John Wiley & Sons, Inc. Reports Record Revenue, Operating Income, and EPS in Fiscal Year 2006.HOBOKEN, N.J. -- John Wiley John Wiley may refer to:
See: New York Stock Exchange : JWa) (NYSE: JWb) announced today record revenue, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , and 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. for fiscal year 2006. Full-year revenue increased 7% to $1.0 billion, or 8% 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. . Operating income of $153 million advanced 8%, or 9% excluding foreign currency effects. 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 $1.61 rose 10%, excluding certain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax adjustments noted below. Including the tax adjustments, earnings per diluted share for the year rose 37% to $1.85 per diluted share. All of Wiley's businesses around the world contributed to the year-on-year revenue and operating income growth. "As Wiley approaches its bicentennial bi·cen·ten·ni·al adj. 1. Happening once every 200 years. 2. Lasting for 200 years. 3. Relating to a 200th anniversary. n. A 200th anniversary or its celebration. Also called bicentenary. in 2007, I am proud to report that the Company reached another significant milestone in fiscal year 2006, revenue of $1 billion. This milestone and record levels of operating income and EPS, reflect Wiley's competitive strengths - our highly regarded global brands and must-have content; our ability to adapt and innovate in·no·vate v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new. to serve customers better; and an effective blend of long-term vision and operational excellence," said William J. Pesce, President and Chief Executive Officer. "Wiley's greatest strength is our unique culture, which enables us to attract and retain an extraordinary team of committed and creative colleagues. In a recent survey to which 97% of our colleagues around the world responded, they identified commitment, trust and respect, and teamwork as characteristics that distinguish Wiley. In addition, for the second consecutive year, Wiley was recognized by FORTUNE magazine in its list of 100 Best Companies to Work For," he continued. Mr. Pesce concluded, "We are pleased with our performance in fiscal year 2006 and well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. growth opportunities. Based on 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 anticipate fiscal year 2007 revenue growth in the mid-single digits and EPS growth in the high single digits, excluding tax adjustments." In fiscal year 2006, the Company generated $150 million in free cash flow. During the year, free cash flow of $109 million was used to acquire 2.8 million shares of Class A common stock; for the acquisition of publishing assets in several transactions aggregating to $31 million; for the payment of $21 million in cash dividends to shareholders; and $33 million for debt repayment. The Company's management evaluates performance based on several measures, including non-GAAP measure of free cash flow, as presented in the attached financial schedules. The Company believes free cash flow is an important measure of the financial strength of its business. Since free cash flow is not calculated in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , it should not be considered as a substitute for other GAAP measures as an indicator of operating performance. For the fourth quarter, revenue increased over the previous year by 10% to $267 million, or 12%, excluding foreign currency effects. Operating income improved 14% to $22.9 million, or 16% adjusted for foreign currency. All of Wiley's businesses contributed to the strong fourth quarter. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter advanced 25% to $0.25, excluding the tax adjustment noted below. Tax adjustments As previously discussed in the Company's Annual Report filed on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal year 2005, pursuant to guidance issued by the Internal Revenue Service in May 2005, the Company recorded a tax benefit of approximately $7.5 million, or $0.12 per diluted share, in the first quarter of fiscal year 2006, and reduced income taxes due on the fiscal year 2005 repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of earnings from its European subsidiaries. The tax benefit offsets a tax charge of $7.5 million recorded in the fourth quarter of fiscal year 2005, neither of which had a cash impact to the Company. A $6.8 million, or $0.11 per diluted share, tax benefit related to the favorable resolution of certain tax matters with tax authorities was also reported for the full year ending April 30, 2006. The Company's management excludes these tax items for comparative purposes so as to not distort the underlying operating performance of the Company. 