John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2018 Earnings Presentation
18 slides from John Wiley & Sons's earnings presentation, Jun 12, 2018
Slide 1: Fourth Quarter and Full Year 2018 Earnings Report
Fourth Quarter and Full Year 2018 Earnings Report June 12, 2018 Speakers Brian Napack, President and CEO John Kritzmacher, CFO & EVP, Operations Fourth Quarter and Fiscal Year 2018 Earnings | June 2018
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: Non-GAAP Measures
Non-GAAP Measures In this presentation, management provides the following non-GAAP measures: • Adjusted Earnings Per Share (“Adjusted EPS”) • Free Cash Flow less Product Development Spending • Adjusted Operating Income and Margin • Adjusted Contribution to Profit (“Adjusted CTP”) • Results on a cons
Slide 4: Agenda
Agenda General Discussion Results Business Optimization Financial Position Outlook Q&A Fourth Quarter and Fiscal Year 2018 Earnings | June 2018 4
Slide 5: A Research and Education Company
A Research and Education Company • Substantial progress made in positioning ourselves for success in Research and Education markets • Highly attractive markets in the midst of change that is creating opportunities − Positive trends: Article output and business model transformation in Research; new o
Slide 6: Full Year Takeaways
Full Year Takeaways • Exceeded guidance for revenue, adjusted operating income, adjusted EPS, and Cash Provided by Operating Activities • Good momentum to build on − Research – investing in growing content output, building open access position, optimizing existing portfolio, realizing significant te
Slide 7: Full Year Performance
Full Year Performance GAAP FY 2018 FY 2017 Change Change CC Revenue $1,796.1 $1,718.5 5% 1% Operating Income $239.5 $206.2 16% Operating Margin 13.3% 12.0% Diluted EPS $3.32 $1.95 70% Non-GAAP FY 2018 FY 2017 Change Change CC Adjusted Operating Income $271.7 $228.4 7% Adjusted Operating Margin 15.1%
Slide 8: Fourth Quarter Performance
Fourth Quarter Performance GAAP Q4 2018 Q4 2017 Change Change CC Revenue $477.3 $452.2 6% 1% Operating Income $74.8 $63.4 18% Operating Margin 15.7% 14.0% Diluted EPS $0.93 $0.81 16% Non-GAAP Q4 2018 Q4 2017 Change CC Adjusted Operating Income $76.9 $61.7 15% Adjusted Operating Margin 16.1% 13.7% Ad
Slide 9: Research
Research (millions) FY 2018 FY 2017 Change Change CC Journal Subscriptions $677.7 $639.7 6% 0% Open Access $42.0 $30.6 37% 34% Licensing, Reprints, Backfiles, Other $181.8 $164.1 11% 8% Total Journal Revenue $901.5 $834.4 8% 3% Publishing Technology Services (Atypon) $32.9 $19.1 73% 73% TOTAL REVENU
Slide 10: Publishing
Publishing (millions) FY 2018 FY 2017 Change Change CC STM and Professional Publishing $287.3 $291.3 (1%) (3%) Education Publishing $187.2 $196.3 (5%) (6%) Course Workflow (WileyPLUS) $59.5 $62.3 (5%) (5%) Test Preparation and Certification $35.5 $35.6 0% 0% Licensing, Distribution, Advertising, Oth
Slide 11: Solutions
Solutions (millions) FY 2018 FY 2017 Change Change CC Education Services (Online Program Mgmt) $119.1 $111.6 7% 7% Professional Assessment $61.1 $59.9 2% 2% Corporate Learning $63.8 $60.1 6% (1%) TOTAL REVENUE $244.1 $231.6 5% 3% CONTRIBUTION TO PROFIT (CTP) $22.1 $14.8 49% Restructuring charges $3.
Slide 12: Business Optimization Efforts
Business Optimization Efforts Fiscal 2018 Achievements • Wiley Online Library migration to Literatum platform • Significant progress in ERP implementation • Lower Technology and Operations costs • Office transformation Opportunities Ahead • New Technology leader announced; set to build a high-perfor
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Balance Sheet (millions) As of 4/30/18 As of 4/30/17 Long Term Debt $360.0 $365.0 Net Debt $190.2 $306.5 Net-Debt-to-EBITDA* 0.5 1.0 Cash Flow Measures (millions) FY 2018 FY 2017 Cash Provided by Operating Activities (GAAP) $373.8 $314.9 Additions to Technology, Property,
Slide 14: Moving Forward: Fiscal 2019 Focus Areas
Moving Forward: Fiscal 2019 Focus Areas Research Publish more, launch new journals, build open access position, Support and extend our society relationships Expand editorial and sales footprints in China and India Develop new products and services leveraging existing platforms and content Education
Slide 15: Moving Forward: Fiscal 2019 Outlook
Moving Forward: Fiscal 2019 Outlook Metric ($M, except EPS) FY18 Actual FY19 Expectation (% at constant currency) Revenue $1,796.1 Even with prior year Adj. EPS $3.43 Mid-single digit decline Cash Provided by Operating Activities $373.8 High-single digit decline Capital Expenditures* $149.9 Modestly
Slide 16: Key Takeaways
Key Takeaways • Good performance in fiscal 2018 • Fiscal 2019 outlook impacted by investment in growth and in business optimization to generate savings and improve effectiveness • Highly attractive markets in the midst of change with many opportunities • Wiley well positioned to be partner of choice
Slide 17: Appendix
Appendix Fourth Quarter and Fiscal Year 2018 Earnings | June 2018
Slide 18: Adjusted EPS reconciliation to GAAP
Adjusted EPS reconciliation to GAAP JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended Year Ended April 30, April 30, 2018 2017 2018 2017 GAAP Earnings Per Share - Diluted $ 0.93 $ 0.81 $ 3.32 $ 1.95 Adjustme