[March 11, 2014] |
|
Wiley Reports Third Quarter Fiscal 2014 Results
HOBOKEN, N.J. --(Business Wire)--
John Wiley & Sons, Inc. (NYSE: JWa and JWb), a global provider of
knowledge and knowledge-enabled services that improve outcomes in
research, professional practice, and education, today announced the
following results for the third quarter of fiscal year 2014, ending
January 31, 2014:
|
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|
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|
|
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|
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|
Change
|
$ millions
|
|
|
|
FY14
|
|
|
|
FY13
|
|
|
|
Excluding FX
|
|
|
|
Including FX
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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|
ADJUSTED
|
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|
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|
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|
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Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
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|
$458
|
|
|
|
$459
|
|
|
|
1
|
%
|
|
|
|
0
|
%
|
Nine Months
|
|
|
|
$1,318
|
|
|
|
$1,275
|
|
|
|
4
|
%
|
|
|
|
3
|
%
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
|
$0.93
|
|
|
|
$0.93
|
|
|
|
0
|
%
|
|
|
|
0
|
%
|
Nine Months
|
|
|
|
$2.28
|
|
|
|
$2.20
|
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4
|
%
|
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GAAP
|
|
|
|
|
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|
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|
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Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
|
$458
|
|
|
|
$472
|
|
|
|
(2
|
%)
|
|
|
|
(3
|
%)
|
Nine Months
|
|
|
|
$1,318
|
|
|
|
$1,315
|
|
|
|
1
|
%
|
|
|
|
0
|
%
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
|
$0.88
|
|
|
|
$0.95
|
|
|
|
(7
|
%)
|
|
|
|
(7
|
%)
|
Nine Months
|
|
|
|
$2.10
|
|
|
|
$2.26
|
|
|
|
(7
|
%)
|
|
|
|
(7
|
%)
|
|
|
|
|
|
|
|
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Please see the attached financial schedules for more detail
Business Summary
"Through three quarters, research journal performance has been
favorable, with 4% revenue growth in journal subscriptions, strong
revenue growth in author-funded open access, and a solid start to
subscription billings for volume year 2014," said Steve Smith, President
and CEO of Wiley. "In addition, professional and education solutions,
including talent management, WileyPLUS, and online program management,
continue to show strong double-digit revenue growth."
With one quarter remaining in the fiscal year, the company reaffirmed
its full-year guidance for low single-digit adjusted revenue growth and
adjusted EPS of $2.85 to $2.95.
Third Quarter Highlights
-
Adjusted revenue on a constant currency basis rose 1% over
prior year to $458 million, excluding the prior year operating
results of the divested consumer publishing programs ($13.9 million of
revenue in Q3 FY13). Revenue in the year-ago period included a $4
million favorable impact from shipments delayed into that quarter due
to distribution disruptions caused by Hurricane Sandy. Revenue fell 3%
on a US GAAP basis.
-
Adjusted earnings per share (EPS) was even at $0.93. Adjusted
EPS for the current quarter excludes restructuring charges of $4.3
million ($0.05/share), and the prior year period excludes the
operating results of the divested consumer publishing program of $2.0
million ($0.02/share). Adjusted revenue and margin growth,
restructuring and other savings, and lower income taxes were offset by
higher incentive compensation accruals, a 4% increase in technology
expense, and a lower property tax incentive. US GAAP EPS for the
quarter was $0.88 per share compared to $0.95 per share in the prior
period.
-
Free Cash Flow of $84.6 million for the first nine months was
roughly even with the prior year period. Lower disputed income tax
deposits paid to the German government were offset by lower cash
collections in the quarter and higher payments related to the
restructuring program as compared to the year-ago period.
-
Restructuring update: Wiley recorded restructuring charges of
$4.3 million this quarter related to its previously announced
restructuring program. Including this charge, Wiley has recorded $51.8
million in restructuring charges since the program was announced in
January 2013. The Company expects to record additional restructuring
charges in the fourth quarter of approximately $10 million. As of
January 31, 2014, Wiley had developed and approved plans to achieve
$75 million of its $80 million FY15 run-rate savings goal, with more
than half of the $80 million expected to improve earnings in FY15 and
the remainder reinvested into the business.
-
Share repurchases: In the quarter, Wiley repurchased 375K
shares for $20.0 million, an average price of $53.30 per share. Fiscal
year-to-date, the Company has repurchased 810K shares for $38.5
million, an average price of $47.53. As of January 31, Wiley had
nearly 3.7 million shares remaining in the program.
Adjusted Results
The Company provides financial measures referred to as "adjusted"
revenue, contribution to profit, and EPS, which exclude restructuring
charges, operating results from divestitures, impairment charges, gain
on the sale of publishing programs, and the deferred tax benefits from
the changes in UK income tax rates. Variances to adjusted revenue,
contribution to profit, and EPS exclude FX impacts unless otherwise
noted. Management believes the exclusion of such items provides
additional information to facilitate the analysis of results. These
non-GAAP measures are not intended to replace the financial results
reported in accordance with GAAP.
Foreign Exchange ("FX")
Throughout this report, references are made to variances "excluding
foreign exchange" or "on a constant currency basis"; such amounts
exclude both period-over-period currency translation effects and
transactional gains and losses.
RESEARCH
-
Revenue: Third quarter revenue on a constant currency basis
rose 3% to $248.8 million, driven by journal subscription revenue
growth of 7%, which included favorable impacts from production timing.
Also contributing were digital book sales (+12%) and open access (+$3
million). Partially offsetting this growth was a 16% decline in print
book revenue. For the first nine months, revenue on a constant
currency basis was up 3%, with journal subscription revenue up 4%.
-
Adjusted Contribution to Profit: Third quarter adjusted
contribution to profit (after allocated shared services and
administrative costs) grew 2% on a constant currency basis to $69.0
million, with higher society royalty costs and accrued incentive
compensation partially offsetting revenue growth. For the first nine
months, adjusted contribution to profit (after shared services and
administrative costs) grew 5% to $210.8 million, excluding the impact
of foreign exchange.
-
Calendar Year 2014 Journal Subscriptions: At the end of
January, calendar year 2014 journal subscriptions were up 4% with 81%
of targeted business closed for the 2014 volume year.
-
Society Business: Two new society journals were signed in the
quarter with combined annual revenue of $1.7 million; 50 were renewed
worth approximately $19 million annually; and eight journals with
combined annual revenue of $5.3 million were not renewed, primarily
due to the conclusion of one society relationship.
-
Other Key Developments: In January, Wiley announced a
partnership with technology company Knode to provide customized
portals to learned societies and other academic organizations
worldwide. Wiley's cloud-based portal is populated with more than 20
million documents and millions of expert profiles. Researchers are
using Knode to find experts, identify and connect with collaborators,
and promote their expertise to the world. For society executives and
institutional research managers, custom analytics provide aggregated
views of research expertise and output.
