8-K 1 fy14q2-8k.htm FY14 Q2 8K fy14q2-8k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 8-K

CURRENT REPORT


Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934


December 10, 2013
(Date of Report)
(Date of earliest event reported)

JOHN WILEY & SONS, INC.
(Exact name of registrant as specified in its charter)

New York
(State or jurisdiction of incorporation)

 
0-11507
13-5593032
 
----------------------------------------------------
---------------------------------------------
 
Commission File Number
IRS Employer Identification Number
 
111 River Street, Hoboken NJ
07030
 
----------------------------------------------------
---------------------------------------------
 
Address of principal executive offices
Zip Code
 
Registrant’s telephone number, including area code:
(201) 748-6000
   
---------------------------------------------


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
  [ ] Written communications pursuant to Rule 425 under the Securities Act(17 CFR 230.425)
  [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17 CFR 240.14a-12)
  [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
       (17 CFR 240.14d-2(b))
  [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
      (17 CFR   240.13e-4(c))



 
 
 

ITEM 7.01:  
REGULATION FD DISCLOSURE

The information in this report is being furnished (i) pursuant to Regulation FD, and (ii) pursuant to item 12 Results of Operation and Financial Condition (in accordance with SEC interim guidance issued March 28, 2003).  In accordance with General Instructions B.2 and B.6 of Form 8-K, the information in this report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended. The furnishing of the information set forth in this report is not intended to, and does not, constitute a determination or admission as to the materiality or completeness of such information.

On December 10, 2013, John Wiley & Sons Inc., a New York corporation (the “Company”), issued a press release announcing the Company’s financial results for the second quarter of fiscal year 2014. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and incorporated.  Exhibit 99.10 is a copy of the slides furnished at the second quarter fiscal year 2014 earnings presentation.

Exhibit No.  
Description

99.1           Press release dated December 10, 2013 titled “John Wiley & Sons, Inc. Reports Second Quarter 2014 Results” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended).
 
99.10         Press release slideshow presentation (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended).

 
 
 

 
Investor Contact:                                                                       Media Contact:
Brian Campbell, Investor Relations                                         Linda Dunbar, Media Relations
201.748.6874                                                                            201.748.6390
brian.campbell@wiley.com                                                       ldunbar@wiley.com


John Wiley & Sons, Inc. Reports Second Quarter 2014 Results

·  
Adjusted revenue of $449 million, up 8% over prior year on a constant currency basis
·  
Adjusted revenue change by segment on a constant currency basis and excluding the divested consumer publishing programs:  Research +2%, Professional Development +7%, and Education +30%
·  
Journal subscription revenue of  $164 million, up 2% over prior year and 3% year-to-date on a constant currency basis
·  
Adjusted EPS of $0.84, up 11% over prior year on a constant currency basis
·  
Full year financial outlook reaffirmed
 
December 10, 2013 (Hoboken, NJ) – John Wiley & Sons, Inc. (NYSE: JWa and JWb), a global provider of knowledge and knowledge-enabled services that improve outcomes in research, professional practice, and education, today announced the following results for the second quarter of fiscal year 2014, ending October 31, 2013:
 
 
                                                           % change
$ millions
  FY14
 FY13
  
Excluding FX
Including FX
 
ADJUSTED
          
Revenue
    Q2
    Six Months
 
 
$449
$860
 
$418
$816
  
 
8%
6%
 
8%
5%
EPS
    Q2
    Six Months
 
 
$0.84
$1.35
 
$0.75
$1.28
  
 
11%
6%
 
12%
5%
US GAAP
          
Revenue
    Q2
    Six Months
 
 
$449
$860
 
$432
$842
  
 
5%
3%
 
4%
2%
EPS
    Q2
    Six Months
 
 
$0.61
$1.22
 
$0.71
$1.31
  
 
(15%)
(6%)
 
(14%)
(7%)
Please see the attached financial schedules for more detail


 
 
 
 
Business Summary
“We are pleased with our performance this quarter, particularly the solid revenue contribution coming from Education and Professional Development solutions, including online program management (Deltak), WileyPLUS, and online training and assessment,” said Steve Smith, President and CEO of Wiley.   “In Research, journal subscriptions showed healthy revenue growth, consistent with our expectations, and open access revenue more than doubled vs. the prior year period to $4 million.”

Mr Smith concluded:  “Our momentum through mid-year is fully aligned with our expectations, and we are reiterating our full year guidance for low-single-digit adjusted revenue growth and adjusted EPS of $2.85 to $2.95.”

Second Quarter Highlights
·  
Adjusted revenue on a constant currency basis grew 8% to $449 million, excluding the prior year operating results of the divested consumer publishing programs ($14.1 million of revenue in Q2 FY13). Revenue was up 4% on a US GAAP basis.
·  
Organic revenue, which excludes the prior year operating results of the divested consumer programs and current year results of Deltak and Efficient Learning Systems (ELS), rose 4% for the quarter and 2% for the first six months.  Wiley acquired Deltak and ELS in October and November of 2013, respectively.
·  
Digital book revenue across the three segments increased 40% to $31.4 million.
·  
Adjusted earnings per share (EPS) grew 11% to $0.84.  Adjusted EPS for the current and prior year second quarter excludes: (1) second quarter 2014 restructuring charges of $15.3 million ($0.17/share); (2) second quarter 2014 and 2013 asset impairment charges of $4.8 million ($0.06/share - related to  a terminated software development program) and $15.5 million ($0.16/share – related to divested consumer publishing programs), respectively; (3) the prior year operating results of the divested consumer publishing program of $1.5 million ($0.02/share); and (4) a second quarter FY13 gain on the sale of the travel publishing program of $9.8 million ($0.10/share).  Adjusted revenue growth, restructuring and other savings, and lower taxes offset higher operating and administrative costs, including a 25% increase in technology expense to support transformation initiatives, and higher incentive compensation accruals.  Full year technology spend is expected to be approximately 10% higher than in fiscal year 2013. US GAAP EPS for the quarter was $0.61 per share, down 14%.
·  
Free Cash Flow improved to a use of $112 million for the first six months of the fiscal year compared to a use of $143 million in the prior year period mainly due to lower disputed income tax deposits paid to the German government.  A tax deposit of $29.7 million for disputed taxes in Germany through fiscal year 2007 was paid in the fiscal year 2013 six month period, whereas $10.4 million for disputed taxes in Germany for 2011 was paid in the current period. Through October 31, 2013, the Company has paid tax deposits covering all years through fiscal year 2011. Note that free cash flow is typically negative for Wiley in the first half of a fiscal year due to the timing of journal subscription cash collections.
·  
Restructuring Update:  Wiley recorded restructuring charges of $15.3 million this quarter related to its previously announced restructuring program.  These charges included $10 million of accrued redundancy costs, $3 million of process reengineering consulting costs, and $2 million of other costs including contract termination costs.   Including this charge, Wiley has recorded $47.5 million in restructuring charges since the program began in January 2013. Wiley expects to record additional restructuring charges for the remainder of the fiscal year of approximately $10 million.  As of October 31, 2013, Wiley had developed and approved  plans  to achieve $70 million of its $80 million FY15 run-rate savings goal, with more than half of the $80 million expected to improve earnings in FY15 and the remainder reinvested into the business.
 
