GAAP Measures Unaudited ($millions except for EPS) | Q2 2023 | Q2 2022 | Change | |||||||||||
Revenue | $514.8 | $533.0 | (3%) | |||||||||||
Operating Income | $57.4 | $73.9 | (22%) | |||||||||||
Diluted EPS | $0.68 | $0.99 | (31%) | |||||||||||
Non-GAAP Measures | Q2 2023 | Q2 2022 | Change | Change Constant Currency | ||||||||||
Revenue | $514.8 | $533.0 | (3%) | +1% | ||||||||||
Adjusted EBITDA | $123.8 | $127.1 | (3%) | (4%) | ||||||||||
Adjusted EPS | $1.20 | $1.29 | (7%) | (13%) |
Metric ($millions, except EPS) | FY22 Actual* | FY23 Outlook* Constant currency Original | FY23 Outlook* Constant currency Update | FY23 Outlook* Constant currency Current | ||||||||||
Revenue | $2,083 | $2,175 - $2,215 | Reduced | $2,110 - $2,150 | ||||||||||
Adjusted EBITDA | $433 | $425 - $450 | Reaffirmed | $425 - $450 | ||||||||||
Adjusted EPS | $4.16 | $3.70 - $4.05 | Reaffirmed | $3.70 - $4.05 | ||||||||||
Free Cash Flow | $223 | $210 - $235 | Reaffirmed | $210 - $235 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue, net | $ | 514,836 | $ | 533,003 | $ | 1,002,405 | $ | 1,021,391 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | 170,302 | 174,782 | 344,333 | 340,738 | |||||||||||||||||||
Operating and administrative expenses | 253,029 | 264,190 | 535,780 | 524,779 | |||||||||||||||||||
Restructuring and related charges (credits) | 13,956 | (1,333) | 36,397 | (1,609) | |||||||||||||||||||
Amortization of intangible assets | 20,110 | 21,476 | 45,421 | 42,627 | |||||||||||||||||||
Total costs and expenses | 457,397 | 459,115 | 961,931 | 906,535 | |||||||||||||||||||
Operating income | 57,439 | 73,888 | 40,474 | 114,856 | |||||||||||||||||||
As a % of revenue | 11.2 | % | 13.9 | % | 4.0 | % | 11.2 | % | |||||||||||||||
Interest expense | (9,332) | (4,997) | (15,664) | (9,636) | |||||||||||||||||||
Foreign exchange transaction gains (losses) | 478 | (1,370) | (138) | (1,000) | |||||||||||||||||||
(Loss) gain on sale of certain assets | — | (56) | — | 3,694 | |||||||||||||||||||
Other (expense) income, net | (255) | 3,150 | 271 | 6,703 | |||||||||||||||||||
Income before taxes | 48,330 | 70,615 | 24,943 | 114,617 | |||||||||||||||||||
Provision for income taxes | 10,137 | 14,648 | 4,585 | 44,820 | |||||||||||||||||||
Effective tax rate | 21.0 | % | 20.7 | % | 18.4 | % | 39.1 | % | |||||||||||||||
Net income | $ | 38,193 | $ | 55,967 | $ | 20,358 | $ | 69,797 | |||||||||||||||
As a % of revenue | 7.4 | % | 10.5 | % | 2.0 | % | 6.8 | % | |||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | 0.69 | $ | 1.00 | $ | 0.37 | $ | 1.25 | |||||||||||||||
Diluted | $ | 0.68 | $ | 0.99 | $ | 0.36 | $ | 1.24 | |||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||||||||
Basic | 55,622 | 55,806 | 55,679 | 55,833 | |||||||||||||||||||
Diluted | 56,195 | 56,388 | 56,326 | 56,477 |
Notes: | ||
(1) The supplementary information included in this press release for the three and six months ended October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | ||
(2) All amounts are approximate due to rounding. |
Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS | |||||||||||||||||||||||
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
US GAAP Earnings Per Share - Diluted | $ | 0.68 | $ | 0.99 | $ | 0.36 | $ | 1.24 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring and related charges (credits) | 0.19 | (0.02) | 0.49 | (0.02) | |||||||||||||||||||
Foreign exchange losses (gains) on intercompany transactions | 0.03 | 0.01 | 0.04 | — | |||||||||||||||||||
Amortization of acquired intangible assets (3) | 0.30 | 0.31 | 0.67 | 0.60 | |||||||||||||||||||
Loss (gain) on sale of certain assets (4) | — | — | — | (0.05) | |||||||||||||||||||
Income tax adjustments (5) | — | — | — | 0.37 | |||||||||||||||||||
Non-GAAP Adjusted Earnings Per Share - Diluted | $ | 1.20 | $ | 1.29 | $ | 1.56 | $ | 2.14 | |||||||||||||||
Reconciliation of US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes | |||||||||||||||||||||||
(amounts in thousands) | Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
US GAAP Income Before Taxes | $ | 48,330 | $ | 70,615 | $ | 24,943 | $ | 114,617 | |||||||||||||||
Pretax Impact of Adjustments: | |||||||||||||||||||||||
Restructuring and related charges (credits) | 13,956 | (1,333) | 36,397 | (1,609) | |||||||||||||||||||
