John Wiley & Sons, Inc. (NYSE:JWA)(NYSE:JWB), a global
leader in research and education, today announced results for the
third quarter ended January 31, 2021.
THIRD QUARTER SUMMARY
- GAAP Results: Revenue of $483 million (+3%) and EPS of
$0.39 (-$0.24) due to restructuring charges of $0.28 primarily
related to real estate capacity reduction
- Adjusted Results at constant currency (cc): Revenue +2%,
EBITDA +7%, and EPS +6%
- Full Year Outlook raised for Revenue, Adjusted EBITDA,
Adjusted EPS and Free Cash Flow
MANAGEMENT COMMENTARY
“Wiley’s strategic focus and solid execution in open research
and online education continue to yield strong results,” said Brian
Napack, President and CEO. “During the quarter, we accelerated our
Research growth strategy with the acquisition of Hindawi, a
rapidly-growing leader in open access publishing, and we
strengthened the Wiley network with new university and corporate
partners for online degree and talent development services.”
THIRD QUARTER PERFORMANCE
GAAP Measures Unaudited ($millions
except for EPS)
Q3 2021
Q3 2020
Change
Revenue
$482.9
$467.1
3%
Diluted EPS
$0.39
$0.63
(38%)
Non-GAAP Measures
Q3 2021
Q3 2020
Change Constant Currency
Revenue
$482.9
$467.1
2%
Adjusted EBITDA
$104.3
$95.5
7%
Adjusted EPS
$0.68
$0.68
6%
Excluding acquisitions and currency impact, revenue declined 1%
for the quarter. Wiley recorded a favorable FX variance of $7.6
million in revenue and $2.1 million in Adjusted EBITDA, and an
unfavorable FX variance of $0.04 per share in Adjusted EPS.
Revenue
- Research Publishing & Platforms rose 3% as reported
and 1% at constant currency, with strong growth in open access and
inorganic contributions from acquisitions offsetting anticipated
subscription revenue pressure.
- Academic & Professional Learning declined 2% as
reported and 4% at constant currency mainly due to COVID-19 impact
on test prep and in-person corporate training, and a decline in
print book revenue, which offset continued growth in digital
content and courseware.
- Education Services increased 25% as reported and 24% at
constant currency, driven by organic revenue growth of 13% from
strong online enrollment and new student starts, and the two-month
inorganic contribution from mthree (+$8 million).
Adjusted EBITDA
- Research Publishing & Platforms was even with the
prior year at constant currency, as revenue growth, operational
efficiencies, and COVID-related expense savings were offset by
higher royalties and one-time charges associated with the Hindawi
acquisition.
- Academic & Professional Learning rose 2% at constant
currency, reflecting business optimization gains and COVID-related
expense savings.
- Education Services rose $12 million to $13 million,
driven by revenue growth and business optimization initiatives,
notably sustained improvement in student acquisition costs.
Adjusted EBITDA margin for the quarter was 19%, up from 2% in the
prior year.
- Adjusted Corporate Expenses rose 19% to $44 million
mainly due to higher employment-related expenses.
EPS
- GAAP EPS of $0.39 declined from $0.63 in the prior year,
reflecting restructuring charges of $0.28 per share, primarily
related to a previously disclosed reduction in Wiley’s real estate
footprint.
- Adjusted EPS of $0.68 compared to $0.68 in the prior
year with operating income growth and lower interest expense
partially offset by higher FX transaction losses mostly related to
the funding of the Hindawi acquisition. In the quarter, the Hindawi
acquisition was dilutive to EPS by approximately $0.12 per
share.
Balance Sheet and Liquidity
- Net debt-to-EBITDA ratio (trailing twelve months) at
quarter-end was 2.2 as compared to 1.8 at the end of the year-ago
period.
- Available liquidity was approximately $620 million at
quarter-end, including $91 million of cash on hand and $529 million
of undrawn credit capacity.
Cash Flow (YTD)
- Net Cash Provided by Operating Activities was $155
million compared to $89 million in the prior year period, primarily
driven by higher cash earnings.
