Wiley (NYSE: JWA and JWB), a global leader in scientific
research and career-connected education, today announced results
for the second quarter ended October 31, 2021.
SUMMARY
- GAAP Results: Revenue of $533 million (+9%), Operating
Income of $74 million (+6%), and EPS of $0.99 (-19%)
- Adjusted Results (at constant currency): Revenue of $533
million (+8%), Adjusted EBITDA of $127 million (+7%), and Adjusted
EPS of $1.29 (+6%)
- CFO Transition: John Kritzmacher retiring from Company
after eight years of service; Christina Van Tassell joins Wiley as
successor
MANAGEMENT COMMENTARY
“Wiley's strong performance reflects our continued effectiveness
in helping the world’s leading universities and corporations to
increase the impact of new scientific discoveries, improve the
return on investment in education, and close critical skill and
talent gaps,” said Brian Napack, President and CEO. “Our revenue
growth in Research and Talent Development continues to be
particularly noteworthy, driven by steady execution of our strategy
and favorable market trends.”
SECOND QUARTER PERFORMANCE
GAAP Measures
Unaudited ($millions except for EPS)
Q2 2022
Q2 2021
Change
Revenue
$533.0
$491.0
+9%
Operating Income
$73.9
$69.9
+6%
Diluted EPS
$0.99
$1.22
(19%)
Non-GAAP Measures
Q2 2022
Q2 2021
Change Constant Currency
Revenue
$533.0
$491.0
+8%
Adjusted EBITDA
$127.1
$120.3
+7%
Adjusted EPS*
$1.29
$1.25
+6%
Excluding acquisitions and currency impact, revenue rose 5%
for the quarter. Wiley recorded a favorable FX variance of $2.8
million in Revenue and unfavorable FX variances of $2.1 million in
Adjusted EBITDA and $0.03 in Adjusted EPS.
*Adjusted EPS: Wiley’s Adjusted EPS metric excludes the
impact of certain non-cash items directly related to acquisitions,
most notably the amortization of acquired intangible assets. The
Company does not consider these non-cash items to be indicative of
its ongoing operating performance.
Revenue
- Research Publishing & Platforms rose 9% as reported
and at constant currency and 4% excluding acquisitions, driven by
strong growth in open access, corporate solutions, and research
platforms.
- Academic & Professional Learning grew 4% as reported
and 3% at constant currency, driven by strong recovery in
Professional Learning from prior-year COVID lockdown impacts. This
more than offset a decline in Education Publishing due to softer US
enrollment and some easing of prior-year COVID-related tailwinds in
content and courseware.
- Education Services increased 17% as reported and 15% at
constant currency, driven by 3% growth in University Services
(formerly OPM) and strong double-digit growth in Talent Development
(formerly mthree).
Adjusted EBITDA
- Research Publishing & Platforms rose 10% at constant
currency, primarily driven by revenue growth.
- Academic & Professional Learning rose 18% at
constant currency, reflecting the Professional Learning
recovery.
- Education Services declined 35% at constant currency due
to higher student acquisition costs in University Services and
investments to accelerate growth in Talent Development.
- Adjusted Corporate Expenses were up 12% mainly due to
higher employee-related costs.
EPS
- GAAP EPS was $0.99 as compared to $1.22 in the prior
year period, which included a $0.25 discrete tax benefit related to
the Coronavirus Aid, Relief, and Economic Security Act (CARES
ACT).
- Adjusted EPS of $1.29 was up 6% at constant currency
driven by higher adjusted EBITDA offsetting higher interest
expense.
Balance Sheet, Cash Flow, and Capital Allocation
- Net Debt-to-EBITDA ratio (trailing twelve months) at
quarter-end was 2.1 compared to 1.9 in the prior year period.
- Net Cash Used in Operating Activities (six months) was
$76 million compared to $77 million in the prior year period, with
higher cash earnings offset by higher annual incentive payments
related to Fiscal 2021 outperformance. Note, Wiley’s seasonal use
of cash in the first half of the fiscal year is driven by the
timing of cash collections for annual research journal
subscriptions.
