UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934

June 10, 2021
(Date of Report)
(Date of earliest event reported)

JOHN WILEY & SONS, INC.
(Exact name of registrant as specified in its charter)

New York
(State or other jurisdiction of incorporation)

 
001-11507
13-5593032
 
----------------------------------------------------
---------------------------------------------
 
Commission File Number
IRS Employer Identification Number
 
111 River Street, Hoboken New Jersey
07030
 
----------------------------------------------------
---------------------------------------------
 
Address of principal executive offices
Zip Code
 
Registrant’s telephone number, including area code:
(201) 748-6000
   
---------------------------------------------

Not Applicable
 (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

  ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Class A Common Stock, par value $1.00 per share
 
JW.A
 
New York Stock Exchange
Class B Common Stock, par value $1.00 per share
 
JW.B
 
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02: RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On June 10, 2021, John Wiley & Sons Inc., a New York corporation (the “Company”), issued a press release announcing the Company’s financial results for the fourth quarter and fiscal year 2021. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

ITEM 7.01 REGULATION FD DISCLOSURE

On June 10, 2021, the Company held its fourth quarter fiscal 2021 earnings conference call. The Company is furnishing as Exhibit 99.2 to this Current Report on Form 8-K the presentation materials that were provided and discussed during the earnings conference call.

The information in these Items 2.02 and 7.01, including the exhibits hereto, (x) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and (y) shall not be incorporated by reference into any filing of the Company with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the Company specifically states that the information or exhibits in this particular report are incorporated by reference). The furnishing of the information set forth in this report is not intended to, and does not, constitute a determination or admission as to the materiality or completeness of such information.

ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit No. Description

99.1 - Press release dated June 10, 2021 “Wiley Reports Fourth Quarter and Fiscal Year 2021 Results.”

99.2 - Presentation materials dated June 10, 2021.

104 - Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



 
JOHN WILEY & SONS, INC.
 
Registrant





 
By 
/s/ Brian A. Napack
  
   
Brian A. Napack
  
   
President and
  
   
Chief Executive Officer
  






 
By 
/s/ John A. Kritzmacher
  
   
John A. Kritzmacher
  
   
Executive Vice President and
Chief Financial Officer
  
       


 
Dated: June 10, 2021








    


Wiley Reports Fourth Quarter and Fiscal Year 2021 Results
June 10, 2021 - Hoboken, NJ – John Wiley & Sons, Inc. (NYSE: JW-A and JW-B), a global leader in research and education, today announced results for the fourth quarter and fiscal year ended April 30, 2021.

FOURTH QUARTER 2021 SUMMARY
●
GAAP results:  Revenue of $536 million, Operating Income of $51 million, and EPS of $0.73
●
Adjusted results (at constant currency):  Revenue +10%, EBITDA +21%, and EPS +41%

FISCAL YEAR 2021 SUMMARY
●
GAAP results:  Revenue of $1,942 million, Operating Income of $186 million, EPS of $2.63, and Cash Flow from Operations of $360 million
●
Adjusted results (at constant currency):  Revenue +4%, EBITDA +16%, and EPS +27%
●
Free Cash Flow of $257 million, up 48% from prior year
●
Digital products and tech-enabled services now at 82% of total revenue, up from 80% a year ago

MANAGEMENT COMMENTARY
“Fiscal 2021 was a good year for Wiley as our growth strategies in open research and career-connected education took firm root and benefited from long-term trends pulled forward by COVID,” said Brian Napack, President and CEO.  “These positive market dynamics, combined with great execution in a very complex time, resulted in strong performance and increasing momentum.  In the face of historic challenges, Wiley continued to help researchers and learners pursue their critical journeys of discovery and growth.” 

FOURTH QUARTER PERFORMANCE

GAAP Measures
Unaudited ($millions except for EPS)
    
Q4 2021
      
Q4 2020
    
Change
  
Revenue
  
$
536.3
    
$
474.6
      
+13
%
Operating Income (Loss)
  
$
51.2
    
$ 
(170.7
)
  
NM
  
Diluted EPS
  
$
0.73
    
$ 
(2.83
)
  
NM
  
Non-GAAP Measures
    
Q4 2021
      
Q4 2020
    
Change
Constant Currency
  
Revenue
  
$
536.3
    
$
474.6
      
+10
%
Adjusted EBITDA
  
$
112.7
    
$
92.8
      
+21
%
Adjusted EPS
  
$
0.84
    
$
0.66
      
+41
%

Excluding FX and acquisitions, revenue rose 7% for the quarter.  Wiley recorded a favorable FX variance of $14.8 million in revenue and $0.5 million in Adjusted EBITDA, along with an unfavorable FX variance of $0.09 in Adjusted EPS.

Revenue
●
Research Publishing & Platforms rose 13% as reported and 4% at constant currency and excluding acquisitions, driven primarily by strong growth in open access.
●
Academic & Professional Learning grew 15% as reported and 12% at constant currency driven by strong growth in Education Publishing and trade publishing, accompanied by further recovery in corporate training.
●
Education Services increased 9% as reported and 7% at constant currency, driven by growth in online enrollment and mthree IT talent placements.

Adjusted EBITDA
●
Research Publishing & Platforms was down 6% at constant currency due to increased editorial resources to support higher article output, as well as higher annual incentive compensation and Hindawi acquisition costs.
●
Academic & Professional Learning rose 57% at constant currency, reflecting revenue growth, business optimization gains, and COVID-related savings, offsetting higher annual incentive compensation.
●
Education Services rose 32%, driven by revenue growth and business optimization gains, offsetting higher annual incentive compensation.
●
Adjusted Corporate Expenses were down 11% mainly due to lower retirement plan expense.

EPS
●
GAAP EPS was $0.73 compared to a loss of ($2.83) in the prior year period.  Wiley recorded a restructuring charge of $0.12 per share this quarter primarily related to business optimization efforts.
●
Adjusted EPS growth was primarily due to higher operating income and a lower effective tax rate.

FISCAL YEAR 2021 PERFORMANCE

GAAP Measures
Unaudited ($millions except for EPS)
  
Fiscal 2021
    
Fiscal 2020
    
Change
  
Revenue
  
$
1,941.5
    
$
1,831.5
      
+6
%
Operating Income (Loss)
  
$
185.5
    
$ 
(54.3
)
  
NM
  
Diluted EPS
  
$
2.63
    
$ 
(1.32
)
  
NM
  
Net Cash Provided by Operating Activities
  
$
359.9
    
$
288.4
      
+25
%
Non-GAAP Measures
  
Fiscal 2021
    
Fiscal 2020
    
Change
Constant Currency
  
Revenue
  
$
1,941.5
    
$
1,831.5
      
+4
%
Adjusted EBITDA
  
$
419.0
    
$
355.8
      
+16
%
Adjusted EPS
  
$
2.92
    
$
2.40
      
+27
%
Free Cash Flow Less Product Development Spending
  
$
256.6
    
$
173.2
      
+48
%

Excluding FX and acquisitions, revenue rose 1%.  Wiley recorded a favorable FX variance of $27.8 million in revenue and $4.7 million in Adjusted EBITDA, along with an unfavorable FX variance of $0.13 in Adjusted EPS.

