John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q3 2014 Earnings Presentation
11 slides from John Wiley & Sons's earnings presentation, Mar 11, 2014
Slide 1: Third Quarter Fiscal 2014 Earnings
Third Quarter Fiscal 2014 Earnings March 11, 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: Third Quarter 2014 Summary
Third Quarter 2014 Summary Modest revenue growth (+1% adjusted) • Steady growth in research journals, including subscriptions and author- funded open access • Strong growth in Professional and Education solutions, including Online Training and Assessment, Online Program Management and WileyPLUS • Co
Slide 4: Adjusted Performance
Adjusted Performance (millions) Q3 2014 Q3 2013 Change Change (excluding FX) Revenue $457.9 $458.6 0% 1% Operating Income $77.6 $81.6 (5%) (3%) EPS $0.93 $0.93 0% 0% Adjusted performance excludes third quarter 2014 restructuring charges and third quarter 2013 operational results from the divested co
Slide 5: Research Performance
Research Performance QUARTER YEAR-TO-DATE Change Change % of (millions) Q3 2014 Q3 2013 (excluding FX) (excluding FX) Revenue Journal Subscriptions $154.0 $143.8 7% 4% 64% Print Books $31.0 $37.1 (16%) (11%) 12% Digital Books $12.6 $11.1 12% 25% 4% Open Access $4.4 $1.3 232% 213% 2% Other (reprints,
Slide 6: Professional Performance
Professional Performance QUARTER YEAR-TO-DATE Change Change % of (millions) Q3 2014 Q3 2013 (excluding FX) (excluding FX) Revenue Print Books $64.8 $71.5 (9%) (7%) 68% Digital Books $11.5 $10.5 9% 20% 13% Online Training & Assessment $8.8 $7.3 20% 27% 10% Other (rights, translations, advertising) $9
Slide 7: Education Performance
Education Performance QUARTER YEAR-TO-DATE Change Change % of (millions) Q3 2014 Q3 2013 (excluding FX) (excluding FX) Revenue Print Textbooks $54.4 $62.4 (8%) (9%) 47% Binder & Custom Product $12.9 $12.5 3% 12% 15% Online Program Management $19.1 $17.1 12% 193% 17% Digital Books $8.0 $8.8 (8%) 15%
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs Q3 YTD (millions spent) Q3 2014 Q3 2013 Change Change Ex-foreign exchange Ex-foreign exchange Distribution $24.4 $25.9 (5%) (4%) Technology $43.9 $42.4 4% 17% Finance $11.0 $10.3 8% 4% Other Administration $21.2 $17.3 23% 11% Total $100.4 $95.9 5% 8% Adjusted Shared Se
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Net debt at $318M vs. $449M at prior year – Net Debt to EBITDA at 0.8 at end of January (ttm) • YTD Free Cash Flow ($84.6M) even with prior year – YTD 2014 lower cash collections and higher payments related to the restructuring program offset lower German tax appeal dep
Slide 10: Restructuring Update
Restructuring Update • Action plans approved through Q3 are expected to achieve approximately $75M of the $80M in run-rate savings starting in fiscal 2015 – More than 50% expected to fall to bottom line; the rest reinvested – Total restructuring charges since inception of $51.8M – Q4 restructuring c
Slide 11: YTD Summary
YTD Summary YTD revenue growth +4% adjusted • Steady growth in research journals, including subscriptions and author-funded open access • Strong growth in Professional and Education solutions, including Online Training and Assessment, Online Program Management and WileyPLUS • Continuing transition f