PROFESSIONAL DEVELOPMENT
-
Adjusted Revenue: Third quarter adjusted revenue declined 5% to
$94.2 million, excluding FX and revenue from the divested consumer
publishing programs ($13.9 million) in the prior year period. Adjusted
revenue performance was driven by a decline in print books (-9%),
particularly due to lower demand for technology titles and the
discontinuation of certain low-margin non-divested consumer titles,
which offset solid growth in online training and assessment (+20%) and
digital books (+9%). Revenue in the year-ago period included a $2
million favorable impact from shipments delayed into that quarter due
to distribution disruptions caused by Hurricane Sandy. For the first
nine months, adjusted revenue on a constant currency basis was down 1%.
-
Adjusted Contribution to Profit: Third quarter adjusted
contribution to profit (after allocated shared service and
administrative costs) grew 21% to $11.9 million due to restructuring
savings and higher margin digital revenue, which offset the revenue
decline in print books. Adjusted contribution to profit excludes
restructuring charges and the operating results from the divested
consumer assets in the prior year. For the first nine months, adjusted
contribution to profit (after shared services and administrative
costs) grew 48% to $22.8 million, excluding the impact of foreign
exchange.
-
Acquisitions: In January, Wiley acquired the assets of Elan
Guides, an early-stage CFA test preparation company. Elan's CFA
test preparation materials will be incorporated into Wiley's test
preparation platform for business and finance professionals. Terms
were not disclosed.
EDUCATION
-
Revenue: Third quarter revenue was $114.9 million, essentially
even on a constant currency basis. Revenue growth from WileyPLUS
(+20%), Deltak (+12%), and Binder and Custom Products (+3%) offset a
decline in both print textbooks (-8%) and digital books (-8%). Note
that Deltak's third quarter 2013 reported results included an extra
week carried forward from the acquisition closing date, which occurred
just prior to the end of the second quarter 2013. Excluding the impact
of that carry-over period, Deltak revenue increased by approximately
20% as compared to the year-ago quarter. Education revenue in the
year-ago period also included a $2 million favorable impact from
shipments delayed into that quarter due to disruptions caused by
Hurricane Sandy, and earlier ordering from Australian schools that
benefitted the second quarter of 2014. Digital textbook growth for the
period was unfavorably impacted by weakened enrollment at for-profit
institutions. For the first nine months, Education revenue overall
increased 12% on a constant currency basis to $299.7 million,
primarily due to the first half contribution from Deltak ($31 million).
-
Adjusted Contribution to Profit: Third quarter adjusted
contribution to profit (after allocated shared service and
administrative costs) declined 9% to $30.5 million, reflecting changes
in revenue mix and higher accrued incentive costs. For the first nine
months, adjusted contribution to profit (after shared services and
administrative costs) increased 2% to $59.4 million, excluding the
impact of foreign exchange.
-
Online Program Management (OPM): Deltak secured two university
partners in the quarter, bringing the total number of institutions
under contract to 36. As of January 31, 2014, Deltak had 120 programs
generating revenue and 45 programs under contract and in development
but not yet generating revenue.
(Please see the attached tables for more information, including
Quarter and Year-to-Date Segment Revenue Statistics by Product/Service
and Subject Category)
Earnings Conference Call
-
Scheduled for today, March 11, at 10:00 a.m. (EDT)
-
Access the webcast at www.wiley.com>
Investor Relations> Events and Presentations, or http://www.wiley.com/WileyCDA/Section/id-370238.html
-
U.S. callers, please dial (888) 337-8198 and enter the participant
code 9980621#
-
International callers, please dial (719) 325-2464 and enter the
participant code 9980621#
-
An archive of the webcast will be available for a period of up to 14
days
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This release 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 and (x) other
factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no obligation
to update or revise any such forward-looking statements to reflect
subsequent events or circumstances.
About Wiley
Wiley is a global provider of knowledge and knowledge-enabled services
that improve outcomes in areas of research, professional practice, and
education. Through the Research segment, the Company provides
digital and print scientific, technical, medical, and scholarly
journals, reference works, books, database services, and advertising.
The Professional Development segment provides digital and print
books, online assessment and training services, and test prep and
certification. In Education, Wiley provides education solutions
including online program management services for higher education
institutions and course management tools for instructors and students,
as well as print and digital content.
|
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|
|
JOHN WILEY & SONS, INC.
|
UNAUDITED SUMMARY OF OPERATIONS
|
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
|
JANUARY 31, 2014 AND 2013
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER ENDED JANUARY 31,
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
US GAAP
|
|
Adjustments (A,B)
|
|
Adjusted
|
|
US GAAP
|
|
Adjustments (B-D)
|
|
Adjusted
|
|
US GAAP
|
|
Adjusted excl. FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
457,933
|
|
|
-
|
|
|
457,933
|
|
|
472,435
|
|
|
(13,858
|
)
|
|
458,577
|
|
|
-3
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
130,563
|
|
|
-
|
|
|
130,563
|
|
|
141,794
|
|
|
(9,143
|
)
|
|
132,651
|
|
|
-8
|
%
|
|
-1
|
%
|
Operating and Administrative
|
|
|
238,569
|
|
|
-
|
|
|
238,569
|
|
|
235,857
|
|
|
(2,678
|
)
|
|
233,179
|
|
|
1
|
%
|
|
3
|
%
|
Restructuring Charges (A)
|
|
|
4,256
|
|
|
(4,256
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
Amortization of Intangibles
|
|
|
11,165
|
|
|
-
|
|
|
11,165
|
|
|
11,158
|
|
|
-
|
|
|
11,158
|
|
|
0
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costs and Expenses
|
|
|
384,553
|
|
|
(4,256
|
)
|
|
380,297
|
|
|
388,809
|
|
|
(11,821
|
)
|
|
376,988
|
|
|
-1
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
