• Revenue: Reported a 6% decrease to $461 million, with digital products and services remaining a core focus.

• Operating Loss: Operating loss improved by $21 million, yet the company posted a GAAP operating loss of $46 million.

• EPS: GAAP EPS showed a loss of $2.08, while adjusted EPS at constant currency was $0.59, down 27%.

• Adjusted EBITDA: Slight increase to $92 million, up 1% at constant currency.

• Balance Sheet and Cash Flow: Net Debt-to-EBITDA Ratio improved to 1.9, but Free Cash Flow less Product Development Spending showed a year-to-date use of $45 million.

• Full Year Outlook: Adjusted Revenue and Adjusted EPS guidance raised, with revenue trending toward the mid-to-high end of the $1,580 to $1,630 million range.

• Warning! GuruFocus has detected 6 Warning Signs with WLY.

On March 7, 2024, John Wiley & Sons Inc (NYSE:WLY), a global leader in research and learning, released its 8-K filing, detailing the financial results for the third quarter ended January 31, 2024. The company, known for its digital products and tech-enabled services, reported a decrease in GAAP revenue by 6% to $461 million, primarily due to a completed divestiture and declines in other held-for-sale businesses. Despite this, the company's adjusted revenue at constant currency saw a slight increase of 1% to $403 million.

John Wiley & Sons Inc (NYSE:WLY) is navigating a period of transition, focusing on digital products and services which account for over 85% of its total revenue. The company has restructured its Education lines of business into two new segments: Academic, serving university customers, and Talent, focused on corporate training and upskilling solutions.

The company's GAAP results were significantly impacted by charges related to held-for-sale or sold assets, including goodwill and held-for-sale impairments of $82 million and $26 million, respectively, as well as a loss on a completed divestiture of $26 million. Restructuring charges of $15 million were also recorded. Adjusted EBITDA saw a modest increase, while adjusted EPS at constant currency decreased by 27% to $0.59, reflecting lower adjusted operating income, higher tax expense, and increased interest expense.

John Wiley & Sons Inc (NYSE:WLY) reported an operating loss of $46 million, an improvement from the previous year, and a GAAP EPS loss of $2.08, compared to a loss of $1.29 in the prior year. The adjusted EPS, which excludes held-for-sale or sold businesses, was down due to lower adjusted operating income and higher expenses.

The balance sheet showed a net debt-to-EBITDA ratio of 1.9, an improvement from 2.1 in the year-ago period. However, net cash provided by operating activities year-to-date was $24 million compared to $54 million in the prior year period, attributed to timing delays in closing journal subscription renewals, higher restructuring payments, and increased interest payments. Free cash flow less product development spending year-to-date was a use of $45 million, compared to a use of $22 million in the prior year period.