Wiley Reports First Quarter Fiscal 2021 Results
September 3, 2020 - Hoboken, NJ – John Wiley & Sons, Inc. (NYSE: JW-A and JW-B), a global leader in research and
education, today announced results for the first quarter ended July 31, 2020.
SUMMARY
|
•
|
GAAP Results: Revenue of $431 million (+2%)
and EPS of $0.29 (+$0.23)
|
|
•
|
|
•
|
Research Publishing & Platforms (at
constant currency): Revenue +6% and Adjusted EBITDA +19%
|
|
•
|
Shareholder Return: Wiley among select group
with 27 consecutive years of annual dividend increases
|
“Wiley’s core strategies in open research
and online education are paying off with unprecedented gains in Research article output and content consumption, strong online enrollment growth, and record new adoption of
digital courseware,” said Brian Napack, President and CEO. “The Wiley team is executing well through the pandemic as we continue to take advantage of market-driven growth trends in Research and Education, while driving further efficiency gains
across our business.”
FIRST QUARTER PERFORMANCE
|
GAAP Measures
Unaudited ($millions except for EPS)
|
Q1 2021
|
Q1 2020
|
Change
|
||||||||
|
Revenue
|
$
|
431.3
|
$
|
423.5
|
2%
|
||||||
|
Diluted EPS
|
$
|
0.29
|
$
|
0.06
|
$
|
0.23
|
|||||
|
Non-GAAP Measures
|
Q1 2021
|
Q1 2020
|
Change
Constant Currency
|
||||||||
|
Revenue
|
$
|
431.3
|
$
|
423.5
|
2%
|
||||||
|
Adjusted EBITDA
|
$
|
81.8
|
$
|
57.5
|
42%
|
||||||
|
Adjusted EPS
|
$
|
0.42
|
$
|
0.21
|
124%
|
||||||
Excluding
acquisitions and currency impact, revenue declined 1% for the quarter. Wiley recorded an unfavorable FX variance of $2.4 million in revenue, $0.05 in Adjusted EPS, and favorable FX variance of $0.1 million in
Adjusted EBITDA.
Revenue
|
•
|
Academic & Professional Learning declined
12% as reported and at constant currency mainly due to continued market pressures on print books and adverse COVID-19 impacts on Professional Learning, particularly in-person corporate training. In Education Publishing, digital content and
courseware growth accelerated while print textbooks continued to decline sharply.
|
|
•
|
Education Services increased 29% as reported
and at constant currency, driven by the three-month inorganic contribution from mthree (+$12 million) and organic growth of 4% in Online
Program Management (OPM) services.
|
Adjusted EBITDA
|
•
|
Research Publishing & Platforms grew 19%
at constant currency, reflecting revenue growth and lower discretionary spending.
|
|
•
|
Academic & Professional Learning declined
23% at constant currency, reflecting revenue performance, partly offset by lower discretionary spending.
|
|
•
|
Education Services grew from $0.4 million to
$8 million due to revenue growth and business optimization savings, notably improvement in student acquisition costs. Adjusted EBITDA margin for the quarter was 13%.
|
|
•
|
Corporate Expenses declined 19% to $34 million mainly due to lower employee-related costs and professional fees.
|
EPS
|
•
|
GAAP EPS of $0.29 compared to $0.06 in prior
year period primarily reflected growth in Operating Income. Restructuring charges of $0.03 were lower by $0.11 from prior year but offset by a deferred tax charge of $0.12 in the current period related to a UK statutory rate increase.
|
|
•
|
Adjusted EPS (+124%) primarily reflected Adjusted Operating Income growth.
|
Balance Sheet and Liquidity
|
•
|
Net debt-to-EBITDA ratio (trailing twelve
months) at quarter-end was 2.0 as compared to 1.7 at the end of the year-ago period.
|
|
•
|
Available liquidity was approximately $750
million at quarter-end, including $101 million of cash on hand and $650 million of undrawn debt facilities.
|
Cash Flow and Return to Shareholders
|
•
|
Free Cash Flow less Product Development
Spending was a use of $145 million compared to a use of $125 million in the prior year. As a reminder, Wiley generated $173 million of Free Cash Flow in fiscal year 2020.
|
|
•
|
Quarterly dividend was raised for the 27th
consecutive year, declared on June 25, to $0.3425 per share on its Class A and Class B common stock.
|
FISCAL YEAR 2021 OUTLOOK
Wiley cannot confidently project the forward-looking impact of the pandemic on its operating results and is therefore not providing a financial outlook
for fiscal year 2021 at this time.