73,380
|
|
|
4,256
|
|
|
77,636
|
|
|
83,626
|
|
|
(2,037
|
)
|
|
81,589
|
|
|
-12
|
%
|
|
-3
|
%
|
Operating Margin
|
|
|
16.0
|
%
|
|
|
|
17.0
|
%
|
|
17.7
|
%
|
|
|
|
17.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
(3,485
|
)
|
|
-
|
|
|
(3,485
|
)
|
|
(3,827
|
)
|
|
-
|
|
|
(3,827
|
)
|
|
-9
|
%
|
|
-9
|
%
|
Foreign Exchange Gain (Loss)
|
|
|
29
|
|
|
-
|
|
|
29
|
|
|
(1,147
|
)
|
|
-
|
|
|
(1,147
|
)
|
|
-103
|
%
|
|
2
|
%
|
Interest Income and Other
|
|
|
466
|
|
|
-
|
|
|
466
|
|
|
342
|
|
|
-
|
|
|
342
|
|
|
36
|
%
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Taxes
|
|
|
70,390
|
|
|
4,256
|
|
|
74,646
|
|
|
78,994
|
|
|
(2,037
|
)
|
|
76,957
|
|
|
-11
|
%
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (Benefit) for Income Taxes (A-D)
|
|
|
17,901
|
|
|
1,347
|
|
|
19,248
|
|
|
21,894
|
|
|
(775
|
)
|
|
21,119
|
|
|
-18
|
%
|
|
-9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
52,489
|
|
|
2,909
|
|
|
55,398
|
|
|
57,100
|
|
|
(1,262
|
)
|
|
55,838
|
|
|
-8
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share- Diluted
|
|
$
|
0.88
|
|
|
0.05
|
|
|
0.93
|
|
|
0.95
|
|
|
(0.02
|
)
|
|
0.93
|
|
|
-7
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares - Diluted
|
|
|
59,713
|
|
|
59,713
|
|
|
59,713
|
|
|
60,254
|
|
|
60,254
|
|
|
60,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED JANUARY 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
US GAAP
|
|
Adjustments (A,B,E)
|
|
Adjusted
|
|
US GAAP
|
|
Adjustments (A-E)
|
|
Adjusted
|
|
US GAAP
|
|
Adjusted excl. FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,318,106
|
|
|
-
|
|
|
1,318,106
|
|
|
1,314,924
|
|
|
(40,359
|
)
|
|
1,274,565
|
|
|
0
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
380,706
|
|
|
-
|
|
|
380,706
|
|
|
398,592
|
|
|
(25,505
|
)
|
|
373,087
|
|
|
-4
|
%
|
|
3
|
%
|
Operating and Administrative
|
|
|
713,090
|
|
|
-
|
|
|
713,090
|
|
|
689,833
|
|
|
(12,118
|
)
|
|
677,715
|
|
|
3
|
%
|
|
6
|
%
|
Restructuring Charges (A)
|
|
|
27,327
|
|
|
(27,327
|
)
|
|
-
|
|
|
4,841
|
|
|
(4,841
|
)
|
|
-
|
|
|
|
|
|
Impairment Charges (B)
|
|
|
4,786
|
|
|
(4,786
|
)
|
|
-
|
|
|
15,521
|
|
|
(15,521
|
)
|
|
-
|
|
|
|
|
|
Amortization of Intangibles
|
|
|
33,066
|
|
|
-
|
|
|
33,066
|
|
|
30,404
|
|
|
(53
|
)
|
|
30,351
|
|
|
9
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costs and Expenses
|
|
|
1,158,975
|
|
|
(32,113
|
)
|
|
1,126,862
|
|
|
1,139,191
|
|
|
(58,038
|
)
|
|
1,081,153
|
|
|
2
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of Travel Publishing Program (C)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,829
|
|
|
(9,829
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
159,131
|
|
|
32,113
|
|
|
191,244
|
|
|
185,562
|
|
|
7,850
|
|
|
193,412
|
|
|
-14
|
%
|
|
0
|
%
|
Operating Margin
|
|
|
12.1
|
%
|
|
|
|
14.5
|
%
|
|
14.1
|
%
|
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
(10,348
|
)
|
|
-
|
|
|
(10,348
|
)
|
|
(9,557
|
)
|
|
-
|
|
|
(9,557
|
)
|
|
8
|
%
|
|
8
|
%
|
Foreign Exchange Gain (Loss)
|
|
|
329
|
|
|
-
|
|
|
329
|
|
|
(1,599
|
)
|
|
-
|
|
|
(1,599
|
)
|
|
-121
|
%
|
|
-2
|
%
|
Interest Income and Other
|
|
|
2,095
|
|
|
-
|
|
|
2,095
|
|
|
1,569
|
|
|
-
|
|
|
1,569
|
|
|
34
|
%
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Taxes
|
|
|
151,207
|
|
|
32,113
|
|
|
183,320
|
|
|
175,975
|
|
|
7,850
|
|
|
183,825
|
|
|
-14
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (Benefit) for Income Taxes (A-E)
|
|
|
26,588
|
|
|
21,126
|
|
|
47,714
|
|
|
39,701
|
|
|
11,068
|
|
|
50,769
|
|
|
-33
|
%
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
124,619
|
|
|
10,987
|
|
|
135,606
|
|
|
136,274
|
|
|
(3,218
|
)
|
|
133,056
|
|
|
-9
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share- Diluted
|
|
$
|
2.10
|
|
|
0.19
|
|
|
2.28
|
|
|
2.26
|
|
|
(0.05
|
)
|
|
2.20
|
|
|
-7
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares - Diluted
|
|
|
59,388
|
|
|
59,388
|
|
|
59,388
|
|
|
60,349
|
|
|
60,349
|
|
|
60,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JOHN WILEY & SONS, INC.
|
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
|
JANUARY 31, 2014 AND 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF US GAAP EPS TO ADJUSTED
EPS - DILUTED (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
January 31,
|
|
January 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GAAP Earnings Per Share - Diluted
|
|
$
|
|
0.88
|
|
|
$
|
|
0.95
|
|
$
|
|
2.10
|
|
|
$
|
|
2.26
|
|
Adjusted to exclude the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring Charges (A)
|
|
|
|
(0.05
|
)
|
|
|
|
-
|
|
|
|
(0.31
|
)
|
|
|
|
(0.06
|
)
|
Impairment Charges (B)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
|
|
(0.16
|
)
|
Gain on Sale of Travel Publishing Program (C)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
0.10
|
|
Operational Results of Divested Consumer Programs (D)
|
|
|
|
-
|
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
|
0.03
|
|
Deferred Income Tax Benefit on UK Rate Change (E)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
0.18
|
|
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share - Diluted
|
|
$
|
|
0.93
|
|
|
$
|
|
0.93
|
|
$
|
|
2.28
|
|
|
$
|
|
2.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO UNAUDITED FINANCIAL STATEMENTS
|
|
Adjustments:
|
(A)
|
|
RESTRUCTURING CHARGES: The adjusted results for the three and
nine months ended January 31, 2014 and the nine months ended January
31, 2013 exclude restructuring charges related to the Company's
Restructuring and Reinvestment Program of $4.3 million ($2.9 million
after tax, $0.05 per share), $27.3 million ($18.3 million after tax,
$0.31 per share) and $4.8 million ($3.5 million after tax, $0.06 per
share), respectively.
|
|
|
|
(B)
|
|
Impairment Charges: The adjusted results for the nine months
ended January 31, 2014 exclude asset impairment charges related to
certain technology investments of $4.8 million ($3.4 million after
tax, $0.06 per share). The adjusted results for the nine months
ended January 31, 2013 exclude asset impairment charges related to
the divested Professional Development consumer publishing programs
of $15.5 million ($9.6 million after tax, $0.16 per share).
|
|
|
|
(C)
|
|
Gain on Sale of Travel Publishing Program: The adjusted results
for the nine months ended January 31, 2013 exclude a gain on sale of
the travel publishing program of $9.8 million ($6.2 million after
tax, $0.10 per share).