●
Revenue growth was driven by Research Publishing & Platforms (+7% as reported, +3% constant currency and excluding impact of acquisitions) and Education Services (+21% as reported, +7% constant currency and excluding impact of acquisitions), partially offset by a decline in Academic & Professional Learning (-1% as reported, -3% at constant currency and excluding impact of acquisitions).
●
GAAP EPS increase mainly reflected operating income growth this year and impairment and restructuring charges in the prior year.  Fiscal 2021 restructuring charges totalling $0.44 per share were primarily related to a previously disclosed reduction in Wiley’s real estate footprint.
●
Adjusted EPS and Adjusted EBITDA growth largely due to revenue growth, business optimization gains, and COVID-related savings, including travel and events.  Wiley’s Adjusted EBITDA margin rose from 19.4% in Fiscal 2020 to 21.6% in Fiscal 2021.
●
Balance Sheet:  The Company’s net debt-to-EBITDA ratio was 1.7, inclusive of acquisitions.
●
Net Cash Provided by Operating Activities and Free Cash Flow less Product Development Spending increase primarily due to higher cash earnings.  Capital Expenditures declined $12 million to $103 million largely due to delayed first-half investment in response to COVID-19.
●
Acquisitions:  The Company spent $298 million in cash to acquire Hindawi, a leader in open access research publishing.
●
Returns to Shareholders:  The Company utilized approximately $77 million of cash for dividends and $15.8 million to repurchase approximately 310,000 shares at an average cost per share of $50.93.

FISCAL YEAR 2022 OUTLOOK
Given positive market trends and Wiley’s favorable momentum, the Company anticipates revenue growth to continue to accelerate in Fiscal 2022, with organic growth anticipated for all segments.

●
Revenue Outlook:  Wiley expects revenue to exceed $2 billion for the first time, with mid-to-high single digit growth anticipated for Research Publishing & Platforms, low-single digit growth for Academic & Professional Learning, and low-teens growth for Education Services.
●
Earnings Outlook:  Wiley expects profit gains from revenue growth to be tempered by investments to accelerate growth initiatives, as well as higher T&E expenses due to the resumption of in-person business activities.  Adjusted EPS performance is expected to be moderated by higher depreciation and amortization expense, and a higher effective tax rate.
●
Free Cash Flow Outlook:  Wiley expects strong cash earnings to be partially offset by higher capex (outlook of $120-$130 million vs. $103 million in Fiscal 2021), non-recurrence of a $21 million tax refund received in Fiscal 2021, and higher annual incentive compensation payments related to Fiscal 2021 performance.

Metric ($millions, except EPS)
  
Fiscal 2021
    
Fiscal 2022 Outlook
  
Revenue
  
$
1,942
    
$
2,070 to $2,100
  
Adjusted EBITDA
  
$
419
    
$
415 to $435
  
Adjusted EPS
  
$
2.92
    
$
2.80 to $3.05
  
Free Cash Flow
  
$
257
    
$
200 to $220
  

EARNINGS CONFERENCE CALL
Scheduled for today, June 10 at 10:00 am (ET).  Access webcast at Investor Relations at investors.wiley.com, or directly at https://event.on24.com/wcc/r/3081625/07B503CEDF337A0960EE124635E07D12.  U.S. callers, please dial (844) 418-0103 and enter the participant code 3516229#.  International callers, please dial (236) 714-3019 and enter the participant code 3516229#.

ABOUT WILEY
Wiley (NYSE: JW-A) is a global leader in research and education, unlocking human potential by enabling discovery, powering education, and shaping workforces. For over 200 years, Wiley has fueled the world’s knowledge ecosystem. Today, our high-impact content, platforms, and services help researchers, learners, institutions, and corporations achieve their goals in an ever-changing world. Visit us at Wiley.com, Like us on Facebook and  Follow us on Twitter and LinkedIn.

NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as “Adjusted EPS,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted CTP,” “Adjusted Income before Taxes,” “Adjusted Income Tax Provision,” “Adjusted Effective Income Tax Rate,” “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. We have not provided our 2022 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 Company’s ability to realize operating savings over time and in fiscal year 2022 in connection with our multi-year Business Optimization Program; (xi) the impact of COVID-19 on our operations, performance, and financial condition; and (xii) 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 (LOSS)
(in thousands, except per share data)
(unaudited)
                         
   
Three Months Ended
    
Year Ended
  
   
April 30,
    
April 30,
  
   
2021
    
2020
    
2021
    
2020
  
Revenue, net
  
$
536,252
    
$
474,617
    
$
1,941,501
    
$
1,831,483
  
Costs and expenses:
                                
Cost of sales
    
168,037
      
150,591
      
625,335
      
591,024
  
Operating and administrative expenses
    
286,882
      
261,122
      
1,022,660
      
997,355
  
Impairment of goodwill and intangible assets
    
-
      
202,348
      
-
      
202,348
  
Restructuring and related charges
    
8,497
      
14,573
      
33,310
      
32,607
  
Amortization of intangible assets
    
21,596
      
16,714
      
74,685
      
62,436
  
Total Costs and Expenses
    
485,012
      
645,348
      
1,755,990
      
1,885,770
  
                                 
Operating Income (Loss)
    
51,240
      
(170,731
)
    
185,511
      
(54,287
)
As a % of revenue
    
9.6
%
    
-36.0
%
    
9.6
%
    
-3.0
%
                                 
Interest expense
    
(4,455
)
    
(5,786
)
    
(18,383
)
    
(24,959
)
Foreign exchange transaction (losses) gains
    
(1,504
)
    
4,534
      
(7,977
)
    
2,773
  
Other income
    
4,992
      
3,779
      
16,761
      
13,381
  
Income (Loss) Before Taxes
    
50,273
      
(168,204
)
    
175,912
      
(63,092
)
                                 
Provision (Benefit) for income taxes
    
8,944
      
(10,160
)
    
27,656
      
11,195
  
Effective tax rate
    
17.8
%
    
6.0
%
    
15.7
%
    
-17.7
%
Net Income (Loss)
  
$
41,329
    
$
(158,044
)
  
$
148,256
    
$
(74,287
)
As a % of revenue5
    
7.7
%
    
-33.3
%
    
7.6
%
    
-4.1
%
                                 
Weighted Average Number of Common Shares Outstanding
                                
Basic
    
55,814
      
55,896
      
55,930
      
56,209
  
Diluted
    
56,616
      
55,896
      
56,461
      
56,209
  
                                 
Earnings (Loss) Per Share
                                
Basic
  
$
0.74
    
$
(2.83
)
  
$
2.65
    
$
(1.32
)
Diluted
  
$
0.73
    
$
(2.83
)
  
$
2.63
    
$
(1.32
)
                                 
Notes:
                                
(1) The supplementary information included in this press release for the three months and year ended April 30, 2021 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.

