8-K 1 fy18q1-8k.htm FY18Q1-8K
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


September 7, 2017
(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 2.02:      RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On September 7, 2017, John Wiley & Sons Inc., a New York corporation (the "Company"), issued a press release announcing the Company's financial results for the first quarter of fiscal year 2018. A copy of the Company's press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. 
 
The information in this report, including the exhibits hereto, (x) shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and (y) shall not be incorporated by reference into any filing of the Company with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the Company specifically states that the information or exhibits in this particular report are incorporated by reference). 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.

 
ITEM 9.01:   FINANCIAL STATEMENTS AND EXHIBITS
 
Exhibit No.      Description
 
99.1           Press release dated September 7, 2017 titled "Wiley Reports First Quarter 2018 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).
 




Contact:
Brian Campbell, Investor Relations
201.748.6874
brian.campbell@wiley.com

Wiley Reports First Quarter 2018 Results
September 7, 2017 (Hoboken, NJ) – John Wiley & Sons, Inc. (NYSE: JWa and JWb), a global research and learning company, today announced results for the first quarter ending July 31, 2017.

HIGHLIGHTS
Ø
Revenue increased 2% to $411 million; +1% at constant currency
Ø
Adjusted EPS increased 9% to $0.59 per share; -5% at constant currency
Ø
Operational excellence initiatives resulted in $29 million of restructuring and related charges, expected to yield $45 million in gross run-rate savings beginning in fiscal 2019
Ø
Free Cash Flow less Product Development spending improved by $48 million
Ø
Quarterly dividend increased for 24th consecutive year to $0.32 per share

FINANCIAL SUMMARY

Unaudited ($millions except for EPS)
GAAP Measures
 
Q1 2018
Q1 2017
Change
Change
Constant Currency
Revenue
$411.4
$404.3
2%
1%
Operating Income
$14.5
$43.8
-67%
  
Diluted EPS
$0.16
$0.53
-70%
  
Cash from Operations
 
($81.8)
($136.7)
40%
  
Non-GAAP Measures
Q1 2018
Q1 2017
Change
Change
Constant Currency
Adjusted Operating Income
$43.8
$42.9
2%
-13%
Adjusted EPS
$0.59
$0.54
9%
-5%
Free Cash Flow less Product Development Spending
($117.8)
($165.5)
29%
  

 
·
Revenue increase was largely driven by the contribution from the Atypon acquisition, as print book declines in Publishing were offset by increases in Research and Solutions.
·
Adjusted Operating Income decline at constant currency was mainly due to $6 million in one-time credits in the prior year related to employee benefit plans.  Cost of Sales and Operating and Administrative Costs were up 1% and 3% at constant currency, respectively.  GAAP Operating Income additionally reflected $29.3 million in restructuring and related charges.
 
 
 
 
·
Adjusted EPS decline at constant currency was due to lower adjusted operating income.  GAAP EPS also reflected restructuring and related charges as well as foreign exchange losses on intercompany transactions.
·
Free Cash Flow less Product Development Spending improvement was mainly due to the timing of cash collections and payments as anticipated in the fourth quarter 2017 report.  Free cash flow is seasonally negative in the first half of Wiley's fiscal year principally due to the timing of collections for journal subscriptions.
·
Return to Shareholders:  During the quarter, Wiley repurchased 265,158 shares for $14 million at an average cost of $52.86.  Approximately 3.5 million shares remain in the repurchase program.  In June, Wiley increased its quarterly dividend by 3% to $0.32 per share, marking the 24th consecutive annual increase and raising the annualized dividend payout to $1.28 per share.

MANAGEMENT COMMENTARY
"We continue to make important progress in shifting our strategic focus to the delivery of enhanced digital products and services for researchers, educators, professionals, and higher education students around the globe," said Matthew Kissner, Interim CEO and Chairman.  "We are realigning our cost base, reallocating resources, reinvesting in specific growth areas, and focusing on culture, productivity, and customer engagement – all of which should benefit us in fiscal 2019 and beyond."

FISCAL YEAR 2018 OUTLOOK
The Company reaffirms its fiscal 2018 guidance.

Metric ($M)
FY17 Actual
FY18 Expectation
(at constant currency)
Revenue
$1,718.5
Approximately even
Adjusted Operating Income
$228.4
Approximately even
Adjusted EPS
$3.01
Low-single digit % decline
Cash from Operations
$314.5
$350 million or higher
Capex
$148.3
Slightly lower

Financial Tables:  Please see accompanying tables for additional details on financial performance. Please note that certain labels in the tables have changed, including Author-Funded Access (now Open Access), Platform Services (now Publishing Technology Services), Online Program Management (now Education Services), and Unallocated Shared Services Costs (now Corporate Expenses).

