John Wiley & Sons, Inc. Reports 2nd Quarter Results: Net Income Increased 6% On Revenue Growth of 10%.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 3, 2001 John Wiley John Wiley may refer to:
See: New York Stock Exchange :JWa) (NYSE:JWb) announced today that net income for the second quarter ended October 31, 2001 advanced 6% to $17.9 million, compared with $16.9 million in the prior year's second quarter. 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 of $0.28 increased 4% over the prior year's $0.27. Second quarter revenues increased 10% to $176.2 from $160.6 million last year. For the first half of fiscal year 2002, net income advanced 12% to $37.5 million compared with $33.4 million in the prior year. Earnings per diluted share of $0.59 increased 11% over the prior year's $0.53. Revenues for the first half of $337.2 million grew 7% from $314.5 million last year. The second quarter revenue increase was primarily attributable to the addition of Hungry Minds, Inc., which was acquired on September 21, 2001. The 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. ) journal programs 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. and Europe also contributed to the year-to-year growth. Excluding Hungry Minds, revenues for the quarter were essentially on par with the prior year and up 3% year-to-date, excluding adverse foreign currency translation effects. "We are pleased that Wiley's revenues and earnings are running ahead of last year in a very challenging environment," said William J. Pesce, President and Chief Executive Officer. "Although Wiley's businesses are somewhat resistant to changing economic conditions, the tragic events of September 11th have affected our results. Customer traffic at brick and mortar See bricks and mortar. bookstores, in the United States and abroad, was down significantly in the weeks following the terrorist attacks. We will not fully recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. the sales we lost as a result of the tragedy. However, we believe the effect of September 11th on Wiley's businesses will be relatively short-term in duration." "We are encouraged by our progress since the acquisition of Hungry Minds approximately ten weeks ago. Wiley is already benefiting from the best practices approach we are following throughout the integration process. Although the market for computer books See how to find a good computer book. has been soft, there is strong customer interest in the recent release of 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. for Dummies. In addition, Wiley's tax publishing program is capitalizing on changes in the tax laws. And, our online service, Wiley InterScience, continues to evolve as a profitable global enterprise." He concluded, "Based on year-to-date results and leading performance indicators, we are now forecasting revenue growth in the high-teens and an earnings increase in the mid-single digits for fiscal year 2002. As announced previously, Hungry Minds should be neutral to earnings in fiscal year 2002 and accretive thereafter. Excluding Hungry Minds, revenue growth for the full year is currently forecasted in the mid-single digits." Segment Highlights For the first half of the fiscal year, domestic STM's profit contribution increased 6% on a comparable revenue gain. For the second quarter, STM reported a 6% increase in revenues and a modest improvement in its contribution to profit. The revenue growth was attributable to strong journal subscription renewal rates and the addition of three society journals to Wiley's program. Domestic Professional/Trade reported a 20% revenue advance for the first six months and a 29% increase in profit contribution. For the second quarter, revenues advanced 32%, while profit contribution increased 38%. The improvement was primarily attributable to the inclusion of Hungry Minds. Excluding that acquisition, revenues were up 2% for the first half of the year, but down slightly for the quarter. Wiley's Professional/Trade business was adversely impacted by the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in retail and corporate sales as a result of the September 11th terrorist attacks. Business and travel books have been most affected. The culinary cu·li·nar·y adj. Of or relating to a kitchen or to cookery. [Latin cul  n , architecture, psychology and general interest areas
continue to perform well.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. revenues and contribution to profit were essentially on par with the first half of last year. For the second quarter, Higher Education revenues and contribution to profit were below prior year by 8% and 6%, respectively. Two factors are contributing to these results. First, college bookstores are promoting used textbooks more aggressively. This is reflected in Higher Education's performance, as frontlist front·list n. A publisher's list of new or current titles. sales are tracking to expectations, while 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. titles have experienced greater than anticipated attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: . Management is hopeful that new, value-added materials and services that complement the company's educational packages will appeal to students and help to combat the growth in used book sales. Second, although overall demographic trends in higher education are favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , enrollments in engineering, a key Wiley area, are currently down. It is noteworthy that Wiley's programs in psychology and geography, two of its "soft side" disciplines, are performing well. The company should benefit from the overall increase in enrollments as students move through their junior and senior years when they will