HOBOKEN, N.J.–(BUSINESS WIRE)–Wiley (NYSE: WLY and WLYB), one of the world’s largest publishers and a global leader in research and learning, today reported results for the second quarter ended October 31, 2023.
- GAAP Results: Revenue of $493 million (-4%), Operating income of $46 million (-19%), and EPS loss of -$0.35 (-$1.03). GAAP earnings impacted by impairment charges of $52 million related to our held for sale or sold assets and restructuring charges totalling $25 million related to our value creation plan.
- Adjusted Results at Constant Currency (excluding Held for Sale or Sold segment results): Adjusted Revenue of $407 million (-2%), Adjusted EBITDA of $92 million (-13%), and Adjusted EPS of $0.73 (-25%).
VALUE CREATION PLAN PROGRESS
- Intensify focus on core of Research & Learning: Reorganized from three business units to one market-facing Research & Learning team under one leader to drive scale, synergies, and capital efficiency; consolidated global operations under one leader to improve operating efficiency.
- Divest non-core assets: Recently announced sale of University Services business for total consideration of up to $150 million and a 10% share in acquiring company.
- Rightsize and optimize: Recently executed on restructuring actions that will yield $65 million of run rate savings, with approximately $30 million of that to be realized this fiscal year and already reflected in the Company’s current guidance.
MANAGEMENT COMMENTARY
“Our second quarter and year-to-date overall performance was in line with our expectations as we execute on our value creation plan to make Wiley a stronger, leaner, and more profitable company focused on driving consistent growth in our core,” said Matthew Kissner, Interim President and CEO. “We expect year-over-year revenue improvement in the second half and expect to exit the year with a stronger margin profile. Fiscal 2025 and 2026 is where we will realize the full benefits of our current actions.”
FINANCIAL PERFORMANCE
See accompanying financial tables for the second quarter and year-to-date 2024. For GAAP purposes, Wiley’s reporting structure consists of three segments: (1) Research, (2) Learning, and (3) Held for Sale or Sold.
Research
- Revenue of $258 million was down 5%, or 7% at constant currency, mainly due to the Hindawi publishing pause (-$18 million) and a soft market for recruiting. This offset continued growth in our core open access publishing program. Excluding Hindawi, revenue was flat.
- Adjusted EBITDA of $82 million was down 17% at constant currency due to revenue performance, namely Hindawi. Adjusted EBITDA margin for the quarter was 31.6%. Excluding Hindawi, Adjusted EBITDA was down 4% primarily due to higher employee costs.
Learning
- Revenue of $149 million was up 7% as reported or 6% at constant currency due to growth in both Academic (driven by zyBooks digital courseware and inclusive access) and Professional (driven by improved channel environment and fewer returns).
- Adjusted EBITDA of $54 million was up 14% as reported or 13% at constant currency mainly due to revenue growth and restructuring savings. Adjusted EBITDA margin for the quarter was 36.2%.
Businesses Held for Sale or Sold (HFS)
- Revenue of $86 million was down 17% on a reported basis or 18% at constant currency mainly due to declines in Wiley Edge. Adjusted EBITDA of $19 million was up from $18 million in the prior year with restructuring savings offsetting revenue performance.
- Wiley announced the sale of University Services during the quarter with an anticipated close in early calendar 2024. For details on the transaction, please see Wiley’s 8K filing.
Corporate Expenses (Adjusted EBITDA)
- Adjusted Corporate Expenses (Adjusted EBITDA) of $43 million was up 8% over prior year on a constant currency basis, driven by a lower incentive compensation accrual in the prior year and higher executive severance costs.
EPS
- GAAP EPS loss of $0.35 compared to +$0.68 in the prior year period due to impairment of held-for-sale assets totalling $52 million and restructuring charges totalling $25 million.
- Adjusted EPS excluding businesses held for sale or sold of $0.73 was down 25% primarily due to lower Adjusted Operating Income from lower revenue, and higher interest expense.
Balance Sheet, Cash Flow, and Capital Allocation
- Net Debt-to-EBITDA Ratio (Trailing Twelve Months) at quarter end was 2.0x compared to 2.1x at prior year end.
