HOBOKEN, N.J.--(BUSINESS WIRE)-- Wiley (NYSE:JWA)(NYSE:JWB), a global leader in scientific research and career-connected education, today announced results for the third quarter ended January 31, 2022.
THIRD QUARTER SUMMARY
- GAAP Results: Revenue of $516 million (+7%), Operating Income of $46 million (+34%), and EPS of $0.63 (+62%)
- Adjusted Results (at constant currency): Revenue of $516 million (+7%), Adjusted EBITDA of $100 million (-5%), and Adjusted EPS of $0.95 (-9%)
NINE MONTHS SUMMARY
- GAAP Results: Revenue of $1,537 million (+9%), Operating Income of $161 million (+20%), EPS of $1.86 (-2%), Cash Provided by Operating Activities of $158 million (+2%)
- Adjusted Results (at constant currency): Revenue of $1,537 million (+8%), Adjusted EBITDA of $322 million (+4%), Adjusted EPS of $3.09 (+4%), Free Cash Flow of $77 million (-3%)
MANAGEMENT COMMENTARY
"Wiley's strategy to meet the world's acute need for scientific research and career-connected education is allowing us to drive solid year-to-date performance and significant social impact," said Brian Napack, President and CEO. "We continue to benefit from strong competitive advantages, robust cash generation, and favorable long-term growth trends that benefit from the steadily rising demand to publish peer-reviewed research, the continued migration to digital, career-focused learning, and the need for employers to fill critical skill and talent gaps."
THIRD QUARTER PERFORMANCE
| GAAP Measures Unaudited ($millions except for EPS) |
Q3 2022 |
Q3 2021 |
Change |
|
| Revenue |
$515.9 |
$482.9 |
+7% |
|
| Operating Income |
$46.0 |
$34.3 |
+34% |
|
| Diluted EPS |
$0.63 |
$0.39 |
+62% |
|
| Non-GAAP Measures |
Q3 2022 |
Q3 2021 |
Change |
Change Constant Currency |
| Revenue |
$515.9 |
$482.9 |
+7% |
+7% |
| Adjusted EBITDA |
$99.8 |
$104.3 |
(4%) |
(5%) |
| Adjusted EPS* |
$0.95 |
$0.95 |
0% |
(9%) |
Excluding acquisitions and currency impact, revenue rose 4% for the quarter.
Wiley recorded an unfavorable FX variance of $2 million in Revenue and favorable FX variances of $0.7 million in Adjusted EBITDA and $0.09 in Adjusted EPS.
*Adjusted EPS:
In September 2021, Wiley changed how it reported Adjusted EPS metric to exclude the impact of certain non-cash items directly related to acquisitions, most notably the amortization of acquired intangible assets. The Company does not consider these non-cash items to be indicative of its ongoing operating performance.
Revenue
- Research Publishing & Platforms rose 10% as reported and at constant currency or 5% excluding acquisitions, driven by growth in publishing, corporate solutions, and platforms.
- Academic & Professional Learning declined 2% as reported and 1% at constant currency due to lower US college enrollment and an easing of prior-year COVID-related tailwinds for education content and courseware and professional publishing, offsetting continued recovery in corporate training.
- Education Services increased 18% as reported and at constant currency, driven by a doubling of revenue for Talent Development (formerly mthree) offsetting a 3% decline in University Services (formerly OPM) mainly from lower US student enrollment.
Adjusted EBITDA
- Research Publishing & Platforms rose 4% at constant currency, primarily driven by revenue growth partially offset by investments in growth initiatives. Q3 Adjusted EBITDA margin of 33%.
- Academic & Professional Learning rose 4% at constant currency, with cost savings offsetting lower revenue. Q3 Adjusted EBITDA margin of 30%.
- Education Services declined 14% at constant currency mainly due to investments to further accelerate growth in Talent Development. Q3 Adjusted EBITDA margin of 13%.
- Adjusted Corporate Expenses were 22% higher mainly due to higher technology and employee costs.
EPS
- GAAP EPS was $0.63 as compared to $0.39 in the prior year period. The favorable variance was mainly driven by a prior year restructuring charge of $21 million, or $0.28 per share.
- Adjusted EPS was down 9% at constant currency mainly driven by higher operating expenses and employee-related costs.
Cash Flow, Balance Sheet, and Capital Allocation
- Net Cash Provided by Operating Activities (nine months) was $158 million compared to $155 million in the prior year period due to favorable changes in working capital.
- Free Cash Flow less Product Development Spending (nine months) was $77 million as compared to $80 million in the prior year driven by higher capex.
- Net Debt-to-EBITDA ratio (trailing twelve months) at quarter-end was 1.9 compared to 2.2 in the prior year period.
- Acquisitions: During the quarter, Wiley acquired student acquisition company, XYZ Media, and open research service provider, eJournal Press.
- Share Repurchases: During the quarter,the Company utilized approximately $7.5 million to repurchase approximately 135,000 shares at an average cost per share of $55.40.
FISCAL YEAR 2022 OUTLOOK
Given its year-to-date performance and leading indicators, the Company is reaffirming its full year outlook.
| Metric ($millions, except EPS) |
Fiscal 2020 |
Fiscal 2021 |
Fiscal 2022 Outlook |
| Revenue |
$1,831 |
$1,942 |
$2,070 to $2,100 |
| Adjusted EBITDA |
$356 |
$419 |
$415 to $435 |
| Adjusted EPS |
$3.30 |
$4.00 |
$4.00 to $4.25 |
| Free Cash Flow |
$173 |
$257 |
$200 to $220 |
EARNINGS CONFERENCE CALL
Scheduled for today, March 8 at 10:00 am (ET). Access webcast at investors.wiley.com, or directly at http://event.on24.com/wcc/r/3574356/B31C9ADF91B6B0ECEB3B1EE2286E98AF. US 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 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
