John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Wiley John & Sons — Q1 FY2014 Earnings Presentation
12 slides from John Wiley & Sons's earnings presentation, Sep 9, 2013
Slide 1: First Quarter Fiscal 2014 Earnings
WILEY First Quarter Fiscal 2014 Earnings September 9, 2013
Slide 2: Background
Background 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,
Slide 3: First Quarter 2014 Highlights
First Quarter 2014 Highlights Significant progress in transforming to a provider of digital knowledge and knowledge-enabled services * Digital knowledge and knowledge-enabled services now 52% of revenue (up from 45% a year ago) * Print books now down to 31% of revenue Solid adjusted revenue growth *
Slide 4: Adjusted Performance
Adjusted Performance FY14 FY13 chanee (excluding Fx) Revenue $411.0 $398.3 4% Operating Income $43.3 $44.7 (1%) EPS $0.51 $0.52 2% ‘Adjusted performance excludesthe operatingresults of the divested consumer publishing program, sold in FY13; the first quarter 2014 and 2013 restructuring charges of $7
Slide 5: Research Performance
Research Performance (millioi 2014 2013 aes % of Revenue Journal Subscriptions $160.2 $155.6 4% 65% Print Books $27.4 $29.5 (6%) 11% Digital Books $9.6 $7.6 28% 4% Open Access $3.3 $0.6 450% 1% Other (reprints, backfiles, rights, advertising) $45.3 $42.6 7% 19% Total Revenue $245.8 $235.9 5% 100% Ad
Slide 6: Professional Performance
Professional Performance s) 12014 % of Revenue Print Books $57.0 68% Digital Books $10.3 12% Online Training & Assessment $8.1 10% Other (rights, translations, advertising) $8.7 10% Adjusted Revenue $84.1 100% Divested Consumer Programs $0.0 0% Total Revenue $84.1 100% Adjusted Contribution to Profi
Slide 7: Education Performance
Education Performance jillions) 2014 2013 pate % of Revenue Print Textbooks $41.4 $48.4 (13%) 51% Custom & Binder Print $16.2 $16.3 (1%) 20% Online Program Mgmt $14.7 so N/A 18% Digital Books $4.6 $4.3 7% 6% WileyPLUS $14 $0.8 50% 1% Other $3.1 $3.0 13% 4% Revenue $81.1 $72.8 13% 100% Adjusted Contr
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spe: 2014 2013 Change Excforeign exchange Distribution $24.5 $25.7 (3%) Technology $44.9 $36.3 24% Finance $10.3 $10.4 0% Other Administration $23.5 $22.5 5% Total $103.2 $94.9 9% Adjusted Shared Services Costs exclude first quarter 2014 and 2013 restructurin
Slide 9: Balance Sheet
Balance Sheet * Net debt at $470 million vs. $365 million at prior year due to FY13 Deltak and ELS acquisitions totaling $244 million in cash. Net debt-to-EBITDA (ttm) ratio at 1.2 ° Deferred revenue at $265 million vs. $239 million due to solid journal subscription growth, as well as Inscape and Wi
Slide 10: Cash Flow & Usage
Cash Flow & Usage (millions) Q12014 Q12013 Cash Used for Ops ($56.7) ($78.3) Capex Composition ($8.9) ($11.9) Technology, etc. ($13.8) ($15.9) Total Capex ($22.7) ($27.8) Free Cash Flow ($79.3) ($106.1) Free Cash Flowis negative for Wiley in the first half of a fiscal year mainly due to timing of an
Slide 11: Restructuring Activity
Restructuring Activity Expecting $80 million in run-rate savings beginning in FY15 More than half to improve earnings; remainder reinvested in the business Q1 charge of $7.8 million for restructuring (including severance, consulting fees and distribution facility relocation costs) Actions initiated
Slide 12: Summary & Outlook
Summary & Outlook Continued progress in transforming to a provider of digital knowledge and knowledge-enabled services (now 52% of revenue) Improved revenue growth from journal subscriptions and digital books Solid performance from new businesses Restructuring well on track to realize significant sa