As you can see shown in Slide three, adjusted EBITDA for fiscal 2021 increased to $28 million, which was up 96% from $14.3 million of adjusted EBITDA in fiscal 2020 and up 36% when compared to fiscal 2019 strong $20.6 million of adjusted EBITDA.
This result was well above our original guidance for the 2021 fiscal year of between 20 and $22 million and also $1.5 million above the high end of our updated guidance range of $24.5 to $26.5 million.
Specifically, as you can see on Slide four, first, total revenue grew 40.7% or $20 million in the fourth quarter and grew 13% or $25.7 million for the full fiscal year 2021.
Second, you can see there that total subscription revenue grew 33% or $7.2 million in the fourth quarter and 15% or $13 million for the full fiscal year.
Total subscription and subscription service revenue grew 52% or $17.7 to $52.1 million in the fourth quarter and 21% or $27.5 million for the year.
And finally, as you can see shown there, the sum of billed and unbilled deferred revenue grew 27% or $27.2 million to $127.4 million for the year.
The fourth is that we expect subscription and subscription services to account for greater than 90% of the company's sales within three years.
As shown, revenue for FY '21 grew 13% or $25.7 million to $224.2 million.
Our fourth quarter revenue increased 40.7% or $20 million to $68.9 million.
Gross margin for the year increased 388 basis points to 77.1% from 73.3% in FY '20.
The operating SG&A to sales percentage declined to 64.7% from 66.1% in FY '20.
Adjusted EBITDA for the year increased to $28 million, an increase of 96% or $13.7 million compared to $14.3 million in FY '20.
Adjusted EBITDA for the fourth quarter increased 18.5% to $10.6 million.
Cash flow from operating activities for the year increased 68% to $46.2 million, up from $27.6 million in FY '20, and we ended the quarter with $62.4 million in liquidity.
Revenue in the fourth quarter, like we said, grew 40.7% to $68.9 million, an increase of $20 million compared to the $49 million of revenue generated in last year's fourth quarter.
This revenue was also $3.8 million higher than the $65.2 million of revenue recorded in the fourth quarter of FY '19.
Our gross margin percentage increased a strong 388 basis points for the year to $77.1 million, up from an already good $73.3 million in FY '20.
The gross margin percentage is 644 basis points higher than the 70.7% gross margin percentage we achieved in FY '19, reflecting the ongoing shift to our high-margin subscription offerings.
Our operating SG&A as a percentage of sales declined 139 basis points to 64.7% for FY '21.
And this improvement despite operating SG&A increasing 287 basis points in the fourth quarter to 62%, primarily reflecting the accelerated commissions associated with FY '21's strong finish compared to those in last year's COVID impacted fourth quarter.
Adjusted EBITDA increased 96% or $13.7 million to $28 million for FY '21 compared to $14.3 million in FY '20.
This $28 million of adjusted EBITDA also represented a 36% increase in adjusted EBITDA compared to the $20.6 million achieved in FY '19.
As noted, this was also significantly higher than our initial guidance in FY '21 of $20 million to $22 million, also higher than our updated full year guidance of 24.5 and $26.5 million of adjusted EBITDA.
This $28 million of adjusted EBITDA also represented a $7.9 million or 36% increase over even the strong $20.6 million in adjusted EBITDA achieved in FY '19.
For the fourth quarter, adjusted EBITDA increased to $10.6 million, an increase of 18.5% compared to $8.9 million in adjusted EBITDA last year.
As shown in Slide 10, net cash generated for FY '21 was $39.7 million, which is $30.8 million higher than the $8.9 million generated in FY '20 and up 78% compared to the $22.2 million of net cash generated in FY '19.
Also shown in Slide 11, our cash flow from operating activities for FY '21 increased a very strong $18.6 million or 68% to $46.2 million compared to $27.6 million in FY '20 and $30.5 million in FY '19.
With this strong cash flow, we ended the fourth quarter with $62.4 million in total liquidity, even after investing $10.6 million in the third quarter related to the acquisition of Strive, extending our management training and learning platform.
