Revenue Performance - Revenue for the three months ended October 31, 2024, decreased by $66.2 million, or 13%, compared to the prior year, with a 14% decrease on a constant currency basis [239]. - 48% of revenue for the year ended April 30, 2024, was recurring, indicating a high degree of revenue certainty [235]. - 83% of the company's revenue for the year ended April 30, 2024, was generated by digital products and services, highlighting a strong digital focus [235]. Cost and Expenses - Cost of sales for the same period was $107.0 million, a decrease of $48.6 million, or 31%, compared to the prior year, with a 32% decrease on a constant currency basis [242]. - The company anticipates ongoing severance-related charges and facility-related costs associated with its global restructuring program, leading to additional restructuring charges in future periods [246]. Debt and Interest Rates - The weighted average interest rates on total debt outstanding during the three months ended October 31, 2024, were 6.09%, up from 5.61% in the same period of the previous year [248]. - A hypothetical one percent change in interest rates for the $461.5 million of unhedged variable rate debt as of October 31, 2024, would affect net income and cash flow by approximately $3.5 million [465]. Share Repurchase - Shares repurchased in the three months ended October 31, 2024, included 261 Class A shares at an average price of $47.76, compared to 367 shares at $33.97 in the prior year [254]. Currency and Foreign Exchange - As of October 31, 2024, the company did not maintain any open foreign currency forward contracts, indicating a potential reduction in currency risk exposure [253]. - Foreign currency translation gains for the three and six months ended October 31, 2024, were approximately $27.9 million and $42.9 million, respectively, compared to losses of $(33.9) million and $(22.7) million for the same periods in 2023 [467]. Inventory and Liabilities - The estimated allowance for print book sales returns is based on historical return patterns and current market trends, impacting inventory and accrued royalties [469]. - As of October 31, 2024, the net increase in inventories was $7,839,000, while accrued royalties decreased by $(3,112,000) [470]. - Contract liabilities increased to $25,393,000 as of October 31, 2024, remaining unchanged from April 30, 2024 [470]. - The print book sales return reserve net liability balance was $(14,442,000) as of October 31, 2024, slightly decreasing from $(14,448,000) on April 30, 2024 [470]. Strategic Focus - The company’s strategies include expanding digital content and managing print revenue declines while driving growth in digital lines of business [237].
John Wiley & Sons(WLYB) - 2025 Q2 - Quarterly Report