Wiley Reports First Quarter 2025 Results
Wiley (NYSE: WLY) reported strong Q1 2025 results, with adjusted revenue up 6% to $390 million and adjusted EPS up 74% to $0.47. Research revenue grew 3% to $265 million, driven by open access and institutional licensing. Learning revenue increased 14% to $124 million, boosted by a $16 million GenAI content rights project. The company completed its third divestiture and implemented the remainder of its $130 million cost savings program. Wiley reaffirmed its FY2025 outlook, projecting revenue of $1,650-$1,690 million and adjusted EPS of $3.25-$3.60. The company's net debt-to-EBITDA ratio was 2.0, and it allocated $32 million to dividends and share repurchases.
Wiley (NYSE: WLY) ha riportato risultati solidi per il primo trimestre del 2025, con ricavi rettificati in aumento del 6% a 390 milioni di dollari e un utile per azione rettificato in crescita del 74% a 0,47 dollari. I ricavi della Ricerca sono aumentati del 3% a 265 milioni di dollari, sostenuti dall’accesso aperto e dalle licenze istituzionali. I ricavi dell'Apprendimento sono aumentati del 14% a 124 milioni di dollari, grazie a un progetto di diritti sui contenuti GenAI del valore di 16 milioni di dollari. L'azienda ha completato il suo terzo disinvestimento e ha implementato il resto del suo programma di risparmi sui costi di 130 milioni di dollari. Wiley ha ribadito le sue previsioni per l'FY2025, prevedendo ricavi compresi tra 1.650 e 1.690 milioni di dollari e un utile per azione rettificato tra 3,25 e 3,60 dollari. Il rapporto debito netto su EBITDA dell'azienda era pari a 2,0 e ha allocato 32 milioni di dollari ai dividendi e al riacquisto di azioni.
Wiley (NYSE: WLY) reportó resultados sólidos para el primer trimestre de 2025, con ingresos ajustados que aumentaron un 6% a 390 millones de dólares y un EPS ajustado que subió un 74% a 0,47 dólares. Los ingresos de Investigación crecieron un 3% a 265 millones de dólares, impulsados por el acceso abierto y las licencias institucionales. Los ingresos de Aprendizaje aumentaron un 14% a 124 millones de dólares, ayudados por un proyecto de derechos de contenido GenAI de 16 millones de dólares. La compañía completó su tercer desinversión e implementó el resto de su programa de ahorro de costos de 130 millones de dólares. Wiley reafirmó su perspectiva para el FY2025, proyectando ingresos de 1.650 a 1.690 millones de dólares y un EPS ajustado de 3,25 a 3,60 dólares. La relación de deuda neta sobre EBITDA de la compañía fue de 2,0, y asignó 32 millones de dólares a dividendos y recompra de acciones.
와일리(Wiley, NYSE: WLY)는 2025년 1분기 실적이 양호하다고 보고했으며, 조정된 수익이 6% 증가한 3억 9천만 달러, 조정된 주당순이익이 74% 증가한 0.47달러에 달했습니다. 연구 수익은 3% 증가한 2억 6천5백만 달러로, 오픈 액세스와 기관 라이센스에 힘입었습니다. 학습 수익은 14% 증가한 1억 2천4백만 달러로, 1천6백만 달러 규모의 GenAI 콘텐츠 권리 프로젝트로 인해 증가했습니다. 회사는 세 번째 자산 매각을 완료했으며 1억 3천만 달러 규모의 비용 절감 프로그램의 나머지를 시행했습니다. 와일리는 FY2025 전망을 재확인하며, 수익을 16억 5천만에서 16억 9천만 달러, 조정된 주당순이익을 3.25에서 3.60달러로 예측했습니다. 회사의 순부채 대비 EBITDA 비율은 2.0이었으며, 3천2백만 달러를 배당금 및 자사주 매입에 할당했습니다.
Wiley (NYSE: WLY) a annoncé de solides résultats pour le premier trimestre de 2025, avec un chiffre d'affaires ajusté en hausse de 6 % à 390 millions de dollars et un BPA ajusté en hausse de 74 % à 0,47 dollar. Les revenus de Recherche ont augmenté de 3 % pour atteindre 265 millions de dollars, soutenus par l'accès ouvert et les licences institutionnelles. Les revenus de Formation ont augmenté de 14 % pour atteindre 124 millions de dollars, grâce à un projet de droits de contenu GenAI de 16 millions de dollars. L'entreprise a finalisé sa troisième cession et mis en œuvre le reste de son programme d'économies de coûts de 130 millions de dollars. Wiley a confirmé ses perspectives pour l'exercice 2025, prévoyant un chiffre d'affaires compris entre 1,650 et 1,690 millions de dollars et un BPA ajusté de 3,25 à 3,60 dollars. Le ratio de la dette nette par rapport à l'EBITDA de l'entreprise était de 2,0, et elle a alloué 32 millions de dollars aux dividendes et aux rachats d'actions.
