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Share Name | Share Symbol | Market | Type |
---|---|---|---|
John Wiley and Sons Inc | NYSE:JW.A | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 53.03 | 0 | 01:00:00 |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 13-5593032 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
111 River Street, Hoboken, New Jersey | 07030 | |||||||
(Address of principal executive offices) | Zip Code |
(201) 748-6000 | ||||||||
Registrant’s telephone number, including area code |
Not Applicable | ||||||||
Former name, former address and former fiscal year, if changed since last report |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Class A Common Stock, par value $1.00 per share | WLY | New York Stock Exchange | ||||||||||||
Class B Common Stock, par value $1.00 per share | WLYB | New York Stock Exchange |
Large accelerated filer x | Accelerated filer o | ||||
Non-accelerated filer o | Smaller reporting company o | ||||
Emerging growth company o |
PART I - FINANCIAL INFORMATION | ||||||||
January 31, 2023 | April 30, 2022 | ||||||||||
Assets: | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 126,449 | $ | 100,397 | |||||||
Accounts receivable, net of allowance for credit losses of $20.9 million and $21.2 million, respectively | 283,654 | 331,960 | |||||||||
Inventories, net | 33,167 | 36,585 | |||||||||
Prepaid expenses and other current assets | 87,896 | 81,924 | |||||||||
Total current assets | 531,166 | 550,866 | |||||||||
Technology, property and equipment, net | 248,298 | 271,572 | |||||||||
Intangible assets, net | 868,267 | 931,429 | |||||||||
Goodwill | 1,203,254 | 1,302,142 | |||||||||
Operating lease right-of-use assets | 94,672 | 111,719 | |||||||||
Other non-current assets | 204,598 | 193,967 | |||||||||
Total assets | $ | 3,150,255 | $ | 3,361,695 | |||||||
Liabilities and shareholders' equity: | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 32,384 | $ | 77,438 | |||||||
Accrued royalties | 154,227 | 101,596 | |||||||||
Short-term portion of long-term debt | 5,000 | 18,750 | |||||||||
Contract liabilities | 369,250 | 538,126 | |||||||||
Accrued employment costs | 81,106 | 117,121 | |||||||||
Short-term portion of operating lease liabilities | 20,055 | 20,576 | |||||||||
Other accrued liabilities | 98,947 | 95,812 | |||||||||
Total current liabilities | 760,969 | 969,419 | |||||||||
Long-term debt | 940,576 | 768,277 | |||||||||
Accrued pension liability | 78,283 | 78,622 | |||||||||
Deferred income tax liabilities | 144,602 | 180,065 | |||||||||
Operating lease liabilities | 119,803 | 132,541 | |||||||||
Other long-term liabilities | 79,122 | 90,502 | |||||||||
Total liabilities | 2,123,355 | 2,219,426 | |||||||||
Shareholders’ equity | |||||||||||
Preferred stock, $1 par value per share: Authorized shares – 2 million, Issued shares - 0 | — | — | |||||||||
Class A common stock, $1 par value per share: Authorized shares - 180 million, Issued shares - 70,228 and 70,226 as of January 31, 2023 and April 30, 2022, respectively | 70,228 | 70,226 | |||||||||
Class B common stock, $1 par value per share: Authorized shares - 72 million, Issued shares - 12,954 and 12,956 as of January 31, 2023 and April 30, 2022, respectively | 12,954 | 12,956 | |||||||||
Additional paid-in-capital | 469,542 | 459,297 | |||||||||
Retained earnings | 1,811,816 | 1,921,160 | |||||||||
Accumulated other comprehensive loss, net of tax | (505,537) | (508,146) | |||||||||
Less treasury shares at cost (Class A – 23,808 and 23,515 as of January 31, 2023 and April 30, 2022, respectively; Class B – 3,925 and 3,924 as of January 31, 2023 and April 30, 2022, respectively) | (832,103) | (813,224) | |||||||||
Total shareholders’ equity | 1,026,900 | 1,142,269 | |||||||||
Total liabilities and shareholders' equity | $ | 3,150,255 | $ | 3,361,695 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue, net | $ | 491,368 | $ | 515,884 | $ | 1,493,773 | $ | 1,537,275 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | 174,051 | 172,916 | 518,384 | 513,654 | |||||||||||||||||||
Operating and administrative expenses | 255,798 | 275,475 | 791,578 | 800,254 | |||||||||||||||||||
Impairment of goodwill | 99,800 | — | 99,800 | — | |||||||||||||||||||
Restructuring and related charges (credits) | 8,807 | 448 | 45,204 | (1,161) | |||||||||||||||||||
Amortization of intangible assets | 19,968 | 21,056 | 65,389 | 63,683 | |||||||||||||||||||
Total costs and expenses | 558,424 | 469,895 | 1,520,355 | 1,376,430 | |||||||||||||||||||
Operating (loss) income | (67,056) | 45,989 | (26,582) | 160,845 | |||||||||||||||||||
Interest expense | (11,521) | (5,103) | (27,185) | (14,739) | |||||||||||||||||||
Foreign exchange transaction gains (losses) | 421 | (488) | 283 | (1,488) | |||||||||||||||||||
Gain on sale of certain assets | — | — | — | 3,694 | |||||||||||||||||||
Other income, net | 705 | 2,821 | 976 | 9,524 | |||||||||||||||||||
(Loss) income before taxes | (77,451) | 43,219 | (52,508) | 157,836 | |||||||||||||||||||
(Benefit) provision for income taxes | (5,982) | 7,853 | (1,397) | 52,673 | |||||||||||||||||||
Net (loss) income | $ | (71,469) | $ | 35,366 | $ | (51,111) | $ | 105,163 | |||||||||||||||
(Loss) earnings per share | |||||||||||||||||||||||
Basic | $ | (1.29) | $ | 0.63 | $ | (0.92) | $ | 1.89 | |||||||||||||||
Diluted | $ | (1.29) | $ | 0.63 | $ | (0.92) | $ | 1.86 | |||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||||||||
Basic | 55,514 | 55,701 | 55,625 | 55,789 | |||||||||||||||||||
Diluted | 55,514 | 56,389 | 55,625 | 56,481 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net (loss) income | $ | (71,469) | $ | 35,366 | $ | (51,111) | $ | 105,163 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustment | 50,348 | (15,918) | (5,580) | (31,338) | |||||||||||||||||||
Unamortized retirement (costs) credits, net of tax benefit (expense) of $1,872, $(1,328), $(1,865), and $(2,954), respectively | (7,456) | 4,688 | 5,771 | 10,342 | |||||||||||||||||||
Unrealized (loss) gain on interest rate swaps, net of tax benefit (expense) of $740, $(678), $(1,008) and $(1,453), respectively | (2,443) | 2,000 | 2,418 | 4,347 | |||||||||||||||||||
Total other comprehensive income (loss) | 40,449 | (9,230) | 2,609 | (16,649) | |||||||||||||||||||
Comprehensive (loss) income | $ | (31,020) | $ | 26,136 | $ | (48,502) | $ | 88,514 |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating activities | |||||||||||
Net (loss) income | $ | (51,111) | $ | 105,163 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Amortization of intangible assets | 65,389 | 63,683 | |||||||||
Amortization of product development assets | 25,175 | 26,662 | |||||||||
