John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2014 Earnings Presentation
14 slides from John Wiley & Sons's earnings presentation, Jun 17, 2014
Slide 1: Fourth Quarter and Fiscal Year 2014 Earnings Update
Fourth Quarter and Fiscal Year 2014 Earnings Update June 17, 2014
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: Fiscal Year 2014 Summary
Fiscal Year 2014 Summary • Adjusted revenue of $1.78B (+4% growth) – Steady growth in the Research segment coming from journals subscriptions, author- funded open access, and digital books – Strong growth in Professional and Education solutions, including Online Training and Assessment, Online Progr
Slide 4: Adjusted Performance
Adjusted Performance (millions) Q4 2014 Q4 2013 Change Change (excluding FX) Revenue $457.1 $440.7 4% 2% Operating Income $62.9 $59.0 7% 3% EPS $0.77 $0.71 8% 4% Adjusted performance excludes: fourth quarter 2014 restructuring charges and fourth quarter 2013 restructuring charges, impairment charges
Slide 5: Research Performance
Research Performance QUARTER FULL YEAR Change Change % of (millions) Q4 2014 Q4 2013 FY14 (excluding FX) (excluding FX) Revenue Journal Subscriptions $188.9 $180.0 2% $667.3 4% 64% Print Books $24.7 $26.6 (9%) $114.1 (11%) 11% Digital Books $16.1 $11.7 32% $47.7 27% 5% Open Access $6.1 $2.5 142% $17
Slide 6: Professional Development Performance
Professional Development Performance QUARTER FULL YEAR Change Change % of (millions) Q4 2014 Q4 2013 FY14 (excluding FX) (excluding FX) Revenue Print Books $52.9 $58.8 (10%) $236.3 (8%) 65% Digital Books $13.4 $14.5 (8%) $47.7 10% 13% Online Training & Assessment $13.5 $8.8 53% $40.2 35% 11% Other (
Slide 7: Recent Acquisitions
Recent Acquisitions Primary Purchase FY13 FY13 EBITDA Business Customers Price Revenue* Margin Learning $37M 24% CrossKnowledge Corporations $175M solutions (ending June 30, 2013) (ending June 30, 2013) Profiles Pre-Hire $27M 19% Corporations $51M International Assessment (ending Dec 31, 2013) (endi
Slide 8: Education Performance
Education Performance QUARTER FULL YEAR Change Change % of (millions) Q4 2014 Q4 2013 FY14 (excluding FX) (excluding FX) Revenue Print Textbooks $22.2 $24.3 (5%) $163.2 (9%) 44% Binder & Custom Product ($0.41) $0.06 (853%) $43.6 11% 12% Online Program Management $19.8 $16.6 19% $70.2 +$36M 19% Digit
Slide 9: Shared Services Costs
Shared Services Costs QUARTER YEAR (millions spent) Q4 2014 Q4 2013 Change FY14 Change (Excluding FX) (Excluding FX) Distribution $22.8 $24.7 (9%) $96.1 (5%) Technology $49.4 $46.7 5% $183.3 13% Finance $12.4 $10.0 23% $44.7 9% Other Administration $27.8 $25.1 10% $96.1 11% Total $112.3 $106.5 5% $4
Slide 10: Balance Sheet
Balance Sheet (millions) As of 4/30/14 As of 4/30/13 Cash and Cash Equivalents $486.4 $334.1 Long Term Debt $700.1 $673.0 Net Debt $213.7 $338.9 Net Debt to EBITDA (ttm) 0.5 0.8 • April 30, 2014 results do not include $175M purchase of CrossKnowledge on May 1 – Financed with overseas cash-on-hand an
Slide 11: Cash Flow
Cash Flow (millions) FY14 FY13 Net Income $160.5 $144.2 FY14 acquisitions include Profiles Items of Note International and Elan Guides Restructuring & Impairment Charges $47.5 $60.0 • CrossKnowledge ($175M) closed on May 1 • Financed through overseas cash-on-hand Restructuring Payments ($28.3) ($5.6
Slide 12: Restructuring Summary
Restructuring Summary • FY14 restructuring savings ($38M) higher than expected; other realized savings (improvements in procurement, etc.) contributed $9M • Total restructuring program charges of $67M taken • $80 million in run-rate savings expected for FY15; approximately 50% reinvested Savings Con
Slide 13: Looking Ahead: FY15 Outlook
Looking Ahead FY15 Outlook Metric Including Recent Acquisitions Revenue growth % Mid-single digit Adjusted EPS $3.25 to $3.35* *CrossKnowledge and Profiles International expected to be dilutive by $0.10/share in FY15, primarily due to a write-down of deferred revenue under purchase accounting FY17 G
Slide 14: Fourth Quarter and Fiscal Year 2014
Fourth Quarter and Fiscal Year 2014 Earnings Update June 17, 2014