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 ): Revenue growth of Wiley's U.S. P/T business accelerated throughout fiscal year 2006, culminating in a strong fourth quarter. Revenue for the full year advanced 9% to $380 million, while the fourth quarter's revenue reached a record $106 million, 13% over the same period during the previous year. Virtually all of P/T's publishing categories and sales channels contributed to the strong results, with standout performances by the technology, business, finance and architectural programs, as well as global rights and website advertising. P/T's finance and leadership programs, as well as the Sybex acquisition and the popularity of the Sudoku for Dummies series, helped to deliver the record-setting results. Direct contribution to profit was up 5% for the year and 1% for the quarter. The improvement in top-line results was partially offset by higher inventory costs and the timing of performance-based compensation in the fourth quarter. A number of successful titles led the way, notably The Little Book That Beats the Market by Joel Greenblatt Joel Greenblatt (born December 13, 1957 in Great Neck, New York) is chairman of The St. Lawrence Seaway Corporation (OTC:STLS) based in Indianapolis, IN, a hedge fund manager, value investing guru, and adjunct professor at the Columbia University Graduate School of Business. ; Sudoku For Dummies, Volumes 1-3 by Andrew Herron and Edmund James; Weight Watcher's New Complete Cookbook (programming) cookbook - (From amateur electronics and radio) A book of small code segments that the reader can use to do various magic things in programs. One current example is the "PostScript Language Tutorial and Cookbook" by Adobe Systems, Inc (Addison-Wesley, ISBN ; 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. Cookbook: Everything You Need to Know to Cook Today; and Hedgehogging by Barton Biggs Barton M. Biggs, well-known in the investment world, runs Traxis Partners, a hedge fund based in Greenwich, Connecticut. He formerly held the title of "chief global strategist" for Morgan Stanley and was with that firm for 30 years. . Several perennial favorites Track listing
Deborah Davis is an American citizen who refused to show her identification papers on September 26, 2005 to federal police . A new series, Frommer's Day by Day, and the first Frommers.com Podcast, successfully extended this key brand. Media attention was particularly focused on a number of titles tied to current affairs current affairs npl → (noticias fpl de) actualidad f current affairs current npl → (questions fpl d')actualité f (Bird Flu bird flu: see influenza. bird flu or avian influenza viral respiratory disease, mainly of birds including poultry and waterbirds but also transmissible to humans. by Marc Siegel and The Global Class War by Jeff Faux); popular products (The Bear Necessities of Business: Building a Company with Heart by Maxine Clark and Amy Joyner at the flagship Build-a-Bear store); or movies (Party of the Century by Deborah Davis which capitalized on the success of the movie, Capote, as well as well-known authors (The Poker Face of Wall Street, Aaron Brown For other persons named Aaron Brown, see Aaron Brown (disambiguation). Aaron Brown (born November 10, 1948) is an American broadcast journalist. He is the former host of NewsNight with Aaron Brown on CNN. He is currently the John J. and Hedgehogging by Barton Biggs). Aggressive marketing kept Wiley brands and titles in the public eye, including a major advertising campaign for Little Book That Beats the Market in The Wall Street Journal and Bloomberg radio; the annual For Dummies month promotions; and a pay-per-view webcast with Amazon.com, featuring author Pat Lencioni. More than 800 articles were adapted from the For Dummies text for licensing with Yahoo Tech, a new website that provides consumers with plain-English advice and information on technology. Another agreement with Microsoft was signed to license content from seven of Wiley's top cookbooks The following is a list of cookbooks, sorted alphabetically by author's surname. This is not a list of external links to commercial sites; please list only cookbooks here. This literature-related list is incomplete; you can help by [ expanding it]. , including How to Cook Everything by 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 , Cooking at Home with The Culinary Institute of America, and Mr. Boston: Official Bartender's and Party Guide by Mr. Boston, Anthony Giglio and Steven McDonald Steven McDonald is a third-generation [New York City]] police detective who was shot in the line of duty by three bullets fired by a 15 year old boy he was questioning about bicycle thefts in Central Park, New York City, on July 12, 1986. . Mark Bittman received a James Beard Foundation The James Beard Foundation is a New York-based national professional non-profit organization named in honor of James Beard that serves to promote the culinary arts by honoring chefs, wine professionals, journalists, and cookbook authors at annual award ceremonies and providing Media Broadcast Award in the category National Television Food Show for his work as host of the PBS PBS in full Public Broadcasting Service Private, nonprofit U.S. corporation of public television stations. PBS provides its member stations, which are supported by public funds and private contributions rather than by commercials, with educational, cultural, series, How to Cook Everything, which is tied in with the Wiley title of the same name. The Handbook of 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 in Government by Stephen Condrey won "Best Public Sector Human Resources Management Book" award of the American Society for Public Administration The American Society for Public Administration (ASPA) is a membership association in the United States sponsoring conferences and providing professional services primarily to those who study the implementation of government policy, public administration, and, to a lesser degree, . Lee Shulman Lee S. Shulman is an educational psychologist who has made notable contributions to the study of teacher education, assessment of teaching, and education in the fields of medicine, science and mathematics. , President of the Carnegie Foundation
The Carnegie Foundation ("Carnegie Stichting" in Dutch) is an organization based in The Hague, The Netherlands. for the Advancement of Teaching, won the prestigious Grawemeyer Award The Grawemeyer Award is a prestigious and lucrative award presented each year by the University of Louisville in the state of Kentucky, United States. Initiated in 1985, the award is presented to individuals in the fields of education, improving world order, music composition, in Education for 2006 for The Wisdom of Practice. Acquisitions completed earlier in the fiscal year included substantially all the publishing assets of Sybex Inc., a global publisher of technology titles. 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 delivered consistently excellent results throughout fiscal year 2006, growing revenue over prior year by 8% to $206 million. Direct contribution to profit also rose by 8% for the year. Fourth quarter revenue of $58 million advanced 7% over the previous year's fourth quarter. Direct contribution to profit in the fourth quarter increased by 1% as higher revenue was partially offset by higher selling and marketing costs principally due to timing. Subscription and non-subscription revenue from journal backfiles, advertising, and commercial reprints contributed significantly to these results. The reference book program completed its second year of strong growth driven by strong title output and global market strength. STM also benefited from recent acquisitions of Dialysis dialysis (dīăl`ĭsĭs), in chemistry, transfer of solute (dissolved solids) across a semipermeable membrane. Strictly speaking, dialysis refers only to the transfer of the solute; transfer of the solvent is called osmosis. & Transplantation, a medical journal and InfoPOEMs, a provider of evidence-based medicine evidence-based medicine Decision-making 'The use of scientific data to confirm that proposed diagnostic or therapeutic procedures are appropriate in light of their high probability of producing the best and most favorable outcome'. See Meta-analysis. content. Wiley InterScience, the Company's online service, reached a milestone midway through the fiscal year: more than one million journal articles are now available online. The value of this growing body of literature to the global research community can be quantified in the concurrent increase in the number of users, as well as the number of manuscripts submitted for publication. In fiscal year 2006, U.S. STM received approximately 9% more journal manuscripts and published 8% more journal pages than the previous year. During the fourth quarter, over 16 million visits to Wiley InterScience were recorded, representing a 30% increase over the same period in the previous year. In addition, more people gained access to Wiley InterScience by taking advantage of alternate purchasing programs, such as Pay-Per-View, which began offering individual article sales from the growing backfile collection during this year. At the end of the fiscal year, Wiley participated with Microsoft in the launch of Windows Live A family of free desktop and Web-based applications from Microsoft, most of which can be accessed from a personal home page as well as a Windows Live browser toolbar. Launched in late 2005, Microsoft integrated and rebranded its Hotmail and MSN and Windows instant messaging as "Windows Academic Search pilot, which improves the search capabilities of journal content from Wiley and ten other major STM publishers. Important publications during the fourth quarter include the inaugural issue of a pharmaceutical-company sponsored Chinese-language digest version of Hepatology; the Physics and Astronomy Backfile, which includes the oldest journal published by Wiley, Annalen der Physik Annalen der Physik is one of the best-known and oldest (since 1790) physics journals worldwide. The journal publishes original papers in the areas of experimental, theoretical, applied and mathematical physics and related areas. , founded in 1799; the first two issues of the Journal of Hospital Medicine; and a refurbished Annals an·nals pl.n. 1. A chronological record of the events of successive years. 2. A descriptive account or record; a history: "the short and simple annals of the poor" of Neurology neurology (n  rŏl`əjē, ny–), study of the morphology, physiology, and pathology of the human nervous system. . Also released during
the quarter were the new 18th edition of the Merck Manual; the 8th
edition of The Wiley Registry of Mass Spectral Data; and a wide array of
single and multi-volume reference works.During the fourth quarter, the Company reached an agreement with the Institute of Electrical and Electronics Engineers Not to be confused with the Institution of Electrical Engineers (IEE). The Institute of Electrical and Electronics Engineers or IEEE (pronounced as eye-triple-e of Japan to publish a new English-language journal, IEEJ IEEJ Institute of Electrical Engineers of Japan Transactions; extended its long-term publishing agreement for the Journal of Research in Science Teaching; and began publication of the Journal of Orthopedic orthopedic /or·tho·pe·dic/ (-pe´dik) pertaining to the correction of deformities of the musculoskeletal system; pertaining to orthopedics. Research in partnership with the Orthopedic Research Society. 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. : Wiley's U.S. Higher Education business increased 4% to $156 million in fiscal year 2006. Continuing to build on the strength experienced in the third quarter, fourth quarter revenue advanced 15% to $23 million compared to the previous year's quarter. Higher Education's direct contribution to profit for the year and quarter improved $2 million over the prior year periods. The mathematics, life sciences, engineering and computer science programs performed extremely well during the quarter and year, with strong showings by Tortora/Principles of Anatomy and Physiology; Black/Microbiology; Voet/Fundamentals of Biochemistry biochemistry, science concerned chiefly with the chemistry of biological processes; it attempts to utilize the tools and concepts of chemistry, particularly organic and physical chemistry, for elucidation of the living system. ; Hughes-Hallet/Calculus; Anton/Calculus; Munson/Fluid Mechanics; and Horstman/Big Java. WileyPLUS continued to gain traction during fiscal year 2006, as more students and faculty around the world chose to use its customizable multi-format suite of content, teaching and learning tools to help them do homework, study for tests, assess coursework coursework Noun work done by a student and assessed as part of an educational course Noun 1. coursework - work assigned to and done by a student during a course of study; usually it is evaluated as part of the student's , and administer classes. During the fiscal year the number of adoptions and units sold worldwide increased significantly over the previous year. Wiley has developed a wide array of products at varied price points. The Company is now offering over 50 titles in Wiley Desktop Editions, which are in downloadable e-text format, intended for students who want lower-priced versions of textbooks. Wiley began to produce Desktop Editions in partnership with VitalSource Technologies, Inc. during the second quarter and expects to nearly double the number of titles in the program by calendar year-end. Soon after the end of the fiscal year, Wiley became Microsoft's sole publishing partner worldwide for all Microsoft Official Academic Course (MOAC MOAC Message Origin Authentication Check MOAC Mother of All Celebrations MOAC Multi Organization Access Control ) materials. Microsoft and Wiley will