Depreciation and amortization of technology, property and equipment | 72,578 | 72,139 | |||||||||
Restructuring and related charges (credits) | 45,204 | (1,161) | |||||||||
Stock-based compensation expense | 20,613 | 19,361 | |||||||||
Employee retirement plan expense | 22,326 | 14,309 | |||||||||
Foreign exchange transaction (gains) losses | (283) | 1,488 | |||||||||
Gain on sale of certain assets | (40) | (3,694) | |||||||||
Other noncash (credits) charges | (16,160) | 39,044 | |||||||||
Net change in operating assets and liabilities | (229,773) | (178,510) | |||||||||
Net cash provided by operating activities | 53,718 | 158,484 | |||||||||
Investing activities | |||||||||||
Product development spending | (17,763) | (20,388) | |||||||||
Additions to technology, property and equipment | (57,616) | (60,668) | |||||||||
Businesses acquired in purchase transactions, net of cash acquired | (5,792) | (70,620) | |||||||||
Proceeds related to the sale of certain assets | 40 | 3,375 | |||||||||
Acquisitions of publication rights and other | 1,059 | (3,750) | |||||||||
Net cash used in investing activities | (80,072) | (152,051) | |||||||||
Financing activities | |||||||||||
Repayments of long-term debt | (475,576) | (268,466) | |||||||||
Borrowings of long-term debt | 637,879 | 373,800 | |||||||||
Payment of debt issuance costs | (4,493) | — | |||||||||
Purchases of treasury shares | (24,000) | (24,867) | |||||||||
Change in book overdrafts | (14,990) | (4,000) | |||||||||
Cash dividends | (58,067) | (57,900) | |||||||||
Impact of tax withholding on stock-based compensation and other | (5,469) | (5,468) | |||||||||
Net cash provided by financing activities | 55,284 | 13,099 | |||||||||
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (2,670) | (3,875) | |||||||||
Cash reconciliation: | |||||||||||
Cash and cash equivalents | 100,397 | 93,795 | |||||||||
Restricted cash included in Prepaid expenses and other current assets | 330 | 564 | |||||||||
Balance at beginning of period | 100,727 | 94,359 | |||||||||
Increase for the period | 26,260 | 15,657 | |||||||||
Cash and cash equivalents | 126,449 | 109,444 | |||||||||
Restricted cash included in Prepaid expenses and other current assets | 538 | 572 | |||||||||
Balance at end of period | $ | 126,987 | $ | 110,016 | |||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 25,796 | $ | 13,601 | |||||||
Income taxes, net of refunds | $ | 38,816 | $ | 34,040 | |||||||
Noncash items: | |||||||||||
Shared issued in connection with the acquisition of a business | $ | — | $ | 7,363 |
Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net of tax | Treasury stock | Total shareholders' equity | |||||||||||||||||||||||||||||||||||
Balance at October 31, 2022 | $ | 70,228 | $ | 12,954 | $ | 465,216 | $ | 1,902,661 | $ | (545,986) | $ | (827,266) | $ | 1,077,807 | |||||||||||||||||||||||||||
Restricted shares issued under stock-based compensation plans | — | — | (2,432) | 2 | — | 2,506 | 76 | ||||||||||||||||||||||||||||||||||
Impact of tax withholding on stock-based compensation and other | — | — | 137 | — | — | (843) | (706) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 6,621 | — | — | — | 6,621 | ||||||||||||||||||||||||||||||||||
Purchases of treasury shares | — | — | — | — | — | (6,500) | (6,500) | ||||||||||||||||||||||||||||||||||
Class A common stock dividends ($0.3475 per share) | — | — | — | (16,240) | — | — | (16,240) | ||||||||||||||||||||||||||||||||||
Class B common stock dividends ($0.3475 per share) | — | — | — | (3,138) | — | — | (3,138) | ||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (71,469) | 40,449 | — | (31,020) | ||||||||||||||||||||||||||||||||||
Balance at January 31, 2023 | $ | 70,228 | $ | 12,954 | $ | 469,542 | $ | 1,811,816 | $ | (505,537) | $ | (832,103) | $ | 1,026,900 |
Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net of tax | Treasury stock | Total shareholders' equity | |||||||||||||||||||||||||||||||||||
Balance at October 31, 2021 | $ | 70,211 | $ | 12,971 | $ | 451,808 | $ | 1,881,235 | $ | (498,209) | $ | (811,351) | $ | 1,106,665 | |||||||||||||||||||||||||||
Restricted shares issued under stock-based compensation plans | — | — | (944) | 1 | — | 1,015 | 72 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock related to the acquisition of a business | — | — | — | — | — | 7,363 | 7,363 | ||||||||||||||||||||||||||||||||||
Impact of tax withholding on stock-based compensation and other | — | — | 2 | — | — | (238) | (236) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 6,299 | — | — | — | 6,299 | ||||||||||||||||||||||||||||||||||
Purchases of treasury shares | — | — | — | — | — | (7,500) | (7,500) | ||||||||||||||||||||||||||||||||||
Class A common stock dividends ($0.3450 per share) | — | — | — | (16,162) | — | — | (16,162) | ||||||||||||||||||||||||||||||||||
Class B common stock dividends ($0.3450 per share) | — | — | — | (3,119) | — | — | (3,119) | ||||||||||||||||||||||||||||||||||
Common stock class conversions | 7 | (7) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | 35,366 | (9,230) | — | 26,136 | ||||||||||||||||||||||||||||||||||
Balance at January 31, 2022 | $ | 70,218 | $ | 12,964 | $ | 457,165 | $ | 1,897,321 | $ | (507,439) | $ | (810,711) | $ | 1,119,518 |
Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net of tax | Treasury stock | Total shareholders' equity | |||||||||||||||||||||||||||||||||||
Balance at April 30, 2022 | $ | 70,226 | $ | 12,956 | $ | 459,297 | $ | 1,921,160 | $ | (508,146) | $ | (813,224) | $ | 1,142,269 | |||||||||||||||||||||||||||
Restricted shares issued under stock-based compensation plans | — | — | (10,514) | 3 | — | 10,727 | 216 | ||||||||||||||||||||||||||||||||||
Impact of tax withholding on stock-based compensation and other | — | — | 137 | — | — | (5,606) | (5,469) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 20,622 | — | — | — | 20,622 | ||||||||||||||||||||||||||||||||||
Purchases of treasury shares | — | — | — | — | — | (24,000) | (24,000) | ||||||||||||||||||||||||||||||||||
Class A common stock dividends ($0.3475 per share) | — | — | — | (48,822) | — | — | (48,822) | ||||||||||||||||||||||||||||||||||
Class B common stock dividends ($0.3475 per share) | — | — | — | (9,414) | — | — | (9,414) | ||||||||||||||||||||||||||||||||||
Common stock class conversions | 2 | (2) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (51,111) | 2,609 | — | (48,502) | ||||||||||||||||||||||||||||||||||
Balance at January 31, 2023 | $ | 70,228 | $ | 12,954 | $ | 469,542 | $ | 1,811,816 | $ | (505,537) | $ | (832,103) | $ | 1,026,900 |
Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net of tax | Treasury stock | Total shareholders' equity | |||||||||||||||||||||||||||||||||||
Balance at April 30, 2021 | $ | 70,208 | $ | 12,974 | $ | 444,358 | $ | 1,850,058 | $ | (490,790) | $ | (795,517) | $ | 1,091,291 | |||||||||||||||||||||||||||
Restricted shares issued under stock-based compensation plans | — | — | (7,920) | — | — | 8,129 | 209 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock related to the acquisition of a business | — | — | — | — | — | 7,363 | 7,363 | ||||||||||||||||||||||||||||||||||
Impact of tax withholding on stock-based compensation and other | — | — | 351 | — | — | (5,819) | (5,468) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 20,376 | — | — | — | 20,376 | ||||||||||||||||||||||||||||||||||
Purchases of treasury shares | — | — | — | — | — | (24,867) | (24,867) | ||||||||||||||||||||||||||||||||||
Class A common stock dividends ($0.3450 per share) | — | — | — | (48,537) | — | — | (48,537) | ||||||||||||||||||||||||||||||||||
Class B common stock dividends ($0.3450 per share) | — | — | — | (9,363) | — | — | (9,363) | ||||||||||||||||||||||||||||||||||
Common stock class conversions | 10 | (10) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | 105,163 | (16,649) | — | 88,514 | ||||||||||||||||||||||||||||||||||
Balance at January 31, 2022 | $ | 70,218 | $ | 12,964 | $ | 457,165 | $ | 1,897,321 | $ | (507,439) | $ | (810,711) | $ | 1,119,518 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Research: | |||||||||||||||||||||||
Research Publishing (1) | $ | 213,720 | $ | 224,553 | $ | 685,884 | $ | 706,690 | |||||||||||||||
Research Solutions (1) | 39,880 | 38,788 | 113,988 | 106,561 | |||||||||||||||||||
Total Research | 253,600 | 263,341 | 799,872 | 813,251 | |||||||||||||||||||
Academic: | |||||||||||||||||||||||
Academic Publishing | 128,564 | 143,583 | 354,728 | 400,740 | |||||||||||||||||||
University Services | 48,951 | 55,435 | 152,892 | 169,002 | |||||||||||||||||||
Total Academic | 177,515 | 199,018 | 507,620 | 569,742 | |||||||||||||||||||
Talent | 60,253 | 53,525 | 186,281 | 154,282 | |||||||||||||||||||
Total Revenue | $ | 491,368 | $ | 515,884 | $ | 1,493,773 | $ | 1,537,275 |
(1) | In May 2022 our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. The revenue reclassified to Research Solutions was $24.3 million and $68.4 million for the three and nine months ended January 31, 2022, respectively. |
January 31, 2023 | April 30, 2022 | Increase/ (Decrease) | |||||||||||||||
Balances from contracts with customers: | |||||||||||||||||
Accounts receivable, net | $ | 283,654 | $ | 331,960 | $ | (48,306) | |||||||||||
Contract liabilities (1) | 369,250 | 538,126 | (168,876) | ||||||||||||||
Contract liabilities (included in Other long-term liabilities) | $ | 18,801 | $ | 19,072 | $ | (271) |
(1) | The sales return reserve recorded in Contract liabilities is $28.0 million and $31.1 million, as of January 31, 2023 and April 30, 2022, respectively. | 0 |
January 31, 2023 | April 30, 2022 | ||||||||||
Operating lease ROU assets | $ | 94,672 | $ | 111,719 | |||||||
Short-term portion of operating lease liabilities | 20,055 | 20,576 | |||||||||
Operating lease liabilities, non-current | $ | 119,803 | $ | 132,541 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating lease cost | $ | 4,356 | $ | 6,015 | $ | 14,066 | $ | 18,257 | |||||||||||||||
Variable lease cost | 265 | 386 | 807 | 1,127 | |||||||||||||||||||
Short-term lease cost | 230 | 51 | 491 | 107 | |||||||||||||||||||
Sublease income | (198) | (315) | (568) | (706) | |||||||||||||||||||
Total net lease cost (1) | $ | 4,653 | $ | 6,137 | $ | 14,796 | $ | 18,785 |
(1) | Total net lease cost does not include those costs and sublease income included in Restructuring and related charges (credits) on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. This includes those operating leases we had identified as part of our restructuring programs that would be subleased. See Note 9, “Restructuring and Related Charges (Credits)” for more information on this program. |
Fiscal Year | Operating Lease Liabilities | |||||||
2023 (remaining 3 months) | $ | 7,479 | ||||||
2024 | 26,261 | |||||||
2025 | 24,991 | |||||||
2026 | 23,041 | |||||||
2027 | 18,411 | |||||||
Thereafter | 77,853 | |||||||
Total future undiscounted minimum lease payments | 178,036 | |||||||
Less: Imputed interest | 38,178 | |||||||
Present value of minimum lease payments | 139,858 | |||||||
Less: Current portion | 20,055 | |||||||
Noncurrent portion | $ | 119,803 |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Restricted Stock: | |||||||||||
Awards granted (shares) | 546 | 653 | |||||||||
Weighted average fair value of grant | $ | 45.31 | $ | 57.00 |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted average fair value of options on grant date | $ | 9.42 | $ | 11.72 | |||||||
Weighted average assumptions: | |||||||||||
Expected life of options (years) | 5.9 | 6.3 | |||||||||
Risk-free interest rate | 0.5 | % | 1.2 | % | |||||||
Expected volatility | 31.2 | % | 30.7 | % | |||||||
Expected dividend yield | 3.0 | % | 2.4 | % | |||||||
Fair value of common stock on grant date | $ | 45.99 | $ | 56.66 | |||||||
Exercise price of stock option grant | $ | 45.99 | $ | 62.18 |
Foreign Currency Translation | Unamortized Retirement Costs | Interest Rate Swaps | Total | ||||||||||||||||||||
Balance at October 31, 2022 | $ | (385,494) | $ | (168,999) | $ | 8,507 | $ | (545,986) | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 50,348 | (8,615) | (772) | 40,961 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1,159 | (1,671) | (512) | |||||||||||||||||||
Total other comprehensive income (loss) | 50,348 | (7,456) | (2,443) | 40,449 | |||||||||||||||||||
Balance at January 31, 2023 | $ | (335,146) | $ | (176,455) | $ | 6,064 | $ | (505,537) | |||||||||||||||
Balance at April 30, 2022 | $ | (329,566) | $ | (182,226) | $ | 3,646 | $ | (508,146) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (5,580) | 2,453 | 4,295 | 1,168 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3,318 | (1,877) | 1,441 | |||||||||||||||||||
Total other comprehensive (loss) income | (5,580) | 5,771 | 2,418 | 2,609 | |||||||||||||||||||
Balance at January 31, 2023 | $ | (335,146) | $ | (176,455) | $ | 6,064 | $ | (505,537) |
Foreign Currency Translation | Unamortized Retirement Costs | Interest Rate Swaps | Total | ||||||||||||||||||||
Balance at October 31, 2021 | $ | (273,361) | $ | (222,492) | $ | (2,356) | $ | (498,209) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (15,918) | 3,275 | 1,174 | (11,469) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1,413 | 826 | 2,239 | |||||||||||||||||||
