John Wiley & Sons, Inc. (NYSE:JWA)(NYSE:JWB), a global
research and education company, today announced results for the
third quarter ended January 31, 2020.
- GAAP Results: Revenue of $467 million (+4%) and EPS of $0.63
(+3%)
- Adjusted Results (at constant currency): Revenue +4%, EBITDA
+7%, and EPS +10%
- Acquired mthree, a leader in delivering job-ready tech talent
for corporations, for $129 million
- Full year outlook raised for EPS; reaffirmed for revenue,
EBITDA, and Free Cash Flow
“We saw good momentum across Wiley this quarter,” said Brian
Napack, Wiley’s President and CEO. “The Research and Education
Services businesses continued to deliver solid revenue growth and
improved profitability, while the pace of decline in book
publishing moderated. Our focus on high-demand disciplines and
careers continued to gain traction while important new client
agreements, partnerships and targeted M&A accelerated momentum
in key areas such as open science and career-focused
education.”
GAAP Measures Unaudited ($millions
except for EPS)
Q3 2020
Q3 2019
Change
Revenue
$467.1
$449.4
+4%
Diluted EPS
$0.63
$0.61
+3%
Non-GAAP Measures
Q3 2020
Q3 2019
Change Constant
Currency
Revenue
$467.1
$449.4
+4%
Adjusted EBITDA
$95.5
$89.8
+7%
Adjusted EPS
$0.68
$0.61
+10%
Excluding acquisitions and currency
impact, revenue rose 2% for the quarter. Foreign exchange had
minimal impact in the quarter.
Third Quarter Revenue
- Research Publishing & Platforms increased 3% as
reported and at constant currency, primarily driven by growth in
open access.
- Academic & Professional Learning increased 1% as
reported and 2% at constant currency, driven by contributions from
zyBooks and Knewton acquisitions (+$6 million) and modest organic
growth in Higher Education publishing. Excluding the zyBooks and
Knewton acquisitions, revenue declined 2% at constant
currency.
- Education Services increased 20% as reported and 19% at
constant currency, driven by organic growth of 10% and the
one-month contribution from mthree (+$5 million), which was
acquired on January 1.
Third Quarter Earnings
- GAAP Operating Income declined 4% to $48 million.
Adjusted Operating Income rose 4%, primarily due to revenue
growth.
- Adjusted EBITDA rose 6% to $95 million. Adjusted EBITDA
margin for the quarter was 20%.
- Research Publishing & Platforms Adjusted EBITDA at
constant currency rose 8% due to revenue growth and savings from
business optimization initiatives and reduced print volumes.
- Academic & Professional Learning Adjusted EBITDA at
constant currency declined 9%, reflecting investments in
acquisitions and other growth initiatives.
- Education Services Adjusted EBITDA grew to $1 million
from a loss of $2 million in the prior year.
- Corporate Expenses declined 8% to $34 million due to the
timing of certain benefit expenses.
- GAAP EPS increased by 3%, reflecting improved
operating performance, a lower effective tax rate (21%) and lower
foreign exchange transaction losses, which offset higher
restructuring charges and interest expense. Adjusted EPS rose 10%
on a constant currency basis.
Third Quarter Returns to Shareholders
- Repurchased 205,370 shares for a total of $10 million at an
average cost per share of $48.69.
- Paid cash dividends totaling $19 million ($0.34 per
share).
GAAP Measures Unaudited ($millions
except for EPS)
YTD 2020
YTD 2019
Change
Revenue
$1,357
$1,309
+4%
Diluted EPS
$1.48
$1.81
(19%)
Net Cash Provided by Operating
Activities
$88.9
$52.1
+71%
Non-GAAP Measures
YTD 2020
YTD 2019
Change Constant Currency
Revenue
$1,357
$1,309
+5%
Adjusted EBITDA
$263.0
$267.2
(1%)
Adjusted EPS
$1.74
$1.92
(9%)
Free Cash Flow Less Product Development
Spending
$5.2
($16.6)
+$22M
Excluding acquisitions and currency
impact, revenue was flat for the nine months. Wiley recorded an
unfavorable FX variance of $13 million in revenue. FX had marginal
impact on EBITDA, EPS, and Free Cash Flow.
YTD Commentary
- Revenue increased on growth in Research Publishing &
Platforms (+2% as reported, +3% constant currency) and Education
Services (+50% as reported, or +10% constant currency and excluding
impact of acquisitions), partially offset by a decline in Academic
& Professional Learning (-4% as reported, -6% at constant
currency and excluding impact of acquisitions).
