![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
John Wiley and Sons Inc | NYSE:WLYB | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.25 | 0.62% | 40.83 | 40.83 | 40.27 | 40.83 | 124 | 21:00:02 |
Exceeds FY24 earnings guidance and reports confident FY25 outlook and GenAI momentum
Wiley (NYSE: WLY) today reported results for the fourth quarter and fiscal year ended April 30, 2024.
HIGHLIGHTS
MANAGEMENT COMMENTARY
“We finished the year strong and head into Fiscal 2025 with full confidence in our Research trajectory, GenAI momentum, and profit and performance outlook,” said Matthew Kissner, Interim President and CEO. “We are seeing robust demand to publish and significant output acceleration in Research as well as continued outperformance in Learning. On top of this, we’re seeing significant interest in leveraging our authoritative content to train AI and machine learning models. Finally, we’ve executed on our stated commitments with discipline and speed, enabling us to exceed our earnings guidance and accelerate our cost savings program, setting us up well for continued margin expansion and strong cash generation ahead.”
FOURTH QUARTER SUMMARY
Fiscal Year 2024 was a transition year for Wiley as the Company divested non-core assets, restructured and realigned the organization, and recorded multiple non-cash impairments. Results reflect this activity.
FULL YEAR SUMMARY
For GAAP purposes, Wiley’s reporting structure consists of three segments: (1) Research, (2) Learning, and (3) Held for Sale or Sold. Adjusted numbers exclude our Held for Sale or Sold reporting segment, as well as restructuring costs and other unusual items. See the reconciliation provided in the tables that follow.
Research
Learning
Corporate Expense Category
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 sold on January 1, 2024. The sale of Wiley Edge, with the exception of its India operation, was completed on May 31, 2024. The sale of Wiley Edge's India operation will be finalized later in calendar year 2024. See accompanying financial tables for Q4 and FY24 performance.
EPS
Balance Sheet, Cash Flow, and Capital Allocation
FISCAL YEAR 2025 OUTLOOK
Metric
($millions, except EPS)
Fiscal 2024 Results Ex-Divestitures
Fiscal 2025 Outlook Ex-Divestitures
Adj. Revenue*
$1,617
$1,650 to $1,690
Research
$1,043
Low to mid-single digit growth
Learning
$574
Low-single digit growth
Adj. EBITDA*
$369
$385 to $410
Adj. EPS*
$2.78
$3.25 to $3.60
Free Cash Flow
$114
Approx. $125
*Excludes held for sale or sold assets
The Company remains on track with its Fiscal 2026 targets.
EARNINGS CONFERENCE CALL
Scheduled for today, June 13 at 10:00 am (ET). Access webcast at Investor Relations at investors.wiley.com, or directly at https://events.q4inc.com/attendee/333300189. U.S. callers, please dial (888) 210-3346 and enter the participant code 2521217#. International callers, please dial (646) 960-0253 and enter the participant code 2521217#.
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 U.S. 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 U.S. GAAP.
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 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; and (xiii) other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission . 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 INCOME (LOSS) (Dollars in thousands, except per share information) (unaudited) Three Months Ended Year Ended April 30, April 30,2024
2023
2024
2023
Revenue, net$
468,461
$
526,127
$
1,872,987
$
2,019,900
Costs and expenses: Cost of sales
123,345
174,157
579,722
692,541
Operating and administrative expenses
252,062
245,821
1,013,520
1,037,399
Impairment of goodwill (3)
-
-
108,449
99,800
Restructuring and related charges
11,008
4,185
63,041
49,389
Amortization of intangible assets
13,264
19,492
55,994
84,881
Total costs and expenses
399,679
443,655
1,820,726
1,964,010
Operating income
68,782
82,472
52,261
55,890
As a % of revenue
14.7%
15.7%
2.8%
2.8%
Interest expense
(11,411)
(10,560)
(49,003)
(37,745)
Foreign exchange transaction gains (losses)
530
611
(2,959)
894
(Losses) gains on sale of businesses and certain assets and impairment charges related to assets held-for-sale (3)
(3,642)
10,177
(183,389)
10,177
Other (expense) income, net
(257)
2,908
(3,957)
3,884
Income (loss) before taxes
54,002
85,608
(187,047)
33,100
Provision for income taxes