Total other comprehensive (loss) income | (15,918) | 4,688 | 2,000 | (9,230) | |||||||||||||||||||
Balance at January 31, 2022 | $ | (289,279) | $ | (217,804) | $ | (356) | $ | (507,439) | |||||||||||||||
Balance at April 30, 2021 | $ | (257,941) | $ | (228,146) | $ | (4,703) | $ | (490,790) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (31,338) | 6,056 | 1,859 | (23,423) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4,286 | 2,488 | 6,774 | |||||||||||||||||||
Total other comprehensive (loss) income | (31,338) | 10,342 | 4,347 | (16,649) | |||||||||||||||||||
Balance at January 31, 2022 | $ | (289,279) | $ | (217,804) | $ | (356) | $ | (507,439) |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted average shares outstanding | 55,514 | 55,701 | 55,625 | 55,789 | |||||||||||||||||||
Shares used for basic (loss) earnings per share | 55,514 | 55,701 | 55,625 | 55,789 | |||||||||||||||||||
Dilutive effect of unvested restricted stock units and other stock awards | — | 688 | — | 692 | |||||||||||||||||||
Shares used for diluted (loss) earnings per share | 55,514 | 56,389 | 55,625 | 56,481 | |||||||||||||||||||
Antidilutive options to purchase Class A common shares, restricted shares, warrants to purchase Class A common shares, and contingently issuable restricted stock which are excluded from the table above | 1,141 | 977 | 1,155 | 863 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||
2023 | 2023 | ||||||||||
Charges by Segment: | |||||||||||
Research | $ | 319 | $ | 1,579 | |||||||
Academic | 1,823 | 10,060 | |||||||||
Talent | 178 | 2,514 | |||||||||
Corporate Expenses | 6,540 | 30,129 | |||||||||
Total Restructuring and Related Charges | $ | 8,860 | $ | 44,282 | |||||||
Charges by Activity: | |||||||||||
Severance and termination benefits | $ | 7,049 | $ | 24,613 | |||||||
Impairment of operating lease ROU assets and property and equipment | — | 12,696 | |||||||||
Acceleration of expense related to operating lease ROU assets and property and equipment | 152 | 1,992 | |||||||||
Facility related charges, net | 706 | 3,403 | |||||||||
Consulting costs | 167 | 597 | |||||||||
Other activities | 786 | 981 | |||||||||
Total Restructuring and Related Charges | $ | 8,860 | $ | 44,282 |
April 30, 2022 | Charges | Payments | Foreign Translation & Other Adjustments | January 31, 2023 | |||||||||||||||||||||||||
Severance and termination benefits | $ | — | $ | 24,613 | $ | (16,157) | $ | 222 | $ | 8,678 | |||||||||||||||||||
Consulting costs | — | 597 | (597) | — | — | ||||||||||||||||||||||||
Other activities | — | 981 | (814) | (60) | 107 | ||||||||||||||||||||||||
Total | $ | — | $ | 26,191 | $ | (17,568) | $ | 162 | $ | 8,785 |
Three Months Ended January 31, | Nine Months Ended January 31, | Total Charges Incurred to Date | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
(Credits) Charges by Segment: | |||||||||||||||||||||||||||||
Research | $ | (2) | $ | — | $ | (2) | $ | 238 | $ | 3,880 | |||||||||||||||||||
Academic | 28 | 261 | 31 | (347) | 12,448 | ||||||||||||||||||||||||
Talent | (106) | (41) | (114) | 245 | 5,032 | ||||||||||||||||||||||||
Corporate Expenses | 27 | 228 | 1,007 | (1,297) | 44,397 | ||||||||||||||||||||||||
Total Restructuring and Related (Credits) Charges | $ | (53) | $ | 448 | $ | 922 | $ | (1,161) | $ | 65,757 | |||||||||||||||||||
(Credits) Charges by Activity: | |||||||||||||||||||||||||||||
Severance and termination benefits | $ | (238) | $ | (291) | $ | (225) | $ | (2,861) | $ | 34,894 | |||||||||||||||||||
Impairment of operating lease ROU assets and property and equipment | — | — | — | — | 15,079 | ||||||||||||||||||||||||
Acceleration of expense related to operating lease ROU assets and property and equipment | — | — | — | — | 3,378 | ||||||||||||||||||||||||
Facility related charges, net | 185 | 739 | 1,147 | 1,700 | 10,666 | ||||||||||||||||||||||||
Other activities | — | — | — | — | 1,740 | ||||||||||||||||||||||||
Total Restructuring and Related (Credits) Charges | $ | (53) | $ | 448 | $ | 922 | $ | (1,161) | $ | 65,757 |
April 30, 2022 | (Credits) | Payments | Foreign Translation & Other Adjustments | January 31, 2023 | |||||||||||||||||||||||||
Severance and termination benefits | $ | 2,079 | $ | (225) | $ | (642) | $ | 14 | $ | 1,226 | |||||||||||||||||||
Total | $ | 2,079 | $ | (225) | $ | (642) | $ | 14 | $ | 1,226 |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Research | $ | 253,600 | $ | 263,341 | $ | 799,872 | $ | 813,251 | |||||||||||||||
Academic | 177,515 | 199,018 | 507,620 | 569,742 | |||||||||||||||||||
Talent | 60,253 | 53,525 | 186,281 | 154,282 | |||||||||||||||||||
Total revenue | $ | 491,368 | $ | 515,884 | $ | 1,493,773 | $ | 1,537,275 | |||||||||||||||
Adjusted Contribution to Profit: | |||||||||||||||||||||||
Research | $ | 57,177 | $ | 62,165 | $ | 200,739 | $ | 218,242 | |||||||||||||||
Academic | 20,988 | 31,972 | 31,492 | 68,828 | |||||||||||||||||||
Talent (1) | 5,315 | 5,676 | 24,882 | 16,615 | |||||||||||||||||||
Total adjusted contribution to profit | 83,480 | 99,813 | 257,113 | 303,685 | |||||||||||||||||||
Adjusted corporate contribution to profit | (38,258) | (53,376) | (130,426) | (144,001) | |||||||||||||||||||
Total adjusted operating income | $ | 45,222 | $ | 46,437 | $ | 126,687 | $ | 159,684 | |||||||||||||||
Depreciation and Amortization: | |||||||||||||||||||||||
Research | $ | 23,123 | $ | 23,914 | $ | 70,308 | $ | 71,140 | |||||||||||||||
Academic | 19,922 | 19,693 | 61,547 | 61,622 | |||||||||||||||||||
Talent (1) | 5,458 | 5,605 | 19,282 | 17,304 | |||||||||||||||||||
Total depreciation and amortization | 48,503 | 49,212 | 151,137 | 150,066 | |||||||||||||||||||
Corporate depreciation and amortization | 3,939 | 4,151 | 12,005 | 12,418 | |||||||||||||||||||
Total depreciation and amortization | $ | 52,442 | $ | 53,363 | $ | 163,142 | $ | 162,484 |
(1) | On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Talent segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. This amortization expense was an adjustment to the Talent Adjusted contribution to profit. In addition, it was included in Depreciation and amortization in the table above for segment reporting. |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
US GAAP Operating (Loss) Income | $ | (67,056) | $ | 45,989 | $ | (26,582) | $ | 160,845 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring and related charges (credits) (1) | 8,807 | 448 | 45,204 | (1,161) | |||||||||||||||||||
Impairment of goodwill (2) | 99,800 | — | 99,800 | — | |||||||||||||||||||
Legal settlement (3) | 3,671 | — | 3,671 | — | |||||||||||||||||||
Accelerated amortization of an intangible asset (4) | — | — | 4,594 | — | |||||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 45,222 | $ | 46,437 | $ | 126,687 | $ | 159,684 |
