Tourlite Capital Management, an investment management firm, released its first quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class gained 1.0% for the first quarter of 2023. The fund has returned 6.1% since inception in April 2022, versus the -7.8% return of the S&P 500 and the -11.6% of the Russell 2000 for the same period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Tourlite Capital Management mentioned Franklin Covey Co. (NYSE:FC) and explained its insights for the company. Founded in 1997, Franklin Covey Co. (NYSE:FC) is a Salt Lake City, Utah-based coaching company with a $497.1 million market capitalization. Franklin Covey Co. (NYSE:FC) delivered a -24.91% return since the beginning of the year, while its 12-month returns are down by -13.31%. The stock closed at $35.12 per share on June 23, 2023.
Here is what Tourlite Capital Management has to say about Franklin Covey Co. (NYSE:FC) in its Q1 2023 investor letter:
“We are long Franklin Covey, a leading employee training content provider. The business operates enterprise and education segments. In 2016, the business transitioned from its a la carte offerings to a subscription model. This bundled subscription plans, “All Access Pass” (AAP) for enterprise and “Leader in Me” (LIM) for education, represent over 70% of revenues.
Shares were negatively impacted during the first quarter after it became known that a few larger enterprise clients did not renew, due to cost cuts across their organization as the macro environment worsened. Despite this, the Company maintained guidance as other areas of the business, including education and international/China, remained strong.
Organic top line growth is fueled by hiring incremental sales reps (“Client Partners”), where they continue to see attractive financial benefits of incremental hires. With the combination of incremental margins significantly above the current ~14%, and multiple levers for efficiency improvements, we believe the Company has the potential to approach high teens EBITDA margins over the next few years. Based on our analysis, the Company trades above a 9% normalized 2024 free cash flow yield.”
Our calculations show that Franklin Covey Co. (NYSE:FC) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. Franklin Covey Co. (NYSE:FC) was in 17 hedge fund portfolios at the end of the first quarter of 2023, compared to 21 funds in the previous quarter. Franklin Covey Co. (NYSE:FC) delivered a -23.88% return in the past 3 months.
Last year, we also discussed Franklin Covey Co. (NYSE:FC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
