivalents Some of our cash is deposited with financial institutions located throughout the United States of America and at banks in foreign countries where we operate subsidiary offices, and at times may exceed insured limits. We consider all highly liquid debt instruments with an original maturity date of three months or less to be cash equivalents. Of our $ 38.2 million in cash at August 31, 2023, $ 12.0 million was held outside the U.S. by our foreign subsidiaries. We routinely repatriate cash from our foreign subsidiaries and consider cash generated from foreign activities a key component of our overall liquidity position. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method. Elements of cost in inventories generally include raw materials and direct labor. Cash flows from the sale of inventory are included in cash flows provided by operating activities in our consolidated statements of cash flows. Our inventories are comprised primarily of training materials, books, training-related accessories, and consisted of the following (in thousands): AUGUST 31, 2023 2022 Finished goods $ 4,204 $ 3,519 Raw materials 9 8 $ 4,213 $ 3,527 Provision is made to reduce excess and obsolete inventories to their estimated net realizable value. In assessing the valuation of our inventories, we make judgments regarding future demand requirements and compare these estimates with current and committed inventory levels. Inventory requirements may change based on projected customer demand, training curriculum life-cycle changes, and other factors that could affect the valuation of our inventories. |
Other Current Assets | Other Current Assets Significant components of our other current assets were as follows (in thousands): AUGUST 31, 2023 2022 Deferred commissions $ 14,426 $ 12,598 Other current assets 1,812 1,969 $ 16,238 $ 14,567 We defer commission expense on subscription-based sales and recognize the commission expense with the recognition of the corresponding revenue. |
Property And Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation expense, which includes depreciation on our corporate campus that is accounted for as a financing obligation (Note 8), is calculated using the straight-line method over the lesser of the expected useful life of the asset or the contracted lease period. We generally use the following depreciable lives for our major classifications of property and equipment: Description Useful Lives Buildings 20 years Machinery and equipment 5 – 7 years Computer hardware and software 3 – 5 years Furniture, fixtures, and leasehold improvements 5 – 7 years Our property and equipment were comprised of the following (in thousands): AUGUST 31, 2023 2022 Land and improvements $ 1,312 $ 1,312 Buildings 30,038 30,038 Machinery and equipment 495 543 Computer hardware and software 28,948 26,030 Furniture, fixtures, and leasehold improvements 10,147 9,287 70,940 67,210 Less accumulated depreciation ( 60,901 ) ( 57,412 ) $ 10,039 $ 9,798 We expense costs for repairs and maintenance as incurred. Gains and losses resulting from the sale of property and equipment are recorded in income from operations. Depreciation of capitalized subscription portal costs is included in depreciation expense in the accompanying consolidated income statements and statements of comprehensive income. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived tangible assets and finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the anticipated future cash flows of the assets, we recognize an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires us to use estimates of future cash flows. If forecasts and assumptions used to support the realizability of our long-lived tangible and finite-lived intangible assets change in the future, significant impairment charges could result that would adversely affect our results of operations and financial condition. There were no long-lived asset impairment charges during any of the periods presented in this report. |
Indefinite-Lived Intangible Assets And Goodwill Impairment Testing | Indefinite-Lived Intangible Assets and Goodwill Impairment Testing Intangible assets that are deemed to have an indefinite life and acquired goodwill are not amortized, but rather are tested for impairment on an annual basis or more often if events or circumstances indicate that a potential impairment exists. The Covey trade name intangible asset has been deemed to have an indefinite life. This intangible asset is tested for impairment using qualitative factors or the present value of estimated royalties on trade name related revenues, which consist primarily of training seminars and work sessions, international licensee sales, and related products. Based on the fiscal 2023 evaluation of the Covey trade name, we believe the fair value of the Covey trade name substantially exceeds its carrying value. No impairment charges were recorded against the Covey trade name during the periods presented in this report. Goodwill is recorded when the purchase price for a business acquisition exceeds the estimated fair value of the net tangible and identified intangible assets acquired. We test goodwill for impairment each year on August 31 or upon the occurrence of events or changes in circumstances which indicate that goodwill may be impaired. Goodwill is assigned to our reporting units, which are our operating segments, where discrete financial information is available that is regularly reviewed by management to evaluate segment performance. During the annual impairment testing process, we have the option to first perform a qualitative assessment (commonly referred to as Step Zero) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment where we estimate the fair value of each reporting unit using both an income and market approach. At August 31, 2023, we completed a Step Zero assessment and concluded there were no indicators of impairment. Refer to Note 5, Intangible Assets and Goodwill for further information on our goodwill. When we perform a quantitative analysis to assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the difference. The estimated fair value of each reporting unit is calculated using a combination of the income approach (discounted cash flows) and the market approach (using market multiples derived from a set of companies with comparable market characteristics). The value estimated using a discounted cash flow model is weighted against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our internal plan and assume a terminal growth rate thereafter. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable and constitute Level 3 fair value measures. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable, but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. |
Capitalized Curriculum Development Costs | Capitalized Curriculum Development Costs During the normal course of business, we develop training courses and related materials that we sell to our clients. Capitalized curriculum development costs include certain expenditures to develop course materials such as video segments, course manuals, and other related materials. Our capitalized curriculum development spending in fiscal 2023, which totaled $ 9.0 million, was primarily to create new and refreshed offerings and content for the AAP and new offerings for our Education practice. Our capitalized curriculum spending increased in fiscal 2023 primarily due to less-than-expected spending in fiscal 2022 and fiscal 2021 as several development projects were delayed or suspended in the wake of the pandemic. Curriculum costs are capitalized when there is a major revision to an existing course that requires a significant re-write of the course materials, or a significant investment in new curriculum. Costs incurred to maintain existing offerings are expensed when incurred. In addition, development costs incurred in the research and development of new offerings and software products to be sold, leased, or otherwise marketed are expensed as incurred until economic and technological feasibility have been established. Capitalized development costs are amortized over three - to five-year useful lives, which are based on numerous factors, including expected cycles of major changes to our content. Capitalized curriculum development costs are reported as a component of other long-term assets in our consolidated balance sheets and totaled $ 10.9 million and $ 5.0 million at August 31, 2023 and 2022. Amortization of capitalized curriculum development costs is reported as a component of cost of sales in the accompanying consolidated income statements and statements of comprehensive income. |
Accrued Liabilities | Accrued Liabilities Significant components of our accrued liabilities were as follows (in thousands): AUGUST 31, 2023 2022 Accrued compensation $ 17,974 $ 20,608 Other accrued liabilities 10,278 13,597 $ 28,252 $ 34,205 |
Contingent Consideration Payments From Business Acquisitions | Contingent Consideration Payments from Business Acquisitions Business acquisitions may include contingent consideration payments based on various future financial measures related to the acquired entity. Contingent consideration is required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial projections of the acquired company and estimated probabilities of achievement. Based on updated estimates and projections, the contingent consideration liabilities are adjusted at each reporting date to their estimated fair value. Changes in fair value subsequent to the acquisition date are reported in selling, general, and administrative expense in our consolidated income statements and statements of comprehensive income and may have a material impact on our operating results. Variations in the fair value of contingent consideration liabilities may result from changes in discount periods or rates, changes in the timing and amount of earnings estimates, and changes in probability assumptions with respect to the likelihood of achieving various payment criteria. |
