John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2017 Earnings Presentation
13 slides from John Wiley & Sons's earnings presentation, Dec 7, 2016
Slide 1: Second Quarter 2017 Earnings Report
Second Quarter 2017 Earnings Report December 7, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statem
Slide 3: Second Quarter Summary
Second Quarter Summary • New segment reporting implemented to reflect new management structure – Research (50%), Publishing (37%), and Solutions (13%) • Revenue growth of 2% at constant currency (-2% GAAP), with growth in Journals (+3%) and continued double-digit growth from Solutions (14%) offset b
Slide 4: Financial Performance
Financial Performance (millions) Q2 2017 Q2 2016 Change (ex-FX) Revenue $425.6 $433.4 1% Adjusted Operating Income* $63.4 $64.0 3% Operating Margin 14.9% 14.8% Adjusted EPS* $0.76 $0.78 3% Note, GAAP numbers significantly impacted by unusual charges and credits (-0.97 EPS in aggregate) and foreign e
Slide 5: Research
Research Journals and Atypon (millions) Q2 2017 Q2 2016 % of Revenue Change (ex-FX) Journal Subscriptions $159.7 $163.7 78% 3% Author-Funded Access $7.4 $6.2 4% 27% Licensing, Reprints, Backfiles, Other $36.4 $37.8 18% 1% Total Journal Revenue $203.5 $207.6 99% 3% Platform Services (Atypon) $2.5 1%
Slide 6: Publishing
Publishing Books and References, Course Workflow, Test Preparation (millions) Q2 2017 Q2 2016 % Revenue Change (ex-FX) STM and Professional Books $68.1 $80.2 42% (12%) Education Books $57.5 $61.9 35% (5%) Total Books and References $125.6 $142.1 77% (9%) Course Workflow (WileyPLUS) $19.8 $18.4 12% 8
Slide 7: Solutions
Solutions Online Program Management, Assessment, Corporate Learning (millions) Q2 2017 Q2 2016 % of Revenue Change (ex-FX) Online Program Management $28.0 $23.1 50% 21% Professional Assessment $16.1 $15.8 29% 2% Corporate Learning $12.1 $10.5 22% 16% TOTAL REVENUE $56.3 $49.4 100% 14% ADJ. CONTRIBUT
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) Q2 2017* Q2 2016* Change (ex-FX) Distribution and Operation Services $19.1 $20.1 0% Technology and Content Management $66.9 $62.6 9% Finance $11.9 $10.8 13% Other Administration $30.1 $31.6 (2%) Total $128.1 $125.1 5% • Technology spend (excluding Cont
Slide 9: Balance Sheet
Balance Sheet Balance Sheet (millions) As of 10/31/16 As of 10/31/15 Cash and Cash Equivalents $267.4 $308.2 Short Term Debt $0 $150.0 Long Term Debt $884.0 $739.1 Net Debt $616.6 $580.8 Net Debt to adjusted EBITDA (ttm) 1:9 1:5 • Strong balance sheet continues to provide flexibility for investment
Slide 10: Cash Flow
Cash Flow • Free Cash Flow improvement due to Cash Flow (millions) 1H 2017 1H 2016 timing of cash collections (gains from Net Income $19.5 $76.1 database model) Cash From Operations ($86.1) ($126.5) • Full year 2017 Technology, Property and Equipment spend to be $115M; Composition Spend ($16.6) ($20
Slide 11: FY17 Outlook Reaffirmed
FY17 Outlook Reaffirmed Metric Expectation Operational Revenue Performance Flat Operational EPS Performance Mid-Single Digit Decline Guidance excludes FX, favorable shift to time-based journal subscriptions, acquisition impacts, and unusual charges and credits • Strong dollar vs. British pound in pa
Slide 12: Second Quarter Summary
Second Quarter Summary • New segment reporting implemented to reflect new management structure – Research (50%), Publishing (37%), and Solutions (13%) • Revenue growth of 2% at constant currency (-2% GAAP), with growth in Journals (+3%) and continued double-digit growth from Solutions (14%) offset b
Slide 13: Second Quarter 2017 Earnings Report
Second Quarter 2017 Earnings Report December 7, 2016