 
 
 
 
·  
Impairment Charge:  Wiley terminated a multi-year software development program for an internal operations application due to a change in its longer-term enterprise systems plans.  The Company recorded a $4.8 million impairment related to the termination of this program.
·  
Share Repurchases: Wiley repurchased 85,098 shares this quarter at a cost of $3.9 million, or $46.31/share. As of October 31, 2013, 4,074,454 shares remain in the program, including shares from a nearly completed program authorized in September 2010.

Adjusted Results
The Company provides financial measures referred to as “adjusted” revenue, contribution to profit,  and EPS, which exclude restructuring charges, operating results from divestitures, impairment charges, gain on the sale of publishing programs, and the deferred tax benefits from the changes in UK income tax rates. Variances to adjusted revenue, contribution to profit, and EPS exclude FX impacts unless otherwise noted. Management believes the exclusion of such items provides additional information to facilitate the analysis of results.  These non-GAAP measures are not intended to replace the financial results reported in accordance with GAAP.

Foreign Exchange (“FX”)
Throughout this report, references are made to variances “excluding foreign exchange” or “on a constant currency basis”; such amounts exclude both currency translation effects and transactional gains and losses.  

RESEARCH
·  
Revenue: Second quarter revenue on a constant currency basis rose 2% to $252.9 million due to journal subscription growth (+2%), digital book sales (+45%) and open access fees, which contributed $2.1 million of incremental revenue over the prior year period.  Partially offsetting this growth was a 10% decline in print book revenue.  For the first six months, revenue on a constant currency basis grew 4%, with journal subscription revenue up 3%.
·  
Adjusted Contribution to Profit: Second quarter adjusted contribution to profit (after allocated shared services and administrative costs) grew 1% on a constant currency basis to $73.7 million due to revenue growth and restructuring and other savings, partially offset by higher society royalty costs.  Adjusted contribution to profit for the second quarter of fiscal year 2014 excludes second quarter restructuring charges of $3.4 million, related to the aforementioned restructuring program.  For the first six months, adjusted contribution to profit (after shared services and administrative costs) grew 6% to $141.8 million, excluding the impact of foreign exchange.
·  
Society Business:  Two new society journals were signed in the quarter with combined annual revenue of $7.8 million; 13 were renewed worth approximately $10.5 million in annual revenue; and none were lost.
·  
Other Key Developments:  In August, Wiley announced a licensing agreement with Information Handling Services (NYSE: IHS), a global informatics company.  Under the agreement, IHS added Wiley digital books, databases and major reference works to IHS’s collection of technical documents spanning engineering standards and related industry and technical knowledge.

PROFESSIONAL DEVELOPMENT
·  
Adjusted Revenue:  Second quarter adjusted revenue grew 7% to $92.5 million, excluding FX and revenue from the divested consumer publishing programs in the prior year period.  Adjusted revenue growth was driven by digital books (+30%) and online training and assessment (+44%).  For the first six months, adjusted revenue on a constant currency basis was essentially flat.  Excluding the results of the ELS online training and assessment acquisition in the current year, and the prior year divested consumer publishing programs, year-to-date revenue declined 2% as compared to the prior year period.  The effect of Hurricane Sandy delayed approximately $2 million of print sales into the third quarter of the prior year.  
 
 
 
 
 
·  
Adjusted Contribution to Profit:  Second quarter adjusted contribution to profit (after allocated shared service and administrative costs) grew from $3.3 million to $9.2 million due to revenue growth and restructuring and other savings.  Adjusted contribution to profit excludes restructuring charges of $2.1 million in the current period; the operating results from the divested consumer assets in the prior year period of $1.5 million; and a prior year net charge of $5.7 million reflecting an impairment of divested consumer assets, net of a gain on sale.  For the first six months, adjusted contribution to profit (after shared services and administrative costs) grew $5.1 million to $10.9 million, excluding the impact of foreign exchange.
·  
Online training and assessment showed strong growth, driven by Inscape (+22%) and continued strength in CPA, CMA, and CFA test prep businesses.
 
 
EDUCATION
·  
Revenue:  Second quarter revenue on a constant currency basis grew 30% to $103.7 million, driven by the contribution from Deltak (+$16.5 million) and growth in digital books (+55%), binder and custom products (+40%), and the WileyPLUS course management solution (+26%).  For the first six months, Education revenue overall increased 22% (to $184.8 million) on a constant currency basis primarily due to the contribution of Deltak (+$31.3 million).  Contributing to second quarter growth was the favorable impact of later ordering in the current year due to late semester starts in the US and the shift to digital formats, which pushed revenue into the second quarter.  Second quarter and year-to-date revenue comparisons include the favorable impact of $2 million of sales delayed into the third quarter of the prior year due to Hurricane Sandy, in addition to earlier-than-usual orders in the Australia schools business in the current year.
·  
Adjusted Contribution to Profit:  Second quarter adjusted contribution to profit (after allocated shared service and administrative costs) grew 43% to $22.8 million, reflecting revenue growth, gross margin improvement related to the continued migration to digital products and services, and restructuring and other savings.  For the first six months, adjusted contribution to profit (after shared services and administrative costs) increased 17% to $28.9 million, excluding the impact of foreign exchange.
·  
Online Program Management (OPM):  Deltak contributed $16.5 million of revenue in the quarter.  The Company signed the University of Texas (McCombs School of Business) during the quarter, bringing the total number of institutions under contract to 34.  As of October 31, 2013, Deltak had 107 programs generating revenue and 43 programs under contract and in development but not yet generating revenue.
·  
International Deltak OPM Opportunity:  Deltak and Purdue University have partnered in the launch of Purdue NExT, online course offerings available globally that focus on upper-level engineering, science, and technology disciplines.  The courses are marketed to three distinct markets: individuals looking to enhancing their skills and job prospects; institutions looking to augment their scientific and engineering curriculum content; and businesses looking to raise employee skill levels in key engineering disciplines.  
 