take advanced courses in their major fields of study. European segment revenues and contribution to profit for the first six months advanced 5%. For the second quarter, revenues were up 4%, while contribution to profit was essentially on par with the prior year. The revenue growth was largely driven by the STM journals program. Performance in the other segment was essentially flat with the comparable prior year periods. Strong results in Australia and Canada were offset by market softness throughout Asia. Business Highlights During the quarter, three Wiley authors were 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. as Nobel laureates Winners of the Nobel Prize are scientists, writers and peacemakers who have been awarded in their field of endeavour, and who are known collectively as either Nobel laureates or Nobel Prize winners. : Ryoji Noyori of Japan's Nagoya University Nagoya University (名古屋大学 Nagoya daigaku and K. Barry Sharpless of the Scripps Research Institute in Chemistry; and A. Michael Spence Andrew Michael Spence (born November 7, 1943) is an American-born, Canadian-raised economist and recipient of the 2001 Nobel Memorial Prize in Economics, along with George A. Akerlof and Joseph E. Stiglitz, for their work on the dynamics of information flows and market development. of Stanford University Stanford University, at Stanford, Calif.; coeducational; chartered 1885, opened 1891 as Leland Stanford Junior Univ. (still the legal name). The original campus was designed by Frederick Law Olmsted. David Starr Jordan was its first president. in Economic Sciences. These awards underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the outstanding contributions Wiley authors make to their fields. Professional/Trade: The most significant event of the second quarter was the completion of Wiley's acquisition of Hungry Minds on September 21st. Together, Wiley and Hungry Minds have a strong position in targeted markets, with a formidable collection of respected brands and a far-reaching global presence. The integration has been proceeding ahead of schedule. From the date of acquisition through the end of this fiscal year, the company is forecasting revenues for Hungry Minds in the range of $75-80 million. Management continues to expect the acquisition to be neutral to earnings this fiscal year and accretive thereafter. The company is very pleased to report that the financing of this transaction was completed on favorable terms during a turbulent time in the financial markets. Wiley entered into an agreement with eBrary to provide online access to 100 of its professional and trade titles through multiple online channels, including libraries and other organizations. The license is based on an innovative sales model in which online access is provided free of charge, but a per-page fee is incurred for printing. During the quarter, the company also selected Innodata as its new e-Book conversion partner, at a lower cost and with faster turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. than previous vendors. Scientific, Technical, and Medical: Wiley InterScience launched OnlineBooks, a fully searchable and browseable database that integrates content from Wiley's STM books with that of its online journals and reference works. This initiative represents the next step in the evolution of digital information resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. provided by the company globally. During the quarter, Wiley announced an agreement with Celera Genomics to develop links between cited article references, abstracts, and full-text articles available on the Wiley InterScience online service and the Celera Discovery System (CDS). This agreement will provide subscribers of both services with more direct access to a broad range of bioinformatics Using computers in biological research to analyze or predict the composition of molecules (nucleic acids, proteins, etc.) and model biologic systems. Bioinformatics is most prominent in the Human Genome Project, which has recorded the three billion chemical base pairs that make up the data, full-text articles and abstracts. CDS is a web-based platform that integrates Celera's exclusive genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. and biological databases (e.g., the Human Genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. Database and the Human Gene Index), essential public and third-party sources, and analysis and visualization Using the computer to convert data into picture form. The most basic visualization is that of turning transaction data and summary information into charts and graphs. Visualization is used in computer-aided design (CAD) to render screen images into 3D models that can be viewed from all tools into one system to advance the discovery process for researchers worldwide. Wiley also signed an agreement to link EBSCO EBSCO Elton B. Stephens Company Online to Wiley InterScience. These agreements are examples of the company's strategy to open new pathways for researchers to explore and access Wiley's must-have content. Higher Education: In October, Wiley announced a partnership with Columbia Earthscape, a nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. , academic web-based service provided by Columbia University Press Columbia University Press is an academic press based in New York City and affiliated with Columbia University. It is currently directed by James D. Jordan (2004-present) and publishes titles in the humanities and sciences, including the fields of literary and cultural studies, , to create the most comprehensive multimedia resources available for Earth Science education at the college and university level. As a result of this collaboration, Wiley and Columbia Earthscape will