John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2019 Earnings Presentation
16 slides from John Wiley & Sons's earnings presentation, Sep 6, 2018
Slide 1: First Quarter 2019 Earnings Report
First Quarter 2019 Earnings Report September 6, 2018 Speakers Brian Napack, President and CEO John Kritzmacher, CFO & EVP, Operations First Quarter 2019 Earnings | September 2018
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: Non-GAAP Measures
Non-GAAP Measures In this presentation, management provides the following non-GAAP measures: • Adjusted Earnings Per Share (“Adjusted EPS”) • Free Cash Flow less Product Development Spending • Adjusted Operating Income and Margin • Adjusted Contribution to Profit (“Adjusted CTP”) • Results on a cons
Slide 4: Agenda
Agenda Business Update Results Financial Position Outlook Q&A First Quarter 2019 Earnings | September 2018 4
Slide 5: A Research and Education Company
A Research and Education Company We play in two large, important, and dynamic markets – 1 Research and Education We are well-positioned to capitalize on opportunities resulting from 2 transformation, both in traditional and emerging segments We have many foundational strengths and our core businesse
Slide 6: Key Initiatives
Key Initiatives Redefine publishing − Curated, high-quality content remains essential in the global knowledge economy − Products are evolving from static content to dynamic packages of content, services, and tools − Publishing is about helping our customers achieve their valued outcomes Expand beyon
Slide 7: First Quarter Highlights
First Quarter Highlights Momentum in Research Momentum in Education Academic society wins, open access growth, Successful product launches and new business rising journal impact, article output growth, and models introduced in publishing increasing content usage Two new university partnerships; two
Slide 8: First Quarter Results
First Quarter Results GAAP Q1 2019 Q1 2018 Change Change CC Revenue $410.9 $411.4 0% (1%) Operating Income $36.1 $12.6 $23.5 Operating Margin 8.8% 3.1% Diluted EPS $0.45 $0.16 $0.29 Non-GAAP Q1 2019 Q1 2018 Change Change CC Adjusted Operating Income $30.1 $41.9 (27%) Adjusted Operating Margin 7.3% 1
Slide 9: Research Segment
Research Segment (millions) Q1 2019 Q1 2018 Change Change CC Journal Subscriptions $166.0 $168.3 (1%) (2%) Open Access $10.9 $8.8 24% 22% Licensing, Reprints, Backfiles, Other $39.5 $38.2 3% 2% Total Journal Revenue $216.4 $215.4 0% 0% Publishing Technology Services (Atypon) $8.6 $8.3 4% 4% TOTAL RE
Slide 10: Publishing Segment
Publishing Segment (millions) Q1 2019 Q1 2018 Change Change CC STM and Professional Publishing $66.1 $63.6 4% 3% Education Publishing $38.2 $45.7 (16%) (16%) Course Workflow (WileyPLUS) $0.8 $1.2 (36%) (35%) Test Preparation and Certification $11.4 $11.5 (1%) 0% Licensing, Distribution, Advertising,
Slide 11: Solutions Segment
Solutions Segment (millions) Q1 2019 Q1 2018 Change Change CC Education Services $29.2 $26.3 11% 11% Professional Assessment $15.8 $14.9 6% 6% Corporate Learning $16.0 $15.3 5% 2% TOTAL REVENUE $61.0 $56.5 8% 7% CONTRIBUTION TO PROFIT (CTP) $3.2 ($2.0) +$5.2M Restructuring charges ($0.3) $2.8 ADJUST
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Balance Sheet (millions) As of 7/31/18 As of 7/31/17 Long Term Debt $507.5 $551.6 Net Debt $394.4 $467.5 Net-Debt-to-EBITDA* 1.2 1.6 Cash Flow Measures (millions) Q1 2019 Q1 2018 Net Cash Used in Operating Activities (GAAP) ($149.5) ($81.2) Additions to Technology, Proper
Slide 13: Fiscal 2019 Outlook
Fiscal 2019 Outlook Metric ($M, except EPS) FY18 Actual FY19 Expectation (% at constant currency) Revenue $1,796.1 Even with prior year Adj. EPS $3.43 Mid-single digit decline Cash Provided by Operating Activities $381.8 High-single digit decline Capital Expenditures* $150.7 Lower Revenue expectatio
Slide 14: Key Takeaways
Key Takeaways • Q1 results consistent with expectations • Good momentum in key parts of the business − Research: good underlying supply and demand − Solutions: strong momentum with customers, partners, capabilities − Publishing: new WileyPLUS, Inclusive Access model, growth in Trade • Investing in t
Slide 15: Appendix
Appendix First Quarter 2019 Earnings | September 2018
Slide 16: Adjusted EPS reconciliation to GAAP
Adjusted EPS reconciliation to GAAP JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended July 31, 2018 2017 GAAP Earnings Per Share - Diluted $ 0.45 $ 0.16 Adjustments: Restructuring and related (credits) c