John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2022 Earnings Presentation
24 slides from John Wiley & Sons's earnings presentation, Jun 15, 2022
Slide 1: Fourth Quarter and Fiscal 2022 Earnings Review
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Fourth Quarter and Fiscal 2022 Earnings Review Brian Napack, President and CEO Christina Van Tassell, EVP and CFO June 15, 2022
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements In this presentation, management provides the following non-GAAP concerning the Company's operations, performance, and financial performance measures: condition. Reliance should not be placed on for
Slide 3: $2.08B Revenue, $433M Adjusted EBITDA, $223M Free Cash Flow
$2.08B 83% Revenue Digital & Services $433M 58% Adjusted EBITDA Recurring Revenue* $223M 28 Years Free Cash Flow Dividend Increases *Recurring revenue is revenue that is contractually obligated or set to recur with a high degree of certainty 3
Slide 4: Leader in Scientific Research & Career-Connected Education
Leader in Scientific Research & Career-Connected Education Cross the divide to Research Research lead the transition to Publishing Solutions open research Bridge the gap to Education Education connect education to Products Services career outcomes 4
Slide 5: Fiscal 2022 Review
Fiscal 2022 Review Metric FY22 Outlook FY22 Reported FY22 Growth* FY20-FY22 (Millions, ex-EPS) CAGR* Revenue $2,070 to $2,100 $2,083 +7% +7% Adj. EBITDA $415 to $435 $433 +3% +10% Adj. EPS** $4.00 to $4.25 $4.16 +4% +12% Free Cash Flow** $200 to $220 $223 -13%# +14% • Delivered on outlook even with
Slide 6: Fiscal 2022: Leading Transition to Open Research
Fiscal 2022: Leading Transition to Open Research FY22 Commitment Outcomes Publish more research 7% growth in output. Down 3% organically vs. COVID surge; 2-year CAGR +6%; to meet global demand 19% growth in pure OA output (excluding Hindawi); pricing power strong Drive Hindawi integration Integratio
Slide 7: Fiscal 2022: Connecting Education to Career Outcomes
Fiscal 2022: Connecting Education to Career Outcomes FY22 Commitment Outcomes Expand online degree programs 5 universities signed, 3 not renewed; 81 online degree programs added and drive online enrollment Online enrollment growth (+1%) slowed due to strong labor market Expand student acquisition Ac
Slide 8: Fiscal 2022: Driving Impact and ESG Progress
Fiscal 2022: Driving Impact and ESG Progress Drive real-world impact in line with UN Global Compact √ Drive CarbonNeutral® certification across our Global Operations; 100% renewable energy through green tariffs and energy attribute certificates; progress toward science-based targets √ Drive DEI init
Slide 9: Performance, Financial Position, Outlook
Performance Financial Position Outlook
Slide 10: Fourth Quarter 2022 Summary
Fourth Quarter 2022 Summary Revenue* GAAP EPS Adj. EPS Adj. EBITDA +4% +4% -6% Flat $546M $0.76 $1.08 $111M All variances at constant currency except GAAP EPS *Q4 organic revenue at CC +2% ▪ Strong continued momentum in open research, research partner solutions, corporate talent development, and cor
Slide 11: Research Publishing & Platforms
Research Publishing & Platforms (millions) Q4 2022 Change Change CC FY 2022 Change Change CC Research Publishing $282 4% 6% $1,057 9% 8% Research Platforms $16 43% 44% $54 27% 27% TOTAL REVENUE $298 5% 8% $1,111 9% 9% ADJUSTED EBITDA $101 12% $390 10% ADJ. EBITDA MARGIN 34% 35% Revenue at constant c
Slide 12: Academic & Professional Learning
Academic & Professional Learning (millions) Q4 2022 Change Change CC FY 2022 Change Change CC Education Publishing $89 (8%) (7%) $350 (3%) (4%) Professional Learning $71 (5%) (3%) $297 6% 6% TOTAL REVENUE $160 (7%) (5%) $647 1% 1% ADJUSTED EBITDA $44 (3%) $181 10% ADJ. EBITDA MARGIN 27% 28% Full Yea