enhance their products with each other's content and resources and will coordinate editorial, production, marketing and sales efforts. Wiley is a leading publisher of educational materials for this market. The Columbia Earthscape website includes research reports and data from organizations such as ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. NewsOne, the American Museum of Natural History American Museum of Natural History, incorporated in New York City in 1869 to promote the study of natural science and related subjects. Buildings on its present site were opened in 1877. , the Lamont-Doherty Earth Observatory Lamont-Doherty Earth Observatory (LDEO) is a world-class research institution specializing in the Earth sciences and is part of Columbia University. The current director of Lamont is G. Michael Purdy. , MIT MIT - Massachusetts Institute of Technology , UNESCO UNESCO: see United Nations Educational, Scientific, and Cultural Organization. UNESCO in full United Nations Educational, Scientific and Cultural Organization , and a wealth of other online resources. Early in the third quarter, Wiley acquired 47 higher education titles in business, earth and biological sciences, foreign languages, mathematics, nutrition and psychology from International Thomson. The acquisition will strengthen Wiley's position in key markets. International: During the quarter, Wiley Europe was selected as publisher of 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. , one of the world's most prestigious and widely read general surgery publications. Factors that resulted in the company's successful bid included the functionality of Wiley InterScience, the strength of Wiley's online communities and web portals See portal. , and the company's global market reach. InPharm, Wiley Europe's online information service for the pharmaceutical industry, signed a sales representation agreement during the quarter with drugdev123.com, a specialist website serving the clinical research market. Wiley-VCH also launched pro-physics.de, a community of interest site. In November, Wiley Europe introduced Express Exec, an extensive print and digital service that provides users with the latest business thinking and best practices in areas such as marketing, strategy, innovation, leadership and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . Wiley Australia has once again won the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. Tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. Publisher of the Year award for outstanding service to the higher education market. This is the fourth time Wiley has achieved this honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. , which is awarded by booksellers. 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, 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/. "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 Instructions - Second Quarter Fiscal Year 2002 Wiley will hold a conference call today, December 3, 2001, at 10:30 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ), to discuss its financial results for the second quarter of fiscal year 2002. The call will include a brief management presentation, followed by a question and answer session. To participate please dial the following number approximately 10 minutes prior to 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) 289-0437. International callers may participate by dialing: (913) 981-5508. A replay of the call will be available from 1:30 p.m. (EST) on Monday, December 3 through 8 p.m. (EST) on Monday, December 10, by dialing (888) 203-1112 or (719) 457-0820 and entering Passcode 744874. A live audio Webcast will be accessible at http://www.wiley.com/go/communications. A replay of the Webcast will be accessible for 90 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. . Attachments: Summary of Operations Segment Results Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Statements of Financial Position and Cash Flows
JOHN WILEY & SONS, INC.
SUMMARY OF OPERATIONS
FOR THE SECOND QUARTER AND SIX MONTHS
ENDED OCTOBER 31, 2001 AND 2000
(in thousands, except per share amounts)
Second Quarter
Ended October 31,
----------------------------------
2001 2000 % Change
---- ---- --------
Revenues $176,201 160,559 10%
Costs and Expenses
Cost of Sales 56,957 50,102 14%
Operating and Administrative
Expenses 86,011 77,866 10%
Amortization of Intangibles 4,320 4,286 1%
Total Costs and Expenses 147,288 132,254 11%
Operating Income 28,913 28,305 2%
Operating Margin 16.4% 17.6% -7%
Interest Expense Net of
Interest Income 1,997 2,035 -2%
Income Before Taxes 26,916 26,270 2%
Provision For Income Taxes 9,002 9,325 -3%
Net Income $ 17,914 16,945 6%
Income Per Share
Diluted $ 0.28 0.27 4%
Basic $ 0.29 0.28 4%
Average Shares
Diluted 63,175 63,534
Basic 60,862 60,607
Six Months
Ended October 31,
----------------------------------
2001 2000 % Change
---- ---- --------
Revenues 337,245 314,487 7%
Costs and Expenses
Cost of Sales 106,885 99,269 8%
Operating and Administrative
Expenses 162,244 150,540 8%
Amortization of Intangibles 8,666 8,430 3%
Total Costs and Expenses 277,795 258,239 8%
Operating Income 59,450 56,248 6%
Operating Margin 17.6% 17.9% -2%
Interest Expense Net of
Interest Income 2,701 3,620 -25%
Income Before Taxes 56,749 52,628 8%
Provision For Income Taxes 19,294 19,209 0%
Net Income 37,455 33,419 12%
Income Per Share
Diluted 0.59 0.53 11%
Basic 0.62 0.55 13%
Average Shares
Diluted 62,977 63,438
Basic 60,578 60,481
Prior period amounts have been restated to reflect the
reclassification of shipping and handling fee income as revenues in
accordance with the new accounting standard. Previously, such amounts
were classified as offsets to cost of sales and operating and
administrative expenses.