Wiley (NYSE: WLY) hat starke Ergebnisse für das erste Quartal 2025 gemeldet, mit einem um 6 % gestiegenen bereinigten Umsatz von 390 Millionen Dollar und einem um 74 % gestiegenen bereinigten EPS von 0,47 Dollar. Die Forschung Umsätze stiegen um 3 % auf 265 Millionen Dollar, angetrieben durch Open Access und institutionelle Lizenzen. Die Bildung Umsätze erhöhten sich um 14 % auf 124 Millionen Dollar, unterstützt durch ein 16 Millionen Dollar umfassendes Projekt für GenAI-Inhaltrechte. Das Unternehmen hat seine dritte Veräußertung abgeschlossen und den Rest seines 130 Millionen Dollar umfassenden Kostensparprogramms umgesetzt. Wiley bekräftigte seine Prognose für das Geschäftsjahr 2025 und rechnet mit einem Umsatz von 1.650 bis 1.690 Millionen Dollar sowie einem bereinigten EPS von 3,25 bis 3,60 Dollar. Die Nettoverschuldung im Verhältnis zum EBITDA des Unternehmens betrug 2,0, und es wurden 32 Millionen Dollar für Dividenden und Aktienrückkäufe bereitgestellt.
- Adjusted revenue increased 6% to $390 million in Q1 2025
- Adjusted EPS grew 74% to $0.47
- Research revenue up 3% to $265 million
- Learning revenue increased 14% to $124 million
- $16 million contribution from GenAI content rights project
- Completed third divestiture and implemented $130 million cost savings program
- Reaffirmed FY2025 outlook with projected revenue of $1,650-$1,690 million
- Raised dividend for the 31st consecutive year
- GAAP EPS loss of ($0.03) due to non-cash income tax adjustment
- Net Cash Used in Operating Activities increased to $89 million from $82 million
- Free Cash Flow less Product Development Spending was a use of $107 million
Insights
Wiley's Q1 2025 results show positive momentum, with adjusted revenue up
However, investors should note the
Wiley's strategic pivot towards AI-related opportunities is noteworthy. The
The company's focus on modernizing infrastructure and expanding GenAI capabilities, as evidenced by the increased capex projection of
Wiley's Q1 results reflect broader industry trends, particularly in academic publishing and AI-driven learning. The
The company's strategic divestitures, including Wiley University Services and Wiley Edge, indicate a focused approach on core strengths. This streamlining, combined with the
HIGHLIGHTS
- Strong year-over-year financial performance driven by solid growth in Research Publishing, AI-related demand for Learning content, and continued execution of the Value Creation Plan
-
Third and final divestiture closed and remainder of
cost savings program actioned$130 million - Second GenAI content rights project executed with large tech company
FIRST QUARTER PERFORMANCE
-
GAAP Results (including Held for Sale or Sold businesses): Revenue of
(-$404 million 10% ), Operating Income of ($29 million + ), and EPS loss of ($45 million ) ($0.03 + ).$1.64 -
Adjusted Results at Constant Currency (excluding Held for Sale or Sold businesses, restructuring costs and other adjusted items): Revenue of
(+$390 million 6% ), Adjusted EBITDA of (+$73 million 22% ), and Adjusted EPS of (+$0.47 74% ).
MANAGEMENT COMMENTARY
“The Wiley leadership team and I are pleased with how we started the year, as measured by both our performance indicators and financial results,” said Matthew Kissner, Wiley President and CEO. “Research delivered solid growth driven by robust demand to publish in our journals and execution of our publishing and go-to-market strategies. Learning delivered strong growth as it sees continued demand for its authoritative content in training GenAI models and core growth in Academic. Finally, we closed our third and final divestiture and actioned the remainder of our
Research
-
Revenue of
was up$265 million 3% as reported and at constant currency, mainly due to growth in open access and institutional licensing models in Research Publishing. -
Adjusted EBITDA of
was up$78 million 1% as reported and at constant currency due to revenue performance largely offset by the timing of employee benefit costs related to higher incentive compensation and investments in technology. Adjusted EBITDA margin for the quarter was29.3% compared to29.8% in the prior year period.
Learning
-
Revenue of
was up$124 million 14% as reported and at constant currency driven by a Q1 contribution from an executed$16 million content rights project for training GenAI models and continued growth in Academic courseware, offsetting moderate declines in Professional. Excluding the GenAI project, Q1 Learning revenue declined$21 million 1% . -
Adjusted EBITDA of
was up$34 million 60% as reported and at constant currency mainly due to the GenAI content rights project. Adjusted EBITDA margin for the quarter was27.2% compared to19.4% in the prior year period.
Corporate Expense Category
-
Adjusted Corporate Expenses of
on an Adjusted EBITDA basis was$39 million 2% higher at reported and at constant currency, primarily due to higher tech expenses.
Businesses Held for Sale or Sold (HFS)
Our Held for Sale or Sold segment reflects the performance of those businesses for the periods owned. Wiley University Services was completed on January 1, 2024. The sale of Wiley Edge, with the exception of its
EPS
-
GAAP EPS loss was (
) compared to ($0.03 ) in the prior year period. The quarterly loss was primarily due to a non-cash income tax adjustment as a consequence of the US valuation allowance related to our divested businesses (see accompanying EPS reconciliation table for more information), as well as restructuring charges and foregone net income from Businesses Sold or Held for Sale. The year over year variance is primarily due to favorability compared to prior year impairments, restructuring charges, and losses on the sale of businesses, partially offset by the current quarter tax adjustment.$1.67 -
Adjusted EPS of
was up$0.47 74% at constant currency due to higher Adjusted Operating Income and accrued interest income from divestitures.
