John Wiley & Sons, Inc. Reports 13% EPS Increase for Second Quarter of Fiscal Year 2004 Excluding One-Time Tax Benefit Reported in Fiscal Year 2003.Business Editors HOBOKEN, N.J.--(BUSINESS WIRE)--Dec. 2, 2003 John Wiley John Wiley may refer to:
See: New York Stock Exchange :JWa) (NYSE:JWb) announced today that earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share and net income for the second quarter of fiscal year 2004 increased 13% to $0.41 and $25.6 million, respectively. These results exclude a one-time tax benefit of $12.0 million, or $0.19 per diluted share, reported in the second quarter of fiscal year 2003. Revenue for the second quarter advanced 3% to $228.9 million from $223.0 million in the prior year. This increase was driven by foreign exchange translation benefits, journal performance globally and Higher Education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. results. For the first half of fiscal year 2004, revenue advanced 4%, or 2% excluding foreign currency translation gains. Net income for the six-month period increased 7%, excluding unusual charges related to the Company's relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. to Hoboken, New Jersey Hoboken is a city in Hudson County, New Jersey, United States. Geography Hoboken is located at 40°44'41" North, 74°1'59" West (40.744851, -74.032941).GR1 and the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. one-time tax benefit, both of which were reported in the prior year. On the same basis, earnings per share increased 8% from $0.70 to $0.75. "Second quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results were essentially as expected. Assuming gradual improvement in market conditions throughout the balance of the year, we expect growth in fiscal year 2004 of approximately 4-6% for revenue and in the mid to high single digits for EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , excluding the unusual items reported in fiscal year 2003," said William J. Pesce, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Professional/Trade (P/T P/T Part Time P/T Pass-Through P/T Powertrain (automotive) P/T Province/Territory P/T Pressure Transmitter P/T Paris/Torres (Star Trek characters) P/T Peak & Trough P/T Press to Talk P/T Precision over Tolerance ) Revenue of Wiley's U.S. P/T business declined 3% during the second quarter versus the same period last year, reflecting lower backlist back·list n. A publisher's list of older titles kept in print. tr.v. back·list·ed, back·list·ing, back·lists To place (a title) on a backlist. sales of consumer technology and business titles, partially offset by strong culinary cu·li·nar·y adj. Of or relating to a kitchen or to cookery. [Latin cul  n and architecture sales and improved sales
returns. While the second quarter started slowly, sales recovered nicely
in October. Year-to-date revenue was up 2%.In a soft technology market, Wiley continues to strengthen its market position, as evidenced by the success of new releases, such as Windows XP The previous client version of Windows. XP was a major upgrade to the client version of Windows 2000 with numerous changes to the user interface. XP improved support for gaming, digital photography, instant messaging, wireless networking and sharing connections to the Internet. Timesaving time·sav·ing adj. Serving to save time through an efficient method or a shorter route; expeditious. time Techniques For Dummies, Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the For Dummies, 9th edition, and PCs For Dummies, 9th edition. The professional segment showed some initial signs of improvement during the quarter. Five Wiley business titles appeared on major bestseller lists, including Bonner/Financial Reckoning Day, Lencioni/Five Dysfunctions of a Team: A Leadership Fable fable, brief allegorical narrative, in verse or prose, illustrating a moral thesis or satirizing human beings. The characters of a fable are usually animals who talk and act like people while retaining their animal traits. , Tyson and Brown/Home Buying For Dummies, Garcia/Message From Garcia and Gitomer/Sales Bible Bible [Gr.,=the books], term used since the 4th cent. to denote the Christian Scriptures and later, by extension, those of various religious traditions. This article discusses the nature of religious scripture generally and the Christian Scriptures specifically, as . The first Wiley edition of the Stock Trader's Almanac almanac, originally, a calendar with notations of astronomical and other data. Almanacs have been known in simple form almost since the invention of writing, for they served to record religious feasts, seasonal changes, and the like. 2004 by Jeff Hirsch was published in the quarter. This highly regarded and frequently cited reference tool has been a mainstay on Wall Street for three decades. Some of Wiley's consumer programs performed particularly well during the quarter despite weakness in the retail environment. Dershowitz/The Case for Israel hit numerous bestseller lists including The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times and USA Today USA Today National U.S. daily general-interest newspaper, the first of its kind. Launched in 1982 by Allen Neuharth, head of the Gannett newspaper chain, it reached a circulation of one million within a year and surpassed two million in the 1990s. . Kinzer/All the Shah's Men: An American Coup and the Roots of Middle East Terror and Armey's Axioms This is a list of axioms as that term is understood in mathematics, by Wikipedia page. In epistemology, the word axiom is