- Free Cash Flow less Product Development Spending (six
months) was a use of $126 million as compared to a use of $124
million in the prior year.
- Acquisitions: During the quarter, Wiley acquired
research editorial services provider, J&J Editorial, for $12
million.
- Share Repurchases: During the quarter, the Company
utilized approximately $10 million to repurchase approximately
183,000 shares at an average cost per share of $54.54.
FISCAL YEAR 2022 OUTLOOK
Given performance through six months and leading indicators, the
Company is reaffirming its full year outlook.
Metric ($millions, except EPS)
Fiscal 2020
Fiscal 2021
Fiscal 2022 Outlook
Revenue
$1,831
$1,942
$2,070 to $2,100
Adjusted EBITDA
$356
$419
$415 to $435
Adjusted EPS
$3.30
$4.00
$4.00 to $4.25
Free Cash Flow
$173
$257
$200 to $220
EARNINGS CONFERENCE CALL
Scheduled for today, December 7 at 10:00 am (ET). Access webcast
at investors.wiley.com, or directly at
https://event.on24.com/wcc/r/3551395/01DAF1B2966C0BBB1AB1A59ED5F92CBB.
US callers, please dial (844) 418-0103 and enter the participant
code 4565599#. International callers, please dial (236)
714-3019 and enter the participant code 4565599#.
ABOUT WILEY
Wiley is a global leader in research and education, unlocking
human potential by enabling discovery, powering education, and
shaping workforces. For over 200 years, Wiley has fueled the
world’s knowledge ecosystem. Today, our high-impact content,
platforms, and services help researchers, learners, institutions,
and corporations achieve their goals in an ever-changing world.
Visit us at Wiley.com, Like us on Facebook and Follow us on Twitter
and LinkedIn
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance
results such as “Adjusted EPS,” “EBITDA”, “Adjusted EBITDA,”
“Adjusted Contribution to Profit,” “Adjusted Income before Taxes,”
“Adjusted Income Tax Provision,” “Adjusted Effective Tax Rate,”
“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. We have not provided our
2022 outlook for the most directly comparable US GAAP financial
measures, as they are not available without unreasonable effort due
to the high variability, complexity, and low visibility with
respect to certain items, including restructuring charges and
credits, gains and losses on foreign currency, and other gains and
losses. These items are uncertain, depend on various factors, and
could be material to our consolidated results computed in
accordance with US GAAP.
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 by Wiley 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 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 2022 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 circumstances.
CATEGORY: ALL CORPORATE NEWS CATEGORY: EARNINGS RELEASES
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION
(1)(2) CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Dollars in thousands, except per share information)
(unaudited) Three Months Ended Six Months
Ended October 31, October 31,
2021
2020
2021
2020
Revenue, net
$
533,003
$
491,011
$
1,021,391
$
922,337
Costs and expenses: Cost of sales
174,782
154,853
340,738
299,662
Operating and administrative expenses
264,190
247,167
524,779
484,536
Restructuring and related (credits) charges
(1,333
)
1,920
(1,609
)
4,138
Amortization of intangible assets
21,476
17,166
42,627
34,057
Total costs and expenses
459,115
421,106
906,535
822,393
Operating income
73,888
69,905
114,856
99,944
As a % of revenue
13.9
%
14.2
%
11.2
%
10.8
%
Interest expense
(4,997
)
(4,461
)
(9,636
)
(9,075
)
Foreign exchange transaction losses
(1,370
)
(697
)
(1,000
)
(779
)
(Loss) gain on sale of certain assets
(56
)
-
3,694
-
Other income, net
3,150
3,766
6,703
8,157
Income before taxes
70,615
68,513
114,617
98,247
Provision for income taxes
14,648
81
44,820
13,481
Effective tax rate
20.7
%
0.1
%
39.1
%
13.7
%
Net income
$
55,967
$
68,432
$
69,797
$
84,766
As a % of revenue
10.5
%
13.9
%
6.8
%
9.2
%
Earnings per share Basic
$
1.00
$
1.22
$
1.25
$
1.51
Diluted
$
0.99
$
1.22
$
1.24
$
1.51
Weighted average number of common shares outstanding
Basic
55,806
56,005
55,833
55,959
Diluted
56,388
56,165
56,477
56,182
Notes:
(1) The supplementary information included in this press release
for the three and six months ended October 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 October 31, 2021, we completed the
acquisition of J&J Editorial Services, LLC, which is included
in our Research Publishing & Platforms segment results.
