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