understood differently; see axiom and self-evidence. Individual axioms are almost always part of a larger axiomatic system. by former Majority Leader of the U.S. House of Representatives Dick Armey are performing well. The Company recently signed an agreement with Target, Inc., to create a For Dummies brand extension series. Three one-hour television specials, Dating For Dummies, Making Marriage Work For Dummies and Parenting For Dummies, premiered on the Discovery Health Channel in September. Wiley's culinary program had an excellent quarter with the release of a strong list that included such titles as Cooking at Home with the Culinary Institute of America and Wolfert/Slow Mediterranean Cooking. James Villas, author of Between Bites and a forthcoming collection of essays on food, was named "Best Food Writer" of the year by Bon Appetit magazine. Wiley launched a Betty Crocker Betty Crocker, an invented persona and mascot, is a brand name and trademark of American food company General Mills. The name was first developed by the Washburn Crosby Company in 1921 as a way to give a personalized response to consumer product questions. microsite on FoodTV.com to increase the brand's presence and drive sales. During the quarter, the Company agreed to participate in the development of a 13-part television series featuring Mark Bittman Mark Bittman is a well-known U.S. cookbook author and food writer. He lives in New York. He is not a trained chef, but came to cooking through journalism. Bittman writes the New York Times weekly column "The Minimalist" and is the author of numerous award-winning cookbooks , author of the best-seller How to Cook Everything. The series, which will air in the fall of next year, will include 30-second spot ads featuring Wiley books. A book tie-in is being developed for simultaneous publication. P/T's professional and academic programs in architecture and culinary/hospitality performed well during the quarter. Sales were led by McGowan/Interior Graphic Standards. The Company signed an extension of its agreement with the National Restaurant Association Educational Foundation to distribute leading books on food sanitation sanitation: see plumbing; sanitary science. . Scientific, Technical, and Medical (STM (Scanning Tunneling Microscope) A microscope that can image down to the atomic level. An STM uses a piezoelectric tube with a tiny sharp tip at the end that is moved within nanometers of the object being sampled. ) Wiley's U.S. STM revenue was essentially flat with prior year in the quarter and for the six months. Increased journal revenue, despite the adverse impact of the Rowecom bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most , and higher online protocols sales were partially offset by lower advertising revenue and continued weakness in the STM book market. Globally, STM journal revenue increased approximately 6% in the second quarter and 5% for the six months. During the quarter, Wiley phased in a new electronic journal production management system, a key component of our integrated online publishing program that will accelerate delivery of journal content to our customers. Wiley's STM digital access business, which utilizes the Wiley InterScience platform, continued to add functionality for customers with the launch of a comprehensive redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of underlying information architecture and graphical interface See GUI. . These enhancements accommodate the expanding scope of content and deliver a more intuitive, consistent and engaging interface to a global user community of well over 13 million scholars and researchers. The Wiley InterScience calendar year 2004 license renewal process began during the second quarter and is proceeding as expected. Several licenses were signed during the quarter. Fourteen more universities joined the Chinese Academic Libraries Information Service (CALIS CALIS China Academic Library & Information System (cooperative library cataloging system) CALIS Covariance Analysis of Linear Structural Equations (SAS procedure) ) consortium agreement, which is Wiley's first major license in China. Wiley took a leadership role in the October launch of an initiative, which includes the United Nations' Food and Agriculture Organization (FAO FAO, n See Food and Agriculture Organization. ), The Rockefeller Foundation Rockefeller Foundation, philanthropic institution established (1913) by John D. Rockefeller, Sr., to promote "the well-being of mankind throughout the world." During its first 14 years the foundation received $183 million from Rockefeller. , Cornell University Cornell University, mainly at Ithaca, N.Y.; with land-grant, state, and private support; coeducational; chartered 1865, opened 1868. It was named for Ezra Cornell, who donated $500,000 and a tract of land. With the help of state senator Andrew D. and STM publishers. This initiative, known as AGORA, will provide researchers in developing countries with free access to journal content about food, agriculture, and water resources. AGORA builds on the success of HINARI HINARI Health InterNetwork Access to Research Initiative , a similar initiative started by the World Health Organization (WHO) and STM publishers, including Wiley, that brings medical research information to the developing world. Wiley has built upon its reputation for innovation in online publishing and for longstanding publishing service to learned societies and their members by forming new partnerships with numerous prominent national, regional and international societies. Shortly after the close of the quarter, the Company announced an agreement to publish three journals, for The American Institute of Chemical Engineers The American Institute of Chemical Engineers (AIChE) is a professional organization for chemical engineers.