Foreign exchange losses (gains) on intercompany transactions | 2,654 | 567 | 3,320 | (228) | |||||||||||||||||||
Amortization of acquired intangible assets (3) | 21,185 | 22,608 | 47,570 | 44,892 | |||||||||||||||||||
Loss (gain) on sale of certain assets (4) | — | 56 | — | (3,694) | |||||||||||||||||||
Non-GAAP Adjusted Income Before Taxes | $ | 86,125 | $ | 92,513 | $ | 112,230 | $ | 153,978 | |||||||||||||||
Reconciliation of US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate | |||||||||||||||||||||||
US GAAP Income Tax Provision | $ | 10,137 | $ | 14,648 | $ | 4,585 | $ | 44,820 | |||||||||||||||
Income Tax Impact of Adjustments (6) | |||||||||||||||||||||||
Restructuring and related charges (credits) | 3,422 | (277) | 8,939 | (232) | |||||||||||||||||||
Foreign exchange losses (gains) on intercompany transactions | 694 | 120 | 869 | 19 | |||||||||||||||||||
Amortization of acquired intangible assets (3) | 4,388 | 5,420 | 10,220 | 10,263 | |||||||||||||||||||
Loss (gain) on sale of certain assets (4) | — | 14 | — | (922) | |||||||||||||||||||
Income Tax Adjustments: | |||||||||||||||||||||||
Impact of increase in UK statutory rate on deferred tax balances (5) | — | — | — | (20,726) | |||||||||||||||||||
Non-GAAP Adjusted Income Tax Provision | $ | 18,641 | $ | 19,925 | $ | 24,613 | $ | 33,222 | |||||||||||||||
US GAAP Effective Tax Rate | 21.0 | % | 20.7 | % | 18.4 | % | 39.1 | % | |||||||||||||||
Non-GAAP Adjusted Effective Tax Rate | 21.6 | % | 21.5 | % | 21.9 | % | 21.6 | % |
Notes: | ||
(1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three and six months ended October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | ||
(2) All amounts are approximate due to rounding. | ||
(3) Reflects the amortization of intangible assets established on the opening balance sheet for an acquired business. This includes the amortization of intangible assets such as developed technology, customer relationships, tradenames, etc., which is reflected in the "Amortization of intangible assets" line in the Condensed Consolidated Statements of Net Income. It also includes the amortization of acquired product development assets, which is reflected in "Cost of sales" in the Condensed Consolidated Statements of Net Income. | ||
(4) The gain on sale of certain assets is due to the sale of our world languages product portfolio which was included in our Academic & Professional Learning segment, and resulted in a pretax gain of approximately $3.7 million during the six months ended October 31, 2021. | ||
(5) In the three months ended July 31, 2021, the UK enacted legislation that increased its statutory rate from 19% to 25% effective April 1, 2023. This resulted in a $20.7 million non-cash deferred tax expense from the re-measurement of the Company’s applicable UK net deferred tax liabilities during the three months ended July 31, 2021. These adjustments impacted deferred taxes. | ||
(6) For the three and six months ended October 31, 2022 and 2021, substantially all of the tax impact was from deferred taxes. |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net Income | $ | 38,193 | $ | 55,967 | $ | 20,358 | $ | 69,797 | |||||||||||||||
Interest expense | 9,332 | 4,997 | 15,664 | 9,636 | |||||||||||||||||||
Provision for income taxes | 10,137 | 14,648 | 4,585 | 44,820 | |||||||||||||||||||
Depreciation and amortization | 52,421 | 54,555 | 110,700 | 109,121 | |||||||||||||||||||
Non-GAAP EBITDA | 110,083 | 130,167 | 151,307 | 233,374 | |||||||||||||||||||
Restructuring and related charges (credits) | 13,956 | (1,333) | 36,397 | (1,609) | |||||||||||||||||||
Foreign exchange transaction (gains) losses | (478) | 1,370 | 138 | 1,000 | |||||||||||||||||||
Loss (gain) on sale of certain assets | — | 56 | — | (3,694) | |||||||||||||||||||
Other expense (income), net | 255 | (3,150) | (271) | (6,703) | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 123,816 | $ | 127,110 | $ | 187,571 | $ | 222,368 | |||||||||||||||
Adjusted EBITDA Margin | 24.0 | % | 23.8 | % | 18.7 | % | 21.8 | % |
Notes: | ||
(1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three and six months ended October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
% Change | |||||||||||||||||||||||
Three Months Ended October 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2022 | 2021 | Reported | Constant Currency | ||||||||||||||||||||
