John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2020 Earnings Presentation
15 slides from John Wiley & Sons's earnings presentation, Sep 5, 2019
Slide 1: First Quarter 2020 Earnings Report
First Quarter 2020 Earnings Report September 5, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements concerning the Company’s Fiscal Year 2020 Outlook, operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in
Slide 3: New segments aligned to current operations and growth strategy
New segments aligned to current operations and growth strategy Driving the world forward with research and education Research Education Driving the discovery, usage and impact of scholarly research Enabling powerful learning for personal and professional growth Research Publishing & Education Publis
Slide 4: First Quarter 2020 Takeaways
First Quarter 2020 Takeaways Revenue growth in Research and Education Services offset a decline in Education Publishing & Professional Learning − Research growth (+3%) driven by sustained momentum in Research Publishing (+3%) and Atypon (platforms) (+10%) − Education Services growth (+69%) reflects
Slide 5: First Quarter 2020 Performance
First Quarter 2020 Performance $70 $424 $0.45 $0.43 $411 $58 $0.21 Q1’19 Q1’19 Q1’20 Q1’20 Q1’19 Q1’19 $0.06 Q1’20 Q1’20 Revenue Adjusted EBITDA GAAP EPS Adjusted EPS Q1 2020 Reported Constant Currency (CC) Revenue +3% +5%* Adjusted EBITDA (18%) Adjusted EPS (53%) *Revenue at constant currency exclu
Slide 6: Research Publishing & Platforms
Research Publishing & Platforms Well-positioned, steadily growing, profitable % Change % Change CC (millions) Q1 2020 Favorable Favorable (Unfavorable) (Unfavorable) Research Publishing $220 1% 3% Research Platforms (Atypon) $9 10% 10% TOTAL REVENUE $229 2% 3% CONTRIBUTION TO PROFIT (CTP) $56 (3%) A
Slide 7: Education Publishing & Professional Learning
Education Publishing & Professional Learning Investing for profitable growth in high-demand disciplines and content delivery models % Change % Change CC (millions) Q1 2020 Favorable Favorable (Unfavorable) (Unfavorable) Education Publishing $66 (11%) (10%) Professional Learning $79 (4%) (2%) TOTAL R
Slide 8: Education Services
Education Services Organic revenue growth and Learning House acquisition enabling improved Adjusted EBITDA % Change % Change CC (millions) Q1 2020 Favorable Favorable (Unfavorable) (Unfavorable) TOTAL REVENUE* $49 69% 69% CONTRIBUTION TO PROFIT (CTP) ($7) (43%) ADJUSTED CTP ($5) 2% 2% ADJUSTED EBITD
Slide 9: Two acquisitions support Wiley's education market strategy
Two acquisitions support Wiley’s education market strategy Expanding Wiley’s position in high-demand disciplines, tech platforms and low-cost courseware May 31, 2019 July 1, 2019 Discipline Focus Foundation level statistics, chemistry, Computer Science and STEM mathematics, economics Platforms Alta:
Slide 10: Cash Flow, Balance Sheet & Cash Return to Shareholders
Cash Flow, Balance Sheet & Cash Return to Shareholders Free Cash Flow • Free Cash Flow improvement of $45M primarily Q119 Q120 Change driven by the timing of cash collections; Cash Flow ($170M) ($125M) +$45M from Operations and Free Cash Flow generally a use in first half of fiscal year Dividends an
Slide 11: Full Year Outlook Reaffirmed (Updated for zyBooks Acquisition)
Full Year Outlook Reaffirmed (Updated for zyBooks Acquisition) Original zyBooks Updated FY19 Actual FY20 Outlook* Impact FY20 Outlook* Revenue $1.80B $1.84B-$1.87B $15M $1.855B-$1.885B Adjusted EBITDA $388M $360-$375M ($3M) $357-$372M Adjusted EPS $2.96 $2.45-$2.55 ($0.10) $2.35-$2.45 Free Cash Flow
Slide 12: First Quarter 2020 Takeaways
First Quarter 2020 Takeaways Revenue growth in Research and Education Services offset a decline in Education Publishing & Professional Learning − Research growth (+3%) driven by sustained momentum in Research Publishing (+3%) and Atypon (platforms) (+10%) − Education Services growth (+69%) reflects
Slide 13: Upcoming events
Upcoming events: Annual Shareholder Meeting Thursday September 26 at 8am ET www.virtualshareholdermeeting.com/JWA2019 Wiley Investor Day Friday October 4 at 9am-12:30pm ET Hoboken, NJ USA Contact Brian Campbell for more details – brian.campbell@wiley.com 13
Slide 14: Appendix: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS
Appendix JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended July 31, 2019 2018 GAAP Earnings Per Share - Diluted $ 0.06 $ 0.45 Adjustments: Restructuring and related charges (credits) (A) 0.14 (0.08) Fore
Slide 15: Appendix: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Appendix JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2019 2018 Net Income $ 3,624 $ 26,295 Interest expense 6,077 2,796 Provision for income taxes 343 7,786 Depreciation and amo