- Net Cash Used in Operating Activities (Year-to-Date) was a use of $83 million compared to a use of $76 million in the prior year period due to lower cash earnings and higher restructuring payments partially offset by reduced incentive compensation. Note, Wiley’s regular use of cash in the first half of the fiscal year is driven by the timing of cash collections for annual journal subscriptions, which are concentrated in Q3 and Q4.
- Free Cash Flow less Product Development Spending (Year-to-Date) was a use of $132 million compared to a use of $126 million due to lower cash earnings and higher restructuring payments. Capex of $48 million was moderately below prior year. Note, Wiley does not provide an adjusted free cash flow metric; results include held for sale or sold businesses.
- Returns to Shareholders (Year-to-Date): In June, the Company raised its annual dividend for the 30th consecutive year. Year-to-date, Wiley allocated $39 million toward dividends in line with prior year, and $23 million toward repurchasing 669,000 shares at an average cost per share of $33.64. This compares to 382,000 shares repurchased ($18 million) in the prior year period. The Company has $140 million remaining in its current share repurchase authorization program. There were no acquisitions of note in the quarter.
FISCAL YEAR 2024 TRANSITION YEAR OUTLOOK
Fiscal Year 2024 is a transition year for Wiley as it divests non-core assets and streamlines the organization. The Company is reaffirming its overall Fiscal 2024 outlook for Adjusted Revenue, Adjusted EBITDA, and Adjusted EPS.
|
Metric ($millions, except EPS) |
Fiscal 2023 |
Fiscal 2023 |
Fiscal 2024 Outlook |
|
Adjusted Revenue* |
$2,020 |
$1,627 |
$1,580 to $1,630 |
|
Research |
|
$1,080 |
Flat to low-single digit decline |
|
Learning |
|
$547 |
Flat to low-single digit increase |
|
Adjusted EBITDA* |
$422 |
$379 |
$305 to $330 |
|
Adjusted EPS* |
$3.84 |
$3.48 |
$2.05 to $2.40 |
*“Adjusted Revenue,” “Adjusted EBITDA,” and “Adjusted EPS” exclude businesses held for sale, including University Services, Wiley Edge (formerly Talent Development), and CrossKnowledge, as well as those sold in Fiscal 2023: Test Prep and Advancement Courses.
Fiscal Year 2024 Transition Year Outlook
- Adjusted Revenue – reaffirming overall with Research moderately below expectations and Learning ahead of expectations. The Company now expects Research growth excluding Hindawi of 2%, down from 3% originally. Note, Adjusted Revenue excludes businesses held for sale or sold.
- Adjusted EBITDA – reaffirming with projected revenue performance, incentive compensation resetting, and wage inflation offsetting expected restructuring savings.
- Adjusted EPS – reaffirming due to projected adjusted operating income performance and higher interest expense.
The Company is not providing a Free Cash Flow outlook due to the uncertainty around the timing of divestitures and the size and scope of restructuring payments.
EARNINGS CONFERENCE CALL
Scheduled for today, December 6 at 10:00 am (ET). Access webcast at Investor Relations at investors.wiley.com, or directly at https://events.q4inc.com/attendee/108195967 U.S. callers, please dial (888) 210-3346 and enter the participant code 2521217#. International callers, please dial (646) 960-0253 and enter the participant code 2521217#.
ABOUT WILEY
Wiley is one of the world’s largest publishers and a global leader in research and learning. Dedicated to the creation and application of knowledge, Wiley serves the world’s researchers, learners, innovators, and leaders, helping them achieve their goals and solve the world’s most important challenges. For more than two centuries, Wiley has been delivering on its timeless mission to unlock human potential. Visit us at Wiley.com. Follow us on Facebook, Twitter, LinkedIn and Instagram.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as “Adjusted EPS,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted CTP,” “Adjusted Income before Taxes,” “Adjusted Income Tax Provision,” “Adjusted Effective Income Tax Rate,” “Free Cash Flow less Product Development Spending,” “organic revenue,” “Adjusted Revenue,” and results on a Constant Currency basis to assess underlying business performance and trends. Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, and the impact of 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 2024 outlook for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with U.S. GAAP.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements concerning the Company’s operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company’s journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company’s educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company’s ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the ability to realize operating savings over time and in fiscal year 2024 in connection with our multiyear Global Restructuring Program and planned dispositions; (xi) the possibility that the divestitures will not be pursued, failure to obtain necessary regulatory approvals or required financing or to satisfy any of the other conditions to planned dispositions; 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.
CATEGORY: EARNINGS RELEASES
| JOHN WILEY & SONS, INC. | |||||||||||||||||
| SUPPLEMENTARY INFORMATION (1)(2) | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME | |||||||||||||||||
| (Dollars in thousands, except per share information) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| October 31, | October 31, | ||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|||
| Revenue, net |
$ |
492,808 |
|
$ |
514,836 |
|
$ |
943,821 |
|
$ |
1,002,405 |
|
|||||
| Costs and expenses: | |||||||||||||||||
| Cost of sales |
|
155,614 |
|
|
170,302 |
|
|
312,715 |
|
|
344,333 |
|
|||||
| Operating and administrative expenses |
|
252,282 |
|
|
253,029 |
|
|
508,083 |
|
|
535,780 |
|
|||||
| Impairment of goodwill (3) |
|
– |
|
|
– |
|
|
26,695 |
|
|
– |
|
|||||
| Restructuring and related charges |
|
25,102 |
|
|
13,956 |
|
|
37,225 |
|
|
36,397 |
|
|||||
| Amortization of intangible assets |
|
13,565 |
|
|
20,110 |
|
|
29,213 |
|
|
45,421 |
|
|||||
| Total costs and expenses |
|
446,563 |
|
|
457,397 |
|
|
913,931 |
|
|
961,931 |
|
|||||
| Operating income |
|
46,245 |
|
|
57,439 |
|
|
29,890 |
|
|
40,474 |
|
|||||
| As a % of revenue |
|
9.4 |
% |
|
11.2 |
% |
|
3.2 |
% |
|
4.0 |
% |
|||||
| Interest expense |
|
(12,937 |
) |
|
(9,332 |
) |
|
(24,271 |
) |
|
(15,664 |
) |
|||||
| Foreign exchange transaction (losses) gains |
|
(2,357 |
) |
|
478 |
|
|
(3,977 |
) |
|
(138 |
) |
|||||
| Impairment charge related to assets held-for-sale and loss on sale of a business (3) |
|
(51,414 |
) |
|
– |
|
|
(127,343 |
) |
|
– |
|
|||||
| Other (expense) income, net |
|
(1,567 |
) |
|
(255 |
) |
|
(3,052 |
) |
|
271 |
|
|||||
| (Loss) income before taxes |
|
(22,030 |
) |
|
48,330 |
|
|
(128,753 |
) |
|
24,943 |
|
|||||
| (Benefit) provision for income taxes |
|
(2,585 |
) |
|
10,137 |
|
|
(17,044 |
) |
|
4,585 |
|
|||||
| Effective tax rate |
|
11.7 |
% |
|
21.0 |
% |
|
13.2 |
% |
|
18.4 |
% |
|||||
| Net (loss) income |
$ |
(19,445 |
) |
$ |
38,193 |
|
$ |
(111,709 |
) |
$ |
20,358 |
|
|||||
| As a % of revenue |
|
-3.9 |
% |
|
7.4 |
% |
|
-11.8 |
% |
|
2.0 |
% |
|||||
| (Loss) earnings per share | |||||||||||||||||
| Basic |
$ |
(0.35 |
) |
$ |
0.69 |
|
$ |
(2.02 |
) |
$ |
0.37 |
|
|||||
| Diluted (4) |
$ |
(0.35 |
) |
$ |
0.68 |
|
$ |
(2.02 |
) |
$ |
0.36 |
|
|||||
| Weighted average number of common shares outstanding | |||||||||||||||||
| Basic |
|
55,102 |
|
|
55,622 |
|
|
55,186 |
|
|
55,679 |
|
|||||
| Diluted (4) |
|
55,102 |
|
|
56,195 |
|
|
55,186 |
|
|
56,326 |
|
|||||
| Notes: | ||||||||
| (1) The supplementary information included in this press release for the three and six months ended October 31, 2023 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. | ||||||||
| (3) As previously announced, we are divesting non-core businesses, including University Services, Wiley Edge, and CrossKnowledge. These dispositions are expected to be completed during fiscal year 2024. As a result, we reorganized our segments in the first quarter of fiscal year 2024, and our new structure consists of three reportable segments which includes Research (no change), Learning, and Held for Sale or Sold, as well as a Corporate expense category (no change). As a result of this realignment, we were required to test goodwill for impairment immediately before and after the realignment. Prior to the realignment, we concluded that the fair value of the University Services reporting unit within the Held for Sale or Sold segment was below its carrying value which resulted in a pretax non-cash goodwill impairment of $11.4 million in the six months ended October 31, 2023. After the realignment, we concluded that the fair value of the CrossKnowledge reporting unit within the Held for Sale or Sold segment was below its carrying value which resulted in a pretax non-cash goodwill impairment of $15.3 million in the six months ended October 31, 2023.