Balance Sheet, Cash Flow, and Capital Allocation
- Net Debt-to-EBITDA Ratio (Trailing Twelve Months) at quarter end was 2.0 compared to 1.9 in the year-ago period.
-
Net Cash Used in Operating Activities was
compared to$89 million in the prior year period with higher annual incentive compensation payments for prior year performance offsetting higher cash earnings. Note, Wiley’s regular use of cash in the first half of the fiscal year is driven by the timing of cash collections for annual journal subscriptions, which are concentrated in Q3 and Q4.$82 million -
Free Cash Flow less Product Development Spending was a use of
compared to a use of$107 million in the prior year, with higher annual incentive compensation payments for prior year performance offsetting higher cash earnings and lower capex. Capex of$106 million was below prior year by$18 million due to timing. Note, Wiley does not provide an adjusted Free Cash Flow metric; results include held for sale or sold businesses.$6 million -
Returns to Shareholders: Wiley allocated
toward dividends and share repurchases, up from$32 million in the prior year, with$29 million used to acquire 295 thousand shares at an average cost per share of$13 million . In June 2024, Wiley raised its dividend for the 31st consecutive year.$42.34
FISCAL YEAR 2025 GROWTH OUTLOOK
Wiley is reaffirming its Fiscal 2025 growth outlook. Wiley’s revenue outlook is driven by favorable demand trends and strong performance indicators. Wiley’s earnings outlook is driven by expected revenue growth and cost savings, while reflecting reinvestments to scale and optimize Research, modernize infrastructure and expand GenAI content licensing and capabilities. Wiley’s cash flow outlook is driven by lower restructuring payments and favorable working capital partially offset by higher capex and a year-over-year swing in incentive compensation payments. The Company expects capex of
Metric |
Fiscal 2024 Results |
Fiscal 2025 Outlook |
($millions, except EPS) |
Ex-Divestitures |
Ex-Divestitures |
Adj. Revenue* |
|
|
Research |
|
Low to mid-single digit growth |
Learning |
|
Low-single digit growth |
Adj. EBITDA* |
|
|
Adj. EPS* |
|
|
Free Cash Flow |
|
Approx. |
*Excludes held for sale or sold businesses |
The Company remains on track with its Fiscal 2026 targets.
EARNINGS CONFERENCE CALL
Scheduled for today, September 5 at 10:00 am (ET). Access webcast at Investor Relations at investors.wiley.com, or directly at https://events.q4inc.com/attendee/543994488.
ABOUT WILEY
Wiley (NYSE: WLY) is one of the world’s largest publishers and a trusted leader in research and learning. Our industry-leading content, services, platforms, and knowledge networks are tailored to meet the evolving needs of our customers and partners, including researchers, students, instructors, professionals, institutions, and corporations. We enable knowledge-seekers to transform today’s biggest obstacles into tomorrow’s brightest opportunities. For more than two centuries, Wiley has been delivering on its timeless mission to unlock human potential. Visit us at Wiley.com. Follow us on Facebook, Twitter, LinkedIn and Instagram.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as “Adjusted EPS,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted Income before Taxes,” “Adjusted Income Tax Provision,” “Adjusted Effective Income Tax Rate,” “Free Cash Flow less Product Development Spending,” “organic revenue,” “Adjusted Revenue,” and results on a Constant Currency basis to assess underlying business performance and trends. Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, and the impact of divestitures and acquisitions provide a useful comparable basis to analyze operating results and earnings. See the reconciliations of non-GAAP financial measures and explanations of the uses of non-GAAP measures in the supplementary information. We have not provided our 2025 outlook for the most directly comparable
FORWARD-LOOKING STATEMENTS
This release 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 statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company's educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the ability to realize operating savings over time and in fiscal year 2025 in connection with our multiyear Global Restructuring Program and planned and completed dispositions; (xi) the possibility that the divestitures will not be pursued, failure to obtain necessary regulatory approvals or required financing or to satisfy any of the other conditions to planned dispositions; (xii) cyber risk and the failure to maintain the integrity of our operational or security systems or infrastructure, or those of third parties with which we do business; (xiii) as a result of acquisitions, we have and may record a significant amount of goodwill and other identifiable intangible assets and we may never realize the full carrying value of these assets; (xiv) our ability to leverage artificial intelligence technologies in our products and services, including generative artificial intelligence, large language models, machine learning, and other artificial intelligence tools; and (xv) other factors detailed from time to time in our filings with the SEC. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.
