John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2021 Earnings Presentation
19 slides from John Wiley & Sons's earnings presentation, Sep 3, 2020
Slide 1: First Quarter Fiscal 2021 Earnings Review
First Quarter Fiscal 2021 Earnings Review Sept 3, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation 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 statem
Slide 3: Business Review
Business Review Brian Napack, President and CEO
Slide 4: Business Update – Advancing Through the Global Pandemic
Business Update – Advancing Through the Global Pandemic Remote work yielding productivity gains and high engagement: digital company, tech-enabled workflows Solid momentum in Research and Education Services Continued disruption to legacy print books and in-person training Favorable trends continue –
Slide 5: First Quarter 2021 Summary
First Quarter 2021 Summary Revenue GAAP EPS Adj. EPS Adj. EBITDA +2%* +$0.23 +124%* +42%* $431M $0.29 $0.42 $82M • Revenue performance driven by: • Accelerating demand to publish peer-reviewed research and access it through our platforms • Increasing uptake of digital content and courseware • Increa
Slide 6: Research Publishing & Platforms
Research Publishing & Platforms Strong momentum in Open Access, Platforms, and Partnerships • Publishing up 5% driven by robust open access growth and favorable timing (contracts Revenue delayed from Q4); article submissions and output up significantly +6% $241M • Society partnerships continue stron
Slide 7: Research Publishing & Platforms – Rest of Year Viewpoint
Research Publishing & Platforms – Rest of Year Viewpoint Pricing pressure anticipated for Calendar Year ‘21 journal subscription renewals – university library budgets challenged by COVID; peak renewal season runs from Oct ‘20 to Jan ‘21; CY20 renewals locked through December ‘20 Pricing pressure off
Slide 8: Academic & Professional Learning
Academic & Professional Learning Digital growth offset by COVID-related impact on print books and in-person training • Inflection point for digital courseware and content; growth accelerating Revenue -12% • Print books and test prep affected by COVID-related store and testing center $127M closings •
Slide 9: Academic & Professional Learning – Rest of Year Viewpoint
Academic & Professional Learning – Rest of Year Viewpoint Strong digital courseware growth to continue, partly offsetting overall enrollment challenges Print book declines to continue with diminishing impact to overall business Test prep and corporate training largely dependent on reopening of physi
Slide 10: Education Services
Education Services Accelerating interest from universities; profitable growth strategy yielding strong margin gains • Education Services organic growth of 4% from higher enrollment and new program Revenue launches; revenue growth constrained by portfolio optimization +29% $64M • Two full-service par
Slide 11: Education Services – Rest of Year Viewpoint
Education Services – Rest of Year Viewpoint Enrollment momentum and solid pipeline of university partnerships and programs Existing partners seeking online expansion opportunities Unbundled services facing some near-term pressure due to university financial pressure Steady placement opportunities fo
Slide 12: Financial Review
Financial Review John Kritzmacher, Executive Vice President & CFO
Slide 13: Cash Flow, Balance Sheet, and Return to Shareholders
Cash Flow, Balance Sheet, and Return to Shareholders • Free Cash Flow: lower by $20M primarily due to timing of working Free Cash Flow capital activity. Free Cash Flow historically a use in first half of fiscal year due to timing of journal subscriptions collections. $173M of Q120 Q121 Change Free C
Slide 14: Cost Measures and Business Optimization
Cost Measures and Business Optimization Expense Management • Discretionary spending controls • Temporary senior executive and BOD compensation reductions Reorganization and Restructuring • $15M charge in Q4/ $30M in run rate savings expected • Further cost structure initiatives anticipated in fiscal
Slide 15: Summary
Summary Solid momentum in Research and Education Services Continued disruption to legacy print books and in-person training Favorable trends continue – demand for high-quality research, online education and digital courseware Optimization and cost savings initiatives accelerating Strong balance shee
Slide 16: Thank you for joining us
Thank you for joining us Earnings material and events calendar at https://www.wiley.com/en-us/investors Q2 2021 Earnings Call – December Contact us for follow-up at: brian.campbell@wiley.com +1(201) 748-6874 16
Slide 17: Appendix
APPENDIX WILEY
Slide 18: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS
18 JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION “ RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended July 31, 2020 2019 GAAP Earnings Per Share - Diluted $ 029 $ 0.06 Adjustments: Restructuring and related charges (A) 0.03 0.14 Foreign exchange (gains)
Slide 19: Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA
19 JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION “) RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2020 2019 Net Income $ 16,334 § 3,624 Interest expense 4,614 6,077 Provision for income taxes 13,400 343 Depreciation and amortizat