In addition, these three businesses met the held-for-sale criteria. We measured each business at the lower of carrying value or fair value less cost to sell. We recorded a held-for-sale pretax impairment charge of $51.9 million and $125.8 million in the three and six months ended October 31, 2023, respectively, related to University Services and CrossKnowledge. The total impairment charge for University Services in the six months ended October 31, 2023 was $75.4 million, which includes $34.8 million in the three months ended October 31, 2023. The total impairment charge for CrossKnowledge in the six months ended October 31, 2023 was $50.4 million, which includes $17.1 million in the three months ended October 31, 2023. In the three months ended October 31, 2023, there was a reduction in the pretax loss on the sale of our Tuition Manager business previously in our Held for Sale or Sold segment due to cash received after the closing of approximately $0.5 million, which resulted in a total net pretax loss of $1.5 million (net of tax loss of $1.1 million). |
||||||||
| (4) In calculating diluted net loss per common share for the three and six months ended October 31, 2023, our diluted weighted average number of common shares outstanding excludes the effect of unvested restricted stock units and other stock awards as the effect was antidilutive. This occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. | ||||||||
| JOHN WILEY & SONS, INC. | ||||||||||||||||||
| SUPPLEMENTARY INFORMATION (1) (2) | ||||||||||||||||||
| RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| October 31, | October 31, | |||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||||
| US GAAP (Loss) Earnings Per Share – Diluted |
$ |
(0.35 |
) |
$ |
0.68 |
|
$ |
(2.02 |
) |
$ |
0.36 |
|
||||||
| Adjustments: | ||||||||||||||||||
| Impairment of goodwill |
|
– |
|
|
– |
|
|
0.43 |
|
|
– |
|
||||||
| Restructuring and related charges |
|
0.34 |
|
|
0.19 |
|
|
0.50 |
|
|
0.49 |
|
||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
0.04 |
|
|
0.03 |
|
|
0.04 |
|
|
0.04 |
|
||||||
| Amortization of acquired intangible assets (4) |
|
0.19 |
|
|
0.30 |
|
|
0.42 |
|
|
0.67 |
|
||||||
| Impairment charge related to assets held-for-sale and loss on sale of a business (5) |
|
0.77 |
|
|
– |
|
|
1.94 |
|
|
– |
|
||||||
| Held for Sale or Sold segment Adjusted Net Income (5) |
|
(0.27 |
) |
|
(0.18 |
) |
|
(0.34 |
) |
|
(0.08 |
) |
||||||
| EPS impact of using weighted-average dilutive shares for adjusted EPS calculation (6) |
|
0.01 |
|
|
– |
|
|
0.02 |
|
|
– |
|
||||||
| Non-GAAP Adjusted Earnings Per Share – Diluted |
$ |
0.73 |
|
$ |
1.02 |
|
$ |
0.99 |
|
$ |
1.48 |
|
||||||
| Reconciliation of US GAAP (Loss) Income Before Taxes to Non-GAAP Adjusted Income Before Taxes | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| (amounts in thousands) | October 31, | October 31, | ||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||||
| US GAAP (Loss) Income Before Taxes |
$ |
(22,030 |
) |
$ |
48,330 |
|
$ |
(128,753 |
) |
$ |
24,943 |
|
||||||
| Pretax Impact of Adjustments: | ||||||||||||||||||
| Impairment of goodwill |
|
– |
|
|
– |
|
|
26,695 |
|
|
– |
|
||||||
| Restructuring and related charges |
|
25,102 |
|
|
13,956 |
|
|
37,225 |
|
|
36,397 |
|
||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