CATEGORY: EARNINGS RELEASES
JOHN WILEY & SONS, INC. | ||||||||
SUPPLEMENTARY INFORMATION (1)(2) | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS | ||||||||
(Dollars in thousands, except per share information) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
July 31, | ||||||||
2024 |
2023 |
|||||||
Revenue, net | $ |
403,809 |
|
$ |
451,013 |
|
||
Costs and expenses: | ||||||||
Cost of sales |
|
109,220 |
|
|
157,101 |
|
||
Operating and administrative expenses |
|
248,819 |
|
|
255,801 |
|
||
Impairment of goodwill (3) |
|
- |
|
|
26,695 |
|
||
Restructuring and related charges |
|
3,870 |
|
|
12,123 |
|
||
Amortization of intangible assets |
|
12,927 |
|
|
15,648 |
|
||
Total costs and expenses |
|
374,836 |
|
|
467,368 |
|
||
Operating income (loss) |
|
28,973 |
|
|
(16,355 |
) |
||
As a % of revenue |
|
7.2 |
% |
|
-3.6 |
% |
||
Interest expense |
|
(12,787 |
) |
|
(11,334 |
) |
||
Foreign exchange transaction gains (losses) |
|
234 |
|
|
(1,620 |
) |
||
Gains (losses) on sale of businesses and impairment charges related to assets held-for-sale (3) |
|
5,801 |
|
|
(75,929 |
) |
||
Other income (expense), net |
|
782 |
|
|
(1,485 |
) |
||
Income (loss) before taxes |
|
23,003 |
|
|
(106,723 |
) |
||
Provision (benefit) for income taxes |
|
24,439 |
|
|
(14,459 |
) |
||
Effective tax rate |
|
106.2 |
% |
|
13.5 |
% |
||
Net loss | $ |
(1,436 |
) |
$ |
(92,264 |
) |
||
As a % of revenue |
|
-0.4 |
% |
|
-20.5 |
% |
||
Loss per share | ||||||||
Basic | $ |
(0.03 |
) |
$ |
(1.67 |
) |
||
Diluted (4) | $ |
(0.03 |
) |
$ |
(1.67 |
) |
||
Weighted average number of common shares outstanding | ||||||||
Basic |
|
54,377 |
|
|
55,270 |
|
||
Diluted (4) |
|
54,377 |
|
|
55,270 |
|
||
Notes: | ||||||||
(1) The supplementary information included in this press release for the three months ended July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | ||||||||
(2) All amounts are approximate due to rounding. | ||||||||
(3) As previously announced in fiscal year 2024, we executed a plan to divest non-core businesses, including University Services, Wiley Edge, and CrossKnowledge. These three businesses met the held-for-sale criteria starting in the first quarter of fiscal year 2024. We measured each disposal group at the lower of carrying value or fair value less costs to sell prior to its disposition. On May 31, 2024, we completed the sale of Wiley Edge, with the exception of its On January 1, 2024 we completed the sale of University Services. In the three months ended July 31, 2024, there was a reduction in the pretax loss on the sale of University Services previously in our Held for Sale or Sold segment due to third-party customer consents and working capital adjustments of As of July 31, 2024, Wiley Edge's In fiscal year 2024, we reorganized our segments and recorded pretax noncash goodwill impairments of |
||||||||
Three Months Ended July 31, |
||||||||
2024 |
2023 |
|||||||
Wiley Edge | $ |
(168 |
) |
$ |
- |
|
||
University Services |
|
1,489 |
|
|
(40,659 |
) |
||
Tuition Manager |
|
120 |
|
|
(2,068 |
) |
||
CrossKnowledge |
|
4,360 |
|
|
(33,202 |
) |
||
Gains (losses) on sale of businesses and impairment charges related to assets held-for-sale | $ |
5,801 |
|
$ |
(75,929 |
) |
||
(4) In calculating diluted net loss per common share for the three months ended July 31, 2024 and 2023, our diluted weighted average number of common shares outstanding excludes the effect of unvested restricted stock units and other stock awards as the effect was antidilutive. This occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. | ||||||||
JOHN WILEY & SONS, INC. | |||||||||
SUPPLEMENTARY INFORMATION (1) (2) | |||||||||
RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES | |||||||||
(unaudited) | |||||||||
Reconciliation of US GAAP Loss per Share to Non-GAAP Adjusted EPS | |||||||||
Three Months Ended | |||||||||
July 31, | |||||||||
2024 |
2023 |
||||||||
US GAAP Loss Per Share - Diluted | $ |
(0.03 |
) |
$ |
(1.67 |
) |
|||
Adjustments: | |||||||||
Impairment of goodwill |
|
- |
|
|
0.43 |
|
|||
Restructuring and related charges |
|
0.06 |
|
|
0.16 |
|
|||
Foreign exchange gains on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
(0.05 |
) |
|
- |
|
|||
Amortization of acquired intangible assets (4) |
|
0.20 |
|
|
0.23 |
|
|||
(Gains) losses on sale of businesses and impairment charges related to assets held-for-sale (5) |
|
(0.09 |
) |
|
1.17 |
|
|||
Held for Sale or Sold segment Adjusted Net Loss (Income) (5) |
|
0.04 |
|
|
(0.07 |
) |
|||
Income tax adjustments |
|
0.33 |
|
|
- |
|
|||
EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (6) |
|
0.01 |
|
|
0.02 |
|
|||
Non-GAAP Adjusted Earnings Per Share - Diluted | $ |
0.47 |
|
$ |
0.27 |
|
|||
Reconciliation of US GAAP Income (Loss) Before Taxes to Non-GAAP Adjusted Income Before Taxes | |||||||||
Three Months Ended | |||||||||
(amounts in thousands) | July 31, | ||||||||
2024 |
2023 |
||||||||
US GAAP Income (Loss) Before Taxes | $ |
23,003 |
|
$ |
(106,723 |
) |
|||
Pretax Impact of Adjustments: | |||||||||
Impairment of goodwill |
|
- |
|
|
26,695 |
|
|||
Restructuring and related charges |
|
3,870 |
|
|
12,123 |
|
|||
Foreign exchange gains on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
(2,591 |
) |
|
(6 |
) |
|||
Amortization of acquired intangible assets (4) |
|
12,969 |
|
|
16,668 |
|
|||
(Gains) losses on sale of businesses and impairment charges related to assets held-for-sale (5) |
|
(5,801 |
) |
|
75,929 |
|
|||
Held for Sale or Sold segment Adjusted Loss (Income) Before Taxes (5) |
|
2,519 |
|
|
(5,034 |
) |
|||
Non-GAAP Adjusted Income Before Taxes | $ |
33,969 |
|
$ |
19,652 |
|
|||
Reconciliation of US GAAP Income Tax Provision (Benefit) to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate | |||||||||
US GAAP Income Tax Provision (Benefit) | $ |
24,439 |
|
$ |
(14,459 |
) |
|||
Income Tax Impact of Adjustments (7) | |||||||||
Impairment of goodwill |
|
- |
|
|
2,697 |
|
|||
Restructuring and related charges |
|
749 |
|
|
2,936 |
|
|||
Foreign exchange gains on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
(390 |
) |
|
(34 |
) |
|||
Amortization of acquired intangible assets (4) |
|
1,809 |
|
|
3,873 |
|
|||
(Gains) losses on sale of businesses and impairment charges related to assets held-for-sale (5) |
|
(925 |
) |
|
10,660 |
|
|||
Held for Sale or Sold segment Adjusted Tax Benefit (Provision) (5) |
|
372 |
|
|
(996 |
) |
|||
Income Tax Adjustments | |||||||||
Impact of valuation allowance on the US GAAP effective tax rate (8) |
|
(18,030 |
) |
|
- |
|
|||
Non-GAAP Adjusted Income Tax Provision | $ |
8,024 |
|
$ |
4,677 |
|
|||
US GAAP Effective Tax Rate |
|
106.2 |
% |
|
13.5 |
% |
|||
Non-GAAP Adjusted Effective Tax Rate |
|
23.6 |
% |
|
23.8 |
% |
|||
Notes: | |||||||||
(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 supplementary information included in this press release for the three months ended July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||||||||
(2) All amounts are approximate due to rounding. | |||||||||
(3) In fiscal year 2023 due to the closure of our operations in |
|||||||||
(4) Reflects the amortization of intangible assets established on the opening balance sheet for an acquired business. This includes the amortization of intangible assets such as developed technology, customer relationships, tradenames, etc., which is reflected in the "Amortization of intangible assets" line in the Condensed Consolidated Statements of Net Loss. It also includes the amortization of acquired product development assets, which is reflected in Cost of sales in the Condensed Consolidated Statements of Net Loss. | |||||||||
(5) On May 31, 2024, we completed the sale of Wiley Edge, which resulted in a pretax loss of CrossKnowledge continues to be reported as held-for-sale, and we measured the business at the lower of carrying value or fair value less costs to sell. In the three months ended July 31, 2024, we reduced the held-for-sale pretax impairment by In the three months ended July 31, 2023, the loss on sale of a business is due to the sale of our Tuition Manager business previously in our Held for Sale or Sold segment, which resulted in a pretax loss of approximately In addition, our Adjusted EPS excludes the Adjusted Net Income of our Held for Sale or Sold segment. |
|||||||||
(6) Represents the impact of using diluted weighted-average number of common shares outstanding (55.0 million and 55.8 million for the three months ended July 31, 2024 and 2023, respectively) included in the Non-GAAP Adjusted EPS calculation in order to apply the dilutive impact on adjusted net income due to the effect of unvested restricted stock units and other stock awards. This impact occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. | |||||||||
(7) For the three months ended July 31, 2024 and 2023, substantially all of the tax impact was from deferred taxes. | |||||||||
(8) In the three months ended July 31, 2024, there was an |
|||||||||
JOHN WILEY & SONS, INC. | |||||||||
SUPPLEMENTARY INFORMATION (1) | |||||||||
RECONCILIATION OF US GAAP NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
July 31, | |||||||||
2024 |
2023 |