(1) | See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. | ||||
(2) | See Note 12, "Goodwill and Intangible Assets" for these charges by segment. | ||||
(3) | In the three months ended January 31, 2023, we settled a litigation matter related to consideration for a previous acquisition for $3.7 million which is included in our Corporate category. | ||||
(4) | As described above, this accelerated amortization relates to the mthree trademark. |
January 31, 2023 | April 30, 2022 | ||||||||||
Finished goods | $ | 28,546 | $ | 31,270 | |||||||
Work-in-process | 1,427 | 1,729 | |||||||||
Paper and other materials | 325 | 275 | |||||||||
Total inventories before estimated sales returns and LIFO reserve | $ | 30,298 | $ | 33,274 | |||||||
Inventory value of estimated sales returns | 7,378 | 7,820 | |||||||||
LIFO reserve | (4,509) | (4,509) | |||||||||
Inventories, net | $ | 33,167 | $ | 36,585 |
April 30, 2022 (1) | Acquisitions (2) | Impairment | Foreign Translation Adjustment | January 31, 2023 | |||||||||||||||||||||||||
Research | $ | 610,416 | $ | — | $ | — | $ | (5,132) | $ | 605,284 | |||||||||||||||||||
Academic | 442,015 | 3,878 | (99,800) | (148) | 345,945 | ||||||||||||||||||||||||
Talent | 249,711 | — | — | 2,314 | 252,025 | ||||||||||||||||||||||||
Total | $ | 1,302,142 | $ | 3,878 | $ | (99,800) | $ | (2,966) | $ | 1,203,254 |
(1) | The Academic goodwill balance as of April 30, 2022 includes a cumulative pretax non-cash goodwill impairment of $110.0 million. | ||||
(2) | Refer to Note 3, "Acquisitions," for more information related to the acquisition that occurred in the three months ended January 31, 2023. |
January 31, 2023 | April 30, 2022 ⁽¹⁾ | ||||||||||
Intangible assets with definite lives, net: | |||||||||||
Content and publishing rights | $ | 466,190 | $ | 499,937 | |||||||
Customer relationships | 223,156 | 242,058 | |||||||||
Developed technology | 48,693 | 54,721 | |||||||||
Brands and trademarks (2) | 9,301 | 16,021 | |||||||||
Covenants not to compete | 323 | 393 | |||||||||
Total intangible assets with definite lives, net | 747,663 | 813,130 | |||||||||
Intangible assets with indefinite lives: | |||||||||||
Brands and trademarks | 37,000 | 37,000 | |||||||||
Publishing rights | 83,604 | 81,299 | |||||||||
Total intangible assets with indefinite lives | 120,604 | 118,299 | |||||||||
Total intangible assets, net | $ | 868,267 | $ | 931,429 |
(1) | The developed technology balance as of April 30, 2022 is presented net of accumulated impairments and write-offs of $2.8 million. The indefinite-lived brands and trademarks as of April 30, 2022 is net of accumulated impairments of $93.1 million. | ||||
(2) | On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Talent segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Service cost | $ | 218 | $ | 291 | $ | 610 | $ | 898 | |||||||||||||||
Interest cost | 6,264 | 5,122 | 18,447 | 15,523 | |||||||||||||||||||
Expected return on plan assets | (8,281) | (9,986) | (24,703) | (30,387) | |||||||||||||||||||
Amortization of prior service cost | (23) | (23) | (70) | (67) | |||||||||||||||||||
Amortization of net actuarial loss | 1,602 | 1,858 | 4,593 | 5,632 | |||||||||||||||||||
Net pension income | $ | (220) | $ | (2,738) | $ | (1,123) | $ | (8,401) |
January 31, 2023 | April 30, 2022 | ||||||||||
Short-term portion of long-term debt (1) | $ | 5,000 | $ | 18,750 | |||||||
Term loan A - Amended and Restated CA (2) | 192,966 | 204,343 | |||||||||
Revolving credit facility - Amended and Restated CA | 747,610 | 563,934 | |||||||||
Total long-term debt, less current portion | 940,576 | 768,277 | |||||||||
Total debt | $ | 945,576 | $ | 787,027 |
(1) | Relates to our term loan A under the Amended and Restated CA. | ||||
(2) | Amounts are shown net of unamortized issuance costs of $0.8 million as of January 31, 2023 and $0.3 million as of April 30, 2022. |
Notional Amount | ||||||||||||||||||||
Hedged Item (1) | Date entered into | Nature of Swap | January 31, 2022 | April 30, 2022 | Fixed Interest Rate | Variable Interest Rate | ||||||||||||||
Amended and Restated CA | December 13, 2022 | Pay fixed/receive variable | $ | 50 | $ | — | 3.772 | % | 1-month SOFR reset every month for a 3-year period ending December 15, 2025 | |||||||||||
Amended and Restated CA | June 16, 2022 | Pay fixed/receive variable | $ | 100 | $ | — | 3.467 | % | 1-month SOFR reset every month for a 3-year period ending May 15, 2024 (2) | |||||||||||
Amended and Restated CA | April 12, 2021 | Pay fixed/receive variable | $ | 100 | $ | 100 | 0.465 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2024 (2) | |||||||||||
Amended and Restated CA | April 6, 2022 | Pay fixed/receive variable | $ | 100 | $ | 100 | 2.588 | % | 1-month SOFR reset every month for a 2-year period ending April 15, 2024 (2) | |||||||||||
Amended and Restated CA | February 26, 2020 | Pay fixed/receive variable | $ | 100 | $ | 100 | 1.168 | % | 1-month SOFR reset every month for a 3-year period ending March 15, 2023 (2) | |||||||||||
Amended and Restated CA | August 7, 2019 | Pay fixed/receive variable | $ | — | $ | 100 | 1.400 | % | 1-month LIBOR reset every month for a 3-year period ending August 15, 2022 | |||||||||||
Amended and Restated CA | June 24, 2019 | Pay fixed/receive variable | $ | — | $ | 100 | 1.650 | % | 1-month LIBOR reset every month for a 3-year period ending July 15, 2022 | |||||||||||
$ | 450 | $ | 500 |
(1) | On November 30, 2022, we entered into the Second Amendment to our Amended and Restated CA. Refer to Note 15, "Debt and Available Credit Facilities" for more information related to our Amended and Restated CA. | ||||
(2) | On November 30, 2022, we amended the Amended and Restated CA (as defined in Note 15, “Debt and Available Credit Facilities”) and as a result we amended our outstanding interest rate swaps designated as cash flow hedges to change the rates from LIBOR-based rates to SOFR-based rates. We applied ASU 2020-04 at the time of modification, and there was no impact on our Condensed Consolidated Financial Statements. |
Date of Declaration by Board of Directors | Quarterly Cash Dividend | Total Dividend | Class of Common Stock | Dividend Paid Date | Shareholders of Record as of Date | |||||||||||||||||||||||||||
June 22, 2022 | $0.3475 per common share | $19.4 million | Class A and Class B | July 20, 2022 | July 6, 2022 | |||||||||||||||||||||||||||
September 29, 2022 | $0.3475 per common share | $19.3 million | Class A and Class B | October 26, 2022 | October 11, 2022 | |||||||||||||||||||||||||||
December 15, 2022 | $0.3475 per common share | $19.3 million | Class A and Class B | January 11, 2023 | December 27, 2022 |