In the year ended April 30, 2021, we completed the acquisition of Hindawi, which is included in our Research Publishing & Platforms segment results.
(2) All amounts are approximate due to rounding.

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2)
RECONCILIATION OF U.S. GAAP MEASURES to NON-GAAP MEASURES
(unaudited)
                         
 Reconciliation of U.S. GAAP EPS to Non-GAAP Adjusted EPS
   
Three Months Ended
    
Year Ended
  
   
April 30,
    
April 30,
  
   
2021
    
2020
    
2021
    
2020
  
U.S. GAAP Earnings (Loss) Per Share - Diluted
  
$
0.73
    
$
(2.83
)
  
$
2.63
    
$
(1.32
)
Adjustments:
                                
 Restructuring and related charges
    
0.12
      
0.20
      
0.44
      
0.43
  
 Foreign exchange (gains) losses on intercompany transactions
    
(0.01
)
    
(0.01
)
    
(0.02
)
    
0.02
  
 Income tax adjustments (A) (B) (C)
    
-
      
(0.03
)
    
(0.13
)
    
(0.03
)
 Impairment of goodwill
    
-
      
1.95
      
-
      
1.94
  
 Impairment of Blackwell trade name
    
-
      
1.32
      
-
      
1.31
  
 Impairment of developed technology intangible
    
-
      
0.04
      
-
      
0.04
  
 EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (D)
    
-
      
0.02
      
-
      
0.01
  
Non-GAAP Adjusted Earnings Per Share - Diluted
  
$
0.84
    
$
0.66
    
$
2.92
    
$
2.40
  
                                 
Reconciliation of U.S. GAAP Income (Loss) Before Taxes to Non-GAAP Adjusted Income Before Taxes
   
Three Months Ended
    
Year Ended
  
(amounts in thousands)
  
April 30,
    
April 30,
  
     
2021
      
2020
      
2021
      
2020
  
U.S. GAAP Income (Loss) Before Taxes
  
$
50,273
    
$
(168,204
)
  
$
175,912
    
$
(63,092
)
Pre-Tax Impact of Adjustments:
                                
Restructuring and related charges
    
8,497
      
14,573
      
33,310
      
32,607
  
Foreign exchange (gains) losses on intercompany transactions
    
(385
)
    
(462
)
    
(1,457
)
    
1,256
  
Impairment of goodwill
    
-
      
110,000
      
-
      
110,000
  
Impairment of Blackwell trade name
    
-
      
89,507
      
-
      
89,507
  
Impairment of developed technology intangible
    
-
      
2,841
      
-
      
2,841
  
Non-GAAP Adjusted Income Before Taxes
  
$
58,385
    
$
48,255
    
$
207,765
    
$
173,119
  
                                 
Reconciliation of U.S. GAAP Income Tax Provision (Benefit) to Non-GAAP Adjusted Income Tax Provision
                                 
U.S. GAAP Income Tax Provision (Benefit)
  
$
8,944
    
$
(10,160
)
  
$
27,656
    
$
11,195
  
Income Tax Impact of Adjustments (E):
                                
Restructuring and related charges
    
1,702
      
3,675
      
8,065
      
7,949
  
Foreign exchange (gains) losses on intercompany transactions
    
40
      
(166
)
    
(363
)
    
242
  
Impairment of goodwill
    
-
      
-
      
-
      
-
  
Impairment of Blackwell trade name
    
-
      
15,216
      
-
      
15,216
  
Impairment of developed technology intangible
    
-
      
686
      
-
      
686
  
                                 
Income Tax Adjustments:
                                
 Impact of increase in U.K. statutory rate on deferred tax balances (A)
    
3,261
      
-
      
(3,511
)
    
-
  
 Impact of U.S. CARES Act (B)
    
-
      
-
      
13,998
      
-
  
 Impact of change in certain U.S. state tax rates in 2021 and tax rates in France in 2020 (C)
    
(3,225
)
    
1,887
      
(3,225
)
    
1,887
  
Non GAAP Adjusted Income Tax Provision
  
$
10,722
    
$
11,138
    
$
42,620
    
$
37,175
  
                                 
U.S. GAAP Effective Tax Rate
    
17.8
%
    
6.0
%
    
15.7
%
    
-17.7
%
Non-GAAP Adjusted Effective Tax Rate
    
18.4
%
    
23.1
%
    
20.5
%
    
21.5
%
                                 
Notes:
                 
(A) During the first quarter of fiscal 2021, the U.K. officially enacted legislation that increased its statutory rate from 17% to 19%. This resulted in a $3.3 million, or $(0.06) per share, non-cash deferred tax benefit, and a $3.5 million, or $0.06 per share, non-cash deferred tax expense from the re-measurement of the Company’s applicable U.K. net deferred tax liabilities for the three months and year ended April 30, 2021, respectively.
(B) In connection with the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and certain regulations issued in late July 2020, the Company elected to carry back its fiscal year 2020 loss for tax purposes ("NOL") to its fiscal year 2015 and claimed a $20.7 million refund. The NOL carryback to a year when our corporate tax rate was 35%, including certain related benefits, resulted in a $14.0 million tax benefit, or $(0.25) per share, $8.4 million from current taxes and $5.6 million from deferred taxes. We received the refund in February 2021.
(C) In connection with the increase in certain U.S. state tax apportionment factors in 2021, we recorded income tax expense of $3.2 million, or $0.06 per share for the three months and year ended April 30, 2021. In connection with the reduction in French tax rates in 2020, we recorded an income tax benefit of $1.9 million, or $(0.03) per share, for the three months and year ended April 30, 2020. These adjustments impacted deferred taxes.
(D) Represents the impact of using diluted weighted-average number of common shares outstanding (56.4 million and 56.7 million shares for the three months and year ended April 30, 2020, respectively) included in the Non-U.S. 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 U.S. GAAP net loss is reported and the effect of using dilutive shares is antidilutive.
(E) For fiscal year 2021, substantially all of the tax impact was from deferred taxes. For fiscal year 2020, the tax impact was $1.5 million from current taxes and $22.6 million from deferred taxes.
(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, 2021 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.
                

