JOHN WILEY & SONS, INC. Item 2.02 Results of Operations and Financial Condition.
OnJune 15, 2022 ,John Wiley & Sons Inc. , aNew York corporation (the "Company"), issued a press release (Press Release) announcing the Company's financial results for the fourth quarter and fiscal year 2022, which was furnished as Exhibit 99.2 to the Current Report on Form 8-K filed onJune 15, 2022 (the "Original Form 8-K"). The Company is issuing a correction to the foreign exchange (FX) impact in its Fiscal 2023 outlook. Wiley now expects a more modest FX impact to Fiscal 2023 guidance - atJune 10, 2022 spot rates - after identifying an error in its currency mix evaluation for a foreign entity. Wiley's operational guidance (outlook at constant currency) remains unchanged.
REVISED FISCAL YEAR 2023 OUTLOOK
Metric FY23 FX Impact FY23 FX Impact** FY23
($millions, except EPS) Outlook* Old Outlook Corrected Outlook^
At Old Modified
constant (for FX)
currency
2,125
Revenue 2,175 - 2,100 - -
$ $2,215 $ (75 ) $ $2,140 $ (50) $ $2,165
Adjusted EBITDA 425 - 400 - Immaterial 425 -
$ $450 $ (25 ) $ $425 $ $450
Adjusted EPS 3.70 - 3.40 - Immaterial 3.70 -
$ $4.05 $ (0.30 ) $ $3.75 $ $4.05
Free Cash Flow 210 - 185 - Immaterial 210 -
$ $235 $ (25 ) $ $210 $ $235
*Based on Fiscal 2022 average rates of 1.15 euro and 1.36 British pound
**Variance between Fiscal 2022 average rates and spot rates as of June 10 :
1.06 euro and 1.24 British pound
^Fiscal 2023 outlook at spot rates as of June 10 . Wiley will be updating FX
impact in Q1 (September) and subsequent quarters
Except as expressly set forth above, this Amendment No. 1 on Form 8-K/A does
not, and does not purport to, amend, update or restate any other information in
the Press Release or Original Form 8-K or reflect any events that have occurred
after the filing of the Original Form 8-K. Accordingly, this Amendment No. 1 on
Form 8-K/A should be read in conjunction with the Original Form 8-K and the
Company's other filings with the SEC subsequent to the filing of the Original
Form 8-K, including any amendments thereto.
The information in this Item 2.02, (x) shall not be deemed to be "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section and (y) shall not be
incorporated by reference into any filing of the Company with the Securities and
Exchange Commission , whether made before or after the date hereof, regardless of
any general incorporation language in such filings (unless the Company
specifically states that the information in this particular report is
incorporated by reference). The furnishing of the information set forth in this
report is not intended to, and does not, constitute a determination or admission
as to the materiality or completeness of such information.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as "Adjusted EPS," "EBITDA", "Adjusted EBITDA," "Adjusted Contribution to Profit," "Adjusted Income before Taxes," "Adjusted Income Tax Provision," "Adjusted Effective Tax Rate," "Free Cash Flow less Product Development Spending," "organic revenue," and results on a Constant Currency basis to assess underlying business performance and trends. Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, and the impact of acquisitions provide a useful comparable basis to analyze operating results and earnings. See the reconciliations of non-GAAP financial measures and explanations of the uses of non- GAAP measures in the supplementary information. We have not provided our 2023 outlook for the most directly comparable US GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with US GAAP.
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company's educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the Company's ability to realize operating savings over time and in fiscal year 2023 in connection with our multi-year Business Optimization Program; (xi) the impact of COVID-19 on our operations, performance, and financial condition; and (xii) other factors detailed from time to time in the Company's filings with theSecurities and Exchange Commission . The Company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.
--------------------------------------------------------------------------------
© Edgar Online, source