28,737
17,264
13,272
15,867
Effective tax rate
53.2%
20.2%
-7.1%
47.9%
Net income (loss)$
25,265
$
68,344
$
(200,319)
$
17,233
As a % of revenue
5.4%
13.0%
-10.7%
0.9%
Earnings (loss) per share Basic$
0.46
$
1.23
$
(3.65)
$
0.31
Diluted (4)$
0.46
$
1.22
$
(3.65)
$
0.31
Weighted average number of common shares outstanding Basic
54,591
55,355
54,945
55,558
Diluted (4)
55,356
56,137
54,945
56,355
Notes: (1) The supplementary information included in this press release for the three months and year ended April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. (2) All amounts are approximate due to rounding. (3) As previously announced, we are divesting 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 January 1, 2024 we completed the sale of University Services. On January 8, 2024 we entered into an agreement to sell our Wiley Edge business, which closed on May 31, 2024, with the exception of its India operations. The sale of Wiley Edge's India operation will be finalized later in calendar year 2024. We expect to complete the sale of CrossKnowledge in the second quarter of fiscal year 2025.As a result, we reorganized our segments in the first quarter of fiscal year 2024, and our new structure consists of three reportable segments which includes Research (no change), Learning, and Held for Sale or Sold, as well as a Corporate expense category (no change). As a result of this realignment, we were required to test goodwill for impairment immediately before and after the realignment. Prior to the realignment, we concluded that the fair value of the University Services reporting unit within the Held for Sale or Sold segment was below its carrying value which resulted in a pretax noncash goodwill impairment of $11.4 million in the year ended April 30, 2024. After the realignment, we concluded that the fair value of the CrossKnowledge reporting unit within the Held for Sale or Sold segment was below its carrying value which resulted in a pretax noncash goodwill impairment of $15.3 million in the year ended April 30, 2024.As a result of signing an agreement to sell Wiley Edge and the decrease in the fair value of the business which was impacted by a decline in placements in the third quarter of fiscal year 2024, we tested the goodwill of the Wiley Edge reporting unit within the Held for Sale or Sold segment for impairment. We concluded that the carrying value of the reporting unit was above its fair value which resulted in a pretax noncash goodwill impairment of $81.7 million in the year ended April 30, 2024.In the three months ended April 30, 2024, there was an increase in the pretax loss on the sale of University Services after the closing of approximately $5.6 million, which resulted in a total pretax loss of $107.0 million (net of tax loss of $80.5 million) in the year ended April 30, 2024. We also completed the sale of our Tuition Manager business previously in our Held for Sale or Sold segment, which resulted in a total net pretax loss of $1.5 million (net of tax loss of $1.1 million) in the year ended April 30, 2024.Wiley Edge and CrossKnowledge continue to be reported as held-for-sale. We recorded a held-for-sale pretax impairment release of $2.0 million and charges of $74.8 million in the three months and year ended April 30, 2024, respectively, related to Wiley Edge and CrossKnowledge. The total impairment charge for Wiley Edge in the year ended April 30, 2024 was $19.4 million, which includes a release of $1.2 million in the three months ended April 30, 2024. The total impairment charge for CrossKnowledge in the year ended April 30, 2024 was $55.4 million, which includes a release of $0.8 million in the three months ended April 30, 2024. (4) In calculating diluted net loss per common share for the year ended April 30, 2024, our diluted weighted average number of common shares outstanding excludes the effect of unvested restricted stock units and other stock awards as the effect was antidilutive. This occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of US GAAP Earnings (Loss) per Share to Non-GAAP Adjusted EPS Three Months Ended Year Ended April 30, April 30,2024
2023
2024
2023
US GAAP Income (Loss) Per Share - Diluted$
0.46
$
1.22
$
(3.65)
$
0.31
Adjustments: Impairment of goodwill
-
0.09
1.90
1.77
Legal settlement (3)
-
-
-
0.05
Pension income related to the wind up of the Russia plan (4)