collaborate on a new co-branded series of textbook and e-learning products for the higher education market, to be released under Wiley-Microsoft logos. Wiley will also assume responsibility for the sale of existing MOAC titles. The new series will offer topics covering Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. Vista, Microsoft Office Microsoft's primary desktop applications for Windows and Mac. Depending on the package, it includes some combination of Word, Excel, PowerPoint, Access and Outlook along with various Internet and other utilities. Systems 2007, and the Windows Server See Windows Server 2008, Windows Server 2003, Windows Home Server, Windows 2000 and Windows NT. codenamed "Longhorn The code name for the Windows Vista operating system. After the client version was renamed "Vista" in 2005, Longhorn referred to the server version until it was officially named Windows Server 2008 in May of 2007. See Windows Vista. ." All titles will be marketed globally and available in several languages. With Microsoft's position as the world's leading software company and Wiley's global presence in higher education, the alliance is an ideal strategic fit. Earlier in the year, Higher Education extended its global alliance with the National Geographic Society National Geographic Society U.S. scientific society founded in 1888 in Washington, D.C., by a small group of eminent explorers and scientists “for the increase and diffusion of geographic knowledge. to create new products sold exclusively with Wiley textbooks and WileyPLUS. Europe: Fiscal year 2006 was another strong year for Wiley's European-based companies, with revenues for the year advancing 9% over the prior year to $292 million, or 12% excluding foreign currency effects. Virtually all of Wiley Europe's businesses, product lines, and markets contributed to the performance. Strong performance was exhibited in P/T and STM book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. , as well as journals. Global sales from the Sudoku For Dummies series contributed to the increase in P/T revenue. Revenue for the fourth quarter was $80 million, an increase over the prior year of 6%, or 11% excluding foreign currency effects. Direct contribution to profit was consistent with revenue growth for the quarter and year, both including and excluding foreign exchange effects. Best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best books included products as diverse as the second edition of Encyclopedia of Inorganic Chemistry The Encyclopedia of Inorganic Chemistry is published in print and online by John Wiley & Sons Ltd. Overview The Encyclopedia of Inorganic Chemistry has both a ten-volume print edition and an online edition. , edited by R. Bruce King Bruce King (born April 6, 1924, Stanley, New Mexico) was a three term Democratic governor of the state of New Mexico. King served in the US Army during World War II. After the war, he attended the University of New Mexico in Albuquerque. , and the enormously popular Sudoku For Dummies and Kakuro For Dummies. The power of the For Dummies brand was evidenced by the publication of a six-figure print run of a custom mini-book for the World Cup, Winning on Betfair For Dummies. The German For Dummies program published 51 new titles and 49 reprints during fiscal year 2006. The expansion of Wiley Europe's publishing portfolio has opened up new markets and customer groups. The technology channel saw strong growth throughout the year with a series of agreements with major telecommunications corporations. In February, the Company entered a popular new market with the acquisition of Fernhurst Books, a best-selling list of manuals and guides on sailing, boating, and other nautical nau·ti·cal adj. Of, relating to, or characteristic of ships, shipping, sailors, or navigation on a body of water. [From Latin nauticus, from Greek nautikos, from sports. The first seven titles of the Securities and Investment Institute series published during fiscal year 2006. Wiley Europe's new journals, small, an interdisciplinary journal on nanoscience and nanotechnology embracing materials science materials science Study of the properties of solid materials and how those properties are determined by the material's composition and structure, both macroscopic and microscopic. , physics, chemistry and biosciences and the related engineering areas; ChemMedChem; and the Biotechnology Journal, all performed well. Chemistry-An Asian Journal, an alliance between Wiley-VCH, the German Chemical Society, and a number of the major Asian chemical societies, gained traction during the year as a number of new societies signed on, including The Singapore National Institute