Attached files
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| EX-99.10 - JOHN WILEY & SONS, INC. | exhibit99.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
June 17, 2014
(Date of Report)
(Date of earliest event reported)
JOHN WILEY & SONS, INC.
(Exact name of registrant as specified in its charter)
New York
(State or jurisdiction of incorporation)
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0-11507
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13-5593032
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----------------------------------------------------
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---------------------------------------------
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Commission File Number
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IRS Employer Identification Number
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111 River Street, Hoboken NJ
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07030
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----------------------------------------------------
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---------------------------------------------
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Address of principal executive offices
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Zip Code
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Registrant’s telephone number, including area code:
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(201) 748-6000
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---------------------------------------------
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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ITEM 7.01:
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REGULATION FD DISCLOSURE
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The information in this report is being furnished (i) pursuant to Regulation FD, and (ii) pursuant to item 12 Results of Operation and Financial Condition (in accordance with SEC interim guidance issued March 28, 2003). In accordance with General Instructions B.2 and B.6 of Form 8-K, the information in this report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended. The furnishing of the information set forth in this report is not intended to, and does not, constitute a determination or admission as to the materiality or completeness of such information.
On June 17, 2014, John Wiley & Sons Inc., a New York corporation (the “Company”), issued a press release announcing the Company’s financial results for the fourth quarter of fiscal year 2014. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and incorporated. Exhibit 99.10 is a copy of the slides furnished at the fourth quarter fiscal year 2014 earnings presentation.
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Exhibit No.
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Description
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99.1 Press release dated June 17, 2014 titled “Wiley Reports Fourth Quarter and Fiscal Year 2014 Results” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended).
99.10 Press release slideshow presentation (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended).
Investor Contact: Media Contact:
Brian Campbell, Investor Relations Linda Dunbar, Media Relations
201.748.6874 201.748.6390
brian.campbell@wiley.com ldunbar@wiley.com
Wiley Reports Fourth Quarter and Fiscal Year 2014 Results
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·
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Fourth quarter adjusted revenue of $457 million, up 2% on a constant currency basis
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·
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Fiscal year adjusted revenue of $1,775 million, up 4% on a constant currency basis
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·
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Percent of revenue in Fiscal Year 2014 (FY14) from digital knowledge and knowledge-enabled services increased to 55% from 51% a year earlier
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·
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Fourth quarter adjusted EPS of $0.77, up 4% on a constant currency basis
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·
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Fiscal year adjusted EPS of $3.05, up 4% on a constant currency basis
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·
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Fiscal Year 2015 outlook of mid-single-digit revenue growth and EPS in a range of $3.25 to $3.35, including a 10-cent per share dilutive earnings impact from recently acquired CrossKnowledge and Profiles International
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June 17, 2014 (Hoboken, NJ) – 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 fourth quarter and fiscal year 2014, ending April 30, 2014:
Change
| $ millions | FY14 | FY13 | Excluding FX | Including FX | ||
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ADJUSTED
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||||||
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Revenue
Q4
Full Year
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$457
$1,775
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$441
$1,715
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2%
4%
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4%
3%
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||
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EPS
Q4
Full Year
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$0.77
$3.05
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$0.71
$2.92
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4%
4%
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8%
4%
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||
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US GAAP
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||||||
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Revenue
Q4
Full Year
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$457
$1,775
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$446
$1,761
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1%
1%
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3%
1%
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||
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EPS
Q4
Full Year
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$0.60
$2.70
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$0.13
$2.39
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338%
12%
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362%
13%
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Please see the attached financial schedules for more detail
Management Commentary
“We are very pleased with our operational performance this year, including our continued progress in expanding Wiley’s depth and breadth as a provider of knowledge-enabled solutions,” said Steve Smith, President and CEO of Wiley. “We exceeded our annual guidance for adjusted revenue growth and earnings, successfully executed on our restructuring plans to achieve a lower and more flexible cost structure, and recently acquired two companies that position Wiley to become a solutions leader in professional learning and development. Our share of revenue from print books is down to 29%, and through organic investment and targeted acquisitions, and by integrating content, technology, and services, we have accelerated our strategy to provide professionals, students, and researchers with valued solutions that serve their needs from education through employment.”
Fiscal Year 2015 Outlook
Wiley’s fiscal year 2015 outlook is for mid-single-digit revenue growth and EPS in a range of $3.25 to $3.35, including a 10-cent per share dilutive earnings impact from recently acquired CrossKnowledge and Profiles International.
Fourth Quarter Summary
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·
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Adjusted revenue on a constant currency basis rose 2% to $457 million. Adjusted revenue excludes $5 million of revenue from the divested consumer publishing programs in the prior year. Education (+10%) and Research (+2%) drove results, offsetting a 2% decline in Professional Development. Revenue grew 1% on a US GAAP basis excluding foreign exchange.
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·
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Adjusted earnings per share (EPS) on a constant currency basis grew 4% to $0.77. Adjusted EPS excludes certain one-time or unusual items in both years as further described in the attached reconciliation of US GAAP to Adjusted EPS. The divested consumer publishing programs did not have a material impact on EPS in the prior year period. US GAAP EPS for the fourth quarter was $0.60 vs. $0.13 in the prior year.
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·
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Wiley acquired Profiles International in the quarter for $51 million. After the quarter closed, Wiley acquired CrossKnowledge for $175 million. Profiles International, a pre-hire assessment and talent management provider, reported $27 million of revenue and over $5 million of EBITDA in its fiscal year ending December 31, 2013. CrossKnowledge, a learning solutions provider focused on leadership and managerial skills development, reported over $37 million of revenue and $9 million of EBITDA in its fiscal year ending June 30, 2013. The acquisitions were financed with cash-on-hand and capacity available under our revolving credit facility.
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·
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Wiley recorded an additional restructuring charge of $15.4 million ($0.17 per share) this quarter related to its previously announced restructuring program. Including this charge, Wiley has recorded $67.2 million in restructuring charges since the program was announced in January 2013. Plans have been completed to achieve $80 million in run rate savings, beginning in FY15. Approximately half of these savings will be reinvested in the business.
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·
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Share repurchases: In the quarter, Wiley repurchased 437,800 shares for $24.8 million, an average cost of $56.79 per share.
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Fiscal Year Summary
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·
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Adjusted revenue on a constant currency basis grew 4% over prior year to $1,775 million. Adjusted revenue excludes the prior year revenue of the divested consumer publishing programs ($45.6 million of revenue in FY13). Education (+12%) and Research (+3%) drove results, offsetting a 2% decline in Professional Development. Revenue grew 1% on a US GAAP basis.
