John Wiley & Sons, Inc. Reports Revenue and Operating Income Growth for the First Quarter.HOBOKEN, N.J. -- John Wiley John Wiley may refer to:
See: New York Stock Exchange :JWa) (NYSE:JWb) announced today that first quarter revenue and 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. increased 4% to $237 million and $32 million, respectively. 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 increased 6% to $0.34 compared to $0.32 in the prior year, excluding an income tax benefit described below. Including the tax benefit, first quarter earnings per diluted share was $0.46. "Wiley's first quarter performance was driven primarily by continued strength in our global Scientific, Technical and Medical business. Professional/Trade also contributed to the year-on-year growth, while Higher Education's revenue was essentially flat with last year's first quarter. Operating income growth reflects the effect of improved gross margins principally due to product mix," said William J. Pesce, President and 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 reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re our guidance for fiscal year 2006 revenue growth in the mid-to-high single digits 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. growth greater than that of revenue." During the quarter the Company repurchased approximately 542,000 common shares of stock at an average price of $39.32. 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 recorded in the fourth quarter of fiscal year 2005, neither of which had a cash impact to the Company. The Company has excluded this tax item 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 ) Wiley's U.S. P/T revenue for the first quarter advanced 3% over prior year, while direct contribution to profit increased 21%. Solid sales results in business, psychology, and education drove these results. Revenue from the Company's recent acquisition of Sybex, a global publisher of computer and software information technology titles, contributed approximately $1 million in revenue for the quarter. Sales growth through online outlets is continuing at a healthy rate. P/T is well positioned to take advantage of the largest release of books in its history during the second quarter. First quarter highlights include the publication of Dan Denning's The Bull Hunter; Matthew Simmons' Twilight twilight, period between sunset and total darkness or between total darkness and sunrise. Total darkness does not occur immediately when the sun sinks below the horizon because light from the sun that strikes the atmosphere is scattered (both by the air itself and by in the Desert, well-timed due to the recent oil price increases and the book's focus on global oil supplies; and McKinsey & Company's Valuation 4e, the best selling and most respected corporate valuation title in the market, which is also packaged in a widely used university edition with online course material. Top consumer technology publications that were published during the quarter, such as Peter Bauer's Photoshop CS2 For Dummies and Bob Levitus' Mac OS X Tiger See Tiger and Mac OS X. For Dummies, reflect the demand for books on recent major software releases. 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>. the popularity of the Su Doku puzzle game, P/T published Andrew Heron and Edmund James' Su Doku For Dummies in both Europe and the U.S. Another timely release during the quarter was the Tour de France Tour de France World's most prestigious and difficult bicycle race. Staged for three weeks each July—usually in some 20 daylong stages—the Tour typically comprises 20 professional teams of nine riders each and covers some 3,600 km (2,235 miles) of flat and For Dummies by Phil Liggett Phil Liggett MBE (born 1943) is a sports journalist and commentator on the Versus (TV channel) and ITV, for the Tour de France and other bike races. He is likely the most popular English-speaking cycling commentator, and he is often called the English-speaking "Voice of the Tour de , James Raia, and Sammarye Lewis, with a foreword fore·word n. A preface or an introductory note, as for a book, especially by a person other than the author. foreword Noun an introductory statement to a book Noun 1. by Lance Armstrong Lance Armstrong (born Lance Edward Gunderson on September 18, 1971) is a retired American professional road racing cyclist. He won the Tour de France—cycling's most prestigious race—seven consecutive times, from 1999 to 2005. . Several