John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 FY2021 Earnings Presentation
19 slides from John Wiley & Sons's earnings presentation, Sep 3, 2020
Slide 1: First Quarter Fiscal 2021 Earnings Review
Slide 2: Safe Harbor Statement
Safe Harbor StatementThis 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 stateme
Slide 3: Business Review
Business Review Brian Napack, President and CEO
Slide 4: Business Update – Advancing Through the Global Pandemic
Business Update – Advancing Through the Global Pandemic Remote work yielding productivity gains and high engagement: digital company, tech-enabled workflows Solid momentum in Research and Education Services Continued disruption to legacy print books and in-person training Favorable trends continue –
Slide 5: First Quarter 2021 Summary
First Quarter 2021 Summary Revenue+2%*$431M Adj. EBITDA+42%* $82M Adj. EPS+124%*$0.42 Revenue performance driven by:Accelerating demand to publish peer-reviewed research and access it through our platformsIncreasing uptake of digital content and courseware Increasing demand for online education serv
Slide 6: Research Publishing & Platforms
Publishing up 5% driven by robust open access growth and favorable timing (contracts delayed from Q4); article submissions and output up significantlySociety partnerships continue strong momentum; CY21 net wins up $11M Platforms up 10% reflecting new client launches and high retention; prominent par
Slide 7: Research Publishing & Platforms – Rest of Year Viewpoint
Research Publishing & Platforms – Rest of Year Viewpoint Pricing pressure anticipated for Calendar Year ‘21 journal subscription renewals – university library budgets challenged by COVID; peak renewal season runs from Oct ‘20 to Jan ‘21; CY20 renewals locked through December ‘20Pricing pressure offs
Slide 8: Academic & Professional Learning
Inflection point for digital courseware and content; growth acceleratingPrint books and test prep affected by COVID-related store and testing center closingsCorporate training challenged by disruption to in-person training; post-pandemic recovery anticipatedEBITDA decline mainly from revenue perform
Slide 9: Academic & Professional Learning – Rest of Year Viewpoint
Academic & Professional Learning – Rest of Year Viewpoint Strong digital courseware growth to continue, partly offsetting overall enrollment challenges Print book declines to continue with diminishing impact to overall business Test prep and corporate training largely dependent on reopening of physi
Slide 10: Education Services
Education Services organic growth of 4% from higher enrollment and new program launches; revenue growth constrained by portfolio optimizationTwo full-service partners signed this quarter – University of New Haven (CT) and Carlow University (PA); additional universities signed for unbundled servicesm
Slide 11: Education Services – Rest of Year Viewpoint
Education Services – Rest of Year Viewpoint Enrollment momentum and solid pipeline of university partnerships and programsExisting partners seeking online expansion opportunitiesUnbundled services facing some near-term pressure due to university financial pressureSteady placement opportunities for I
Slide 12: Financial Review
Financial Review John Kritzmacher, Executive Vice President & CFO
Slide 13: Cash Flow, Balance Sheet, and Return to Shareholders
Cash Flow, Balance Sheet, and Return to Shareholders Free Cash Flow: lower by $20M primarily due to timing of working capital activity. Free Cash Flow historically a use in first half of fiscal year due to timing of journal subscriptions collections. $173M of Free Cash Flow generated in fiscal year
Slide 14: Expense Management
Expense Management Discretionary spending controlsTemporary senior executive and BOD compensation reductions Reorganization and Restructuring $15M charge in Q4/ $30M in run rate savings expectedFurther cost structure initiatives anticipated in fiscal year 2021 Real Estate Optimization Effective remo
Slide 15: Summary
Summary Solid momentum in Research and Education Services Continued disruption to legacy print books and in-person training Favorable trends continue – demand for high-quality research, online education and digital courseware Optimization and cost savings initiatives accelerating Strong balance shee
Slide 16: Thank you for joining us
Thank you for joining usEarnings material and events calendar at https://www.wiley.com/en-us/investorsQ2 2021 Earnings Call – DecemberContact us for follow-up at: brian.campbell@wiley.com+1(201) 748-6874
Slide 17: Appendix
APPENDIX WILEY
Slide 18: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS
18 JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION ("” RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended July 31, 2020 GAAP Earnings Per Share - Diluted 0.29 Adjustments: Restructuring and related charges (A) 0.03 0.14 Foreign exchange (gains) losses on i
Slide 19: Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA
19 JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION “? RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, O_O Net Income $ 16,334 $ 3,624 Interest expense 4614 6,077 Provision for income taxes 13,400 343 Depreciation and amortization 49,