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·
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Adjusted EPS on a constant currency basis grew 4% to $3.05. Adjusted EPS excludes certain one-time or unusual items in both years further described in the attached reconciliation of US GAAP to Adjusted EPS. The divested consumer publishing programs did not have a material impact on EPS in the prior year period. US GAAP EPS for fiscal year 2014 was $2.70 vs. $2.39 in the prior year.
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·
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Adjusted shared services and administrative costs grew 7% for the year to $420.2 million, driven primarily by higher investment in technology (+13%). Higher incentive compensation accruals offset savings from the restructuring program.
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·
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Free Cash Flow of $250 million was $22 million (+10%) ahead of the prior year. Improved earnings and lower disputed income tax deposits paid to the German government more than offset cash payments related to restructuring. In addition, higher accrued incentive compensation in the current period (reflected in Other Liabilities) offset the benefit from accelerated collections in the prior period (reflected in Deferred Revenue).
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·
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Net Debt and Cash Position: Net debt (long-term debt less cash and cash equivalents) at the end of April was $214 million, down from $339 million at the end of the prior year. Net debt to EBITDA was at 0.5x on a trailing twelve month (ttm) basis. Cash and cash equivalents as of April 30, 2014, were $486 million. Note that the CrossKnowledge acquisition ($175 million purchase price) closed on May 1.
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·
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Share repurchases: In fiscal year 2014, Wiley repurchased 1.25 million shares for $63.4 million, an average cost of $50.79. As of April 30, the Company had nearly 3.3 million shares remaining in the repurchase program announced in June 2013.
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·
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Dividend: In June 2013, Wiley increased its quarterly dividend by 4% to $0.25. It was the 20th consecutive annual increase, and followed a 20% increase in June 2012.
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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 certain one-time tax benefits and charges. 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
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·
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Revenue: Fourth quarter revenue on a constant currency basis rose 2% to $296.8 million, driven by journal subscription revenue growth (+2%), author-funded open access (+$3.6 million), and digital books (+32%). Partially offsetting this growth was a 9% decline in print book revenue and 5% decline in other revenue, which includes corporate reprints, backfiles, rights income, and advertising. For the year, revenue on a constant currency basis was up 3% to $1,044 million, driven by journal subscriptions (+4%), open access (+$11.5 million), and digital books (+27%).
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·
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Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit (after allocated shared services and administrative costs) grew 3% on a constant currency basis to $104.8 million, with revenue growth and restructuring savings offsetting higher accrued incentive compensation and additional operating costs related to business growth. Adjusted contribution to profit excludes restructuring charges. For the year, adjusted contribution to profit (after shared services and administrative costs) grew 4% to $315.7 million, excluding the impact of foreign exchange.
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Calendar Year 2014 Journal Subscriptions: At the end of April, calendar year 2014 journal subscriptions were up 2% on a constant currency basis, with 96% of targeted business closed for the 2014 volume year.
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Society Business: 16 society journals were renewed in the quarter with combined annual revenue of $7.9 million; there were no new signings or journals lost. In the fiscal year, Wiley signed 7 new journals worth $10.6 million annually, renewed 85 journals with combined annual revenue of $39.7 million, and lost 11 journals worth $6.9 million annually.
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PROFESSIONAL DEVELOPMENT
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·
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Adjusted Revenue: Fourth quarter adjusted revenue declined 2% to $93.0 million. Adjusted revenue excludes revenue from the divested consumer publishing programs ($5 million) in the prior year period. Adjusted revenue performance was driven by a decline in print books (-10%) and digital books (-8%), which offset growth in online training and assessment. Revenue performance was aided by a one-month revenue contribution of $1.9 million from the April 1 acquisition of Profiles International, a pre-hire assessment provider. Excluding that contribution, online training and assessment grew 31%. Within book revenue, weakness in the Technology and Consumer categories offset growth in Business and Finance. For the year, adjusted revenue on a constant currency basis was down 2% to $363.9 million.
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·
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Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit (after allocated shared service and administrative costs) grew 58% to $9.5 million due to restructuring savings and higher margin solutions revenue, offsetting the decline in the combined revenues for print and digital books. Adjusted contribution to profit excludes restructuring charges and the operating results, gains/ losses, and impairment charges from the divestment of the consumer publishing program in the prior year. For the year, adjusted contribution to profit (after shared services and administrative costs) grew 50% to $32.2 million, excluding the impact of foreign exchange.
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·
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Acquisitions: In fiscal year 2014, Wiley acquired Elan Guides, an early-stage CFA test preparation company (terms undisclosed), and Profiles International, a provider of employment assessment and talent management solutions (for $51 million). On May 1, 2014, Wiley acquired CrossKnowledge, a learning solutions provider focused on leadership and managerial skills development, for $175 million.
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EDUCATION
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·
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Revenue: Fourth quarter revenue rose 10% on a constant currency basis to $67.2 million. Revenue growth from online program management (+19%), digital books (+40%), and WileyPLUS (+18%) offset a decline in print textbooks (-5%). In fiscal year 2014, Education revenue increased 12% on a constant currency basis to $367.0 million, due primarily to the mid-year acquisition of Deltak in fiscal year 2013. For the year, strong growth in WileyPLUS, digital books, and binder and custom products mostly offset a decline in print textbooks.
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·
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Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit (after allocated shared service and administrative costs) declined slightly to a seasonal loss of $8.6 million, reflecting higher accrued incentive costs. Adjusted contribution to profit excludes restructuring charges. For the year, adjusted contribution to profit (after shared services and administrative costs) increased 2% to $50.8 million, excluding the impact of foreign exchange. Revenue growth and restructuring savings were offset by higher accrued incentive costs and dilution from Deltak.
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·
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Online Program Management (OPM): Deltak secured one new university partner in the quarter (George Washington University), bringing the total number of institutions under contract to 37. As of April 30, 2014, Deltak had 122 programs generating revenue and 52 programs under contract and in development but not yet generating revenue. As of April 30, 2013, Deltak had 31 university partners, 100 revenue-producing programs, and 46 programs in development.
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(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
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·
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Scheduled for today, June 17, at 10:00 a.m. (EDT)
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Access the webcast at www.wiley.com> Investor Relations> Events and Presentations, or http://www.wiley.com/WileyCDA/Section/id-370238.html
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U.S. callers, please dial (888) 481-2877 and enter the participant code 8811232#
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International callers, please dial (719) 325-2323 and enter the participant code 8811232#
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·
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An archive of the webcast will be available for a period of up to 14 days
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"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.