- GAAP EPS declined by $0.33 to $1.48 due in part to
higher restructuring charges in the current fiscal year. Adjusted
EPS and Adjusted EBITDA declined 9% and 1%,
respectively, on a constant currency basis due to investment in
growth initiatives, including acquisitions.
- Net Cash Provided by Operating Activities rose 71% to
$89 million, primarily driven by the timing of cash collections for
annual research journal subscriptions. Free Cash Flow less
Product Development Spending was a source of $5 million
compared to a use of $17 million in the prior year. Capital
expenditures rose $15 million to $84 million due to increased
investment in technology-enabled products and services.
FISCAL YEAR 2020 OUTLOOK
The Company is raising its EPS outlook and reaffirming for
Revenue, EBITDA, and Free Cash Flow.
ITEM ($M, EXCEPT EPS)
FY19 ACTUAL
FY20 OUTLOOK
FX IMPACT
MTHREE IMPACT
Q3 UPDATE* (incl. FX and
MTHREE)
Revenue
$1,800
$1,855-$1,885
($17)
$20
Reaffirmed
Adjusted EBITDA
$388
$357-$372
($5)
($2)
Reaffirmed
Adjusted EPS
$2.96
$2.35-$2.45
($0.06)
($0.07)
Raised, $2.45-$2.55
Free Cash Flow
$149
$210-$230
($5)
($2)
Reaffirmed
*Updated outlook reflects actual currency
impact to date, current exchange rates sustained through Q4 (Euro
at $1.09 and Pound Sterling at $1.30), and impact of acquisitions
closed through nine months
EARNINGS CONFERENCE CALL
Scheduled for today, March 4 at 10:00 a.m. (ET). Access the
webcast on Wiley.com, at https://www.wiley.com/en-us/investors.
U.S. callers, please dial (844) 231-0103 and enter the participant
code 6969259#. International callers, please dial (216)
562-0402 and enter the participant code 6969259#.
ABOUT WILEY
Wiley drives the world forward with research and education.
Through publishing, platforms and services, we help researchers,
professionals, students, universities, and corporations to achieve
their goals in an ever-changing world. And for more than 200 years,
we have delivered consistent performance to all of our
stakeholders. The Company's website can be accessed at
www.wiley.com.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance
results such as “Adjusted EPS,” “Adjusted Revenue,” “Adjusted
Operating Income,” “Adjusted EBITDA,” “Adjusted CTP,” “Free Cash
Flow less Product Development Spending,” “organic 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 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.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements
concerning the Company's Fiscal Year 2020 Outlook, 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 Company’s
ability to realize operating savings over time and in fiscal year
2020 in connection with our multi-year Business Optimization
Program and (xi) 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.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION (1)(2) CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (in thousands, except per share
data) (unaudited)
Three Months Ended
Nine Months Ended
January 31,
January 31,
2020
2019
2020
2019
Revenue, net
$
467,131
$
449,367
$
1,356,866
$
1,308,890
Costs and expenses: Cost of sales
153,924
143,879
440,433
404,194
Operating and administrative expenses
245,683
240,715
736,233
717,348
Restructuring and related charges (credits)
3,298
(348)
18,034
3,562
Amortization of intangibles
15,732
14,775
45,722
39,825
Total Costs and Expenses
418,637
399,021
1,240,422
1,164,929
Operating Income
48,494
50,346
116,444
143,961
As a % of revenue
10.4%
11.2%
8.6%
11.0%
Interest expense
(6,309)
(5,346)
(19,173)
(11,750)
Foreign exchange transaction losses
(1,745)
(2,525)
(1,761)
(4,308)
Interest and other income
4,232
2,742
9,602
7,717
Income Before Taxes
44,672
45,217
105,112
135,620
Provision for income taxes
9,229
10,275
21,355
30,599
Effective tax rate
20.7%
22.7%
20.3%
22.6%
Net Income
$
35,443
$
34,942
$
83,757
$
105,021
As a % of revenue
7.6%
7.8%
6.2%
8.0%
Weighted-Average Shares - Diluted
56,503
57,626
56,698
57,882
Earnings per share - Diluted
$
0.63
$
0.61
$
1.48
$
1.81
Notes:
(1) The supplementary information included in this press release
for the three and nine months ended January 31, 2020 is preliminary
and subject to change prior to the filing of our upcoming Quarterly
Report on Form 10-Q with the Securities and Exchange
Commission.