Our $62.4 million of liquidity at year-end was comprised of $47.4 million in cash, which means no net debt.
And with our $15 million revolving credit facility remaining fully undrawn.
Importantly, this $26.4 million of liquidity is significantly higher than even the $39.8 million in liquidity we had at the end of our second quarter in February 2020, just before the start of the pandemic.
Total revenue in North America grew $16.3 million or 16% from $103.3 million in fiscal '20 million to $119.6 million in fiscal '21.
We're pleased with the strong ongoing rebound in our international operations, where in the fourth quarter, revenue grew 54% compared to the fourth quarter of fiscal 2020.
The strengthening is reflected by two things: first, an increase in the number of leader in Me schools that renewed their leader in Me membership to 2,323 schools in fiscal '21, up from 2,193 schools in fiscal '20.
And second, the significant 79% increase in the number of new Leader in Me schools brought on during fiscal '21.
We added 574 new leader in Me schools, up from 320 in fiscal '20.
This increase in New and retained schools drove strong performance in the Education division, with revenue growing $5.5 million or 12.7% compared to fiscal '20 and adjusted EBITDA increasing $4.9 million over fiscal '20 and $1.2 million over fiscal '19.
As you can see in Slide 14, our total subscription and subscription services sales grew 21% to $157.2 million in fiscal '21, representing additional growth of $27.5 million compared to $129.7 million in subscription and subscription services revenue in fiscal 2020.
In the fourth quarter, subscription and subscription services sales grew 52% to $52.1 million, which was an increase of $17.7 million compared to the fourth quarter of fiscal 2020.
Importantly, this also represented growth of 29% compared to the $40.3 million in subscription and subscription services sales achieved even in the strong fourth quarter of fiscal 2019.
As you can see the sum of billed and unbilled deferred revenue also grew substantially, growing 27% for the year to $127.4 million.
That was an increase of $27.2 million compared to our sum of $100.2 million of billed and unbilled deferred revenue at the end of last year's fourth quarter.
As shown, our balance of deferred subscription revenue grew 27% or $16.4 million to $77 million at the end of -- at year-end compared to $60.6 million at year-end fiscal 2020.
And our balance of unbilled deferred revenue grew 27% or $10.8 million to $50.4 million in this year's fourth quarter, reflecting the significant ongoing increase in the percentage of our All Access Pass contracts, which are now multiyear.
In fiscal 2021, 41% of All Access Pass contracts, representing 53% of total All Access Pass contract value were under multiyear contracts.
As shown in Slide 15, in the Enterprise division, All Access Pass subscription and subscription services sales grew 24% or $22 million to $112.5 million in fiscal 2021 compared with $90.5 million in fiscal 2020.
This also reflected growth of 38% or $31 million compared to fiscal 2019.
And in the fourth quarter, All Access Pass subscription and subscription sales grew 41% or $9.3 million to $32 million.
Additionally, the number of All Access Pass new logos in North America increased 39% in the fourth quarter.
Annual revenue retention continue to exceed 90%, and the sale of multiyear contracts, as I mentioned a minute ago continue to be strong with our balance of unbilled deferred revenue increasing 28% to $49.2 million in the Enterprise division, and that compares to $38.5 million in the fourth quarter of fiscal '20 and is up 69% compared to the $29.1 million balance of unbilled deferred revenue we had at the end of the fourth quarter fiscal 2019.
As shown in Slide 16, in the Education division, in fiscal 2021, Leader in Me subscription and subscription services sales grew 14% or $5.4 million to $44.7 million compared with $39.2 million in fiscal '20.
Fiscal 2021's $44.7 million of subscription and subscription services sales reflected growth of 5% or $2.1 million compared to fiscal 2019.
In the fourth quarter, Leader in Me subscription sales and subscription services grew $8.4 million to $20.1 million.
This represented growth of 72% compared to the $11.7 million in the fourth quarter of fiscal '20 and growth of 13% compared to the strong fourth quarter of fiscal '19, which was pre-pandemic.
This is the reason why in the middle of the pandemic, more than 1,000 organizations purchased, renewed and/or expanded their All Access Pass and purchased support services from Franklin Covey to help them achieve their objectives in an incredibly challenging environment.
It's also the reason why during the last 12 months, in the middle of the pandemic, when schools were scrambling to learn how to teach remotely, connect with kids, provide breakfast and lunches to students who otherwise wouldn't have any and the myriad other challenges they were facing, 2,323 schools renewed their Leader in Me subscription and 574 new schools became Leader in Me schools.
As shown in Slide '20, the fourth takeaway that we want to share today is that we expect subscription and subscription services to account for greater than 90% of the company's sales within three years.
In North America, All Access Pass subscription and subscription services already account for 83% of total sales.
And this is expected to increase to more than 90% within the next couple of years.
As shown in Slide '21, All Access Pass subscription and subscription services sales represented only 13% or $13.7 million of total sales in North America in 2016, when we first introduced the All Access Pass.
The dramatic, sustained, compounded growth since then has resulted in All Access Pass subscription and subscription services sales increasing to $112.5 million in fiscal 2021.
And with legacy sales now at very low levels and expected to remain flat or even decline a bit further, we expect All Access Pass subscription and subscription services sales to increase to more than 90% in North America, as I mentioned over the next couple of years.
As you can see also shown on the right side of Slide '21, from having no subscription sales at all of these offices just five years ago, All Access Pass subscription and subscription services sales for the latest 12 months now account for 81% of total sales in the U.K. and 76% in Australia.
Both of these offices are well on their way toward the same 90% penetration we expect to achieve in North America.
And finally, because of our Leader in Me subscription model, more than 90% of sales in the Education division are already subscription and subscription services.
As you can see in Slide 22, we ended fiscal 2021 with 273 client partners.
Additionally, we expect significant growth to come from the approximately 120 existing client partners we've hired over the past few years who are still in the middle of their ramp-up process.
The annual global learning and development spend totals nearly $400 billion, with more than $90 billion of that spent externally.
These markets are large and growing, and no single provider in the space owns more than 1% or 2% of the market.
As shown in Slide 25, we expect adjusted EBITDA over the next three years to grow from $28 million in fiscal 2021 to between 34 and $36 million in fiscal 2022 to between 44 and $46 million in fiscal 2023 and between 54 and $56 million in fiscal '24.
As a result, we believe the net present value of our expected cash flow is likely were significantly more than the value implied by applying a -- to a given year's adjusted EBITDA, particularly when adjusted EBITDA is growing at a 25% compounded rate or higher.
As a consequence, we expect we'll be able to create additional shareholder value by investing a portion of more than $100 million of available cash we expect to have over the coming years to make strategic acquisitions to grow the business and also to repurchase substantial number of our shares.
Our guidance for FY '22 is that we expect to generate adjusted EBITDA of between 34 and $36 million.
The midpoint of this range would reflect an approximately 25% increase in adjusted EBITDA compared to the $28 million of adjusted EBITDA achieved in FY '21.
First, the recognition that during FY '22, of a large portion of the $77 million of deferred revenue already on the balance sheet and the billing of a large portion of the $50 million of unbilled deferred revenue, which has been contracted.
Now for our first quarter, we expect that adjusted EBITDA will be between 5.5 and $7 million compared to the $3.7 million in the first quarter of fiscal 2021, reflecting strong performance by All Access Pass in the U.S., Canada and government and the same general expectations just outlined for international operations and education.
Building on the $34 million to $36 million in adjusted EBITDA, we expect to achieve this year and driven substantially by the expected continued growth of All Access Pass.
Our target is to achieve adjusted EBITDA increase by about $10 million per year, each year thereafter.
To be, as Bob said, around $45 million in FY '23 and around $55 million in FY '24.
These targets reflect our expectation of being able to achieve low double-digit revenue growth and approximately 40% of that growth in revenue to flow through to increase in adjusted EBITDA and cash flow.
All of this, at least until we achieve an adjusted EBITDA to sales percentage margin of approximately 20% or approaching 20%.

Summary:
Our fourth quarter revenue increased 40.7% or $20 million to $68.9 million.