Changes in Common Stock A: | 2023 | 2022 | |||||||||
Number of shares, beginning of year | 70,226 | 70,208 | |||||||||
Common stock class conversions | 2 | 10 | |||||||||
Number of shares issued, end of period | 70,228 | 70,218 | |||||||||
Changes in Common Stock A in treasury: | |||||||||||
Number of shares held, beginning of year | 23,515 | 23,419 | |||||||||
Purchases of treasury shares | 539 | 446 | |||||||||
Restricted shares issued under stock-based compensation plans – non-PSU Awards | (208) | (163) | |||||||||
Restricted shares issued under stock-based compensation plans – PSU Awards | (150) | (108) | |||||||||
Shares issued under the Director Plan to Directors | (3) | (2) | |||||||||
Restricted shares issued from exercise of stock options | (14) | (24) | |||||||||
Shares issued related to the acquisition of a business | — | (129) | |||||||||
Shares withheld for taxes | 129 | 110 | |||||||||
Number of shares held, end of period | 23,808 | 23,549 | |||||||||
Number of Common Stock A outstanding, end of period | 46,420 | 46,669 |
Changes in Common Stock B: | 2023 | 2022 | |||||||||
Number of shares, beginning of year | 12,956 | 12,974 | |||||||||
Common stock class conversions | (2) | (10) | |||||||||
Number of shares issued, end of period | 12,954 | 12,964 | |||||||||
Changes in Common Stock B in treasury: | |||||||||||
Number of shares held, beginning of year | 3,924 | 3,922 | |||||||||
Purchase of treasury shares | 1 | 2 | |||||||||
Number of shares held, end of period | 3,925 | 3,924 | |||||||||
Number of Common Stock B outstanding, end of period | 9,029 | 9,040 |
Three Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP Operating (Loss) Income | $ | (67,056) | $ | 45,989 | |||||||
Adjustments: | |||||||||||
Restructuring and related charges | 8,807 | 448 | |||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement (1) | 3,671 | — | |||||||||
Non-GAAP Adjusted OI | $ | 45,222 | $ | 46,437 |
(1) | In the three months ended January 31, 2023, we settled a litigation matter related to consideration for a previous acquisition for $3.7 million. |
Three Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (Loss) Income | $ | (71,469) | $ | 35,366 | |||||||
Interest expense | 11,521 | 5,103 | |||||||||
(Benefit) provision for income taxes | (5,982) | 7,853 | |||||||||
Depreciation and amortization | 52,442 | 53,363 | |||||||||
Non-GAAP EBITDA | (13,488) | 101,685 | |||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement | 3,671 | — | |||||||||
Restructuring and related charges | 8,807 | 448 | |||||||||
Foreign exchange transaction (gains) losses | (421) | 488 | |||||||||
Other income, net | (705) | (2,821) | |||||||||
Non-GAAP Adjusted EBITDA | $ | 97,664 | $ | 99,800 |
Three Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP (Loss) Income Before Taxes | $ | (77,451) | $ | 43,219 | |||||||
Pretax Impact of Adjustments: | |||||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement | 3,671 | — | |||||||||
Restructuring and related charges | 8,807 | 448 | |||||||||
Foreign exchange (gains) losses on intercompany transactions | (2,414) | 722 | |||||||||
Amortization of acquired intangible assets | 21,042 | 22,189 | |||||||||
Non-GAAP Adjusted Income Before Taxes | $ | 53,455 | $ | 66,578 |
Three Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP Income Tax (Benefit) Provision | $ | (5,982) | $ | 7,853 | |||||||
Income Tax Impact of Adjustments (1): | |||||||||||
Impairment of goodwill | 4,857 | — | |||||||||
Legal settlement | 716 | — | |||||||||
Restructuring and related charges | 2,221 | 114 | |||||||||
Foreign exchange (gains) losses on intercompany transactions | (596) | 239 | |||||||||
Amortization of acquired intangible assets | 4,591 | 4,834 | |||||||||
Non-GAAP Adjusted Income Tax Provision | $ | 5,807 | $ | 13,040 | |||||||
US GAAP Effective Tax Rate | 7.7 | % | 18.2 | % | |||||||
Non-GAAP Adjusted Effective Tax Rate | 10.9 | % | 19.6 | % |
(1) | For the three months ended January 31, 2023, the tax impact was $4.0 million from current taxes and $7.8 million from deferred taxes. For the three months ended January 31, 2022, substantially all of the tax impact was from deferred taxes. |
Three Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP (Loss) Earnings Per Share | $ | (1.29) | $ | 0.63 | |||||||
Adjustments: | |||||||||||
Impairment of goodwill | 1.69 | — | |||||||||
Legal settlement | 0.05 | — | |||||||||
Restructuring and related charges | 0.12 | 0.01 | |||||||||
Foreign exchange (gains) losses on intercompany transactions | (0.03) | 0.01 | |||||||||
Amortization of acquired intangible assets | 0.29 | 0.30 | |||||||||
EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (1) | 0.02 | — | |||||||||
Non-GAAP Adjusted EPS | $ | 0.85 | $ | 0.95 |
(1) | Represents the impact of using diluted weighted-average number of common shares outstanding (56.1 million shares for the three months ended January 31, 2023) 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. |
RESEARCH | Three Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Research Publishing (1) | $ | 213,720 | $ | 224,553 | (5) | % | (3) | % | |||||||||||||||
Research Solutions (1) | 39,880 | 38,788 | 3 | % | 6 | % | |||||||||||||||||
Total Research Revenue | 253,600 | 263,341 | (4) | % | (1) | % | |||||||||||||||||
Cost of Sales | 70,806 | 72,037 | 2 | % | — | % | |||||||||||||||||
Operating Expenses | 114,045 | 117,160 | 3 | % | (2) | % | |||||||||||||||||
Amortization of Intangible Assets | 11,572 | 11,979 | 3 | % | — | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 317 | — | # | # | |||||||||||||||||||
Contribution to Profit | 56,860 | 62,165 | (9) | % | (10) | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 317 | — | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 57,177 | 62,165 | (8) | % | (9) | % | |||||||||||||||||
Depreciation and amortization | 23,123 | 23,914 | 3 | % | 1 | % | |||||||||||||||||
Adjusted EBITDA | $ | 80,300 | $ | 86,079 | (7) | % | (7) | % | |||||||||||||||
Adjusted EBITDA Margin | 31.7% | 32.7% |
(1) | As previously announced in May 2022, our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. The revenue reclassified was $24.3 million for the three months ended January 31, 2022, $93.3 million for the year ended April 30, 2022, and $80.3 million for the year ended April 30, 2021. |
Three Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | |||||||||||||||||||||
ACADEMIC: | 2023 | 2022 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Academic Publishing | $ | 128,564 | $ | 143,583 | (10) | % | (8) | % | |||||||||||||||
University Services | 48,951 | 55,435 | (12) | % | (11) | % | |||||||||||||||||