||||||||
Net Loss | $ |
(1,436 |
) |
$ |
(92,264 |
) |
|||
Interest expense |
|
12,787 |
|
|
11,334 |
|
|||
Provision (benefit) for income taxes |
|
24,439 |
|
|
(14,459 |
) |
|||
Depreciation and amortization |
|
37,253 |
|
|
43,728 |
|
|||
Non-GAAP EBITDA |
|
73,043 |
|
|
(51,661 |
) |
|||
Impairment of goodwill |
|
- |
|
|
26,695 |
|
|||
Restructuring and related charges |
|
3,870 |
|
|
12,123 |
|
|||
Foreign exchange (gains) losses, including the write off of certain cumulative translation adjustments |
|
(234 |
) |
|
1,620 |
|
|||
(Gains) losses on sale of businesses and impairment charges related to assets held-for-sale |
|
(5,801 |
) |
|
75,929 |
|
|||
Other (income) expense, net |
|
(782 |
) |
|
1,485 |
|
|||
Held for Sale or Sold segment Adjusted EBITDA (2) |
|
2,519 |
|
|
(6,521 |
) |
|||
Non-GAAP Adjusted EBITDA | $ |
72,615 |
|
$ |
59,670 |
|
|||
Adjusted EBITDA Margin |
|
18.6 |
% |
|
16.3 |
% |
|||
Notes: | |||||||||
(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 supplementary information included in this press release for the three months ended July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||||||||
(2) Our Non-GAAP Adjusted EBITDA excludes the Held for Sale or Sold segment Non-GAAP Adjusted EBITDA. | |||||||||
JOHN WILEY & SONS, INC. | |||||||||||||||
SUPPLEMENTARY INFORMATION (1) (2) (3) | |||||||||||||||
SEGMENT RESULTS | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
% Change | |||||||||||||||
Three Months Ended July 31, | Favorable (Unfavorable) | ||||||||||||||
2024 |
2023 |
Reported | Constant Currency | ||||||||||||
Research: | |||||||||||||||
Revenue, net | |||||||||||||||
Research Publishing | $ |
230,951 |
|
$ |
223,000 |
|
4 |
% |
4 |
% |
|||||
Research Solutions |
|
34,358 |
|
|
34,804 |
|
-1 |
% |
-1 |
% |
|||||
Total Revenue, net | $ |
265,309 |
|
$ |
257,804 |
|
3 |
% |
3 |
% |
|||||
Non-GAAP Adjusted Operating Income | $ |
55,216 |
|
$ |
53,527 |
|
3 |
% |
3 |
% |
|||||
Depreciation and amortization |
|
22,559 |
|
|
23,212 |
|
3 |
% |
3 |
% |
|||||
Non-GAAP Adjusted EBITDA | $ |
77,775 |
|
$ |
76,739 |
|
1 |
% |
1 |
% |
|||||
Adjusted EBITDA margin |
|
29.3 |
% |
|
29.8 |
% |
|||||||||
Learning: | |||||||||||||||
Revenue, net | |||||||||||||||
Academic | $ |
59,964 |
|
$ |
48,292 |
|
24 |
% |
24 |
% |
|||||
Professional |
|
64,350 |
|
|
61,028 |
|
5 |
% |
5 |
% |
|||||
Total Revenue, net | $ |
124,314 |
|
$ |
109,320 |
|
14 |
% |
14 |
% |
|||||
Non-GAAP Adjusted Operating Income | $ |
22,500 |
|
$ |
7,626 |
|
# |
# |
|||||||
Depreciation and amortization |
|
11,294 |
|
|
13,552 |
|
17 |
% |
17 |
% |
|||||
Non-GAAP Adjusted EBITDA | $ |
33,794 |
|
$ |
21,178 |
|
60 |
% |
60 |
% |
|||||
Adjusted EBITDA margin |
|
27.2 |
% |
|
19.4 |
% |
|||||||||
Held for Sale or Sold: | |||||||||||||||
Total Revenue, net | $ |
14,186 |
|
$ |
83,889 |
|
-83 |
% |
-83 |
% |
|||||
Non-GAAP Adjusted Operating (Loss) Income | $ |
(2,519 |
) |
$ |
3,084 |
|
# |
# |
|||||||
Depreciation and amortization |
|
- |
|
|
3,437 |
|
# |
# |
|||||||
Non-GAAP Adjusted EBITDA | $ |
(2,519 |
) |
$ |
6,521 |
|
# |
# |
|||||||
Adjusted EBITDA margin |
|
-17.8 |
% |
|
7.8 |
% |
|||||||||
Non-GAAP Adjusted Corporate Expenses | $ |
(42,354 |
) |
$ |
(41,774 |
) |
-1 |
% |
-1 |
% |
|||||
Depreciation and amortization |
|
3,400 |
|
|
3,527 |
|
4 |
% |
3 |
% |
|||||
Non-GAAP Adjusted EBITDA | $ |
(38,954 |
) |
$ |
(38,247 |
) |
-2 |
% |
-2 |
% |
|||||
Consolidated Results: | |||||||||||||||
Revenue, net | $ |
403,809 |
|
$ |
451,013 |
|
-10 |
% |
-10 |
% |
|||||
Less: Held for Sale or Sold Segment (3) |
|
(14,186 |
) |
|
(83,889 |
) |
-83 |
% |
-83 |
% |
|||||
Adjusted Revenue, net | $ |
389,623 |
|
$ |
367,124 |
|
6 |
% |
6 |
% |
|||||
Operating Income (Loss) | $ |
28,973 |
|
$ |
(16,355 |
) |
# |
# |
|||||||
Adjustments: | |||||||||||||||
Restructuring charges |
|
3,870 |
|
|
12,123 |
|
68 |
% |
68 |
% |
|||||
Impairment of goodwill |
|
- |
|
|
26,695 |
|
# |
# |
|||||||
Held for Sale or Sold Segment Adjusted Operating Loss (Income) (3) |
|
2,519 |
|
|
(3,084 |
) |
# |
# |
|||||||
Non-GAAP Adjusted Operating Income | $ |
35,362 |
|
$ |
19,379 |
|
82 |
% |
83 |
% |
|||||
Adjusted Operating Income margin |
|
9.1 |
% |
|
5.3 |
% |
|||||||||
Depreciation and amortization |
|
37,253 |
|
|
43,728 |
|
15 |
% |
15 |
% |
|||||
Less: Held for Sale or Sold Segment depreciation and amortization (3) |
|
- |
|
|
(3,437 |
) |
# |
# |
|||||||
Non-GAAP Adjusted EBITDA | $ |
72,615 |
|
$ |
59,670 |
|
22 |
% |
22 |
% |
|||||
Adjusted EBITDA margin |
|
18.6 |
% |
|
16.3 |
% |
|||||||||
Notes: | |||||||||||||||