In the three months ended January 31, 2020, we completed the
acquisition of mthree, which is included in our Education Services
segment results. In the nine months ended January 31, 2020, we
completed the acquisition of Zyante Inc. ("Zybooks") and certain
assets of Knewton, Inc. (“Knewton”), which are included in our
Academic & Professional Learning segment results and three
immaterial acquisitions, of which two are included in our Research
Publishing & Platforms segment and one included in our Academic
& Professional Learning segment.
(2) All amounts are approximate due to rounding.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP EPS
to NON-GAAP ADJUSTED EPS - DILUTED (unaudited)
Three Months Ended
Nine Months Ended
January 31,
January 31,
2020
2019
2020
2019
GAAP Earnings Per Share - Diluted
$
0.63
$
0.61
$
1.48
$
1.81
Adjustments: Restructuring and related charges (A)
0.04
-
0.24
0.05
Foreign exchange losses on intercompany transactions (A)
0.01
-
0.02
0.06
Non-GAAP Adjusted Earnings Per Share - Diluted
0.68
$
0.61
1.74
$
1.92
Notes: (A) The table below shows the net of tax
impact of our multi-year Business Optimization Program,
Restructuring and Reinvestment Program and foreign exchange losses
on intercompany transactions.
Three Months Ended
Nine Months Ended
January 31,
January 31,
(amounts in millions)
2020
2019
2020
2019
Net of tax, charges related to the Business Optimization Program
$
2.9
$
-
$
13.9
$
-
Net of tax, (credits) charges related to the Restructuring and
Reinvestment Program
$
(0.4
)
$
(0.3
)
$
(0.2
)
$
2.7
Net of tax, foreign exchange transaction losses
$
0.6
$
0.1
$
1.3
$
3.2
(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 and nine months ended January 31, 2020 is
preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP NET
INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA
(unaudited) Three Months Ended Nine Months
Ended January 31, January 31,
2020
2019
2020
2019
Net Income
$
35,443
$
34,942
$
83,757
$
105,021
Interest expense
6,309
5,346
19,173
11,750
Provision for income taxes
9,229
10,275
21,355
30,599
Depreciation and amortization
43,681
39,833
128,538
119,656
Non-GAAP EBITDA
94,662
90,396
252,823
267,026
Restructuring and related charges (credits)
3,298
(348
)
18,034
3,562
Foreign exchange transaction losses
1,745
2,525
1,761
4,308
Interest and other income
(4,232
)
(2,742
)
(9,602
)
(7,717
)
Non-GAAP Adjusted EBITDA
$
95,473
$
89,831
$
263,016
$
267,179
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 and nine months ended January 31, 2020 is
preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION (1) CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (in thousands)
(unaudited)
January 31,
April 30,
2020
2019 (2)
Assets: Current Assets Cash and cash equivalents
$
117,355
$
92,890
Accounts receivable, net (2)
301,521
306,631
Inventories, net
43,139
35,582
Prepaid expenses and other current assets
71,075
67,441
Total Current Assets
533,090
502,544
Product Development Assets, net
55,071
62,470
Royalty Advances, net
42,761
36,185
Technology, Property and Equipment, net
297,073
289,021
Intangible Assets, net
925,934
865,572
Goodwill
1,226,257
1,095,666
Operating Lease Right-of-Use Assets (3)
142,308
-
Other Non-Current Assets
102,089
97,308
Total Assets
$
3,324,583
$
2,948,766
Liabilities and Shareholders' Equity: Current
Liabilities Accounts payable
$
63,838
$
90,980
Accrued royalties
135,813
78,062
Short-term portion of long-term debt
7,813
-
Contract liabilities (2)
413,126
519,129
Accrued employment costs
88,414
97,230
Accrued income taxes
9,500
21,025
Short-term portion of operating lease liabilities (3)
18,950
-
Other accrued liabilities
77,084
75,900
Total Current Liabilities
814,538
882,326
Long-Term Debt
789,645
478,790
Accrued Pension Liability
145,207
166,331
Deferred Income Tax Liabilities
146,703
143,775
Operating Lease Liabilities (3)
160,781
-
Other Long-Term Liabilities
70,474
96,197
Total Liabilities
2,127,348
1,767,419
Shareholders' Equity
1,197,235
1,181,347
Total Liabilities and Shareholders' Equity
$
3,324,583
$
2,948,766
(1) The supplementary information included in this press release
for January 31, 2020 is preliminary and subject to change prior to
the filing of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. (2) During the third
quarter of 2020, the Company identified an immaterial error within
its condensed consolidated statement of financial position,
including the results for the fiscal year ended April 30, 2019.
Certain consideration received for services not yet performed,
mainly for our annual subscription licensing revenue agreements,
was presented as a reduction to Accounts receivable, net, rather
than an increase to Contract liabilities. The correction increases
Accounts receivable, net and increases Contract liabilities by
approximately $11.8 million for the fiscal year ended April 30,
2019. There was no impact on revenue, operating income, net income,
earnings per share, or cash flow provided by operations or the
statements of cash flows. Management has evaluated all relevant
quantitative and qualitative factors and has concluded that the
error is not material to the condensed consolidated statement of
financial position for the previously reported periods. The Company
has revised its accompanying condensed consolidated statement of
financial position to correct this for fiscal year ended April 30,
2019. The current policy for our subscription licensing agreements
is to record accounts receivable when performance occurs and
recognize contract liabilities once the invoice is due, or cash
payment is received from the customer. (3) We adopted ASU
2016-02, "Leases (Topic 842)” on May 1, 2019 using the required
modified retrospective approach, whereby we used the effective date
as the date of initial application and therefore, previously
reported financial information was not updated.
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION (1)(2) SEGMENT RESULTS
(in thousands) (unaudited)
Three Months Ended January
31,
% Change
Favorable
(Unfavorable)
2020
2019 (2)
Reported
Constant Currency
Research Publishing & Platforms: Revenue, net
Research Publishing
$
223,393
$
217,973
2%
2%
Research Platforms
10,163
9,064
12%
12%
Total Revenue, net
$
233,556
$
227,037
3%
3%
Contribution to Profit
$
63,861
$
60,863
5%
5%
Adjustments: Restructuring charges (credits)
40
(51)
Non-GAAP Adjusted Contribution to Profit
$
63,901
$
60,812
5%
5%
Depreciation and amortization
17,056
14,651
Non-GAAP Adjusted EBITDA
$
80,957
$
75,463
7%
8%
Academic & Professional Learning: Revenue,
net Education Publishing
$
100,982
$
95,562
6%
6%
Professional Learning
77,296
80,561
-4%
-4%
Total Revenue, net
178,278
176,123
1%
2%
Contribution to Profit
$
28,793
$
37,536
-23%
-23%
Adjustments: Restructuring charges (credits)
1,541
(202)
Non-GAAP Adjusted Contribution to Profit
$
30,334
$
37,334
-19%
-18%
Depreciation and amortization
17,806
16,026
Non-GAAP Adjusted EBITDA
$
48,140
$
53,360
-10%
-9%
Education Services: Revenue, net Education
Services
$
50,776
$
46,207
10%
10%
mthree
4,521
-
100%
100%
Total Revenue, net
55,297
46,207
20%
19%
Contribution to Profit
$
(5,166)
$
(7,589)
32%
32%
Adjustments: Restructuring charges
4
272
Non-GAAP Adjusted Contribution to Profit
$
(5,162)
$
(7,317)
29%
30%
Depreciation and amortization
5,987
5,725
Non-GAAP Adjusted EBITDA
$
825
$
(1,592)
# # Corporate Expenses:
$
(38,994)
$
(40,464)
4%
4%
Adjustments: Restructuring charges (credits)
1,713
(367)
Non-GAAP Adjusted Corporate Expenses
$
(37,281)
$
(40,831)
9%
9%
Depreciation and amortization
2,832
3,431
Non-GAAP Adjusted EBITDA
$
(34,449)
$
(37,400)
8%
8%
Consolidated Results: Revenue, net
$
467,131
$
449,367
4%
4%
Operating Income
$
48,494
$
50,346
-4%
-3%
Adjustments: Restructuring charges (credits)
3,298
(348)
Non-GAAP Adjusted Operating Income
$
51,792
$
49,998
4%
4%
Depreciation and amortization
43,681
39,833
Non-GAAP Adjusted EBITDA
$
95,473
$
89,831
6%
7%
As a % of revenue
20.4%
20.0%
(1) The supplementary information included in this press release
for the three months ended January 31, 2020 is preliminary and
subject to change prior to the filing of our upcoming Quarterly
Report on Form 10-Q with the Securities and Exchange Commission.