Total Academic Revenue | 177,515 | 199,018 | (11) | % | (9) | % | |||||||||||||||||
Cost of Sales | 72,920 | 76,995 | 5 | % | 4 | % | |||||||||||||||||
Operating Expenses | 78,424 | 83,946 | 7 | % | 4 | % | |||||||||||||||||
Impairment of Goodwill (see Note 12) | 99,800 | — | # | # | |||||||||||||||||||
Amortization of Intangible Assets | 5,183 | 6,105 | 15 | % | 15 | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 1,851 | 261 | # | # | |||||||||||||||||||
Contribution to Profit | (80,663) | 31,711 | # | # | |||||||||||||||||||
Restructuring Charges (see Note 9) | 1,851 | 261 | # | # | |||||||||||||||||||
Impairment of Goodwill (see Note 12) | 99,800 | — | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 20,988 | 31,972 | (34) | % | (34) | % | |||||||||||||||||
Depreciation and amortization | 19,922 | 19,693 | (1) | % | (2) | % | |||||||||||||||||
Adjusted EBITDA | $ | 40,910 | $ | 51,665 | (21) | % | (20) | % | |||||||||||||||
Adjusted EBITDA Margin | 23.0% | 26.0% |
Three Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | |||||||||||||||||||||
TALENT: | 2023 | 2022 | |||||||||||||||||||||
Total Talent Revenue | $ | 60,253 | $ | 53,525 | 13 | % | 18 | % | |||||||||||||||
Cost of Sales | 30,325 | 23,884 | (27) | % | (35) | % | |||||||||||||||||
Operating Expenses | 21,400 | 20,993 | (2) | % | (6) | % | |||||||||||||||||
Amortization of Intangible Assets | 3,213 | 2,972 | (8) | % | (11) | % | |||||||||||||||||
Restructuring Charges (Credits) (see Note 9) | 72 | (41) | # | # | |||||||||||||||||||
Contribution to Profit | 5,243 | 5,717 | (8) | % | (7) | % | |||||||||||||||||
Restructuring Charges (Credits) (see Note 9) | 72 | (41) | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 5,315 | 5,676 | (6) | % | (5) | % | |||||||||||||||||
Depreciation and amortization | 5,458 | 5,605 | 3 | % | (1) | % | |||||||||||||||||
Adjusted EBITDA | $ | 10,773 | $ | 11,281 | (5) | % | (2) | % | |||||||||||||||
Adjusted EBITDA Margin | 17.9% | 21.1% |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP Operating (Loss) Income | $ | (26,582) | $ | 160,845 | |||||||
Adjustments: | |||||||||||
Restructuring and related charges (credits) | 45,204 | (1,161) | |||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement | 3,671 | — | |||||||||
Accelerated amortization of an intangible asset (1) | 4,594 | — | |||||||||
Non-GAAP Adjusted OI | $ | 126,687 | $ | 159,684 |
(1) | As described above, we determined that a revision of the useful life of the mthree trademark was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (Loss) Income | $ | (51,111) | $ | 105,163 | |||||||
Interest expense | 27,185 | 14,739 | |||||||||
(Benefit) provision for income taxes | (1,397) | 52,673 | |||||||||
Depreciation and amortization | 163,142 | 162,484 | |||||||||
Non-GAAP EBITDA | 137,819 | 335,059 | |||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement | 3,671 | — | |||||||||
Restructuring and related charges (credits) | 45,204 | (1,161) | |||||||||
Foreign exchange transaction (gains) losses | (283) | 1,488 | |||||||||
Gain on sale of certain assets | — | (3,694) | |||||||||
Other income, net | (976) | (9,524) | |||||||||
Non-GAAP Adjusted EBITDA | $ | 285,235 | $ | 322,168 |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP (Loss) Income Before Taxes | $ | (52,508) | $ | 157,836 | |||||||
Pretax Impact of Adjustments: | |||||||||||
Impairment of goodwill | 99,800 | — | |||||||||
Legal settlement | 3,671 | — | |||||||||
Restructuring and related charges (credits) | 45,204 | (1,161) | |||||||||
Foreign exchange losses on intercompany transactions | 906 | 494 | |||||||||
Amortization of acquired intangible assets | 68,611 | 67,081 | |||||||||
Gain on sale of certain assets | — | (3,694) | |||||||||
Non-GAAP Adjusted Income Before Taxes | $ | 165,684 | $ | 220,556 |
(1) | For the nine months ended January 31, 2023, the tax impact was $5.5 million from current taxes and $26.3 million from deferred taxes. For the nine months ended January 31, 2022, substantially all of the tax impact was from deferred taxes. | ||||
(2) | These adjustments impacted deferred taxes in the nine months ended January 31, 2022. |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
US GAAP (Loss) Earnings Per Share | $ | (0.92) | $ | 1.86 | |||||||
Adjustments: | |||||||||||
Impairment of goodwill | 1.69 | — | |||||||||
Legal settlement | 0.05 | — | |||||||||
Restructuring and related charges (credits) | 0.60 | (0.02) | |||||||||
Foreign exchange losses on intercompany transactions | 0.01 | — | |||||||||
Amortization of acquired intangible assets | 0.96 | 0.93 | |||||||||
Gain on sale of certain assets | — | (0.05) | |||||||||
Income tax adjustments | — | 0.37 | |||||||||
EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (1) | 0.01 | — | |||||||||
Non-GAAP Adjusted EPS | $ | 2.40 | $ | 3.09 |
(1) | Represents the impact of using diluted weighted-average number of common shares outstanding (56.3 million shares for the nine months ended January 31, 2023) 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. |
Nine Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | |||||||||||||||||||||
RESEARCH: | 2023 | 2022 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Research Publishing (1) | $ | 685,884 | $ | 706,690 | (3) | % | 1 | % | |||||||||||||||
Research Solutions (1) | 113,988 | 106,561 | 7 | % | 11 | % | |||||||||||||||||
Total Research Revenue | 799,872 | 813,251 | (2) | % | 2 | % | |||||||||||||||||
Cost of Sales | 213,108 | 218,369 | 2 | % | (1) | % | |||||||||||||||||
Operating Expenses | 351,016 | 341,084 | (3) | % | (8) | % | |||||||||||||||||
Amortization of Intangible Assets | 35,009 | 35,556 | 2 | % | (3) | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 1,577 | 238 | # | # | |||||||||||||||||||
Contribution to Profit | 199,162 | 218,004 | (9) | % | (8) | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 1,577 | 238 | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 200,739 | 218,242 | (8) | % | (7) | % | |||||||||||||||||
Depreciation and amortization | 70,308 | 71,140 | 1 | % | (2) | % | |||||||||||||||||
Adjusted EBITDA | $ | 271,047 | $ | 289,382 | (6) | % | (5) | % | |||||||||||||||
Adjusted EBITDA Margin | 33.9 | % | 35.6 | % |
(1) | As previously announced in May 2022, our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. The revenue reclassified was $68.4 million for the nine months ended January 31, 2022, $93.3 million for the year ended April 30, 2022, and $80.3 million for the year ended April 30, 2021. |
Nine Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | |||||||||||||||||||||