(Please see the attached tables for more information, including Quarter and Year-to-Date Segment Revenue Statistics by Product/Service and Subject Category)

Earnings Conference Call
·  
Scheduled for today, December 10, at 10:00 a.m. (EST)
·  
Access the webcast at www.wiley.com> Investor Relations> Events and Presentations, or http://www.wiley.com/WileyCDA/Section/id-370238.html
·  
U.S. callers, please dial (888) 329-8877 and enter the participant code 1353328#
·  
International callers, please dial (719) 457-2689 and enter the participant code 1353328#
·  
An archive of the webcast will be available for a period of up to 14 days
 
 
 
 
 
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains certain forward-looking statements 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 (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities and (x) 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.

About Wiley
Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice and education.  Through the Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising. The Professional Development segment provides digital and print books, online assessment and training services, and test prep and certification.   In Education, Wiley provides education solutions including online program management services for higher education institutions and course management tools for instructors and students, as well as print and digital content.


 
 
 

JOHN WILEY & SONS, INC.
UNAUDITED SUMMARY OF OPERATIONS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2013 AND 2012
(in thousands, except per share amounts)
 
SECOND QUARTER ENDED OCTOBER 31,
 
       
2013
  
2012
  
% Change
         US GAAP    Adjustments (A,B)    Adjusted    US GAAP    Adjustments (B-D)   Adjusted     US GAAP  
 Adjusted
excl.  FX
                                     
Revenue
$
     449,153
  
                 -
  
     449,153
  
     431,755
  
        (14,102)
  
    417,653
  
4%
  
8%
                                     
Costs and Expenses
                                
 
Cost of Sales
  
     130,352
  
                 -
  
     130,352
  
     129,554
  
          (8,206)
  
    121,348
  
1%
  
8%
 
Operating and Administrative
  
     237,526
  
                 -
  
     237,526
  
     223,990
  
          (4,396)
  
    219,594
  
6%
  
9%
 
Restructuring Charges (A)
  
      15,316
  
          (15,316)
  
              -
  
             -
  
                -
  
             -
        
 
Impairment Charges (B)
  
        4,786
  
           (4,786)
  
              -
  
      15,521
  
        (15,521)
  
             -
        
 
Amortization of Intangibles
  
      10,986
  
                 -
  
       10,986
  
        9,578
  
               (13)
  
        9,565
  
15%
  
16%
                                     
 
Total Costs and Expenses
  
     398,966
  
          (20,102)
  
     378,864
  
     378,643
  
        (28,136)
  
    350,507
  
5%
  
9%
                                     
Gain on Sale of Travel Publishing Program (C)
             -
  
                 -
  
              -
  
        9,829
  
          (9,829)
  
             -
        
                                     
Operating Income
  
      50,187
  
           20,102
  
       70,289
  
      62,941
  
           4,205
  
      67,146
  
-20%
  
5%
 
Operating Margin
  
11.2%
      
15.6%
  
14.6%
      
16.1%
        
                                     
Interest Expense
  
       (3,392)
  
                 -
  
        (3,392)
  
       (2,903)
  
                -
  
       (2,903)
  
17%
  
17%
Foreign Exchange (Loss) Gain
  
          (581)
  
                 -
  
           (581)
  
       (1,472)
  
                -
  
       (1,472)
  
-61%
  
1%
Interest Income and Other
  
           491
  
                 -
  
            491
  
           696
  
                -
  
          696
  
-29%
  
-29%
                                     
Income Before Taxes
  
      46,705
  
           20,102
  
       66,807
  
      59,262
  
           4,205
  
      63,467
  
-21%
  
5%
                                     
Provision (Benefit) for Income Taxes (A-D)
      10,508
  
            6,361
  
       16,869
  
      16,205
  
           1,741
  
      17,946
  
-35%
  
-7%
                                     
Net Income
$
      36,197
  
           13,741
  
       49,938
  
      43,057
  
           2,464
  
      45,521
  
-16%
  
9%
                                     
                                     
Earnings Per Share- Diluted
$
          0.61
  
              0.23
  
           0.84
  
          0.71
  
             0.04
  
         0.75
  
-14%
  
11%
                                     
Average Shares - Diluted
  
      59,416
  
           59,416
  
       59,416
  
      60,633
  
         60,633
  
      60,633
        
                                     
                                     
SIX MONTHS ENDED OCTOBER 31,
                                     
       
2013
  
2012
  
% Change
         US GAAP    Adjustments (A,B,E)    Adjusted    US GAAP    Adjustments (A-E)    Adjusted    US GAAP  
 Adjusted
excl. FX
                                     
Revenue
$
     860,173
  
                 -
  
     860,173
  
     842,489
  
        (26,501)
  
    815,988
  
2%
  
6%
                                     
Costs and Expenses
                                
 
Cost of Sales
  
     250,143
  
                 -
  
     250,143
  
     256,798
  
        (16,362)
  
    240,436
  
-3%
  
5%
 
Operating and Administrative
  
     474,521
  
                 -
  
     474,521
  
     453,976
  
          (9,440)
  
    444,536
  
5%
  
8%
 
Restructuring Charges (A)
  
      23,071
  
          (23,071)
  
              -
  
        4,841
  
          (4,841)
  
             -
        
 
Impairment Charges (B)
  
        4,786
  
           (4,786)
      
      15,521
  
        (15,521)
  
             -
        
 
Amortization of Intangibles
  
      21,901
  
                 -
  
       21,901
  
      19,246
  
               (53)
  
      19,193
  
14%
  
15%
                                     
 
Total Costs and Expenses
  
     774,422
  
          (27,857)
  
     746,565
  
     750,382
  
        (46,217)
  