(1) The supplementary information included in this press release for the three months ended July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||||||||||||||
(2) All amounts are approximate due to rounding. | |||||||||||||||
(3) Our Adjusted Revenue, Adjusted Operating Income and Adjusted EBITDA excludes the impact of our Held for Sale or Sold segment Revenue, Adjusted Operating Income or Loss and Adjusted EBITDA results. | |||||||||||||||
# | Variance greater than |
||||||||||||||
JOHN WILEY & SONS, INC. | |||||||
SUPPLEMENTARY INFORMATION (1) | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
July 31, | April 30, | ||||||
2024 |
2024 |
||||||
Assets: | |||||||
Current assets | |||||||
Cash and cash equivalents | $ |
82,545 |
$ |
83,249 |
|||
Accounts receivable, net |
|
192,153 |
|
224,198 |
|||
Inventories, net |
|
25,846 |
|
26,219 |
|||
Prepaid expenses and other current assets |
|
87,004 |
|
85,954 |
|||
Current assets held-for-sale (2) |
|
5,282 |
|
34,422 |
|||
Total current assets |
|
392,830 |
|
454,042 |
|||
Technology, property and equipment, net |
|
185,104 |
|
192,438 |
|||
Intangible assets, net |
|
609,224 |
|
615,694 |
|||
Goodwill |
|
1,099,817 |
|
1,091,368 |
|||
Operating lease right-of-use assets |
|
72,424 |
|
69,074 |
|||
Other non-current assets |
|
292,635 |
|
283,719 |
|||
Non-current assets held-for-sale (2) |
|
24 |
|
19,160 |
|||
Total assets | $ |
2,652,058 |
$ |
2,725,495 |
|||
Liabilities and shareholders' equity: | |||||||
Current liabilities | |||||||
Accounts payable | $ |
38,641 |
$ |
55,659 |
|||
Accrued royalties |
|
105,063 |
|
97,173 |
|||
Short-term portion of long-term debt |
|
8,750 |
|
7,500 |
|||
Contract liabilities |
|
367,307 |
|
483,778 |
|||
Accrued employment costs |
|
49,039 |
|
96,980 |
|||
Short-term portion of operating lease liabilities |
|
17,647 |
|
18,294 |
|||
Other accrued liabilities |
|
78,241 |
|
76,266 |
|||
Current liabilities held-for-sale (2) |
|
24,103 |
|
37,632 |
|||
Total current liabilities |
|
688,791 |
|
873,282 |
|||
Long-term debt |
|
909,850 |
|
767,096 |
|||
Accrued pension liability |
|
67,850 |
|
70,832 |
|||
Deferred income tax liabilities |
|
97,362 |
|
97,186 |
|||
Operating lease liabilities |
|
91,587 |
|
94,386 |
|||
Other long-term liabilities |
|
76,980 |
|
71,760 |
|||
Long-term liabilities held-for-sale (2) |
|
5,965 |
|
11,237 |
|||
Total liabilities |
|
1,938,385 |
|
1,985,779 |
|||
Shareholders' equity |
|
713,673 |
|
739,716 |
|||
Total liabilities and shareholders' equity | $ |
2,652,058 |
$ |
2,725,495 |
|||
Notes: | |||||||
(1) The supplementary information included in this press release for July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||||||
(2) As previously announced, we are divesting non-core businesses, including Wiley Edge's |
|||||||
JOHN WILEY & SONS, INC. | |||||||||
SUPPLEMENTARY INFORMATION (1) | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
July 31, | |||||||||
2024 |
2023 |
||||||||
Operating activities: | |||||||||
Net loss | $ |
(1,436 |
) |
$ |
(92,264 |
) |
|||
Impairment of goodwill |
|
- |
|
|
26,695 |
|
|||
(Gains) losses on sale of businesses and impairment charges related to assets held-for-sale |
|
(5,801 |
) |
|
75,929 |
|
|||
Amortization of intangible assets |
|
12,927 |
|
|
15,648 |
|
|||
Amortization of product development assets |
|
4,476 |
|
|
6,687 |
|
|||
Depreciation and amortization of technology, property, and equipment |
|
19,850 |
|
|
21,393 |
|
|||
Other noncash charges |
|
20,067 |
|
|
8,753 |
|
|||
Net change in operating assets and liabilities |
|
(138,795 |
) |
|
(145,176 |
) |
|||
Net cash used in operating activities |
|
(88,712 |
) |
|
(82,335 |
) |
|||
Investing activities: | |||||||||
Additions to technology, property, and equipment |
|
(14,502 |
) |
|
(20,086 |
) |
|||
Product development spending |
|
(3,351 |
) |
|
(3,747 |
) |
|||
Businesses acquired in purchase transactions, net of cash acquired |
|
(915 |
) |
|
(1,500 |
) |
|||
Net cash (transferred) proceeds related to the sale of businesses |
|
(6,387 |
) |
|
457 |
|
|||
Acquisitions of publication rights and other |
|
1,348 |
|
|
(866 |
) |
|||
Net cash used in investing activities |
|
(23,807 |
) |
|
(25,742 |
) |
|||
Financing activities: | |||||||||
Net debt borrowings |
|
143,749 |
|
|
145,473 |
|
|||
Cash dividends |
|
(19,184 |
) |
|
(19,382 |
) |
|||
Purchases of treasury shares |
|
(12,500 |
) |
|
(10,000 |
) |
|||
Other |
|
(10,476 |
) |
|
(10,277 |
) |
|||
Net cash provided by financing activities |
|
101,589 |
|
|
105,814 |
|
|||
Effects of exchange rate changes on cash, cash equivalents and restricted cash |
