John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2014 Earnings Presentation
12 slides from John Wiley & Sons's earnings presentation, Sep 9, 2013
Slide 1: First Quarter Fiscal 2014 Earnings
First Quarter Fiscal 2014 Earnings September p 9,, 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, m
Slide 3: First Quarter 2014 Highlights
First Quarter 2014 Highlights Significant progress in transforming to a provider of digital knowledge and knowledge‐enabled services • Digital knowledge and knowledge‐enabled services now 52% of revenue (up from 45% a year ago) • Print books now down to 31% of revenue Solid adjusted revenue growth •
Slide 4: Adjusted Performance
Adjusted Performance (millions) Q1 FY14 Q1 FY13 Change (excluding FX) Revenue $411.0 $398.3 4% Operating Income $43.3 $44.7 (1%) EPS $0.51 $0.52 2% Adjusted performance excludes the operating results of the divested consumer publishing program, sold in FY13; the first quarter 2014 and 2013 restructu
Slide 5: Research Performance
Research Performance (millions) Q1 2014 Q1 2013 Change % of Revenue (excluding FX) Journal Subscriptions $160.2 $155.6 4% 65% Print Books $27 4 $27.4 $29 5 $29.5 (6%) 11% Digital Books $9.6 $7.6 28% 4% Open Access $3.3 $0.6 450% 1% Other (reprints, ( i b backfiles, kfil rights, i h advertising) d ii
Slide 6: Professional Performance
Professional Performance (millions) Q1 2014 Q1 2013 Ch Change % of Revenue (excluding FX) Print Books $57.0 $63.7 (10%) 68% Digital g Books $10.3 $ $8.5 $ 21% 12% Online Training & Assessment $8.1 $6.9 17% 10% Other (rights, translations, advertising) $8.7 $10.5 (16%) 10% Adjusted Revenue $84.1 $89.
Slide 7: Education Performance
Education Performance ( ll (millions) ) Q1 2014 Q1 2013 Change % off Revenue (excluding FX) Print Textbooks $41.4 $48.4 (13%) 51% Custom & Binder Print $16.2 $16.3 (1%) 20% Online Program Mgmt $14.7 $0 N/A 18% Digital Books $4.6 $4.3 7% 6% WileyPLUS $1.1 $0.8 50% 1% Other $3.1 $3.0 13% 4% Revenue $8
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) Q1 2014 Q1 2013 Change Ex‐foreign exchange Di t ib ti Distribution $24 5 $24.5 $25 7 $25.7 (3%) Technology $44.9 $36.3 24% Finance $10.3 $10.4 0% Other Administration $23.5 $22.5 5% Total $103.2 $94.9 9% Adjusted j Shared Services Costs exclude first q
Slide 9: Balance Sheet
Balance Sheet • Net debt at $470 million vs. $365 million at prior year due to FY13 Deltak and ELS acquisitions totaling $244 million in cash cash. Net debt‐to‐EBITDA (ttm) ratio at 1.2 • Deferred revenue at $265 million vs. $239 million due to solid journal subscription growth, as well as Inscape a
Slide 10: Cash Flow & Usage
Cash Flow & Usage (millions) Q1 2014 Q1 2013 Cash Used for Ops ($56.7) ($78.3) Capex Composition ($8 9) ($8.9) ($11 9) ($11.9) Technology, etc. ($13.8) ($15.9) Total Capex ($22.7) ($27.8) Free Cash Flow ($79.3) ($106.1) • Free Cash Flow is negative for Wiley in the first half of a fiscal year mainly
Slide 11: Restructuring Activity
Restructuring Activity • Expecting $80 million in run‐rate savings beginning in FY15 • More than half to improve earnings; remainder reinvested in the business • Q1 charge of $7.8 million for restructuring (including severance, consulting l i ffees andd distribution di ib i facility f ili relocation
Slide 12: Summary & Outlook
Summary & Outlook • Continued progress in transforming to a provider of digital knowledge and knowledge‐enabled g services ((now 52% of revenue)) • Improved revenue growth from journal subscriptions and digital books • Solid performance from new businesses • Restructuring well on track to realize si