P/T titles received considerable attention from the media and customers. Both The Bull Hunter and Twilight in the Desert hit The Wall Street Journal Bestseller List. Other titles that were on national and regional bestseller lists include Patrick Lencioni's Five Dysfunctions of a Team; the J.K. Lasser's Income Tax Guide 2005; Michael Masterson's Automatic Wealth; Eric Tyson and Ray Brown's Home Buying For Dummies; Eric Tyson's Investing For Dummies; and Sarah Glendon Lyons and John E. Lucas' Mortgages For Dummies. The publicity surrounding the May release of Jeffery Young's Icon: Steve Jobs Steve Jobs - Stephen Jobs , The Greatest Second Act in the History of Business, continued to drive sales throughout the first quarter. Several Wiley authors received awards during the quarter. The Council for Advancement and Support of Education The Council for Advancement and Support of Education (CASE) is a nonprofit association of educational institutions. It serves professionals in the field of educational advancement. bestowed their John Grenzebach Award for Outstanding Research in 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. to Richard Chair, William Ryan The name William Ryan can refer to:
n the revisiting and reconstruction of a patient's view of an experience to imbue it with a different usually more positive meaning in the the Work of 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. Boards. The organization also named Alan Wendroff as recipient of the H.S. Warwick Research Award for his book, Special Events: Proven Strategies for Nonprofit Fundraising
James Beard (May 5, 1903–January 21, 1985) was an American chef and food writer. James Beard is recognized by many as the father of American gastronomy. Awards. Three journals won 2005 APEX apex (a´peks) pl. apexes, a´pices [L.] tip; the pointed end of a conical part; the top of a body, organ, or part.ap´ical apex of lung the rounded upper extremity of either lung. Awards of Excellence in May, the Journal of Organizational Excellence for Best Printed Journal; Leader to Leader for Best Magazine and Journal Writing and Best Design and Layout; and Alternatives to the High Cost of Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. for Best Newsletter Writing. In July, the Company acquired the publication rights to seven newsletters from the Manisses Communications Group, a leading provider of mental health and addiction information. Five of the seven newsletters have long-standing affiliations with Brown University. In late May, Wiley completed the acquisition of substantially all the assets of Sybex. Its integration with Wiley is well underway. 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 once again started the year on a strong note, with revenue up 6% over last year's solid first quarter. Direct contribution to profit increased 10%. Non-subscription revenue, especially journal backfile sales, contributed nicely to the year-on-year growth. The STM book program and subscription journals performed well, each experiencing a 6% revenue improvement over prior year. Globally, STM revenue grew approximately 6%. In addition to healthy subscription journal license renewals, several new Enhanced Access Licenses (EAL EAL English as an Additional Language EAL Evaluation Assurance Level EAL Eastern Airlines EAL Emergency Action Level EAL Environmental Analysis Laboratory EAL Evidence Analysis Library (American Dietetic Association) ) were signed by academic and corporate customers around the world. EAL customers enjoyed improved customer service due to a number of system enhancements implemented during the quarter. 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 42% over prior year. The growing value of Wiley's journals to the scientific community was evident in the results of the recently announced 2004 ISI ISI International Sensitivity Index, see there Impact Factor Analysis, an independent ranking that measures how often a journal's articles are cited by other researchers. Wiley journals exhibiting significant increases included the Journal of Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Materials Research, Catheterization catheterization Threading of a flexible tube (catheter) through a channel in the body to inject drugs or a contrast medium, measure and record flow and pressures, inspect structures, take samples, diagnose disorders, or clear blockages. and Cardiovascular Intervention, Neurology neurology (n  rŏl`əjē, ny–), study of the