    704,165
  
3%
  
7%
                                     
Gain on Sale of Travel Publishing Program (C)
             -
  
                 -
  
              -
  
        9,829
  
          (9,829)
  
             -
        
                                     
Operating Income
  
      85,751
  
           27,857
  
     113,608
  
     101,936
  
           9,887
  
    111,823
  
-16%
  
3%
 
Operating Margin
  
10.0%
      
13.2%
  
12.1%
      
13.7%
        
                                     
Interest Expense
  
       (6,863)
  
                 -
  
        (6,863)
  
       (5,730)
  
                -
  
       (5,730)
  
20%
  
20%
Foreign Exchange (Loss) Gain
  
           300
  
                 -
  
            300
  
          (452)
  
                -
  
         (452)
  
-166%
  
11%
Interest Income and Other
  
        1,629
  
                 -
  
         1,629
  
        1,227
  
                -
  
        1,227
  
33%
  
33%
                                     
Income Before Taxes
  
      80,817
  
           27,857
  
     108,674
  
      96,981
  
           9,887
  
    106,868
  
-17%
  
2%
                                     
Provision (Benefit) for Income Taxes (A-E)
        8,687
  
           19,779
  
       28,466
  
      17,807
  
         11,843
  
      29,650
  
-51%
  
-3%
                                     
Net Income
$
      72,130
  
            8,078
  
       80,208
  
      79,174
  
          (1,956)
  
      77,218
  
-9%
  
5%
                                     
                                     
Earnings Per Share- Diluted
$
          1.22
  
              0.14
  
           1.35
  
          1.31
  
            (0.03)
  
         1.28
  
-7%
  
6%
                                     
Average Shares - Diluted
  
      59,294
  
           59,294
  
       59,294
  
      60,493
  
         60,493
  
      60,493
        
                                     
                                     
                                     
     See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.

 
 
 
 
 
JOHN WILEY & SONS, INC.
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2013 AND 2012
 
RECONCILIATION OF US GAAP EPS TO ADJUSTED EPS - DILUTED (UNAUDITED)
 
 
   
 Second Quarter Ended
  
 Six Months Ended
   
 October 31,
  
 October 31,
       2013      2012      2013      2012
                         
 US GAAP Earnings Per Share - Diluted
 $
            0.61
  
 $
        0.71
  
 $
        1.22
  
 $
         1.31
 Adjusted to exclude the following:
                      
 
 Restructuring Charges (A)
  
          (0.17)
    
            -
    
      (0.26)
    
        (0.06)
 
 Impairment Charges (B)
  
          (0.06)
    
      (0.16)
    
      (0.06)
    
        (0.16)
 
 Gain on Sale of Travel Publishing Program (C)
                -
    
        0.10
    
            -
    
         0.10
 
 Operational Results of Divested Consumer Programs (D)
                -
    
        0.02
    
            -
    
         0.01
 
 Deferred Income Tax Benefit on UK Rate Change (E)
                -
    
         -
    
        0.18
    
      0.14
                         
 Adjusted Earnings Per Share - Diluted
 $
            0.84
  
 $
        0.75
  
 $
        1.35
  
 $
         1.28
                         
                         
                         
NOTES TO UNAUDITED FINANCIAL STATEMENTS
                         
                         
Adjustments:
                      
 (A)
Restructuring Charges:  The adjusted results for the three and six months ended October 31, 2013 and the six months ended October 31, 2012 exclude restructuring charges  of $15.3 million ($10.4 million after tax, $0.17 per share), $23.1 million ($15.3 million after tax, $0.26 per share) and $4.8 million ($3.5 million after tax, $0.06 per share), respectively.
 
 (B)
Impairment Charges: The adjusted results for the three and six months ended October 31, 2013 exclude asset impairment charges related to certain technology investments of $4.8 million ($3.4 million after tax, $0.06 per share).  The adjusted results for the three and six months ended October 31, 2012 exclude asset impairment charges related to the divested Professional Development consumer publishing programs of $15.5 million ($9.6 million after tax, $0.16 per share).
 
 (C)
Gain on Sale of Travel Publishing Program: The adjusted results for the three and six months ended October 31, 2012 exclude a gain on sale of the travel publishing program of $9.8 million ($6.2 million after tax, $0.10 per share).
 
 (D)
Operating Results of Divested Consumer Programs: The adjusted results for the three and six months ended October 31, 2012 exclude the operating results of the divested Professional Development consumer publishing programs sold in fiscal year 2013.
 
 (E)
Deferred Income Tax Benefit on UK Rate Change: The adjusted results for the six months ended October 31, 2013 and 2012 exclude deferred tax benefits of $10.6 million ($0.18 per share) and $8.4 million ($0.14 per share), respectively. The tax benefits are associated with tax legislation enacted in the United Kingdom that reduced the U.K. corporate income tax rates by 3% and 2%, respectively.  The benefits reflect the remeasurement of the Company's deferred tax balances to the new income tax rates of 21% effective April 1, 2014 and 20% effective April 1, 2015 and had no current cash tax impact.
 
                         
                         
Non-GAAP Financial Measures:
                      
In addition to providing financial results in accordance with GAAP, the Company has provided adjusted financial results that exclude the impact of other nonrecurring items described in more detail throughout this press release.  These non-GAAP financial measures are labeled as "Adjusted" and are used for evaluating the results of operations for internal purposes.  These non-GAAP measures are not intended to replace the presentation of financial results in accordance with GAAP.  Rather, the Company believes the exclusion of such items provides additional information to investors to facilitate the comparison of past and present operations. Unless otherwise noted, adjusted amounts in the attached schedules include foreign exchange.
 

