John Wiley & Sons(WLY) - 2025 Q2 - Quarterly Report

Revenue Performance - For the three months ended October 31, 2024, consolidated revenue was $426.6 million, a decrease of 13$423.4 million[188]. - Research revenue for the three months ended October 31, 2024, increased by $4.2 million, or 2$261,885 million, with Research Publishing revenue at $222,667 million and Research Solutions revenue at$39,218 million[231]. - Learning revenue increased by $12.6 million, or 8$527.2 million, a 2% increase from $515.5 million in the prior year[292]. - Learning Revenue rose to$285.8 million, an 11% increase compared to $258.3 million in the previous year[296]. Operating Income and Expenses - Operating income for the same period was$64.1 million, reflecting a 39% increase compared to the prior year, driven by lower costs of sales and restructuring charges[205]. - Operating and administrative expenses decreased by $13.4 million, or 5$238.9 million, mainly due to lower employee-related costs[195]. - Adjusted Operating Income for the three months ended October 31, 2024, was $59,527 million, reflecting a 1$63.2 million compared to the prior year, primarily due to lower costs of sales and restructuring charges[264]. - Adjusted Operating Income increased by 46% on a constant currency basis compared to the prior year[265]. EBITDA and Adjusted Metrics - Adjusted EBITDA for the three months ended October 31, 2024, was $105.5 million, a 14$178.2 million, an increase from $152.1 million in the prior year, reflecting a significant recovery[269]. - Adjusted EBITDA for Learning increased by 34$100.6 million, driven by revenue performance[298]. - Adjusted EBITDA increased by 23% on a constant currency basis, primarily due to revenue performance and a decrease in employee costs[237]. Net Income and Earnings Per Share - For the six months ended October 31, 2024, the company reported a net income of $39.0 million compared to a net loss of$111.7 million for the same period in 2023[269]. - The diluted earnings per share for the three months ended October 31, 2024, was $0.74, compared to a loss per share of$(0.35) for the same period in 2023[226]. - Diluted earnings per share for the six months ended October 31, 2024, was $0.71, a significant improvement from a loss per share of$(2.02) in the same period of 2023[288]. - Non-GAAP Adjusted EPS for the three months ended October 31, 2024, was $0.97, compared to$0.73 for the same period in 2023, representing a 36% increase on a constant currency basis[228]. - Non-GAAP Adjusted EPS increased to $1.44 from$0.99 year-over-year[290]. Cost Management and Restructuring - Cost of sales decreased by $48.6 million, or 31$107.0 million, primarily due to the sale of University Services and lower employee costs related to Wiley Edge[192]. - The company anticipates annualized cost savings of approximately $80 million from its Global Restructuring Program, with$75 million expected to be realized in the current fiscal year[199]. - Restructuring charges for the six months ended October 31, 2024, were $7.5 million, down from$37.2 million in the prior year[258]. - Amortization of intangible assets decreased by $3.3 million, or 11$369 million, compared to a loss of $51,414 million in the same period of 2023[213]. - The company recognized a net gain of$0.8 million from the sale of Wiley Edge, which included $1.0 million in the three months ended October 31, 2024[215]. - The net gain on the sale of businesses, assets, and impairment charges related to assets held-for-sale was$6.2 million for the six months ended October 31, 2024, compared to a loss of $127.3 million in the prior year[274]. Interest and Foreign Exchange - Interest expense increased to$14.5 million for the three months ended October 31, 2024, compared to $12.9 million in the prior year, due to a higher effective interest rate[210]. - Interest expense increased to$27.3 million for the six months ended October 31, 2024, up from $24.3 million in the previous year, primarily due to a higher effective interest rate[270]. - Net foreign exchange transaction losses were$(3.3) million for the three months ended October 31, 2024, primarily due to changes in foreign exchange rates[211]. - The company recorded net foreign exchange transaction losses of $3.1 million for the six months ended October 31, 2024, compared to losses of$4.0 million in the same period of 2023[271][272]. - Foreign currency translation gains for the six months ended October 31, 2024 were approximately $42.9 million, compared to losses of$(22.7) million for the same period in 2023[332]. Cash Flow and Debt - Cash and cash equivalents as of October 31, 2024, were $75.5 million, primarily located outside the US[307]. - Total debt outstanding as of October 31, 2024, was approximately$961.0 million, with $344.3 million of unused borrowing capacity[309]. - Net cash used in operating activities for the six months ended October 31, 2024 was$(93.99) million, compared to $(83.49) million for the same period in 2023, reflecting a$10.5 million increase[316]. - Free cash flow less product development spending was $(130.15) million for the six months ended October 31, 2024, compared to$(131.98) million for the same period in 2023[315]. - Net cash used in investing activities decreased to $(44.49) million for the six months ended October 31, 2024, from$(51.92) million in the prior year, primarily due to a $11.3 million decrease in cash used for additions to technology, property, and equipment[322]. - Net cash provided by financing activities was$113.08 million for the six months ended October 31, 2024, down from $129.70 million in the same period of 2023, mainly due to lower net borrowings of$14.1 million[323]. Shareholder Returns and Stock Activity - The quarterly dividend increased to $1.41 per share annualized, compared to$1.40 per share annualized in the prior year[324]. - The company repurchased 556,000 shares of Class A common stock at an average price of $44.89 during the six months ended October 31, 2024, compared to 668,000 shares at an average price of$33.64 in the prior year[325]. Customer and Revenue Concentration - Subscription agents account for approximately 16% of total annual consolidated revenue, with no single group accounting for more than 10%[338]. - The top 10 book customers account for about 14% of total consolidated revenue and approximately 43% of accounts receivable as of October 31, 2024[339]. - No single book customer accounts for more than 7% of total consolidated revenue as of October 31, 2024[339]. - The company has minimal credit risk exposure to subscription agents currently, but future receipts depend on their financial condition[338]. - The company’s book business is not reliant on a single customer, indicating a diversified revenue stream[339].