John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2018 Earnings Presentation
12 slides from John Wiley & Sons's earnings presentation, Sep 7, 2017
Slide 1: First Quarter 2018 Earnings Report
First Quarter 2018 Earnings Report September 7, 2017 Speakers Matthew Kissner, Interim CEO and Chairman John Kritzmacher, CFO & EVP, Technology and Operations First Quarter 2018 Earnings | September 2017
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: Highlights
Highlights • Revenue increased 2% to $411 million; +1% at constant currency • Adjusted EPS increased 9% to $0.59 per share; -5% at constant currency • Operational excellence initiatives resulted in $29 million of restructuring and related charges, expected to yield $45 million in gross run-rate savi
Slide 4: Financial Performance
Financial Performance (millions) Q1 2018 Q1 2017 Change Change ex-FX Revenue $411.4 $404.3 2% 1% Adjusted Operating Income $43.8 $42.9 2% (13%) Adjusted Operating Margin 10.7% 10.6% Adjusted EPS $0.59 $0.54 9% (5%) Note: Adjusted operating income excludes restructuring and impairment charges and cre
Slide 5: Research – 54% of Wiley revenue
Research – 54% of Wiley revenue (millions) Q1 2018 Q1 2017 % of Revenue Change ex-FX Journal Subscriptions $168.3 $162.7 75% 0% Open Access $8.8 $7.5 4% 20% Licensing, Reprints, Backfiles, Other $38.3 $37.0 17% 6% Total Journal Revenue $215.4 $207.2 96% 2% Publishing Technology Services (Atypon) $8.
Slide 6: Publishing – 32% of Wiley revenue
Publishing – 32% of Wiley revenue (millions) Q1 2018 Q1 2017 % Revenue Change ex-FX STM and Professional Publishing $63.6 $70.7 48% (8%) Education Publishing $45.7 $54.9 35% (16%) Course Workflow (WileyPLUS) $1.2 $0.9 1% 40% Test Preparation and Certification $11.5 $9.6 9% 20% Licensing, Distributio
Slide 7: Solutions – 14% of Wiley revenue
Solutions – 14% of Wiley revenue (millions) Q1 2018 Q1 2017 % of Revenue Change ex-FX Education Services (OPM) $26.3 $23.2 47% 14% Professional Assessment $14.9 $13.5 26% 10% Corporate Learning $15.3 $15.4 27% (1%) TOTAL REVENUE $56.5 $52.1 100% 9% ADJ. CONTRIBUTION TO PROFIT (CTP)* $0.83 $0.15 • On
Slide 8: Financial Position
Financial Position Balance Sheet (millions) As of 7/31/17 As of 7/31/16 Cash and Cash Equivalents $84.1 $185.9 Long Term Debt $551.6 $653.0 Net Debt $467.5 $467.1 Net Debt to adjusted EBITDA (ttm) 1.4 1.4 First Quarter 2018 Earnings | September 2017 8
Slide 9: Cash Flow
Cash Flow Cash Flow (millions) YTD 2018 YTD 2017 • Cash flow Net Income $9.2 $31.0 improvement due Cash Provided by Operating Activities ($81.8) ($136.7) to timing of cash collections and Technology, Property, and Equipment ($30.1) ($20.8) payments Product Development Spending ($5.9) ($8.0) • Quarte
Slide 10: Fiscal 2018 Outlook
Fiscal 2018 Outlook Metric ($M) FY17 Actual FY18 Expectation (at constant currency) Revenue $1,718.5 Approximately even Adj. Operating Income $228.4 Approximately even Adj. EPS $3.01 Low-single digit % decline Cash from Operations $314.5 $350 million or higher Capex** $148.3 Slightly lower If curren
Slide 11: Beyond Fiscal 2018
Beyond Fiscal 2018 • Reinvestment in Research expected to accelerate revenue growth • Publishing segment to improve digital capabilities and delivery models • Solutions segment to turn EPS accretive • Considerable savings from operational excellence initiatives • Online library platform migration co
Slide 12: First Quarter Summary
First Quarter Summary • Revenue increased 2% to $411 million; +1% at constant currency • Adjusted EPS increased 9% to $0.59 per share; -5% at constant currency • Operational excellence initiatives resulted in $29M of restructuring and related charges, expected to yield $45M in gross run-rate savings