[1] AIChE was established in 1908 with the purpose of establishing chemical engineers as a profession independent from chemists and mechanical (AIChE), including its flagship journal, effective January 2004. As a result of this partnership, Wiley will provide all publishing services, including launching online editions through Wiley InterScience and creating a digital archive. Wiley also renewed its agreement with the International Union of Cancer (UICC UICC Union International Contre le Cancer International Union against Cancer ) to publish The International Journal of Cancer. Higher Education Growth in Wiley's U.S. Higher Education business in the second quarter and first half was 3% and 5%, respectively. As a reminder, Wiley's second quarter does not include July revenue, which is historically the highest in the Higher Education business. The year-on-year growth was driven primarily by the accounting/business, science and social science programs. Industry-wide conditions in engineering continue to be weak. Globally, Higher Education revenue increased over prior year by approximately 6% in the quarter and 7% for the first half of fiscal year 2004. During the second quarter, Higher Education benefited from the strong performance of key titles, such as Kieso/Intermediate Accounting, Kimmel/Financial Accounting, Cutnell/Physics, Solomons/Organic Chemistry, White/The Analysis and Use of Financial Statements, Salas/Calculus: One Variable, Connally/Functions of Modeling Change and Huffman/Psychology In Action. In August, the Company added to its e-learning offerings with the successful release of five new courseware Educational software. See CBT and OpenCourseWare. (application) courseware - Programs and data used in Computer-Based Training. titles: Kieso/Intermediate Accounting, Kimmel/Financial Accounting, Weygandt/Managerial Accounting, Horstmann/Big Java and Schermerhorn/Management. The Company's e-learning platform, Edugen, enables us to deliver content in an integrated format that is organized around the teaching and learning activities of students and professors. This courseware, which is already being used in over forty college and university courses, generated over eight million hits on its website in September and October. Textbooks continue to be widely regarded by professors and students as crucial to effective teaching and learning, particularly in the markets served by Wiley. Wiley is as committed as ever to delivering the highest quality materials and services to the customers that we serve in the States and abroad. The Company is employing technology to deliver value-added products and services to professors and students. For example, we offer educational packages that include brief "core concept" textbooks with online and customized components. The Company is helping professors to integrate technology into the classroom through its significant investment in Wiley's Faculty Resource Network (FRN FRN See: Floating-rate note ). Through its virtual seminars and one-on-one collaborations, the FRN is providing training and support for hundreds of professors across the U.S. Europe Second quarter revenue for Wiley's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations was up 9% over prior year, or 3% excluding foreign currency translation gains. For the six-months, Wiley-Europe's revenue was up 7% over prior year, but flat excluding foreign currency translation gains. Healthy STM journal performance was partially offset by sluggish STM and P/T book sales, primarily in the U.K. Encouragingly, October sales were relatively strong. Despite the weak German economy, Wiley-VCH reported solid results in many of its indigenous professional and STM book programs. There was positive market response to new revenue-generating features (advertorials and HTML HTML in full HyperText Markup Language Markup language derived from SGML that is used to prepare hypertext documents. Relatively easy for nonprogrammers to master, HTML is the language used for documents on the World Wide Web. email newsletters) for two community-of-interest portals, spectroscopyNOW.com and separationsNOW.com. Subscriptions to www.pro-physik.de continue to grow nicely. During the quarter, The British Journal of Surgery The BJS (British Journal of Surgery) is a monthly peer reviewed publication targeting general surgeons and the associated sub specialities. At 3.722 it has the highest impact factor of any surgical journal published in the UK. added the Swiss Surgical Society to the growing number of European societies with which it is affiliated, further strengthening its position as the premier surgical journal throughout Europe. Wiley acquired European Transactions in Electrical Power, a bimonthly bi·month·ly adj. 1. Happening every two months. 2. Happening twice a month; semimonthly. adv. 1. Once every two months. 