(2) As previously announced, we have changed our segment
reporting structure to align with our strategic focus areas: (1)
Research Publishing & Platforms, which continues to include the
Research and Atypon businesses, (2) Academic & Professional
Learning, which is the former “Publishing” segment combined with
our corporate training businesses – previously noted as
Professional Assessment and Corporate Learning and (3) Education
Services, which includes our Online Program Management and related
businesses. Prior period segment results have been revised to the
new segment presentation. There were no changes to our consolidated
financial results.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2) SEGMENT RESULTS
(in thousands) (unaudited) % Change Nine
Months Ended January 31, Favorable (Unfavorable)
2020
2019 (2)
Reported ConstantCurrency Research Publishing
& Platforms: Revenue, net Research Publishing
$
668,405
$
654,397
2%
3%
Research Platforms
29,235
27,032
8%
8%
Total Revenue, net
$
697,640
$
681,429
2%
3%
Contribution to Profit
$
182,798
$
177,390
3%
3%
Adjustments: Restructuring charges
3,386
1,251
Non-GAAP Adjusted Contribution to Profit
$
186,184
$
178,641
4%
4%
Depreciation and amortization
51,246
45,438
Non-GAAP Adjusted EBITDA
$
237,430
$
224,079
6%
6%
Academic & Professional Learning: Revenue,
net Education Publishing
$
268,246
$
277,070
-3%
-2%
Professional Learning
232,615
245,147
-5%
-4%
Total Revenue, net
$
500,861
$
522,217
-4%
-3%
Contribution to Profit
$
68,754
$
106,381
-35%
-35%
Adjustments: Restructuring charges
5,146
1,275
Non-GAAP Adjusted Contribution to Profit
$
73,900
$
107,656
-31%
-31%
Depreciation and amortization
51,679
51,076
Non-GAAP Adjusted EBITDA
$
125,579
$
158,732
-21%
-20%
Education Services: Revenue, net Education
Services
$
153,844
$
105,244
46%
46%
mthree
4,521
-
100%
100%
Total Revenue, net
$
158,365
$
105,244
50%
51%
Contribution to Profit
$
(9,782)
$
(13,475)
27%
28%
Adjustments: Restructuring charges
1,618
374
Non-GAAP Adjusted Contribution to Profit
$
(8,164)
$
(13,101)
38%
38%
Depreciation and amortization
17,007
12,237
Non-GAAP Adjusted EBITDA
$
8,843
$
(864)
# # Corporate Expenses:
$
(125,326)
$
(126,335)
1%
0%
Adjustments: Restructuring charges
7,884
662
Non-GAAP Adjusted Corporate Expenses
$
(117,442)
$
(125,673)
7%
6%
Depreciation and amortization
8,606
10,905
Non-GAAP Adjusted EBITDA
$
(108,836)
$
(114,768)
5%
5%
Consolidated Results: Revenue, net
$
1,356,866
$
1,308,890
4%
5%
Operating Income
$
116,444
$
143,961
-19%
-19%
Adjustments: Restructuring charges
18,034
3,562
Non-GAAP Adjusted Operating Income
$
134,478
$
147,523
-9%
-9%
Depreciation and amortization
128,538
119,656
Non-GAAP Adjusted EBITDA
$
263,016
$
267,179
-2%
-1%
As a % of revenue
19.4%
20.4%
Notes: (1) The supplementary information included in this
press release for the nine months ended January 31, 2020 is
preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. (2) As previously announced, we have
changed our segment reporting structure to align with our strategic
focus areas: (1) Research Publishing & Platforms, which
continues to include the Research and Atypon businesses, (2)
Academic & Professional Learning, which is the former
“Publishing” segment combined with our corporate training
businesses – previously noted as Professional Assessment and
Corporate Learning and (3) Education Services, which includes our
Online Program Management and related businesses. Prior period
segment results have been revised to the new segment presentation.
There were no changes to our consolidated financial results.
# Not meaningful
JOHN WILEY & SONS,
INC.