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UNAUDITED SUMMARY OF OPERATIONS
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FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED
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APRIL 30, 2014 AND 2013
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(in thousands, except per share amounts)
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|||||||||||||||||
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FOURTH QUARTER ENDED APRIL 30,
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|||||||||||||||||
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2014
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2013
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% Change
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|||||||||||||||
| US GAAP | Adjustments (A) | Adjusted | US GAAP | Adjustments (A-D) | Adjusted | US GAAP |
Adjusted
excel. FX
|
||||||||||
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Revenue
|
$
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457,089
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-
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457,089
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445,854
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(5,196)
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440,658
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3%
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2%
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||||||||
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Costs and Expenses
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|||||||||||||||||
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Cost of Sales
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126,173
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-
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126,173
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133,640
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(4,363)
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129,277
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-6%
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-4%
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||||||||
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Operating and Administrative
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256,366
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-
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256,366
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243,315
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(2,497)
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240,818
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5%
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5%
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|||||||||
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Restructuring Charges (A)
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15,395
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(15,395)
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24,452
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(24,452)
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-
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||||||||||||
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Impairment Charges (B)
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-
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-
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-
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15,158
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(15,158)
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-
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|||||||||||
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Amortization of Intangibles
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11,613
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-
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11,613
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11,578
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-
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11,578
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0%
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-2%
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|||||||||
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Total Costs and Expenses
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409,547
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(15,395)
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394,152
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428,143
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(46,470)
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381,673
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-4%
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2%
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|||||||||
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Loss on Sale of Consumer Publishing Programs (C)
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-
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-
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-
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(3,846)
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3,846
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-
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|||||||||||
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Operating Income
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47,542
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15,395
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62,937
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13,865
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45,120
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58,985
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243%
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3%
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|||||||||
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Operating Margin
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10.4%
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13.8%
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3.1%
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13.4%
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|||||||||||||
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Interest Expense
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(3,568)
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-
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(3,568)
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(3,521)
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-
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(3,521)
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1%
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1%
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|||||||||
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Foreign Exchange Gain (Loss)
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(337)
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-
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(337)
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(442)
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-
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(442)
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-24%
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-1%
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|||||||||
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Interest Income and Other
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690
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-
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690
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1,045
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-
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1,045
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-34%
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-34%
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|||||||||
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Income Before Taxes
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44,327
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15,395
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59,722
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10,947
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45,120
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56,067
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305%
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2%
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|||||||||
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Provision (Benefit) for Income Taxes (A-D)
|
8,436
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5,331
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13,767
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2,996
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10,553
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13,549
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182%
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-3%
|
|||||||||
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Net Income
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$
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35,891
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10,064
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45,955
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7,951
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34,567
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42,518
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351%
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4%
|
||||||||
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Earnings Per Share- Diluted
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$
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0.60
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0.17
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0.77
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0.13
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0.58
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0.71
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362%
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4%
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||||||||
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Average Shares - Diluted
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59,925
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59,925
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59,925
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59,543
|
59,543
|
59,543
|
|||||||||||
|
TWELVE MONTHS ENDED APRIL 30,
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|||||||||||||||||
|
2014
|
2013
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% Change
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|||||||||||||||
| US GAAP | Adjustments (A,B,E) | Adjusted | US GAAP | Adjustments (A-E) | Adjusted | US GAAP |
Adjusted
excl. FX
|
||||||||||
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Revenue
|
$
|
1,775,195
|
-
|
1,775,195
|
1,760,778
|
(45,555)
|
1,715,223
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1%
|
4%
|
||||||||
|
Costs and Expenses
|
|||||||||||||||||
|
|
Cost of Sales
|
506,879
|
-
|
506,879
|
532,232
|
(29,868)
|
502,364
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-5%
|
1%
|
||||||||
|
Operating and Administrative
|
969,456
|
-
|
969,456
|
933,148
|
(14,615)
|
918,533
|
4%
|
6%
|
|||||||||
|
Restructuring Charges (A)
|
42,722
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(42,722)
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-
|
29,293
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(29,293)
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-
|
|||||||||||
|
Impairment Charges (B)
|
4,786
|
(4,786)
|
-
|
30,679
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(30,679)
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-
|
|||||||||||
|
Amortization of Intangibles
|
44,679
|
-
|
44,679
|
41,982
|
(53)
|
41,929
|
6%
|
6%
|
|||||||||
|
Total Costs and Expenses
|
1,568,522
|
(47,508)
|
1,521,014
|
1,567,334
|
(104,508)
|
1,462,826
|
0%
|
4%
|
|||||||||
|
Net Gain on Sale of Consumer Publishing Programs (C)
|
-
|
-
|
-
|
5,983
|
(5,983)
|
-
|
|||||||||||
|
Operating Income
|
206,673
|
47,508
|
254,181
|
199,427
|
52,970
|
252,397
|
4%
|
1%
|
|||||||||
|
Operating Margin
|
11.6%
|
14.3%
|
11.3%
|
14.7%
|
|||||||||||||
|
Interest Expense
|
(13,916)
|
-
|
(13,916)
|
(13,078)
|
-
|
(13,078)
|
6%
|
6%
|
|||||||||
|
Foreign Exchange Gain (Loss)
|
(8)
|
-
|
(8)
|
(2,041)
|
-
|
(2,041)
|
-100%
|
-2%
|
|||||||||
|
Interest Income and Other
|
2,785
|
-
|
2,785
|
2,614
|
-
|
2,614
|
7%
|
7%
|
|||||||||
|
Income Before Taxes
|
195,534
|
47,508
|
243,042
|
186,922
|
52,970
|
239,892
|
5%
|
1%
|
|||||||||
|
Provision (Benefit) for Income Taxes (A-E)
|
35,024
|
26,457
|
61,481
|
42,697
|
21,621
|
64,318
|
-18%
|
-5%
|
|||||||||
|
Net Income
|
$
|
160,510
|
21,051
|
181,561
|
144,225
|
31,349
|
175,574
|
11%
|
3%
|
||||||||
|
Earnings Per Share- Diluted
|
$
|
2.70
|
0.35
|
3.05
|
2.39
|
0.52
|
2.92
|
13%
|
4%
|
||||||||
|
Average Shares - Diluted
|
59,514
|
59,514
|
59,514
|
60,224
|
60,224
|
60,224
|
|||||||||||
| See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment. | |||||||||||||||||
|
JOHN WILEY & SONS, INC.