2. Twice a month; semimonthly. n. pl. primary research journal published in collaboration with several European societies. The German Biometrical Society renewed its agreement with Wiley-VCH to publish the Biometrical Journal. Four psychology titles won British Medical Association The British Medical Association (BMA) is the trade union to which the vast majority of British doctors belong. It is based in Tavistock Square in central London. It owns the "British Medical Journal". awards: Stallard/Think Good, Feel Good, Graham/Substance Misuse in Psychosis psychosis (sīkō`sĭs), in psychiatry, a broad category of mental disorder encompassing the most serious emotional disturbances, often rendering the individual incapable of staying in contact with reality. , Ballard/Understanding Menopause menopause (mĕn`əpôz) or climacteric (klīmăk`tərĭk, klī'măktĕr`ĭk) and McMurran/Motivating Offenders to Change. An agreement was signed with Nokia for fifteen of its training managers to promote the Nokia series that is published with Wiley to engineers in the industry. Asia, Australia & Canada Wiley's revenue in Asia, Australia and Canada advanced 14% in the second quarter and 12% for the first half. Excluding the benefit of foreign currency, revenue was up 3% and 2% for the same periods, respectively. These results were driven mainly by the performance of the indigenous Higher Education programs in Australia and Canada. Higher-than-anticipated returns of P/T books in Canada partially offset these results. Indigenous publishing programs are performing well. Fels/A Portrait of Power has been strong throughout Australia and is creating interest in the U.K. and U.S. The 20th anniversary edition of a Wiley Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. title, The Game by Ken Dryden, has been called "the best hockey book ever written". In September, Wiley Canada signed an agreement with The Canadian Press  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . to publish four to six books annually for three years, including quick-to-market titles that respond to major Canadian events. Additionally, the partnership will publish yearbooks, biographies and highlights of historic events. During the quarter, Wiley was named one of the "100 Best Companies for Working Mothers" by Working Mother Magazine. In addition, the New Jersey Business and Industry Association honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. the Company with its "Enterprise Award" for the positive effect Wiley has had on the New Jersey economy as a result of relocating to the Hoboken waterfront. These awards represent tangible evidence that Wiley is not only financially strong and performance-driven, but is also an organization that values and appreciates the relationships it has formed with colleagues and the community. Special Items During the second quarter of fiscal year 2003, the Company merged several of its European subsidiaries into a new entity, which enabled the Company to increase the tax-deductible Tax-deductible The effect of creating a tax deduction, such as charitable contributions and mortgage interest. asset basis of the merged subsidiaries to the fair value of the business at the date of merger. Under U.S. accounting principles, the tax benefit attributable to the increase in tax basis was immediately included in income, although the cash benefit of this change will be recognized pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend over a 15-year period. The Company's effective tax rate, excluding this tax benefit, was 33% for the second quarter of fiscal year 2003. Wiley completed the relocation of the Company's headquarters to Hoboken, New Jersey in the first quarter of fiscal year 2003 and reported an unusual charge for costs associated with the relocation of approximately $1.5 million after-tax, or $.02 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This report contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. , 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; and (viii) 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Conference Call John Wiley & Sons, Inc., will hold a conference call on Tuesday, December 2, 2003, at 10:30 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its results for the second quarter of fiscal year 2004. The call will include a brief management presentation followed by a question and answer session. To participate in the conference call, please dial the following number approximately ten minutes prior to the scheduled starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first : (800) 310-1961 International callers may participate by dialing: (719) 457-2692 A replay of the call will be available from 1:30 p.m. (EST) on Tuesday, December 2 through midnight (EST) on Monday, December 8 by dialing (888) 203-1112 or (719) 457-0820 and entering Passcode 677675. A live audio Webcast will be accessible at http://www.wiley.com/go/communications. A replay of the Webcast will be accessible for 14 days afterwards af·ter·ward also af·ter·wards adv. At a later time; subsequently. afterwards or afterward Adverb later [Old English æfterweard] Adv. 1. . Founded in 1807, John Wiley & Sons, Inc. provides must-have content and services to customers worldwide. Its core businesses include scientific, technical, and medical journals, encyclopedias This article contains a list of encyclopedias, including projects to create new works. Because the number of works that can be considered encyclopedias is very large, this list does not attempt to be comprehensive. , books, and online products and services; professional and consumer books and subscription services; and educational materials for undergraduate and graduate students and lifelong learners. Wiley has publishing, marketing, and distribution centers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada, Europe, Asia and Australia. The Company is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbols JWa and JWb. Wiley's Internet site can be accessed at http://www.wiley.com.
JOHN WILEY & SONS, INC.
SUMMARY OF OPERATIONS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2003 AND 2002
(in thousands, except per share amounts)
Second Quarter Ended Six Months Ended
October 31, October 31,
---------------------- ----------------------
2003 2002 % Change 2003 2002 % Change
---- ---- -------- ---- ---- --------
Revenue $228,880 223,008 3% 448,540 429,445 4%
Costs and Expenses
Cost of Sales 78,182 77,251 1% 150,291 145,972 3%
Operating and
Administrative
Expenses 111,296 107,371 4% 223,339 209,738 6%
Amortization of
Intangibles 2,535 2,535 4,865 4,711 3%
Unusual Item -
Relocation
Expenses (A) - - - 2,465
-------- ------- ------- -------
Total Costs and
Expenses 192,013 187,157 3% 378,495 362,886 4%
-------- ------- ------- -------
Operating Income 36,867 35,851 3% 70,045 66,559 5%
Operating Margin 16.1% 16.1% 15.6% 15.5%
Interest Expense
and Other, Net 612 2,124 1,872 3,861
-------- ------- ------- -------
Income Before Taxes 36,255 33,727 7% 68,173 62,698 9%
Provision (Benefit)
for Income Taxes
(B) 10,607 (1,004) 20,725 7,937
-------- ------- ------- -------
Net Income $ 25,648 34,731 -26% 47,448 54,761 -13%
======== ======= ======= =======
Income Per Share
Diluted $ 0.41 0.55 -26% 0.75 0.86 -13%
Basic $ 0.41 0.57 0.77 0.89
Reconciliation of
Non-GAAP Financial
Disclosure
-------------------
Net Income as
Reported $ 25,648 34,731 47,448 54,761
Relocation Expense,
Net of Tax (A) - - - 1,479
Tax Benefit (B) - (12,025) - (12,025)
-------- ------- ------- -------
Net Income Before
Unusual Items $ 25,648 22,706 13% 47,448 44,215 7%
======== ======= ======= =======
Income Per
Share-Diluted as
Reported $ 0.41 0.55 0.75 0.86
Relocation Expense,
Net of Tax (A) - - - 0.02
Tax Benefit (B) - (0.19) - (0.19)
Income Per Share-
Diluted Before
Unusual Items $ 0.41 0.36 13% 0.75 0.70 8%
======== ======= ======= =======
Average Shares
Diluted 63,176 63,092 63,091 63,370
Basic 61,891 61,429 61,788 61,580
(A) The Company completed the relocation of its headquarters to
Hoboken, N.J. in the first quarter of fiscal year 2003. An unusual
charge for costs associated with the relocation of approximately
$1.5 million after tax, or $.02 per share, was reported.
(B) Fiscal year 2003 includes a tax benefit of $12.0 million equal to
$0.19 per diluted share, relating to the step up in the tax basis
of a European subsidiary's assets.
Note: Management believes the above non-GAAP financial measures, which
exclude the relocation charge and the tax benefit, provide a more
meaningful comparison of the Company's year-over-year results. These
events, which were completed during fiscal year 2003, were unusual to
the Company and unlikely to recur in the foreseeable future.