of Chemistry and the Chemical Society Located in Taipei. The Cochrane Library The Cochrane Library is a collection of databases in medicine and other healthcare specialties provided by the Cochrane Collaboration. At its core is a database of systematic reviews and meta-analyses which summarise and interpret the results of high-quality medical research. , an evidence-based medicine collection available through Wiley InterScience, finished the year strongly reflecting Wiley's ability to increase revenue through the Company's multiple sales channels. To extend Wiley's product offering in evidence-based medicine, Wiley Europe and Duodecim Medical Publications Limited of Helsinki, Finland announced an expanded agreement to grant Wiley Grant Wiley was an American football linebacker who played college football for the West Virginia Mountaineers. Wiley is one of a handful of consensus All-Americans from West Virginia University. Wiley is currently a model. the exclusive publishing, sales, and distribution rights of its English language English language, member of the West Germanic group of the Germanic subfamily of the Indo-European family of languages (see Germanic languages). Spoken by about 470 million people throughout the world, English is the official language of about 45 nations. version of Evidence-Based Medicine Guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. (EBM EBM Evidence-Based Medicine EBM Electronic Body Music EBM ecosystem-based management EBM Evidence Based Medical (statistics) EBM Environmentally Benign Manufacturing EBM Expressed Breast Milk EBM Executive Board Meeting Guidelines). The guidelines are designed to be read on small screens, and are available via the Internet and through Personal Digital Assistants (PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). ) devices. Asia, Australia, and Canada: Wiley's revenue in Asia, Australia, and Canada advanced 14% over the previous year to $124 million, or 12% excluding foreign currency effects. Higher Education and School publishing in Australia and P/T sales in Asia and Canada drove the improvement over the prior year. Direct contribution to profit for the year increased 8%, or 3% excluding foreign currency effects. Revenue growth was partially offset by product mix in Canada and Asia. Fourth quarter revenue advanced 40% to $30 million, or 41% excluding foreign-currency effects. The timing of School sales in Australia and higher P/T sales in Canada and Asia contributed to the fourth quarter improvement. Wiley Asia sustained growth across all product lines, particularly in India, Japan and China. Wiley Canada's P/T performance was very strong and its Higher Education program was solid. In Australia, all three businesses delivered strong results. At the end of the third quarter, Wiley Asia acquired the remaining outstanding shares of Wiley Dreamtech (India) Private LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . The acquisition is an important step in the Company's plans to grow Wiley's presence in India, extending its sales and marketing reach and building local publishing capabilities in an important and rapidly growing market. Wiley acquired a majority interest in Dreamtech in 2001 as part of its highly successful acquisition of Hungry Minds, Inc. Wiley Australia was once again named Secondary Publisher of the Year by the Australian Publishers Association and Higher Education Publisher of the Year by the Australian Campus Booksellers Association, for the 9th and 8th times, respectively, during the last decade. Wiley Australia was also awarded, for the fifth year in a row, the 'Employer of Choice for Women' citation by the Federal Government's Equal Opportunity in the Workplace Agency. Wiley is the only publisher to earn this honor during the program's entire five-year history. Considerable success was achieved in Canada with the sale of WileyPLUS, demonstrating the product's global appeal. The number of titles available with WileyPLUS more than doubled from fiscal year 2005, giving the sales force opportunity to sell it into more course areas. During fiscal year 2006, Wiley Canada added to its indigenous P/T program by becoming a key publisher in the regional real estate markets. Sales throughout the year in real estate investing Real estate investing involves the purchase of real estate for profit. Profits are accumulated slowly by renting out properties in a cashflow method, or are generally improved and resold for a capital gain. , home inspection, property management, tax, and other subcategories were very strong, as the Company added a number of titles to its portfolio. Conference Call Instructions Wiley will hold a conference call on Thursday, June 15, at 3 p.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 fourth quarter and full year of fiscal year 2006. 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 Callers outside the U.S. may participate by dialing: (719) 457-2692 A replay of the call will be available from Friday, June 16 through midnight (EDT) on Wednesday, June 21 by dialing (888) 203-1112 or (719) 457-0820 and entering Passcode 9145153. 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 FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2006 AND 2005
