John Wiley & Sons, Inc. Reports First Quarter Results.HOBOKEN, N.J. -- John Wiley John Wiley may refer to:
See: New York Stock Exchange :JWa) (NYSE:JWb) announced today that first quarter revenue of $226.9 million increased 3% from $219.7 million in the previous year's first quarter. Excluding foreign currency effects Foreign Currency Effects The extent to which the changes in a foreign currency affects the return on a foreign investment. Notes: Foreign investments are complicated by the currency fluctuation and conversion between countries. , revenue increased 2%. Net income of $19.9 million declined from $21.8 million in the prior year. 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 was $0.32 compared to $0.35 in the prior year. "Overall, Wiley's first quarter results are consistent with our expectations. Our Scientific, Technical, and Medical business reported healthy year-on-year growth, with journals and books contributing to these results. As expected, our Professional/Trade business was flat with last year's strong first quarter. Solid Fall, Winter and Spring frontlists will drive year-on-year growth during the balance of fiscal year 2005. The only disappointment was in our 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. business, where revenue was below expectations," said William J. Pesce, President & Chief Executive Officer. Mr. Pesce concluded, "Based on first quarter results, leading indicators Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. and market conditions, we continue to anticipate revenue and earnings growth in the mid-to-high single digits in fiscal year 2005." Segment Highlights 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 ) Wiley's U.S. P/T revenue for the first quarter was essentially flat with prior year and in line with our expectations. The architecture, professional culinary, psychology and education book programs performed well. Subscription journals and online advertising also contributed positively to the first quarter results. Sales in the consumer cooking and business categories lagged behind last year's first quarter. Several P/T titles received considerable attention from the media and our customers, including Maccioni & Wright/Sirio: The Story of My Life and Le Cirque Le Cirque is a famed French restaurant in Manhattan owned and operated by Sirio Maccioni. Currently at One Beacon Court (151 East 58th Street), it is a 16000 square foot restaurant designed by interior designer Adam Tihany, architect Costas Kondylis. ; Edwards/Edward R. Murrow and the Birth of Broadcast Journalism Broadcast journalism refers to television news and radio news, as well as the online news outlets of broadcast affiliates. ; and Pescatore/The Hamptons Diet. The Edwards' book was on 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-Expanded Best Seller list for nine weeks. Other titles that were on national and regional bestseller lists include Lencioni/Five Dysfunctions of a Team; Lencioni/Death by Meeting; Allen/Multiple Streams of Income; and Mauldin/Bull's Eye Investing. First quarter highlights for the business program include the publication of Flying High: How JetBlue Founder 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. David Neeleman David G. Neeleman (born October 16, 1959) is the founder and former CEO of JetBlue Airways. Neeleman, an American of Dutch descent, was born in São Paulo, Brazil.[1] Beat the Competition in the World's Most Turbulent Industry. Ross & Segal/Breakthrough Thinking for Nonprofit Organizations Nonprofit Organization An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well. Notes: Examples of non-profit organizations are charities, hospitals and schools. was selected as this year's winner of the Terry McAdam Book Award, a prestigious honor from the Alliance for 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. Management, The Chronicle of Philanthropy philanthropy, the spirit of active goodwill toward others as demonstrated in efforts to promote their welfare. The term is often used interchangeably with charity. , and the New York Community Trust New York Community Trust was founded in 1924 by a group of New York bankers. It is one of the oldest and largest community foundations in the United States with 2006 assets of over $1.9 billion. . Four P/T journals were recognized for outstanding quality: Leader to Leader, the National Civic Review, and Natural Gas and Electricity each received a 2004 Apex Award of Excellence from Communications Concepts, while 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. Management received a 2004 Golden Page Award for general readability. P/T's architecture/engineering and professional culinary/hospitality programs had a strong quarter. A bulk sale of a customized edition of our Guide to New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Landmarks was made during the quarter. The guide will be distributed to every delegate and guest attending the Republican National Convention in New York. Piotrowski/Becoming an Interior Designer was named by the American Society of Interior Designers The American Society of Interior Designers (ASID) is the oldest and largest professional association for interior designers. Through education, knowledge sharing, advocacy, community building and outreach, the Society strives to advance the interior design profession and, in the as this year's Polsky Prize winner. A multi-year contract to provide course plans