John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2023 Earnings Presentation
20 slides from John Wiley & Sons's earnings presentation, Sep 7, 2022
Slide 1: First Quarter Fiscal 2023 Earnings Review
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES First Quarter Fiscal 2023 Earnings Review September 7, 2022
Slide 2: Safe Harbor Statement; 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: Wiley at a glance
215 83% Years in Business Digital & Services* Wiley is unlocking human potential by powering scientific research and $2B+ 58% Revenue* Recurring Revenue* career-connected education $220M+ 29 Years Free Cash Flow* Dividend Increases *Full year 2022 results
Slide 4: First Quarter Takeaways
First Quarter Takeaways Revenue growth driven by continued strength in core growth areas offsetting challenges in enrollment-dependent lines Earnings performance largely as expected due to investment, higher employee costs, and increased travel and in-person activity Good momentum continuing in Rese
Slide 5: First Quarter Performance
First Quarter Performance Revenue* GAAP EPS** Adj. EPS Adj. EBITDA +4% -$0.56 -60% -34% $488M ($0.32) $0.36 $64M All variances at constant currency except GAAP EPS *Q1 organic revenue at CC +2% **GAAP EPS mainly due to $0.30/share restructuring charge and accelerated amortization of Mthree brand ▪ R
Slide 6: Segment Review, Financial Profile, Outlook
Segment Review Financial Profile Outlook
Slide 7: Research
Research (millions) Q1 2023 Change Change CC Research Publishing $240 (2%) 2% Research Solutions** $35 12% 17% TOTAL REVENUE* $275 0% 4% ADJUSTED EBITDA $93 (9%) ADJ. EBITDA MARGIN 34% ▪ Research Publishing - growth driven by continued momentum in open access ▪ Research Solutions** – growth driven b
Slide 8: Academic & Professional Learning
Academic & Professional Learning (millions) Q1 2023 Change Change CC Education Publishing $63 (5%) (2%) Professional Learning $70 (4%) 0% TOTAL REVENUE $133 (5%) (1%) ADJUSTED EBITDA $18 (30%) ADJ. EBITDA MARGIN 13% ▪ Education Publishing – decline in print course material offset growth in digital c
Slide 9: Education Services
Education Services (millions) Q1 2023 Change Change CC University Services $48 (13%) (12%) Talent Development $32 64% 76% TOTAL REVENUE* $80 7% 11% ADJUSTED EBITDA ($3) # ADJ. EBITDA MARGIN (3%) ▪ Talent Development – growth driven by continued strong demand from existing corporate clients and new c
Slide 10: Financial Position and Capital Allocation
Financial Position and Capital Allocation Modest Leverage: Net Debt/EBITDA ratio of 2.1 (TTM) $29M compared to 2.0 in prior year period $27M Free Cash Flow: Use of $114M (vs. use of $108M in Q1’22). FCF historically a use through 1H due to timing of annual journal subscription receipts. Wiley FCF ou
Slide 11: Operational Excellence
Operational Excellence Focus Area Q1 Activity • Targeted workforce reduction and real estate optimization resulted Restructuring in Q1 charge of $22M • Expected run rate savings of $35M (approx. $25M realized in FY23) • Wiley has reduced its office footprint by 28% since Spring 2020 Real Estate Opti
Slide 12: Fiscal 2023 Outlook Reaffirmed
Fiscal 2023 Outlook Reaffirmed Metric Fiscal 2022* Fiscal 2023 Outlook* FX Impact** Fiscal 2023 Outlook^ (Millions, except EPS) At constant currency Q1 average rates Q1 average rates Revenue $2,083 $2,175 to $2,215 ($50) $2,125 to $2,165 Adjusted EBITDA $433 $425 to $450 Immaterial $425 to $450 Adju
Slide 13: Fiscal 2023 Commitments
Fiscal 2023 Commitments Scientific Research Career-Connected 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 So
Slide 14: Research Commitments
Research Commitments FY23 Commitment Q1 Progress Drive publishing growth Grew article submissions by 7% and open access publishing output by 25%. Overall to meet global demand publishing output down due to timing; steady output growth expected in FY23 Announced 3 transformational agreements with lar
Slide 15: Education Commitments
Education Commitments FY23 Commitment Q1 Progress Expand corporate client base Signed 3 major multinational corporations as clients – two in insurance and one in for talent development financial services; strong pipeline across industry verticals Drive university partnerships Signed 47 new programs
Slide 16: Fiscal 2023: Driving Growth and Optimization
Fiscal 2023: Driving Growth and Optimization Driving solid organic revenue growth through consistent strategies aligned with market trends Navigating market-related enrollment challenges in our university-focused offerings Accelerating operational excellence initiatives and focusing on margin expans
Slide 17: Thanks for joining us.
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Thanks for joining us. IR website at https://investors.wiley.com/ Contact us for follow-up at: brian.campbell@wiley.com Direct +1 (201) 748-6874
Slide 18: Appendix – US GAAP to Non-GAAP EPS
Appendix – 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 July 31, on following page 2022 2021 US GA
Slide 19: Appendix – US GAAP to Non-GAAP EPS
Appendix – US GAAP to Non-GAAP EPS (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 information to investors. The su
Slide 20: Appendix – Net (Loss) Income to Adjusted EBITDA
Appendix – Net (Loss) Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET (LOSS) INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2022 2021 Net (Loss) Income $ (17,835) $ 13,830 Interest expense 6,332 4,63