(in thousands, except per share amounts)
Fourth Quarter Ended Twelve Months Ended
ADJUSTED (A) April 30, April 30,
------------- --------------------- --------------------
% %
Cha- Cha-
2006 2005 nge 2006 2005 nge
------- ------- ---- -------- ------- ---
Revenue $266,564 241,631 10% 1,044,185 974,048 7%
Costs and Expenses
Cost of Sales 87,697 78,877 11% 342,314 325,061 5%
Operating and
Administrative Expenses 152,408 139,494 9% 535,694 496,726 8%
Amortization of
Intangibles 3,508 3,205 9% 13,498 10,880 24%
------- ------- -------- -------
Total Costs and Expenses 243,613 221,576 10% 891,506 832,667 7%
------- ------- -------- -------
Operating Income 22,951 20,055 14% 152,679 141,381 8%
Operating Margin 8.6% 8.3% 14.6% 14.5%
Interest Expense and
Other, Net 1,597 997 8,835 5,718
------- ------- -------- -------
Income Before Taxes 21,354 19,058 12% 143,844 135,663 6%
Adjusted Provision for
Income Taxes (A) 6,836 6,875 -1% 47,768 44,346 8%
------- ------- -------- -------
Adjusted Net Income (A) $14,518 12,183 19% 96,076 91,317 5%
======= ======= ======== =======
Adjusted Income Per
Share (A)
Diluted $ 0.25 0.20 25% 1.61 1.47 10%
Basic $ 0.25 0.20 1.65 1.50
Reconciliation of Non-GAAP Adjusted Financial Disclosure
---------------------------------------------------------
Adjusted Net Income $14,518 12,183 96,076 91,317
Tax Benefits (A) - (7,476) 14,252 (7,476)
------- ------- -------- -------
Net Income - as Reported $14,518 4,707 208% 110,328 83,841 32%
======= ======= ======== =======
Adjusted Income Per Share -
Diluted $ 0.25 0.20 1.61 1.47
Tax Benefits (A) - (0.12) 0.24 (0.12)
Income Per Share -
Diluted as Reported $ 0.25 0.08 213% 1.85 1.35 37%
======= ======= ======== =======
Average Shares
Diluted 58,679 60,949 59,792 62,093
Basic 57,090 59,443 58,071 60,721
(A) For the fourth quarter ending April 30, 2005, the adjusted amounts
above exclude a $7.5 million, or $0.12 per diluted share, tax
accrual recorded on the repatriation of dividends from European
subsidiaries in the fourth quarter of fiscal year 2005. On May 10,
2005, the US Internal Revenue Service issued Notice 2005-38. The
notice provided for a tax benefit, which was recorded by the
Company in the first quarter of fiscal year 2006, that fully
offset the tax accrued by the Company on foreign dividends in the
fourth quarter of fiscal year 2005. Neither the first quarter
fiscal year 2006 tax benefit nor the corresponding fourth quarter
fiscal year 2005 tax accrual had a cash impact to the Company.
For the twelve-month period ending April 30, 2006, the adjusted
amounts above also exclude a $6.8 million, or $0.11 per diluted
share, tax benefit recorded in the third quarter of fiscal year
2006 related to the settlement of certain matters with tax
authorities.
The Company's management evaluates performance excluding unusual
and/or nonrecurring events. The Company believes excluding such
events provides a more effective and comparable measure of
performance. Since the adjusted amounts are not measures
calculated in accordance with GAAP, they should not be considered
as a substitute for other GAAP measures, including net income and
earnings per share, as reported, as an indicator of operating
performance.
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2006 AND 2005
(in thousands, except per share amounts)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
--------------------- --------------------
% %
Cha- Cha-
2006 2005 nge 2006 2005 nge
------- ------- ---- -------- ------- ---
Revenue
-------------------
US Segment
Professional/Trade $105,555 93,493 13% 380,191 350,338 9%
Scientific, Technical
and Medical 57,975 54,380 7% 206,008 190,515 8%
Higher Education 22,537 19,561 15% 156,235 150,905 4%
------- ------- -------- -------
Total US 186,067 167,434 11% 742,434 691,758 7%
European Segment 79,684 75,165 6% 292,462 268,857 9%
Asia, Australia &
Canada Segment 29,859 21,325 40% 123,950 108,649 14%
Intersegment Sales
Eliminations (29,046)(22,293) 30% (114,661 (95,216)20%
------- ------- -------- -------
Total Revenue $266,564 241,631 10% 1,044,185 974,048 7%
======= ======= ========= =======
Direct Contribution to Profit