Scheduled for today, September 3 at 10:00 a.m. (ET). Access the webcast on Wiley.com, at https://www.wiley.com/en-us/investors or directly at https://edge.media-server.com/mmc/p/wimivu3k. U.S. callers,
please dial (844) 231-0103 and enter the participant code 8168499#. International callers, please dial (216) 562-0402 and enter the
participant code 8168499#.
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 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 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 2021 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.
Investor Contact:
Brian Campbell
201.748.6874
Media Contact:
Katie Roberts
602.373.7233
|
JOHN WILEY & SONS, INC.
|
||||||||
|
SUPPLEMENTARY INFORMATION (1)(2)
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
|
(in thousands, except per share data)
|
||||||||
|
(unaudited)
|
||||||||
|
Three Months Ended
|
||||||||
|
July 31,
|
||||||||
|
2020
|
2019
|
|||||||
|
Revenue, net
|
$
|
431,326
|
$
|
423,530
|
||||
|
Costs and expenses:
|
||||||||
|
Cost of sales
|
144,809
|
143,096
|
||||||
|
Operating and administrative expenses
|
237,369
|
250,170
|
||||||
|
Restructuring and related charges
|
2,218
|
10,735
|
||||||
|
Amortization of intangibles
|
16,891
|
14,970
|
||||||
|
Total Costs and Expenses
|
401,287
|
418,971
|
||||||
|
Operating Income
|
30,039
|
4,559
|
||||||
|
As a % of revenue
|
7.0
|
%
|
1.1
|
%
|
||||
|
Interest expense
|
(4,614
|
)
|
(6,077
|
)
|
||||
|
Foreign exchange transaction (losses) gains
|
(82
|
)
|
2,652
|
|||||
|
Interest and other income
|
4,391
|
2,833
|
||||||
|
Income Before Taxes
|
29,734
|
3,967
|
||||||
|
Provision for income taxes
|
13,400
|
343
|
||||||
|
Effective tax rate
|
45.1
|
%
|
8.6
|
%
|
||||
|
Net Income
|
$
|
16,334
|
$
|
3,624
|
||||
|
As a % of revenue
|
3.8
|
%
|
0.9
|
%
|
||||
|
Weighed Average Number of Common Shares Outstanding
|
||||||||
|
Basic
|
55,912
|
56,536
|
||||||
|
Diluted
|
56,193
|
56,905
|
||||||
|
Earnings Per Share
|
||||||||
|
Basic
|
$
|
0.29
|
$
|
0.06
|
||||
|
Diluted
|
$
|
0.29
|
$
|
0.06
|
||||
|
Notes:
|
||||||||
|
(1) The supplementary information included in this press release for the three months ended July 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) 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
|
|||||||||
|
July 31,
|
|||||||||
|
2020
|
2019
|
||||||||
|
GAAP Earnings Per Share - Diluted
|
$
|
0.29
|
$
|
0.06
|
|||||
|
Adjustments:
|
|||||||||
|
Restructuring and related charges (A)
|
0.03
|
0.14
|
|||||||
|
Foreign exchange (gains) losses on intercompany transactions (A)
|
(0.02
|
)
|
0.01
|
||||||
|
Impact of increase in U.K. statutory rate on deferred tax balances in fiscal year 2021 (B)
|
0.12
|
-
|
|||||||
|
Non-GAAP Adjusted Earnings Per Share - Diluted
|
$
|
0.42
|
$
|
0.21
|
|||||
|
Notes:
|
|||||||||
|
(A) The table below shows the net of tax impact of our adjustments to GAAP Earnings Per Share noted above.
|
|||||||||
|
Three Months Ended
|
|||||||||
|
July 31,
|
|||||||||
|
(amounts in millions)
|
2020
|
2019
|
|||||||
|
Net of tax, charges related to the Business Optimization Program
|
$
|
1.5
|
$
|
8.1
|
|||||
|
Net of tax, credits related to the Restructuring and Reinvestment Program
|
$
|
(0.0
|
)
|
$
|
(0.1
|
)
|
|||
|
Net of tax, foreign exchange transaction (gains) losses
|
$
|
(1.0
|
)
|
$
|
0.3
|
||||
|
(B) 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 $6.7 million non-cash deferred tax expense from the re-measurement of the Company’s applicable U.K. net deferred tax liabilities.