- Free Cash Flow less Product Development Spending was $80
million compared to $5 million in the prior year, reflecting the
improvement in Net Cash Provided by Operating Activities and lower
capital expenditures.
- Share repurchases resumed in January following the
announcement of the Hindawi acquisition. During the brief remaining
trading period, Wiley spent approximately $7 million to acquire
146,852 shares at an average cost per share of $48.09.
FISCAL YEAR 2021 OUTLOOK
Based on performance through nine months, Wiley is raising its
full year outlook for Revenue, Adjusted EBITDA, Adjusted EPS, and
Free Cash Flow. The updated outlook assumes that current foreign
exchange rates prevail through the end of the fiscal year. The
outlook also includes the projected fourth quarter impact of the
Hindawi acquisition. For the full year, the Company continues to
anticipate low-single digit revenue growth overall, which includes
low-single digit growth in Research, a mid-single digit decline in
Academic & Professional Learning, and double-digit growth in
Education Services (mid-to-high single digit growth on an organic
basis).
Updated projected performance ranges for consolidated Revenue,
Adjusted EBITDA, Adjusted EPS, and Free Cash Flow are as
follows:
Metric ($millions, except EPS)
Fiscal 2020
Actual
Fiscal 2021 Previous
Outlook
Fiscal 2021 Current
Outlook
Revenue
$1,831
$1,865 - $1,885
Raised, $1,900 - $1,920
Adjusted EBITDA
$356
$380 - $395
Raised, $395 - $410
Adjusted EPS
$2.40
$2.50 - $2.70
Raised, $2.60 - $2.75
Free Cash Flow
$173
$175 - $200
Raised, $200 - $225
- Current outlook reflects actual currency impact to date,
current exchange rates sustained through Q4 (Euro at $1.18 and
Pound Sterling at $1.32), and the approximate four-month impact of
the Hindawi acquisition (Revenue +$10M, Adjusted EBITDA neutral,
and Adjusted EPS -$0.15).
EARNINGS CONFERENCE CALL
Scheduled for today, March 4 at 10:00 a.m. (ET). Access the
webcast directly at
https://event.on24.com/wcc/r/3036824/A98F5D273A4855BB2457F285ACDA49A7,
or at Wiley.com under Investor Relations - Events and Presentations
at https://www.wiley.com/en-us/investors. U.S. callers, please dial
(844) 418-0103 and enter the participant code 7251548#.
International callers, please dial (236) 714-3019 and enter the
participant code 7251548#.
ABOUT WILEY
Wiley drives the world forward with research and education.
Through publishing, platforms, and services, we help researchers,
professionals, students, universities, and corporations to achieve
their goals in an ever-changing world. And for more than 200 years,
we have delivered consistent performance to all our stakeholders.
The Company's website can be accessed at www.wiley.com.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance
results such as “Adjusted EPS,” “Adjusted Revenue,” “Adjusted
Operating Income,” “Adjusted EBITDA,” “Adjusted CTP,” “Free Cash
Flow less Product Development Spending,” “organic revenue,” and
results on a Constant Currency basis to assess underlying business
performance and trends. Management believes non-GAAP financial
measures, which exclude the impact of restructuring charges and
credits and certain other items, and the impact of acquisitions
provide a useful comparable basis to analyze operating results and
earnings. See the reconciliations of non-GAAP financial measures
and explanations of the uses of non-GAAP measures in the
supplementary information.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements
concerning the Company's operations, performance, and financial
condition. Reliance should not be placed on forward-looking
statements, as actual results may differ materially from those in
any forward-looking statements. Any such forward-looking statements
are based upon a number of assumptions and estimates that are
inherently subject to uncertainties and contingencies, many of
which are beyond the control of the Company and are subject to
change based on many important factors. Such factors include, but
are not limited to: (i) the level of investment in new technologies
and products; (ii) subscriber renewal rates for the Company's
journals; (iii) the financial stability and liquidity of journal
subscription agents; (iv) the consolidation of book wholesalers and
retail accounts; (v) the market position and financial stability of
key online retailers; (vi) the seasonal nature of the Company's
educational business and the impact of the used book market; (vii)
worldwide economic and political conditions; (viii) the Company's
ability to protect its copyrights and other intellectual property
worldwide (ix) the ability of the Company to successfully integrate
acquired operations and realize expected opportunities; (x) the
Company’s ability to realize operating savings over time and in
fiscal year 2021 in connection with our multi-year Business
Optimization Program; (xi) the impact of COVID-19 on our
operations, performance, and financial condition; and (xii) other
factors detailed from time to time in the Company's filings with
the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any such forward-looking statements
to reflect subsequent events or circumstances.