3,223 |
|
|
2,654 |
|
|
3,217 |
|
|
3,320 |
|
||||||
| Amortization of acquired intangible assets (4) |
|
14,303 |
|
|
21,185 |
|
|
30,971 |
|
|
47,570 |
|
||||||
| Impairment charge related to assets held-for-sale and loss on sale of a business (5) |
|
51,414 |
|
|
– |
|
|
127,343 |
|
|
– |
|
||||||
| Held for Sale or Sold segment Adjusted Income Before Taxes (5) |
|
(19,099 |
) |
|
(13,230 |
) |
|
(24,133 |
) |
|
(5,636 |
) |
||||||
| Non-GAAP Adjusted Income Before Taxes |
$ |
52,913 |
|
$ |
72,895 |
|
$ |
72,565 |
|
$ |
106,594 |
|
||||||
| Reconciliation of US GAAP Income Tax (Benefit) Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate | ||||||||||||||||||
| US GAAP Income Tax (Benefit) Provision |
$ |
(2,585 |
) |
$ |
10,137 |
|
$ |
(17,044 |
) |
$ |
4,585 |
|
||||||
| Income Tax Impact of Adjustments (7) | ||||||||||||||||||
| Impairment of goodwill |
|
– |
|
|
– |
|
|
2,697 |
|
|
– |
|
||||||
| Restructuring and related charges |
|
6,315 |
|
|
3,422 |
|
|
9,251 |
|
|
8,939 |
|
||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments (3) |
|
888 |
|
|
694 |
|
|
854 |
|
|
869 |
|
||||||
| Amortization of acquired intangible assets (4) |
|
3,645 |
|
|
4,388 |
|
|
7,517 |
|
|
10,220 |
|
||||||
| Impairment charge related to assets held-for-sale and loss on sale of a business (5) |
|
8,542 |
|
|
– |
|
|
19,203 |
|
|
– |
|
||||||
| Held for Sale or Sold segment Adjusted Tax Provision (5) |
|
(4,270 |
) |
|
(3,015 |
) |
|
(5,266 |
) |
|
(1,446 |
) |
||||||
| Non-GAAP Adjusted Income Tax Provision |
$ |
12,535 |
|
$ |
15,626 |
|
$ |
17,212 |
|
$ |
23,167 |
|
||||||
| US GAAP Effective Tax Rate |
|
11.7 |
% |
|
21.0 |
% |
|
13.2 |
% |
|
18.4 |
% |
||||||
| Non-GAAP Adjusted Effective Tax Rate |
|
23.7 |
% |
|
21.4 |
% |
|
23.7 |
% |
|
21.7 |
% |
||||||
| Notes: | ||||||||||
| (1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three and six months ended October 31, 2023 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. | ||||||||||
| (3) In fiscal year 2023 due to the closure of our operations in Russia, the Russia entity was deemed substantially liquidated. In the three and six months ended October 31, 2023, we wrote off an additional $0.1 million and $1.0 million, respectively, of cumulative translation adjustments in earnings. This amount is reflected in Foreign exchange transaction (losses) gains on our Condensed Consolidated Statements of Net (Loss) Income. | ||||||||||
| (4) Reflects the amortization of intangible assets established on the opening balance sheet for an acquired business. This includes the amortization of intangible assets such as developed technology, customer relationships, tradenames, etc., which is reflected in the “Amortization of intangible assets” line in the Condensed Consolidated Statements of Net (Loss) Income. It also includes the amortization of acquired product development assets, which is reflected in Cost of sales in the Condensed Consolidated Statements of Net (Loss) Income. | ||||||||||
| (5) We are divesting non-core businesses, including University Services, Wiley Edge, and CrossKnowledge. These three businesses met the held-for-sale criteria and we measured each business at the lower of carrying value or fair value less cost to sell. We recorded a held-for-sale pretax impairment charge of $34.8 million and $75.4 million, in the three and six months ended October 31, 2023, respectively, related to University Services. We recorded a held-for-sale pretax impairment charge of $17.1 million and $50.4 million, in the three and six months ended October 31, 2023, respectively, related to CrossKnowledge.