|
|||||||||
|
(1) See Explanation of Usage of Non-GAAP performance measures included in this supplementary information for additional details on the reasons why
management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three months ended July 31, 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
|
||||||||
|
July 31,
|
||||||||
|
2020
|
2019
|
|||||||
|
Net Income
|
$
|
16,334
|
$
|
3,624
|
||||
|
Interest expense
|
4,614
|
6,077
|
||||||
|
Provision for income taxes
|
13,400
|
343
|
||||||
|
Depreciation and amortization
|
49,507
|
42,219
|
||||||
|
Non-GAAP EBITDA
|
83,855
|
52,263
|
||||||
|
Restructuring and related charges
|
2,218
|
10,735
|
||||||
|
Foreign exchange transaction losses (gains)
|
82
|
(2,652
|
)
|
|||||
|
Interest and other income
|
(4,391
|
)
|
(2,833
|
)
|
||||
|
Non-GAAP Adjusted EBITDA
|
$
|
81,764
|
$
|
57,513
|
||||
|
Adjusted EBITDA Margin
|
19.0
|
%
|
13.6
|
%
|
||||
|
Notes:
|
||||||||
|
(1) See Explanation of Usage of Non-GAAP performance measures included in this supplementary information for additional details on the reasons
why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three months ended July 31, 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)
|
|||||||||||||||||
|
SEGMENT RESULTS
|
|||||||||||||||||
|
(in thousands)
|
|||||||||||||||||
|
(unaudited)
|
|||||||||||||||||
|
|
% Change
|
||||||||||||||||
| Three Months Ended July 31, |
Favorable (Unfavorable)
|
||||||||||||||||
|
2020
|
2019
|
Reported
|
Constant
Currency
|
||||||||||||||
|
Research Publishing & Platforms:
|
|||||||||||||||||
|
Revenue, net
|
|||||||||||||||||
|
Research Publishing
|
$
|
230,464
|
$
|
219,927
|
5
|
%
|
5
|
%
|
|||||||||
|
Research Platforms
|
10,346
|
9,448
|
10
|
%
|
10
|
%
|
|||||||||||
|
Total Revenue, net
|
$
|
240,810
|
$
|
229,375
|
5
|
%
|
6
|
%
|
|||||||||
|
Contribution to Profit
|
$
|
69,818
|
$
|
55,646
|
25
|
%
|
26
|
%
|
|||||||||
|
Adjustments:
|
|||||||||||||||||
|
Restructuring (credits) charges
|
(197
|
)
|
2,620
|
||||||||||||||
|
Non-GAAP Adjusted Contribution to Profit
|
$
|
69,621
|
$
|
58,266
|
19
|
%
|
20
|
%
|
|||||||||
|
Depreciation and amortization
|
19,701
|
17,153
|
|||||||||||||||
|
Non-GAAP Adjusted EBITDA
|
$
|
89,322
|
$
|
75,419
|
18
|
%
|
19
|
%
|
|||||||||
|
Adjusted EBITDA margin
|
37.1
|
%
|
32.9
|
%
|
|||||||||||||
|
Academic & Professional Learning:
|
|||||||||||||||||
|
Revenue, net
|
|||||||||||||||||
|
Education Publishing
|
$
|
64,084
|
$
|
65,523
|
-2
|
%
|
-2
|
%
|
|||||||||
|
Professional Learning
|
62,829
|
79,335
|
-21
|
%
|
-20
|
%
|
|||||||||||
|
Total Revenue, net
|
126,913
|
144,858
|
-12
|
%
|
-12
|
%
|
|||||||||||
|
Contribution to Profit
|
$
|
(380
|
)
|
$
|
4,911
|
#
|
#
|
||||||||||
|
Adjustments:
|
|||||||||||||||||
|
Restructuring charges
|
33
|
2,805
|
|||||||||||||||
|
Non-GAAP Adjusted Contribution to Profit
|
$
|
(347
|
)
|
$
|
7,716
|
#
|
#
|
||||||||||
|
Depreciation and amortization
|
18,804
|
16,524
|
|||||||||||||||
|
Non-GAAP Adjusted EBITDA
|
$
|
18,457
|
$
|
24,240
|
-24
|
%
|
-23
|
%
|
|||||||||
|
Adjusted EBITDA margin
|
14.5
|
%
|
16.7
|
%
|
|||||||||||||
|
Education Services:
|
|||||||||||||||||
|
Revenue, net
|
|||||||||||||||||
|
Education Services (2)
|
$
|
50,262
|
$
|
48,156
|
4
|
%
|
4
|
%
|
|||||||||
|
mthree (2)
|
13,341
|
1,141
|
#
|
#
|
|||||||||||||
|
Total Revenue, net
|
63,603
|
49,297
|
29
|
%
|
29
|
%
|
|||||||||||
|
Contribution to Profit
|
$
|
558
|
$
|
(7,199
|
)
|
#
|
#
|
||||||||||
|
Adjustments:
|
|||||||||||||||||
|
Restructuring charges
|
139
|
2,089
|
|||||||||||||||
|
Non-GAAP Adjusted Contribution to Profit