morphology, physiology, and pathology of the human nervous system. and Urodynamics urodynamics /uro·dy·nam·ics/ (-di-nam´iks) the dynamics of the propulsion and flow of urine in the urinary tract.urodynam´ic urodynamics the dynamics of the propulsion and flow of urine in the urinary tract. , Head and Neck, and American Journal of Physical Anthropology physical anthropology Branch of anthropology concerned with the study of human evolution and human biological variation. Research on human evolution involves the discovery, analysis, and description of fossilized human remains. . In July, Wiley was among a group of major publishers and health organizations to launch patientINFORM (www.patientinform.org), a free online information resource that allows patients direct access to the latest medical research on some of the most serious diseases and medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. . The service provides consumers with access to the latest research articles published in medical and scientific journals, assistance in interpreting the articles, and access to additional materials on the web sites of participating voluntary health organizations. The STM book program performed very well during the first quarter. Product output was excellent; manuscript transmittals have been strong; 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. Global STM book revenue grew approximately 9%. 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. Revenue of Wiley's U.S. Higher Education business was essentially flat with that of the previous year's first quarter, but direct contribution to profit increased 6%. Growth in mathematics, science, and accounting was offset by sluggish sales in the social sciences and engineering. Higher Education revenue in August has improved over the prior year. An encouraging development has been the strong sales of WileyPLUS (formerly eGrade Plus). Available for eighty five key titles, WileyPLUS delivers to students and instructors an integrated suite of resources (including an online version of the textbook textbook Informatics A treatise on a particular subject. See Bible. ), that is organized in one easy-to-use website around teaching and learning activities. WileyPLUS allows instructors to customize course content, create class presentations, assign homework and quizzes for automatic grading, and track student progress. Sales of WileyPLUS were significantly higher than last year's first quarter, however this revenue is deferred and the majority will be recognized over the course of the fall and spring semesters, i.e., the second, third and fourth quarters of Wiley's fiscal year. Wiley Higher Education offers students value by providing a wide variety of product formats at different price points. Soon after the close of the quarter, Wiley announced an agreement with VitalSource Technologies, Inc. to support Wiley Desktop Editions, which will provide downloadable e-text versions of leading Higher Education textbooks directly from Wiley. These digital editions are intended for students who want lower-priced versions of textbooks. The Company also signed an agreement with Qwizdom to distribute radio frequency clickers to universities that adopt Wiley learning materials. The clicker click·er n. One that clicks, as: a. A remote control, as for a television or VCR. b. A computer mouse. c. A mechanical counter. system facilitates two-way communication Two-way communication is a form of transmission in which both parties involved transmit information. Common forms of two-way communication are:
Europe Wiley Europe's first quarter revenue was up 6% over prior year, while direct contribution to profit was essentially flat with last year. STM journals and reference books drove the top-line results. In addition, revenue from the Company's initial sales of German publications under the For Dummies brand contributed to the growth. Wiley Europe renewed its contract with the Quaternary quaternary /qua·ter·nary/ (kwah´ter-nar?e) 1. fourth in order. 2. containing four elements or groups. qua·ter·nar·y adj. 1. Consisting of four; in fours. Research Association to publish The Journal of Quaternary Research. A new controlled circulation magazine, Spectroscopy spectroscopy Branch of analysis devoted to identifying elements and compounds and elucidating atomic and molecular structure by measuring the radiant energy absorbed or emitted by a substance at characteristic wavelengths of the electromagnetic spectrum (including gamma ray, Asia, was successfully launched in May. During the quarter, the Company published the Dictionary of Microscopy microscopy /mi·cros·co·py/ (mi-kros´kah-pe) examination under or observation by means of the microscope. mi·cros·co·py n. 1. The study of microscopes. 