In the three months ended October 31, 2023, there was a reduction in the pretax loss on the sale of our Tuition Manager business previously in our Held for Sale or Sold segment due to cash received after the closing of approximately $0.5 million, which resulted in a total net pretax loss of $1.5 million (net of tax loss of $1.1 million). In addition, our Adjusted EPS excludes the Adjusted Net Income of our Held for Sale or Sold segment. |
||||||||||
| (6) Represents the impact of using diluted weighted-average number of common shares outstanding (55.6 million and 55.7 million shares for the three and six months ended October 31, 2023, respectively) included in the Non-GAAP Adjusted EPS calculation in order to apply the dilutive impact on adjusted net income due to the effect of unvested restricted stock units and other stock awards. This impact occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. | ||||||||||
| (7) For the three and six months ended October 31, 2023 and 2022, substantially all of the tax impact was from deferred taxes. | ||||||||||
| JOHN WILEY & SONS, INC. | |||||||||||||||||
| SUPPLEMENTARY INFORMATION (1) | |||||||||||||||||
| RECONCILIATION OF US GAAP NET (LOSS) INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| October 31, | October 31, | ||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|||
| Net (Loss) Income |
$ |
(19,445 |
) |
$ |
38,193 |
|
$ |
(111,709 |
) |
$ |
20,358 |
|
|||||
| Interest expense |
|
12,937 |
|
|
9,332 |
|
|
24,271 |
|
|
15,664 |
|
|||||
| (Benefit) provision for income taxes |
|
(2,585 |
) |
|
10,137 |
|
|
(17,044 |
) |
|
4,585 |
|
|||||
| Depreciation and amortization |
|
40,174 |
|
|
52,421 |
|
|
83,902 |
|
|
110,700 |
|
|||||
| Non-GAAP EBITDA |
|
31,081 |
|
|
110,083 |
|
|
(20,580 |
) |
|
151,307 |
|
|||||
| Impairment of goodwill |
|
– |
|
|
– |
|
|
26,695 |
|
|
– |
|
|||||
| Restructuring and related charges |
|
25,102 |
|
|
13,956 |
|
|
37,225 |
|
|
36,397 |
|
|||||
| Foreign exchange losses (gains), including the write off of certain cumulative translation adjustments |
|
2,357 |
|
|
(478 |
) |
|
3,977 |
|
|
138 |
|
|||||
| Impairment charge related to assets held-for-sale and loss on sale of a business |
|
51,414 |
|
|
– |
|
|
127,343 |
|
|
– |
|
|||||
| Other expense (income), net |
|
1,567 |
|
|
255 |
|
|
3,052 |
|
|
(271 |
) |
|||||
| Held for Sale or Sold segment Adjusted EBITDA (2) |
|
(19,100 |
) |
|
(18,089 |
) |
|
(25,621 |
) |
|
(15,654 |
) |
|||||
| Non-GAAP Adjusted EBITDA |
$ |
92,421 |
|
$ |
105,727 |
|
$ |
152,091 |
|
$ |
171,917 |
|
|||||
| Adjusted EBITDA Margin |
|
22.7 |
% |
|
25.7 |
% |
|
19.7 |
% |
|
21.3 |
% |
|||||
Contacts
Brian Campbell
Investor Relations
201.748.6874
[email protected]