|
||||||||||||
|
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED
|
||||||||||||
|
APRIL 30, 2014 AND 2013
|
||||||||||||
|
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
|
||||||||||||
| Fourth Quarter Ended | Twelve Months Ended | |||||||||||
|
April 30,
|
April 30,
|
|||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
|
US GAAP Earnings Per Share - Diluted
|
$
|
0.60
|
$
|
0.13
|
$
|
2.70
|
$
|
2.39
|
||||
|
Adjusted to exclude the following:
|
||||||||||||
|
Restructuring Charges (A)
|
(0.17)
|
(0.27)
|
(0.48)
|
(0.33)
|
||||||||
|
Impairment Charges (B)
|
-
|
(0.19)
|
(0.06)
|
(0.35)
|
||||||||
| Gain (Loss) on Sale of Consumer Publishing Programs (C) |
-
|
(0.06)
|
-
|
0.04
|
||||||||
| Operational Results of Divested Consumer Programs (D) |
|
-
|
(0.02)
|
-
|
0.01
|
|||||||
| One-time Tax Charge on Recorded Tax Reserves (E) | - |
|
(0.04)
|
-
|
(0.04)
|
|||||||
| Deferred Income Tax Benefit on UK Rate Change (E) |
|
-
|
-
|
0.18
|
0.14
|
|||||||
|
Adjusted Earnings Per Share - Diluted
|
$
|
0.77
|
$
|
0.71
|
$
|
3.05
|
$
|
2.92
|
||||
|
NOTES TO UNAUDITED FINANCIAL STATEMENTS
|
||||||||||||
|
Adjustments:
|
||||||||||||
|
(A)
|
RESTRUCTURING CHARGES: The adjusted results for the fourth quarter of fiscal years 2014 and 2013 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $15.4 million ($10.1 million after tax, $0.17 per share) and $24.5 million ($16.3 million after tax, $0.27 per share), respectively. The adjusted results for the twelve months ended April 30, 2014 and 2013 exclude restructuring charges related to the Restructuring and Reinvestment Program of $42.7 million ($28.3 million after tax, $0.48 per share) and $29.3 million ($19.8 million, $0.33 per share), respectively.
|
|||||||||||
|
(B)
|
Impairment Charges: The adjusted results for the fourth quarter and twelve months ended April 30, 2013 exclude asset impairment charges related to certain controlled circulation publishing programs in the Company's Research business and certain technology investments of $15.2 million ($11.4 million after tax, $0.19 per share). In addition, the twelve months ended April 30, 2014 exclude asset impairment charges related to certain technology investments of $4.8 million ($3.4 million after tax, $0.06 per share) and the twelve months ended April 30, 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/Loss on Sale of Consumer Publishing Programs: The adjusted results for the fourth quarter and twelve months ended April 30, 2013 exclude a loss on sale of certain Professional Development consumer publishing programs of $3.8 million ($3.6 million after tax, $0.06 per share). The twelve months ended April 30, 2013 also exclude a $9.8 million gain ($6.2 million after tax, $0.10 per share) on the sale of the Company's travel publishing program.
|
|||||||||||
|
(D)
|
Operating Results of Divested Consumer Programs: The adjusted results for the fourth quarter and twelve months ended April 30, 2013 exclude the operating results of the divested Professional Development consumer publishing programs sold in fiscal year 2013.
|
|||||||||||
|
(E)
|
One-time Tax Charge on Recorded Tax Reserves: The adjusted results for the fourth quarter and twelve months ended April 30, 2013 exclude a tax charge of $2.1 million ($0.04 per share) due to published IRS tax positions related to the Company's ability to take certain deductions in the U.S.
|
|||||||||||
|
|
Deferred Income Tax Benefit on UK Rate Change: The adjusted results for the twelve months ended April 30, 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 FOURTH QUARTER AND TWELVE MONTHS ENDED
|
|||||||||||||||||
|
APRIL 30, 2014 AND 2013
|
|||||||||||||||||
|
(in thousands)
|
|||||||||||||||||
|
FOURTH QUARTER ENDED APRIL 30,
|
|||||||||||||||||
|
2014
|
2013
|
% Change
|
|||||||||||||||
| US GAAP | Adjustments (A) | Adjusted | US GAAP | Adjustments (A-D) | Adjusted | US GAAP |
Adjusted
excl. FX
|
||||||||||
|
Revenue
|
|||||||||||||||||
|
Research
|
$
|
296,817
|
-
|
296,817
|
283,146
|
-
|
283,146
|
5%
|
2%
|
||||||||
|
Professional Development
|
93,037
|
-
|
93,037
|
100,135
|
(5,196)
|
94,939
|
-7%
|
-2%
|
|||||||||
|
Education
|
67,235
|
-
|
67,235
|
62,573
|
-
|
62,573
|
7%
|
10%
|
|||||||||
|
Total
|
$
|
457,089
|
-
|
457,089
|
445,854
|
(5,196)
|
440,658
|
3%
|
2%
|
||||||||
|
Direct Contribution to Profit
|
|||||||||||||||||
|
Research
|
$
|
137,307
|
3,184
|
140,491
|
120,339
|
12,862
|
133,201
|
14%
|
3%
|
||||||||
|
Professional Development
|
21,966
|
7,026
|
28,992
|
14,729
|
11,793
|
26,522
|
49%
|
9%
|
|||||||||
|
Education
|
5,269
|
516
|
5,785
|
4,678
|
1,119
|
5,797
|
13%
|
8%
|
|||||||||
|
Total
|
$
|
164,542
|
10,726
|
175,268
|
139,746
|
25,774
|
165,520
|
18%
|
4%
|
||||||||
|
Contribution to Profit (After Allocated Shared Services and Admin Costs)
|
|||||||||||||||||
|
Research
|
$
|
101,663
|
3,184
|
104,847
|
86,844
|
12,862
|
99,706
|
17%
|
3%
|
||||||||
|
Professional Development
|
2,438
|
7,026
|
9,464
|
(5,849)
|
11,793
|
5,944
|
-
|
58%
|
|||||||||
|
Education
|
(9,151)
|
516
|
(8,635)
|
(9,318)
|
1,119
|
(8,199)
|
2%
|
-3%
|
|||||||||
|
Total
|
$
|
94,950
|
10,726
|
105,676
|
71,677
|
25,774
|
97,451
|
32%
|
6%
|
||||||||
|
Unallocated Shared Services and Admin. Costs
|
(47,408)
|
4,669
|
(42,739)
|
(57,812)
|
19,346
|
(38,466)
|
-18%
|
11%
|
|||||||||
|
Operating Income
|
$
|
47,542
|
15,395
|
62,937
|
13,865
|
45,120
|
58,985
|
243%
|
3%
|
||||||||
|
Total Shared Services and Admin. Costs by Function
|
|||||||||||||||||
|
Distribution
|
$
|
(26,202)
|
3,421
|
(22,781)
|
(28,989)
|
4,307
|
(24,682)
|
-10%
|
-9%
|
||||||||
|
Technology Services
|
(50,165)
|
777
|
(49,388)
|
(55,943)
|
9,233
|
(46,710)
|
-10%
|
5%
|
|||||||||
|
Finance
|
(12,087)
|
(321)
|
(12,408)
|
(11,988)
|
1,982
|
(10,006)
|
1%
|
23%
|
|||||||||
|
Other Administration
|
(28,546)
|
792
|
(27,754)
|
(28,961)
|
3,824
|
(25,137)
|
-1%
|
10%
|
|||||||||
|
Total
|
$
|
(117,000)
|
4,669
|
(112,331)
|
(125,881)
|
19,346
|
(106,535)
|
-7%
|
5%
|
||||||||
|
TWELVE MONTHS ENDED APRIL 30,
|
|||||||||||||||||
|
2014
|
2013
|
% Change
|
|||||||||||||||
| US GAAP | Adjustments (A,B) | Adjustetd | US GAAP | Adjustments (A-D) | Adjusted | US GAAP | Adjusted excl. FX | ||||||||||
|
Revenue
|
|||||||||||||||||
|
Research
|
$
|
1,044,349
|
-
|
1,044,349
|
1,009,825
|
-
|
1,009,825
|
3%
|
3%
|
||||||||
|
Professional Development
|
363,869
|
-
|
363,869
|
416,495
|
(45,555)
|
370,940
|
-13%
|
-2%
|
|||||||||
|
Education
|
366,977
|
-
|
366,977
|
334,458
|
-
|
334,458
|
10%
|
12%
|
|||||||||
|
Total
|
$
|
1,775,195
|
-
|
1,775,195
|
1,760,778
|
(45,555)
|
1,715,223
|
1%
|
4%
|
||||||||
|
Direct Contribution to Profit
|
|||||||||||||||||
|
Research
|
$
|
447,139
|
7,774
|
454,913
|
420,963
|
15,828
|
436,791
|
6%
|
4%
|
||||||||
|
Professional Development
|
98,725
|
11,860
|
110,585
|
86,678
|
16,056
|
102,734
|
14%
|
8%
|
|||||||||
|
Education
|
107,956
|
891
|
108,847
|
103,828
|
1,288
|
105,116
|
4%
|
7%
|
|||||||||
|
Total
|
$
|
653,820
|
20,525
|
674,345
|
611,469
|
33,172
|
644,641
|
7%
|
5%
|
||||||||
| Contribution to Profit (After Allocated Shared Services and Admin. Costs) | |||||||||||||||||
|
Research
|
$
|
307,893
|
7,774
|
315,667
|
286,506
|
15,828
|
302,334
|
7%
|
4%
|
||||||||
|
Professional Development
|
20,382
|
11,860
|
32,242
|
5,446
|
16,056
|
21,502
|
-
|
50%
|
|||||||||
|
Education
|
49,868
|
891
|
50,759
|
50,745
|
1,288
|
52,033
|
-2%
|
2%
|
|||||||||
|
Total
|
$
|
378,143
|
20,525
|
398,668
|
342,697
|
33,172
|
375,869
|
10%
|
6%
|
||||||||
| Unallocated Shared Services and Admin. Costs |
(171,470)
|
26,983
|
(144,487)
|
(143,270)
|
19,798
|
(123,472)
|
20%
|
18%
|
|||||||||
|
Operating Income
|
$
|
206,673
|
47,508
|
254,181
|
199,427
|
52,970
|
252,397
|
4%
|
1%
|
||||||||
|
Total Shared Services and Admin. Costs by Function
|
|||||||||||||||||
|
Distribution
|
$
|
(102,139)
|
6,012
|
(96,127)
|
(106,578)
|
4,500
|
(102,078)
|
-4%
|
-5%
|
||||||||
|
Technology Services
|
(197,289)
|
14,020
|
(183,269)
|
(171,105)
|
9,489
|
(161,616)
|
15%
|
13%
|
|||||||||
|
Finance
|
(45,261)
|
561
|
(44,700)
|
(43,251)
|
1,982
|
(41,269)
|
5%
|
9%
|
|||||||||
|
Other Administration
|
(102,458)
|
6,390
|
(96,068)
|
(91,108)
|
3,827
|
(87,281)
|
12%
|
11%
|
|||||||||
|
Total
|
$
|
(447,147)
|
26,983
|
(420,164)
|
(412,042)
|
19,798
|
(392,244)
|
9%
|
7%
|
||||||||
| 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 FOURTH QUARTER AND TWELVE MONTHS ENDED
|
||||||||||||||||||
|
APRIL 30, 2014 AND 2013
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||
|
Fourth Quarter Ended
|
Twelve Months Ended
|
|||||||||||||||||
|
April 30,
|
April 30,
|
|||||||||||||||||
|
2014
|
2013
|
% Change
|
% Change excl. FX
|
2014
|
2013
|
% Change
|
% Change excl. FX
|
|||||||||||
|
Research:
|
||||||||||||||||||
|
Direct Contribution to Profit
|
$
|
137,307
|
120,339
|
14%
|
11%
|
447,139
|
420,963
|
6%
|
6%
|
|||||||||
|
Restructuring Charges (Credits) (A)
|
3,184
|
2,945
|
7,774
|
5,911
|
||||||||||||||
|
Impairment Charges (B)
|
-
|
9,917
|
-
|
9,917
|
||||||||||||||
|
Adjusted Direct Contribution to Profit
|
140,491
|
133,201
|
5%
|
3%
|
454,913
|
436,791
|
4%
|
4%
|
||||||||||
|
Allocated Shared Services and Admin. Costs:
|
||||||||||||||||||
|
Distribution
|
(10,515)
|
(11,196)
|
-6%
|
-9%
|
(44,229)
|
(46,009)
|
-4%
|
-4%
|
||||||||||
|
Technology
|
(18,931)
|
(16,368)
|
16%
|
11%
|
(73,238)
|
(66,105)
|
11%
|
10%
|
||||||||||
|
Occupancy and Other
|
(6,198)
|
(5,931)
|
5%
|
3%
|
(21,779)
|
(22,343)
|
-3%
|
-3%
|
||||||||||
|
Adjusted Contribution to Profit (after allocated
|
$
|
104,847
|
99,706
|
5%
|
3%
|
315,667
|
302,334
|
4%
|
4%
|
|||||||||
|
Shared Services and Admin. Costs)
|
||||||||||||||||||
|
Professional Development:
|
||||||||||||||||||
|
Direct Contribution to Profit
|
$
|
21,966
|
14,729
|
49%
|
48%
|
98,725
|
86,678
|
14%
|
14%
|
|||||||||
|
Restructuring Charges (Credits) (A)
|
7,026
|
6,283
|
11,860
|
7,537
|
||||||||||||||
|
Impairment Charges (B)
|
-
|
-
|
-
|
15,521
|
||||||||||||||
| Loss (Gain) on Sale of Consumer Publishing Programs (C) |
-
|
3,846
|
-
|
(5,983)
|
||||||||||||||
| Direct Contribution to profit - Divested Consumer Publishing Programs (D) |
-
|
1,664
|
-
|
(1,019)
|
||||||||||||||
|
Adjusted Direct Contribution to Profit
|
28,992
|
26,522
|
9%
|
9%
|
110,585
|
102,734
|
8%
|
8%
|
||||||||||
|
Allocated Shared Services and Admin. Costs:
|
||||||||||||||||||
|
Distribution
|
(8,297)
|
(9,727)
|
-15%
|
-15%
|
(36,158)
|
(40,664)
|
-11%
|
-10%
|
||||||||||
|
Technology
|
(8,339)
|
(7,524)
|
11%
|
11%
|
(31,599)
|
(29,187)
|
8%
|
8%
|
||||||||||
|
Occupancy and Other
|
(2,892)
|
(3,327)
|
-13%
|
-13%
|
(10,586)
|
(11,381)
|
-7%
|
-6%
|
||||||||||
|
Adjusted Contribution to Profit (after allocated
|
$
|
9,464
|
5,944
|
59%
|
58%
|
32,242
|
21,502
|
50%
|
50%
|
|||||||||
|
Shared Services and Admin. Costs)
|
||||||||||||||||||
|
Education:
|
||||||||||||||||||
|
Direct Contribution to Profit
|
$
|
5,269
|
4,678
|
13%
|
23%
|
107,956
|
103,828
|
4%
|
7%
|
|||||||||
|
Restructuring Charges (A)
|
516
|
1,119
|
891
|
1,288
|
||||||||||||||
|
Adjusted Direct Contribution to Profit
|
5,785
|
5,797
|
0%
|
8%
|
108,847
|
105,116
|
4%
|
7%
|
||||||||||
|
Allocated Shared Services and Admin. Costs:
|
||||||||||||||||||
|
Distribution
|
(3,531)
|
(3,631)
|
-3%
|
0%
|
(15,286)
|
(15,277)
|
0%
|
3%
|
||||||||||
|
Technology
|
(8,599)
|
(8,179)
|
5%
|
6%
|
(34,401)
|
(30,727)
|
12%
|
13%
|
||||||||||
|
Occupancy and Other
|
(2,290)
|
(2,186)
|
5%
|
9%
|
(8,401)
|
(7,079)
|
19%
|
22%
|
||||||||||
|
Adjusted Contribution to Profit (after allocated
|
$
|
(8,635)
|
(8,199)
|
-5%
|
-3%
|
50,759
|
52,033
|
-2%
|
2%
|
|||||||||
|
Shared Services and Admin. Costs)
|
||||||||||||||||||
|
Total Adjusted Contribution to Profit (after allocated Shared Services and Admin. Costs)
|
$
|
105,676
|
97,451
|
8%
|
6%
|
398,668
|
375,869
|
6%
|
6%
|
|||||||||
|
Unallocated Shared Services and Admin. Costs:
|
||||||||||||||||||
|
Unallocated Shared Services and Admin. Costs
|
(47,408)
|
(57,812)
|
-18%
|
-18%
|
(171,470)
|
(143,270)
|
20%
|
20%
|
||||||||||
|
Restructuring Charges (A)
|
4,669
|
14,105
|
22,197
|
14,557
|
||||||||||||||
|
Impairment Charges (B)
|
-
|
5,241
|
4,786
|
5,241
|
||||||||||||||
|
Adjusted Unallocated Shared Services and Admin. Costs
|
$
|
(42,739)
|
(38,466)
|
11%
|
11%
|
(144,487)
|
(123,472)
|
17%
|
18%
|
|||||||||
|
Adjusted Operating Income
|
$
|
62,937
|
58,985
|
7%
|
3%
|
254,181
|
252,397
|
1%
|
1%
|
|||||||||
| See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment. | ||||||||||||||||||
|
JOHN WILEY & SONS, INC.
|
|||||||||||||||||||
|
SEGMENT REVENUE STATISTICS
|
|||||||||||||||||||
|
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED
|
|||||||||||||||||||
|
APRIL 30, 2014 AND 2013
|
|||||||||||||||||||
|
(in millions)
|
|||||||||||||||||||
|
Fourth Quarter
|
Twelve Months
|
||||||||||||||||||
|
Ended April 30,
|
Ended April 30,
|
|
|||||||||||||||||
| RESEARCH | 2014 | 2013 | % of revenue | % Change excl. FX | 2014 | 2013 | % of Revenue | % Change excl. FX | |||||||||||
|
Revenue by Product/Service:
|
|||||||||||||||||||
|
Journal Subscriptions
|
$
|
188,939
|
179,973
|
64%
|
2%
|
$
|
667,313
|
641,584
|
64%
|
4%
|
|||||||||
|
Print Books
|
24,652
|
26,615
|
8%
|
-9%
|
114,135
|
127,894
|
11%
|
-11%
|
|||||||||||
|
Digital Books
|
16,105
|
11,726
|
5%
|
32%
|
47,693
|
36,856
|
5%
|
27%
|
|||||||||||
|
Open Access
|
6,135
|
2,530
|
2%
|
142%
|
17,673
|
6,221
|
2%
|
184%
|
|||||||||||
|
Other (Advertising, Backfiles, Rights, )
|
60,986
|
62,302
|
21%
|
-5%
|
197,535
|
197,270
|
18%
|
0%
|
|||||||||||
|
Total Revenue
|
$
|
296,817
|
283,146
|
100%
|
2%
|
$
|
1,044,349
|
1,009,825
|
100%
|
3%
|
|||||||||
|
Revenue by Subject Category:
|
|||||||||||||||||||
|
Medicine
|
$
|
84,849
|
85,478
|
29%
|
-3%
|
$
|
297,775
|
298,241
|
29%
|
0%
|
|||||||||
|
Physical Sciences & Engineering
|
84,123
|
77,942
|
28%
|
5%
|
293,592
|
283,626
|
28%
|
2%
|
|||||||||||
|
Life Sciences
|
75,496
|
71,303
|
25%
|
3%
|
262,029
|
238,960
|
25%
|
9%
|
|||||||||||
|
Social Sciences & Humanities
|
51,544
|
47,595
|
18%
|
4%
|
187,092
|
185,355
|
18%
|
1%
|
|||||||||||
|
Other
|
805
|
828
|
0%
|
-3%
|
3,861
|
3,643
|
0%
|
6%
|
|||||||||||
|
Total Revenue
|
$
|
296,817
|
283,146
|
100%
|
2%
|
$
|
1,044,349
|
1,009,825
|
100%
|
3%
|
|||||||||
|
Fourth Quarter
|
Twelve Months
|
||||||||||||||||||
|
Ended April 30,
|
|
|
Ended April 30,
|
|
|
||||||||||||||
| PROFESSIONAL DEVELOPMENT | 2014 | 2013 | % of Revenue | % Change excl. FX (a) | 2014 | 2013 | % of Revenue | % Change excl. FX (a) | |||||||||||
|
Revenue by Product/Service:
|
|||||||||||||||||||
|
Print Books
|
$
|
52,925
|
58,774
|
57%
|
-10%
|
$
|
236,317
|
257,842
|
65%
|
-8%
|
|||||||||
|
Digital Books
|
13,395
|
14,450
|
14%
|
-8%
|
47,747
|
43,251
|
13%
|
10%
|
|||||||||||
|
Online Training & Assessment
|
13,488
|
8,807
|
14%
|
53%
|
40,201
|
29,854
|
11%
|
35%
|
|||||||||||
|
Other (Rights, Advertising, etc)
|
13,229
|
12,908
|
15%
|
3%
|
39,604
|
39,993
|
11%
|
0%
|
|||||||||||
|
Divested Consumer Publishing Programs
|
-
|
5,196
|
-
|
45,555
|
|||||||||||||||
|
Total Revenue
|
$
|
93,037
|
100,135
|
100%
|
-2%
|
$
|
363,869
|
416,495
|
100%
|
-2%
|
|||||||||
|
Revenue by Subject Category:
|
|||||||||||||||||||
|
Business and Finance
|
$
|
47,607
|
44,642
|
51%
|
6%
|
$
|
170,870
|
162,602
|
47%
|
5%
|
|||||||||
|
Technology
|
19,832
|
22,486
|
21%
|
-12%
|
77,229
|
86,431
|
21%
|
-10%
|
|||||||||||
|
Consumer
|
10,400
|
12,246
|
11%
|
-15%
|
40,867
|
45,675
|
11%
|
-10%
|
|||||||||||
|
Professional Education
|
6,466
|
6,427
|
7%
|
1%
|
29,209
|
27,722
|
8%
|
6%
|
|||||||||||
|
Architecture
|
4,079
|
4,073
|
4%
|
-2%
|
22,365
|
23,284
|
6%
|
-4%
|
|||||||||||
|
Psychology
|
3,478
|
3,584
|
4%
|
-3%
|
16,290
|
17,014
|
4%
|
-4%
|
|||||||||||
|
Other
|
1,175
|
1,481
|
2%
|
-14%
|
7,039
|
8,212
|
3%
|
-9%
|
|||||||||||
|
Divested Consumer Publishing Programs
|
-
|
5,196
|
-
|
45,555
|
|||||||||||||||
|
Total Revenue
|
$
|
93,037
|
100,135
|
100%
|
-2%
|
$
|
363,869
|
416,495
|
100%
|
-2%
|
|||||||||
|
Note (a) - Variance excludes the revenue of the divested Professional Development consumer publishing programs sold in fiscal year 2013.
|
|||||||||||||||||||
|
Fourth Quarter
|
Twelve Months
|
||||||||||||||||||
|
Ended April 30,
|
|
|
Ended April 30,
|
|
|
||||||||||||||
| EDUCATION | 2014 | 2013 | % of Revenue | % Change excl. FX | 2014 | 2013 | % of Revenue | % Change excl. FX | |||||||||||
|
Revenue by Product/Service:
|
|||||||||||||||||||
|
Print Textbooks
|
$
|
22,221
|
24,256
|
33%
|
-5%
|
$
|
163,153
|
184,131
|
44%
|
-9%
|
|||||||||
|
Binder and Custom Products
|
(414)
|
55
|
-1%
|
-853%
|
43,556
|
39,315
|
12%
|
11%
|
|||||||||||
|
Online Program Management (Deltak)
|
19,792
|
16,600
|
29%
|
19%
|
70,188
|
33,745
|
19%
|
||||||||||||
|
Digital Books
|
8,612
|
6,357
|
13%
|
40%
|
30,136
|
25,359
|
8%
|
21%
|
|||||||||||
|
WileyPLUS
|
13,867
|
11,884
|
21%
|
18%
|
49,457
|
40,989
|
13%
|
22%
|
|||||||||||
|
Other
|
3,157
|
3,421
|
5%
|
-5%
|
10,487
|
10,919
|
4%
|
2%
|
|||||||||||
|
Total Revenue
|
$
|
67,235
|
62,573
|
100%
|
10%
|
$
|
366,977
|
334,458
|
100%
|
12%
|
|||||||||
|
Revenue by Subject Category:
|
|||||||||||||||||||
|
Business
|
$
|
16,486
|
14,159
|
25%
|
19%
|
$
|
82,841
|
78,599
|
23%
|
7%
|
|||||||||
|
Sciences
|
8,499
|
8,838
|
13%
|
-2%
|
62,063
|
62,240
|
17%
|
1%
|
|||||||||||
|
Social Sciences
|
7,292
|
7,380
|
11%
|
0%
|
47,563
|
49,194
|
13%
|
-2%
|
|||||||||||
|
Engineering & Computer Science
|
5,087
|
5,768
|
8%
|
-10%
|
37,859
|
43,247
|
10%
|
-11%
|
|||||||||||
|
Mathematics & Statistics
|
2,821
|
2,265
|
4%
|
25%
|
24,720
|
23,631
|
7%
|
5%
|
|||||||||||
|
Schools (Australia K-12)
|
2,888
|
2,907
|
4%
|
13%
|
27,229
|
28,081
|
7%
|
9%
|
|||||||||||
|
Online Program Management (Deltak)
|
19,792
|
16,600
|
29%
|
19%
|
70,188
|
33,745
|
19%
|
||||||||||||
|
Other
|
4,370
|
4,656
|
6%
|
0%
|
14,514
|
15,721
|
4%
|
-4%
|
|||||||||||
|
Total Revenue
|
$
|
67,235
|
62,573
|
100%
|
10%
|
$
|
366,977
|
334,458
|
100%
|
12%
|
|||||||||
|
JOHN WILEY & SONS, INC.
|
|||||
|
UNAUDITED STATEMENTS OF FINANCIAL POSITION
|
|||||
|
(in thousands)
|
|||||
|
April 30,
|
|||||
|
2014
|
2013
|
||||
|
Current Assets
|
|||||
|
Cash & cash equivalents
|
$
|
486,377
|
334,140
|
||
|
Accounts receivable
|
149,733
|
161,731
|
|||
|
Inventories
|
75,495
|
82,017
|
|||
|
Prepaid and other
|
79,457
|
57,083
|
|||
|
Total Current Assets
|
791,062
|
634,971
|
|||
|
Product Development Assets
|
82,940
|
87,876
|
|||
|
Technology, Property and Equipment
|
188,718
|
189,625
|
|||
|
Intangible Assets
|
984,661
|
954,957
|
|||
|
Goodwill
|
903,665
|
835,540
|
|||
|
Income Tax Deposits
|
64,037
|
45,868
|
|||
|
Other Assets
|
63,682
|
57,538
|
|||
|
Total Assets
|
3,078,765
|
2,806,375
|
|||
|
Current Liabilities
|
|||||
|
Accounts and royalties payable
|
142,534
|
143,313
|
|||
|
Deferred revenue
|
385,654
|
362,970
|
|||
|
Accrued employment costs
|
118,503
|
85,306
|
|||
|
Accrued income taxes
|
13,324
|
16,093
|
|||
|
Accrued pension liability
|
4,671
|
4,359
|
|||
|
Other accrued liabilities
|
64,901
|
55,128
|
|||
|
Total Current Liabilities
|
729,587
|
667,169
|
|||
|
Long-Term Debt
|
700,100
|
673,000
|
|||
|
Accrued Pension Liability
|
164,634
|
204,362
|
|||
|
Deferred Income Tax Liabilities
|
223,882
|
197,526
|
|||
|
Other Long-Term Liabilities
|
78,314
|
75,962
|
|||
|
Shareholders' Equity
|
1,182,248
|
988,356
|
|||
|
Total Liabilities & Shareholders' Equity
|
$
|
3,078,765
|
2,806,375
|
||
|
JOHN WILEY & SONS, INC.
|
|||||
|
UNAUDITED STATEMENTS OF FREE CASH FLOW
|
|||||
|
(in thousands)
|
|||||
|
Twelve Months Ended
|
|||||
|
April 30,
|
|||||
|
2014
|
2013
|
||||
|
Operating Activities:
|
|||||
|
Net income
|
$
|
160,510
|
144,225
|
||
|
Amortization of intangibles
|
44,679
|
41,982
|
|||
|
Amortization of composition costs
|
45,097
|
51,517
|
|||
|
Depreciation of technology, property and equipment
|
58,321
|
56,017
|
|||
|
Restructuring and impairment charges
|
47,508
|
59,972
|
|||
|
Gain, net of losses, on sale of consumer publishing programs
|
-
|
(5,983)
|
|||
|
Deferred tax benefits on U.K. rate changes
|
(10,634)
|
(8,402)
|
|||
|
Share-based compensation expense
|
12,851
|
11,928
|
|||
|
Excess tax benefits from share-based compensation
|
1,466
|
(193)
|
|||
|
Employee retirement plan expense
|
30,454
|
35,938
|
|||
|
Royalty advances
|
(107,639)
|
(105,335)
|
|||
|
Earned royalty advances
|
107,529
|
100,691
|
|||
|
Other non-cash charges and credits
|
(2,468)
|
(3,708)
|
|||
|
Income tax deposit
|
(11,968)
|
(42,077)
|
|||
|
Change in deferred revenue
|
(750)
|
32,822
|
|||
|
Restructuring payments
|
(28,276)
|
(5,641)
|
|||
|
Net change in operating assets and liabilities, excluding acquisitions
|
1,544
|
(26,716)
|
|||
|
Cash Provided by Operating Activities
|
348,224
|
337,037
|
|||
|
Investments in organic growth:
|
|||||
|
Composition spending
|
(40,568)
|
(50,434)
|
|||
|
Additions to technology, property and equipment
|
(57,564)
|
(58,704)
|
|||
|
Free Cash Flow
|
250,092
|
227,899
|
|||
|
Other Investing and Financing Activities:
|
|||||
|
Acquisitions, net of cash
|
(54,515)
|
(263,272)
|
|||
|
Proceeds from sale of consumer publishing programs
|
3,300
|
29,942
|
|||
|
Repayment of long-term debt
|
(658,224)
|
(472,500)
|
|||
|
Borrowings of long-term debt
|
685,324
|
670,500
|
|||
|
Change in book overdrafts
|
(12,354)
|
(451)
|
|||
|
Cash dividends
|
(58,953)
|
(57,426)
|
|||
|
Purchase of treasury shares
|
(63,393)
|
(73,721)
|
|||
|
Proceeds from exercise of stock options and other
|
55,532
|
23,806
|
|||
|
Excess tax benefits from share-based compensation
|
(1,466)
|
193
|
|||
|
Cash Used for Investing and Financing Activities
|
(104,749)
|
(142,929)
|
|||
|
Effects of Exchange Rate Changes on Cash
|
6,894
|
(10,660)
|
|||
|
Increase in Cash and Cash Equivalents for Period
|
$
|
152,237
|
74,310
|
||
|
RECONCILIATION TO GAAP PRESENTATION
|
|||||
|
Investing Activities:
|
|||||
|
Composition spending
|
$
|
(40,568)
|
(50,434)
|
||
|
Additions to technology, property and equipment
|
(57,564)
|
(58,704)
|
|||
|
Acquisitions, net of cash
|
(54,515)
|
(263,272)
|
|||
|
Proceeds from sale of consumer publishing programs
|
3,300
|
29,942
|
|||
|
Cash Used for Investing Activities
|
$
|
(149,347)
|
(342,468)
|
||
|
Financing Activities:
|
|||||
|
Cash Used for Investing and Financing Activities
|
$
|
(104,749)
|
(142,929)
|
||
|
Excluding:
|
|||||
|
Acquisitions, net of cash
|
(54,515)
|
(263,272)
|
|||
|
Proceeds from sale of consumer publishing programs
|
3,300
|
29,942
|
|||
|
Cash (Used for) Provided by Financing Activities
|
$
|
(53,534)
|
90,401
|
||
|
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.
|
|||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized
|
JOHN WILEY & SONS, INC.
|
|
|
Registrant
|
|
By
|
/s/ Stephen M. Smith
|
|
|
Stephen M. Smith
|
||
|
President and Chief Executive Officer
|
|
By
|
/s/ John A. Kritzmacher
|
|
|
John A. Kritzmacher
|
||
|
Executive Vice President and
|
||
|
Chief Financial Officer
|
||
|
Dated: June 17, 2014
|