 
 
 
 

 
JOHN WILEY & SONS, INC.
UNAUDITED SEGMENT RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2013 AND 2012
(in thousands)
 
SECOND QUARTER ENDED OCTOBER 31,
 
       
2013
  
2012
  
% Change
    US GAAP   Adjustments (A,B)   Adjusted   US GAAP   Adjustments (B-D)   Adjusted   US GAAP  
Adjusted
excl. FX
Revenue
                                
Research
$
      252,947
  
                 -
  
      252,947
  
    249,831
  
                -
  
    249,831
  
1%
  
2%
Professional Development
  
       92,545
  
                 -
  
       92,545
  
    101,281
  
        (14,102)
  
      87,179
  
-9%
  
7%
Education
  
      103,661
  
                 -
  
      103,661
  
      80,643
  
                -
  
      80,643
  
29%
  
30%
                                     
 
Total
$
      449,153
  
                 -
  
      449,153
  
    431,755
  
        (14,102)
  
    417,653
  
4%
  
8%
                                     
Direct Contribution to Profit
                                
Research
$
      104,745
  
            3,401
  
      108,146
  
    108,992
  
                -
  
    108,992
  
-4%
  
0%
Professional Development
  
       26,905
  
            2,114
  
       29,019
  
      19,963
  
           4,205
  
      24,168
  
35%
  
21%
Education
  
       37,216
  
              210
  
       37,426
  
      28,871
  
                -
  
      28,871
  
29%
  
31%
                                     
 
Total
$
      168,866
  
            5,725
  
      174,591
  
    157,826
  
           4,205
  
    162,031
  
7%
  
9%
                                     
Contribution to Profit (After Allocated Shared Services and Admin. Costs)
                    
Research
$
       70,277
  
            3,401
  
       73,678
  
      73,636
  
                -
  
      73,636
  
-5%
  
1%
Professional Development
  
         7,061
  
            2,114
  
         9,175
  
         (905)
  
           4,205
  
       3,300
  
-
  
181%
Education
  
       22,608
  
              210
  
       22,818
  
      16,143
  
                -
  
      16,143
  
40%
  
43%
                                     
 
Total
$
       99,946
  
            5,725
  
      105,671
  
      88,874
  
           4,205
  
      93,079
  
12%
  
14%
                                     
Unallocated Shared Services and Admin. Costs
      (49,759)
  
          14,377
  
      (35,382)
  
     (25,933)
  
                -
  
     (25,933)
  
92%
  
38%
                                     
Operating Income
$
       50,187
  
          20,102
  
       70,289
  
      62,941
  
           4,205
  
      67,146
  
-20%
  
5%
                                     
                                     
                                     
Total Shared Services and Admin. Costs by Function
                    
 
Distribution
$
      (26,830)
  
            2,361
  
      (24,469)
  
     (25,785)
  
                -
  
     (25,785)
  
4%
  
-4%
 
Technology Services
  
      (56,113)
  
          10,960
  
      (45,153)
  
     (36,209)
  
                -
  
     (36,209)
  
55%
  
25%
 
Finance
  
      (11,001)
  
                 -
  
      (11,001)
  
     (10,601)
  
                -
  
     (10,601)
  
4%
  
5%
 
Other Administration
  
      (24,735)
  
            1,056
  
      (23,679)
  
     (22,290)
  
                -
  
     (22,290)
  
11%
  
7%
 
Total
$
     (118,679)
  
          14,377
  
     (104,302)
  
     (94,885)
  
                -
  
     (94,885)
  
25%
  
11%
                                     
                                     
                                     
SIX MONTHS ENDED OCTOBER 31,
                                     
       
2013
  
2012
  
% Change
    US GAAP   Adjustments (A,B)   Adjusted   US GAAP   Adjustments (A-D)   Adjusted   US GAAP  
Adjusted
excl. FX
Revenue
                                
Research
$
      498,735
  
                 -
  
      498,735
  
    485,777
  
                -
  
    485,777
  
3%
  
4%
Professional Development
  
      176,631
  
                 -
  
      176,631
  
    203,254
  
        (26,501)
  
    176,753
  
-13%
  
0%
Education
  
      184,807
  
                 -
  
      184,807
  
    153,458
  
                -
  
    153,458
  
20%
  
22%
                                     
 
Total
$
      860,173
  
                 -
  
      860,173
  
    842,489
  
        (26,501)
  
    815,988
  
2%
  
6%
                                     
Direct Contribution to Profit
                                
Research
$
      206,588
  
            5,372
  
      211,960
  
    200,255
  
           2,966
  
    203,221
  
3%
  
5%
Professional Development
  
       45,019
  
            5,667
  
       50,686
  
      41,169
  
           6,300
  
      47,469
  
9%
  
8%
Education
  
       58,182
  
              258
  
       58,440
  
      50,774
  
             169
  
      50,943
  
15%
  
16%
                                     
 
Total
$
      309,789
  
          11,297
  
      321,086
  
    292,198
  
           9,435
  
    301,633
  
6%
  
7%
                                     
Contribution to Profit (After Allocated Shared Services and Admin. Costs)
                    
Research
$
      136,431
  
            5,372
  
      141,803
  
    131,948
  
           2,966
  
    134,914
  
3%
  
6%
Professional Development
  
         5,184
  
            5,667
  
       10,851
  
         (581)
  
           6,300
  
       5,719
  
-
  
93%
Education
  
       28,642
  
              258
  
       28,900
  
      25,008
  
             169
  
      25,177
  
15%
  
17%
                                     
 
Total
$
      170,257
  
          11,297
  
      181,554
  
    156,375
  
           9,435
  
    165,810
  
9%
  
11%
                                     
Unallocated Shared Services and Admin. Costs
      (84,506)
  
          16,560
  
      (67,946)
  
     (54,439)
  
             452
  
     (53,987)
  
55%
  
27%
                                     
Operating Income
$
       85,751
  
          27,857
  
      113,608
  
    101,936
  
           9,887
  
    111,823
  
-16%
  
3%
                                     
                                     
                                     
Total Shared Services and Admin. Costs by Function
                    
 
Distribution
$
      (51,553)
  
            2,574
  
      (48,979)
  
     (51,678)
  
             193
  
     (51,485)
  
0%
  
-4%
 
Technology Services
  
     (100,970)
  
          10,960
  
      (90,010)
  
     (72,781)
  
             256
  
     (72,525)
  
39%
  
25%
 
Finance
  
      (21,332)
  
                 -
  
      (21,332)
  
     (20,990)
  
                -
  
     (20,990)
  
2%
  
3%
 
Other Administration
  
      (50,183)
  
            3,026
  
      (47,157)
  
     (44,813)
  
                 3
  
     (44,810)
  
12%
  
6%
 
Total
$
     (224,038)
  
          16,560
  
     (207,478)
  
   (190,262)
  
             452
  
   (189,810)
  
18%
  
10%
                                     
                                     
                                     
   
See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.