and textbooks and develop curricula in hospitality management was signed with Axia College Axia College is a for-profit educational institution founded in March 2004. There are currently more than 50,000 students attending Axia. Axia's Beginnings Axia College was first established under Western International University (WIU, a sister school to the University , a University of Phoenix sister school. This was a collaborative effort between Wiley's P/T and Higher Education businesses. Throughout July, Wiley participated in a successful co-promotion with Travelocity. Ads for the campaign appeared in 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. and The Wall Street Journal, among other publications and online sites. An agreement with MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. was signed during the quarter to publish an eight volume series of travel guides targeted to students and co-branded as MTV and Frommer's. Guitar For Dummies, Forensics See computer forensics. For Dummies, and nine pet-related titles were top performers in the quarter. Two video/DVDs that were produced with Razor & Tie, Golf For Dummies and Poker For Dummies, were released successfully and benefited from a television advertising campaign. PCs Para Dummies, 8th edition, received an award as the "Best Business Book for 2003" from the Latino Book and Family Festival. 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 business started the year on a strong note, with revenue in the first quarter up 11% over prior year. Journal revenue increased 12%, with new society journals contributing significantly to the year-on-year growth. The STM book program performed well, as reflected in a 9% revenue increase over prior year. In addition to healthy license renewals, several new Enhanced Access Licenses to Wiley InterScience were signed by academic and corporate customers around the world. Customers continue to take advantage of Wiley InterScience's wide range of access options. During the quarter, the number of visits to Wiley InterScience increased by approximately 40% over prior year. STM launched a number of major reference works in Wiley InterScience during the quarter, including the Encyclopedia of Statistical Sciences The Encyclopedia of Statistical Sciences is the largest-ever encyclopaedia of statistics. It is published by John Wiley & Sons. The first edition, in nine volumes, was edited by Norman Lloyd Johnson and Samuel Kotz and appeared in 1982. , Handbook of Plant Biotechnology, and Handbook of Statistical Genetics, Genomics, and Proteomics. In addition, journals were added to the Company's Biotechnology Backfile collection. Wiley and the American College American College is the name of:
rheu·ma·tol·o·gy n. signed a long-term contract extension for the journal publications Arthritis and Rheumatism rheumatism (r  `mətĭzəm), general term for a number of disorders that cause inflammation and pain in muscles, bones, joints, or nerves. and Arthritis Care Arthritis Care is the UK's largest charity dedicated to supporting people with arthritis. The organisation is staffed and led by people who also have arthritis. It provides information and support on a range of issues related to living with arthritis. and Research.The global STM book program performed very well during the first quarter. Product output was excellent; manuscript transmittals have been strong; global market conditions were relatively favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ; and online sales channels have fueled growth. Key titles that are contributing to these results include VanBelle/Biostatistics: A Methodology for the Health Sciences, second edition; Freeman/Telecommunications Systems Engineering, fourth edition; Proctor A person appointed to manage the affairs of another or to represent another in a judgment. In English Law, the name formerly given to practitioners in ecclesiastical and admiralty and Hughes/Chemical Hazards of the Workplace, fifth edition; Witcoff/Industrial Organic Chemicals, second edition; Grob/Modern Practice of Gas Chromatography gas chromatography (GC) Type of chromatography with a gas mixture as the mobile phase. In a packed column, the packing or solid support (held in a tube) serves as the stationary phase (vapour-phase chromatography, or VPC) or is coated with a liquid stationary phase , fourth edition; Basagni/Mobile Ad Hoc Networking See mobile ad hoc network. ; and Hancock/Dictionary of Bioinformatics and Computational Biology Not to be confused with Biologically-inspired computing. Computational biology is an interdisciplinary field that applies the techniques of computer science, applied mathematics, and statistics to address problems inspired by biology. . Further, the publication of new volumes of major continuation titles, such as the Kirk-Othmer Encyclopedia encyclopedia, compendium of knowledge, either general (attempting to cover all fields) or specialized (aiming to be comprehensive in a particular field). Encyclopedias and Other Reference Books of Chemical Technology and the Encyclopedia of Statistical Sciences, bolstered sales. Higher Education Revenue of Wiley's U.S. Higher Education business declined 5% during the first quarter. Some delayed ordering and tighter inventory management by college bookstores, as well as increases in used book sales and the sharing of textbooks by students appear to have contributed to these results. Strong performances were recorded