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(unaudited)
                         
   
Three Months Ended
    
Year Ended
  
   
April 30,
    
April 30,
  
   
2021
    
2020
    
2021
    
2020
  
Net Income (Loss)
  
$
41,329
    
$
(158,044
)
  
$
148,256
    
$
(74,287
)
Interest expense
    
4,455
      
5,786
      
18,383
      
24,959
  
Provision (Benefit) for income taxes
    
8,944
      
(10,160
)
    
27,656
      
11,195
  
Depreciation and amortization
    
52,936
      
46,589
      
200,189
      
175,127
  
Non-GAAP EBITDA
    
107,664
      
(115,829
)
    
394,484
      
136,994
  
Impairment of goodwill and intangible assets
    
-
      
202,348
      
-
      
202,348
  
Restructuring and related charges
    
8,497
      
14,573
      
33,310
      
32,607
  
Foreign exchange transaction losses (gains)
    
1,504
      
(4,534
)
    
7,977
      
(2,773
)
Other income
    
(4,992
)
    
(3,779
)
    
(16,761
)
    
(13,381
)
Non-GAAP Adjusted EBITDA
  
$
112,673
    
$
92,779
    
$
419,010
    
$
355,795
  
Adjusted EBITDA Margin
    
21.0
%
    
19.5
%
    
21.6
%
    
19.4
%
                                 
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, 2021 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.
 

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)
SEGMENT RESULTS
(in thousands)
(unaudited)
                           
                 
% Change
  
      
Three Months Ended April 30,
    
Favorable (Unfavorable)
  
     
2021
    
2020
    
Reported
    
Constant
Currency
  
Research Publishing & Platforms:
                        
Revenue, net
                        
Research Publishing
  
$
272,030
    
$
240,547
      
13
%
    
9
%
Research Platforms
    
11,325
      
10,652
      
6
%
    
6
%
Total Revenue, net
  
$
283,355
    
$
251,199
      
13
%
    
9
%
                                   
Contribution to Profit (Loss)
  
$
68,371
    
$
(13,679
)
    
#
      
#
  
Adjustments:
                                
Impairment of intangible assets
    
-
      
92,348
                  
Restructuring charges
    
316
      
500
                  
Non-GAAP Adjusted Contribution to Profit
  
$
68,687
    
$
79,169
      
-13
%
    
-13
%
Depreciation and amortization
    
23,403
      
18,249
                  
Non-GAAP Adjusted EBITDA
  
$
92,090
    
$
97,418
      
-5
%
    
-6
%
Adjusted EBITDA margin
    
32.5
%
    
38.8
%
                
                                   
Academic & Professional Learning:
                                
Revenue, net
                                
Education Publishing
  
$
98,521
    
$
83,942
      
17
%
    
15
%
Professional Learning
    
74,398
      
65,986
      
13
%
    
9
%
Total Revenue, net
  
$
172,919
    
$
149,928
      
15
%
    
12
%
                                   
Contribution to Profit
  
$
26,069
    
$
5,422
      
#
      
#
  
Adjustments:
                                
Restructuring charges
    
1,601
      
5,324
                  
Non-GAAP Adjusted Contribution to Profit
  
$
27,670
    
$
10,746
      
#
      
#
  
Depreciation and amortization
    
18,240
      
18,128
                  
Non-GAAP Adjusted EBITDA
  
$
45,910
    
$
28,874
      
59
%
    
57
%
Adjusted EBITDA margin
    
26.6
%
    
19.3
%
                
                                   
Education Services:
                                
Revenue, net
                                
Education Services OPM (2)
  
$
64,452
    
$
59,682
      
8
%
    
8
%
mthree (2)
    
15,526
      
13,808
      
12
%
    
4
%
Total Revenue, net
  
$
79,978
    
$
73,490
      
9
%
    
7
%
                                   
Contribution to Profit (Loss)
  
$
7,234
    
$
(107,733
)
    
#
      
#
  
Adjustments:
                                
Impairment of goodwill
    
-
      
110,000
                  
Restructuring charges
    
237
      
2,053
                  
Non-GAAP Adjusted Contribution to Profit
  
$
7,471
    
$
4,320
      
73
%
    
75
%
Depreciation and amortization
    
7,672
      
7,124
                  
Non-GAAP Adjusted EBITDA
  
$
15,143
    
$
11,444
      
32
%
    
32
%
Adjusted EBITDA margin
    
18.9
%
    
15.6
%
                
                                   
Corporate Expenses:
  
$
(50,434
)
  
$
(54,741
)
    
8
%
    
9
%
Adjustments:
                                
Restructuring charges
    
6,343
      
6,696
                  
Non-GAAP Adjusted Contribution to Profit (Loss)
  
$
(44,091
)
  
$
(48,045
)
    
8
%
    
10
%
Depreciation and amortization
    
3,621
      
3,088
                  
Non-GAAP Adjusted EBITDA
  
$
(40,470
)
  
$
(44,957
)
    
10
%
    
11
%
                  
Consolidated Results:
                                
Revenue, net
  
$
536,252
    
$
474,617
      
13
%
    
10
%
                                   
Operating Income (Loss)
  
$
51,240
    
$
(170,731
)
    
#
      
#
  
Adjustments:
                                
  Impairment of goodwill and intangible assets
    
-
      
202,348
                  
Restructuring charges
    
8,497
      
14,573
                  
Non-GAAP Adjusted Contribution to Profit
  
$
59,737
    
$
46,190
      
29
%
    
31
%
Depreciation and amortization
    
52,936
      
46,589
                  
Non-GAAP Adjusted EBITDA
  
$
112,673
    
$
92,779
      
21
%
    
21
%
Adjusted EBITDA margin
    
21.0
%
    
19.5
%
                
                                   
(1) The supplementary information included in this press release for the three months and year ended April 30, 2021 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) In May 2020, we moved the IT bootcamp business acquired as part of The Learning House acquisition from Education Services OPM to mthree. As a result, the prior period revenue related to the IT bootcamp business has been included in mthree. There were no changes to our total Education Services or our consolidated financial results. The inorganic revenue from mthree in the year ended April 30, 2021 was $32.6 million.
 
