Wiley Reports Fourth Quarter and Fiscal Year 2021 Results

HOBOKEN, N.J.–(BUSINESS WIRE)–
John Wiley & Sons, Inc. (NYSE:JWA)(NYSE:JWB), 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 expectsprofit 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 expectsstrong 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: JWA) 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

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