John Wiley & Sons, Inc. (NYSE:JW.A) Q1 2020 Earnings Conference Call - Final Transcript

Sep 05, 2019 • 10:00 am ET


John Wiley & Sons, Inc. (NYSE:JW.A) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to Wiley's First Quarter Fiscal Year 2020 Earnings Call. As a reminder, this call is being recorded. At this time, I would like to introduce Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead.

Brian Campbell

Hello, everyone, and welcome to Wiley's First Quarter 2020 Earnings Update. With me in the room is Brian Napack, President and CEO; and John Kritzmacher, CFO and EVP Operations.

A few reminders to start. First, the call is being recorded and may include forward-looking statements. You shouldn't rely on these statements as actual results may differ materially and are subject to factors discussed in our SEC filings. The company does not undertake any obligations to update or revise forward-looking statements to reflect subsequent events or circumstances.

Second, Wiley provides non-GAAP measures as a supplement to evaluate underlying operating profitability and performance trends. Non-GAAP metrics, which generally exclude items that impact comparability, comprise the following: adjusted EPS, free cash flow less product development spending, adjusted operating income and margin, adjusted contribution to profit, adjusted EBITDA and results on a constant currency basis and results, excluding the impact of acquisitions.

These performance measures do not have standardized meanings described by US GAAP and therefore, may not be comparable to the calculation of similar measures used by other companies. They should not be viewed as alternatives to measures under GAAP. Also note, we abbreviate constant currency as CC.

Please see the reconciliation and explanations of all non-GAAP financial measures presented in the supplementary information included in our press release. Important to note, all variances in this presentation exclude the impact of currency unless otherwise noted.

For those who prefer to listen to the call over the phone but still want to view the slides. We recommend that you click on the gears icon located on the lower portion of the left hand side window and select live phone. [Technical Issue] as well as removes any potential background noise if you prefer to ask a question. After the call, a copy of the presentation and a playback of the webcast will be available on our Investor Relations web page.

I'll now turn the call over to Brian Napack, Wiley's President and CEO.

Brian Napack

Thank you, Brian. And thank you all for joining us today. I'm going to start with a brief refresher on the new segment definitions that we announced last quarter. Going forward, we will be reporting on the following three segments: Research Publishing and Platforms, Education Publishing and Professional Learning and Education Services. These segments align well with the way we manage the business and with our growth strategy.

Research Publishing and Platforms or Research is essentially unchanged from prior periods. It includes our research journal publishing, our author services and corporate services and Atypon, our research platforms business. For context, this segment accounted for over half of Wiley's total revenue this quarter.

The second segment, Education Publishing and Professional Learning, delivers educational products in the form of content and courseware, Test Prep programs,