-
(0.02)
-
(0.02)
Restructuring and related charges
0.16
0.06
0.85
0.66
Foreign exchange losses (gains) on intercompany transactions, including the write off of certain cumulative translation adjustments (4)
0.01
(0.01)
0.02
0.01
Amortization of acquired intangible assets (5)
0.02
0.26
0.68
1.21
Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale (6)
0.04
(0.11)
2.81
(0.11)
Held for Sale or Sold segment Adjusted Net Income (6)
(0.03)
(0.26)
(0.42)
(0.36)
Income tax adjustments
0.55
(0.04)
0.54
(0.04)
EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (7)
-
-
0.05
-
Non-GAAP Adjusted Earnings Per Share - Diluted$
1.21
$
1.19
$
2.78
$
3.48
Reconciliation of US GAAP Income (Loss) Before Taxes to Non-GAAP Adjusted Income Before Taxes Three Months Ended Year Ended (amounts in thousands) April 30, April 30,2024
2023
2024
2023
US GAAP Income (Loss) Before Taxes$
54,002
$
85,608
$
(187,047)
$
33,100
Pretax Impact of Adjustments: Impairment of goodwill
-
-
108,449
99,800
Legal settlement (3)
-
-
-
3,671
Pension income related to the wind up of the Russia plan (4)
-
(1,750)
-
(1,750)
Restructuring and related charges
11,008
4,185
63,041
49,389
Foreign exchange losses (gains) on intercompany transactions, including the write off of certain cumulative translation adjustments (4)
815
(449)
1,903
457
Amortization of acquired intangible assets (5)
13,324
20,566
57,874
89,177
Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale (6)
3,641
(10,177)
183,389
(10,177)
Held for Sale or Sold segment Adjusted Income Before Taxes (6)
(2,408)
(17,974)
(30,661)
(26,094)
Non-GAAP Adjusted Income Before Taxes$
80,382
$
80,009
$
196,948
$
237,573
Reconciliation of US GAAP Income Tax Provision 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$
28,737
$
17,264
$
13,272
$
15,867
Income Tax Impact of Adjustments (8) Impairment of goodwill
255
(4,857)
2,953
-
Legal settlement (3)
-
-
-
716
Pension income related to the wind up of the Russia plan (4)
-
(437)
-
(437)
Restructuring and related charges
2,425
992
15,662
12,151
Foreign exchange losses (gains) on intercompany transactions, including the write off of certain cumulative translation adjustments (4)
471
(142)
582
132
Amortization of acquired intangible assets (5)
11,459
5,372
20,127
20,183
Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale (6)
1,197
(3,860)
26,908
(3,860)
Held for Sale or Sold segment Adjusted Tax Provision (6)
(622)
(3,555)
(7,140)
(5,533)
Income Tax Adjustments Impact of increase in UK statutory rate on deferred tax balances (9)
-
2,370
-
2,370
Impact of valuation allowance (10)
(30,249)
-
(30,249)
-
Non-GAAP Adjusted Income Tax Provision$
13,673
$
13,147
$
42,115
$
41,589
US GAAP Effective Tax Rate
53.2%
20.2%
-7.1%
47.9%
Non-GAAP Adjusted Effective Tax Rate
17.0%
16.4%
21.4%
17.5%
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 and year ended April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. (2) All amounts are approximate due to rounding. (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. (4) In fiscal year 2023 due to the closure of our operations in Russia, the Russia entity was deemed substantially liquidated. In the three months and year ended April 30, 2024, we wrote off an additional $0.2 million and $1.0 million, respectively, of cumulative translation adjustments in earnings. In the three months and year ended April 30, 2023, we wrote off $1.1 million of cumulative translation adjustments in earnings. This amount is reflected in Foreign exchange transaction gains (losses) on our Condensed Consolidated Statements of Net Income (Loss). In addition, in the three months and year ended April 30, 2023, there was a curtailment and settlement credit due to the wind up of the Russia Pension Plan of $1.8 million which is reflected in Other (expense) income, net on our Condensed Consolidated Statements of Net Income (Loss). (5) 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 Income (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 Income (Loss). (6) We are divesting non-core businesses, including University Services, Wiley Edge, and CrossKnowledge. On January 1, 2024 we completed the sale of University Services. Wiley Edge and CrossKnowledge continue to be reported as held-for-sale, and we measured each business at the lower of carrying value or fair value less costs to sell. The total impairment