UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
Date of
Report (Date of Earliest Event Reported):
September
11, 2008
FRANKLIN
COVEY CO.
(Exact
name of registrant as specified in its charter)
Commission
File No. 1-11107
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Utah
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87-0401551
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|
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(State
or other jurisdiction of incorporation)
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(IRS
Employer Identification
Number)
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2200
West Parkway Boulevard
Salt
Lake City, Utah 84119-2099
(Address
of principal executive offices)(Zip Code)
Registrant’s
telephone number, including area code: (801) 817-1776
Former
name or former address, if changed since last report: Not Applicable
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
[
] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))
Item
5.02 Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers
Franklin
Covey Co. (the Company) is pleased to announce
that effective September 11, 2008 it has reorganized its
Executive Leadership Team. The following persons will now work with
Robert A. Whitman, Chief Executive Officer, and Stephen D. Young, Chief
Financial Officer, in the described roles and responsibilities:
Jennifer C.
Colosimo, 39, was appointed Vice President of Global Sales Effectiveness
at Franklin Covey. She brings 17 years of values-based change
management, organizational and leadership development, and global sales
experience to her consulting work. She is an active contributor to
product innovation at Franklin Covey. During her time at Franklin
Covey, she has co-facilitated the Company’s audio program and The 4 Disciplines
of Execution, with Stephen R. Covey, author of The 7 Habits of Highly Effective
People. Previous to joining Franklin Covey in 1996, Jennifer
was a Change Management Consultant with Accenture. Jennifer has
bachelors and master's degrees in organizational communication and business
administration.
David M.R.
Covey, 42, was appointed Senior Vice President of U.S.
Sales. In this capacity, David is responsible for the success of the
Company’s domestic regional sales offices and 100 sales people located
throughout the United States. David has managed the domestic sales
force since September 2004. Prior to this appointment, David was the
President and General Manager of the Company’s International Division from
September 2001 to August 2004. David has also served as the Managing
Director of Franklin Covey Australia. David earned his MBA from
Harvard University and prior to receiving his MBA, David worked for two years
for Procter & Gamble in Phoenix, Arizona as a Sales
Representative. David is the son of Stephen R. Covey, who currently
serves as Vice-Chairman of the Company’s Board of Directors, and he is the
brother of Michael Sean Merrill Covey.
Michael Sean
Merrill Covey, 43, was appointed Senior Vice President of Innovations and
Product Development at Franklin Covey and has led the development of most of the
Company’s current training offerings, including: Focus; The 7 Habits curriculum;
xQ; The 4 Disciplines of Execution; and Leadership. Sean is also the
author of several books, including The 6 Most Important Decisions You'll Ever
Make, The 7 Habits of Happy Kids, and the international bestseller The 7 Habits
of Highly Effective Teens, which has been translated into 20 languages and has
sold over 4 million copies. Sean graduated with honors from Brigham
Young University with a Bachelor's degree in English and later earned his MBA
from Harvard Business School. Sean is the son of Stephen R. Covey,
who serves as Vice-Chairman of the Company’s Board of Directors, and he is the
brother of David M.R. Covey. Sean also receives royalty payments, in
addition to his regular salary, for sales of books that he has
authored. During the fiscal year ended August 31, 2008, the Company
paid Sean $181,000 for royalties on these book sales.
Stephane
Mardyks, 45, was appointed Senior Vice President of Franklin Covey
International, which provides the global strategy, sales, delivery and
operations for Franklin Covey in 128 countries. Stephane has
conducted numerous Leadership Training and Seminars throughout the
world. He has written extensively about workforce performance
improvement and is recognized for his expertise in global best practices of
cross-cultural management, strategic negotiations, and conflict resolution for
multinational and government organizations. Stephane’s educational
and professional credentials include: Certification as a Mediator by JAMS, in
Boston, Massachusetts; Graduate of University of Paris-Nanterre with two
postgraduate degrees, one in Law and the other in Educational Science
(DEA-DESS-Doctorate); a member of the Board of Trustees in the International
Franchise Association Education Foundation; and the ICFE Board of
Governors.
Clifton Todd
Davis, 51, was appointed Vice President of People
Services. Todd has over 25 years of experience in training, training
development, executive recruiting, sales, and marketing and he has been with
Franklin Covey for the past 12 years. Prior to this role, Todd was
the Director of Franklin Covey’s Innovation Group where he led the development
of core offerings including The 7 Habits of Highly Effective People – Signature
Program and The 4 Disciplines of Execution. He also worked for
several years as the Company’s Director of Recruitment and was responsible for
attracting, hiring, and retaining top talent for the
organization. Prior to Franklin Covey, Todd worked in the
medical industry for 9 years where he recruited physicians and medical
executives along with marketing physician services to hospitals and clinics
throughout the country.
The
Company expects that these executive officers may participate in the
compensation programs established by Franklin Covey that are described in the
Company’s proxy statement.
In
connection with these changes to the Company’s Executive Management Team, Robert
W. Bennett, Jr. has chosen to accept new responsibilities as the practice leader
for the Company’s Leadership Practice and Sales Performance Practice and will no
longer serve as President of the Organizational Solutions Business Unit (OSBU)
or an executive
officer of the Company. During his 6 years as President of the
OSBU, he successfully directed the OSBU through a period of
tremendous growth and his leadership ability greatly contributed to its
increased strength. The Company believes that Bill will continue to
have a significant impact in his new role on the Company’s operations in a
critically important area.
Item
8.01 Other
Events
In
connection with closing its fiscal year ended August 31, 2008, the Company
reassessed the net realizable value of its capitalized costs associated with the
interactive 7 Habits of Highly
Effective People product and determined that the future cash flows from
this product appear to be insufficient to cover the remaining unamortized
costs. Accordingly, the Company expects to record an impairment
charge in its results of operations for the year ended August 31,
2008.
The
Company still believes that as a result of its current restructuring activities,
and reasonable growth from operations, after a restructuring period of slightly
more than one year it can achieve operating income levels comparable to the
period preceding the sale of its Consumer Solutions Business Unit.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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FRANKLIN
COVEY CO.
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Date:
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September
12, 2008
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By:
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/s/
Stephen D. Young
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Stephen
D. Young
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Chief
Financial
Officer
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