ACADEMIC: | 2023 | 2022 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Academic Publishing | $ | 354,728 | $ | 400,740 | (11) | % | (9) | % | |||||||||||||||
University Services | 152,892 | 169,002 | (10) | % | (9) | % | |||||||||||||||||
Total Academic Revenue | 507,620 | 569,742 | (11) | % | (9) | % | |||||||||||||||||
Cost of Sales | 215,344 | 230,985 | 7 | % | 5 | % | |||||||||||||||||
Operating Expenses | 243,084 | 250,798 | 3 | % | — | % | |||||||||||||||||
Impairment of Goodwill (see Note 12) | 99,800 | — | # | # | |||||||||||||||||||
Amortization of Intangible Assets | 17,700 | 19,131 | 7 | % | 7 | % | |||||||||||||||||
Restructuring Charges (Credits) (see Note 9) | 10,091 | (347) | # | # | |||||||||||||||||||
Contribution to Profit | (78,399) | 69,175 | # | # | |||||||||||||||||||
Restructuring Charges (Credits) (see Note 9) | 10,091 | (347) | # | # | |||||||||||||||||||
Impairment of Goodwill (see Note 12) | 99,800 | — | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 31,492 | 68,828 | (54) | % | (52) | % | |||||||||||||||||
Depreciation and amortization | 61,547 | 61,622 | — | % | (1) | % | |||||||||||||||||
Adjusted EBITDA | $ | 93,039 | $ | 130,450 | (29) | % | (27) | % | |||||||||||||||
Adjusted EBITDA Margin | 18.3 | % | 22.9 | % |
Nine Months Ended January 31, | % Change Favorable (Unfavorable) | Constant Currency % Change Favorable (Unfavorable) | |||||||||||||||||||||
TALENT: | 2023 | 2022 | |||||||||||||||||||||
Total Talent Revenue | $ | 186,281 | $ | 154,282 | 21 | % | 28 | % | |||||||||||||||
Cost of Sales | 89,932 | 64,300 | (40) | % | (51) | % | |||||||||||||||||
Operating Expenses | 63,502 | 64,371 | 1 | % | (5) | % | |||||||||||||||||
Amortization of Intangible Assets | 12,559 | 8,996 | (40) | % | (43) | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 2,400 | 245 | # | # | |||||||||||||||||||
Contribution to Profit | 17,888 | 16,370 | 9 | % | 13 | % | |||||||||||||||||
Restructuring Charges (see Note 9) | 2,400 | 245 | # | # | |||||||||||||||||||
Accelerated amortization of an intangible asset (1) | 4,594 | — | # | # | |||||||||||||||||||
Adjusted Contribution to Profit | 24,882 | 16,615 | 50 | % | 53 | % | |||||||||||||||||
Depreciation and amortization | 14,688 | 17,304 | 15 | % | 9 | % | |||||||||||||||||
Adjusted EBITDA | $ | 39,570 | $ | 33,919 | 17 | % | 21 | % | |||||||||||||||
Adjusted EBITDA Margin | 21.2 | % | 22.0 | % |
(1) | On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Talent segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted, and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. |
Metric | Fiscal Year 2022 Actual (1) | Fiscal Year 2023 Outlook Constant currency Previous (1) | Fiscal Year 2023 Outlook Constant currency Current (1) | Foreign Currency Impact (2) | Fiscal Year 2023 Outlook Year to date average rates Current (3) | ||||||||||||
Revenue | $2,083 | $2,110 - $2,150 | $2,065 - $2,090 | $(60) | $2,005 - $2,030 | ||||||||||||
Adjusted EBITDA | $433 | $425 - $450 | $395 - $410 | Immaterial | $395 - $410 | ||||||||||||
Adjusted EPS | $4.16 | $3.70 - $4.05 | $3.30 - $3.55 | Immaterial | $3.30 - $3.55 | ||||||||||||
Free Cash Flow | $223 | $210 - $235 | $160 - $185 | Immaterial | $160 - $185 |
(1) | Based on fiscal year 2022 average rates of 1.15 euro and 1.36 British pound. | ||||
(2) | Variance between fiscal year 2022 average rates and year to date fiscal year 2023 average rates. | ||||
(3) | Fiscal year 2023 outlook at average year to date rates of 1.04 euro and 1.20 British pound. |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by operating activities | $ | 53,718 | $ | 158,484 | |||||||
Net cash used in investing activities | (80,072) | (152,051) | |||||||||
Net cash provided by financing activities | 55,284 | 13,099 | |||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | $ | (2,670) | $ | (3,875) |
Nine Months Ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by operating activities | $ | 53,718 | $ | 158,484 | |||||||
Less: Additions to technology, property and equipment | (57,616) | (60,668) | |||||||||
Less: Product development spending | (17,763) | (20,388) | |||||||||
Free cash flow less product development spending | $ | (21,661) | $ | 77,428 |
Net cash provided by operating activities – Nine months ended January 31, 2022 | $ | 158.5 | |||
Net (loss) income adjusted for items to reconcile net (loss) income to net cash provided by operating activities, which would include such noncash items as, depreciation and amortization, and the change in deferred taxes | (53.5) | ||||
Working capital changes: | |||||
Accounts receivable, net and contract liabilities | 19.4 | ||||
Accounts payable and accrued royalties | (27.9) | ||||
Changes in other assets and liabilities | (42.8) | ||||
Net cash provided by operating activities – Nine months ended January 31, 2023 | $ | 53.7 |
Nine Months Ended January 31, | |||||||||||
2022 | 2021 | ||||||||||
Shares repurchased – Class A | 539 | 446 | |||||||||
Shares repurchased – Class B | 1 | 2 | |||||||||
Average price – Class A and Class B | $ | 44.47 | $ | 55.48 |
January 31, 2023 | April 30, 2022 | ||||||||||
Increase in Inventories, net | $ | 7,378 | $ | 7,820 | |||||||
Decrease in Accrued royalties | $ | (3,678) | $ | (3,893) | |||||||
Increase in Contract liabilities | $ | 27,974 | $ | 31,135 | |||||||
Print book sales return reserve net liability balance | $ | (16,918) | $ | (19,422) |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as part of a Publicly Announced Program | Maximum Number of Shares that May be Purchased Under the Program | Maximum Dollar Value of Shares that May be Purchased Under Additional Plans or Programs (Dollars in millions) | |||||||||||||||||||||||||
November 2022 | — | $ | — | — | — | $ | 180.0 | ||||||||||||||||||||||
December 2022 | 93,909 | 40.08 | 93,909 | — | 176.2 | ||||||||||||||||||||||||
January 2023 | 64,077 | 42.71 | 64,077 | — | 173.5 | ||||||||||||||||||||||||
Total | 157,986 | $ | 41.14 | 157,986 | — | $ | 173.5 |
Material Contracts | |||||
Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
Inline XBRL | |||||
101.INS* | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
JOHN WILEY & SONS, INC. Registrant | ||||||||
By | /s/ Brian A. Napack | |||||||
Brian A. Napack | ||||||||
President and Chief Executive Officer | ||||||||
By | /s/ Christina Van Tassell | |||||||
Christina Van Tassell | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
By | /s/ Christopher F. Caridi | |||||||
Christopher F. Caridi | ||||||||
Senior Vice President, Global Corporate Controller and Chief Accounting Officer | ||||||||
Dated: March 10, 2023 |
1 Year John Wiley and Sons Chart |
1 Month John Wiley and Sons Chart |
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