Foreign Currency Translation And Transactions | Foreign Currency Translation and Transactions The functional currencies of our foreign operations are the reported local currencies. Translation adjustments result from translating our foreign subsidiaries’ financial statements into United States dollars. The balance sheet accounts of our foreign subsidiaries are translated into United States dollars using the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated using average exchange rates for each month during the fiscal year. The resulting translation differences are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction losses totaled $ 0.1 million, $ 0.5 million, and $ 0.1 million for the fiscal years ended August 31, 2023, 2022, and 2021, respectively, and are included as a component of selling, general, and administrative expenses in our consolidated income statements and statements of comprehensive income. |
Revenue Recognition | Revenue Recognition We account for revenue in accordance with Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . For further information on revenue recognition, refer to Note 2, Revenue Recognition . Revenue is recognized as the net amount to be received after deducting estimated amounts for discounts and product returns. |
Stock-Based Compensation | Stock-Based Compensation We record the compensation expense for all stock-based payments, including grants of stock options and the compensatory elements of our employee stock purchase plan, in our consolidated income statements and statements of comprehensive income based upon their fair values over the requisite service period. For more information on our stock-based compensation plans, refer to Note 13. |
Shipping And Handling Fees And Costs | Shipping and Handling Fees and Costs All shipping and handling fees billed to customers are recorded as a component of net sales. All costs incurred related to the shipping and handling of products are recorded in cost of sales. |
Advertising Costs | Advertising Costs Costs for advertising are expensed as incurred. Advertising costs included in selling, general, and administrative expenses totaled $ 4.5 million, $ 4.8 million, and $ 4.0 million for the fiscal years ended August 31, 2023, 2022, and 2021. |
Income Taxes | Income Taxes Our income tax provision has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The income tax provision represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred income taxes result from differences between the financial and tax bases of our assets and liabilities and are adjusted for tax rates and tax laws when changes are enacted. A valuation allowance is provided against deferred income tax assets when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. Interest and penalties related to uncertain tax positions are recognized as components of income tax benefit or expense in our consolidated income statements and statements of comprehensive income. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We provide for income taxes, net of applicable foreign tax credits, on temporary differences in our investment in foreign subsidiaries, which consist primarily of unrepatriated earnings. |
Comprehensive Income | Comprehensive Income Comprehensive income includes changes to equity accounts that were not the result of transactions with shareholders. Comprehensive income is comprised of net income and other comprehensive income and loss items. Our other comprehensive income and losses generally consist of changes in the cumulative foreign currency translation adjustment, net of tax. |
Nature Of Operations And Summ_3
Nature Of Operations And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract] | |
Components Of Inventories | AUGUST 31, 2023 2022 Finished goods $ 4,204 $ 3,519 Raw materials 9 8 $ 4,213 $ 3,527 |
Components Of Other Current Assets | AUGUST 31, 2023 2022 Deferred commissions $ 14,426 $ 12,598 Other current assets 1,812 1,969 $ 16,238 $ 14,567 |
Useful Life Of Property And Equipment | Description Useful Lives Buildings 20 years Machinery and equipment 5 – 7 years Computer hardware and software 3 – 5 years Furniture, fixtures, and leasehold improvements 5 – 7 years |
Property And Equipment | AUGUST 31, 2023 2022 Land and improvements $ 1,312 $ 1,312 Buildings 30,038 30,038 Machinery and equipment 495 543 Computer hardware and software 28,948 26,030 Furniture, fixtures, and leasehold improvements 10,147 9,287 70,940 67,210 Less accumulated depreciation ( 60,901 ) ( 57,412 ) $ 10,039 $ 9,798 |
Components Of Accrued Liabilities | AUGUST 31, 2023 2022 Accrued compensation $ 17,974 $ 20,608 Other accrued liabilities 10,278 13,597 $ 28,252 $ 34,205 |
Acquisition of Strive Talent,_2
Acquisition of Strive Talent, Inc. (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Acquisition of Strive Talent, Inc. [Abstract] | |
Schedule Of Total Purchase Price | Cash paid at closing $ 10,554 Notes payable 3,766 Total purchase price $ 14,320 |
Schedule Of Assets Acquired And Liabilities Assumed | Cash acquired $ 345 Accounts receivable 154 Prepaid and other current assets 56 Property and equipment 13 Intangible assets 7,976 Goodwill 7,000 Assets acquired 15,544 Deferred revenue ( 52 ) Accrued liabilities ( 135 ) Deferred income tax liability ( 1,037 ) Notes payable, current portion ( 835 ) Notes payable, less current portion ( 2,931 ) Liabilities assumed ( 4,990 ) $ 10,554 |
Schedule Of Assets Acquired Amortized Over Weighted Average Life | Weighted Average Description Amount Life Non-compete agreements $ 171 2 years Content 389 5 years Customer relationships 764 3 years Tradename 889 5 years Internally developed software 5,763 8 years $ 7,976 7 years |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Accounts Receivable [Abstract] | |
Activity In Allowance For Doubtful Accounts | YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 4,492 $ 4,643 $ 4,159 Charged to costs and expenses ( 66 ) 306 1,553 Deductions ( 636 ) ( 457 ) ( 1,069 ) Ending balance $ 3,790 $ 4,492 $ 4,643 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible Assets | Gross Carrying Accumulated Net Carrying AUGUST 31, 2023 Amount Amortization Amount Finite-lived intangible assets: Acquired content $ 49,802 $ ( 43,910 ) $ 5,892 License rights 31,758 ( 25,461 ) 6,297 Customer lists 15,982 ( 15,272 ) 710 Acquired technology 7,282 ( 3,200 ) 4,082 Trade names 1,883 ( 1,408 ) 475 Non-compete agreements and other 930 ( 875 ) 55 107,637 ( 90,126 ) 17,511 Indefinite-lived intangible asset: Covey trade name 23,000 - 23,000 $ 130,637 $ ( 90,126 ) $ 40,511 AUGUST 31, 2022 Finite-lived intangible assets: Acquired content $ 49,964 $ ( 42,501 ) $ 7,463 License rights 32,077 ( 24,401 ) 7,676 Customer lists 16,140 ( 15,028 ) 1,112 Acquired technology 7,282 ( 2,479 ) 4,803 Trade names 1,883 ( 1,231 ) 652 Non-compete agreements and other 930 ( 803 ) 127 108,276 ( 86,443 ) 21,833 Indefinite-lived intangible asset: Covey trade name 23,000 - 23,000 $ 131,276 $ ( 86,443 ) $ 44,833 |
Range Of Remaining Estimated Useful Lives And Weighted-Average Amortization | Category of Intangible Asset Range of Remaining Estimated Useful Lives Weighted Average Original Amortization Period Acquired content 3 to 4 years 24 years License rights 4 to 6 years 26 years Customer lists 1 to 4 years 11 years Acquired technology 6 years 6 years Trade names 3 years 5 years Non-compete agreements and other 4 to 6 years 3 years |
Amortization Expense For Intangible Assets Over The Next Five Years | YEAR ENDING AUGUST 31, 2024 $ 4,200 2025 4,030 2026 3,945 2027 3,110 2028 1,169 |
Consolidated Goodwill | Direct offices $ 22,962 International licensees 5,928 Education practice 2,330 $ 31,220 |
Secured Credit Agreement (Table
Secured Credit Agreement (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Secured Credit Agreement [Abstract] | |
Ratio Of Funded Debt To Adjusted EBITDA | Leverage Ratio Interest Rate Less than 1.00 SOFR plus 1.50 % Between 1.00 and 2.00 SOFR plus 1.75 % Between 2.01 and 2.50 SOFR plus 2.25 % Greater than 2.51 SOFR plus 2.75 % |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes Payable [Abstract] | |
Balances And Classification Of Notes Payable | Current Portion of Notes Payable Notes Payable, Less Current Portion August 31, August 31, August 31, August 31, Description 2023 2022 2023 2022 Term loan payable $ 5,000 $ 5,000 $ - $ 5,000 Strive acquisition note payable 835 835 1,535 2,268 $ 5,835 $ 5,835 $ 1,535 $ 7,268 |
Future Principal Payments By Fiscal Year | YEAR ENDING Term Loan Strive Note AUGUST 31, Payable Payable Total 2024 $ 5,000 $ 835 $ 5,835 2025 - 835 835 2026 - 835 835 2027 - - - $ 5,000 $ 2,505 $ 7,505 |
Financing Obligation (Tables)
Financing Obligation (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Financing Obligation [Abstract] | |
Financing Obligation | AUGUST 31, 2023 2022 Financing obligation payable in monthly installments of $ 335 at August 31, 2023, including principal and interest, with two percent annual increases (imputed interest at 7.7 %), through June 2025 $ 7,962 $ 11,161 Less current portion ( 3,538 ) ( 3,199 ) Total financing obligation, less current portion $ 4,424 $ 7,962 |
Future Principal Maturities | YEAR ENDING AUGUST 31, 2024 $ 3,538 2025 4,424 Thereafter - $ 7,962 |
Future Minimum Payments Under The Financing Obligation | YEAR ENDING AUGUST 31, 2024 $ 4,031 2025 3,301 Thereafter - Total future minimum financing obligation payments 7,332 Less interest ( 682 ) Present value of future minimum financing obligation payments $ 6,650 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Assets And Liabilities Related To Operating Leases | Balance Sheet Caption Amount Assets: Operating lease right of use assets Other long-term assets $ 812 Liabilities: Current: Operating lease liabilities Accrued liabilities 579 Long-Term: Operating lease liabilities Other long-term liabilities 233 $ 812 Weighted Average Remaining Lease Term: Operating leases (years) 1.6 Weighted Average Discount Rate: Operating leases 5.0 % |
Future Minimum Lease Payments Under Operating Leases | YEAR ENDING AUGUST 31, 2024 $ 607 2025 179 2026 38 2027 22 2028 7 Thereafter - Total operating lease payments 853 Less imputed interest ( 41 ) Present value of operating lease liabilities $ 812 |
Future Minimum Lease Payments From Sublease | YEAR ENDING AUGUST 31, 2024 $ 2,197 2025 1,814 2026 - Thereafter - $ 4,011 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Fair Value Of Financial Instruments [Abstract] | |
Schedule Of Contingent Consideration Liability | Change in AUGUST 31, 2022 Fair Value Payments 2023 Jhana contingent liability $ 729 $ 7 $ ( 736 ) $ - |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Stock-Based Compensation Plans [Abstract] | |