|
|
|
|
(D)
|
|
Operating Results of Divested Consumer Programs: The adjusted
results for the three and nine months ended January 31, 2013 exclude
the operating results of the divested Professional Development
consumer publishing programs sold in fiscal year 2013.
|
|
|
|
(E)
|
|
Deferred Income Tax Benefit on UK Rate Change: The adjusted
results for the nine months ended January 31, 2014 and 2013 exclude
deferred tax benefits of $10.6 million ($0.18 per share) and $8.4
million ($0.14 per share), respectively. The tax benefits are
associated with tax legislation enacted in the United Kingdom that
reduced the U.K. corporate income tax rates by 3% and 2%,
respectively. The benefits reflect the remeasurement of the
Company's deferred tax balances to the new income tax rates of 21%
effective April 1, 2014 and 20% effective April 1, 2015 and had no
current cash tax impact.
|
|
|
|
Non-GAAP Financial Measures:
|
In addition to providing financial results in accordance with
GAAP, the Company has provided adjusted financial results that
exclude the impact of other nonrecurring items described in more
detail throughout this press release. These non-GAAP financial
measures are labeled as "Adjusted" and are used for evaluating the
results of operations for internal purposes. These non-GAAP measures
are not intended to replace the presentation of financial results in
accordance with GAAP. Rather, the Company believes the exclusion of
such items provides additional information to investors to
facilitate the comparison of past and present operations. Unless
otherwise noted, adjusted amounts in the attached schedules include
foreign exchange.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JOHN WILEY & SONS, INC.
|
UNAUDITED SEGMENT RESULTS
|
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
|
JANUARY 31, 2014 AND 2013
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER ENDED JANUARY 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
US GAAP
|
|
Adjustments (A,B)
|
|
Adjusted
|
|
US GAAP
|
|
Adjustments (B-D)
|
|
Adjusted
|
|
US GAAP
|
|
Adjusted excl. FX
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
248,797
|
|
|
-
|
|
|
248,797
|
|
|
240,902
|
|
|
-
|
|
|
240,902
|
|
|
3
|
%
|
|
3
|
%
|
Professional Development
|
|
|
94,201
|
|
|
-
|
|
|
94,201
|
|
|
113,106
|
|
|
(13,858
|
)
|
|
99,248
|
|
|
-17
|
%
|
|
-5
|
%
|
Education
|
|
|
114,935
|
|
|
-
|
|
|
114,935
|
|
|
118,427
|
|
|
-
|
|
|
118,427
|
|
|
-3
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
457,933
|
|
|
-
|
|
|
457,933
|
|
|
472,435
|
|
|
(13,858
|
)
|
|
458,577
|
|
|
-3
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Contribution to Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
103,244
|
|
|
(782
|
)
|
|
102,462
|
|
|
100,369
|
|
|
-
|
|
|
100,369
|
|
|
3
|
%
|
|
2
|
%
|
Professional Development
|
|
|
31,740
|
|
|
(833
|
)
|
|
30,907
|
|
|
30,780
|
|
|
(2,037
|
)
|
|
28,743
|
|
|
3
|
%
|
|
8
|
%
|
Education
|
|
|
44,505
|
|
|
117
|
|
|
44,622
|
|
|
48,376
|
|
|
-
|
|
|
48,376
|
|
|
-8
|
%
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
179,489
|
|
|
(1,498
|
)
|
|
177,991
|
|
|
179,525
|
|
|
(2,037
|
)
|
|
177,488
|
|
|
0
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution to Profit (After Allocated
Shared Services and Admin. Costs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
69,799
|
|
|
(782
|
)
|
|
69,017
|
|
|
67,715
|
|
|
-
|
|
|
67,715
|
|
|
3
|
%
|
|
2
|
%
|
Professional Development
|
|
|
12,760
|
|
|
(833
|
)
|
|
11,927
|
|
|
11,877
|
|
|
(2,037
|
)
|
|
9,840
|
|
|
-
|
|
|
21
|
%
|
Education
|
|
|
30,377
|
|
|
117
|
|
|
30,494
|
|
|
35,055
|
|
|
-
|
|
|
35,055
|
|
|
-13
|
%
|
|
-9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
112,936
|
|
|
(1,498
|
)
|
|
111,438
|
|
|
114,647
|
|
|
(2,037
|
)
|
|
112,610
|
|
|
-1
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Shared Services and Admin. Costs
|
|
|
(39,556
|
)
|
|
5,754
|
|
|
(33,802
|
)
|
|
(31,021
|
)
|
|
-
|
|
|
(31,021
|
)
|
|
28
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
73,380
|
|
|
4,256
|
|
|
77,636
|
|
|
83,626
|
|
|
(2,037
|
)
|
|
81,589
|
|
|
-12
|
%
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shared Services and Admin. Costs by
Function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
(24,384
|
)
|
|
17
|
|
|
(24,367
|
)
|
|
(25,911
|
)
|
|
-
|
|
|
(25,911
|
)
|
|
-6
|
%
|
|
-5
|
%
|
Technology Services
|
|
|
(46,154
|
)
|
|
2,283
|
|
|
(43,871
|
)
|
|
(42,381
|
)
|
|
-
|
|
|
(42,381
|
)
|
|
9
|
%
|
|
4
|
%
|
Finance
|
|
|
(11,842
|
)
|
|
882
|
|
|
(10,960
|
)
|
|
(10,273
|
)
|
|
-
|
|
|
(10,273
|
)
|
|
15
|
%
|
|
8
|
%
|
Other Administration
|
|
|
(23,729
|
)
|
|
2,572
|
|
|
(21,157
|
)
|
|
(17,334
|
)
|
|
-
|
|
|
(17,334
|
)
|
|
37
|
%
|
|
23
|
%
|
Total
|
|
$
|
(106,109
|
)
|
|
5,754
|
|
|