Category: Earnings Releases
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION
(1)(2)
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(in thousands, except per
share data)
(unaudited)
Three Months Ended
Nine Months Ended
January 31,
January 31,
2021
2020
2021
2020
Revenue, net
$
482,912
$
467,131
$
1,405,249
$
1,356,866
Costs and expenses: Cost of sales
157,636
153,924
457,298
440,433
Operating and administrative expenses
251,242
245,683
735,778
736,233
Restructuring and related charges
20,675
3,298
24,813
18,034
Amortization of intangibles
19,032
15,732
53,089
45,722
Total Costs and Expenses
448,585
418,637
1,270,978
1,240,422
Operating Income
34,327
48,494
134,271
116,444
As a % of revenue
7.1
%
10.4
%
9.6
%
8.6
%
Interest expense
(4,853
)
(6,309
)
(13,928
)
(19,173
)
Foreign exchange transaction losses
(5,694
)
(1,745
)
(6,473
)
(1,761
)
Other income
3,612
4,232
11,769
9,602
Income Before Taxes
27,392
44,672
125,639
105,112
Provision for income taxes
5,231
9,229
18,712
21,355
Effective tax rate
19.1
%
20.7
%
14.9
%
20.3
%
Net Income
$
22,161
$
35,443
$
106,927
$
83,757
As a % of revenue
4.6
%
7.6
%
7.6
%
6.2
%
Weighted Average Number of Common Shares Outstanding
Basic
55,984
56,073
55,967
56,312
Diluted
56,332
56,503
56,230
56,698
Earnings Per Share Basic
$
0.40
$
0.63
$
1.91
$
1.49
Diluted
$
0.39
$
0.63
$
1.90
$
1.48
Notes: (1) The supplementary information included in this
press release for the three and nine months ended January 31, 2021
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission.In the three months ended January 31, 2021, we
completed the acquisition of Hindawi, which is included in our
Research Publishing and Platforms segment results. (2) All amounts
are approximate due to rounding.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION
(1)
RECONCILIATION OF GAAP EPS to
NON-GAAP ADJUSTED EPS - DILUTED
(unaudited)
Three Months Ended
Nine Months Ended
January 31,
January 31,
2021
2020
2021
2020
GAAP Earnings Per Share - Diluted
$
0.39
$
0.63
$
1.90
$
1.48
Adjustments: Restructuring and related charges (A)
0.28
0.04
0.33
0.24
Foreign exchange losses (gains) on intercompany transactions (A)
0.01
0.01
(0.01
)
0.02
Impact of increase in U.K. statutory rate on deferred tax balances
(B)
-
-
0.12
-
Impact of U.S. CARES Act (C)
-
-
(0.25
)
-
Non-GAAP Adjusted Earnings Per Share - Diluted
$
0.68
$
0.68
$
2.09
$
1.74
Notes: (A) The table below shows the net of tax
impact of our adjustments to GAAP Earnings Per Share noted above.