2. . The dictionary is a brand extension of the Microscopy & Analysis controlled-circulation magazine, which was acquired last year. Wiley Europe's For Dummies program continued to gain momentum. The release of Su Doku For Dummies is taking advantage of the numbers puzzle craze. More than forty translated and three indigenous fur Dummies titles are on the market in Germany and selling briskly brisk adj. brisk·er, brisk·est 1. Marked by speed, liveliness, and vigor; energetic: had a brisk walk in the park. 2. . Wiley-VCH is also capitalizing on the centenary of Albert Einstein's theory of relativity theory of relativity Einstein’s contribution to the space-time relationship. [Science: NCE, 843–844] See : Turning Point by publishing Renn/Einstein Essays (in German and English), as well as Renn/Einstein Katalog. Asia, Australia, and Canada First quarter revenue and direct contribution to profit in Asia, Australia, and Canada increased 3% and 2%, respectively, including the favorable effect of foreign currency. Sluggish performance in Canada was partially offset by growth in Asia. P/T books performed particularly well in India, China, Thailand, and the Philippines. Wiley Asia's P/T list picked up interest globally. For example, the revised edition of Richard Duncan's The Dollar Crisis (originated in Asia) is being adopted as a textbook for finance courses and is being used as the basis for a seminar by Rich Dad, Poor Dad author Robert Kiyosaki. In Australia, Higher Education and School revenue was strong while P/T lagged behind due to a subdued sub·due tr.v. sub·dued, sub·du·ing, sub·dues 1. To conquer and subjugate; vanquish. See Synonyms at defeat. 2. To quiet or bring under control by physical force or persuasion; make tractable. 3. retail environment. Wiley Australia expects to benefit from a strong pipeline of P/T publications for the holiday season. Wiley Australia was named Secondary Publisher of the Year at the Australian Awards for Excellence in Educational Publishing for the sixth consecutive year. 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, Thursday, September 8, 2005, 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 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) 474-8920 International callers may participate by dialing: (719) 457-2727 A replay of the call will be available from 1:30 p.m. (EDT) on Thursday, September 8 through midnight (EDT) on Wednesday, September 14, by dialing (719) 457-0820 or (888) 203-1112 and entering Passcode: 5529469 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, 2005 AND 2004
(in thousands, except per share amounts)
First Quarter
ADJUSTED Ended July 31,
-------- ---------------------------
2005 2004 % Change
-------- -------- ---------
Revenues $236,749 226,939 4%
Costs and Expenses
Cost of Sales 76,821 75,229 2%
Operating and Administrative Expenses 124,706 118,434 5%
Amortization of Intangibles 3,066 2,499 23%
-------- --------
Total Costs and Expenses 204,593 196,162 4%
-------- --------
Operating Income 32,156 30,777 4%
Operating Margin 13.6% 13.6%
Interest Expense and Other, Net 1,508 1,187
-------- --------
Income Before Taxes 30,648 29,590 4%
Adjusted Provision for Income Taxes 10,267 9,706
-------- --------
Adjusted Net Income $ 20,381 19,884 2%
======== ========
Adjusted Income Per Share
Diluted $ 0.34 0.32 6%
Basic $ 0.35 0.32
Reconciliation of Non-GAAP Adjusted Financial Disclosure
--------------------------------------------------------
Adjusted Net Income $ 20,381 19,884
Tax Benefit (A) 7,476 -
-------- --------
Net Income - as Reported $ 27,857 19,884 40%
======== ========
Adjusted Income Per Share - Diluted $ 0.34 0.32
Tax Benefit (A) 0.12 -
Income Per Share - Diluted as Reported $ 0.46 0.32 44%
======== ========
Average Shares
Diluted 60,642 62,851
Basic 58,916 61,442
(A) The adjusted amounts above exclude $7.5 million, or $.012 per
diluted share, of tax benefits associated with the reversal of
a 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 that
fully offset the tax accrued by the Company on foreign
dividends in the fourth quarter of fiscal year 2005. The
current tax benefit and the corresponding fourth quarter tax
accrual had no cash impact on the Company.