Research (2): | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
Research Publishing (3) | $ | 232,641 | $ | 238,853 | -3 | % | 2 | % | |||||||||||||||
Research Solutions (3) | 38,718 | 36,301 | 7 | % | 11 | % | |||||||||||||||||
Total Revenue, net | $ | 271,359 | $ | 275,154 | -1 | % | 3 | % | |||||||||||||||
Contribution to Profit | $ | 73,279 | $ | 77,031 | -5 | % | -8 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges | 1,179 | 22 | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | 74,458 | $ | 77,053 | -3 | % | -7 | % | |||||||||||||||
Depreciation and amortization | 23,384 | 23,464 | 0 | % | -4 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 97,842 | $ | 100,517 | -3 | % | -4 | % | |||||||||||||||
Adjusted EBITDA margin | 36.1 | % | 36.5 | % | |||||||||||||||||||
Academic & Professional Learning: | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
Education Publishing | $ | 86,200 | $ | 98,581 | -13 | % | -10 | % | |||||||||||||||
Professional Learning | 66,441 | 77,948 | -15 | % | -11 | % | |||||||||||||||||
Total Revenue, net | $ | 152,641 | $ | 176,529 | -14 | % | -10 | % | |||||||||||||||
Contribution to Profit | $ | 30,411 | $ | 41,071 | -26 | % | -24 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 3,439 | (465) | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | 33,850 | $ | 40,606 | -17 | % | -15 | % | |||||||||||||||
Depreciation and amortization | 16,152 | 18,148 | 11 | % | 7 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 50,002 | $ | 58,754 | -15 | % | -12 | % | |||||||||||||||
Adjusted EBITDA margin | 32.8 | % | 33.3 | % | |||||||||||||||||||
Education Services: | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
University Services (4) | $ | 57,759 | $ | 58,630 | -1 | % | -1 | % | |||||||||||||||
Talent Development Services (4) | 33,077 | 22,690 | 46 | % | 61 | % | |||||||||||||||||
Total Revenue, net | $ | 90,836 | $ | 81,320 | 12 | % | 17 | % | |||||||||||||||
Contribution to Profit | $ | 6,082 | $ | 721 | # | # | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges | 506 | 6 | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | 6,588 | $ | 727 | # | # | |||||||||||||||||
Depreciation and amortization | 8,975 | 8,813 | -2 | % | -3 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 15,563 | $ | 9,540 | 63 | % | 69 | % | |||||||||||||||
Adjusted EBITDA margin | 17.1 | % | 11.7 | % | |||||||||||||||||||
Corporate Expenses: | $ | (52,333) | $ | (44,935) | -16 | % | -22 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 8,832 | (896) | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | (43,501) | $ | (45,831) | 5 | % | 0 | % | |||||||||||||||
Depreciation and amortization | 3,910 | 4,130 | 5 | % | 2 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | (39,591) | $ | (41,701) | 5 | % | 0 | % | |||||||||||||||
Consolidated Results: | |||||||||||||||||||||||
Revenue, net | $ | 514,836 | $ | 533,003 | -3 | % | 1 | % | |||||||||||||||
Operating Income | $ | 57,439 | $ | 73,888 | -22 | % | -27 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 13,956 | (1,333) | # | # | |||||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 71,395 | $ | 72,555 | -2 | % | -6 | % | |||||||||||||||
Depreciation and amortization | 52,421 | 54,555 | 4 | % | 1 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 123,816 | $ | 127,110 | -3 | % | -4 | % | |||||||||||||||
Adjusted EBITDA margin | 24.0 | % | 23.8 | % |
Notes: | ||
(1) The supplementary information included in this press release for the three and six months ended October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | ||
(2) The Research segment was previously referred to as Research Publishing & Platforms. | ||
(3) As previously announced in May 2022, our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. The revenue was $24.0 million for the three months ended October 31, 2021, $44.1 million for the six months ended October 2021, $93.3 million for the year ended April 30, 2022, and $80.3 million for the year ended April 30, 2021. | ||
(4) In May 2022, we moved the WileyNXT product offering from Talent Development Services to University Services and the prior period results have been included in University Services. The revenue was $0.5 million and $1.1 million for the three and six months ended October 31, 2021, respectively. There were no changes to the total Education Services segment or our total consolidated financial results. | ||