Three Months Ended
Nine Months Ended
January 31,
January 31,
(amounts in millions)
2021
2020
2021
2020
Net of tax, charges related to the Business Optimization Program
$
15.7
$
2.9
$
18.6
$
13.9
Net of tax, (credits) charges related to the Restructuring and
Reinvestment Program
$
0.0
$
(0.4
)
$
(0.2
)
$
(0.2
)
Net of tax, foreign exchange transaction losses (gains)
$
0.2
$
0.6
$
(0.7
)
$
1.3
(B) During the first quarter of fiscal 2021, the U.K.
officially enacted legislation that increased its statutory rate
from 17% to 19%. This resulted in a $6.7 million non-cash deferred
tax expense from the re-measurement of the Company’s applicable
U.K. net deferred tax liabilities. (C) In connection with the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act")
and certain regulations issued in late July 2020, the Company
elected to carry back its fiscal year 2020 loss for tax purposes
("NOL") to its fiscal year 2015 and claimed a $20.7 million refund.
The NOL carryback to a year when our corporate tax rate was 35%,
including certain related benefits, resulted in a $14 million tax
benefit. We received the refund in February 2021. (1) See
Explanation of Usage of Non-GAAP performance measures included in
this supplementary information for additional details on the
reasons why management believes presentation of each non-GAAP
performance measure provides useful information to investors. The
supplementary information included in this press release for the
three and nine months ended January 31, 2021 is preliminary and
subject to change prior to the filing of our upcoming Quarterly
Report on Form 10-Q with the Securities and Exchange Commission.
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION
(1) RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND
ADJUSTED EBITDA (unaudited)
Three Months Ended
Nine Months Ended
January 31,
January 31,
2021
2020
2021
2020
Net Income
$
22,161
$
35,443
$
106,927
$
83,757
Interest expense
4,853
6,309
13,928
19,173
Provision for income taxes
5,231
9,229
18,712
21,355
Depreciation and amortization
49,316
43,681
147,253
128,538
Non-GAAP EBITDA
81,561
94,662
286,820
252,823
Restructuring and related charges
20,675
3,298
24,813
18,034
Foreign exchange transaction losses
5,694
1,745
6,473
1,761
Other income
(3,612
)
(4,232
)
(11,769
)
(9,602
)
Non-GAAP Adjusted EBITDA
$
104,318
$
95,473
$
306,337
$
263,016
Adjusted EBITDA Margin
21.6
%
20.4
%
21.8
%
19.4
%
Notes: (1) See Explanation of Usage of Non-GAAP performance
measures included in this supplementary information for additional
details on the reasons why management believes presentation of each
non-GAAP performance measure provides useful information to
investors. The supplementary information included in this press
release for the three and nine months ended January 31, 2021 is
preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION
(1)
SEGMENT RESULTS
(in thousands)
(unaudited)
% Change
Three Months Ended January
31,
Favorable
(Unfavorable)
2021
2020
Reported
Constant Currency
Research Publishing & Platforms: Revenue, net
Research Publishing
$
229,327
$
223,393
3%
1%
Research Platforms
10,523
10,163
4%
4%
Total Revenue, net
$
239,850
$
233,556
3%
1%
Contribution to Profit
$
60,782
$
63,861
-5%
-6%
Adjustments: Restructuring charges
83
40
Non-GAAP Adjusted Contribution to Profit
$
60,865
$
63,901
-5%
-6%
Depreciation and amortization
20,997
17,056
Non-GAAP Adjusted EBITDA
$
81,862
$
80,957
1%
0%
Adjusted EBITDA margin
34.1
%
34.7
%
Academic & Professional Learning: Revenue,
net Education Publishing
$
98,160
$
100,982
-3%
-4%
Professional Learning
75,955
77,296
-2%
-4%
Total Revenue, net
$
174,115
$
178,278
-2%
-4%
Contribution to Profit
$
32,606
$
28,793
13%
11%
Adjustments: Restructuring charges
328
1,541
Non-GAAP Adjusted Contribution to Profit
$
32,934
$
30,334
9%