Slide 13: Education Services
Education Services (millions) Q4 2022 Change Change CC FY 2022 Change Change CC University Services $58 (9%) (9%) $226 (1%) (1%) Talent Development $29 73% 78% $99 74% 72% TOTAL REVENUE $87 8% 9% $325 14% 14% ADJUSTED EBITDA $11 (29%) $37 (26%) ADJ. EBITDA MARGIN 12% 12% Revenue at constant currency
Slide 14: Strong Cash Flow and Balance Sheet
Strong Cash Flow and Balance Sheet Free Cash Flow Net Debt to EBITDA millions $257* 1.7 1.6 1.6 $223 $173 FY20 FY21 FY22 FY20 FY21 FY22 *elevated by $21M tax refund and lower capex spend due to COVID 14 Q422 Earnings Presentation.pptx
Slide 15: Capital Allocation
Capital Allocation Item FY22 Highlights FY20 FY21 FY22 Capex Research: Automation and Platform development $115 $103 $116 Education: Courseware development Corporate: Backoffice systems Acquisitions J&J Editorial (Research) $230 $300 $76 Knowledge Unlatched (Research) eJournal Press (Research) XYZ M
Slide 16: Operational Excellence Update
Operational Excellence Update Restructuring • Targeted reduction to generate an approximate $19-$21M charge in Q1, to also include real estate optimization • Expected to yield approximately $30-$35M in run rate savings ($20-$25M in Fiscal 23, already reflected in current outlook) Real Estate Optimiz
Slide 17: Fiscal 2023: Outlook
Fiscal 2023: Outlook Metric Fiscal 2022* Fiscal 2023 Outlook* FX Impact** Fiscal 2023 Outlook^ (Millions, except EPS) At Constant Currency At Spot Rates Revenue $2,083 $2,175 to $2,215 ($75) $2,100 to $2,140 Adjusted EBITDA $433 $425 to $450 ($25) $400 to $425 Adjusted EPS $4.16 $3.70 to $4.05 ($0.3
Slide 18: Fiscal 2023: Driving Growth and Optimization
Fiscal 2023: Driving Growth and Optimization Driving solid organic revenue growth through consistent strategies aligned with market trends Prioritizing reinvestment in Research Publishing & Solutions, and Corporate Talent Development Accelerating operational excellence initiatives and focusing on ma
Slide 19: Fiscal 2023: Key Priorities
Fiscal 2023: Key Priorities Research Education Drive publishing growth to meet global demand Expand corporate client base for talent development Extend transformational agreements globally Drive university partnerships and programs Drive growth and go-to-market in Research Solutions Drive differenti
Slide 20: Key Takeaways
Key Takeaways Delivered on Fiscal 2022 outlook for revenue, earnings and cash flow Driving solid organic revenue growth from positive market dynamics in key areas Favorable long-term growth trends continuing in scientific research and career-connected education Accelerating operational excellence in
Slide 21: Thank you for joining us
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Thank you for joining us Investor website at https://investors.wiley.com/ Q1 2023 Earnings Call – September 2022 Contact us for follow-up at: 201.748.6874 or brian.campbell@wiley.com
Slide 22: Appendix – Reconciliation of US GAAP to Non-GAAP EPS
Appendix – Reconciliation of US GAAP to Non-GAAP EPS JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS See accompanying notes Three Months Ended Year Ended on following
Slide 23: Appendix – Reconciliation of US GAAP to Non-GAAP EPS
Appendix – Reconciliation of US GAAP to Non-GAAP EPS Notes: (1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful informa
Slide 24: Appendix – Reconciliation of Net Income to Adjusted EBITDA
Appendix – Reconciliation of Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Year Ended April 30, April 30, 2022 2021 2022 2021 Net Income $ 43,146 $ 41,329