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS
ENDED OCTOBER 31, 2001 AND 2000
(in thousands)
Second Quarter
Ended October 31,
----------------------------------
2001 2000 % Change
---- ---- --------
Revenues
Domestic Segments
Scientific, Technical
and Medical $ 41,780 39,600 6%
Professional/Trade 57,626 43,770 32%
Higher Education 34,938 37,821 -8%
Total Domestic 134,344 121,191 11%
European Segment 41,216 39,714 4%
Other Segments 16,034 15,762 2%
Intersegment Sales
Eliminations (15,393) (16,108) -4%
Total Revenues $176,201 160,559 10%
Direct Contribution
to Profit
Domestic Segments
Scientific, Technical
and Medical $ 18,696 18,339 2%
Professional/Trade 15,018 10,907 38%
Higher Education 10,997 11,755 -6%
Total Domestic 44,711 41,001 9%
European Segment 13,146 13,093 0%
Other Segments 2,952 3,152 -6%
Total Direct Contribution
to Profit 60,809 57,246 6%
Shared Services and Admin.
Costs (31,896) (28,941) 10%
Operating Income $ 28,913 28,305 2%
Six Months
Ended October 31,
----------------------------------
2001 2000 % Change
---- ---- --------
Revenues
Domestic Segments
Scientific, Technical
and Medical 81,896 77,059 6%
Professional/Trade 96,982 80,658 20%
Higher Education 77,272 78,588 -2%
Total Domestic 256,150 236,305 8%
European Segment 78,971 76,147 4%
Other Segments 32,191 32,019 1%
Intersegment Sales
Eliminations (30,067) (29,984) 0%
Total Revenues 337,245 314,487 7%
Direct Contribution
to Profit
Domestic Segments
Scientific, Technical
and Medical 36,635 34,645 6%
Professional/Trade 22,282 17,267 29%
Higher Education 28,114 28,363 -1%
Total Domestic 87,031 80,275 8%
European Segment 26,496 25,251 5%
Other Segments 6,372 6,959 -8%
Total Direct Contribution
to Profit 119,899 112,485 7%
Shared Services and Admin.
Costs (60,449) (56,237) 7%
Operating Income 59,450 56,248 6%
JOHN WILEY & SONS INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
October 31, April 30,
2001 2000 2001
Current assets $ 277,732 177,415 189,535
Product Development
Assets 60,627 40,866 41,191
Property and Equipment 60,563 37,564 52,255
Intangible Assets 404,908 291,692 283,761
Other Assets 23,563 21,286 21,260
Total Assets 827,393 568,823 588,002
Current liabilities
Notes payable & current
portion of long-term
debt 80,000 78,445 30,000
Deferred subscription
revenues 35,658 38,535 117,103
Other current liabilities 167,422 138,290 99,658
Total Current Liabilities 283,080 255,270 246,761
Long-Term debt 235,000 65,000 65,000
Other Long-Term Liabilities 44,929 33,091 34,901
Deferred Income Taxes 9,457 14,478 21,317
Shareholders' Equity 254,927 200,984 220,023
Total Liabilities
and Shareholders'
Equity $ 827,393 568,823 588,002
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended
October 31,
2001 2000
Operating Activities
Net income $ 37,455 33,419
Amortization of intangibles 8,667 8,430
Amortization of composition costs 12,093 11,374
Depreciation of property and
equipment 8,337 7,095
Other non-cash items 13,148 11,298
Net change in operating assets
and liabilities (97,952) (81,199)
Payment of acquisition related
liabilities (11,363) --
Cash Used for Operating Activities (29,615) (9,583)
Investing activities
Additions to product development
assets (20,579) (16,376)
Additions to property and
equipment (13,014) (11,546)
Proceeds from sale of publishing
assets -- 2,500
Acquisition of publishing assets,
net of cash acquired (184,742) (7,052)
Cash Used for Investing Activities (218,335) (32,474)
Financing activities
Net borrowings of short-term debt 50,000 48,731
Borrowings of long-term debt 200,000 --
Repayment of long-term debt (30,000) (30,000)
Cash dividend (5,490) (4,858)
Purchase of treasury shares (2,204) (1,664)
Proceeds from issuance of stock
on option exercises & other 3,053 1,193
Cash Used for Financing Activities 215,359 13,402
Effects of Exchange Rate Changes
on Cash 1,363 (3,079)
Decrease in Cash and Cash
Equivalents for Period $ (31,228) (31,734)
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion