John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2017 Earnings Presentation
15 slides from John Wiley & Sons's earnings presentation, Sep 7, 2016
Slide 1: First Quarter 2017 Earnings Report
First Quarter 2017 Earnings Report September 7, 2016
Slide 2: About Wiley
About Wiley Wiley is a global provider of knowledge and knowledge‐enabled services that improve outcomes in areas of research, professional practice and education. Through its Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference w
Slide 3: First Quarter Summary
First Quarter Summary • Revenue decline of 2% at constant currency (‐4% GAAP), with growth in Journals (+4%) and continued double‐digit growth from Solutions offset by weakness in Books businesses (‐16%), particularly Education • Adjusted EPS decline (‐9% excluding currency, ‐4% GAAP) due to revenue
Slide 4: First Quarter Performance
First Quarter Performance (millions) Q1 2017 Q1 2016 Change Change (ex‐FX) Revenue $404.3 $423.0 (4%) (2%) Adjusted Operating Income* $42.9 $48.3 (11%) (9%) Adjusted Operating Margin 10.6% 11.4% Adjusted EPS* $0.52 $0.58 (10%) (9%) • Revenue growth in Journals and Solutions businesses offset by decl
Slide 5: Research
Research % of (millions) Q1 2017 Q1 2016 Change (ex‐FX) Revenue Journal Subscriptions $160.1 $159.1 68% 3% Author‐Funded Access $7.5 $5.7 3% 39% Licensing, Reprints, Backfiles, and Other $37.4 $37.6 16% 3% Total Journal Revenue $205.0 $202.4 87% 4% Print Books $18.6 $23.4 8% (17%) Digital Books $8.4
Slide 6: Wiley to Acquire Atypon
Wiley to Acquire Atypon Company Leading research publishing software and service provider founded in 1996; over 260 employees; based in Santa Clara, CA Solutions Literatum: best‐in‐class, SAAS‐based, publishing platform focused on academic research market, enabling content hosting, presentation, man
Slide 7: Key Reasons for Acquisition
Key Reasons for Acquisition • Atypon growing annually at double‐digit rates historically Drive revenue growth • Enhanced services for potential society partners in Research • Ability to offer new technology‐enabled services and features for Wiley and all Atypon clients • Wiley expects significant co
Slide 8: Professional Development
Professional Development (millions) Q1 2017 Q1 2016 % of Revenue Change (ex‐FX) Print Books $41.5 $48.7 43% (13%) Digital Books $11.2 $10.6 12% 7% Online Test Preparation and Certification $9.7 $7.9 10% 23% Other Knowledge Service Revenue $4.7 $5.4 5% (11%) Total Knowledge Services $67.1 $72.6 70% (
Slide 9: Education
Education (millions) Q1 2017 Q1 2016 % of Revenue Change (ex‐FX) Print Textbooks $23.5 $34.5 32% (31%) Digital Books $4.8 $5.8 7% (14%) Total Books $28.3 $40.3 38% (28%) Custom Material $19.4 $22.7 26% (15%) Course Workflow (WileyPLUS) $0.87 $1.0 1% (15%) Online Program Management (Deltak) $23.2 $20
Slide 10: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) Q1 2017* Q1 2016* Change (ex‐FX) Distribution and Operation Services $19.5 $19.9 2% Technology and Content Management $70.1 $60.8 17% Finance $11.6 $13.4 (12%) Other Administration $20.2 $29.1 (29%) Total $121.4 $123.2 0% • Technology spend (excluding
Slide 11: Balance Sheet
Balance Sheet Balance Sheet (millions) As of 7/31/16 As of 7/31/15 Cash and Cash Equivalents $185.9 $369.4 Short Term Debt $0 $100.0 Long Term Debt $653.0 $750.5 Net Debt $467.1 $481.1 Net Debt to adjusted EBITDA (ttm) 1:4 1:2 • Strong balance sheet continues to provide flexibility for investment an
Slide 12: Cash Flow
Cash Flow • Free Cash Flow use variance due to lower cash earnings from Cash Flow (millions) Q1 2017 Q1 2016 operations and higher incentive payments Net Income $31.0 $32.5 • Full year 2017 Technology, Property Cash From Operations ($136.7) ($124.1) and Equipment spend to be $115M; Composition Spend
Slide 13: FY17 Outlook Reaffirmed
FY17 Outlook Reaffirmed Metric Expectation Operational Revenue Performance Flat Operational EPS Performance Mid‐Single Digit Decline Excludes non‐operational items such as the time‐based journal revenue shift, the impact of foreign exchange, and certain charges and credits. Also excludes Atypon. Gui
Slide 14: Summary
Summary • Revenue decline of 2% at constant currency (‐4% GAAP), with growth in Journals (+4%) and continued double‐digit growth from Solutions offset by weakness in Books businesses (‐16%), particularly Education • Adjusted EPS decline (‐9% excluding currency, ‐4% GAAP) due to revenue decline and h
Slide 15: First Quarter 2017 Earnings Report
First Quarter 2017 Earnings Report September 7, 2016