John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q3 FY2015 Earnings Presentation
13 slides from John Wiley & Sons's earnings presentation, Mar 10, 2015
Slide 1: Third Quarter Fiscal 2015 Earnings Update
Third Quarter Fiscal 2015 Earnings Update March 10, 2015
Slide 2: About Wiley / Safe Harbor Statement
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: Performance Summary
Performance Summary (millions) Q3 2015 Q3 2014 Change Change (ex-FX) Revenue $465.9 $457.9 2% 5% Adjusted Operating Income* $78.1 $77.6 (26%) 6% Adjusted EPS* $0.99 $0.93 (18%) 9% • Q3 revenue of $466M (+5% at constant currency) fueled by Research Communication/Journals (+5%), the contribution from
Slide 4: Research
Research Change (millions) Q3 2015 Q3 2014 % of Revenue (excluding FX) Journal Subscriptions $153.8 $154.0 62% 4% Funded Access $6.1 $4.3 2% 46% Other Journal Revenue $27.8 $27.5 11% 7% Total Research Communication $187.7 $185.8 76% 5% Print Books $27.8 $31.0 11% (8%) Digital Books $10.9 $12.6 4% (9
Slide 5: Professional Development
Professional Development Change (millions) Q3 2015 Q3 2014 % of Revenue (excluding FX) Print Books $56.0 $64.5 52% (11%) Digital Books $11.3 $13.1 10% (13%) Online Test Preparation and Certification $4.0 $3.5 4% 14% Other Knowledge Services $8.2 $6.6 8% 26% Total Knowledge Services $79.5 $87.7 73% (
Slide 6: Education
Education Change (millions) Q3 2015 Q3 2014 % of Revenue (excluding FX) Print Textbooks $40.5 $54.4 37% (23%) Digital Books $11.0 $8.0 10% 41% Total Books $51.5 $62.4 46% (14%) Custom Products $13.6 $12.9 12% 6% Course Workflow Solutions (WileyPLUS) $20.9 $18.6 19% 13% Education Services (Deltak) $2
Slide 7: Shared Services Costs
Shared Services Costs (millions spent) Q3 2015* Q3 2014* Change (excluding FX) Distribution and Operation Services $21.2 $25.2 (13%) Technology and Content Management $59.3 $58.4 3% Finance $13.6 $13.3 5% Other Administration $27.3 $22.6 23% Total $121.4 $119.5 4% • Distribution and Operation Servic
Slide 8: Restructuring
Restructuring Third Quarter Restructuring Charge ($24M) • Half of the charge related to the completion of real estate consolidations and dispositions in connection with prior restructuring actions • Remaining half for severance costs for reorganization and consolidation • Severance portion of the ch
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Balance Sheet (millions) As of 1/31/15 As of 1/31/14 • Short term debt enabling Cash and Cash Equivalents $260.2 $316.0 interest expense savings Short Term Debt $100.0 0 • Leverage remains low. Long Term Debt $588.1 $634.0 Higher net debt driven by 2014 Talent Solutions N
Slide 10: Currency Update
Currency Update • Approximately half of Wiley revenue is generated outside the US • Exposure most significant in USD:Euro and USD:British pound • Q3 FX Impact: ($13M) revenue and ($0.02) of EPS Moving Forward • Reaffirming FY15 guidance of mid-single digit revenue growth at constant currency and adj
Slide 11: Move to Time-Based Journal Subscription Agreements
Move to Time-Based Journal Subscription Agreements Moving to time-based digital journal subscription agreements for calendar year 2016 • Present agreements provide access to individually identified titles based on volume year of publication • Subscribers in established markets to be offered journal
Slide 12: Highlights
Highlights • Third quarter performance steady on a constant currency basis • Q3 Revenue +5% • Q3 Adjusted Operating Income +6% • Q3 Adjusted EPS +9% • Steady growth in Research Communication (journal) revenue • Continued double-digit growth in digital solutions revenue • Books revenue under sustaine
Slide 13: Third Quarter Fiscal 2015 Earnings Update
Third Quarter Fiscal 2015 Earnings Update March 10, 2015