Total Cost Of Stock-Based Compensation | YEAR ENDED AUGUST 31, 2023 2022 2021 Performance awards $ 10,767 $ 6,133 $ 7,298 Strive acquisition compensation 739 1,196 354 Unvested stock awards 700 673 700 Compensation cost of the ESPP 269 239 205 Fully vested stock awards 45 45 60 $ 12,520 $ 8,286 $ 8,617 |
Restricted Stock Award Activity | Weighted- Average Grant- Date Fair Number of Value Per Shares Share Unvested stock awards at August 31, 2022 13,260 $ 49.78 Granted 15,882 45.34 Forfeited - - Vested ( 13,260 ) 49.78 Unvested stock awards at August 31, 2023 15,882 $ 45.34 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Taxes [Abstract] | |
Benefit (Provision) For Income Taxes From Continuing Operations | YEAR ENDED AUGUST 31, 2023 2022 2021 Current: Federal $ - $ - $ - State ( 791 ) ( 1,221 ) ( 286 ) Foreign ( 2,389 ) ( 2,202 ) ( 1,773 ) ( 3,180 ) ( 3,423 ) ( 2,059 ) Deferred: Federal 1,545 ( 9,339 ) 2,869 State 225 ( 889 ) 13 Foreign 216 24 24 Operating loss carryforward ( 7,201 ) 7,150 ( 3,058 ) Valuation allowance 372 2,845 10,546 Foreign tax credit carryforward reduction ( 65 ) ( 2 ) ( 787 ) ( 4,908 ) ( 211 ) 9,607 $ ( 8,088 ) $ ( 3,634 ) $ 7,548 |
Allocation Of Total Income Tax Provision (Benefit) | YEAR ENDED AUGUST 31, 2023 2022 2021 Net income $ ( 8,088 ) $ ( 3,634 ) $ 7,548 Other comprehensive income ( 80 ) 176 11 $ ( 8,168 ) $ ( 3,458 ) $ 7,559 |
Income From Continuing Operations Before Income Taxes | YEAR ENDED AUGUST 31, 2023 2022 2021 United States $ 23,574 $ 21,152 $ 6,834 Foreign 2,295 912 ( 759 ) $ 25,869 $ 22,064 $ 6,075 |
Differences Between Income Taxes At The Statutory Federal Income Tax Rate And Income Taxes From Continuing Operations | YEAR ENDED AUGUST 31, 2023 2022 2021 Federal statutory income tax rate ( 21.0 ) % ( 21.0 ) % ( 21.0 ) % State income taxes, net of federal effect ( 4.7 ) ( 3.9 ) ( 1.6 ) Valuation allowance 1.4 12.9 173.6 Foreign tax credit carryforward reduction ( 0.3 ) - ( 13.0 ) Executive stock options - - 7.7 Foreign jurisdictions tax differential ( 0.2 ) ( 1.1 ) ( 4.0 ) Tax differential on income subject to both U.S. and foreign taxes ( 1.4 ) ( 0.2 ) ( 0.7 ) Uncertain tax positions ( 0.9 ) ( 0.8 ) ( 3.0 ) Non-deductible executive compensation ( 3.6 ) ( 5.5 ) ( 5.8 ) Non-deductible meals and entertainment ( 0.7 ) ( 0.1 ) ( 0.2 ) Other stock-based compensation ( 0.4 ) 2.5 - Other 0.5 0.7 ( 7.8 ) ( 31.3 ) % ( 16.5 ) % 124.2 % |
Significant Components Of Deferred Tax Assets And Liabilities | AUGUST 31, 2023 2022 Deferred income tax assets: Net operating loss carryforward $ 6,505 $ 11,334 Foreign income tax credit carryforward 4,253 4,096 Stock-based compensation 4,222 2,503 Sale and financing of corporate headquarters 1,899 2,638 Deferred revenue 1,677 1,596 Bonus and other accruals 1,517 2,094 Capitalized development costs 1,236 - Inventory and bad debt reserves 1,094 1,533 Other 458 605 Total deferred income tax assets 22,861 26,399 Less: valuation allowance ( 1,313 ) ( 1,685 ) Net deferred income tax assets 21,548 24,714 Deferred income tax liabilities: Intangibles step-ups – indefinite lived ( 5,522 ) ( 5,478 ) Intangibles step-ups – finite lived ( 2,541 ) ( 3,186 ) Self-constructed tangible assets ( 5,476 ) ( 3,811 ) Intangible asset amortization ( 4,189 ) ( 3,851 ) Deferred commissions ( 3,598 ) ( 3,187 ) Unremitted earnings of foreign subsidiaries ( 521 ) ( 388 ) Property and equipment depreciation ( 80 ) ( 326 ) Total deferred income tax liabilities ( 21,927 ) ( 20,227 ) Net deferred income taxes $ ( 379 ) $ 4,487 |
Deferred Income Tax Amounts Recorded On The Consolidated Balance Sheets | AUGUST 31, 2023 2022 Long-term assets $ 1,661 $ 4,686 Long-term liabilities ( 2,040 ) ( 199 ) Net deferred income tax asset $ ( 379 ) $ 4,487 |
Summary of Operating Loss Carryforwards | Loss Carryforward Loss Loss Operating Loss Carryforward Expires Deductions Deductions Loss Carried for Year Ended August 31, Amount in Prior Years in Current Year Forward Acquired NOL - Jhana December 31, 2015 2034 $ 1,491 $ ( 1,428 ) $ ( 63 ) $ - December 31, 2016 2035 3,052 - ( 908 ) 2,144 July 15, 2017 2036 1,117 - - 1,117 5,660 ( 1,428 ) ( 971 ) 3,261 Acquired NOL - Strive December 31, 2018 No Expiration 947 ( 295 ) ( 652 ) - December 31, 2019 No Expiration 869 - ( 869 ) - December 31, 2020 No Expiration 1,133 - ( 160 ) 973 April 25, 2021 No Expiration 553 - - 553 3,502 ( 295 ) ( 1,681 ) 1,526 August 31, 2022 No Expiration 40,996 - ( 27,790 ) 13,206 $ 50,158 $ ( 1,723 ) $ ( 30,442 ) $ 17,993 |
Summary Of Tax Credit Carryforwards | Credit Generated in Credits Used Credits Credits Used Credits Fiscal Year Ended Credit Expires Credits in Prior Reduced in in Current Carried August 31, August 31, Generated Years Current Year Year Forward 2018 2028 $ 1,727 $ ( 965 ) $ ( 21 ) $ - $ 741 2019 2029 1,578 ( 234 ) - - 1,344 2020 2030 1,010 ( 147 ) ( 18 ) - 845 2022 2032 1,216 - ( 25 ) - 1,191 2023 2033 1,061 - - ( 929 ) 132 $ 6,592 $ ( 1,346 ) $ ( 64 ) $ ( 929 ) $ 4,253 |
Activity In Deferred Income Tax Asset Valuation Allowance | YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 1,685 $ 4,530 $ 15,076 Charged to costs and expenses 212 683 394 Deductions ( 584 ) ( 3,528 ) ( 10,940 ) Ending balance $ 1,313 $ 1,685 $ 4,530 |
Reconciliation Of The Beginning And Ending Amount Of Gross Unrecognized Tax Benefits | YEAR ENDED AUGUST 31, 2023 2022 2021 Beginning balance $ 1,597 $ 1,594 $ 1,640 Additions based on tax positions related to the current year 188 77 349 Additions for tax positions in prior years 290 207 79 Reductions for tax positions of prior years resulting from the lapse of applicable statute of limitations ( 186 ) - ( 188 ) Other reductions for tax positions of prior years ( 271 ) ( 281 ) ( 286 ) Ending balance $ 1,618 $ 1,597 $ 1,594 |
Tax Years That Remain Subject To Examinations For Major Tax Jurisdictions | 2016-2023 Australia, Canada, and Japan 2016 - 2023 China 2018 - 2023 Germany, Switzerland, and Austria 2019 - 2023 United Kingdom, Singapore 2019 - 2023 United States – state and local income tax 2020 - 2023 United States – federal income tax |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation Of Net Income Per Share | YEAR ENDED AUGUST 31, 2023 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 17,781 $ 18,430 $ 13,623 Denominator for basic and diluted earnings per share: Basic weighted average shares outstanding 13,640 14,147 14,090 Effect of dilutive securities: Stock-based compensation awards 659 408 53 Diluted weighted average shares outstanding 14,299 14,555 14,143 EPS Calculations: Net income per share: Basic $ 1.30 $ 1.30 $ 0.97 Diluted 1.24 1.27 0.96 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment Information [Abstract] | |
Schedule Of Segment Operations | Sales to Fiscal Year Ended External Adjusted August 31, 2023 Customers Gross Profit EBITDA Enterprise Division: Direct offices $ 194,021 $ 156,915 $ 44,198 International licensees 11,645 10,507 5,874 205,666 167,422 50,072 Education Division 69,736 44,418 7,426 Corporate and eliminations 5,119 1,650 ( 9,432 ) Consolidated $ 280,521 $ 213,490 $ 48,066 Fiscal Year Ended August 31, 2022 Enterprise Division: Direct offices $ 183,845 $ 148,051 $ 37,497 International licensees 10,551 9,382 4,964 194,396 157,433 42,461 Education Division 61,852 41,206 8,408 Corporate and eliminations 6,593 3,273 ( 8,672 ) Consolidated $ 262,841 $ 201,912 $ 42,197 Fiscal Year Ended August 31, 2021 Enterprise Division: Direct offices $ 159,608 $ 129,416 $ 27,948 International licensees 9,036 7,727 3,586 168,644 137,143 31,534 Education Division 48,902 32,771 4,818 Corporate and eliminations 6,622 2,988 ( 8,394 ) Consolidated $ 224,168 $ 172,902 $ 27,958 |
Reconciliation Of Adjusted EBITDA | YEAR ENDED AUGUST 31, 2023 2022 2021 Segment Adjusted EBITDA $ 57,498 $ 50,869 $ 36,352 Corporate expenses ( 9,432 ) ( 8,672 ) ( 8,394 ) Consolidated Adjusted EBITDA 48,066 42,197 27,958 Stock-based compensation ( 12,520 ) ( 8,286 ) ( 8,617 ) Increase in contingent consideration liabilities ( 7 ) ( 68 ) ( 193 ) Restructuring costs ( 565 ) - - Gain from insurance settlement - - 150 Government COVID assistance - - 299 Business acquisition costs - - ( 300 ) Depreciation ( 4,271 ) ( 4,903 ) ( 6,190 ) Amortization ( 4,342 ) ( 5,266 ) ( 5,006 ) Income from operations 26,361 23,674 8,101 Interest income 1,091 65 73 Interest expense ( 1,583 ) ( 1,675 ) ( 2,099 ) Income before income taxes 25,869 22,064 6,075 Benefit (provision) for income taxes ( 8,088 ) ( 3,634 ) 7,548 Net income $ 17,781 $ 18,430 $ 13,623 |
Schedule Of Disaggregation Revenue By Geographic Region | YEAR ENDED AUGUST 31, 2023 2022 2021 Americas $ 233,479 $ 218,863 $ 182,954 Asia Pacific 28,640 26,835 28,621 Europe/Middle East/Africa 18,402 17,143 12,593 $ 280,521 $ 262,841 $ 224,168 |
Schedule Of Revenue Disaggregate By Activities | Fiscal Year Ended Services and Leases and August 31, 2023 Products Subscriptions Royalties Other Consolidated Enterprise Division: Direct offices $ 93,700 $ 97,992 $ 2,329 $ - $ 194,021 International licensees 428 1,327 9,890 - 11,645 94,128 99,319 12,219 - 205,666 Education Division 26,803 39,662 3,271 - 69,736 Corporate and eliminations - - 1,250 3,869 5,119 Consolidated $ 120,931 $ 138,981 $ 16,740 $ 3,869 $ 280,521 Fiscal Year Ended August 31, 2022 Enterprise Division: Direct offices $ 93,324 $ 88,055 $ 2,466 $ - $ 183,845 International licensees 429 1,281 8,841 - 10,551 93,753 89,336 11,307 - 194,396 Education Division 25,134 34,037 2,681 - 61,852 Corporate and eliminations - - 1,194 5,399 6,593 Consolidated $ 118,887 $ 123,373 $ 15,182 $ 5,399 $ 262,841 Fiscal Year Ended August 31, 2021 Enterprise Division: Direct offices $ 84,111 $ 72,789 $ 2,708 $ - $ 159,608 International licensees 1,085 - 7,951 - 9,036 85,196 72,789 10,659 - 168,644 Education Division 19,747 26,742 2,413 - 48,902 Corporate and eliminations - - 1,396 5,226 6,622 Consolidated $ 104,943 $ 99,531 $ 14,468 $ 5,226 $ 224,168 |
Long-Lived Assets By Country | AUGUST 31, 2023 2022 United States/Canada $ 25,538 $ 24,179 China 1,504 1,375 Japan 1,024 983 United Kingdom 782 425 Germany, Switzerland, and Austria 223 102 Australia 100 155 $ 29,171 $ 27,219 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule Of Estimated Fair Values Of Assets Acquired, Liabilities Assumed, and Identifiable Intangible Assets | Cash acquired $ 345 Accounts receivable 154 Prepaid and other current assets 56 Property and equipment 13 Intangible assets 7,976 Goodwill 7,000 Assets acquired 15,544 Deferred revenue ( 52 ) Accrued liabilities ( 135 ) Deferred income tax liability ( 1,037 ) Notes payable, current portion ( 835 ) Notes payable, less current portion ( 2,931 ) Liabilities assumed ( 4,990 ) $ 10,554 |
