Financial Performance - Wiley reported third quarter revenue of $461 million, a decrease of 6% year-over-year, with an operating loss of $46 million and an EPS loss of $2.08[6]. - Adjusted revenue, excluding held for sale segments, was $403 million, reflecting a 1% increase, while adjusted EBITDA was $92 million, also up by 1%[6]. - The company raised its full-year adjusted revenue outlook to the mid-to-high end of the range of $1,580 to $1,630 million, with adjusted EBITDA guidance increased to $335 to $355 million[10]. - For the three months ended January 31, 2024, John Wiley & Sons, Inc. reported a net loss of $113.875 million, compared to a net loss of $71.469 million in the same period of 2023[39]. - The company reported a US GAAP loss before taxes of $(112.3) million for the three months ended January 31, 2024[29]. - Total revenue for the three months ended January 31, 2024, was $460.705 million, down 6% from $491.368 million in the same period of 2023[44]. - For the nine months ended January 31, 2024, total revenue was $771.673 million, a decrease of 4% compared to $799.872 million in the same period of 2023[49]. - Total revenue for the nine months ended January 31, 2024, was $1,404,526, a decrease of 6% compared to $1,493,773 for the same period in 2023[50]. Segment Performance - Research segment revenue was $256 million, up 1% as reported, driven by modest growth in Research Publishing, while adjusted EBITDA for this segment was $79 million, down 1%[7]. - Learning segment revenue reached $146 million, up 2% as reported, with adjusted EBITDA increasing by 16% to $51 million, reflecting strong performance in digital courseware and content[7]. - Research Publishing revenue for the three months ended January 31, 2024, was $216.586 million, a 1% increase from $213.720 million in the same period of 2023[43]. - Learning segment revenue for the three months ended January 31, 2024, increased by 2% to $146.334 million, compared to $143.243 million in the prior year[43]. - The Held for Sale or Sold segment reported a revenue decline of 38%, down to $58.172 million from $94.525 million in the same period of 2023[43]. - Non-GAAP adjusted contribution to profit for the learning segment was $85,051, an increase of 27% compared to $67,185 in the previous year[50]. Impairment and Losses - The company recorded impairment charges of $82 million related to goodwill and a loss of $26 million on a completed divestiture, impacting GAAP results significantly[12]. - A pretax noncash goodwill impairment of $81.7 million was recorded for Wiley Edge in the three and nine months ended January 31, 2024[23]. - The company recorded a held-for-sale pretax impairment charge of $20.6 million for Wiley Edge and $56.2 million for CrossKnowledge in the nine months ended January 31, 2024[25]. - The company incurred restructuring charges of $14.808 million for the three months ended January 31, 2024, compared to $8.807 million in the same period of 2023, representing a 68% increase[44]. - Impairment of goodwill for the three months ended January 31, 2024, was $81.754 million, an 18% decrease from $99.800 million in the same period of 2023[44]. - The company recorded a pretax impairment of $76.8 million related to non-core businesses divested during the nine months ended January 31, 2024[54]. Cash Flow and Debt - Free cash flow less product development spending was a use of $45 million year-to-date, compared to a use of $22 million in the prior year[12]. - Free cash flow less product development spending was $(45,247) for the nine months ended January 31, 2024, compared to $(21,661) in the same period of 2023[57]. - Net debt-to-EBITDA ratio improved to 1.9 from 2.1 in the prior year, indicating better leverage[12]. - Cash and cash equivalents as of January 31, 2024, were $93,100, down from $106,714 as of April 30, 2023[52]. - Total assets decreased to $2,707,288 as of January 31, 2024, from $3,108,810 as of April 30, 2023[52]. Future Outlook - The company anticipates a strong fourth quarter driven by recovery in Research and continued outperformance in Learning, alongside accelerated in-year cost savings[3]. - The company expects to complete the sale of Wiley Edge and CrossKnowledge by the first quarter of fiscal year 2025[21]. Non-GAAP Measures - Adjusted Earnings Per Share (Adjusted EPS) and Adjusted Revenue are key metrics used to analyze operating results and earnings[67]. - Free Cash Flow less Product Development Spending indicates the cash available for debt repayment, dividends, and share repurchases[68]. - Adjusted Operating Income and margin provide insights into the company's profitability excluding certain expenses[68]. - Results on a constant currency basis enhance comparability of business trends by removing foreign currency effects[68]. - Adjusted Contribution to Profit and margin reflect the profitability of core operations[68]. - Adjusted Income Before Taxes and Adjusted Income Tax Provision are critical for understanding pre-tax earnings and tax obligations[68]. - Adjusted Effective Tax Rate offers a clearer view of the company's tax efficiency[68]. - EBITDA and Adjusted EBITDA are commonly used metrics to assess operational performance[67]. - Organic revenue growth, excluding acquisitions, is essential for evaluating the company's core business performance[68]. - Non-GAAP measures should not be viewed as alternatives to US GAAP financial results and may not be comparable with similar measures used by other companies[66].
John Wiley & Sons(WLYB) - 2024 Q3 - Quarterly Results