Financial Performance - Fiscal Year 2024 GAAP revenue was $1,873 million, a decrease of 7% year-over-year, while adjusted revenue at constant currency was $1,617 million, down 1%[7] - Fourth Quarter Adjusted EBITDA was $94 million, down 11% year-over-year, with an adjusted EBITDA margin of 34.6%[7] - Full Year Adjusted EPS was $2.78, a decrease of 19% compared to the previous year, while Fourth Quarter Adjusted EPS was $1.21, up 2% at constant currency[15] - Net Income for the three months ended April 30, 2024, was $25.3 million, a decrease of 63.1% compared to $68.3 million in the same period of 2023[50] - Non-GAAP Adjusted EBITDA for the year ended April 30, 2024, was $368.6 million, down 2.0% from $379.3 million in 2023[61] - Total Revenue for the three months ended April 30, 2024, was $468.5 million, a decline of 11% from $526.1 million in the same period of 2023[54] - Net loss for the year ended April 30, 2024, was $200,319 thousand, compared to a net income of $17,233 thousand in the previous year[67] Cost Management and Savings - The company achieved $90 million of $130 million run-rate cost savings actions in FY24, with a focus on margin expansion and strong cash generation[6] - The company reported a restructuring charge of $11.0 million for the three months ended April 30, 2024, compared to $4.2 million in the same period of 2023[54] Revenue Segmentation - Fourth Quarter Learning revenue was $170 million, an increase of 18% year-over-year, primarily due to a $23 million GenAI content rights project[14] - Research Publishing revenue decreased by 3% to $233.5 million for the three months ended April 30, 2024, compared to $240.9 million in 2023[54] - Academic revenue increased by 22% to $98.9 million for the three months ended April 30, 2024, compared to $80.8 million in 2023[54] - Non-GAAP Adjusted Operating Income for the Learning segment increased by 75% to $57.7 million for the three months ended April 30, 2024, compared to $32.9 million in 2023[54] - Held for Sale or Sold segment revenue decreased by 73% to $27.3 million for the three months ended April 30, 2024, compared to $101.8 million in 2023[54] Debt and Cash Flow - The net debt-to-EBITDA ratio at the end of the quarter was 1.7, compared to 1.5 in the prior year[15] - The company expects Free Cash Flow to grow to approximately $125 million in FY25, up from $114 million in FY24[12] - Free cash flow less product development spending decreased from $172,958 thousand in 2023 to $114,296 thousand in 2024, a decline of approximately 33.9%[68] - The company reported a net cash provided by operating activities of $207,638 thousand for the year ended April 30, 2024, down from $277,071 thousand in 2023, a decline of about 25.1%[67] Impairments and Losses - The company recorded a pretax noncash goodwill impairment of $11.4 million for University Services and $15.3 million for CrossKnowledge in the year ended April 30, 2024[28] - A pretax noncash goodwill impairment of $81.7 million was recognized for the Wiley Edge reporting unit in the year ended April 30, 2024[29] - The total pretax loss on the sale of University Services was $107.0 million for the year ended April 30, 2024[30] - The company recorded a held-for-sale pretax impairment charge of $74.8 million related to Wiley Edge and CrossKnowledge for the year ended April 30, 2024[31] - The total impairment charge for Wiley Edge in the year ended April 30, 2024, was $19.4 million, while for CrossKnowledge it was $55.4 million[31] - The company completed the sale of University Services on January 1, 2024, resulting in an increase in the pretax loss on the sale of approximately $5.6 million[44] Future Outlook - The outlook for FY25 includes adjusted revenue guidance of $1,650 million to $1,690 million, with growth driven by Research and Learning momentum[12] - The company expects to complete the sale of CrossKnowledge in the second quarter of fiscal year 2025[27] - The company plans to continue focusing on divesting non-core businesses to streamline operations and improve financial performance[65] - The company anticipates continued focus on market expansion and new product development in the upcoming fiscal year[51] Tax and Valuation - The adjusted effective tax rate for the company was 53.2% for the year ended April 30, 2024, compared to 20.2% for the previous year[48] - The company increased the valuation allowance by $30.2 million due to the likelihood that all or a portion of its deferred tax asset may not be realized[49] Asset Management - Total assets decreased from $3,108,810 thousand in April 2023 to $2,725,495 thousand in April 2024, a decline of approximately 12.3%[63] - Current assets fell from $541,279 thousand in April 2023 to $454,042 thousand in April 2024, representing a decrease of about 16.1%[63] - Total liabilities decreased from $2,063,783 thousand in April 2023 to $1,985,779 thousand in April 2024, a reduction of about 3.8%[63] - Long-term debt increased from $743,292 thousand in April 2023 to $767,096 thousand in April 2024, an increase of approximately 3.2%[63] - Cash and cash equivalents at the end of the period were $99,543 thousand, down from $107,262 thousand in the previous year, a decrease of approximately 7.9%[67]
John Wiley & Sons(WLYB) - 2024 Q4 - Annual Results