(5) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Education Services segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted, and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. | ||
# Variance greater than 100% |
% Change | |||||||||||||||||||||||
Six Months Ended October 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2022 | 2021 | Reported | Constant Currency | ||||||||||||||||||||
Research (2): | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
Research Publishing (3) | $ | 472,164 | $ | 482,137 | -2 | % | 2 | % | |||||||||||||||
Research Solutions (3) | 74,108 | 67,773 | 9 | % | 14 | % | |||||||||||||||||
Total Revenue, net | $ | 546,272 | $ | 549,910 | -1 | % | 3 | % | |||||||||||||||
Contribution to Profit | $ | 142,302 | $ | 155,839 | -9 | % | -11 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges | 1,260 | 238 | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | 143,562 | $ | 156,077 | -8 | % | -10 | % | |||||||||||||||
Depreciation and amortization | 47,185 | 47,226 | 0 | % | -3 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 190,747 | $ | 203,303 | -6 | % | -7 | % | |||||||||||||||
Adjusted EBITDA margin | 34.9 | % | 37.0 | % | |||||||||||||||||||
Academic & Professional Learning: | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
Education Publishing | $ | 149,256 | $ | 164,961 | -10 | % | -6 | % | |||||||||||||||
Professional Learning | 136,344 | 150,832 | -10 | % | -6 | % | |||||||||||||||||
Total Revenue, net | $ | 285,600 | $ | 315,793 | -10 | % | -6 | % | |||||||||||||||
Contribution to Profit | $ | 25,996 | $ | 49,223 | -47 | % | -45 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 9,229 | (294) | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | 35,225 | $ | 48,929 | -28 | % | -26 | % | |||||||||||||||
Depreciation and amortization | 32,684 | 36,512 | 10 | % | 7 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 67,909 | $ | 85,441 | -21 | % | -18 | % | |||||||||||||||
Adjusted EBITDA margin | 23.8 | % | 27.1 | % | |||||||||||||||||||
Education Services: | |||||||||||||||||||||||
Revenue, net | |||||||||||||||||||||||
University Services (4) | $ | 105,570 | $ | 113,598 | -7 | % | -6 | % | |||||||||||||||
Talent Development Services (4) | 64,963 | 42,090 | 54 | % | 68 | % | |||||||||||||||||
Total Revenue, net | $ | 170,533 | $ | 155,688 | 10 | % | 14 | % | |||||||||||||||
Contribution to Profit | $ | (11,087) | $ | (1,106) | # | # | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 1,339 | (28) | # | # | |||||||||||||||||||
Accelerated amortization of an intangible asset (5) | 4,594 | — | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | (5,154) | $ | (1,134) | # | # | |||||||||||||||||
Depreciation and amortization | 18,171 | 17,116 | -6 | % | -7 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 13,017 | $ | 15,982 | -19 | % | -14 | % | |||||||||||||||
Adjusted EBITDA margin | 7.6 | % | 10.3 | % | |||||||||||||||||||
Corporate Expenses: | $ | (116,737) | $ | (89,100) | -31 | % | -36 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 24,569 | (1,525) | # | # | |||||||||||||||||||
Non-GAAP Adjusted Contribution to Profit | $ | (92,168) | $ | (90,625) | -2 | % | -7 | % | |||||||||||||||
Depreciation and amortization | 8,066 | 8,267 | 2 | % | 0 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | (84,102) | $ | (82,358) | -2 | % | -7 | % | |||||||||||||||
Consolidated Results: | |||||||||||||||||||||||
Revenue, net | $ | 1,002,405 | $ | 1,021,391 | -2 | % | 2 | % | |||||||||||||||
Operating Income | $ | 40,474 | $ | 114,856 | -65 | % | -70 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring charges (credits) | 36,397 | (1,609) | # | # | |||||||||||||||||||
Accelerated amortization of an intangible asset (5) | 4,594 | — | # | # | |||||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 81,465 | $ | 113,247 | -28 | % | -33 | % | |||||||||||||||
Depreciation and amortization | 106,106 | 109,121 | 3 | % | 0 | % | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 187,571 | $ | 222,368 | -16 | % | -17 | % | |||||||||||||||
Adjusted EBITDA margin | 18.7 | % | 21.8 | % |
