John Wiley & Sons 8K Regulation FD Disclosure | WLY 28 Feb 23

JOHN WILEY & SONS, INC.

REVISED SEGMENT RESULTS (1)

(in thousands)

(unaudited)


	Q123		Q223
Research (2):
Revenue, net
Research Publishing	$	239,523	$	232,641
Research Solutions	35,390		38,718
Total Revenue, net	$	274,913	$	271,359

Contribution to Profit	$	69,023	$	73,279
Adjustments:
Restructuring charges	81		1,179
Non-GAAP Adjusted Contribution to Profit	$	69,104	$	74,458
Depreciation and amortization	23,801		23,384
Non-GAAP Adjusted EBITDA	$	92,905	$	97,842

Academic:
Revenue, net
Academic Publishing	$	104,366	$	121,798
University Services	46,771		57,170
Total Revenue, net	$	151,137	$	178,968

Contribution to Profit	$	(21,121)	$	23,385
Adjustments:
Restructuring charges	4,167		4,073
Non-GAAP Adjusted Contribution to Profit	$	(16,954)	$	27,458
Depreciation and amortization	20,919		20,706
Non-GAAP Adjusted EBITDA	$	3,965	$	48,164

Talent:
Total Revenue, net	$	61,519	$	64,509

Contribution to Profit	$	(463)	$	13,108
Adjustments:
Restructuring charges (credits)	2,456		(128)
Accelerated amortization of an intangible asset (3)	4,594		—
Non-GAAP Adjusted Contribution to Profit	$	6,587	$	12,980
Depreciation and amortization	4,809		4,421
Non-GAAP Adjusted EBITDA	$	11,396	$	17,401

Corporate Expenses:	$	(64,404)	$	(52,333)
Adjustments:
Restructuring charges	15,737		8,832
Non-GAAP Adjusted Contribution to Profit	$	(48,667)	$	(43,501)
Depreciation and amortization	4,156		3,910
Non-GAAP Adjusted EBITDA	$	(44,511)	$	(39,591)

Consolidated Results:
Revenue, net	$	487,569	$	514,836

Operating (Loss) Income	$	(16,965)	$	57,439
Adjustments:
Restructuring charges	22,441		13,956
Accelerated amortization of an intangible asset (3)	4,594		—
Non-GAAP Adjusted Operating Income	$	10,070	$	71,395
Depreciation and amortization	53,685		52,421
Non-GAAP Adjusted EBITDA	$	63,755	$	123,816


Notes:
(1) All amounts are approximate due to rounding.

(2) The Research segment was previously referred to as Research Publishing & Platforms.

(3) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Talent segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted, and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022.

JOHN WILEY & SONS, INC.

REVISED SEGMENT RESULTS (1)

(in thousands)

(unaudited)


	Q122		Q222		Q322		Q422		FY22		FY21
Research (2):
Revenue, net
Research Publishing (3)	$	243,284	$	238,853	$	224,553	$	257,025	$	963,715	$	892,176
Research Solutions (3)	31,472		36,301		38,788		41,067		147,628		123,173
Total Revenue, net	$	274,756	$	275,154	$	263,341	$	298,092	$	1,111,343	$	1,015,349

Contribution to Profit	$	78,808	$	77,031	$	62,165	$	76,985	$	294,989	$	273,059
Adjustments:
Restructuring charges (credits)	215		22		—		—		237		(36)
Non-GAAP Adjusted Contribution to Profit	$	79,023	$	77,053	$	62,165	$	76,985	$	295,226	$	273,023
Depreciation and amortization	23,762		23,464		23,914		23,759		94,899		83,866
Non-GAAP Adjusted EBITDA	$	102,785	$	100,517	$	86,079	$	100,744	$	390,125	$	356,889

Academic:
Revenue, net
Academic Publishing	$	110,751	$	146,406	$	143,583	$	130,965	$	531,705	$	538,643
University Services	54,959		58,608		55,435		58,405		227,407		230,371
Total Revenue, net	$	165,710	$	205,014	$	199,018	$	189,370	$	759,112	$	769,014

Contribution to Profit	$	2,035	$	35,429	$	31,711	$	22,542	$	91,717	$	113,548
Adjustments:
Restructuring (credits) charges	(138)		(470)		261		(123)		(470)		3,457
Non-GAAP Adjusted Contribution to Profit	$	1,897	$	34,959	$	31,972	$	22,419	$	91,247	$	117,005
Depreciation and amortization	20,718		21,211		19,693		20,099		81,721		77,823
Non-GAAP Adjusted EBITDA	$	22,615	$	56,170	$	51,665	$	42,518	$	172,968	$	194,828

Talent:
Total Revenue, net	$	47,922	$	52,835	$	53,525	$	58,191	$	212,473	$	157,138

Contribution to Profit	$	4,290	$	6,363	$	5,717	$	7,566	$	23,936	$	(4,731)
Adjustments:
Restructuring charges (credits)	275		11		(41)		(221)		24		577
Non-GAAP Adjusted Contribution to Profit	$	4,565	$	6,374	$	5,676	$	7,345	$	23,960	$	(4,154)
Depreciation and amortization	5,949		5,750		5,605		4,693		21,997		23,828
Non-GAAP Adjusted EBITDA	$	10,514	$	12,124	$	11,281	$	12,038	$	45,957	$	19,674

Corporate Expenses:	$	(44,165)	$	(44,935)	$	(53,604)	$	(48,662)	$	(191,366)	$	(196,365)
Adjustments:
Restructuring (credits) charges	(629)		(896)		228		79		(1,218)		29,312
Non-GAAP Adjusted Contribution to Profit	$	(44,794)	$	(45,831)	$	(53,376)	$	(48,583)	$	(192,584)	$	(167,053)
Depreciation and amortization	4,137		4,130		4,151		4,135		16,553		14,672
Non-GAAP Adjusted EBITDA	$	(40,657)	$	(41,701)	$	(49,225)	$	(44,448)	$	(176,031)	$	(152,381)

Consolidated Results:
Revenue, net	$	488,388	$	533,003	$	515,884	$	545,653	$	2,082,928	$	1,941,501

Operating Income	$	40,968	$	73,888	$	45,989	$	58,431	$	219,276	$	185,511
Adjustments:
Restructuring (credits) charges	(277)		(1,333)		448		(265)		(1,427)		33,310
Non-GAAP Adjusted Operating Income	$	40,691	$	72,555	$	46,437	$	58,166	$	217,849	$	218,821
Depreciation and amortization	54,566		54,555		53,363		52,686		215,170		200,189
Non-GAAP Adjusted EBITDA	$	95,257	$	127,110	$	99,800	$	110,852	$	433,019	$	419,010


Notes:
(1) All amounts are approximate due to rounding.

(2) The Research segment was previously referred to as Research Publishing & Platforms.

(3) As previously announced in May 2022, our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. The revenue was $20.1 million, $24.0 million, $24.3 million, and $24.9 million for the three months ended July 31, 2021, October 31, 2021, January 31, 2022, and April 30, 2022, respectively. The revenue was $93.3 million and $80.3 million for the years ended April 30, 2022 and 2021, respectively.

John Wiley & Sons (WLY) 8-KRegulation FD Disclosure