 
 
 

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2013 AND 2012
(in thousands)
 
       
Second Quarter Ended
  
Six Months Ended
       
October 31,
  
October 31,
        2013    2012   % Change   % Change excl. FX    2013    2012   % Change   % Change excl. FX
                                     
Research:
                                
 
Direct Contribution to Profit
$
  104,745
  
  108,992
  
-4%
  
-3%
  
 206,588
  
 200,255
  
3%
  
4%
 
Restructuring Charges (A)
  
      3,401
  
           -
          
     5,372
  
     2,966
        
 
Adjusted Direct Contribution to Profit
  
  108,146
  
  108,992
  
-1%
  
0%
  
 211,960
  
 203,221
  
4%
  
5%
                                     
 
Allocated Shared Services and Admin. Costs:
                                
   
Distribution
  
   (11,431)
  
   (11,759)
  
-3%
  
-2%
  
  (22,703)
  
  (23,318)
  
-3%
  
-2%
   
Technology
  
   (17,627)
  
   (17,546)
  
0%
  
1%
  
  (36,580)
  
  (33,219)
  
10%
  
10%
   
Occupancy and Other
  
     (5,410)
  
     (6,051)
  
-11%
  
-11%
  
  (10,874)
  
  (11,770)
  
-8%
  
-7%
 
Adjusted Contribution to Profit (after allocated Shared Services and Admin. Costs)
$
    73,678
  
    73,636
  
0%
  
1%
  
 141,803
  
 134,914
  
5%
  
6%
                                     
Professional Development:
                                
 
Direct Contribution to Profit
$
    26,905
  
    19,963
  
35%
  
36%
  
   45,019
  
   41,169
  
9%
  
10%
 
Restructuring Charges (A)
  
      2,114
  
           -
          
     5,667
  
     1,254
        
 
Impairment Charges (B)
  
           -
  
    15,521
          
          -
  
   15,521
        
 
Gain on Sale of Travel Publishing Program (C)
  
           -
  
     (9,829)
          
          -
  
    (9,829)
        
 
Direct Contribution to profit - Divested Consumer Publishing Programs (D)
           -
  
     (1,487)
          
          -
  
       (646)
        
 
Adjusted Direct Contribution to Profit
  
    29,019
  
    24,168
  
20%
  
21%
  
   50,686
  
   47,469
  
7%
  
8%
                                     
 
Allocated Shared Services and Admin. Costs:
                                
   
Distribution
  
     (9,098)
  
   (10,367)
  
-12%
  
-11%
  
  (18,541)
  
  (20,741)
  
-11%
  
-10%
   
Technology
  
     (7,894)
  
     (7,252)
  
9%
  
9%
  
  (15,717)
  
  (14,424)
  
9%
  
9%
   
Occupancy and Other
  
     (2,852)
  
     (3,249)
  
-12%
  
-12%
  
    (5,577)
  
    (6,585)
  
-15%
  
-15%
 
Adjusted Contribution to Profit (after allocated Shared Services and Admin. Costs)
$
      9,175
  
      3,300
  
178%
  
181%
  
   10,851
  
     5,719
  
90%
  
93%
                                     
Education:
                                
 
Direct Contribution to Profit
$
    37,216
  
    28,871
  
29%
  
31%
  
   58,182
  
   50,774
  
15%
  
16%
 
Restructuring Charges (A)
  
         210
  
           -
          
       258
  
        169
        
 
Adjusted Direct Contribution to Profit
  
    37,426
  
    28,871
  
30%
  
31%
  
   58,440
  
   50,943
  
15%
  
16%
                                     
 
Allocated Shared Services and Admin. Costs:
                                
   
Distribution
  
     (3,739)
  
     (3,779)
  
-1%
  
2%
  
    (7,743)
  
    (7,572)
  
2%
  
5%
   
Technology
  
     (8,639)
  
     (7,138)
  
21%
  
22%
  
  (17,373)
  
  (14,499)
  
20%
  
21%
   
Occupancy and Other
  
     (2,230)
  
     (1,811)
  
23%
  
29%
  
    (4,424)
  
    (3,695)
  
20%
  
20%
 
Adjusted Contribution to Profit (after allocated Shared Services and Admin. Costs)
$
    22,818
  
    16,143
  
41%
  
43%
  
   28,900
  
   25,177
  
15%
  
17%
                                     
Total Adjusted Contribution to Profit (after allocated Shared Services and Admin. Costs)
$
  105,671
  
    93,079
  
14%
  
14%
  
 181,554
  
 165,810
  
9%
  
11%
                                     
Unallocated Shared Services and Admin. Costs:
                                
 
Unallocated Shared Services and Admin. Costs
   (49,759)
  
   (25,933)
  
92%
  
93%
  
  (84,506)
  
  (54,439)
  
55%
  
57%
 
Restructuring Charges (A)
  
      9,591
  
           -
          
   11,774
  
        452
        
 
Impairment Charges (B)
  
      4,786
  
           -
          
     4,786
  
          -
        
 
Adjusted Unallocated Shared Services and Admin. Costs
$
   (35,382)
  
   (25,933)
  
36%
  
38%
  
  (67,946)
  
  (53,987)
  
26%
  
27%
                                     
Adjusted Operating Income
$
    70,289
  
    67,146
  
5%
  
5%
  
 113,608
  
 111,823
  
2%
  
3%
                                     
                                     
                                     
   
See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.
      

 
 
 

JOHN WILEY & SONS, INC.
SEGMENT REVENUE STATISTICS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2013 AND 2012
(in millions)
 
        Second Quarter             Six Months        
         Ended October 31,    % of    % Change      Ended October 31,    % of    % Change
RESEARCH    2013    2012    Revenue    excl. FX      2013    2012    Revenue    excl. FX
                                       
Revenue by Product/Service:
                                  
 
Journal Subscriptions
$
      164.1
  
      162.2
  
65%
  
2%
  
$
      324.3
  
      317.8
  
65%
  
3%
 
Print Books
  
        31.1
  
        34.7
  
12%
  
-10%
    
        58.5
  
        64.2
  
12%
  
-8%
 
Digital Books
  
          9.4
  
          6.4
  
4%
  
45%
    
        19.0
  
        14.0
  
4%
  
36%
 
Open Access
  
          3.9
  
          1.8
  
2%
  
117%
    
          7.2
  
          2.4
  
1%
  
200%
 
Other (includes Reprints, Backfiles, Rights, Advertising)
        44.4
  
        44.7
  
18%
  
0%
    
        89.7
  
        87.4
  
18%
  
4%
   
Total Revenue
$
      252.9
  
      249.8
  
100%
  
2%
  
$
      498.7
  
      485.8
  
100%
  
4%
                                       
Revenue by Subject Category:
                                  