# Variance greater than 100%
                

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)
SEGMENT RESULTS
(in thousands)
(unaudited)
                 
% Change
  
      
Year Ended April 30,
    
Favorable (Unfavorable)
  
     
2021
    
2020
    
Reported
    
Constant
Currency
  
Research Publishing & Platforms:
                        
Revenue, net
                        
Research Publishing
  
$
972,512
    
$
908,952
      
7
%
    
5
%
Research Platforms
    
42,837
      
39,887
      
7
%
    
7
%
Total Revenue, net
  
$
1,015,349
    
$
948,839
      
7
%
    
5
%
                                   
Contribution to Profit
  
$
273,059
    
$
169,119
      
61
%
    
60
%
Adjustments:
                                
Impairment of intangible assets
    
-
      
92,348
                  
Restructuring (credits) charges
    
(36
)
    
3,886
                  
Non-GAAP Adjusted Contribution to Profit
  
$
273,023
    
$
265,353
      
3
%
    
2
%
Depreciation and amortization
    
83,866
      
69,495
                  
Non-GAAP Adjusted EBITDA
  
$
356,889
    
$
334,848
      
7
%
    
6
%
Adjusted EBITDA margin
    
35.1
%
    
35.3
%
                
                                   
Academic & Professional Learning:
                                
Revenue, net
                                
Education Publishing
  
$
363,870
    
$
352,188
      
3
%
    
2
%
Professional Learning
    
280,667
      
298,601
      
-6
%
    
-8
%
Total Revenue, net
  
$
644,537
    
$
650,789
      
-1
%
    
-2
%
                                   
Contribution to Profit
  
$
88,173
    
$
74,176
      
19
%
    
17
%
Adjustments:
                                
Restructuring charges
    
3,503
      
10,470
                  
Non-GAAP Adjusted Contribution to Profit
  
$
91,676
    
$
84,646
      
8
%
    
6
%
Depreciation and amortization
    
71,997
      
69,807
                  
Non-GAAP Adjusted EBITDA
  
$
163,673
    
$
154,453
      
6
%
    
4
%
Adjusted EBITDA margin
    
25.4
%
    
23.7
%
                
                                   
Education Services:
                                
Revenue, net
                                
Education Services OPM (2)
  
$
227,700
    
$
210,882
      
8
%
    
8
%
mthree (2)
    
53,915
      
20,973
      
#
      
#
  
Total Revenue, net
  
$
281,615
    
$
231,855
      
21
%
    
21
%
                                   
Contribution to Profit (Loss)
  
$
20,644
    
$
(117,515
)
    
#
      
#
  
Adjustments:
                                
Impairment of goodwill
    
-
      
110,000
                  
Restructuring charges
    
531
      
3,671
                  
Non-GAAP Adjusted Contribution to Profit (Loss)
  
$
21,175
    
$
(3,844
)
    
#
      
#
  
Depreciation and amortization
    
29,654
      
24,131
                  
Non-GAAP Adjusted EBITDA
  
$
50,829
    
$
20,287
      
#
      
#
  
Adjusted EBITDA margin
    
18.0
%
    
8.7
%
                
                                   
Corporate Expenses:
  
$
(196,365
)
  
$
(180,067
)
    
-9
%
    
-9
%
Adjustments:
                                
Restructuring charges
    
29,312
      
14,580
                  
Non-GAAP Adjusted Contribution to Profit (Loss)
  
$
(167,053
)
  
$
(165,487
)
    
-1
%
    
-1
%
Depreciation and amortization
    
14,672
      
11,694
                  
Non-GAAP Adjusted EBITDA
  
$
(152,381
)
  
$
(153,793
)
    
1
%
    
1
%
                  
Consolidated Results:
                                
Revenue, net
  
$
1,941,501
    
$
1,831,483
      
6
%
    
4
%
                                   
Operating Income (Loss)
  
$
185,511
    
$
(54,287
)
    
#
      
#
  
Adjustments:
                                
  Impairment of goodwill and intangible assets
    
-
      
202,348
                  
Restructuring charges
    
33,310
      
32,607
                  
Non-GAAP Adjusted Contribution to Profit
  
$
218,821
    
$
180,668
      
21
%
    
20
%
Depreciation and amortization
    
200,189
      
175,127
                  
Non-GAAP Adjusted EBITDA
  
$
419,010
    
$
355,795
      
18
%
    
16
%
Adjusted EBITDA margin
    
21.6
%
    
19.4
%
                
                                   
# Variance greater than 100%
                

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
         
 
April 30,
  
April 30,
  
 
2021
  
2020
  
Assets:
        
Current Assets
        
Cash and cash equivalents
$
93,795
  
$
202,464
  
Accounts receivable, net
  
311,571
    
309,384
  
Inventories, net
  
42,538
    
43,614
  
Prepaid expenses and other current assets
  
78,393
    
59,465
  
Total Current Assets
  
526,297
    
614,927
  
             
Product Development Assets, net
  
49,517
    
53,643
  
Royalty Advances, net
  
39,582
    
36,710
  
Technology, Property and Equipment, net
  
282,270
    
298,005
  
Intangible Assets, net
  
1,015,302
    
807,405
  
Goodwill
  
1,304,340
    
1,116,790
  
Operating Lease Right-of-Use Assets
  
121,430
    
142,716
  
Other Non-Current Assets
  
107,701
    
98,598
  
Total Assets
$
3,446,439
  
$
3,168,794
  
             
Liabilities and Shareholders' Equity:
            
Current Liabilities
            
Accounts payable
$
95,791
  
$
93,691
  
Accrued royalties
  
78,582
    
87,408
  
Short-term portion of long-term debt
  
12,500
    
9,375
  
Contract liabilities
  
545,425
    
520,214
  
Accrued employment costs
  
144,744
    
108,448
  
Accrued income taxes
  
8,590
    
13,728
  
Short-term portion of operating lease liabilities
  
22,440
    
21,810
  
Other accrued liabilities
  
80,900
    
72,595
  
Total Current Liabilities
  
988,972
    
927,269
  
Long-Term Debt
  
809,088
    
765,650
  
Accrued Pension Liability
  
146,247
    
187,969
  
Deferred Income Tax Liabilities
  
172,903
    
119,127
  
Operating Lease Liabilities
  
145,832
    
159,782
  
Other Long-Term Liabilities
  
92,106
    
75,373
  
Total Liabilities
  
2,355,148
    
2,235,170
  
Shareholders' Equity
  
1,091,291
    
933,624
  
Total Liabilities and Shareholders' Equity
$
3,446,439
  
$
3,168,794
  
         
(1) The supplementary information included in this press release for April 30, 2021 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.
 

JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)
(unaudited)
               
      
Year Ended
  
      
April 30,
  
     
2021
    
2020
  
Operating Activities:
            
Net income (loss)
  
$
148,256
      
(74,287
)
Impairment of goodwill and intangible assets
    
-
      
202,348
  
Amortization of intangible assets
    
74,685
      
62,436
  
Amortization of product development assets
    
34,365
      
35,975
  
Depreciation and amortization of technology, property, and equipment
    
91,139
      
76,716
  
Other non-cash charges and credits
    
111,382
      
67,790
  
Net change in operating assets and liabilities
    
(99,904
)
    
(82,543
)
Net Cash Provided By Operating Activities
    
359,923
      
288,435
  
                   
Investing Activities:
                
Additions to technology, property, and equipment
    
(77,407
)
    
(88,593
)
Product development spending
    
(25,954
)
    
(26,608
)
Businesses acquired in purchase transactions, net of cash acquired
    
(299,942
)
    
(229,629
)
Acquisitions of publication rights and other
    
(29,851
)
    
(1,840
)
Net Cash Used in Investing Activities
    
(433,154
)
    
(346,670
)
                   
Financing Activities:
                
Net debt borrowings
    
30,653
      
303,772
  
Cash dividends
    
(76,938
)
    
(76,658
)
Purchase of treasury shares
    
(15,765
)
    
(46,589
)
Other
    
14,964
      
(7,848
)
Net Cash (Used In) Provided By Financing Activities
    
(47,086
)
    
172,677
  
                   
Effects of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
    
11,629
      
(4,943
)
                   
Change in Cash, Cash Equivalents and Restricted Cash for Period
    
(108,688
)
    
109,499
  
                   
Cash, Cash Equivalents and Restricted Cash - Beginning
    
203,047
      
93,548
  
Cash, Cash Equivalents and Restricted Cash - Ending
  
$
94,359
    
$
203,047
  
                   
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING
                   
      
Year Ended
  
      
April 30,
  
       
2021
      
2020
  
Net Cash Provided By Operating Activities
  
$
359,923
    
$
288,435
  
Less: Additions to technology, property, and equipment

   
(77,407
)
    
(88,593
)
Less: Product development spending

   
(25,954
)
    
(26,608
)
Free Cash Flow less Product Development Spending
  
$
256,562
    
$
173,234
  
                   
See Explanation of Usage of Non-GAAP Measures included in this supplemental information.
        
(1) The supplementary information included in this press release for the year ended April 30, 2021 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.
 

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 Contribution to Profit and margin;
●        Adjusted Income Before Taxes;
●        Adjusted Income Tax Provision;
●        Adjusted Effective Tax Rate;
●        EBITDA, Adjusted EBITDA and margin;
●        Organic revenue; and
●        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 calculate incentive compensation. Non-GAAP performance measures do not have standardized meanings prescribed by U.S. 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 U.S. GAAP.
The Company presents these non-GAAP performance measures in addition to U.S. GAAP financial results because it believes that these non-GAAP performance measures provide useful information to 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. For example:
●        Adjusted EPS, Adjusted Contribution to Profit, Adjusted Income Before Taxes, Adjusted Income Tax Provision, Adjusted Effective Tax Rate, Adjusted EBITDA and organic revenue provide a more 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 stock dividends and fund share repurchases and 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 excluding 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 understand 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 the Company's non-GAAP performance measures are regarded as useful to our investors as supplemental to our U.S. GAAP financial results, and that there is no confusion regarding the adjustments or our operating performance to our investors due to the comprehensive nature of our disclosures.
We have not provided our 2022 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.



 Brian Napack, President & CEOJohn Kritzmacher, EVP & CFOBrian Campbell, VP of Investor Relations  
 
 SAFE HARBOR STATEMENTThis presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon many 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 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 2022 in connection with our multi-year Business Optimization Program; (xi) the impact of COVID-19 on our operations, performance, and financial condition; and (xii) 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.  NON-GAAP MEASURESIn this presentation, management provides the following non-GAAP performance measures:Adjusted Earnings Per Share (“Adjusted EPS”);Free Cash Flow less Product Development Spending;Adjusted Contribution to Profit (“Adjusted CTP”) and margin;Adjusted EBITDA and margin;Organic revenue; andResults on a constant currency (“CC”) basis.Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and other items, provide supplementary information to support analyzing operating results and earnings and are 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. 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 applying the same foreign currency exchange rates for the current and equivalent prior period. We have not provided our 2022 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. 
 
 Wiley unlocks human potential by powering discovery and learning 
 
 Fiscal 2021 Summary  82% FY21 share of revenue from digital & servicesvs. 80% in FY20  Well-established growth strategies in open research and career-connected education are paying offLong term trends in open research, online education, and digital curriculum are being pulled forward, strengthening growth outlookRevenue, profit, and cash flow performance reflected sharp and nimble execution and a highly engaged and inspired workforceAn impact company driving life-changing outcomes in science, education, and career advancement 
 
 Open Research  Online Education  Digital Curriculum  Article Output +15%OA Revenue +38%Read-and-publish agreements generating strong momentumHindawi acquisition expands portfolio and drives revenue synergies  Online Enrollment +14%New Student Enrollments+20%New university partnerships and programs around the worldStrong pipeline and placements in tech-talent development  Digital Content Revenue +22%Digital Courseware Activations+23%Transition to digital courseware returning Ed Publishing to growthShift to virtual corporate training enabling recovery and new opportunity   Consistent strategies aligned with accelerating growth trends  Fiscal 2021 Metrics 
 
 16MWiley Researchers  25KUniversity & Corporate Customers  AMSCI ESG Rating  100%Human Rights LGBTQ Score*  Growth Strategies Drive Societal ImpactOpen research to increase speed, accessibility, and impact of knowledge ecosystem  Career-connected education to close skills gaps and unlock human potential  Price-value optimization to expand access and drive equitable education for all  Wiley is an Impact Company  ESG ProgressSigned UN Global Compact and received positive ESG ratings from third party assessors  Achieved full year carbon neutrality and 100% renewable energy certification   Signed CEO Action on Diversity & Inclusion; driving industry-wide initiatives on DE&I and sustainability  *”Wiley Earns Top Marks in Human Rights Campaign 2021 Corporate Equality Index” 
 
 Q4 2021: Focused execution driving strong performance   *Revenue +7% at constant currency and excluding acquisitionsAll metrics except for GAAP EPS are at constant currency  Revenue+10%*$536M  GAAP EPS+$3.56$0.73  Adj. EPS+41%$0.84  Adj. EBITDA+21% $113M  Research Publishing & Platforms Revenue (+9%) driven by growth in Open Access, platforms and corporate solutions, and by contributions from acquisitions. Adjusted EBITDA (-6%) due to increased editorial resources to support higher article output, and by higher annual incentive compensation and Hindawi acquisition costsAcademic & Professional Learning Revenue (+12%) driven by digital content and courseware, recovery in corporate training, and timing. Adjusted EBITDA (+57%) driven by revenue growth, business optimization gains, and COVID-related savings, offsetting higher annual incentive compensationEducation ServicesRevenue (+7%) driven by both online degree services and talent development services. Adjusted EBITDA (+32%) driven by revenue growth and business optimization gains, offsetting higher annual incentive compensation 
 
 Fiscal 2021: Growth across all key metrics              $1,831  $1,942  Revenue +4%  GAAP EPS +$3.95  Adjusted EPS +27%  $2.40  $356  $419  $2.92  ($1.32)  $2.63  $288  $360  $173  $257  Adjusted EBITDA +16%  Cash from Ops +25%  Free Cash Flow +48%       
 