# Variance greater than 100% |
October 31, 2022 | April 30, 2022 | ||||||||||
Assets: | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 118,423 | $ | 100,397 | |||||||
Accounts receivable, net | 260,026 | 331,960 | |||||||||
Inventories, net | 34,447 | 36,585 | |||||||||
Prepaid expenses and other current assets | 70,098 | 81,924 | |||||||||
Total current assets | 482,994 | 550,866 | |||||||||
Technology, property and equipment, net | 249,922 | 271,572 | |||||||||
Intangible assets, net | 860,576 | 931,429 | |||||||||
Goodwill | 1,268,312 | 1,302,142 | |||||||||
Operating lease right-of-use assets | 93,334 | 111,719 | |||||||||
Other non-current assets | 173,233 | 193,967 | |||||||||
Total assets | $ | 3,128,371 | $ | 3,361,695 | |||||||
Liabilities and shareholders' equity: | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 46,250 | $ | 77,438 | |||||||
Accrued royalties | 101,598 | 101,596 | |||||||||
Short-term portion of long-term debt | 25,000 | 18,750 | |||||||||
Contract liabilities | 263,821 | 538,126 | |||||||||
Accrued employment costs | 84,333 | 117,121 | |||||||||
Short-term portion of operating lease liabilities | 19,043 | 20,576 | |||||||||
Other accrued liabilities | 94,532 | 95,812 | |||||||||
Total current liabilities | 634,577 | 969,419 | |||||||||
Long-term debt | 978,683 | 768,277 | |||||||||
Accrued pension liability | 75,668 | 78,622 | |||||||||
Deferred income tax liabilities | 157,048 | 180,065 | |||||||||
Operating lease liabilities | 120,559 | 132,541 | |||||||||
Other long-term liabilities | 84,029 | 90,502 | |||||||||
Total liabilities | 2,050,564 | 2,219,426 | |||||||||
Shareholders' equity | 1,077,807 | 1,142,269 | |||||||||
Total liabilities and shareholders' equity | $ | 3,128,371 | $ | 3,361,695 |
Notes: | ||
(1) The supplementary information included in this press release for October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
Six Months Ended October 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | 20,358 | $ | 69,797 | |||||||
Amortization of intangible assets | 45,421 | 42,627 | |||||||||
Amortization of product development assets | 16,452 | 18,088 | |||||||||
Depreciation and amortization of technology, property, and equipment | 48,827 | 48,406 | |||||||||
Other noncash charges | 56,601 | 56,311 | |||||||||
Net change in operating assets and liabilities | (263,855) | (310,851) | |||||||||
Net cash used in operating activities | (76,196) | (75,622) | |||||||||
Investing activities: | |||||||||||
Additions to technology, property, and equipment | (38,530) | (37,676) | |||||||||
Product development spending | (11,445) | (13,001) | |||||||||
Businesses acquired in purchase transactions, net of cash acquired | (96) | (13,615) | |||||||||
Proceeds related to the sale of certain assets | 40 | 3,375 | |||||||||
Acquisitions of publication rights and other | 1,738 | (1,654) | |||||||||
Net cash used in investing activities | (48,293) | (62,571) | |||||||||
Financing activities: | |||||||||||
Net debt borrowings | 228,386 | 227,476 | |||||||||
Cash dividends | (38,749) | (38,619) | |||||||||
Purchases of treasury shares | (17,500) | (17,367) | |||||||||
Other | (20,534) | (24,444) | |||||||||
Net cash provided by financing activities | 151,603 | 147,046 | |||||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (8,784) | (1,742) | |||||||||
Change in cash, cash equivalents and restricted cash for period | 18,330 | 7,111 | |||||||||
Cash, cash equivalents and restricted cash - beginning | 100,727 | 94,359 | |||||||||
Cash, cash equivalents and restricted cash - ending | $ | 119,057 | $ | 101,470 | |||||||
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING (2) | |||||||||||
Six Months Ended October 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (76,196) | $ | (75,622) | |||||||
Less: Additions to technology, property, and equipment | (38,530) | (37,676) | |||||||||
Less: Product development spending | (11,445) | (13,001) | |||||||||
Free cash flow less product development spending | $ | (126,171) | $ | (126,299) |
Notes: | ||
(1) The supplementary information included in this press release for the six months ended October 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | ||
(2) See Explanation of Usage of Non-GAAP Performance Measures included in this supplemental information. |