Nature Of Operations And Summ_4
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 38,230,000 | $ 60,517,000 | |
Capitalized curriculum development spending | 9,000,000 | ||
Capitalized development costs | 10,900,000 | 5,000,000 | |
Foreign currency transaction gains (losses) | (100,000) | (500,000) | $ (100,000) |
Impairment of long-lived assets | 0 | 0 | |
Advertising costs | $ 4,500,000 | 4,800,000 | $ 4,000,000 |
Percent likelihood of being realized upon ultimate settlement | 50% | ||
Held Outside The US By Foreign Subsidiaries [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 12,000,000 | ||
Covey Trade Name [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill, impairment loss | $ 0 | $ 0 | |
Minimum [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized development costs, amortization period | 3 years | ||
Maximum [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized development costs, amortization period | 5 years |
Nature Of Operations And Summ_5
Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Inventories) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract] | ||
Finished goods | $ 4,204 | $ 3,519 |
Raw materials | 9 | 8 |
Inventories | $ 4,213 | $ 3,527 |
Nature Of Operations And Summ_6
Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Other Current Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Other current assets | $ 16,238 | $ 14,567 |
Deferred Commissions [Member] | ||
Other current assets | 14,426 | 12,598 |
Other Current Assets [Member] | ||
Other current assets | $ 1,812 | $ 1,969 |
Nature Of Operations And Summ_7
Nature Of Operations And Summary Of Significant Accounting Policies (Useful Life Of Property And Equipment) (Details) | Aug. 31, 2023 |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Computer Hardware And Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer Hardware And Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture, Fixtures, And Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture, Fixtures, And Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Nature Of Operations And Summ_8
Nature Of Operations And Summary Of Significant Accounting Policies (Property And Equipment) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 70,940 | $ 67,210 |
Less accumulated depreciation | (60,901) | (57,412) |
Property and equipment | 10,039 | 9,798 |
Land And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,312 | 1,312 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,038 | 30,038 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 495 | 543 |
Computer Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,948 | 26,030 |
Furniture, Fixtures, And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,147 | $ 9,287 |
Nature Of Operations And Summ_9
Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract] | ||
Accrued compensation | $ 17,974 | $ 20,608 |
Other accrued liabilities | 10,278 | 13,597 |
Accrued liabilities | $ 28,252 | $ 34,205 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Deferred revenue | $ 111.2 | $ 102.4 |
Remaining performance obligations | 186.4 | |
Other Long-Term Liabilities [Member] | ||
Deferred revenue | $ 3.7 | 2.7 |
Minimum [Member] | ||
Receivables collection period | 30 days | |
Maximum [Member] | ||
Receivables collection period | 150 days | |
Direct Sales Commissions [Member] | ||
Capitalized contract cost | $ 15.3 | 13.8 |
Direct Sales Commissions [Member] | Other Current Assets [Member] | ||
Capitalized contract cost | 14.4 | 12.6 |
Direct Sales Commissions [Member] | Other Long-Term Liabilities [Member] | ||
Capitalized contract cost | 0.9 | 1.2 |
Obtain Revenue Contracts [Member] | ||
Capitalized contract cost | 23.5 | |
Selling, General, And Administrative Expense [Member] | ||
Capitalized contract cost, amortized | 22 | |
Subscription Offerings [Member] | ||
Deferred revenue | 99 | 88.1 |
Subscription [Member] | ||
Deferred revenue recognized | $ 139 | $ 123.1 |
Acquisition of Strive Talent,_3
Acquisition of Strive Talent, Inc. (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Apr. 26, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Contingent Consideration [Line Items] | |||||
Selling, general, and administrative | $ 178,516 | $ 168,069 | $ 153,605 | ||
Revenue | 280,521 | 262,841 | 224,168 | ||
Income (loss) from operations | $ 26,361 | $ 23,674 | 8,101 | ||
Strive [Member] | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Aggregate consideration | $ 14,320 | ||||
Purchase price paid in cash | 10,554 | ||||
Amount in escrow | 1,000 | ||||
Escrow term | 18 months | ||||
Payable in equal cash payments on the first five anniversaries | $ 4,200 | ||||
Accrues interest, percent | 3.60% | ||||
Payments to stockholders and option holders | $ 1,000 | ||||
Revenue | $ 1,300 | ||||
Income (loss) from operations | $ (1,100) | ||||
Acquisition costs | $ 300 | ||||
Strive [Member] | Maximum [Member] | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Aggregate consideration | 20,000 | ||||
Earned by the former principal owner | 4,200 | ||||
Additional contingent payments | $ 5,200 |
Acquisition of Strive Talent,_4
Acquisition of Strive Talent, Inc. (Schedule Of Total Purchase Price) (Details) - Strive [Member] $ in Thousands | Apr. 26, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash paid at closing | $ 10,554 |
Notes payable | 3,766 |
Total purchase price | $ 14,320 |
Acquisition of Strive Talent,_5
Acquisition of Strive Talent, Inc. (Schedule Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Apr. 26, 2021 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 31,220 | $ 31,220 | |
Strive [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Cash acquired | $ 345 | ||
Accounts receivable | 154 | ||
Prepaid expenses and other current assets | 56 | ||
Property and equipment | 13 | ||
Intangible assets | 7,976 | ||
Goodwill | 7,000 | ||
Assets acquired | 15,544 | ||
Deferred revenue | (52) | ||
Accrued liabilities | (135) | ||
Deferred income tax liability | (1,037) | ||
Notes payable, current portion | (835) | ||
Notes payable, less current portion | (2,931) | ||
Liabilities assumed | (4,990) | ||
Purchase price | $ 10,554 |
Acquisition of Strive Talent,_6
Acquisition of Strive Talent, Inc. (Schedule Of Assets Acquired Amortized Over Weighted Average Life) (Details) - Strive [Member] $ in Thousands | Apr. 26, 2021 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 7,976 |
Weighted Average Life | 7 years |
Non-compete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 171 |
Weighted Average Life | 2 years |
Content [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 389 |
Weighted Average Life | 5 years |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 764 |
Weighted Average Life | 3 years |
Tradename [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 889 |
Weighted Average Life | 5 years |
Internally Developed Software [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 5,763 |
Weighted Average Life | 8 years |
Accounts Receivables (Activity
Accounts Receivables (Activity In Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Accounts Receivable [Abstract] | |||
Beginning balance | $ 4,492 | $ 4,643 | $ 4,159 |
Charged to costs and expenses | (66) | 306 | 1,553 |
Deductions | (636) | (457) | (1,069) |
Ending balance | $ 3,790 | $ 4,492 | $ 4,643 |
Intangible Assets And Goodwil_2
Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Apr. 26, 2021 | |
Aggregate amortization expense from definite-lived intangible assets | $ 4,300 | $ 5,300 | $ 5,000 | |
Intangible assets | 40,511 | 44,833 | ||
Goodwill | $ 31,220 | $ 31,220 | ||
Strive [Member] | ||||
Goodwill | $ 7,000 | |||
Strive [Member] | Direct Office And International Licensee [Member] | ||||
Goodwill | $ 7,000 |
Intangible Assets And Goodwil_3
Intangible Assets And Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 107,637 | $ 108,276 |
Finite-lived intangible assets, accumulated amortization | (90,126) | (86,443) |
Finite-lived intangible assets, net carrying amount | 17,511 | 21,833 |
Intangible assets, gross carrying amount | 130,637 | 131,276 |
Intangible assets, accumulated amortization | (90,126) | (86,443) |
Intangible assets, net carrying amount | 40,511 | 44,833 |
Covey Trade Name [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Indefinite-lived intangible asset, gross carrying amount | 23,000 | 23,000 |
Intangible assets, net carrying amount | 23,000 | 23,000 |
Acquired Content [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 49,802 | 49,964 |
Finite-lived intangible assets, accumulated amortization | (43,910) | (42,501) |
Finite-lived intangible assets, net carrying amount | 5,892 | 7,463 |
License Rights [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 31,758 | 32,077 |
Finite-lived intangible assets, accumulated amortization | (25,461) | (24,401) |
Finite-lived intangible assets, net carrying amount | 6,297 | 7,676 |
Customer Lists [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 15,982 | 16,140 |
Finite-lived intangible assets, accumulated amortization | (15,272) | (15,028) |
Finite-lived intangible assets, net carrying amount | 710 | 1,112 |
Acquired Technology [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 7,282 | 7,282 |
Finite-lived intangible assets, accumulated amortization | (3,200) | (2,479) |
Finite-lived intangible assets, net carrying amount | 4,082 | 4,803 |
Tradename [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 1,883 | 1,883 |
Finite-lived intangible assets, accumulated amortization | (1,408) | (1,231) |
Finite-lived intangible assets, net carrying amount | 475 | 652 |
Non-Compete Agreements And Other [Member] | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 930 | 930 |
Finite-lived intangible assets, accumulated amortization | (875) | (803) |
Finite-lived intangible assets, net carrying amount | $ 55 | $ 127 |
Intangible Assets And Goodwil_4
Intangible Assets And Goodwill (Range Of Remaining Estimated Useful Lives And Weighted-Average Amortization) (Details) | 12 Months Ended |
Aug. 31, 2023 | |
License Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Original Amortization Period | 26 years |
Acquired Content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Original Amortization Period | 24 years |
Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Original Amortization Period | 11 years |
Acquired Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 6 years |
Weighted Average Original Amortization Period | 6 years |
Tradename [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 3 years |
Weighted Average Original Amortization Period | 5 years |
Non-Compete Agreements And Other [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Original Amortization Period | 3 years |
Minimum [Member] | License Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 4 years |
Minimum [Member] | Acquired Content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 3 years |
Minimum [Member] | Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 1 year |
Minimum [Member] | Non-Compete Agreements And Other [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 4 years |
Maximum [Member] | License Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 6 years |
Maximum [Member] | Acquired Content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 4 years |
Maximum [Member] | Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 4 years |
Maximum [Member] | Non-Compete Agreements And Other [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Range of Remaining Estimated Useful Lives | 6 years |
Intangible Assets And Goodwil_5
Intangible Assets And Goodwill (Amortization Expense For Intangible Assets Over The Next Five Years) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Intangible Assets And Goodwill [Abstract] | |
2024 | $ 4,200 |
2025 | 4,030 |
2026 | 3,945 |
2027 | 3,110 |
2028 | $ 1,169 |
Intangible Assets And Goodwil_6
Intangible Assets And Goodwill (Schedule Of Allocated Goodwill To Reportable Operating Segments) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Apr. 26, 2021 |
Goodwill [Line Items] | |||
Goodwill | $ 31,220 | $ 31,220 | |
Direct Offices [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 22,962 | 22,962 | |
International Licensees [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 5,928 | 5,928 | |
Education Practice [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 2,330 | $ 2,330 | |
Strive [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 7,000 |
Secured Credit Agreement (Narra
Secured Credit Agreement (Narrative) (Details) - The 2023 Credit Agreement [Member] - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Mar. 27, 2023 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 70,000,000 | ||
Maturity date | Mar. 27, 2028 | ||
Unused credit commitment fee | 0.20% | ||
Interest rate | 6.90% | ||
Interest rate on term loan | 4.20% | ||
Revolving Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 62,500,000 | ||
Line of credit | $ 0 | $ 0 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 7,500,000 | ||
Frequency of periodic payment | quarterly principal payments | ||
Quarterly principal payment amount | $ 1,250,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed Charge Coverage Ratio | 1.15 | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Leverage Ratio | 3 |
Secured Credit Agreement (Ratio
Secured Credit Agreement (Ratio Of Funded Debt To Adjusted EBITDA) (Details) | 12 Months Ended |
Aug. 31, 2023 | |
The 2023 Credit Agreement [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 3 |
Less than 1.00 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | SOFR plus 1.50% |
Less than 1.00 [Member] | The 2023 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Less than 1.00 [Member] | The 2023 Credit Agreement [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 1 |
Between 1.00 And 2.00 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | SOFR plus 1.75% |
Between 1.00 And 2.00 [Member] | The 2023 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Between 1.00 And 2.00 [Member] | The 2023 Credit Agreement [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 1 |
Between 1.00 And 2.00 [Member] | The 2023 Credit Agreement [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 2 |
Between 2.01 And 2.50 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | SOFR plus 2.25% |
Between 2.01 And 2.50 [Member] | The 2023 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Between 2.01 And 2.50 [Member] | The 2023 Credit Agreement [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 2.01 |
Between 2.01 And 2.50 [Member] | The 2023 Credit Agreement [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 2.50 |
Greater Than 2.51 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | SOFR plus 2.75% |
Greater Than 2.51 [Member] | The 2023 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Greater Than 2.51 [Member] | The 2023 Credit Agreement [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio | 2.51 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Term Notes [Member] | January, April, July, And October [Member] | |
Debt Instrument [Line Items] | |
Principal payment | $ 1,250 |
Strive [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 3.60% |
Strive [Member] | Strive Note [Member] | |
Debt Instrument [Line Items] | |
Principal payment | $ 800 |
Notes Payable (Balances And Cla
Notes Payable (Balances And Classification Of Notes Payable) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Debt Instrument [Line Items] | ||
Current Portion of Notes Payable | $ 5,835 | $ 5,835 |
Notes Payable, less Current Portion | 1,535 | 7,268 |
Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Current Portion of Notes Payable | 5,000 | 5,000 |
Notes Payable, less Current Portion | 5,000 | |
Strive Note [Member] | ||
Debt Instrument [Line Items] | ||
Current Portion of Notes Payable | 835 | 835 |
Notes Payable, less Current Portion | $ 1,535 | $ 2,268 |
Notes Payable (Future Principal
Notes Payable (Future Principal Payments By Fiscal Year) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 5,835 |
2025 | 835 |
2026 | 835 |
Total | 7,505 |
Term Notes [Member] | |
Debt Instrument [Line Items] | |
2024 | 5,000 |
Total | 5,000 |
Strive Note [Member] | |
Debt Instrument [Line Items] | |
2024 | 835 |
2025 | 835 |
2026 | 835 |
Total | $ 2,505 |
Financing Obligation (Narrative
Financing Obligation (Narrative) (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2023 USD ($) item | |
Financing Obligation [Abstract] | |
Term of master lease agreement | 20 years |
Number of renewal options | item | 6 |
Renewal term | 5 years |
Remaining lease term | 50 years |
Difference between the carrying value and the present value of the financing obligation | $ | $ 1.3 |
Financing Obligation (Financing
Financing Obligation (Financing Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Financing Obligation [Abstract] | ||
Financing obligation | $ 7,962 | $ 11,161 |
Less current portion | (3,538) | (3,199) |
Financing obligation, less current portion | 4,424 | $ 7,962 |
Monthly payment of financing obligation | $ 335 | |
Annual increase to base payment | 2% | |
Imputed interest | 7.70% | |
Expiration date | June 2025 |
Financing Obligation (Future Pr
Financing Obligation (Future Principal Maturities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Financing Obligation [Abstract] | ||
2024 | $ 3,538 | |
2025 | 4,424 | |
Thereafter | ||
Financing obligation | $ 7,962 | $ 11,161 |
Financing Obligation (Future Mi
Financing Obligation (Future Minimum Payments Under The Financing Obligation) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Financing Obligation [Abstract] | |
2024 | $ 4,031 |
2025 | 3,301 |
Thereafter | |
Total future minimum financing obligation payments | 7,332 |
Less interest | (682) |
Present value of future minimum financing obligation payments | $ 6,650 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Lease expense associated with operating leases | $ 1.2 | $ 1.5 | $ 1.6 |
Right-of-use operating lease assets obtained in exchange for operating lease liabilities | 0.6 | ||
Sublease revenue | $ 2.4 | $ 3.9 | $ 4 |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining operating lease term | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining operating lease term | 5 years | ||
Corporate Campus [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Cost basis | $ 37.1 | ||
Carrying value | $ 3 |
Leases (Assets And Liabilities
Leases (Assets And Liabilities Related To Operating Leases) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Assets: | |
Operating lease right of use assets | $ 812 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Liabilities: | |
Current: Operating lease liabilities | $ 579 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current |
Long-Term: Operating lease liabilities | $ 233 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Operating lease liabilities | $ 812 |
Weighted Average Remaining Lease Term: Operating leases (years) | 1 year 7 months 6 days |
Weighted Average Discount Rate: Operating leases | 5% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Operating Leases) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 607 |
2025 | 179 |
2026 | 38 |
2027 | 22 |
2028 | 7 |
Thereafter | |
Total operating lease payments | 853 |
Less imputed interest | (41) |
Present value of operating lease liabilities | $ 812 |
Leases (Future Minimum Lease _2
Leases (Future Minimum Lease Payments From Sublease) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Operating Leases [Abstract] | |
2024 | $ 2,197 |
2025 | 1,814 |
2026 | |
Thereafter | |
Total | $ 4,011 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 01, 2020 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
HPE outsourcing contract, fixed charge per month | $ 102 | |||
HPE outsourcing contract, expiration date | Sep. 30, 2023 | |||
HPE outsourcing contract, expense | $ 2,700 | $ 2,500 | $ 2,100 | |
Cost of sales | 67,031 | 60,929 | 51,266 | |
Purchase commitments | 3,300 | |||
Amount drawn on letters of credit | 0 | 0 | ||
Financial Standby Letter of Credit [Member] | ||||
Letter of credit | 10 | 10 | ||
Cargo And Freight [Member] | ||||
Cost of sales | $ 1,900 | $ 1,700 | $ 1,400 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 14, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Class of Stock [Line Items] | ||||
Shares of preferred stock authorized for issuance | 14,000,000 | |||
Preferred stock issued | 0 | 0 | ||
Preferred stock outstanding | 0 | 0 | ||
Shares withheld for tax | 17,639 | |||
Shares withheld for tax, fair value | $ 0.8 | |||
Stock repurchased during period, shares | 50,000,000 | 499,411 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares withheld for tax | 147,092 | |||