charge for Wiley Edge in the year ended April 30, 2024 was $19.4 million, which includes a release of $1.2 million in the three months ended April 30, 2024. The total impairment charge for CrossKnowledge in the year ended April 30, 2024 was $55.4 million, which includes a release of $0.8 million in the three months ended April 30, 2024.In the three months ended April 30, 2024, there was an increase in the pretax loss on the sale of University Services after the closing of approximately $5.6 million, which resulted in a total pretax loss of $107.0 million (net of tax loss of $80.5 million) in the year ended April 30, 2024. We also completed the sale of our Tuition Manager business previously in our Held for Sale or Sold segment, which resulted in a total net pretax loss of $1.5 million (net of tax loss of $1.1 million) in the year ended April 30, 2024.In addition, our Adjusted EPS excludes the Adjusted Net Income of our Held for Sale or Sold segment. (7) Represents the impact of using diluted weighted-average number of common shares outstanding (55.7 million for the year ended April 30, 2024) 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. (8) For the three months and year ended April 30, 2024 substantially all of the tax impact was from deferred taxes. For the three months ended April 30, 2023, the tax impact was $4.3 million of current tax benefit and $0.1 million of deferred taxes. For the year ended April 30, 2023, substantially all of the tax impact was from deferred taxes. (9) In the three months ended July 31, 2021, the UK enacted legislation that increased its statutory rate from 19% to 25% effective April 1, 2023. For the three months and year ended April 30, 2023, we recorded a $2.4 million noncash deferred tax benefit related to pensions due to the UK statutory rate change. These adjustments impacted deferred taxes. (10) In fiscal year 2024, due to temporary differences in the US, our deferred taxes reversed from a deferred tax liability position to a deferred tax asset position. Due to losses in the US resulting from impairments, restructuring, and acceleration of depreciation expense on capitalized software, we concluded it was more-likely-than-not that all or a portion of our deferred tax asset may not be realized. As a result, we increased the valuation allowance by $30.2 million. JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Year Ended April 30, April 30,2024
2023
2024
2023
Net Income (Loss)$
25,265
$
68,344
$
(200,319)
$
17,233
Interest expense
11,411
10,560
49,003
37,745
Provision for income taxes
28,737
17,264
13,272
15,867
Depreciation and amortization
47,613
50,111
176,989
213,253
Non-GAAP EBITDA
113,026
146,279
38,945
284,098
Impairment of goodwill
-
-
108,449
99,800
Legal settlement
-
-
-
3,671
Restructuring and related charges
11,008
4,185
63,041
49,389
Foreign exchange (gains) losses, including the write off of certain cumulative translation adjustments
(530)
(611)
2,959
(894)
Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale
3,642
(10,177)
183,389
(10,177)
Other expense (income), net
257
(2,908)
3,957
(3,884)
Held for Sale or Sold segment Adjusted EBITDA (2)
(2,409)
(19,698)
(32,148)
(42,677)
Non-GAAP Adjusted EBITDA$
124,994
$
117,070
$
368,592
$
379,326
Adjusted EBITDA Margin
28.3%
27.6%
22.8%
23.3%
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 and year ended April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K 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 April 30, Favorable (Unfavorable)2024
2023 (3)
Reported Constant Currency Research: Revenue, net Research Publishing$
233,455
$
240,889
-3%
-3%
Research Solutions
37,577
39,550
-5%
-5%
Total Revenue, net$
271,032
$
280,439
-3%
-3%
Non-GAAP Adjusted Operating Income$
68,282
$
83,245
-18%
-18%
Depreciation and amortization
25,513
22,700
-12%
-12%
Non-GAAP Adjusted EBITDA$
93,795
$
105,945
-11%
-12%
Adjusted EBITDA margin
34.6%
37.8%
Learning: Revenue, net Academic$
98,908
$
80,807
22%
22%
Professional
71,237
63,049
13%
13%
Total Revenue, net$
170,145
$
143,856
18%
18%
Non-GAAP Adjusted Operating Income$
57,682
$
32,915
75%
75%
Depreciation and amortization
16,358
15,253
-7%
-7%
Non-GAAP Adjusted EBITDA$
74,040
$
48,168
54%
54%
Adjusted EBITDA margin
43.5%
33.5%
Held for Sale or Sold: Total Revenue, net$
27,284
$
101,832
-73%
-74%
Non-GAAP Adjusted Operating Income$
2,409
$
11,997