SUPPLEMENTARY INFORMATION (1) CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (in thousands)
(unaudited) Nine Months Ended January
31,
2020
2019 (2)
Operating Activities: Net income
$
83,757
$
105,021
Amortization of intangibles
45,722
39,825
Amortization of product development assets
26,653
27,417
Depreciation and amortization of technology, property, and
equipment
56,163
52,414
Other non-cash charges and credits
51,436
25,704
Net change in operating assets and liabilities
(174,844
)
(198,237
)
Net Cash Provided By Operating Activities
88,887
52,144
Investing Activities: Additions to technology,
property, and equipment
(65,924
)
(49,988
)
Product development spending
(17,770
)
(18,787
)
Businesses acquired in purchase transactions, net of cash acquired
(200,642
)
(190,467
)
Acquisitions of publication rights and other
(1,548
)
(4,386
)
Net Cash Used in Investing Activities
(285,884
)
(263,628
)
Financing Activities: Net debt borrowings
319,417
273,312
Cash dividends
(57,632
)
(56,963
)
Purchase of treasury shares
(35,000
)
(34,994
)
Other
(5,903
)
(379
)
Net Cash Provided By Financing Activities
220,882
180,976
Effects of Exchange Rate Changes on Cash, Cash
Equivalents and Restricted Cash
530
(6,359
)
Change in Cash, Cash Equivalents and Restricted Cash for
Period
24,415
(36,867
)
Cash, Cash Equivalents and Restricted Cash -
Beginning
93,548
170,257
Cash, Cash Equivalents and Restricted Cash - Ending
$
117,963
$
133,390
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT
DEVELOPMENT SPENDING Nine Months Ended
January 31,
2020
2019
Net Cash Provided By Operating Activities
$
88,887
$
52,144
Less: Additions to technology, property, and equipment
(65,924
)
(49,988
)
Less: Product development spending
(17,770
)
(18,787
)
Free Cash Flow less Product Development Spending
$
5,193
$
(16,631
)
See Explanation of Usage of Non-GAAP Measures included in
this supplemental information. (1) The supplementary
information included in this press release for the nine months
ended January 31, 2020 is preliminary and subject to change prior
to the filing of our upcoming Quarterly Report on Form 10-Q with
the Securities and Exchange Commission. (2) The Condensed
Consolidated Statement of Cash Flows for the nine months ended
January 31, 2019, includes a reclassification of $4.5 million
between Operating Activities within the net change in operating
assets and liabilities and Investing Activities related to costs to
fulfill a contract and product development spending. In addition,
for the nine months ended January 31, 2019, amortization expense
related to costs to fulfill a contract of $1.9 million was
reclassified from amortization of product development assets to
other non-cash charges and credits within Operating Activities.
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:
- Adjusted Earnings Per Share (“Adjusted EPS”);
- Free Cash Flow less product development spending;
- Adjusted Revenue;
- Adjusted Operating Income and margin;
- Adjusted Contribution to Profit ("CTP") and margin;
- EBITDA and Adjusted EBITDA;
- Inorganic contribution;
- Results on a constant currency basis.
Management uses these non-GAAP performance measures as
supplemental indicators of our operating performance and financial
position as well for internal reporting and forecasting purposes,
when publicly providing its outlook, to evaluate the Company's
performance and to evaluate and calculate incentive compensation.
Non-GAAP performance measures do not have standardized meanings
prescribed by US GAAP and therefore may not be comparable to the
calculation of similar measures used by other companies, and should
not be viewed as alternatives to measures of financial results
under US GAAP.
The Company presents these non-GAAP performance measures in
addition to GAAP financial results because it believes that these
non-GAAP performance measures provide useful information to certain
investors and financial analysts for operational trends and
comparisons across accounting periods. The use of these non-GAAP
performance measures provides 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. For example:
- Adjusted EPS, Adjusted Revenue, Adjusted Operating Profit,
Adjusted Contribution to Profit, Adjusted EBITDA and Inorganic
contribution provide a comparable basis to analyze operating
results and earnings and are measures commonly used by shareholders
to measure our performance.
- Free Cash Flow less product development spending helps assess
our ability, over the long term, to create value for our
shareholders as it represents cash available to repay debt, pay
common dividends and fund share repurchases and new
acquisitions.
- Results on a constant currency basis removes distortion from
the effects of foreign currency movements to provide better
comparability of our business trends from period to period. We
measure our performance before the impact of foreign currency (or
at “constant currency”), which means that we apply the same foreign
currency exchange rates for the current and equivalent prior
period.
In addition, the Company has historically provided these or
similar non-GAAP performance measures and understands that some
investors and financial analysts find this information helpful in
analyzing the Company's operating margins, and net income and
comparing the Company's financial performance to that of its peer
companies and competitors. Based on interactions with investors, we
also believe that our non-GAAP performance measures are regarded as
useful to our investors as supplemental to our GAAP financial
results, and that there is no confusion regarding the adjustments
or our operating performance to our investors due to the
comprehensive nature of our disclosures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200304005193/en/
Brian Campbell Investor Relations brian.campbell@wiley.com (201)
748-6874
John Wiley & Sons (NYSE:JWB)
Historical Stock Chart
From Jun 2024 to Jul 2024
John Wiley & Sons (NYSE:JWB)
Historical Stock Chart
From Jul 2023 to Jul 2024