(2) All amounts are approximate due to rounding.
JOHN WILEY
& SONS, INC. SUPPLEMENTARY INFORMATION (1) (2)
RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES
(unaudited) Reconciliation of US GAAP EPS to
Non-GAAP Adjusted EPS
Three Months Ended Six Months
Ended October 31, October 31,
2021
2020
2021
2020
US GAAP Earnings Per Share - Diluted
$
0.99
$
1.22
$
1.24
$
1.51
Adjustments: Restructuring and related (credits)
charges
(0.02
)
0.02
(0.02
)
0.05
Foreign exchange losses (gains) on intercompany
transactions
0.01
0.01
-
(0.02
)
Amortization of acquired intangible assets (3)
0.31
0.25
0.60
0.50
Loss (gain) loss on sale of certain assets (4)
-
-
(0.05
)
-
Income tax adjustments (5) (6)
-
(0.25
)
0.37
(0.13
)
Non-GAAP Adjusted Earnings Per Share - Diluted
$
1.29
$
1.25
$
2.14
$
1.91
Reconciliation of US GAAP Income Before Taxes to
Non-GAAP Adjusted Income Before Taxes Three
Months Ended Six Months Ended (amounts in
thousands)
October 31, October 31,
2021
2020
2021
2020
US GAAP Income Before Taxes
$
70,615
$
68,513
$
114,617
$
98,247
Pretax Impact of Adjustments: Restructuring and
related (credits) charges
(1,333
)
1,920
(1,609
)
4,138
Foreign exchange losses (gains) on intercompany
transactions
567
231
(228
)
(1,338
)
Amortization of acquired intangible assets
22,608
18,381
44,892
36,530
Loss (gain) loss on sale of certain assets (4)
56
-
(3,694
)
-
Non-GAAP Adjusted Income Before Taxes
$
92,513
$
89,045
$
153,978
$
137,577
Reconciliation of US GAAP Income Tax Provision to
Non-GAAP Adjusted Income Tax Provision, including our US GAAP
Effective Tax Rate and our Non-GAAP AdjustedEffective Tax
Rate US GAAP Income Tax
Provision
$
14,648
$
81
$
44,820
$
13,481
Income Tax Impact of Adjustments (7) Restructuring and
related (credits) charges
(277
)
654
(232
)
1,397
Foreign exchange losses (gains) on intercompany
transactions
120
122
19
(490
)
Amortization of acquired intangible assets
5,420
4,335
10,263
8,633
Loss (gain) loss on sale of certain assets (4)
14
-
(922
)
-
Income Tax Adjustments: Impact of increase in UK
statutory rate on deferred tax balances (5)
-
(83
)
(20,726
)
(6,772
)
Impact of US CARES Act (6)
-
13,998
-
13,998
Non-GAAP Adjusted Income Tax Provision
$
19,925
$
19,107
$
33,222
$
30,247
US GAAP Effective Tax Rate
20.7
%
0.1
%
39.1
%
13.7
%
Non-GAAP Adjusted Effective Tax Rate
21.5
%
21.5
%
21.6
%
22.0
%
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 six months ended October 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
)
All amounts are approximate due to rounding.
(3
)
Reflects the amortization of intangible assets established on the
opening balance sheet for an acquired business. This includes the
amortization of intangible assets such as developed technology,
customer relationships, tradenames, etc., which is reflected in the
"Amortization of intangible assets" line in the Condensed
Consolidated Statements of Net Income. It also includes the
amortization of acquired product development assets, which is
reflected in "Cost of sales" in the Condensed Consolidated
Statements of Net Income.
(4
)
The gain on sale of certain assets is due to the sale of our world
languages product portfolio which was included in our Academic
& Professional Learning segment and resulted in a pretax gain
of approximately $3.7 million during the six months ended October
31, 2021.