6%
Depreciation and amortization
17,233
17,806
Non-GAAP Adjusted EBITDA
$
50,167
$
48,140
4%
2%
Adjusted EBITDA margin
28.8
%
27.0
%
Education Services: Revenue, net Education
Services OPM (2)
$
56,725
$
50,263
13%
13%
mthree (2)
12,222
5,034
#
#
Total Revenue, net
$
68,947
$
55,297
25%
24%
Contribution to Profit
$
5,427
$
(5,166
)
#
#
Adjustments: Restructuring charges
71
4
Non-GAAP Adjusted Contribution to Profit
$
5,498
$
(5,162
)
#
#
Depreciation and amortization
7,493
5,987
Non-GAAP Adjusted EBITDA
$
12,991
$
825
#
#
Adjusted EBITDA margin
18.8
%
1.5
%
Corporate Expenses:
$
(64,488
)
$
(38,994
)
-65%
-65%
Adjustments: Restructuring charges
20,193
1,713
Non-GAAP Adjusted Corporate Expenses
$
(44,295
)
$
(37,281
)
-19%
-19%
Depreciation and amortization
3,593
2,832
Non-GAAP Adjusted EBITDA
$
(40,702
)
$
(34,449
)
-18%
-18%
Consolidated Results: Revenue, net
$
482,912
$
467,131
3%
2%
Operating Income
$
34,327
$
48,494
-29%
-32%
Adjustments: Restructuring charges
20,675
3,298
Non-GAAP Adjusted Operating Income
$
55,002
$
51,792
6%
3%
Depreciation and amortization
49,316
43,681
Non-GAAP Adjusted EBITDA
$
104,318
$
95,473
9%
7%
Adjusted EBITDA margin
21.6
%
20.4
%
(1) The supplementary information included in this press release
for the three and nine months ended January 31, 2021 is preliminary
and subject to change prior to the filing of our upcoming Quarterly
Report on Form 10-Q with the Securities and Exchange Commission.
(2) In May 2020, we moved the IT bootcamp business acquired as part
of The Learning House acquisition from Education Services OPM to
mthree. As a result, the prior period revenue related to the IT
bootcamp business has been included in mthree. There were no
changes to our total Education Services or our consolidated
financial results. The inorganic revenue from mthree in the three
and nine months ended January 31, 2021 was $7.7 million and $32.6
million, respectively. # Variance greater than 100%
JOHN
WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1)
SEGMENT RESULTS (in thousands) (unaudited)
% Change
Nine Months Ended January
31,
Favorable
(Unfavorable)
2021
2020
Reported
Constant Currency
Research Publishing & Platforms: Revenue, net
Research Publishing
$
700,482
$
668,405
5%
4%
Research Platforms
31,512
29,235
8%
8%
Total Revenue, net
$
731,994
$
697,640
5%
4%
Contribution to Profit
$
204,688
$
182,798
12%
11%
Adjustments: Restructuring (credits) charges
(352
)
3,386
Non-GAAP Adjusted Contribution to Profit
$
204,336
$
186,184
10%
9%
Depreciation and amortization
60,463
51,246
Non-GAAP Adjusted EBITDA
$
264,799
$
237,430
12%
11%
Adjusted EBITDA margin
36.2
%
34.0
%
Academic & Professional Learning: Revenue,
net Education Publishing
$
265,349
$
268,246
-1%
-2%
Professional Learning
206,269
232,615
-11%
-12%
Total Revenue, net
$
471,618
$
500,861
-6%
-7%
Contribution to Profit
$
62,104
$
68,754
-10%
-12%
Adjustments: Restructuring charges
1,902
5,146
Non-GAAP Adjusted Contribution to Profit
$
64,006
$
73,900
-13%
-15%
Depreciation and amortization
53,757
51,679
Non-GAAP Adjusted EBITDA
$
117,763
$
125,579
-6%
-8%
Adjusted EBITDA margin
25.0
%
25.1
%
Education Services: Revenue, net Education
Services OPM(2)
$
163,248
$
151,200
8%
8%
mthree (2)
38,389
7,165
#
#
Total Revenue, net
$
201,637
$
158,365
27%
27%
Contribution to Profit
$
13,410
$
(9,782
)
#
#
Adjustments: Restructuring charges
294
1,618
Non-GAAP Adjusted Contribution to Profit
$
13,704
$
(8,164
)
#
#
Depreciation and amortization
21,982
17,007
Non-GAAP Adjusted EBITDA
$
35,686
$
8,843
#
#
Adjusted EBITDA margin
17.7
%
5.6
%
Corporate Expenses:
$
(145,931
)
$
(125,326
)
-16%
-17%
Adjustments: Restructuring charges
22,969
7,884
Non-GAAP Adjusted Corporate Expenses
$
(122,962
)
$
(117,442
)
-5%
-5%
Depreciation and amortization
11,051
8,606
Non-GAAP Adjusted EBITDA
$
(111,911
)
$
(108,836
)
-3%
-3%
Consolidated Results: Revenue, net
$
1,405,249
$
1,356,866
4%
3%
Operating Income
$
134,271
$
116,444
15%
12%
Adjustments: Restructuring charges
24,813
18,034
Non-GAAP Adjusted Operating Income
$
159,084
$
134,478
18%
16%
Depreciation and amortization
147,253
128,538
Non-GAAP Adjusted EBITDA
$
306,337
$
263,016
16%
15%
Adjusted EBITDA margin
21.8
%
19.4
%
# Variance greater than 100%
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION
(1)
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
January 31,
April 30,
2021
2020
Assets: Current Assets Cash and cash equivalents
$
91,321
$
202,464
Accounts receivable, net
278,939
309,384
Inventories, net
40,685
43,614
Prepaid expenses and other current assets
84,765
59,465
Total Current Assets
495,710
614,927
Product Development Assets, net
48,528
53,643
Royalty Advances, net
43,755
36,710
Technology, Property and Equipment, net
284,638
298,005
Intangible Assets, net
1,024,887
807,405
Goodwill
1,297,059
1,116,790
Operating Lease Right-of-Use Assets
125,287
142,716
Other Non-Current Assets
106,501
98,598
Total Assets
$
3,426,365
$
3,168,794
Liabilities and Shareholders' Equity: Current
Liabilities Accounts payable
$
72,937
$
93,691
Accrued royalties
143,884
87,408
Short-term portion of long-term debt
12,500
9,375
Contract liabilities
398,477
520,214
Accrued employment costs
103,223
108,448
Accrued income taxes
9,168
13,728
Short-term portion of operating lease liabilities
20,965
21,810
Other accrued liabilities
80,922
72,595
Total Current Liabilities
842,076
927,269
Long-Term Debt
948,241
765,650
Accrued Pension Liability
167,881
187,969
Deferred Income Tax Liabilities
164,583
119,127
Operating Lease Liabilities
153,031
159,782
Other Long-Term Liabilities
86,751
75,373
Total Liabilities
2,362,563
2,235,170
Shareholders' Equity
1,063,802
933,624
Total Liabilities and Shareholders' Equity
$
3,426,365
$
3,168,794
(1) The supplementary information included in this press release
for January 31, 2021 is preliminary and subject to change prior to
the filing of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION
(1)
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(in thousands)
(unaudited)
Nine Months Ended
January 31,
2021
2020
Operating Activities: Net income
$
106,927
$
83,757
Amortization of intangibles
53,089
45,722
Amortization of product development assets
25,323
26,653
Depreciation and amortization of technology, property, and
equipment
68,841
56,163
Other non-cash charges and credits
83,995
51,436
Net change in operating assets and liabilities
(183,349
)
(174,844
)
Net Cash Provided By Operating Activities
154,826
88,887
Investing Activities: Additions to technology,
property, and equipment
(58,176
)
(65,924
)
Product development spending
(17,103
)
(17,770
)
Businesses acquired in purchase transactions, net of cash acquired
(298,590
)
(200,642
)
Acquisitions of publication rights and other
(18,524
)
(1,548
)
Net Cash Used in Investing Activities
(392,393
)
(285,884
)
Financing Activities: Net debt borrowings
174,170
319,417
Cash dividends
(57,802
)
(57,632
)
Purchase of treasury shares
(7,063
)
(35,000
)
Other
6,538
(5,903
)
Net Cash Provided By Financing Activities
115,843
220,882
Effects of Exchange Rate Changes on Cash, Cash
Equivalents and Restricted Cash
10,631
530
Change in Cash, Cash Equivalents and Restricted Cash for
Period
(111,093
)
24,415
Cash, Cash Equivalents and Restricted Cash -
Beginning
203,047
93,548
Cash, Cash Equivalents and Restricted Cash - Ending
$
91,954
$
117,963
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT
DEVELOPMENT SPENDING
Nine Months Ended
January 31,
2021
2020
Net Cash Provided By Operating Activities
$
154,826
$
88,887
Less: Additions to technology, property, and equipment
(58,176
)
(65,924
)
Less: Product development spending
(17,103
)
(17,770
)
Free Cash Flow less Product Development Spending
$
79,547
$
5,193
See Explanation of Usage of Non-GAAP Measures included in this
supplemental information. (1) The supplementary information
included in this press release for the nine months ended January
31, 2021 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
JOHN WILEY & SONS,
INC.
Explanation of Usage of
NON-GAAP Performance Measures
In this earnings release and supplemental information,
management may present the following non-GAAP performance measures:
- Adjusted Earnings Per Share ("Adjusted EPS");
- Free Cash Flow less Product Development Spending;
- Adjusted Revenue;
- Adjusted Operating Income and margin;
- Adjusted Contribution to Profit and margin;
- EBITDA, Adjusted EBITDA and margin;
- Organic revenue; and
- Results on a constant currency basis.
Management uses these non-GAAP performance measures as supplemental
indicators of our operating performance and financial position as
well for internal reporting and forecasting purposes, when publicly
providing its outlook, to evaluate the Company's performance and
calculate incentive compensation. Non-GAAP performance measures do
not have standardized meanings prescribed by U.S. GAAP and
therefore may not be comparable to the calculation of similar
measures used by other companies and should not be viewed as
alternatives to measures of financial results under U.S. GAAP.
The Company presents these non-GAAP performance measures in
addition to U.S. GAAP financial results because it believes that
these non-GAAP performance measures provide useful information to
investors and financial analysts for operational trends and
comparisons over time. The use of these non-GAAP performance
measures may also provide a consistent basis to evaluate operating
profitability and performance trends by excluding items that we do
not consider to be controllable activities for this purpose. For
example:
- Adjusted EPS, Adjusted Revenue, Adjusted Operating Income,
Adjusted Contribution to Profit, Adjusted EBITDA and organic
revenue provide a more comparable basis to analyze operating
results and earnings and are measures commonly used by shareholders
to measure our performance.
- Free Cash Flow less Product Development Spending helps assess
our ability, over the long term, to create value for our
shareholders as it represents cash available to repay debt, pay
common stock dividends and fund share repurchases and
acquisitions.
- Results on a constant currency basis removes distortion from
the effects of foreign currency movements to provide better
comparability of our business trends from period to period. We
measure our performance excluding the impact of foreign currency
(or at “constant currency”), which means that we apply the same
foreign currency exchange rates for the current and equivalent
prior period.
In addition, the Company has historically provided these or similar
non-GAAP performance measures and understand that some investors
and financial analysts find this information helpful in analyzing
the Company's operating margins, and net income and comparing the
Company's financial performance to that of its peer companies and
competitors. Based on interactions with investors, we also believe
that the Company's non-GAAP performance measures are regarded as
useful to our investors as supplemental to our U.S. GAAP financial
results, and that there is no confusion regarding the adjustments
or our operating performance to our investors due to the
comprehensive nature of our disclosures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210304005324/en/
Investor Contact: Brian Campbell 201.748.6874
brian.campbell@wiley.com
Media Contact: Katie Roberts 602.373.7233
karoberts@wiley.com
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