John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2022 Earnings Presentation
18 slides from John Wiley & Sons's earnings presentation, Sep 2, 2021
Slide 1: First Quarter Fiscal 2022 Earnings Review
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES First Quarter Fiscal 2022 Earnings Review September 2, 2021
Slide 2: Safe Harbor Statement / Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements In this presentation, management provides the following non-GAAP concerning the Company's operations, performance, and financial performance measures: condition. Reliance should not be placed on for
Slide 3: Wiley unlocks human potential by powering discovery and learning
Wiley unlocks human potential by powering discovery and learning
Slide 4: First Quarter Summary
First Quarter Summary Revenue GAAP EPS Adj. EPS Adj. EBITDA +9%* -17% +17% +12% $488M $0.24 $0.54 $95M *Organic revenue +7% Consistent strategies and solid execution driving strong revenue growth across all segments ▪ Research (+10%) ▪ Academic & Professional Learning (+7%) ▪ Education Services (+13
Slide 5: Strong momentum across academic and corporate markets
Strong momentum across academic and corporate markets Q1 Metrics Enabling Discovery Powering Education Shaping Workforces Open Research Revenue Digital Courseware Revenue Talent Development Revenue +56% +31% +34% Corporate Revenue (Research) Online Program Enrollment Professional Learning Revenue +3
Slide 6: Research Publishing & Platforms
Research Publishing & Platforms (millions) Q1 2022 Change Change CC Research Publishing $264 14% 10% Research Platforms $11 10% 10% TOTAL REVENUE* $275 14% 10% ADJUSTED EBITDA $103 12% ADJ. EBITDA MARGIN 37% ▪ Organic growth in research article output (+5%) and usage (+25%) ▪ Strategic read-and-publ
Slide 7: Academic & Professional Learning
Academic & Professional Learning (millions) Q1 2022 Change Change CC Education Publishing $66 4% 1% Professional Learning $73 16% 13% TOTAL REVENUE $139 10% 7% ADJUSTED EBITDA $27 37% ADJ. EBITDA MARGIN 19% ▪ Education Publishing driven by growth in digital content and courseware, partly offset by c
Slide 8: Education Services
Education Services (millions) Q1 2022 Change Change CC University Services $54 8% 8% Talent Development $20 45% 34% TOTAL REVENUE $74 16% 13% ADJUSTED EBITDA $6 (21%) ADJ. EBITDA MARGIN 9% ▪ Solid growth in online enrollment (+9%) and 13 new degree programs signed ▪ Early indications of slowing onli
Slide 9: Financial Position and Outlook
Financial Position and Outlook
Slide 10: Financial Position and Capital Allocation
Financial Position and Capital Allocation Modest Leverage: Net Debt/EBITDA ratio of 2.0 TTM inclusive of acquisitions, even with prior year $27M Free Cash Flow: Use of $108M (vs. use of $145M in Q1’21). FCF historically a use through 1H due to timing of $19M annual journal subscription receipts. Wil
Slide 11: Fiscal 2022 Growth and Optimization Initiatives
Fiscal 2022 Growth and Optimization Initiatives • Publish more to meet global demand Open Research • Leverage Hindawi acquisition to advance leadership position in OA • Scale service offerings for societies and corporations • Expand online degree programs and drive online enrollment Career-Connected
Slide 12: New Adjusted EPS
New Adjusted EPS Adjusted EPS - excluding the amortization of acquired intangibles (non-cash) - is more indicative of underlying operational performance Q1’22 Q1’21 FY21 FY20 Adjusted Income Before Taxes (previously reported) $39.2 $30.4 $207.8 $173.1 +Amortization of Acquired Intangible Assets(1) $
Slide 13: Fiscal 2022 Outlook Reaffirmed
Fiscal 2022 Outlook Reaffirmed Metric (Millions, except EPS) Fiscal 2021 Fiscal 2022 Outlook Revenue $1,942 $2,070 to $2,100 Adjusted EBITDA $419 $415 to $435 Adjusted EPS - former $2.92 $2.80 to $3.05 Adjusted EPS - newly defined $4.00 $4.00 to $4.25 Free Cash Flow $257 $200 to $220 13 Q122 Earning
Slide 14: Key Takeaways
Key Takeaways Consistent strategies and solid execution driving strong revenue growth across all segments ▪ Research (+10%) ▪ Academic & Professional Learning (+7%) ▪ Education Services (+13%) Strong profit performance driven by Research and Academic & Professional Learning Long-term trends accelera
Slide 15: Thanks for joining us.
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Thanks for joining us. IR website at https://investors.wiley.com/ Q2 2022 Earnings Call – December 7, 2021 Contact us for follow-up at: brian.campbell@wiley.com | +1(201) 748-6874
Slide 16: Appendix – Reconciliation of US GAAP to Non-GAAP
Appendix – Reconciliation of US GAAP to Non-GAAP JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS Three Months Ended July 31, Notes: 2021 2020 US GAAP Earnings Per Shar
Slide 17: Appendix – Previous Adjusted EPS to Newly Defined
Appendix – Previous Adjusted EPS to Newly Defined Fiscal Year 2022 Fiscal Year 2021 Fiscal Year Q1 Q1 Q2 Q3 Q4 Fiscal Year 2020 Non-GAAP Adjusted Income Before Taxes (Previously Reported) $ 39,181 $ 30,383 $ 70,664 $ 48,334 $ 58,385 $ 207,765 $ 173,119 Plus: Amortization of acquired intangible asset
Slide 18: Appendix – Reconciliation of Net Income to Adjusted EBITDA
Appendix – Reconciliation of Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2021 2020 Net Income $ 13,830 $ 16,334 Interest expense 4,639 4,614 Pro