-80%
-84%
Depreciation and amortization
-
7,701
# # Non-GAAP Adjusted EBITDA$
2,409
$
19,698
-88%
-90%
Adjusted EBITDA margin
8.8%
19.3%
Non-GAAP Adjusted Corporate Expenses$
(48,583)
$
(41,500)
-17%
-17%
Depreciation and amortization
5,742
4,457
-29%
-29%
Non-GAAP Adjusted EBITDA$
(42,841)
$
(37,043)
-16%
-15%
Consolidated Results: Revenue, net$
468,461
$
526,127
-11%
-11%
Less: Held for Sale or Sold Segment (4)
(27,284)
(101,832)
-73%
-74%
Adjusted Revenue, net$
441,177
$
424,295
4%
4%
Operating Income$
68,782
$
82,472
17%
17%
Adjustments: Restructuring charges
11,008
4,185
# # Held for Sale or Sold Segment Adjusted Operating Income (4)
(2,409)
(11,997)
-80%
76%
Non-GAAP Adjusted Operating Income$
77,381
$
74,660
4%
4%
Depreciation and amortization
47,613
50,111
5%
5%
Less: Held for Sale or Sold Segment depreciation and amortization (4)
-
(7,701)
# # Non-GAAP Adjusted EBITDA$
124,994
$
117,070
7%
7%
Adjusted EBITDA margin
28.3%
27.6%
Notes: (1) The supplementary information included in this press release for the three months and year ended April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. (2) All amounts are approximate due to rounding. (3) As previously announced, in the three months ended July 31, 2023 we changed our reportable segments. Our new segment reporting structure consists of three reportable segments which includes Research (no change), Learning, and Held for Sale or Sold, as well as a Corporate expense category (no change). Prior period segment results have been recast to the new segment presentation. There were no changes to our consolidated financial results. (4) 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. (5) In the three months ended January 31, 2023, we settled a litigation matter related to consideration for a previous acquisition for $3.7 million. (6) We discontinued use of the mthree trademark that resulted in a change in the useful life and accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. # Variance greater than 100% JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) (3) SEGMENT RESULTS (in thousands) (unaudited) % Change Year Ended April 30, Favorable (Unfavorable)2024
2023 (3)
Reported Constant Currency Research:Revenue, net Research Publishing
$
892,784
$
926,773
-4%
-5%
Research Solutions
149,921
153,538
-2%
-3%
Total Revenue, net$
1,042,705
$
1,080,311
-3%
-4%
Non-GAAP Adjusted Operating Income$
237,763
$
283,984
-16%
-16%
Depreciation and amortization
93,422
93,008
0%
0%
Non-GAAP Adjusted EBITDA$
331,185
$
376,992
-12%
-13%
Adjusted EBITDA margin
31.8%
34.9%
Learning: Revenue, net Academic$
323,541
$
304,633
6%
6%
Professional
251,198
241,762
4%
3%
Total Revenue, net$
574,739
$
546,395
5%
5%
Non-GAAP Adjusted Operating Income$
142,733
$
100,100
43%
43%
Depreciation and amortization
57,696
57,698
0%
0%
Non-GAAP Adjusted EBITDA$
200,429
$
157,798
27%
27%
Adjusted EBITDA margin
34.9%
28.9%
Held for Sale or Sold: Total Revenue, net$
255,543
$
393,194
-35%
-36%
Non-GAAP Adjusted Operating Income$
28,711
$
1,186
# # Depreciation and amortization
3,437
41,491
92%
92%
Non-GAAP Adjusted EBITDA$
32,148
$
42,677
-25%
-27%
Adjusted EBITDA margin
12.6%
10.9%
Non-GAAP Adjusted Corporate Expenses$
(185,456)
$
(171,926)
-8%
-7%
Depreciation and amortization
22,434
16,462
-36%
-36%
Non-GAAP Adjusted EBITDA$
(163,022)
$
(155,464)
-5%
-4%
Consolidated Results: Revenue, net$
1,872,987
$
2,019,900
-7%
-8%
Less: Held for Sale or Sold Segment (4)
(255,543)
(393,194)
-35%
-36%
Adjusted Revenue, net$
1,617,444
$
1,626,706
-1%
-1%
Operating Income$
52,261
$
55,890
-6%
-7%
Adjustments: Restructuring charges
63,041
49,389
-28%
-28%
Impairment of goodwill
108,449
99,800
-9%
-9%
Legal settlement (5)
-
3,671
# # Accelerated amortization of an intangible asset (6)
-
4,594
# # Held for Sale or Sold Segment Adjusted Operating Income (4)
(28,711)
(1,186)
# # Non-GAAP Adjusted Operating Income$
195,040
$
212,158
-8%
-8%
Depreciation and amortization
176,989
208,659
15%
16%
Less: Held for Sale or Sold depreciation and amortization (4)
(3,437)
(41,491)
92%
92%
Non-GAAP Adjusted EBITDA$
368,592
$
379,326
-3%
-3%
Adjusted EBITDA margin
22.8%
23.3%
# Variance greater than 100% JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) (unaudited) April 30, April 30,2024
2023
Assets: Current assets Cash and cash equivalents$
83,249
$
106,714
Accounts receivable, net
224,198
310,121