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2003 AND 2002
(in thousands, except per share amounts)
Second Quarter Ended Six Months Ended
October 31, October 31,
---------------------- ----------------------
2003 2002 % Change 2003 2002 % Change
---- ---- -------- ---- ---- --------
Revenue
------------------
US Segment
Professional/
Trade $ 86,531 89,659 -3% 162,675 159,840 2%
Scientific,
Technical and
Medical 42,694 42,416 1% 84,401 84,873 -1%
Higher Education 37,674 36,575 3% 85,442 81,490 5%
-------- ------- ------- -------
Total US 166,899 168,650 -1% 332,518 326,203 2%
European Segment 60,018 55,077 9% 110,601 102,969 7%
Asia, Australia &
Canada Segment 25,077 21,935 14% 48,473 43,095 12%
Intersegment Sales
Eliminations (23,114)(22,654) 2% (43,052)(42,822) 1%
-------- ------- ------- -------
Total Revenue $228,880 223,008 3% 448,540 429,445 4%
======== ======= ======= =======
Direct Contribution
to Profit
-------------------
US Segment
Professional/
Trade $ 25,382 27,492 -8% 43,570 41,784 4%
Scientific,
Technical and
Medical 20,503 20,400 1% 41,219 40,717 1%
Higher Education 9,935 8,625 15% 28,619 26,783 7%
-------- ------- ------- -------
Total US 55,820 56,517 -1% 113,408 109,284 4%
European Segment 19,230 17,039 13% 34,652 33,075 5%
Asia, Australia &
Canada Segment 5,480 4,050 35% 9,623 7,662 26%
-------- ------- ------- -------
Total Direct
Contribution to
Profit (A) 80,530 77,606 4% 157,683 150,021 5%
Shared Services and
Administrative
Costs
-------------------
Distribution (11,591)(11,410) 2% (22,852)(22,464) 2%
Information
Technology &
Development (12,428)(10,665) 17% (24,229)(19,187) 26%
Finance (7,189) (6,744) 7% (14,240)(14,111) 1%
Other
Administration (12,455)(12,936) -4% (26,317)(25,235) 4%
-------- ------- ------- -------
Total Shared
Services and
Admin. Costs (43,663)(41,755) 5% (87,638)(80,997) 8%
Unusual Item -
Relocation
Expenses (A) - - - (2,465)
-------- ------- ------- -------
Operating Income $ 36,867 35,851 70,045 66,559
======== ======= ======= =======
(A) The Company completed the relocation of its headquarters to
Hoboken, N.J. in the first quarter of fiscal year 2003. An unusual
charge for costs associated with the relocation of approximately
$1.5 million after tax, or $.02 per share, was reported.
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
October 31, April 30,
---------------
2003 2002 2003
---- ---- ----
Current Assets
Cash & cash equivalents $ 10,756 21,414 33,241
Accounts receivable 170,002 145,470 120,057
Inventories 84,049 80,454 83,337
Other current assets 35,243 48,348 47,209
-------- ------- -------
Total Current Assets 300,050 295,686 283,844
Product Development Assets 61,353 59,609 60,842
Property and Equipment 116,815 101,453 114,870
Goodwill 194,114 192,774 192,186
Intangible Assets 279,697 279,559 280,872
Deferred Income Taxes 249 12,418 2,800
Other Assets 22,310 20,382 20,558
-------- ------- -------
Total Assets 974,588 961,881 955,972
======== ======= =======
Current Liabilities
Notes Payable & Current portion
of long-term debt 60,000 125,000 35,000
Accounts and royalties payable 91,080 104,850 71,296
Deferred subscription revenues 65,543 51,977 131,392
Accrued income taxes 6,283 17,131 7,953
Other accrued liabilities 61,114 65,163 77,624
-------- ------- -------
Total Current Liabilities 284,020 364,121 323,265
Long-Term Debt 200,000 200,000 200,000
Accrued Pension liability 56,378 29,324 54,909
Other Long-Term Liabilities 28,997 28,842 28,190
Deferred Income Taxes 5,781 14,651 5,604
Shareholders' Equity 399,412 324,943 344,004
-------- ------- -------
Total Liabilities &
Shareholders' Equity $974,588 961,881 955,972
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CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended
October 31,
-----------------
2003 2002
-------- --------
Operating Activities
Net income $ 47,448 54,761
Amortization of intangibles 4,865 4,711
Amortization of composition costs 15,254 14,753
Depreciation of property and equipment 13,720 11,793
Other non-cash items 25,030 13,796
Change in deferred subscription revenue (68,149) (74,680)
Net change in operating assets and liabilities (38,699) (21,200)
-------- --------
Cash Provided By (Used For) Operating Activities (531) 3,934
Investing Activities
Additions to product development assets (26,305) (22,655)
Additions to property and equipment (13,140) (39,212)
Acquisition of publishing assets, net of cash
acquired (1,904) (7,812)
-------- --------
Cash Used for Investing Activities (41,349) (69,679)
Financing Activities
Borrowings of short-term debt 60,000 90,000
Repayment of long-term debt (35,000) (30,000)
Cash dividends (8,079) (6,172)
Purchase of treasury shares (2,486) (8,117)
Proceeds from exercise of stock options 3,287 1,442
-------- --------
Cash Provided by Financing Activities 17,722 47,153
Effects of Exchange Rate Changes on Cash 1,673 301
-------- --------
Decrease in Cash and Cash Equivalents for
Period $(22,485) (18,291)
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