John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2018 Earnings Presentation
13 slides from John Wiley & Sons's earnings presentation, Dec 6, 2017
Slide 1: Second Quarter 2018 Earnings Report
Second Quarter 2018 Earnings Report December 6, 2017 Speakers Matthew Kissner, Chairman Brian Napack, President and CEO John Kritzmacher, CFO & EVP, Technology and Operations Second Quarter 2018 Earnings | December 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: Introduction – Brian Napack
Introduction – Brian Napack • Leader, innovator, and entrepreneur in the media, education, and information industries • Former Senior Advisor, Providence Equity Partners • Former President, Macmillan • Experience serving on relevant boards such as Blackboard, Houghton Mifflin Harcourt, Ascend Learni
Slide 4: Highlights
Highlights • Revenue increased 6% to $452 million; +3% at constant currency • Adjusted EPS increased from $0.78 to $1.03 per share; +22% at constant currency • Operational excellence initiatives contribute to profit improvement across all three segments • Free Cash Flow (Less Product Development Spe
Slide 5: Quarterly Performance
Quarterly Performance (millions) Q2 2018 Q2 2017 Change ex-FX Revenue $451.7 $425.6 3% Adjusted Operating Income $81.4 $63.3 16% Adjusted Operating Margin 18.0% 14.9% Adjusted EPS $1.03 $0.78 22% Note: Adjusted operating income and margin exclude restructuring charges and credits in both years. Adju
Slide 6: Year-to-Date Performance
Year-to-Date Performance (millions) 1H 2018 1H 2017 Change ex-FX Revenue $863.2 $829.9 2% Adjusted Operating Income $125.2 $106.3 5% Adjusted Operating Margin 14.5% 12.8% Adjusted EPS $1.62 $1.31 12% Note: Adjusted operating income and margin exclude restructuring charges and credits in both years.
Slide 7: Research
Research (millions) Q2 2018 Q2 2017 % of Revenue Change ex-FX Journal Subscriptions $170.2 $159.7 74% 0% Open Access $9.4 $7.4 4% 25% Licensing, Reprints, Backfiles, Other $41.3 $36.4 18% 11% Total Journal Revenue $220.9 $203.5 96% 3% Publishing Technology Services (Atypon) $8.0 $2.5 4% TOTAL REVENU
Slide 8: Publishing
Publishing (millions) Q2 2018 Q2 2017 % Revenue Change ex-FX STM and Professional Publishing $71.5 $68.1 43% 4% Education Publishing $57.7 $57.5 35% (1%) Course Workflow (WileyPLUS) $16.3 $19.9 10% (18%) Test Preparation and Certification $7.9 $7.5 5% 5% Licensing, Distribution, Advertising, Other $
Slide 9: Solutions
Solutions (millions) Q2 2018 Q2 2017 % of Revenue Change ex-FX Education Services (OPM) $29.8 $28.0 52% 6% Professional Assessment $15.8 $16.2 27% (2%) Corporate Learning $12.3 $12.1 21% (4%) TOTAL REVENUE $57.9 $56.3 100% 2% ADJ. CONTRIBUTION TO PROFIT (CTP)* $6.7 $5.9 14% • Education Services: fou
Slide 10: Financial Position
Financial Position Balance Sheet (millions) As of 10/31/17 As of 10/31/16 Cash and Cash Equivalents $72.9 $267.4 Long Term Debt $563.0 $884.0 Net Debt $490.1 $616.6 Net Debt to Adjusted EBITDA (ttm) 1.3 1.9 Second Quarter 2018 Earnings | December 2017 10
Slide 11: Cash Flow
Cash Flow Cash Flow (millions) 1H 2018 1H 2017 • Cash flow Net Income $69.3 $19.5 improvement due to timing of cash Cash Used for Operating Activities ($46.4) ($86.1) collections and Technology, Property, and Equipment ($56.3) ($52.7) payments Product Development Spending ($15.1) ($16.6) • 551K shar
Slide 12: Fiscal 2018 Outlook
Fiscal 2018 Outlook Metric ($M, except EPS) FY17 Actual 1H18 Growth FY18 Expectation (at constant currency) (at constant currency) Revenue $1,718.5 +2% Approximately even Adj. Operating Income $228.4 +5% Approximately even Adj. EPS $3.01 +12% Low-single digit % decline Cash from Operations $314.5 +$
Slide 13: Summary
Summary • Second quarter revenue and adjusted EPS up 3% and 22%, respectively • First half revenue and adjusted EPS up 2% and 12% • Free Cash Flow (Less Product Development Spending) for the six months improved by $38 million • New President and CEO announced; New EVP of Publishing segment • Full ye