 
Medicine
$
        72.1
  
        72.8
  
29%
  
1%
  
$
      144.7
  
      143.5
  
29%
  
3%
 
Physical Sciences & Engineering
  
        70.2
  
        70.3
  
28%
  
-2%
    
      137.8
  
      135.9
  
28%
  
0%
 
Life Sciences
  
        63.2
  
        58.1
  
25%
  
10%
    
      124.9
  
      113.5
  
25%
  
11%
 
Social Sciences & Humanities
  
        46.2
  
        47.5
  
18%
  
-1%
    
        89.3
  
        91.0
  
18%
  
0%
 
Other
  
          1.2
  
          1.1
  
0%
  
0%
    
          2.0
  
          1.9
  
0%
  
5%
   
Total Revenue
$
      252.9
  
      249.8
  
100%
  
2%
  
$
      498.7
  
      485.8
  
100%
  
4%
                                       
                                       
        Second Quarter             Six Months        
        Ended October 31,    % of    % Change     Ended October 31,    % of    % Change
PROFESSIONAL DEVELOPMENT    2013    2012    Revenue    (a)      2013    2012    Revenue   (a)
                                       
Revenue by Product/Service:
                                  
 
Print Books
$
        61.6
  
        62.1
  
67%
  
0%
  
$
      118.6
  
      127.6
  
67%
  
-7%
 
Digital Books
  
        12.6
  
          9.8
  
14%
  
30%
    
        22.9
  
        18.3
  
13%
  
26%
 
Online Training & Assessment
  
          9.8
  
          6.8
  
11%
  
44%
    
        17.9
  
        13.7
  
10%
  
31%
 
Other (includes Rights, Translations, Advertising)
          8.5
  
          8.5
  
9%
  
1%
    
        17.2
  
        17.2
  
10%
  
1%
 
Divested Consumer Publishing Programs
            -
  
        14.1
            
            -
  
        26.5
        
   
Total Revenue
$
        92.5
  
      101.3
  
100%
  
7%
  
$
      176.6
  
      203.3
  
100%
  
0%
                                       
Revenue by Subject Category:
                                  
 
Business
$
        43.3
  
        38.1
  
47%
  
14%
  
$
        81.0
  
        77.3
  
46%
  
5%
 
Technology
  
        18.3
  
        19.9
  
20%
  
-7%
    
        35.5
  
        39.2
  
20%
  
-9%
 
Consumer
  
          9.9
  
        10.0
  
11%
  
-1%
    
        19.8
  
        21.1
  
11%
  
-6%
 
Professional Education
  
          7.6
  
          6.8
  
8%
  
12%
    
        16.2
  
        15.4
  
9%
  
5%
 
Architecture
  
          6.6
  
          6.3
  
7%
  
6%
    
        11.6
  
        12.4
  
7%
  
-6%
 
Psychology
  
          4.6
  
          3.3
  
5%
  
39%
    
          8.2
  
          6.7
  
5%
  
22%
 
Other
  
          2.2
  
          2.8
  
2%
  
-18%
    
          4.3
  
          4.7
  
2%
  
-4%
 
Divested Consumer Publishing Programs
            -
  
        14.1
            
            -
  
        26.5
        
   
Total Revenue
$
        92.5
  
      101.3
  
100%
  
7%
  
$
      176.6
  
      203.3
  
100%
  
0%
 
Note (a) - Variance excludes the revenue of the divested Professional Development consumer publishing programs sold in fiscal year 2013.
                                       
 
        Second Quarter             Six Months        
        Ended October 31,    % of    % Change     Ended October 31,    % of    % Change
EDUCATION    2013    2012    Revenue    excl. FX      2013    2012    Revenue    excl. FX
                                       
Revenue by Product/Service:
                                  
 
Print Textbooks
$
        45.2
  
        49.1
  
44%
  
-6%
  
$
        86.6
  
        97.5
  
47%
  
-10%
 
Binder and Custom Products
  
        14.8
  
        10.6
  
14%
  
40%
    
        31.1
  
        26.8
  
17%
  
16%
 
Online Program Management (Deltak)
        16.5
  
            -
  
16%
        
        31.3
  
            -
  
17%
    
 
Digital Books
  
          9.4
  
          6.2
  
9%
  
55%
    
        13.6
  
        10.2
  
7%
  
35%
 
WileyPLUS
  
        15.9
  
        12.8
  
15%
  
26%
    
        17.0
  
        13.6
  
9%
  
26%
 
Other
  
          1.9
  
          1.9
  
2%
  
0%
    
          5.2
  
          5.4
  
3%
  
4%
   
Total Revenue
$
      103.7
  
        80.6
  
100%
  
30%
  
$
      184.8
  
      153.5
  
100%
  
22%
                                       
Revenue by Subject Category:
                                  
 
Business
$
        22.1
  
        19.7
  
21%
  
13%
  
$
        40.1
  
        37.8
  
22%
  
7%
 
Sciences
  
        20.0
  
        16.6
  
19%
  
21%
    
        37.0
  
        36.3
  
20%
  
2%
 
Social Sciences
  
        14.1
  
        13.7
  
14%
  
4%
    
        25.8
  
        26.6
  
14%
  
-2%
 
Engineering & Computer Science
  
        12.2
  
        13.0
  
12%
  
-5%
    
        19.9
  
        23.1
  
11%
  
-13%
 
Mathematics & Statistics
  
          8.5
  
          8.2
  
8%
  
5%
    
        15.1
  
        14.4
  
8%
  
6%
 
Schools (Australia K-12)
  
          6.2
  
          5.1
  
6%
  
35%
    
        10.4
  
          8.1
  
6%
  
42%
 
Online Program Management (Deltak)
        16.5
  
            -
  
16%
        
        31.3
  
            -
  
17%
    
 
Other
  
          4.1
  
          4.3
  
4%
  
-28%
    
          5.2
  
          7.2
  
2%
  
-42%
   
Total Revenue
$
      103.7
  
        80.6
  
100%
  
30%
  
$
      184.8
  
      153.5
  
100%
  
22%

 
 