|
798 |
|
|
2,257 |
|
|||
Change in cash, cash equivalents and restricted cash for period |
|
(10,132 |
) |
|
(6 |
) |
|||
Cash, cash equivalents and restricted cash - beginning |
|
99,543 |
|
|
107,262 |
|
|||
Cash, cash equivalents and restricted cash - ending (2) | $ |
89,411 |
|
$ |
107,256 |
|
|||
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING (3) | |||||||||
Three Months Ended | |||||||||
July 31, | |||||||||
2024 |
2023 |
||||||||
Net cash used in operating activities | $ |
(88,712 |
) |
$ |
(82,335 |
) |
|||
Less: | Additions to technology, property, and equipment |
|
(14,502 |
) |
|
(20,086 |
) |
||
Less: | Product development spending |
|
(3,351 |
) |
|
(3,747 |
) |
||
Free cash flow less product development spending | $ |
(106,565 |
) |
$ |
(106,168 |
) |
|||
Notes: | |||||||||
(1) The supplementary information included in this press release for the three months ended July 31, 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||||||||
(2) Cash, cash equivalents and restricted cash as of July 31, 2024 includes held-for-sale cash, cash equivalents and restricted cash of |
|||||||||
(3) See Explanation of Usage of Non-GAAP Performance Measures included in this supplemental information. | |||||||||
JOHN WILEY & SONS, INC. |
EXPLANATION OF USAGE OF NON-GAAP PERFORMANCE MEASURES |
In this earnings release and supplemental information, management may present the following non-GAAP performance measures: |
|
Management uses these non-GAAP performance measures as supplemental indicators of our operating performance and financial position as well as for internal reporting and forecasting purposes, when publicly providing our outlook, to evaluate our performance and calculate incentive compensation. |
We present these non-GAAP performance measures in addition to US GAAP financial results because we believe that these non-GAAP performance measures provide useful information to certain investors and financial analysts for operational trends and comparisons over time. The use of these non-GAAP performance measures may also provide a consistent basis to evaluate operating profitability and performance trends by excluding items that we do not consider to be controllable activities for this purpose. |
The performance metric used by our chief operating decision maker to evaluate performance of our reportable segments is Adjusted Operating Income. We present both Adjusted Operating Income and Adjusted EBITDA for each of our reportable segments as we believe Adjusted EBITDA provides additional useful information to certain investors and financial analysts for operational trends and comparisons over time. It removes the impact of depreciation and amortization expense, as well as presents a consistent basis to evaluate operating profitability and compare our financial performance to that of our peer companies and competitors. |
For example: |
|
In addition, we have historically provided these or similar non-GAAP performance measures and understand that some investors and financial analysts find this information helpful in analyzing our operating margins and net income, and in comparing our financial performance to that of our peer companies and competitors. Based on interactions with investors, we also believe that our non-GAAP performance measures are regarded as useful to our investors as supplemental to our US GAAP financial results, and that there is no confusion regarding the adjustments or our operating performance to our investors due to the comprehensive nature of our disclosures. |
We have not provided our 2025 outlook for the most directly comparable US GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with US GAAP. |
Non-GAAP performance measures do not have standardized meanings prescribed by US GAAP and therefore may not be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial results under US GAAP. The adjusted metrics have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, US GAAP information. It does not purport to represent any similarly titled US GAAP information and is not an indicator of our performance under US GAAP. Non-GAAP financial metrics that we present may not be comparable with similarly titled measures used by others. Investors are cautioned against placing undue reliance on these non-GAAP measures. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240905678059/en/
Investor
Brian Campbell
brian.campbell@wiley.com
201.748.6874
Media
Andrea Sherman
asherman@wiley.com
(203) 536-7564
Source: John Wiley and Sons
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