(100,355
|
)
|
|
(95,899
|
)
|
|
-
|
|
|
(95,899
|
)
|
|
11
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED JANUARY 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
US GAAP
|
|
Adjustments (A,B)
|
|
Adjusted
|
|
US GAAP
|
|
Adjustments (A-D)
|
|
Adjusted
|
|
US GAAP
|
|
Adjusted excl. FX
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
747,532
|
|
|
-
|
|
|
747,532
|
|
|
726,679
|
|
|
-
|
|
|
726,679
|
|
|
3
|
%
|
|
3
|
%
|
Professional Development
|
|
|
270,832
|
|
|
-
|
|
|
270,832
|
|
|
316,360
|
|
|
(40,359
|
)
|
|
276,001
|
|
|
-14
|
%
|
|
-1
|
%
|
Education
|
|
|
299,742
|
|
|
-
|
|
|
299,742
|
|
|
271,885
|
|
|
-
|
|
|
271,885
|
|
|
10
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,318,106
|
|
|
-
|
|
|
1,318,106
|
|
|
1,314,924
|
|
|
(40,359
|
)
|
|
1,274,565
|
|
|
0
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Contribution to Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
309,832
|
|
|
4,590
|
|
|
314,422
|
|
|
300,624
|
|
|
2,966
|
|
|
303,590
|
|
|
3
|
%
|
|
4
|
%
|
Professional Development
|
|
|
76,759
|
|
|
4,834
|
|
|
81,593
|
|
|
71,949
|
|
|
4,263
|
|
|
76,212
|
|
|
7
|
%
|
|
8
|
%
|
Education
|
|
|
102,687
|
|
|
375
|
|
|
103,062
|
|
|
99,150
|
|
|
169
|
|
|
99,319
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
489,278
|
|
|
9,799
|
|
|
499,077
|
|
|
471,723
|
|
|
7,398
|
|
|
479,121
|
|
|
4
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution to Profit (After Allocated
Shared Services and Admin. Costs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
|
|
$
|
206,230
|
|
|
4,590
|
|
|
210,820
|
|
|
199,663
|
|
|
2,966
|
|
|
202,629
|
|
|
3
|
%
|
|
5
|
%
|
Professional Development
|
|
|
17,944
|
|
|
4,834
|
|
|
22,778
|
|
|
11,296
|
|
|
4,263
|
|
|
15,559
|
|
|
-
|
|
|
48
|
%
|
Education
|
|
|
59,019
|
|
|
375
|
|
|
59,394
|
|
|
60,063
|
|
|
169
|
|
|
60,232
|
|
|
-2
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
283,193
|
|
|
9,799
|
|
|
292,992
|
|
|
271,022
|
|
|
7,398
|
|
|
278,420
|
|
|
4
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Shared Services and Admin. Costs
|
|
|
(124,062
|
)
|
|
22,314
|
|
|
(101,748
|
)
|
|
(85,460
|
)
|
|
452
|
|
|
(85,008
|
)
|
|
45
|
%
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
159,131
|
|
|
32,113
|
|
|
191,244
|
|
|
185,562
|
|
|
7,850
|
|
|
193,412
|
|
|
-14
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shared Services and Admin. Costs by
Function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
$
|
(75,937
|
)
|
|
2,591
|
|
|
(73,346
|
)
|
|
(77,589
|
)
|
|
193
|
|
|
(77,396
|
)
|
|
-2
|
%
|
|
-4
|
%
|
Technology Services
|
|
|
(147,124
|
)
|
|
13,243
|
|
|
(133,881
|
)
|
|
(115,162
|
)
|
|
256
|
|
|
(114,906
|
)
|
|
28
|
%
|
|
17
|
%
|
Finance
|
|
|
(33,174
|
)
|
|
882
|
|
|
(32,292
|
)
|
|
(31,263
|
)
|
|
-
|
|
|
(31,263
|
)
|
|
6
|
%
|
|
4
|
%
|
Other Administration
|
|
|
(73,912
|
)
|
|
5,598
|
|
|
(68,314
|
)
|
|
(62,147
|
)
|
|
3
|
|
|
(62,144
|
)
|
|
19
|
%
|
|
11
|
%
|
Total
|
|
$
|
(330,147
|
)
|
|
22,314
|
|
|
(307,833
|
)
|
|
(286,161
|
)
|
|
452
|
|
|
(285,709
|
)
|
|
15
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
|
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
|
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
|
JANUARY 31, 2014 AND 2013
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
January 31,
|
|
January 31,
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
% Change excl. FX
|
|
2014
|
|
2013
|
|
% Change
|
|
% Change excl. FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Contribution to Profit
|
|
$
|
103,244
|
|
|
100,369
|
|
|
3
|
%
|
|
3
|
%
|
|
309,832
|
|
|
300,624
|
|
|
3
|
%
|
|
4
|
%
|
Restructuring Charges (Credits) (A)
|
|
|
(782
|
)
|
|
-
|
|
|
|
|
|
|
4,590
|
|
|
2,966
|
|
|
|
|
|
Adjusted Direct Contribution to Profit
|
|
|
102,462
|
|
|
100,369
|
|
|
2
|
%
|
|
2
|
%
|
|
314,422
|
|
|
303,590
|
|
|
4
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated Shared Services and Admin. Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
(11,011
|
)
|
|
(11,495
|
)
|
|
-4
|
%
|
|
-4
|
%
|
|
(33,714
|
)
|
|
(34,813
|
)
|
|
-3
|
%
|
|
-3
|
%
|
Technology
|
|
|
(17,727
|
)
|
|
(16,517
|
)
|
|
7
|
%
|
|
7
|
%
|
|
(54,307
|
)
|
|
(49,736
|
)
|
|
9
|
%
|
|
9
|
%
|
Occupancy and Other
|
|
|
(4,707
|
)
|
|
(4,642
|
)
|
|
1
|
%
|
|
1
|
%
|
|
(15,581
|
)
|
|
(16,412
|
)
|
|
-5
|
%
|
|
-4
|
%
|
Adjusted Contribution to Profit (after allocated Shared
Services and Admin. Costs)
|
|
$
|
69,017
|
|
|
67,715
|
|
|
2
|
%
|
|
2
|
%
|
|
210,820
|
|
|
202,629
|
|
|
4
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Contribution to Profit
|
|
$
|
31,740
|
|
|
30,780
|
|
|
3
|
%
|
|
4
|
%
|
|
76,759
|
|
|
71,949
|
|
|
7
|
%
|
|
8
|
%
|
Restructuring Charges (Credits) (A)
|
|
|
(833
|
)
|
|
-
|
|
|
|
|
|
|
4,834
|
|
|
1,254