-----------------------------
US Segment
Professional/Trade $29,962 29,682 1% 106,971 102,326 5%
Scientific, Technical and
Medical 27,153 26,598 2% 96,009 88,899 8%
Higher Education (3,590) (5,442) 34% 40,065 38,221 5%
------- ------- -------- -------
Total US 53,525 50,838 5% 243,045 229,446 6%
European Segment 27,017 25,379 6% 93,415 86,226 8%
Asia, Australia &
Canada Segment 4,267 3,074 39% 26,747 24,868 8%
------- ------- -------- -------
Total Direct Contribution
to Profit 84,809 79,291 7% 363,207 340,540 7%
Shared Services and Administrative Costs
-----------------------------------------
Distribution (13,925)(12,321) 13% (50,260)(47,631) 6%
Information Technology &
Development (17,779)(17,115) 4% (62,732)(55,074)14%
Finance (8,921) (9,635) -7% (32,594)(34,390)-5%
Other Administration (21,233)(20,165) 5% (64,942)(62,064) 5%
------- ------- -------- -------
Total Shared Services and
Admin. Costs (61,858)(59,236) 4% (210,528)(199,159)6%
Operating Income $22,951 20,055 152,679 141,381
======= ======= ======== =======
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
April 30, April 30,
2006 2005
---------- ----------
Current Assets
Cash & cash equivalents $ 60,757 89,401
Marketable securities - 10,000
Accounts receivable 158,275 137,787
Inventories 88,578 83,372
Deferred income tax benefit 5,536 5,921
Other current assets 13,162 12,437
---------- ----------
Total Current Assets 326,308 338,918
Product Development Assets 65,641 61,511
Property, Equipment and Technology 102,123 115,383
Intangible Assets 302,384 291,041
Goodwill 198,416 195,563
Deferred Income Tax Benefit 3,809 4,285
Other Assets 27,328 25,868
---------- ----------
Total Assets 1,026,009 1,032,569
========== ==========
Current Liabilities
Accounts and royalties payable 97,231 70,958
Deferred subscription revenues 143,923 142,766
Accrued income taxes 24,226 36,376
Other accrued liabilities 96,729 91,211
---------- ----------
Total Current Liabilities 362,109 341,311
Long-Term Debt 160,496 196,214
Accrued Pension Liability 56,068 62,116
Other Long-Term Liabilities 35,627 34,652
Deferred Income Taxes 9,869 1,702
Shareholders' Equity 401,840 396,574
---------- ----------
Total Liabilities & Shareholders' Equity $1,026,009 1,032,569
========== ==========
JOHN WILEY & SONS, INC.
STATEMENT OF FREE CASH FLOW
(in thousands)
Twelve Months Ended
April 30
-----------------------
2006 2005
---------- ----------
Operating Activities:
Net income $ 110,328 83,841
Amortization of intangibles 13,498 10,880
Amortization of composition costs 36,473 36,026
Depreciation of property, equipment
and technology 32,031 31,447
Special non-cash tax (benefits) /
provisions (14,252) 7,476
Reserves for returns, doubtful accounts,
and obsolescence 12,961 1,250
Deferred income taxes 5,009 17,283
Pension expense, net of contributions 8,429 (3,914)
Earned royalty advances and other 26,545 25,036
Change in deferred subscription revenue 390 14,446
Net change in operating assets and
liabilities 11,230 19,715
---------- ----------
Cash Provided by Operating Activities 242,642 243,486
Investments in organic growth:
Additions to product development assets (70,921) (64,407)
Additions to property, equipment and
technology (21,355) (26,826)
---------- ----------
Free Cash Flow 150,366 152,253
Other Investing and Financing Activities:
Acquisitions, net of cash (31,354) (22,527)
Sale (Purchase) of marketable securities 10,000 (10,000)
Repayment of debt under old credit
facility (336,298) (50,000)
Borrowings under new long-term credit
facility 303,754 45,992
Purchase of treasury shares (108,867) (94,786)
Cash dividends (21,103) (18,125)
Proceeds from issuance of stock on
option exercises and other 5,173 3,444
---------- ----------
Cash Used in Investing and
Financing Activities (178,695) (146,002)
---------- ----------
Effects of Exchange Rate Changes on Cash (315) 1,123
---------- ----------
Decrease in Cash and Cash Equivalents
for Period $ (28,644) 7,374
========== ==========
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
Additions to product development
assets $ (70,921) (64,407)
Additions to property, equipment and
technology (21,355) (26,826)
Acquisitions, net of cash (31,354) (22,527)
Sale (Purchase) of marketable securities 10,000 (10,000)
---------- ----------
Cash Used for Investing Activities $ (113,630) (123,760)
========== ==========
Financing Activities:
Cash Used in Investing and Financing
Activities $ (178,695) (146,002)
Less:
Acquisitions, net of cash (31,354) (22,527)
Sale (Purchase) of marketable securities 10,000 (10,000)
---------- ----------
Cash Used in Financing Activities $ (157,341) (113,475)
========== ==========
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