(5
)
In the three months ended July 31, 2021, the UK enacted
legislation that increased its statutory rate from 19% to 25%
effective April 1, 2023. This resulted in a $20.7 million, or $0.37
per share non-cash deferred tax expense from the re-measurement of
the Company’s applicable UK net deferred tax liabilities during the
three months ended July 31, 2021. These adjustments impacted
deferred taxes.
In the three months ended July 31, 2020, the UK enacted
legislation that increased its statutory rate from 17% to
19%. This resulted in a $6.7 million, or $0.12 per share
non-cash deferred tax expense from the re-measurement of the
Company’s applicable UK net deferred tax liabilities during the
three months ended July 31, 2020. These adjustments impacted
deferred taxes.
(6
)
In connection with the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) and certain regulations, we carried back
our April 30, 2020 US net operating loss (NOL) to our year ended
April 30, 2015 and claimed a $20.7 million refund. The refund
plus interest was received in February 2021. The NOL was
carried back to fiscal year 2015 when the US corporate tax rate was
35.0%. The carryback to a year with a higher rate, plus
certain additional net permanent deductions included in the
carryback resulted in a $14.0 million tax benefit, or $(0.25) per
share, $8.4 million from current taxes and $5.6 million from
deferred taxes, for the three and six months ended October 31,
2020.
(7
)
For the three and six months ended October 31, 2021 and 2020,
substantially all of the tax impact was from deferred taxes.
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION
(1) RECONCILIATION OF US GAAP NET INCOME TO NON-GAAP EBITDA
AND ADJUSTED EBITDA (unaudited) Three Months
Ended Six Months Ended October 31, October
31,
2021
2020
2021
2020
Net Income
$
55,967
$
68,432
$
69,797
$
84,766
Interest expense
4,997
4,461
9,636
9,075
Provision for income taxes
14,648
81
44,820
13,481
Depreciation and amortization
54,555
48,430
109,121
97,937
Non-GAAP EBITDA
130,167
121,404
233,374
205,259
Restructuring and related (credits) charges
(1,333
)
1,920
(1,609
)
4,138
Foreign exchange transaction losses
1,370
697
1,000
779
Loss (gain) on sale of certain assets
56
-
(3,694
)
-
Other income, net
(3,150
)
(3,766
)
(6,703
)
(8,157
)
Non-GAAP Adjusted EBITDA
$
127,110
$
120,255
$
222,368
$
202,019
Adjusted EBITDA Margin
23.8
%
24.5
%
21.8
%
21.9
%
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 six months ended October 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 October 31, Favorable (Unfavorable)
2021
2020
Reported
Constant Currency
Research Publishing & Platforms: Revenue, net
Research Publishing
$
262,873
$
240,691
9%
9%
Research Platforms
12,281
10,643
15%
15%
Total Revenue, net
$
275,154
$
251,334
9%
9%
Contribution to Profit
$
77,031
$
74,088
4%
8%
Adjustments: Restructuring charges (credits)
22
(238
)
#
#
Non-GAAP Adjusted Contribution to Profit
$
77,053
$
73,850
4%
8%
Depreciation and amortization
23,464
19,765
-19%
-18%
Non-GAAP Adjusted EBITDA
$
100,517
$
93,615
7%
10%
Adjusted EBITDA margin
36.5
%
37.2
%
Academic & Professional Learning: Revenue,
net Education Publishing (2)
$
98,581
$
102,428
-4%
-5%
Professional Learning
77,948
67,485
16%
15%
Total Revenue, net
$
176,529
$
169,913
4%
3%
Contribution to Profit
$
41,071
$
30,007
37%
36%
Adjustments: Restructuring (credits) charges
(465
)
1,541
#
#
Non-GAAP Adjusted Contribution to Profit
$
40,606
$
31,548
29%
28%
Depreciation and amortization
18,148
17,720
-2%
-2%
Non-GAAP Adjusted EBITDA
$
58,754
$
49,268
19%
18%
Adjusted EBITDA margin
33.3
%
29.0
%
Education Services: Revenue, net University
Services (3)
$
58,081
$
56,261
3%
3%
Talent Development Services (2) (4)
23,239
13,503
72%
67%
Total Revenue, net
$
81,320
$
69,764
17%
15%
Contribution to Profit
$
721
$