 (millions)  Q4 2021  Change  Change CC  Research Publishing   $272  13%  9%  Research Platforms  $11  6%  6%   TOTAL REVENUE  $283  13%  9%   ADJUSTED EBITDA  $92    (6%)  ADJ. EBITDA MARGIN  32%      FY 2021  Change  Change CC  $973  7%  5%  $43  7%  7%  $1,015  7%  5%  $357    6%  35%      Strong growth in research output (+15%) and usage (+25%)Strategic read-and-publish agreements generating strong momentumHindawi acquisition accelerates market position, drives revenue synergies Momentum continuing for corporate solutions, platforms, and society publishingAdvances in publishing optimization enabling significant volume growth  Full YearSummary  Research Publishing & Platforms  Research revenue at constant currency and excluding acquisitions up 4% and 3% for the quarter and year 
 
 Research in Fiscal 2022: Growth accelerating  Fiscal Year 2022 Market DynamicsGlobal R&D spending growth acceleratingStrong demand to publish and access researchPeer-reviewed research remains essential and in demandShift to OA creating attractive PxQ environmentCorporate demand for research continuing to increase   Organic Revenue Growth  At constant currency and excluding impact of acquisitions   FY20  FY21  FY22P  +2%  +3%  Mid-single digit growth 
 
 (millions)  Q4 2021  Change  Change CC  Education Publishing  $99  17%  15%  Professional Learning  $74  13%  9%   TOTAL REVENUE  $173  15%  12%   ADJUSTED EBITDA  $46    57%  ADJ. EBITDA MARGIN  27%      FY 2021  Change  Change CC  $364  3%  2%  $281  (6%)  (8%)  $645  (1%)  (2%)  $164    4%  25%      Ed Pub growth from strong digital portfolio (revenue up double-digits) and focus on high-demand disciplinesFaster recovery than expected in corporate training as virtual training takes holdDummies publishing growth driven by demand for timely titlesAccelerated 2H profit from revenue momentum and business optimization gains  Academic & Professional Learning  Full YearSummary 
 
 Fiscal Year 2022 Market DynamicsContinued broad adoption of digital content and courseware in academic and professional environmentsHigher education enrollment expected to improve but COVID-related uncertainty remainsIncreased corporate emphasis on training and e-learningChallenging labor market driving further need for upskilling, reskilling, and certification  Organic Revenue Performance  At constant currency and excluding impact of acquisitions   FY20  FY21  FY22P  -9%  -3%  Low-single digit growth  APL in Fiscal 2022: Return to growth 
 
 (millions)Adj  Q4 2021  Change  Change CC  Education Services   $64  8%  8%  Mthree  $16  12%  4%   TOTAL REVENUE  $80  9%  7%   ADJUSTED EBITDA  $15    32%  ADJ. EBITDA MARGIN  19%      FY 2021  Change  Change CC  $228  8%  8%  $54      $282  21%  21%  $51    +$31  18%      Strong year for enrollment (+14%) in our online degree programsEight new university partners signed in the US, Australia, Israel, and LebanonAccelerating momentum for mthree; four new corporate clients signed and strong growth in IT talent placementExceptional profit growth by enhancing the efficiency of the student journey  Education Services  Education Services revenue at constant currency and excluding acquisitions up 7% for the quarter and year  Full YearSummary 
 
 Fiscal Year 2022 Market DynamicsUniversity transition to online and hybrid deliveryDemand for graduate and alternative credentials risingStrong focus on affordable pathways to high-demand jobsUrgent need for companies to fill Tech skills gap  Organic Revenue Growth  At constant currency and excluding impact of acquisitions   FY20  FY21  FY22P  +11%  +7%  Low-teens growth  Education Services in Fiscal 2022: Growth accelerating 
 
 Fiscal 2022 Outlook and Financial Position 
 
   FY22 Key Growth and Optimization InitiativesOpen ResearchPublish more to meet global demandDrive Hindawi integration and revenue synergiesScale service offerings for societies and corporationsCareer-Connected EducationExpand online degree programs and drive online enrollment Scale digital courseware Expand mthree corporate pipeline and existing relationships Business OptimizationExpand publishing capacity and drive workflow automationExpand student acquisition capabilitiesBuild DTC capabilities and enhance ecommerce experience  Wiley Revenue Growth Trajectory  At constant currency and including acquisitions   Fiscal 2022: Targeted growth strategies and investments   6-8% est.  4%  3% 
 
       Metric  Fiscal 2021  Fiscal 2022 Outlook  Revenue  $1,942  $2,070 to $2,100  Adjusted EBITDA  $419  $415 to $435  Adjusted EPS  $2.92  $2.80 to $3.05  Free Cash Flow  $257  $200 to $220  Fiscal 2022 Outlook  Revenue Outlook: revenue to exceed $2B for the first time, with mid-to-high single digit growth anticipated for Research, low-single digit growth for APL, and low-teens growth for Education ServicesEarnings Outlook: profit gains from revenue growth to be tempered by investments to accelerate growth initiatives, as well as higher T&E expenses due to the resumption of in-person business activities. Adjusted EPS growth expected to be moderated by higher depreciation and amortization expense, and a higher effective tax rate Free Cash Flow Outlook: strong cash earnings to be partially offset by higher capex (outlook of $120-$130 million vs. $103 million in Fiscal 2021), non-recurrence of a $21 million tax refund, and higher annual incentive compensation payments related to Fiscal 2021 performance  
 
 Balance Sheet, Cash Flow, and Returns to Shareholders  Modest Leverage: Net Debt/EBITDA 1.7 TTM inclusive of Hindawi acquisitionFree Cash Flow: $257M (vs. $173M in FY20) due to increased cash earnings, lower capex, and one-time itemsCapex: $103M (vs. $115M in prior year period) focused on development of tech-enabled products and servicesM&A:  Acquisition of Hindawi (Open Research) for $298MDividends: Wiley allocated 30% of FCF to dividends in Fiscal 2021; raised dividend for 27th consecutive yearShare Repurchases: Paused through early January 2021; acquired ~310K shares at average cost of $50.93/ share  Wiley Capital Allocation 
 
 Executive Summary  Well-established growth strategies in open research and career-connected education are paying offLong term trends in open research, online education, and digital curriculum are being pulled forward, strengthening growth outlookFiscal 2021 revenue, profit, and cash flow performance reflected sharp and nimble execution and a highly engaged and inspired workforceStrong revenue trajectory to continue in Fiscal 2022, with organic growth expected in all segmentsResearch and Education opportunities are expanding, enabling continued long-term momentum Solid balance sheet and reliable cash flow support robust capital allocation to drive and sustain higher growth and reward long-term shareholders 
 
 New IR website at https://investors.wiley.com/Q1 2022 Earnings Call – September 2, 2021Investor Day – October 29, 2021Thank you for joining us. Contact us for follow-up at:[email protected] | +1(201) 748-6874 
 