 
JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
               
     
October 31,
  
April 30,
     
2013
  
2012
  
2013
               
Current Assets
            
 
Cash & cash equivalents
$
     149,662
  
       92,565
  
     334,140
 
Accounts receivable
  
     180,175
  
     195,961
  
     161,731
 
Inventories
  
       81,368
  
       89,308
  
       82,017
 
Prepaid and other
  
       52,377
  
       61,959
  
       57,083
 
Total Current Assets
  
     463,582
  
     439,793
  
     634,971
Product Development Assets
  
       67,149
  
       79,822
  
       87,876
Technology, Property and Equipment
  
     184,050
  
     192,468
  
     189,625
Intangible Assets
  
     961,588
  
     996,748
  
     954,957
Goodwill
    
     851,309
  
     834,210
  
     835,540
Other Assets
  
     122,783
  
       88,643
  
     103,406
 
Total Assets
  
  2,650,461
  
  2,631,684
  
  2,806,375
               
Current Liabilities
            
 
Accounts and royalties payable
  
     161,649
  
     170,849
  
     143,313
 
Deferred revenue
  
     138,354
  
     107,418
  
     362,970
 
Accrued employment costs
  
       83,738
  
       52,908
  
       85,306
 
Accrued income taxes
  
         7,804
  
       17,799
  
       16,093
 
Accrued pension liability
  
         4,389
  
         3,570
  
         4,359
 
Other accrued liabilities
  
       44,579
  
       59,126
  
       55,128
 
Total Current Liabilities
  
     440,513
  
     411,670
  
     667,169
Long-Term Debt
  
     647,900
  
     701,900
  
     673,000
Accrued Pension Liability
  
     203,266
  
     144,154
  
     204,362
Deferred Income Tax Liabilities
  
     194,639
  
     212,549
  
     197,526
Other Long-Term Liabilities
  
       77,773
  
       72,944
  
       75,962
Shareholders' Equity
  
  1,086,370
  
  1,088,467
  
     988,356
 
Total Liabilities & Shareholders' Equity
$
  2,650,461
  
  2,631,684
  
  2,806,375

 
 
 

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW
(in thousands)
           
     
 Six Months Ended
     
 October 31,
     
2013
  
2012
Operating Activities:
        
 
Net income
$
        72,130
  
      79,174
 
Amortization of intangibles
  
        21,901
  
      19,246
 
Amortization of composition costs
  
        22,827
  
      26,136
 
Depreciation of technology, property and equipment
        28,909
  
      26,115
 
Restructuring charges
  
        23,071
  
        4,841
 
Impairment charges
  
          4,786
  
      15,521
 
Gain on sale of travel publishing program
  
               -
  
       (9,829)
 
Deferred tax benefits on U.K. rate changes
  
       (10,634)
  
       (8,402)
 
Stock-based compensation expense
  
          7,305
  
        7,995
 
Excess tax benefits from stock-based compensation
          1,672
  
       (1,095)
 
Royalty advances
  
       (44,005)
  
     (43,917)
 
Earned royalty advances
  
        59,926
  
      51,686
 
Other non-cash charges and credits
  
        17,061
  
      21,250
 
Change in deferred revenue
  
     (229,572)
  
    (233,257)
 
Income tax deposit
  
       (10,433)
  
     (29,705)
 
Net change in operating assets and liabilities, excluding acquisitions
       (31,442)
  
     (17,388)
 
       Cash Used for Operating Activities
  
       (66,498)
  
     (91,629)
           
Investments in organic growth:
        
 
Composition spending
  
       (19,290)
  
     (23,103)
 
Additions to technology, property and equipment
       (26,199)
  
     (28,262)
           
 
        Free Cash Flow
  
     (111,987)
  
    (142,994)
           
Other Investing and Financing Activities:
        
 
Acquisitions, net of cash
  
            (739)
  
    (233,919)
 
Proceeds from sale of travel publishing program
               -
  
      18,700
 
Repayment of long-term debt
  
     (293,500)
  
    (211,600)
 
Borrowings of long-term debt
  
      268,400
  
     438,500
 
Change in book overdrafts
  
       (23,836)
  
     (14,700)
 
Cash dividends
  
       (29,347)
  
     (28,808)
 
Purchase of treasury shares
  
       (18,533)
  
     (10,609)
 
Proceeds from exercise of stock options and other
        24,900
  
      23,735
 
Excess tax benefits from stock-based compensation
         (1,672)
  
        1,095
 
         Cash (Used for) Provided by Investing and Financing Activities
       (74,327)
  
     (17,606)
           
Effects of Exchange Rate Changes on Cash
  
          1,836
  
       (6,665)
           
Decrease in Cash and Cash Equivalents for Period
$
     (184,478)
  
    (167,265)
           
           
RECONCILIATION TO GAAP PRESENTATION
           
Investing Activities:
        
 
Composition spending
$
       (19,290)
  
     (23,103)
 
Additions to technology, property and equipment
       (26,199)
  
     (28,262)
 
Acquisitions, net of cash
  
            (739)
  
    (233,919)
 
Proceeds from sale of travel publishing program
               -
  
      18,700
 
         Cash Used for Investing Activities
$
       (46,228)
  
    (266,584)
           
Financing Activities:
        
Cash (Used for) Provided by Investing and Financing Activities
$
       (74,327)
  
     (17,606)
Excluding:
        
 
Acquisitions, net of cash
  
            (739)
  
    (233,919)
 
Proceeds from sale of travel publishing program
               -
  
      18,700
 
          Cash (Used for) Provided by Financing Activities
$
       (73,588)
  
     197,613
           
Note: The Company’s management evaluates performance using free cash flow.  The Company believes free cash flow provides a meaningful and comparable measure of performance.  Since free cash flow is not a measure calculated in accordance with GAAP, it should not be considered as a substitute for other GAAP measures, including cash used for or provided by operating activities, investing activities and financing activities, as an indicator of performance.

 
 
 

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized



 
JOHN WILEY & SONS, INC.
 
Registrant



 
By 
/s/ Stephen M. Smith
   
Stephen M. Smith
   
President and Chief Executive Officer




 
By 
/s/ John A. Kritzmacher
   
John A. Kritzmacher
   
Executive Vice President and
   
Chief Financial Officer
     


 
Dated: December 10, 2013