John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2014 Earnings Presentation
12 slides from John Wiley & Sons's earnings presentation, Dec 10, 2013
Slide 1: Second Quarter Fiscal 2014 Earnings
Second Quarter Fiscal 2014 Earnings December 10, 2013
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: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights Strong revenue growth (+8% adjusted) • Continued growth in research journal subscription revenue • Strong solutions revenue growth in Professional Development and Education, including Online Assessment and Training, Online Program Management and WileyPLUS • Digital boo
Slide 4: Adjusted Performance
Adjusted Performance (millions) Q2 FY14 Q2 FY13 Change Change (excluding FX) Revenue $449.2 $417.7 8% 8% Operating Income $70.3 $67.1 5% 5% EPS $0.84 $0.75 12% 11% Adjusted performance for the quarter excludes: (1) operational results from the divested consumer publishing program; second quarter 201
Slide 5: Research Performance
Research Performance QUARTER YEAR‐TO‐DATE (millions) Q2 2014 Q2 2013 Change Change % of Revenue (excluding FX) (excluding FX) Journal Subscriptions $164.1 $162.2 2% 3% 65% Print Books $31.1 $34.7 (10%) (8%) 12% Digital Books $9.4 $6.4 45% 36% 4% Open Access $3.9 $1.8 117% 200% 1% Other (reprints, ba
Slide 6: Professional Performance
Professional Performance QUARTER YEAR‐TO‐DATE (millions) Q2 2014 Q2 2013 Change Change % of Revenue (excluding FX) (excluding FX) Print Books $61.6 $62.1 0% (7%) 67% Digital Books $12.6 $9.8 30% 26% 13% Online Training & Assessment $9.8 $6.8 44% 31% 10% Other (rights, translations, advertising) $8.5
Slide 7: Education Performance
Education Performance QUARTER YEAR‐TO‐DATE (millions) Q2 2014 Q2 2013 Change Change % of Revenue (excluding FX) (excluding FX) Print Textbooks $45.2 $49.1 (6%) (10%) 47% Binder & Custom Product $14.8 $10.6 40% 16% 17% Online Program Management $16.5 $0 17% Digital Books $9.4 $6.2 55% 35% 7% WileyPLU
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs Q2 YTD (millions spent) Q2 2014 Q2 2013 Change Change Ex‐foreign exchange Ex‐foreign exchange Distribution $24.5 $25.8 (4%) (4%) Technology $45.2 $36.2 25% 25% Finance $11.0 $10.6 5% 3% Other Administration $23.7 $22.3 7% 6% Total $104.3 $94.9 11% 10% Adjusted Shared S
Slide 9: Balance Sheet
Balance Sheet • Net debt at $498M vs. $609M at prior year – Net Debt to EBITDA at 1.2 at end of October (ttm) • Deferred Revenue increased nearly 29% to $138M, driven by growth in billings and collections including: – Journal subscription billings – Inscape Online Training and Assessment – WileyPLUS
Slide 10: Cash Flow and Usage
Cash Flow and Usage (millions) 1H 2014 1H 2013 Cash Used for Operations ($66.5) ($91.6) Capex Composition ($19.3) ($23.1) Technology, etc. ($26.2) ($28.3) Total Capex ($45.5) ($51.4) Free Cash Flow ($112.0) ($143.0) • Free Cash Flow year‐over‐year improvement due to $30M German tax appeal deposit in
Slide 11: Restructuring Update
Restructuring Update • Action plans approved through Q2 are expected to achieve approximately $70M of the $80M in run‐rate savings starting in fiscal 2015 – More than 50% expected to fall to bottom line; the rest reinvested – YTD restructuring savings of $10M and other savings of $4M • Total restruc
Slide 12: Summary and Outlook
Summary and Outlook Strong revenue growth (+8% adjusted) • Continued growth in research journal subscription revenue • Strong solutions revenue growth in Professional Development and Education • Digital book revenue up 40% across Wiley Double‐digit EPS growth (+11% adjusted) • Driven by revenue grow