|
|
|
|
|
|
Impairment Charges (B)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
15,521
|
|
|
|
|
|
Gain on Sale of Travel Publishing Program (C)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
(9,829
|
)
|
|
|
|
|
Direct Contribution to profit - Divested Consumer Publishing
Programs (D)
|
|
|
-
|
|
|
(2,037
|
)
|
|
|
|
|
|
-
|
|
|
(2,683
|
)
|
|
|
|
|
Adjusted Direct Contribution to Profit
|
|
|
30,907
|
|
|
28,743
|
|
|
8
|
%
|
|
8
|
%
|
|
81,593
|
|
|
76,212
|
|
|
7
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated Shared Services and Admin. Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
(9,320
|
)
|
|
(10,196
|
)
|
|
-9
|
%
|
|
-7
|
%
|
|
(27,861
|
)
|
|
(30,937
|
)
|
|
-10
|
%
|
|
-9
|
%
|
Technology
|
|
|
(7,543
|
)
|
|
(7,238
|
)
|
|
4
|
%
|
|
4
|
%
|
|
(23,260
|
)
|
|
(21,662
|
)
|
|
7
|
%
|
|
7
|
%
|
Occupancy and Other
|
|
|
(2,117
|
)
|
|
(1,469
|
)
|
|
44
|
%
|
|
44
|
%
|
|
(7,694
|
)
|
|
(8,054
|
)
|
|
-4
|
%
|
|
-3
|
%
|
Adjusted Contribution to Profit (after allocated Shared
Services and Admin. Costs)
|
|
$
|
11,927
|
|
|
9,840
|
|
|
21
|
%
|
|
21
|
%
|
|
22,778
|
|
|
15,559
|
|
|
46
|
%
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Contribution to Profit
|
|
$
|
44,505
|
|
|
48,376
|
|
|
-8
|
%
|
|
-4
|
%
|
|
102,687
|
|
|
99,150
|
|
|
4
|
%
|
|
6
|
%
|
Restructuring Charges (A)
|
|
|
117
|
|
|
-
|
|
|
|
|
|
|
375
|
|
|
169
|
|
|
|
|
|
Adjusted Direct Contribution to Profit
|
|
|
44,622
|
|
|
48,376
|
|
|
-8
|
%
|
|
-4
|
%
|
|
103,062
|
|
|
99,319
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated Shared Services and Admin. Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
(4,012
|
)
|
|
(4,074
|
)
|
|
-2
|
%
|
|
1
|
%
|
|
(11,755
|
)
|
|
(11,646
|
)
|
|
1
|
%
|
|
4
|
%
|
Technology
|
|
|
(8,429
|
)
|
|
(8,049
|
)
|
|
5
|
%
|
|
6
|
%
|
|
(25,802
|
)
|
|
(22,548
|
)
|
|
14
|
%
|
|
15
|
%
|
Occupancy and Other
|
|
|
(1,687
|
)
|
|
(1,198
|
)
|
|
41
|
%
|
|
49
|
%
|
|
(6,111
|
)
|
|
(4,893
|
)
|
|
25
|
%
|
|
27
|
%
|
Adjusted Contribution to Profit (after allocated Shared
Services and Admin. Costs)
|
|
$
|
30,494
|
|
|
35,055
|
|
|
-13
|
%
|
|
-9
|
%
|
|
59,394
|
|
|
60,232
|
|
|
-1
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted Contribution to Profit (after allocated Shared
Services and Admin. Costs)
|
|
$
|
111,438
|
|
|
112,610
|
|
|
-1
|
%
|
|
0
|
%
|
|
292,992
|
|
|
278,420
|
|
|
5
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Shared Services and Admin.
Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Shared Services and Admin. Costs
|
|
|
(39,556
|
)
|
|
(31,021
|
)
|
|
28
|
%
|
|
28
|
%
|
|
(124,062
|
)
|
|
(85,460
|
)
|
|
45
|
%
|
|
46
|
%
|
Restructuring Charges (A)
|
|
|
5,754
|
|
|
-
|
|
|
|
|
|
|
17,528
|
|
|
452
|
|
|
|
|
|
Impairment Charges (B)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
4,786
|
|
|
-
|
|
|
|
|
|
Adjusted Unallocated Shared Services and Admin. Costs
|
|
$
|
(33,802
|
)
|
|
(31,021
|
)
|
|
9
|
%
|
|
10
|
%
|
|
(101,748
|
)
|
|
(85,008
|
)
|
|
20
|
%
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income
|
|
$
|
77,636
|
|
|
81,589
|
|
|
-5
|
%
|
|
-3
|
%
|
|
191,244
|
|
|
193,412
|
|
|
-1
|
%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JOHN WILEY & SONS, INC.
|
SEGMENT REVENUE STATISTICS
|
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
|
JANUARY 31, 2014 AND 2013
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
|
|
|
|
Nine Months
|
|
|
|
|
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
RESEARCH
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Product/Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Journal Subscriptions
|
|
$
|
154,035
|
|
143,768
|
|
62
|
%
|
|
7
|
%
|
|
$
|
478,374
|
|
461,611
|
|
64
|
%
|
|
4
|
%
|
Print Books
|
|
|
30,990
|
|
37,078
|
|
12
|
%
|
|
-16
|
%
|
|
|
89,483
|
|
101,279
|
|
12
|
%
|
|
-11
|
%
|
Digital Books
|
|
|
12,636
|
|
11,092
|
|
5
|
%
|
|
12
|
%
|
|
|
31,588
|
|
25,130
|
|
4
|
%
|
|
25
|
%
|
Open Access
|
|
|
4,347
|
|
1,310
|
|
2
|
%
|
|
232
|
%
|
|
|
11,538
|
|
3,691
|
|
2
|
%
|
|
213
|
%
|
Other (includes Reprints, Backfiles, Rights, Advertising)
|
|
|
46,789
|
|
47,654
|
|
19
|
%
|
|
-2
|
%
|
|
|
136,549
|
|
134,968
|
|
18
|
%
|
|
2
|
%
|
Total Revenue
|
|
$
|
248,797
|
|
240,902
|
|
100
|
%
|
|
3
|
%
|
|
$
|
747,532
|
|
726,679
|
|
100
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Subject Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicine
|
|
$
|
68,264
|
|
69,275
|
|
27
|
%
|
|
-1
|
%
|
|
$
|
212,926
|
|
212,763
|
|
28
|
%
|
|
2
|
%
|
Physical Sciences & Engineering
|
|
|
71,643
|
|
69,788
|
|
29
|
%
|
|
1
|
%
|
|
|
209,469
|
|
205,684
|
|
28
|
%
|
|
1
|
%
|
Life Sciences
|
|
|
61,639
|
|
54,128
|
|
25
|
%
|
|
13
|
%
|
|
|
186,533
|
|
167,657
|
|
25
|
%
|
|
12
|
%
|
Social Sciences & Humanities
|
|
|
46,252
|
|
46,807
|
|
19
|
%
|
|
-1
|
%
|
|
|
135,548
|
|
137,760
|
|
18
|
%
|
|
-1
|
%
|
Other
|
|
|
999
|
|
904
|
|
0
|
%
|
|
11
|
%
|
|
|
3,056
|
|
2,815
|
|
0
|
%
|
|
9
|
%
|
Total Revenue
|
|
$
|
248,797
|
|
240,902
|
|
100
|
%
|
|
3
|
%
|
|
$
|
747,532
|
|
726,679
|
|
100
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
|
|
|
|
Nine Months
|
|
|
|
|
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
PROFESSIONAL DEVELOPMENT
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX (a)
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Product/Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print Books
|
|
$
|
64,757
|
|
71,465
|
|
69
|
%
|
|
-9
|
%
|
|
$
|
183,392
|
|
199,068
|
|
68
|
%
|
|
-7
|
%
|
Digital Books
|
|
|
11,459
|
|
10,507
|
|
12
|
%
|
|
9
|
%
|
|
|
34,352
|
|
28,801
|
|
13
|
%
|
|
20
|
%
|
Online Training & Assessment
|
|
|
8,792
|
|
7,336
|
|
9
|
%
|
|
20
|
%
|
|
|
26,713
|
|
21,047
|
|
10
|
%
|
|
27
|
%
|
Other (includes Rights, Translations, Advertising)
|
|
|
9,193
|
|
9,940
|
|
10
|
%
|
|
-7
|
%
|
|
|
26,375
|
|
27,085
|
|
10
|
%
|
|
-2
|
%
|
Divested Consumer Publishing Programs
|
|
|
-
|
|
13,858
|
|
|
|
|
|
|
-
|
|
40,359
|
|
|
|
|
Total Revenue
|
|
$
|
94,201
|
|
113,106
|
|
100
|
%
|
|
-5
|
%
|
|
$
|
270,832
|
|
316,360
|
|
100
|
%
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Subject Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
$
|
42,298
|
|
42,048
|
|
45
|
%
|
|
1
|
%
|
|
$
|
123,263
|
|
119,360
|
|
46
|
%
|
|
4
|
%
|
Technology
|
|
|
21,863
|
|
24,747
|
|
23
|
%
|
|
-11
|
%
|
|
|
57,397
|
|
63,945
|
|
21
|
%
|
|
-10
|
%
|
Consumer
|
|
|
10,709
|
|
12,642
|
|
11
|
%
|
|
-15
|
%
|
|
|
30,467
|
|
33,729
|
|
11
|
%
|
|
-9
|
%
|
Professional Education
|
|
|
6,515
|
|
5,939
|
|
7
|
%
|
|
11
|
%
|
|
|
22,743
|
|
21,295
|
|
8
|
%
|
|
7
|
%
|
Architecture
|
|
|
6,685
|
|
6,764
|
|
7
|
%
|
|
-1
|
%
|
|
|
18,286
|
|
19,211
|
|
7
|
%
|
|
-4
|
%
|
Psychology
|
|
|
4,576
|
|
3,694
|
|
5
|
%
|
|
24
|
%
|
|
|
12,812
|
|
10,430
|
|
5
|
%
|
|
23
|
%
|
Other
|
|
|
1,555
|
|
3,414
|
|
2
|
%
|
|
-52
|
%
|
|
|
5,864
|
|
8,031
|
|
2
|
%
|
|
-23
|
%
|
Divested Consumer Publishing Programs
|
|
|
-
|
|
13,858
|
|
|
|
|
|
|
-
|
|
40,359
|
|
|
|
|
Total Revenue
|
|
$
|
94,201
|
|
113,106
|
|
100
|
%
|
|
-5
|
%
|
|
$
|
270,832
|
|
316,360
|
|
100
|
%
|
|
-1
|
%
|
Note (a) - Variance excludes the revenue of the divested
Professional Development consumer publishing programs sold in
fiscal year 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
|
|
|
|
Nine Months
|
|
|
|
|
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
|
|
Ended January 31,
|
|
% of
|
|
% Change
|
EDUCATION
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX
|
|
|
2014
|
|
2013
|
|
Revenue
|
|
excl. FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Product/Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print Textbooks
|
|
$
|
54,358
|
|
62,395
|
|
47
|
%
|
|
-8
|
%
|
|
$
|
140,932
|
|
159,875
|
|
47
|
%
|
|
-9
|
%
|
Binder and Custom Products
|
|
|
12,896
|
|
12,463
|
|
11
|
%
|
|
3
|
%
|
|
|
43,970
|
|
39,260
|
|
15
|
%
|
|
12
|
%
|
Online Program Management (Deltak)
|
|
|
19,145
|
|
17,145
|
|
17
|
%
|
|
12
|
%
|
|
|
50,396
|
|
17,145
|
|
17
|
%
|
|
|
Digital Books
|
|
|
7,964
|
|
8,803
|
|
7
|
%
|
|
-8
|
%
|
|
|
21,524
|
|
19,002
|
|
7
|
%
|
|
15
|
%
|
WileyPLUS
|
|
|
18,578
|
|
15,554
|
|
16
|
%
|
|
20
|
%
|
|
|
35,590
|
|
29,105
|
|
12
|
%
|
|
23
|
%
|
Other
|
|
|
1,994
|
|
2,067
|
|
2
|
%
|
|
1
|
%
|
|
|
7,330
|
|
7,498
|
|
2
|
%
|
|
4
|
%
|
Total Revenue
|
|
$
|
114,935
|
|
118,427
|
|
100
|
%
|
|
0
|
%
|
|
$
|
299,742
|
|
271,885
|
|
100
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Subject Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
$
|
26,259
|
|
26,620
|
|
23
|
%
|
|
1
|
%
|
|
$
|
66,355
|
|
64,440
|
|
22
|
%
|
|
5
|
%
|
Sciences
|
|
|
16,587
|
|
17,101
|
|
14
|
%
|
|
-1
|
%
|
|
|
53,564
|
|
53,402
|
|
18
|
%
|
|
1
|
%
|
Social Sciences
|
|
|
14,444
|
|
15,193
|
|
13
|
%
|
|
-4
|
%
|
|
|
40,271
|
|
41,814
|
|
13
|
%
|
|
-3
|
%
|
Engineering & Computer Science
|
|
|
12,865
|
|
14,388
|
|
11
|
%
|
|
-9
|
%
|
|
|
32,772
|
|
37,479
|
|
11
|
%
|
|
-11
|
%
|
Mathematics & Statistics
|
|
|
6,843
|
|
6,981
|
|
6
|
%
|
|
-2
|
%
|
|
|
21,899
|
|
21,366
|
|
7
|
%
|
|
3
|
%
|
Schools (Australia K-12)
|
|
|
13,906
|
|
17,040
|
|
12
|
%
|
|
-7
|
%
|
|
|
24,341
|
|
25,174
|
|
8
|
%
|
|
9
|
%
|
Online Program Management (Deltak)
|
|
|
19,145
|
|
17,145
|
|
17
|
%
|
|
|
|
|
50,396
|
|
17,145
|
|
17
|
%
|
|
|
Other
|
|
|
4,886
|
|
3,959
|
|
4
|
%
|
|
26
|
%
|
|
|
10,144
|
|
11,065
|
|
3
|
%
|
|
-7
|
%
|
Total Revenue
|
|
$
|
114,935
|
|
118,427
|
|
100
|
%
|
|
0
|
%
|
|
$
|
299,742
|
|
271,885
|
|
100
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JOHN WILEY & SONS, INC.
|
UNAUDITED STATEMENTS OF FINANCIAL POSITION
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 31,
|
|
April 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
Cash & cash equivalents
|
|
|
|
$
|
315,985
|
|
285,858
|
|
334,140
|
Accounts receivable
|
|
|
|
|
205,796
|
|
238,112
|
|
161,731
|
Inventories
|
|
|
|
|
79,168
|
|
85,999
|
|
82,017
|
Prepaid and other
|
|
|
|
|
60,540
|
|
53,552
|
|
57,083
|
Total Current Assets
|
|
|
|
|
661,489
|
|
663,521
|
|
634,971
|
Product Development Assets
|
|
|
|
|
89,142
|
|
99,186
|
|
87,876
|
Technology, Property and Equipment
|
|
|
|
|
181,092
|
|
193,856
|
|
189,625
|
Intangible Assets
|
|
|
|
|
961,931
|
|
989,534
|
|
954,957
|
Goodwill
|
|
|
|
|
856,707
|
|
844,673
|
|
835,540
|
Income Tax Deposits
|
|
|
|
|
61,086
|
|
34,055
|
|
45,868
|
Other Assets
|
|
|
|
|
61,799
|
|
56,059
|
|
57,538
|
Total Assets
|
|
|
|
|
2,873,246
|
|
2,880,884
|
|
2,806,375
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
Accounts and royalties payable
|
|
|
|
|
205,154
|
|
199,621
|
|
143,313
|
Deferred revenue
|
|
|
|
|
279,681
|
|
287,063
|
|
362,970
|
Accrued employment costs
|
|
|
|
|
88,514
|
|
57,116
|
|
85,306
|
Accrued income taxes
|
|
|
|
|
6,802
|
|
15,478
|
|
16,093
|
Accrued pension liability
|
|
|
|
|
4,386
|
|
3,606
|
|
4,359
|
Other accrued liabilities
|
|
|
|
|
48,017
|
|
57,843
|
|
55,128
|
Total Current Liabilities
|
|
|
|
|
632,554
|
|
620,727
|
|
667,169
|
Long-Term Debt
|
|
|
|
|
634,000
|
|
734,800
|
|
673,000
|
Accrued Pension Liability
|
|
|
|
|
195,037
|
|
141,855
|
|
204,362
|
Deferred Income Tax Liabilities
|
|
|
|
|
199,660
|
|
214,480
|
|
197,526
|
Other Long-Term Liabilities
|
|
|
|
|
76,005
|
|
72,531
|
|
75,962
|
Shareholders' Equity
|
|
|
|
|
1,135,990
|
|
1,096,491
|
|
988,356
|
Total Liabilities & Shareholders' Equity
|
|
|
|
$
|
2,873,246
|
|
2,880,884
|
|
2,806,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JOHN WILEY & SONS, INC.
|
UNAUDITED STATEMENTS OF FREE CASH FLOW
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
January 31,
|
|
|
|
2014
|
|
2013
|
Operating Activities:
|
|
|
|
|
|
Net income
|
|
$
|
124,619
|
|
|
136,274
|
|
Amortization of intangibles
|
|
|
33,066
|
|
|
30,404
|
|
Amortization of composition costs
|
|
|
33,940
|
|
|
39,047
|
|
Depreciation of technology, property and equipment
|
|
|
43,596
|
|
|
41,124
|
|
Restructuring charges
|
|
|
27,327
|
|
|
4,841
|
|
Impairment charges
|
|
|
4,786
|
|
|
15,521
|
|
Gain on sale of travel publishing program
|
|
|
-
|
|
|
(9,829
|
)
|
Deferred tax benefits on U.K. rate changes
|
|
|
(10,634
|
)
|
|
(8,402
|
)
|
Stock-based compensation expense
|
|
|
10,995
|
|
|
9,998
|
|
Excess tax benefits from stock-based compensation
|
|
|
2,880
|
|
|
(1,129
|
)
|
Royalty advances
|
|
|
(83,237
|
)
|
|
(83,317
|
)
|
Earned royalty advances
|
|
|
77,663
|
|
|
69,726
|
|
Other non-cash charges and credits
|
|
|
12,547
|
|
|
31,570
|
|
Change in deferred revenue
|
|
|
(91,174
|
)
|
|
(52,302
|
)
|
Income tax deposit
|
|
|
(10,433
|
)
|
|
(29,705
|
)
|
Net change in operating assets and liabilities, excluding
acquisitions
|
|
|
(22,144
|
)
|
|
(31,666
|
)
|
Cash Provided by Operating Activities
|
|
|
153,797
|
|
|
162,155
|
|
|
|
|
|
|
|
Investments in organic growth:
|
|
|
|
|
|
Composition spending
|
|
|
(30,460
|
)
|
|
(35,599
|
)
|
Additions to technology, property and equipment
|
|
|
(38,733
|
)
|
|
(41,606
|
)
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
84,604
|
|
|
84,950
|
|
|
|
|
|
|
|
Other Investing and Financing Activities:
|
|
|
|
|
|
Acquisitions, net of cash
|
|
|
(5,150
|
)
|
|
(258,735
|
)
|
Proceeds from sale of consumer publishing programs
|
|
|
-
|
|
|
28,600
|
|
Repayment of long-term debt
|
|
|
(486,600
|
)
|
|
(318,600
|
)
|
Borrowings of long-term debt
|
|
|
447,600
|
|
|
578,400
|
|
Change in book overdrafts
|
|
|
(21,859
|
)
|
|
(20,984
|
)
|
Cash dividends
|
|
|
(44,182
|
)
|
|
(43,252
|
)
|
Purchase of treasury shares
|
|
|
(38,533
|
)
|
|
(45,172
|
)
|
Proceeds from exercise of stock options and other
|
|
|
48,540
|
|
|
24,232
|
|
Excess tax benefits from stock-based compensation
|
|
|
(2,880
|
)
|
|
1,129
|
|
Cash Used for Investing and Financing Activities
|
|
|
(103,064
|
)
|
|
(54,382
|
)
|
|
|
|
|
|
|
Effects of Exchange Rate Changes on Cash
|
|
|
305
|
|
|
(4,540
|
)
|
|
|
|
|
|
|
(Decrease) Increase in Cash and Cash Equivalents for Period
|
|
$
|
(18,155
|
)
|
|
26,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO GAAP PRESENTATION
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
Composition spending
|
|
$
|
(30,460
|
)
|
|
(35,599
|
)
|
Additions to technology, property and equipment
|
|
|
(38,733
|
)
|
|
(41,606
|
)
|
Acquisitions, net of cash
|
|
|
(5,150
|
)
|
|
(258,735
|
)
|
Proceeds from sale of consumer publishing programs
|
|
|
-
|
|
|
28,600
|
|
Cash Used for Investing Activities
|
|
$
|
(74,343
|
)
|
|
(307,340
|
)
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
Cash Used for Investing and Financing Activities
|
|
$
|
(103,064
|
)
|
|
(54,382
|
)
|
Excluding:
|
|
|
|
|
|
Acquisitions, net of cash
|
|
|
(5,150
|
)
|
|
(258,735
|
)
|
Proceeds from sale of consumer publishing programs
|
|
|
-
|
|
|
28,600
|
|
Cash (Used for) Provided by Financing Activities
|
|
$
|
(97,914
|
)
|
|
175,753
|
|
|
|
|
|
|
|
Note: The Company's management evaluates performance using free
cash flow. The Company believes free cash flow provides a meaningful
and comparable measure of performance. Since free cash flow is not a
measure calculated in accordance with GAAP, it should not be
considered as a substitute for other GAAP measures, including cash
used for or provided by operating activities, investing activities
and financing activities, as an indicator of performance.
|
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