by titles such as Tortora/Anatomy and Physiology, tenth edition; Kieso/Intermediate Accounting, eleventh edition; Cutnell/Physics, sixth edition; deBlij/Regions; and Solomons/Organic Chemistry, eleventh edition. The Company's online product, eGrade Plus, was launched successfully for 30 new courses in the first quarter. eGrade Plus delivers integrated content that is organized around teaching and learning activities. Several pricing options are available to students. In addition to purchasing a textbook, the student receives online study guides and self-testing products, which provide immediate feedback to promote understanding of the subject and help the student succeed in the course. Professors who adopt eGrade Plus can customize the course content to fit their curriculum. During the quarter, Wiley Higher Education and Rand McNally Rand McNally & Company is the preeminent American publisher of maps, atlases, and globes for travel, reference, commercial, and educational uses. It also provides online consumer street maps and directions, as well as commercial transportation routing software and mileage data. & Co. renewed and expanded an agreement for Wiley to be the exclusive distributor to the academic community of Rand Rand See Witwatersrand. rand 1 n. See Table at currency. [Afrikaans, after(Witwaters)rand. McNally's Goode's World Atlas, 21st Edition. Wiley is also publishing and distributing new regional and course editions of Goode's Atlas, as well as the Goode's World Atlas Map Workbook work·book n. 1. A booklet containing problems and exercises that a student may work directly on the pages. 2. A manual containing operating instructions, as for an appliance or machine. 3. . Europe Wiley Europe's first quarter revenue was up 18% over prior year, or 12% excluding foreign currency effects. Journal revenue was up across all markets. Book sales increased, especially through online sales channels. Of particular note were the strong sales of indigenous products from both the U.K. and Germany, as well as of imported U.S. Professional/Trade titles. Corporate and special sales of Prechter/Conquer the Crash, Hasslacher/Diabetes and the Kidney, Concise Encyclopedia of Computer Science, and a customized version of Wi-Fi For Dummies contributed to the quarter's strength. An agreement was signed with Lilly to sponsor a series of newsletters based on Practical Diabetes International. Wiley Europe's general interest and consumer publishing program continues to generate publicity. First quarter highlights include the serialization se·ri·al·ize tr.v. se·ri·al·ized, se·ri·al·iz·ing, se·ri·al·iz·es To write or publish in serial form. se in national newspapers and magazines for Morrison/My Life Among the Serial Killers serial killer Forensic psychiatry A person who commits serial murders Prototypic SK White ♂ age 30; 97% are ♂; 80% are sociopaths. See Dahmer, Depraved heart murder, Ice Man. Cf Megan's law, Son of Sam law. ; Pound/Inside the Olympics; and Pescatore/The Hamptons Diet. Interior Angles, a new series in interior design, was launched during the quarter, as part of a revamped U.K. architecture list. The first title, Fashion Retail, was well received by the market. During the quarter, Wiley-VCH successfully launched the new journal, Plasma, Processes, and Polymers and published a number of new major reference works. Asia, Australia, and Canada Wiley's revenue in Asia, Australia, and Canada was flat during the first quarter, or off 2% excluding foreign currency effects. Encouraging growth throughout most of Asia was offset by sluggish results in Australia and Canada. Key Wiley Asia publications for the quarter included Lexus: The Relentless Pursuit by Business Week auto-correspondent Chester Dawson, as well as Structured Credit Products and Fixed Income Markets, both by Moorad Choudhry Moorad Choudhry is Head of Treasury at KBC Financial Products in London, the derivatives and convertible bond trading arm of KBC Bank N.V., Brussels. He joined there from JPMorgan Chase Bank, where he was a vice-president in Structured Finance Services sales and marketing. . The gradual economic recovery in Japan, combined with the development of a local market partnership with a major online bookseller, had a positive effect on results in Asia. Sales of Wiley's Higher Education products in Canada were below expectations. Nonetheless, the market response to eGrade Plus, including a Canadian adaptation for Weygandt/Accounting Principles, third edition, was positive. Wiley Canada's indigenous titles did well during the quarter, in particular, Pound/Inside the Olympics, which picked up interest outside of Canada. Wiley Australia won Secondary Publisher of the Year for the fifth consecutive year at the seventh annual Awards for Excellence in Australian Educational Publishing. Recognizing overall excellence, the award was granted by a panel of judges Panel of Judges is an indie pop band from Melbourne, Australia. Members
Conference Call Wiley will hold a conference call today, Wednesday, September 1, 2004, at 10:30 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) to discuss its financial results for the first quarter of fiscal year 2005. 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) 478-6251 International callers may participate by dialing: (913) 981-5558 A replay of the call will be available from 1:30 p.m. (EDT) on Wednesday, September 1 through midnight (EDT) on Tuesday, September 7, by dialing (888) 203-1112 or (719) 457-0820 and entering Passcode 989492. 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. . "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, 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 and (ix)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. 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 FIRST QUARTER
ENDED JULY 31, 2004 AND 2003
(in thousands, except per share amounts)
First Quarter
Ended July 31,
-----------------------------
2004 2003 % Change
--------- --------- ---------
Revenues $ 226,939 219,660 3%
Costs and Expenses
Cost of Sales 75,229 72,109 4%
Operating and Administrative Expenses 118,434 112,043 6%
Amortization of Intangibles 2,499 2,330 7%
--------- ---------
Total Costs and Expenses 196,162 186,482 5%
--------- ---------
Operating Income 30,777 33,178 -7%
Operating Margin 13.6% 15.1%
Interest Expense, Net 1,187 1,260
--------- ---------
Income Before Taxes 29,590 31,918 -7%
Provision for Income Taxes 9,706 10,118
--------- ---------
Net Income $ 19,884 21,800 -9%
========= =========
Income Per Share
Diluted $ 0.32 0.35 -9%
Basic $ 0.32 0.35
Average Shares
Diluted 62,851 62,964
Basic 61,442 61,686
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE FIRST QUARTER
ENDED JULY 31, 2004 AND 2003
(in thousands, except per share amounts)
First Quarter
Ended July 31,
-----------------------------
2004 2003 % Change
--------- --------- ---------
Revenues
----------------------------------------
US Segment
Professional/Trade $ 75,908 76,144 0%
Scientific, Technical and Medical 46,206 41,707 11%
Higher Education 45,475 47,768 -5%
--------- ---------
Total US 167,589 165,619 1%
European Segment 59,523 50,583 18%
Asia, Australia & Canada Segment 23,466 23,396 0%
Intersegment Sales Eliminations (23,639) (19,938) 19%
--------- ---------
Total Revenues $ 226,939 219,660 3%
========= =========
Direct Contribution to Profit
----------------------------------------
US Segment
Professional/Trade $ 15,551 18,188 -14%
Scientific, Technical and Medical 22,269 20,716 7%
Higher Education 16,051 18,684 -14%
--------- ---------
Total US 53,871 57,588 -6%
European Segment 18,694 15,422 21%
Asia, Australia & Canada Segment 3,191 4,143 -23%
--------- ---------
Total Direct Contribution to Profit 75,756 77,153 -2%
Shared Services and Administrative Costs
----------------------------------------
Distribution (11,739) (11,261) 4%
Information Technology & Development (12,269) (11,801) 4%
Finance (7,339) (7,051) 4%
Other Administration (13,632) (13,862) -2%
--------- ---------
Total Shared Services and Admin. Costs (44,979) (43,975) 2%
Operating Income $ 30,777 33,178 -7%
========= =========
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
July 31, April 30,
-----------------
2004 2003 2004
-------- -------- ----------
Current Assets
Cash & cash equivalents $ 40,424 8,085 82,027
Accounts receivable 146,168 134,128 127,224
Inventories 81,452 83,210 83,789
Deferred income tax benefit 18,115 27,156 18,113
Other current assets 11,973 13,956 12,853
-------- -------- ----------
Total Current Assets 298,132 266,535 324,006
Product Development Assets 58,022 61,397 60,755
Property and Equipment 115,835 114,599 117,305
Intangible Assets 280,644 280,106 276,440
Goodwill 195,400 193,354 194,893
Deferred income tax benefit 18,352 30,340 18,976
Other Assets 22,808 21,021 22,207
-------- -------- ----------
Total Assets 989,193 967,352 1,014,582
======== ======== ==========
Current Liabilities
Notes Payable & Current portion of
long-term debt - 45,000 -
Accounts and royalties payable 76,325 79,110 68,338
Deferred subscription revenues 90,028 83,524 127,224
Accrued income taxes 29,754 34,877 19,338
Deferred income taxes 5,784 - 5,721
Other accrued liabilities 63,945 56,675 85,744
-------- -------- ----------
Total Current Liabilities 265,836 299,186 306,365
Long-Term Debt 200,000 200,000 200,000
Accrued Pension liability 50,254 54,865 48,505
Other Long-Term Liabilities 31,258 28,184 31,757
Deferred Income Taxes 12,512 12,251 12,891
Shareholders' Equity 429,333 372,866 415,064
-------- -------- ----------
Total Liabilities & Shareholders'
Equity $989,193 967,352 1,014,582
======== ======== ==========
CONDENSED STATEMENTS OF CASH FLOWS
First Quarter
Ended July 31,
-----------------
2004 2003
-------- --------
Operating Activities
Net income $ 19,884 21,800
Amortization of intangibles 2,499 2,330
Amortization of composition costs 8,349 7,511
Depreciation of property and equipment 7,487 7,083
Other non-cash items 12,263 8,306
Change in deferred subscription revenue (37,528) (36,948)
Net change in operating assets and liabilities (19,279) (24,896)
-------- --------
Cash (Used for) Operating Activities (6,325) (14,814)
Investing Activities
Additions to product development assets (11,709) (12,885)
Additions to property and equipment (5,066) (5,633)
Acquisition of publishing assets, net of cash
acquired (5,709) (1,006)
-------- --------
Cash Used for Investing Activities (22,484) (19,524)
Financing Activities
Borrowings of short-term debt - 10,000
Purchase of treasury shares (9,784) -
Cash dividends (4,505) (4,035)
Proceeds from issuance of stock on option
exercises & other 1,350 2,633
-------- --------
Cash Provided by (Used for) Financing Activities (12,939) 8,598
Effects of Exchange Rate Changes on Cash 145 584
-------- --------
Decrease in Cash and Cash Equivalents for Period $(41,603) (25,156)
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