7,296
-90%
-91%
Adjustments: Restructuring charges
6
84
93%
93%
Non-GAAP Adjusted Contribution to Profit
$
727
$
7,380
-90%
-91%
Depreciation and amortization
8,813
7,210
-22%
-22%
Non-GAAP Adjusted EBITDA
$
9,540
$
14,590
-35%
-35%
Adjusted EBITDA margin
11.7
%
20.9
%
Corporate Expenses:
$
(44,935
)
$
(41,486
)
-8%
-8%
Adjustments: Restructuring (credits) charges
(896
)
533
#
#
Non-GAAP Adjusted Contribution to Profit
$
(45,831
)
$
(40,953
)
-12%
-12%
Depreciation and amortization
4,130
3,735
-11%
-11%
Non-GAAP Adjusted EBITDA
$
(41,701
)
$
(37,218
)
-12%
-12%
Consolidated Results: Revenue, net
$
533,003
$
491,011
9%
8%
Operating Income
$
73,888
$
69,905
6%
9%
Adjustments: Restructuring (credits) charges
(1,333
)
1,920
#
#
Non-GAAP Adjusted Contribution to Profit
$
72,555
$
71,825
1%
4%
Depreciation and amortization
54,555
48,430
-13%
-12%
Non-GAAP Adjusted EBITDA
$
127,110
$
120,255
6%
7%
Adjusted EBITDA margin
23.8
%
24.5
%
Notes:
(1) The supplementary
information included in this press release for the three and six
months ended October 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 2021, we moved the WileyNXT product offering from Academic
& Professional Learning – Education Publishing to Education
Services – Talent Development Services. As a result, the prior
period results related to the WileyNXT product offering have been
included in Education Services - Talent Development Services. The
Revenue, Adjusted Contribution to Profit and Adjusted EBITDA for
WileyNXT was $0.7 million, $(0.1) million, and $(0.1) million,
respectively, for the three months ended October 31, 2020. The
Revenue, Adjusted Contribution to Profit and Adjusted EBITDA for
WileyNXT was $1.2 million, $(0.2) million, and $(0.2) million,
respectively, for the six months ended October 31, 2020. There were
no changes to our total consolidated financial results. (3)
University Services was previously referred to as Education
Services OPM. (4) Talent Development Services was
previously referred to as mthree. #Variance greater than
100%
JOHN WILEY & SONS, INC. SUPPLEMENTARY
INFORMATION (1) SEGMENT RESULTS (in thousands)
(unaudited) % Change Six Months Ended October
31, Favorable (Unfavorable)
2021
2020
Reported
Constant Currency
Research Publishing & Platforms: Revenue,
net Research Publishing
$
526,231
$
471,155
12%
9%
Research Platforms
23,679
20,989
13%
13%
Total Revenue, net
$
549,910
$
492,144
12%
10%
Contribution to Profit
$
155,839
$
143,906
8%
9%
Adjustments: Restructuring charges (credits)
238
(435
)
#
#
Non-GAAP Adjusted Contribution to Profit
$
156,077
$
143,471
9%
9%
Depreciation and amortization
47,226
39,466
-20%
-18%
Non-GAAP Adjusted EBITDA
$
203,303
$
182,937
11%
11%
Adjusted EBITDA margin
37.0
%
37.2
%
Academic & Professional Learning:
Revenue, net Education Publishing (2)
$
164,961
$
166,031
-1%
-3%
Professional Learning
150,832
130,314
16%
14%
Total Revenue, net
$
315,793
$
296,345
7%
5%
Contribution to Profit
$
49,223
$
29,729
66%
61%
Adjustments: Restructuring (credits) charges
(294
)
1,574
#
#
Non-GAAP Adjusted Contribution to Profit
$
48,929
$
31,303
56%
52%
Depreciation and amortization
36,512
36,524
0%
1%
Non-GAAP Adjusted EBITDA
$
85,441
$
67,827
26%
23%
Adjusted EBITDA margin
27.1
%
22.9
%
Education Services: Revenue,
net University Services (3)
$
112,475
$
106,523
6%
5%
Talent Development Services (2)(4)
43,213
27,325
58%
50%
Total Revenue, net
$
155,688
$
133,848
16%
14%
Contribution to Profit
$
(1,106
)
$
7,752
#
#
Adjustments: Restructuring (credits) charges
(28
)
223
#
#
Non-GAAP Adjusted Contribution to Profit
$
(1,134
)
$
7,975
#
#
Depreciation and amortization
17,116
14,489
-18%
-17%
Non-GAAP Adjusted EBITDA
$
15,982
$
22,464
-29%
-30%
Adjusted EBITDA margin
10.3
%
16.8
%
Corporate Expenses:
$
(89,100
)
$
(81,443
)
-9%
-9%
Adjustments: Restructuring (credits) charges
(1,525
)
2,776
#
#
Non-GAAP Adjusted Contribution to Profit
$
(90,625
)
$
(78,667
)
-15%
-14%
Depreciation and amortization
8,267
7,458
-11%
-11%
Non-GAAP Adjusted EBITDA
$
(82,358
)
$
(71,209
)
-16%
-15%
Consolidated Results: Revenue, net
$
1,021,391
$
922,337
11%
9%
Operating Income
$
114,856
$
99,944
15%
15%
Adjustments: Restructuring (credits) charges
(1,609
)
4,138
#
#
Non-GAAP Adjusted Contribution to Profit
$
113,247
$
104,082
9%
9%
Depreciation and amortization
109,121
97,937
-11%
-10%
Non-GAAP Adjusted EBITDA
$
222,368
$
202,019
10%
9%
Adjusted EBITDA margin
21.8
%
21.9
%
#Variance greater than 100%
JOHN
WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands) (unaudited) October 31,
April 30,
2021
2021
Assets: Current assets Cash and cash equivalents
$
100,898
$
93,795
Accounts receivable, net
291,891
311,571
Inventories, net
39,725
42,538
Prepaid expenses and other current assets
67,952
78,393
Total current assets
500,466
526,297
Product development assets, net
46,274
49,517
Royalty advances, net
15,260
39,582
Technology, property and equipment, net
271,774
282,270
Intangible assets, net
970,036
1,015,302
Goodwill
1,302,234
1,304,340
Operating lease right-of-use assets
121,708
121,430
Other non-current assets
118,279
107,701
Total assets
$
3,346,031
$
3,446,439
Liabilities and shareholders' equity: Current
liabilities Accounts payable
$
51,271
$
95,791
Accrued royalties
102,137
78,582
Short-term portion of long-term debt
12,500
12,500
Contract liabilities
267,890
545,425
Accrued employment costs
85,890
144,744
Accrued income taxes
12,862
8,590
Short-term portion of operating lease liabilities
22,353
22,440
Other accrued liabilities
89,606
80,900
Total current liabilities
644,509
988,972
Long-term debt
1,032,505
809,088
Accrued pension liability
126,198
146,247
Deferred income tax liabilities
187,931
172,903
Operating lease liabilities
143,638
145,832
Other long-term liabilities
104,585
92,106
Total liabilities
2,239,366
2,355,148
Shareholders' equity
1,106,665
1,091,291
Total liabilities and shareholders' equity
$
3,346,031
$
3,446,439
Notes:
(1) The supplementary information included in this press release
for October 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 FLOWS (in thousands)
(unaudited) Six Months Ended October
31,
2021
2020
Operating activities: Net income
$
69,797
84,766
Amortization of intangible assets
42,627
34,057
Amortization of product development assets
18,088
17,448
Depreciation and amortization of technology, property, and
equipment
48,406
46,432
Other noncash charges
56,311
51,624
Net change in operating assets and liabilities
(310,851
)
(310,949
)
Net cash used in operating activities
(75,622
)
(76,622
)
Investing activities: Additions to technology,
property, and equipment
(37,676
)
(36,430
)
Product development spending
(13,001
)
(10,999
)
Businesses acquired in purchase transactions, net of cash acquired
(13,615
)
(229
)
Proceeds related to the sale of certain assets
3,375
-
Acquisitions of publication rights and other
(1,654
)
(14,021
)
Net cash used in investing activities
(62,571
)
(61,679
)
Financing activities: Net debt borrowings
227,476
59,590
Cash dividends
(38,619
)
(38,480
)
Purchases of treasury shares
(17,367
)
-
Other
(24,444
)
(2,511
)
Net cash provided by financing activities
147,046
18,599
Effects of exchange rate changes on cash, cash
equivalents and restricted cash
(1,742
)
3,301
Change in cash, cash equivalents and restricted cash for
period
7,111
(116,401
)
Cash, cash equivalents and restricted cash -
beginning
94,359
203,047
Cash, cash equivalents and restricted cash - ending
$
101,470
$
86,646
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT
DEVELOPMENT SPENDING (2) Six Months
Ended October 31,
2021
2020
Net cash used in operating activities
$
(75,622
)
$
(76,622
)
Less: Additions to technology, property, and equipment