The Company's management evaluates operating 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 FIRST QUARTER
ENDED JULY 31, 2005 AND 2004
(in thousands, except per share amounts)
First Quarter
Ended July 31,
---------------------------
2005 2004 % Change
-------- -------- ---------
Revenues
--------
US Segment
Professional/Trade $ 78,516 75,908 3%
Scientific, Technical and Medical 48,753 46,206 6%
Higher Education 45,542 45,475 0%
-------- --------
Total US 172,811 167,589 3%
European Segment 63,126 59,523 6%
Asia, Australia & Canada Segment 24,156 23,466 3%
Intersegment Sales Eliminations (23,344) (23,639) -1%
-------- --------
Total Revenues $236,749 226,939 4%
======== ========
Direct Contribution to Profit
-----------------------------
US Segment
Professional/Trade $ 18,842 15,551 21%
Scientific, Technical and Medical 24,545 22,269 10%
Higher Education 17,019 16,051 6%
-------- --------
Total US 60,406 53,871 12%
European Segment 18,627 18,694 0%
Asia, Australia & Canada Segment 3,251 3,191 2%
-------- --------
Total Direct Contribution to Profit 82,284 75,756 9%
Shared Services and Administrative Costs
----------------------------------------
Distribution (11,848) (11,739) 1%
Information Technology & Development (15,052) (12,269) 23%
Finance (7,860) (7,212) 9%
Other Administration (15,368) (13,759) 12%
-------- --------
Total Shared Services and Admin. Costs (50,128) (44,979) 11%
Operating Income $ 32,156 30,777 4%
======== ========
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
July 31,
----------------- April 30,
2005 2004 2005
-------- -------- ----------
Current Assets
Cash & cash equivalents $ 13,075 40,424 89,401
Marketable securities - - 10,000
Accounts receivable 155,721 146,168 137,787
Inventories 83,329 81,452 83,372
Deferred income tax benefit 5,921 12,394 5,921
Other current assets 12,398 11,973 12,437
-------- -------- ----------
Total Current Assets 270,444 292,411 338,918
Product Development Assets 59,555 58,022 61,511
Property, Equipment and Technology 108,239 115,835 115,383
Intangible Assets 300,903 280,644 291,041
Goodwill 193,146 195,400 195,563
Deferred Income Tax Benefit 4,208 8,437 4,285
Other Assets 26,564 22,808 25,868
-------- -------- ----------
Total Assets 963,059 973,557 1,032,569
======== ======== ==========
Current Liabilities
Accounts and royalties payable 78,391 76,325 70,958
Deferred subscription revenues 97,443 90,028 142,766
Accrued income taxes 33,399 29,754 36,376
Other accrued liabilities 60,627 64,008 91,211
-------- -------- ----------
Total Current Liabilities 269,860 260,115 341,311
Long-Term Debt 192,473 200,000 196,214
Accrued Pension Liability 63,828 50,254 62,116
Other Long-Term Liabilities 34,191 31,258 34,652
Deferred Income Taxes 2,700 2,597 1,702
Shareholders' Equity 400,007 429,333 396,574
-------- -------- ----------
Total Liabilities & Shareholders'
Equity $963,059 973,557 1,032,569
======== ======== ==========
CONDENSED STATEMENTS OF CASH FLOWS
First Quarter
Ended July 31,
-----------------
2005 2004
-------- --------
Operating Activities
Net income $ 27,857 19,884
Amortization of intangibles 3,065 2,499
Amortization of composition costs 8,476 8,349
Depreciation of property, equipment and
technology 8,198 7,487
Other non-cash items 16,724 12,263
Tax benefit on foreign dividend
repatriation (7,476) -
Change in deferred subscription
revenues (45,184) (37,528)
Net change in operating assets and
liabilities (40,622) (19,279)
-------- --------
Cash Used for Operating Activities (28,962) (6,325)
Investing Activities
Additions to product development assets (12,878) (11,709)
Additions to property, equipment and
technology (4,734) (5,066)
Acquisitions (15,359) (5,709)
Sale of marketable securities 10,000 -
-------- --------
Cash Used for Investing Activities (22,971) (22,484)
Financing Activities
Borrowings of long-term debt 50,000 -
Repayment of long-term debt (50,000)
Purchase of treasury shares (21,314) (9,784)
Cash dividends (5,334) (4,505)
Proceeds from issuance of stock on
option exercises & other 2,659 1,350
-------- --------
Cash Used for Financing Activities (23,989) (12,939)
Effects of Exchange Rate Changes on Cash (404) 145
-------- --------
Decrease in Cash and Cash Equivalents for
Period $(76,326) (41,603)
======== ========
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