Shares withheld for tax, fair value | $ 3 | |||
Open Market Purchases [Member] | ||||
Class of Stock [Line Items] | ||||
Shares withheld for tax | 86,125 | |||
Shares withheld for tax, fair value | $ 3.5 | |||
Purchase of treasury shares | $ 34.7 | $ 20.3 | ||
Stock repurchased during period, shares | 867,873 | |||
Upon Approval of Purchase Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Purchase of treasury shares | $ 34.3 | |||
Stock repurchased during period, shares | 857,608 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 | Jul. 11, 2017 |
Jhana [Member] | |||
Contingent consideration | $ 0 | $ 729,000 | $ 7,200,000 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Schedule Of Contingent Consideration Liability) (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Change in fair value | $ 7,000 | $ 68,000 | $ 193,000 |
Jhana [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Balance at beginning | 729,000 | ||
Change in fair value | 7,000 | ||
Payments | (736,000) | ||
Balance at ending | $ 0 | $ 729,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 14, 2022 shares | Feb. 04, 2022 shares | Jan. 14, 2022 shares | Oct. 02, 2020 USD ($) shares | Oct. 18, 2019 item shares | Oct. 01, 2018 item shares | Nov. 30, 2023 shares | Aug. 31, 2023 USD ($) item shares | Aug. 31, 2022 USD ($) item shares | Aug. 31, 2021 USD ($) item shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock issued from treasury stock | shares | 114,214 | |||||||||
Shares withheld for tax | shares | 17,639 | |||||||||
Shares withheld for tax, fair value | $ 800 | |||||||||
Capitalized stock-based compensation expense | 0 | |||||||||
Compensation cost | $ 12,520 | $ 8,286 | $ 8,617 | |||||||
Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of shares which will vest | 33.33% | |||||||||
Number of tranches | item | 2 | |||||||||
Vesting period of awards | 3 years | |||||||||
Shares issued under terms of the award | shares | 40,009 | |||||||||
Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of tranches | item | 2 | |||||||||
Fiscal 2021 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of tranches | item | 2 | |||||||||
Fiscal 2021 Acquisition Of Strive Talent Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation cost | $ 1,500 | |||||||||
Fiscal 2021 Acquisition Of Strive Talent Plan [Member] | Bonus [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Service period | 18 months | |||||||||
Compensation | $ 1,000 | |||||||||
Compensation cost | 800 | |||||||||
Former Principal Owner [Member] | Fiscal 2021 Acquisition Of Strive Talent Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation | $ 4,200 | |||||||||
Trading days | 15 days | |||||||||
Shares required to be distributed within, days | 45 days | |||||||||
Common Stock [Member] | 2022 Omnibus Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved for payment of consideration | shares | 200,000 | |||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options exercised | shares | 218,750 | |||||||||
Shares withheld for tax | shares | 51,738 | |||||||||
Shares withheld for tax, fair value | $ 1,300 | |||||||||
Intrinsic value of the exercised options | 2,900 | |||||||||
Income tax benefit from exercise of the options | 700 | |||||||||
Income tax benefit upon exercise of the options | 500 | |||||||||
Unvested Stock Awards [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation expense | $ 200 | |||||||||
Whole-share grant per eligible director | $ 120 | |||||||||
Vesting period of awards | 1 year | |||||||||
Weighted-average vesting period for recognition | 4 months | |||||||||
Total recognized tax benefit from unvested stock awards | $ 200 | 200 | 200 | |||||||
Intrinsic value of unvested stock awards | 700 | |||||||||
Compensation cost | 700 | 673 | 700 | |||||||
Issuance of common stock from treasury | 300 | 200 | 400 | |||||||
Unvested Stock Awards [Member] | Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of shares awarded | $ 700 | $ 700 | $ 700 | |||||||
Shares issued under terms of the award | shares | 15,882 | 13,260 | 28,049 | |||||||
Time-Based Award [Member] | Fiscal 2020 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares authorized to be issued | shares | 23,701 | |||||||||
Time-Based Award [Member] | Fiscal 2019 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares authorized to be issued | shares | 34,605 | |||||||||
Performance Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Service period | 2 years | |||||||||
Increase Adjusted EBITDA vesting target | $ 2,000 | |||||||||
Unrecognized compensation expense | $ 11,100 | |||||||||
Number of individuals who qualified for award | item | 3 | 3 | 4 | |||||||
Compensation cost | $ 10,767 | $ 6,133 | $ 7,298 | |||||||
Performance Award [Member] | Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 100% | |||||||||
Vesting period of awards | 3 years | |||||||||
Shares issued under terms of the award | shares | 80,018 | |||||||||
Performance Award [Member] | 2022 Omnibus Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Authorized additional shares of common stock for issuance | shares | 1,000,000 | |||||||||
Shares available for future grants | shares | 594,000 | |||||||||
Performance Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of awards | 3 years | |||||||||
Performance Award [Member] | Fiscal 2021 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of awards | 3 years | |||||||||
Performance Award [Member] | Fiscal 2020 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Increase Adjusted EBITDA vesting target | $ 2,000 | |||||||||
Shares authorized to be issued | shares | 141,154 | |||||||||
Number of tranches | item | 3 | |||||||||
Life of awards | 3 years | |||||||||
Expiration date | Aug. 31, 2024 | |||||||||
Percent of shares plan participants are entitled to | 25% | |||||||||
Vesting period of awards | 3 years | |||||||||
Percent of performance-based objectives | 100% | |||||||||
Shares issued under terms of the award | shares | 70,577 | |||||||||
Performance Award [Member] | Fiscal 2019 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Service period | 2 years | |||||||||
Increase Adjusted EBITDA vesting target | $ 2,000 | |||||||||
Number of tranches | item | 3 | |||||||||
Life of awards | 3 years | |||||||||
Expiration date | Aug. 31, 2023 | |||||||||
Percent of shares plan participants are entitled to | 25% | |||||||||
Vesting period of awards | 3 years | |||||||||
ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Price of common stock as a percent of the average fair market value | 85% | |||||||||
Shares issued to employee stock purchase plan participants | shares | 40,141 | 36,960 | 51,581 | |||||||
Cost basis of shares issued to employee stock purchase plan participants | $ 700 | $ 600 | $ 800 | |||||||
Proceeds from ESPP participants | 1,500 | 1,300 | 1,100 | |||||||
Compensation cost | $ 269 | $ 239 | $ 205 | |||||||
ESPP [Member] | 2017 Employee Stock Purchase Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares remaining in employee stock purchase plan | shares | 733,000 | |||||||||
Tranche One and Two [Member] | Performance Award [Member] | Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares may be awarded | shares | 160,036 | |||||||||
Tranche One and Two [Member] | Performance Award [Member] | Minimum [Member] | Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 50% | |||||||||
Tranche One and Two [Member] | Performance Award [Member] | Maximum [Member] | Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 200% | |||||||||
Tranche One [Member] | Time-Based Award [Member] | Fiscal 2023, Long-Term Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 25% | |||||||||
Vesting period of awards | 3 years | |||||||||
Shares issued under terms of the award | shares | 26,682 | |||||||||
Tranche One [Member] | Time-Based Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of award shares vest | 25% | |||||||||
Shares issued under terms of the award | shares | 24,138 | |||||||||
Tranche One [Member] | Time-Based Award [Member] | Fiscal 2021 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of award shares vest | 25% | |||||||||
Shares issued under terms of the award | shares | 51,617 | |||||||||
Tranche Two and Three [Member] | Fiscal 2020 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of tranches | item | 2 | |||||||||
Tranche Two and Three [Member] | Performance Award [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance-based objectives | 100% | |||||||||
Shares issued under terms of the award | shares | 72,397 | |||||||||
Tranche Two and Three [Member] | Performance Award [Member] | Minimum [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 50% | |||||||||
Tranche Two and Three [Member] | Performance Award [Member] | Minimum [Member] | Fiscal 2020 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 50% | |||||||||
Tranche Two and Three [Member] | Performance Award [Member] | Maximum [Member] | Fiscal 2022 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 200% | |||||||||
Shares may be awarded | shares | 144,794 | |||||||||
Tranche Two and Three [Member] | Performance Award [Member] | Maximum [Member] | Fiscal 2020 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percent of performance award to be granted | 200% | |||||||||
Scenario, Forecast [Member] | Performance Award [Member] | Fiscal 2019 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares authorized to be issued | shares | 204,418 | |||||||||
Scenario, Forecast [Member] | Tranche One and Two [Member] | Performance Award [Member] | Fiscal 2021 Long Term Incentive Plan Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares issued under terms of the award | shares | 309,660 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | $ 12,520 | $ 8,286 | $ 8,617 |
Performance Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | 10,767 | 6,133 | 7,298 |
Strive Acquisition Compensation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | 739 | 1,196 | 354 |
Unvested Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | 700 | 673 | 700 |
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | 269 | 239 | 205 |
Fully Vested Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | $ 45 | $ 45 | $ 60 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Unvested Stock Award) (Details) - Unvested Stock Awards [Member] | 12 Months Ended |
