On June 11 before the market opened, Wiley & Sons, Inc. (JWA, Financial) released its results for the fiscal 2020 fourth quarter ended April 30.
Key metrics
The Hoboken, New Jersey-based company recorded a loss per share of $2.83 in the fiscal fourth quarter. Similarly, the publisher’s revenue of $475 million was down 3% on a year-over-year basis.
President and CEO Brian Napack had the following to say:
“With the onset of the pandemic, our colleagues mobilized rapidly to help researchers rush critical peer-reviewed research to market and to enable our university partners to pivot quickly to online education. Their work has been essential to ensure that scientific inquiry and essential education continue unabated through this period of health, economic and social crisis.”
Segment details
In the Research Publishing & Platforms segment, revenue tumbled 3% in the fourth quarter as the coronavirus-related shutdowns led to delays in renewing subscription agreements. The decline was partially negated by growth in the open access research publishing and digital courseware. Adjusted Ebitda (at constant currency) remained flat as compared to the year-ago period.
Revenue dropped 17% year-over-year in the Academic & Professional Learning segment. Results were primarily weighed down by forced retail closures, which adversely impacted printing of books. In addition, postponement of on-site corporate training took a toll on revenue. Adjusted Ebitda dropped 49% at constant currency, reflecting investments in acquisitions and other growth initiatives.
In the Education Services segment, revenue rose 41% in the reported quarter thanks to a 16% organic growth in Online Program Management (OPM) services. Adjusted Ebitda surged to $11 million on account of business optimization savings.
Financials and share repurchases
At the end of the quarter, the company had $202 million in cash on hand. In addition, the company had more than $700 million available under its undrawn revolving credit facility.
The company has temporarily suspended its stock buyback program.
Looking ahead
Unable to predict the duration and impact of the pandemic on business, the company pulled its guidance for fiscal 2021.
Disclosure: I do not hold any positions in the stocks mentioned.
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