|
$
|
697
|
$
|
(5,110
|
)
|
#
|
#
|
||||||||||
|
Depreciation and amortization
|
7,279
|
5,498
|
|||||||||||||||
|
Non-GAAP Adjusted EBITDA
|
$
|
7,976
|
$
|
388
|
#
|
#
|
|||||||||||
|
Adjusted EBITDA margin
|
12.5
|
%
|
0.8
|
%
|
|||||||||||||
|
Corporate Expenses:
|
$
|
(39,957
|
)
|
$
|
(48,799
|
)
|
18
|
%
|
17
|
%
|
|||||||
|
Adjustments:
|
|||||||||||||||||
|
Restructuring charges
|
2,243
|
3,221
|
|||||||||||||||
|
Non-GAAP Adjusted Corporate Expenses
|
$
|
(37,714
|
)
|
$
|
(45,578
|
)
|
17
|
%
|
16
|
%
|
|||||||
|
Depreciation and amortization
|
3,723
|
3,044
|
|||||||||||||||
|
Non-GAAP Adjusted EBITDA
|
$
|
(33,991
|
)
|
$
|
(42,534
|
)
|
20
|
%
|
19
|
%
|
|||||||
|
Consolidated Results:
|
|||||||||||||||||
|
Revenue, net
|
$
|
431,326
|
$
|
423,530
|
2
|
%
|
2
|
%
|
|||||||||
|
Operating Income
|
$
|
30,039
|
$
|
4,559
|
#
|
#
|
|||||||||||
|
Adjustments:
|
|||||||||||||||||
|
Restructuring charges
|
2,218
|
10,735
|
|||||||||||||||
|
Non-GAAP Adjusted Operating Income
|
$
|
32,257
|
$
|
15,294
|
#
|
#
|
|||||||||||
|
Depreciation and amortization
|
49,507
|
42,219
|
|||||||||||||||
|
Non-GAAP Adjusted EBITDA
|
$
|
81,764
|
$
|
57,513
|
42
|
%
|
42
|
%
|
|||||||||
|
Adjusted EBITDA margin
|
19.0
|
%
|
13.6
|
%
|
|||||||||||||
|
(1) The supplementary information included in this press release for the three months ended July 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) In May 2020, we moved the IT bootcamp business acquired as part of The Learning House acquisition from Education Services 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
three months ended July 31, 2020 was $12.4 million.
|
|||||||||||||||||
|
# Not meaningful
|
|||||||||||||||||
|
JOHN WILEY & SONS, INC.
|
||||||||
|
SUPPLEMENTARY INFORMATION (1)
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
||||||||
|
(in thousands)
|
||||||||
|
(unaudited)
|
||||||||
|
July 31,
|
April 30,
|
|||||||
|
2020
|
2020
|
|||||||
|
Assets:
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
101,385
|
$
|
202,464
|
||||
|
Accounts receivable, net
|
282,412
|
309,384
|
||||||
|
Inventories, net
|
45,051
|
43,614
|
||||||
|
Prepaid expenses and other current assets
|
59,155
|
59,465
|
||||||
|
Total Current Assets
|
488,003
|
614,927
|
||||||
|
Product Development Assets, net
|
52,088
|
53,643
|
||||||
|
Royalty Advances, net
|
28,682
|
36,710
|
||||||
|
Technology, Property and Equipment, net
|
295,457
|
298,005
|
||||||
|
Intangible Assets, net
|
829,231
|
807,405
|
||||||
|
Goodwill
|
1,133,610
|
1,116,790
|
||||||
|
Operating Lease Right-of-Use Assets
|
139,798
|
142,716
|
||||||
|
Other Non-Current Assets
|
102,077
|
98,598
|
||||||
|
Total Assets
|
$
|
3,068,946
|
$
|
3,168,794
|
||||
|
Liabilities and Shareholders' Equity:
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$
|
52,556
|
$
|
93,691
|
||||
|
Accrued royalties
|
82,691
|
87,408
|
||||||
|
Short-term portion of long-term debt
|
10,938
|
9,375
|
||||||
|
Contract liabilities
|
408,954
|
520,214
|
||||||
|
Accrued employment costs
|
70,211
|
108,448
|
||||||
|
Accrued income taxes
|
181
|
13,728
|
||||||
|
Short-term portion of operating lease liabilities
|
20,647
|
21,810
|
||||||
|
Other accrued liabilities
|
69,958
|
72,595
|
||||||
|
Total Current Liabilities
|
716,136
|
927,269
|
||||||
|
Long-Term Debt
|
835,763
|
765,650
|
||||||
|
Accrued Pension Liability
|
183,284
|
187,969
|
||||||
|
Deferred Income Tax Liabilities
|
124,184
|
119,127
|
||||||
|
Operating Lease Liabilities
|
156,644
|
159,782
|
||||||
|
Other Long-Term Liabilities
|
79,190
|
75,373
|
||||||
|
Total Liabilities
|