Aug. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested stock awards, Number of Shares | shares | 13,260 |
Granted, Number of Shares | shares | 15,882 |
Forfeited, Number of Shares | shares | |
Vested, Number of Shares | shares | (13,260) |
Unvested stock awards, Number of Shares | shares | 15,882 |
Restricted stock awards, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 49.78 |
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 45.34 |
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares | |
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 49.78 |
Restricted stock awards, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 45.34 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Employee Benefit Plans [Abstract] | |||
Maximum percent of gross wages employees may contribute | 75% | ||
Matching contributions | $ 3 | $ 2.7 | $ 2.5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Taxes [Line Items] | |||||
Benefit (provision) for income taxes | $ (8,088) | $ (3,634) | $ 7,548 | ||
Income before income taxes | 25,869 | 22,064 | $ 6,075 | ||
Effective income tax benefit rate | 124.20% | ||||
Tax expense for non-deductible executive compensation | $ 900 | $ 1,200 | |||
Income tax rate | 31.30% | 16.50% | (124.20%) | ||
Effective tax rate | 21% | 21% | 21% | ||
Additional tax expense from increase in valuation allowance against deferred income tax assets | $ 11,300 | $ 11,300 | |||
GILTI tax benefit | $ 200 | 300 | $ 300 | ||
Operating loss carryforwards | 17,993 | ||||
Reduced the valuation allowance by | 372 | $ 2,845 | 10,546 | ||
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 1,300 | 1,300 | |||
Increase (decrease) in income tax expense due to interest and penalties related to uncertain tax positions | 100 | 100 | |||
Unrecognized tax benefits | 1,618 | 1,597 | 1,594 | $ 1,640 | |
Balance of interest and penalties related to uncertain tax positions | 400 | 300 | |||
Tax differential on income subject to both U.S. and foreign taxes | 400 | ||||
Stock-Based Compensation Deductions [Member] | |||||
Income Taxes [Line Items] | |||||
Benefit (provision) for income taxes | $ 600 | ||||
United States – State And Local Income Tax [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 1,200 | ||||
Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 800 |
Income Taxes (Benefit (Provisio
Income Taxes (Benefit (Provision) For Income Taxes From Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
Current, State | $ (791) | $ (1,221) | $ (286) |
Current, Foreign | (2,389) | (2,202) | (1,773) |
Current | (3,180) | (3,423) | (2,059) |
Deferred, Federal | 1,545 | (9,339) | 2,869 |
Deferred, State | 225 | (889) | 13 |
Deferred, Foreign | 216 | 24 | 24 |
Operating loss carryforward | (7,201) | 7,150 | (3,058) |
Valuation allowance | 372 | 2,845 | 10,546 |
Foreign tax credit carryforward reduction | (65) | (2) | (787) |
Deferred | (4,908) | (211) | 9,607 |
Provision (benefit) for income taxes from continuing operations | $ (8,088) | $ (3,634) | $ 7,548 |
Income Taxes (Allocation Of Tot
Income Taxes (Allocation Of Total Income Tax Provision(Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
Net income | $ (8,088) | $ (3,634) | $ 7,548 |
Other comprehensive income | (80) | 176 | 11 |
Total income tax provision (benefit) | $ (8,168) | $ (3,458) | $ 7,559 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
United States | $ 23,574 | $ 21,152 | $ 6,834 |
Foreign | 2,295 | 912 | (759) |
Income before income taxes | $ 25,869 | $ 22,064 | $ 6,075 |
Income Taxes (Differences Betwe
Income Taxes (Differences Between Income Taxes At The Statutory Federal Income Tax Rate And Income Taxes From Continuing Operations) (Details) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
Federal statutory income tax rate | (21.00%) | (21.00%) | (21.00%) |
State income taxes, net of federal effect | (4.70%) | (3.90%) | (1.60%) |
Valuation allowance | 1.40% | 12.90% | 173.60% |
Foreign tax credit carryforward reduction | (0.30%) | (13.00%) | |
Executive stock options | 7.70% | ||
Foreign jurisdictions tax differential | (0.20%) | (1.10%) | (4.00%) |
Tax differential on income subject to both U.S. and foreign taxes | (1.40%) | (0.20%) | (0.70%) |
Uncertain tax positions | (0.90%) | (0.80%) | (3.00%) |
Non-deductible executive compensation | (3.60%) | (5.50%) | (5.80%) |
Non-deductible meals and entertainment | (0.70%) | (0.10%) | (0.20%) |
Other stock-based compensation | (0.40%) | 2.50% | |
Other | 0.50% | 0.70% | (7.80%) |
Income tax rate | (31.30%) | (16.50%) | 124.20% |
Income Taxes (Significant Compo
Income Taxes (Significant Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Income Taxes [Abstract] | ||||
Net operating loss carryforward | $ 6,505 | $ 11,334 | ||
Foreign income tax credit carryforward | 4,253 | 4,096 | ||
Stock-based compensation | 4,222 | 2,503 | ||
Sale and financing of corporate headquarters | 1,899 | 2,638 | ||
Deferred revenue | 1,677 | 1,596 | ||
Bonus and other accruals | 1,517 | 2,094 | ||
Capitalized development costs | 1,236 | |||
Inventory and bad debt reserves | 1,094 | 1,533 | ||
Other | 458 | 605 | ||
Total deferred income tax assets | 22,861 | 26,399 | ||
Less: valuation allowance | (1,313) | (1,685) | $ (4,530) | $ (15,076) |
Net deferred income tax assets | 21,548 | 24,714 | ||
Intangibles step-ups - indefinite lived | (5,522) | (5,478) | ||
Intangibles step-ups - finite lived | (2,541) | (3,186) | ||
Self-constructed tangible assets | (5,476) | (3,811) | ||
Intangible asset amortization | (4,189) | (3,851) | ||
Deferred commissions | (3,598) | (3,187) | ||
Unremitted earnings of foreign subsidiaries | (521) | (388) | ||
Property and equipment depreciation | (80) | (326) | ||
Total deferred income tax liabilities | (21,927) | (20,227) | ||
Net deferred income tax asset | $ 4,487 | |||
Net deferred income tax liability | $ (379) |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Amounts Recorded On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Income Taxes [Abstract] | ||
Long-term assets | $ 1,661 | $ 4,686 |
Long-term liabilities | (2,040) | (199) |
Net deferred income tax asset | $ 4,487 | |
Net deferred income tax liability | $ (379) |
Income Taxes (Summary Of Operat
Income Taxes (Summary Of Operating Loss Carryforwards) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 50,158 |
Loss Deductions in Prior Years | (1,723) |
Loss Deductions in Current Year | (30,442) |
Operating Loss Carried Forward | 17,993 |
Acquired NOL - Jhana [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 5,660 |
Loss Deductions in Prior Years | (1,428) |
Loss Deductions in Current Year | (971) |
Operating Loss Carried Forward | 3,261 |
Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 3,502 |
Loss Deductions in Prior Years | (295) |
Loss Deductions in Current Year | (1,681) |
Operating Loss Carried Forward | $ 1,526 |
Tax Year 2015 [Member] | Acquired NOL - Jhana [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | Aug. 31, 2034 |
Amount | $ 1,491 |
Loss Deductions in Prior Years | (1,428) |
Loss Deductions in Current Year | (63) |
Operating Loss Carried Forward | |
Tax Year 2016 [Member] | Acquired NOL - Jhana [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | Aug. 31, 2035 |
Amount | $ 3,052 |
Loss Deductions in Prior Years | |
Loss Deductions in Current Year | (908) |
Operating Loss Carried Forward | $ 2,144 |
July 15, 2017 [Member] | Acquired NOL - Jhana [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | Aug. 31, 2036 |
Amount | $ 1,117 |
Loss Deductions in Prior Years | |
Operating Loss Carried Forward | $ 1,117 |
Tax Year 2018 [Member] | Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | No Expiration |
Amount | $ 947 |
Loss Deductions in Prior Years | (295) |
Loss Deductions in Current Year | (652) |
Operating Loss Carried Forward | |
Tax Year 2019 [Member] | Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | No Expiration |
Amount | $ 869 |
Loss Deductions in Prior Years | |
Loss Deductions in Current Year | (869) |
Operating Loss Carried Forward | |
Tax Year 2020 [Member] | Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | No Expiration |
Amount | $ 1,133 |
Loss Deductions in Prior Years | |
Loss Deductions in Current Year | (160) |
Operating Loss Carried Forward | $ 973 |
April 25, 2021 [Member] | Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | No Expiration |
Amount | $ 553 |
Loss Deductions in Prior Years | |
Operating Loss Carried Forward | $ 553 |
August 31, 2022 [Member] | Acquired NOL - Strive [Member] | |
Operating Loss Carryforwards [Line Items] | |
Loss Carryforward Expires | No Expiration |
Amount | $ 40,996 |
Loss Deductions in Prior Years | |
Loss Deductions in Current Year | (27,790) |
Operating Loss Carried Forward | $ 13,206 |
Income Taxes (Summary Of Tax Cr
Income Taxes (Summary Of Tax Credit Carryforwards) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Tax Credit Carryforward [Line Items] | |
Credits Generated | $ 6,592 |
Credits Used in Prior Years | (1,346) |
Credits Reduced in Current Year | (64) |
Credits Used in Current Year | (929) |
Credits Carried Forward | $ 4,253 |
Tax Year 2018 [Member] | |
Tax Credit Carryforward [Line Items] | |
Credit Generated in Fiscal Year Ended | Aug. 31, 2018 |
Credit Expires | Aug. 31, 2028 |
Credits Generated | $ 1,727 |
Credits Used in Prior Years | (965) |
Credits Reduced in Current Year | (21) |
Credits Used in Current Year | |
Credits Carried Forward | $ 741 |
Tax Year 2019 [Member] | |
Tax Credit Carryforward [Line Items] | |
Credit Generated in Fiscal Year Ended | Aug. 31, 2019 |
Credit Expires | Aug. 31, 2029 |
Credits Generated | $ 1,578 |
Credits Used in Prior Years | (234) |
Credits Reduced in Current Year | |
Credits Used in Current Year | |
Credits Carried Forward | $ 1,344 |
Tax Year 2020 [Member] | |
Tax Credit Carryforward [Line Items] | |
Credit Generated in Fiscal Year Ended | Aug. 31, 2020 |
Credit Expires | Aug. 31, 2030 |
Credits Generated | $ 1,010 |
Credits Used in Prior Years | (147) |
Credits Reduced in Current Year | (18) |
Credits Used in Current Year | |
Credits Carried Forward | $ 845 |
Tax Year 2022 [Member] | |
Tax Credit Carryforward [Line Items] | |
Credit Generated in Fiscal Year Ended | Aug. 31, 2022 |
Credit Expires | Aug. 31, 2032 |
Credits Generated | $ 1,216 |
Credits Used in Prior Years | |
Credits Reduced in Current Year | (25) |
Credits Used in Current Year | |
Credits Carried Forward | $ 1,191 |
Tax Year 2023 [Member] | |
