Franklin Covey Co. reported unaudited consolidated earnings results for the first quarter ended December 1, 2012. For the quarter, the company's net sales increased 11% to $44.1 million, all of which was organic growth, compared with $39.5 million in the first quarter of the prior year. Adjusted EBITDA increased $0.7 million to $7.1 million, an 11% increase compared with $6.4 million in fiscal 2012. Income from operations increased $1.6 million to $5.3 million, a 43% increase compared with $3.7 million in the first quarter of fiscal 2012. Net income improved by $1.2 million, or 74%, to $2.9 million, or $0.15 per diluted share, compared with net income of $1.7 million, or $0.09 per diluted share in fiscal 2012. Income before income taxes was $4.693 million against $3.074 million a year ago. Net cash generated for the quarter increased just $100,000 to $4.8 million up 2% from the $4.7 million of net cash generated in the first quarter of 2012.

The company reaffirmed its previous earnings guidance that Adjusted EBITDA for the fiscal year 2013 is expected to range from $30 million to $32 million. Depreciation and amortization last year was $5.5 million, the company expects it to be about the same this year. The company expects its effective tax rate to be between 42% and 44%, which is down from prior years, even though the company does expect to pay more cash out in taxes.