2,095,201
|
2,235,170
|
||||||
|
Shareholders' Equity
|
973,745
|
933,624
|
||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
3,068,946
|
$
|
3,168,794
|
||||
|
(1) The supplementary information included in this press release for July 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 CASH FLOW
|
|||||||||
|
(in thousands)
|
|||||||||
|
(unaudited)
|
|||||||||
|
Three Months Ended
|
|||||||||
|
July 31,
|
|||||||||
|
2020
|
2019
|
||||||||
|
Operating Activities:
|
|||||||||
|
Net income
|
$
|
16,334
|
$
|
3,624
|
|||||
|
Amortization of intangibles
|
16,891
|
14,970
|
|||||||
|
Amortization of product development assets
|
9,148
|
8,714
|
|||||||
|
Depreciation and amortization of technology, property, and equipment
|
23,468
|
18,535
|
|||||||
|
Other non-cash charges and credits
|
37,105
|
26,477
|
|||||||
|
Net change in operating assets and liabilities
|
(223,729
|
)
|
(166,488
|
)
|
|||||
|
Net Cash Used In Operating Activities
|
(120,783
|
)
|
(94,168
|
)
|
|||||
|
Investing Activities:
|
|||||||||
|
Additions to technology, property, and equipment
|
(18,964
|
)
|
(24,202
|
)
|
|||||
|
Product development spending
|
(5,325
|
)
|
(6,211
|
)
|
|||||
|
Businesses acquired in purchase transactions, net of cash acquired
|
(136
|
)
|
(73,209
|
)
|
|||||
|
Acquisitions of publication rights and other
|
(3,855
|
)
|
(2,270
|
)
|
|||||
|
Net Cash Used in Investing Activities
|
(28,280
|
)
|
(105,892
|
)
|
|||||
|
Financing Activities:
|
|||||||||
|
Net debt borrowings
|
67,356
|
253,848
|
|||||||
|
Cash dividends
|
(19,261
|
)
|
(19,252
|
)
|
|||||
|
Purchase of treasury shares
|
-
|
(10,000
|
)
|
||||||
|
Other
|
(4,611
|
)
|
(11,263
|
)
|
|||||
|
Net Cash Provided By Financing Activities
|
43,484
|
213,333
|
|||||||
|
Effects of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
4,500
|
(2,138
|
)
|
||||||
|
Change in Cash, Cash Equivalents and Restricted Cash for Period
|
(101,079
|
)
|
11,135
|
||||||
|
Cash, Cash Equivalents and Restricted Cash - Beginning
|
203,047
|
93,548
|
|||||||
|
Cash, Cash Equivalents and Restricted Cash - Ending
|
$
|
101,968
|
104,683
|
||||||
|
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING
|
|||||||||
|
Three Months Ended
|
|||||||||
|
July 31,
|
|||||||||
|
2020
|
2019
|
||||||||
|
Net Cash Used In Operating Activities
|
$
|
(120,783
|
)
|
$
|
(94,168
|
)
|
|||
|
Less: Additions to technology, property, and equipment
|
|
(18,964
|
)
|
(24,202
|
)
|
||||
|
Less: Product development spending
|
|
(5,325
|
)
|
(6,211
|
)
|
||||
|
Free Cash Flow less Product Development Spending
|
$
|
(145,072
|
)
|
$
|
(124,581
|
)
|
|||
|
See Explanation of Usage of Non-GAAP Measures included in this supplemental information.
|
|||||||||
|
(1) The supplementary information included in this press release for the three months ended July 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.
|
|
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 and margin;
|
|
• EBITDA and 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 certain investors and financial analysts for operational trends and comparisons over time. The use of these non-GAAP performance measures may also provide a consistent
basis to evaluate operating profitability and performance trends by excluding items that we do not consider to be controllable activities for this purpose. For example:
|
|
• Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, Adjusted Contribution to Profit, 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 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 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.
|
