John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Wiley John & Sons — Q1 FY2016 Earnings Presentation
14 slides from John Wiley & Sons's earnings presentation, Sep 9, 2015
Slide 1: First Quarter Fiscal 2016 Earnings Report
WILEY First Quarter Fiscal 2016 Earnings Report September 9, 2015
Slide 2: About Wiley / Safe Harbor Statement
About Wiley Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, profes: practice and education. Through its Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference works,
Slide 3: First Quarter Summary
) First Quarter Summary * Overall revenue growth (+2%) reflects stable journal revenue and continued progress in strategic growth opportunities * Double-digit adjusted earnings growth (+11%) driven by revenue growth, cost reductions, and lower tax expense, partially offset by investment in Online Pr
Slide 4: Performance Summary
) Performance Summary (millions) Q12016 Q12015 Change aa Revenue $423.0 $437.9 (3%) 2% Adjusted Operating Income* $48.3 $49.5 (2%) 5% Adjusted Operating Margin 11.4% 11.3% Adjusted EPS* $0.58 $0.56 4% 11% * Strong revenue growth in Talent Solutions (+56%, including inorganic growth in Corporate Lear
Slide 5: Research
) Research (millions) Q12016 Q12015 %ofRevenue Change (ex-FX) Journal Subscriptions $157.2 $168.8 66% (1%) Author-Funded Access $5.7 $5.4 2% 14% Licensing, Reprints, Backfiles, and Other $39.3 $43.5 17% (2%) Total Journal Revenue $202.2 $217.8 85% (1%) Print Books $23.5 $25.0 10% (196) Digital Books
Slide 6: Professional Development
Professional Development (millions) Q12016 Q12015 %ofRevenue Change (ei Print Books $48.7 $52.9 49% (5%) Digital Books $10.6 $10.9 11% (196) Online Test Preparation and Certification $7.9 $5.7 8% 40% Other Knowledge Service Revenue $5.4 $5.7 6% (4%) Total Knowledge Services $72.7 $75.2 74% (1%) Asse
Slide 7: Education
) Education (millions) Q1 2016 Q12015 f Revenue — Change (ex-FX) Print Textbooks $34.5 $44.5 39% (17%) Digital Books $5.8 $5.7 7% 6% Total Books $40.3 $50.2 46% (15%) Custom Material $22.7 $19.6 26% 16% Course Workflow (WileyPLUS) $1.0 $13 1% (7%) Online Program Management (Deltak) $20.5 $16.2 24% 2
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) Qi 2016* 1 2015* Distribution and Operation Services $20.5 $23.8 (9% Technology and Content Management $60.8 $61.9 2% Finance $12.7 $13.7 (2%) Other Administration $29.5 $27.4 12% Total $123.4 $126.8 2% * Distribution and Operation Services cost reduct
Slide 9: Balance Sheet
) Balance Sheet Balance Sheet (millions) As of 7/31/15 As of 7/31/14 Cash and Cash Equivalents $369.4 $255.9 Short Term Debt $100.0 so Long Term Debt $750.5 $788.0 Net Debt $481.1 $532.1 Net Debt to adjusted EBITDA (ttm) 1.1« 1.3x * Strong balance sheet provides flexibility for investment and return
Slide 10: Cash Flow
} Cash Flow Cash Flow (millions) Net Income Cash From Operations Composition Spending Capex (Technology) Free Cash Flow Selected Uses of Cash: Acquisitions Dividends Share Repurchases Q12016 $32.5 ($124.1) ($8.3) ($22.3) ($154.6) $2.2 $17.6 $12.7 Q12015 $33.6 ($102.2) ($7.1) ($14.0) ($123.3) $170.9
Slide 11: Targeting Competitive Cost Benchmarks
e Targeting Competitive Cost Benchmarks * Key programs initiated to achieve competitive cost benchmarks * Current focus is alignment of expenses to our evolving revenue profile and opportunities in shared services * Savings to be initially driven by IT, Finance, and Distribution & Operations * ERP w
Slide 12: FY16 Outlook
B FY16 Outlook Metric Expectation Operational Revenue Growth Low-Single Digit Operational EPS Growth Flat Excludes non-performance items such as the time-based journal revenue shift and the impact of foreign exchange, as welll as unusual charges or credits * Steady growth in journals and double-digi
Slide 13: Summary
> Summary * Overall revenue growth (+2%) reflects stable journal revenue and continued progress in strategic growth opportunities * Double-digit adjusted earnings growth (+11%) driven by revenue growth, cost reductions, and lower tax expense partially offset by investment in Online Program Managemen
Slide 14: Wiley
WILEY First Quarter Fiscal 2016 Earnings Report September 9, 2015