Tax Credit Carryforward [Line Items] | |
Credit Generated in Fiscal Year Ended | Aug. 31, 2023 |
Credit Expires | Aug. 31, 2033 |
Credits Generated | $ 1,061 |
Credits Used in Prior Years | |
Credits Reduced in Current Year | |
Credits Used in Current Year | (929) |
Credits Carried Forward | $ 132 |
Income Taxes (Activity In Defer
Income Taxes (Activity In Deferred Income Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
Beginning balance | $ 1,685 | $ 4,530 | $ 15,076 |
Charged to costs and expenses | 212 | 683 | 394 |
Deductions | (584) | (3,528) | (10,940) |
Ending balance | $ 1,313 | $ 1,685 | $ 4,530 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | |||
Beginning balance | $ 1,597 | $ 1,594 | $ 1,640 |
Additions based on tax positions related to the current year | 188 | 77 | 349 |
Additions for tax positions in prior years | 290 | 207 | 79 |
Reductions for tax positions of prior years resulting from the lapse of applicable statute of limitations | (186) | (188) | |
Other reductions for tax positions of prior years | (271) | (281) | (286) |
Ending balance | $ 1,618 | $ 1,597 | $ 1,594 |
Income Taxes (Tax Years That Re
Income Taxes (Tax Years That Remain Subject To Examinations For Major Tax Jurisdictions) (Details) | 12 Months Ended |
Aug. 31, 2023 | |
Australia, Canada, And Japan [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | |
Australia, Canada, And Japan [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | |
Germany, Switzerland, And Austria [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2018 |
Germany, Switzerland, And Austria [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2023 |
China [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2016 |
China [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2023 |
United Kingdom And Singapore [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2019 |
United Kingdom And Singapore [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2023 |
United States – State And Local Income Tax [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2019 |
United States – State And Local Income Tax [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2023 |
United States – Federal Income Tax [Member] | Minimum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2020 |
United States – Federal Income Tax [Member] | Maximum [Member] | |
Income Taxes [Line Items] | |
Tax years that remain subject to examinations | 2023 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Numerator for basic and diluted income per share: | |||
Net income | $ 17,781 | $ 18,430 | $ 13,623 |
Denominator for basic and diluted income per share: | |||
Basic weighted average shares outstanding | 13,640 | 14,147 | 14,090 |
Effect of dilutive securities: | |||
Stock-based compensation awards | 659 | 408 | 53 |
Diluted weighted average shares outstanding | 14,299 | 14,555 | 14,143 |
EPS Calculations: | |||
Net income per share: Basic | $ 1.30 | $ 1.30 | $ 0.97 |
Net income per share: Diluted | $ 1.24 | $ 1.27 | $ 0.96 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Aug. 31, 2023 segment | |
Segment Information [Abstract] | |
Number of operating reportable segments | 3 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Sales to External Customers | $ 280,521 | $ 262,841 | $ 224,168 |
Gross Profit | 213,490 | 201,912 | 172,902 |
Adjusted EBITDA | 48,066 | 42,197 | 27,958 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 57,498 | 50,869 | 36,352 |
Operating Segments [Member] | Enterprise Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to External Customers | 205,666 | 194,396 | 168,644 |
Gross Profit | 167,422 | 157,433 | 137,143 |
Adjusted EBITDA | 50,072 | 42,461 | 31,534 |
Operating Segments [Member] | Education Practice [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to External Customers | 69,736 | 61,852 | 48,902 |
Gross Profit | 44,418 | 41,206 | 32,771 |
Adjusted EBITDA | 7,426 | 8,408 | 4,818 |
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to External Customers | 194,021 | 183,845 | 159,608 |
Gross Profit | 156,915 | 148,051 | 129,416 |
Adjusted EBITDA | 44,198 | 37,497 | 27,948 |
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to External Customers | 11,645 | 10,551 | 9,036 |
Gross Profit | 10,507 | 9,382 | 7,727 |
Adjusted EBITDA | 5,874 | 4,964 | 3,586 |
Corporate And Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to External Customers | 5,119 | 6,593 | 6,622 |
Gross Profit | 1,650 | 3,273 | 2,988 |
Adjusted EBITDA | $ (9,432) | $ (8,672) | $ (8,394) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Consolidated Adjusted EBITDA | $ 48,066 | $ 42,197 | $ 27,958 |
Stock-based compensation | (12,520) | (8,286) | (8,617) |
Increase in contingent consideration liabilities | (7) | (68) | (193) |
Restructuring costs | (565) | ||
Gain from insurance settlement | 150 | ||
Government COVID-19 assistance | 299 | ||
Business acquisition costs | (300) | ||
Depreciation | (4,271) | (4,903) | (6,190) |
Amortization | (4,342) | (5,266) | (5,006) |
Income from operations | 26,361 | 23,674 | 8,101 |
Interest income | 1,091 | 65 | 73 |
Interest expense | (1,583) | (1,675) | (2,099) |
Income before income taxes | 25,869 | 22,064 | 6,075 |
Benefit (provision) for income taxes | (8,088) | (3,634) | 7,548 |
Net income | 17,781 | 18,430 | 13,623 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated Adjusted EBITDA | 57,498 | 50,869 | 36,352 |
Corporate And Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated Adjusted EBITDA | $ (9,432) | $ (8,672) | $ (8,394) |
Segment Information (Schedule_2
Segment Information (Schedule Of Revenue Disaggregated By Geographic Region) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 280,521 | $ 262,841 | $ 224,168 |
Americas [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 233,479 | 218,863 | 182,954 |
Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 28,640 | 26,835 | 28,621 |
Europe/Middle East/Africa [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 18,402 | $ 17,143 | $ 12,593 |
Segment Information (Schedule_3
Segment Information (Schedule Of Revenue Disaggregated By Type Of Service) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 280,521 | $ 262,841 | $ 224,168 |
Services And Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 120,931 | 118,887 | 104,943 |
Subscriptions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 138,981 | 123,373 | 99,531 |
Royalties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 16,740 | 15,182 | 14,468 |
Leases And Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,869 | 5,399 | 5,226 |
Operating Segments [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 205,666 | 194,396 | 168,644 |
Operating Segments [Member] | Education Practice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 69,736 | 61,852 | 48,902 |
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 194,021 | 183,845 | 159,608 |
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11,645 | 10,551 | 9,036 |
Operating Segments [Member] | Services And Products [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 94,128 | 93,753 | 85,196 |
Operating Segments [Member] | Services And Products [Member] | Education Practice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,803 | 25,134 | 19,747 |
Operating Segments [Member] | Services And Products [Member] | Direct Offices [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 93,700 | 93,324 | 84,111 |
Operating Segments [Member] | Services And Products [Member] | International Licensees [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 428 | 429 | 1,085 |
Operating Segments [Member] | Subscriptions [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 99,319 | 89,336 | 72,789 |
Operating Segments [Member] | Subscriptions [Member] | Education Practice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 39,662 | 34,037 | 26,742 |
Operating Segments [Member] | Subscriptions [Member] | Direct Offices [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 97,992 | 88,055 | 72,789 |
Operating Segments [Member] | Subscriptions [Member] | International Licensees [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,327 | 1,281 | |
Operating Segments [Member] | Royalties [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 12,219 | 11,307 | 10,659 |
Operating Segments [Member] | Royalties [Member] | Education Practice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,271 | 2,681 | 2,413 |
Operating Segments [Member] | Royalties [Member] | Direct Offices [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,329 | 2,466 | 2,708 |
Operating Segments [Member] | Royalties [Member] | International Licensees [Member] | Enterprise Division [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,890 | 8,841 | 7,951 |
Corporate And Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,119 | 6,593 | 6,622 |
Corporate And Eliminations [Member] | Royalties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,250 | 1,194 | 1,396 |
Corporate And Eliminations [Member] | Leases And Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,869 | $ 5,399 | $ 5,226 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 29,171 | $ 27,219 |
United States/Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 25,538 | 24,179 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,504 | 1,375 |
Japan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,024 | 983 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 782 | 425 |
Germany, Switzerland, And Austria [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 223 | 102 |
Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 100 | $ 155 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Sales to External Customers | $ 280,521 | $ 262,841 | $ 224,168 |
Stephen M.R. Covey [Member] | Intellectual Property [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty payments | 1,700 | 1,800 | 1,500 |
Son Of The Former Vice-Chairman Of The Board Of Directors [Member] | Speaking Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty payments | 1,400 | 800 | 600 |
Accrued royalties payable | 300 | ||
Son Of The Former Vice-Chairman Of The Board Of Directors [Member] | Sales Of Books [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty payments | 100 | 100 | 100 |
Accrued royalties payable | 100 | 100 | |
Brother Of Member Of Executive Management Team [Member] | |||
Related Party Transaction [Line Items] | |||
Payable to FCOP | $ 200 | $ 300 | $ 800 |