 Appendix – Reconciliation of US GAAP to NON-GAAP Measures  JOHN WILEY & SONS, INC.                        SUPPLEMENTARY INFORMATION (1) (2)                        RECONCILIATION OF U.S. GAAP MEASURES to NON-GAAP MEASURES                        (unaudited)                                                 Reconciliation of U.S. GAAP EPS to Non-GAAP Adjusted EPS                                             Three Months Ended        Year Ended                April 30,        April 30,                2021    2020    2021    2020   U.S. GAAP Earnings (Loss) Per Share - Diluted            $ 0.73      $ (2.83)     $ 2.63      $ (1.32)   Adjustments:                            Restructuring and related charges          0.12      0.20      0.44      0.43      Foreign exchange (gains) losses on intercompany transactions          (0.01)     (0.01)     (0.02)     0.02      Income tax adjustments (A) (B) (C)          -      (0.03)     (0.13)     (0.03)     Impairment of goodwill          -      1.95      -      1.94      Impairment of Blackwell trade name          -      1.32      -      1.31      Impairment of developed technology intangible          -      0.04      -      0.04      EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (D)          -      0.02      -      0.01    Non-GAAP Adjusted Earnings Per Share - Diluted            $ 0.84      $ 0.66      $ 2.92      $ 2.40                            Reconciliation of U.S. GAAP Income (Loss) Before Taxes to Non-GAAP Adjusted Income Before Taxes                                   Three Months Ended        Year Ended       (amounts in thousands)           April 30,        April 30,                2021    2020    2021    2020   U.S. GAAP Income (Loss) Before Taxes            $ 50,273      $ (168,204)     $ 175,912      $ (63,092)   Pre-Tax Impact of Adjustments:                          Restructuring and related charges         8,497      14,573      33,310      32,607     Foreign exchange (gains) losses on intercompany transactions          (385)     (462)     (1,457)     1,256     Impairment of goodwill          -      110,000      -      110,000     Impairment of Blackwell trade name          -      89,507      -      89,507     Impairment of developed technology intangible          -      2,841      -      2,841    Non-GAAP Adjusted Income Before Taxes            $ 58,385      $ 48,255      $ 207,765      $ 173,119                            Reconciliation of U.S. GAAP Income Tax Provision (Benefit) to Non-GAAP Adjusted Income Tax Provision                                                  U.S. GAAP Income Tax Provision (Benefit)            $ 8,944      $ (10,160)     $ 27,656      $ 11,195    Income Tax Impact of Adjustments (E):                          Restructuring and related charges         1,702      3,675      8,065      7,949     Foreign exchange (gains) losses on intercompany transactions          40      (166)     (363)     242     Impairment of goodwill          -      -      -      -     Impairment of Blackwell trade name          -      15,216      -      15,216     Impairment of developed technology intangible          -      686      -      686                            Income Tax Adjustments:                           Impact of increase in U.K. statutory rate on deferred tax balances (A)          3,261      -      (3,511)     -      Impact of U.S. CARES Act (B)          -      -      13,998      -      Impact of change in certain U.S. state tax rates in 2021 and tax rates in France in 2020 (C)          (3,225)     1,887      (3,225)     1,887    Non GAAP Adjusted Income Tax Provision            $ 10,722      $ 11,138      $ 42,620      $ 37,175                            U.S. GAAP Effective Tax Rate           17.8%    6.0%    15.7%    -17.7%   Non-GAAP Adjusted Effective Tax Rate           18.4%    23.1%    20.5%    21.5%   (A)   During the first quarter of fiscal 2021, the U.K. officially enacted legislation that increased its statutory rate from 17% to 19%. This resulted in a $3.3 million, or $(0.06) per share, non-cash deferred tax benefit, and a $3.5 million, or $0.06 per share, non-cash deferred tax expense from the re-measurement of the Company’s applicable U.K. net deferred tax liabilities for the three months and year ended April 30, 2021, respectively.         (B)   In connection with the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and certain regulations issued in late July 2020, the Company elected to carry back its fiscal year 2020 loss for tax purposes ("NOL") to its fiscal year 2015 and claimed a $20.7 million refund. The NOL carryback to a year when our corporate tax rate was 35%, including certain related benefits, resulted in a $14.0 million tax benefit, or $(0.25) per share, $8.4 million from current taxes and $5.6 million from deferred taxes. We received the refund in February 2021.         (C)   In connection with the increase in certain U.S. state tax apportionment factors in 2021, we recorded income tax expense of $3.2 million, or $0.06 per share for the three months and year ended April 30, 2021. In connection with the reduction in French tax rates in 2020, we recorded an income tax benefit of $1.9 million, or $(0.03) per share, for the three months and year ended April 30, 2020. These adjustments impacted deferred taxes.         (D)   Represents the impact of using diluted weighted-average number of common shares outstanding (56.4 million and 56.7 million shares for the three months and year ended April 30, 2020, respectively) included in the Non-U.S. 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 U.S. GAAP net loss is reported and the effect of using dilutive shares is antidilutive.         (E)   For fiscal year 2021, substantially all of the tax impact was from deferred taxes. For fiscal year 2020, the tax impact was $1.5 million from current taxes and $22.6 million from deferred taxes.         (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, 2021 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.         
 
 Appendix – Reconciliation of Net Income to Adjusted EBITDA  JOHN WILEY & SONS, INC.                            SUPPLEMENTARY INFORMATION (1)                            RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA                            (unaudited)                                                              Three Months Ended            Year Ended                April 30,            April 30,                2021    2020    2020    2021    2020    2020   Net Income (Loss)        $ 41,329      $ (158,044)     $ (158,044)     $ 148,256      $ (74,287)     $ (74,287)    Interest expense     4,455      5,786      5,786      18,383      24,959      24,959     Provision (Benefit) for income taxes     8,944      (10,160)     (10,160)     27,656      11,195      11,195     Depreciation and amortization     52,936      46,589      46,589      200,189      175,127      175,127    Non-GAAP EBITDA        107,664      (115,829)     (115,829)     394,484      136,994      136,994     Impairment of goodwill and intangible assets     -      202,348      202,348      -      202,348      202,348     Restructuring and related charges     8,497      14,573      14,573      33,310      32,607      32,607     Foreign exchange transaction losses (gains)     1,504      (4,534)     (4,534)     7,977      (2,773)     (2,773)    Other income     (4,992)     (3,779)     (3,779)     (16,761)     (13,381)     (13,381)   Non-GAAP Adjusted EBITDA        $ 112,673      $ 92,779      $ 92,779      $ 419,010      $ 355,795      $ 355,795      Adjusted EBITDA Margin     21.0%    19.5%    19.5%    21.6%    19.4%    19.4%                               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, 2021 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.