(37,676
)
(36,430
)
Less: Product development spending
(13,001
)
(10,999
)
Free cash flow less product development spending
$
(126,299
)
$
(124,051
)
Notes:
(1) The supplementary information
included in this press release for the six months ended October 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) See Explanation of Usage of Non-GAAP
Performance Measures included in this supplemental information.
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 Contribution
to Profit and margin; ·
Adjusted Income Before Taxes;
· Adjusted Income Tax
Provision; · Adjusted
Effective Tax Rate; ·
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 our outlook, to evaluate our
performance and calculate incentive compensation. We present
these non-GAAP performance measures in addition to US GAAP
financial results because we believe that these non-GAAP
performance measures provide useful information to certain
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.
The performance metric used by our chief operating decision maker
to evaluate performance of our reportable segments is Adjusted
Contribution to Profit. We present both Adjusted Contribution to
Profit and Adjusted EBITDA for each of our reportable segments
since we believe Adjusted EBITDA provides additional useful
information to certain investors and financial analysts for
operational trends and comparisons over time as it removes the
impact of depreciation and amortization expense, as well as a
consistent basis to evaluate operating profitability and comparing
our financial performance to that of our peer companies and
competitors. For example:
- Adjusted EPS, Adjusted Contribution to Profit, Adjusted Income
Before Taxes, Adjusted Income Tax Provision, Adjusted Effective Tax
Rate, Adjusted EBITDA and organic revenue (excluding acquisitions)
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, we have historically provided these or similar
non-GAAP performance measures and understand that some investors
and financial analysts find this information helpful in analyzing
our operating margins and net income, and in comparing our
financial performance to that of our peer companies and
competitors. Based on interactions with investors, we also believe
that our non-GAAP performance measures are regarded as useful to
our investors as supplemental to our US 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. We have not provided our 2022 outlook
for the most directly comparable US GAAP financial measures, as
they are not available without unreasonable effort due to the high
variability, complexity, and low visibility with respect to certain
items, including restructuring charges and credits, gains and
losses on foreign currency, and other gains and losses. These items
are uncertain, depend on various factors, and could be material to
our consolidated results computed in accordance with US GAAP.
Non-GAAP performance measures do not have standardized meanings
prescribed by US 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 US GAAP. The adjusted metrics have limitations as analytical
tools, and should not be considered in isolation from, or as a
substitute for, US GAAP information. It does not purport to
represent any similarly titled US GAAP information and is not an
indicator of our performance under US GAAP. Non-GAAP financial
metrics that we present may not be comparable with similarly titled
measures used by others. Investors are cautioned against placing
undue reliance on these non-GAAP measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211207005620/en/
Brian Campbell Investor Relations brian.campbell@wiley.com
201.748.6874
John Wiley & Sons (NYSE:JWB)
Historical Stock Chart
From Feb 2025 to Mar 2025
John Wiley & Sons (NYSE:JWB)
Historical Stock Chart
From Mar 2024 to Mar 2025