Inventories, net
26,219
30,733
Prepaid expenses and other current assets
85,954
93,711
Current assets held-for-sale (2)
34,422
-
Total current assets
454,042
541,279
Technology, property and equipment, net
192,438
247,149
Intangible assets, net
615,694
854,794
Goodwill
1,091,368
1,204,050
Operating lease right-of-use assets
69,074
91,197
Other non-current assets
283,719
170,341
Non-current assets held-for-sale (2)
19,160
-
Total assets$
2,725,495
$
3,108,810
Liabilities and shareholders' equity: Current liabilities Accounts payable$
55,659
$
84,325
Accrued royalties
97,173
113,423
Short-term portion of long-term debt
7,500
5,000
Contract liabilities
483,778
504,695
Accrued employment costs
96,980
80,458
Short-term portion of operating lease liabilities
18,294
19,673
Other accrued liabilities
76,266
87,979
Current liabilities held-for-sale (2)
37,632
-
Total current liabilities
873,282
895,553
Long-term debt
767,096
743,292
Accrued pension liability
70,832
86,304
Deferred income tax liabilities
97,186
144,042
Operating lease liabilities
94,386
115,540
Other long-term liabilities
71,760
79,052
Long-term liabilities held-for-sale (2)
11,237
-
Total liabilities
1,985,779
2,063,783
Shareholders' equity
739,716
1,045,027
Total liabilities and shareholders' equity$
2,725,495
$
3,108,810
Notes: (1) The supplementary information included in this press release for April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. (2) As previously announced, we are divesting non-core businesses, including Wiley Edge and CrossKnowledge. These businesses met the held-for-sale criteria and were measured at the lower of carrying value or fair value less costs to sell. We recorded a pretax impairment of $74.8 million in the year ended April 30, 2024 which is recorded as a contra asset account within Current assets held-for-sale and Non-current assets held-for-sale. JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Year Ended April 30,2024
2023
Operating activities: Net (loss) income$
(200,319)
$
17,233
Impairment of goodwill
108,449
99,800
Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale
183,389
(10,217)
Amortization of intangible assets
55,994
84,881
Amortization of product development assets
22,835
32,366
Depreciation and amortization of technology, property, and equipment
98,160
96,006
Other noncash charges
106,507
95,636
Net change in operating assets and liabilities
(167,377)
(138,634)
Net cash provided by operating activities
207,638
277,071
Investing activities: Additions to technology, property, and equipment
(76,080)
(81,155)
Product development spending
(17,262)
(22,958)
Businesses acquired in purchase transactions, net of cash acquired
(3,116)
(7,292)
(Costs) proceeds related to the sale of businesses and certain assets
(1,771)
15,585
Acquisitions of publication rights and other
(8,414)
(2,578)
Net cash used in investing activities
(106,643)
(98,398)
Financing activities: Net debt borrowings (repayments)
27,767
(38,934)
Cash dividends
(76,964)
(77,298)
Purchases of treasury shares
(45,050)
(35,000)
Other
(12,974)
(17,336)
Net cash used in financing activities
(107,221)
(168,568)
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(1,493)
(3,570)
Change in cash, cash equivalents and restricted cash for period
(7,719)
6,535
Cash, cash equivalents and restricted cash - beginning
107,262
100,727
Cash, cash equivalents and restricted cash - ending (2)$
99,543
$
107,262
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING (3) Year Ended April 30,2024
2023
Net cash provided by operating activities$
207,638
$
277,071
Less: Additions to technology, property, and equipment
(76,080)
(81,155)
Less: Product development spending
(17,262)
(22,958)
Free cash flow less product development spending$
114,296
$
172,958
Notes: (1) The supplementary information included in this press release for the year ended April 30, 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. (2) Cash, cash equivalents and restricted cash as of April 30, 2024 includes held-for-sale cash, cash equivalents and restricted cash of $16.2 million. (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:
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613737152/en/
Brian Campbell brian.campbell@wiley.com 1-201.748.6874
1 Year John Wiley and Sons Chart |
1 Month John Wiley and Sons Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions