JOHN WILEY & SONS, INC. (NYSE:JW.A) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
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JOHN WILEY & SONS, INC. (NYSE:JW.A) Files An 8-K Results of Operations and Financial Condition
ITEM 2.02:RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

Revenue

Education Services (Online Program Management)

$

26,337

–

26,337

23,172

–

23,172

14%

14%

Professional Assessment

14,887

–

14,887

13,522

–

13,522

10%

10%

Corporate Learning

15,315

15,315

15,406

–

15,406

-1%

-1%

Total Solutions Revenue

56,539

–

56,539

52,100

–

52,100

9%

9%

Contribution to Profit

(1,968)

2,795

–

N/M

N/M

Corporate Expenses

(50,002)

10,844

(39,158)

(36,087)

(1,204)

(37,291)

39%

6%

Operating Income

$

14,500

29,329

43,829

43,814

(920)

42,894

-67%

-13%

(A) See the accompanying Notes to Unaudited Financial Statements for a description of the adjustment.

N/M- Not Meaningful

JOHN WILEY & SONS, INC.

UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION

(in thousands)

July 31,

April 30,

Current Assets

Cash and cash equivalents

$

84,113

185,894

58,516

Accounts receivable

198,576

213,968

188,679

Inventories

47,892

54,822

47,852

Prepaid and other

66,177

119,392

64,688

Total Current Assets

396,758

574,076

359,735

Product Development Assets

68,773

39,239

70,955

Royalty Advances

21,578

24,883

28,320

Technology, Property and Equipment

265,291

214,740

252,488

Intangible Assets

833,676

831,249

828,099

Goodwill

996,000

916,690

982,101

Income Tax Deposits

–

62,200

–

Other Assets

85,028

80,185

84,519

Total Assets

2,667,104

2,743,262

2,606,217

Current Liabilities

Accounts and royalties payable

141,034

138,397

139,206

Deferred revenue

334,625

321,616

436,235

Accrued employment costs

81,245

55,241

98,185

Accrued income taxes

24,605

3,368

22,222

Accrued pension liability

5,820

5,467

5,776

Other accrued liabilities

83,509

69,042

86,232

Total Current Liabilities

670,838

593,131

787,856

Long-Term Debt

551,645

653,000

365,000

Accrued Pension Liability

212,843

206,814

214,597

Deferred Income Tax Liabilities

150,425

191,388

160,491

Other Long-Term Liabilities

72,135

82,521

75,136

Shareholders' Equity

1,009,218

1,016,408

1,003,137

Total Liabilities & Shareholders' Equity

$

2,667,104

2,743,262

2,606,217

JOHN WILEY & SONS, INC.

UNAUDITED CONDENSED STATEMENTS OF FREE CASH FLOW

(in thousands)

Three Months Ended

July 31,

Operating Activities:

Net income

$

9,236

31,014

Amortization of intangibles

12,619

12,573

Amortization of product development spending

9,644

9,731

Depreciation of technology, property and equipment

18,540

17,125

Non-cash charges and credits

32,045

20,231

Net change in operating assets and liabilities

(163,915)

(227,386)

Cash Used for Operating Activities

(81,831)

(136,712)

Investments in organic growth:

Additions to technology, property and equipment

(30,111)

(20,778)

Product development spending

(5,907)

(7,989)

Free Cash Flow less Product Development Spending

(117,849)

(165,479)

Other Investing and Financing Activities:

Acquisitions, net of cash

(4,413)

(8,600)

Net debt borrowings

185,964

47,993

Change in book overdrafts

(13,977)

(12,261)

Cash dividends

(18,382)

(17,914)

Purchase of treasury shares

(14,016)

(11,289)

Proceeds from exercise of stock options and other

5,599

13,689

Cash Provided by Investing and Financing Activities

140,775

11,618

Effects of Exchange Rate Changes on Cash

2,671

(24,051)

Increase (Decrease) in Cash and Cash Equivalents for Period

$

25,597

(177,912)

RECONCILIATION TO GAAP PRESENTATION

Investing Activities:

Product development spending

$

(5,907)

(7,989)

Additions to technology, property and equipment

(30,111)

(20,778)

Acquisitions, net of cash

(4,413)

(8,600)

Cash Used for Investing Activities

$

(40,431)

(37,367)

Financing Activities:

Cash Provided by Investing and Financing Activities

$

140,775

11,618

Excluding:

Acquisitions, net of cash

(4,413)

(8,600)

Cash Provided by Financing Activities

$

145,188

20,218

Free Cash Flow less Product Development Spending:

The Company provides financial measures referred to as "Free Cash Flow less Product Development Spending." Free Cash Flow less Product Development Spending is defined as "cash flow from operating activities, less book composition and other product development and capital spending." Management believes this metric provides additional information to investors to facilitate the comparison of past and present results. This metric is also used internally by management in evaluating results. This non-GAAP measure is not intended to replace the financial results reported in accordance with US Generally Accepted Accounting Principles.


About JOHN WILEY & SONS, INC. (NYSE:JW.A)

John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development 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, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.