Adjusted Results:  The Company provides financial measures referred to as "adjusted," which exclude unusual charges and credits as more fully described in the attached financial schedules.  For the first quarter ended July 31, the Company excluded foreign exchange gains and losses on intercompany transactions in deriving adjusted earnings in the current and prior year periods.  This change will also be reflected in subsequent periods.  The Company believes these gains and losses, which result from transactions associated with tax planning efforts, do not reflect its underlying performance.

Foreign Exchange:  Foreign exchange was beneficial to first quarter revenue and EPS by $2.8 million and $0.07, respectively.   If current rates hold, Wiley expects to record a positive FY18  FX variance due to functional currency gains related to calendar year 2017 journal subscriptions in the UK.  Variances are on a constant currency basis unless otherwise noted.
 
 
RESEARCH SEGMENT (SCIENTIFIC, TECHNICAL, MEDICAL, SCHOLARLY JOURNALS AND SERVICES)
·
Revenue:  $223.6 million (+8% GAAP; +6% constant currency).  Growth was driven primarily by the contribution from the Atypon acquisition (+$8 million, acquired October 2016) and higher Open Access revenues (+20%).
·
Adjusted Contribution to Profit:  $66.3 million (0% constant currency).   Performance reflected higher revenues offset primarily by Atypon expenses and higher royalty costs. GAAP Contribution to Profit: $61.5 million (2%) included restructuring charges of $4.8 million in the current year.
·
Calendar Year 2017 Journal Subscriptions:  As of the end of July, calendar year 2017 Journal Subscriptions were up 0.3% on a constant currency basis with 98% of expected business contracted.
·
Society Publishing Partnerships:  Nine new society contracts were signed in the quarter with combined annual revenue of $6.6 million; nineteen were renewed with combined annual revenue of $11.6 million; four were not renewed totaling $0.9M.

PUBLISHING SEGMENT (BOOKS, COURSEWARE, TEST PREPARATION)
·
Revenue:  $131.3 million (-9% GAAP; -8% constant currency).  Strong growth in Test Preparation and Certification (+20%) and Course Workflow (+40%) were not enough to offset market-driven declines and erosion of demand for print products in Education Publishing (-16% overall) and STM and Professional Publishing (-8% overall).
·
Adjusted Contribution to Profit:  $15.9 million (-18% constant currency).  Performance reflects lower revenues and the timing of development and licensing costs.  GAAP Contribution to Profit of $5.0 million (-74%) included restructuring charges of $10.9 million in the current year.

SOLUTIONS SEGMENT (EDUCATION SERVICES, CORPORATE LEARNING, PROFESSIONAL ASSESSMENT)
·
Revenue:  $56.5 million (+9% GAAP and constant currency).  Growth in Education Services (+14%) and Assessment (+10%) offset a 1% decline in Corporate Learning.
·
Adjusted Contribution to Profit:  Increased to $0.8 million from $0.1 million in the prior year.  Improvement driven by revenue growth and increased operating efficiency.  GAAP Contribution to Profit: -$2.0 million including restructuring charges of $2.8 million.
·
Education Services (formerly Online Program Management): In the quarter, Wiley signed one new partner (Winthrop University) and six new programs.  One partner and five programs were retired.  As of July 31, Wiley had 39 university partners and 251 programs under contract.

EARNINGS CONFERENCE CALL
Scheduled for today, September 7 at 10:00 a.m. (ET).  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 866-564-2842 and enter the participant code 2784819#.  International callers, please dial (323) 794-2130 and enter the participant code 2784819#.

ABOUT WILEY
Wiley is a global research and learning company.  Through the Research segment, the Company provides scientific, technical, medical, and scholarly journals, as well as related content and services, for academic, corporate, and government libraries, learned societies, and individual researchers and other professionals.   The Publishing segment provides scientific (STM), professional development, and education books and related content, as well as test preparation services and course workflow tools, to libraries, corporations, students, professionals, and researchers.  In Solutions, Wiley provides online program management services for higher education institutions, and learning, development, and assessment services for businesses and professionals.
 
FORWARD-LOOKING STATEMENTS
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.

JOHN WILEY & SONS, INC.                
UNAUDITED SUMMARY OF OPERATIONS              
FOR THE FIRST QUARTER ENDED               
JULY 31, 2017 AND 2016                
(in thousands, except per share amounts)              
                                     
                                     
FIRST QUARTER ENDED JULY 31,             
  
                                     
       
2017
  
2016
  
% Change
         US GAAP    
Adjustments
    
Adjusted
    
US GAAP
    
Adjustments
    
Adjusted
    
US GAAP
    Adjusted
excl. FX
                                     
Revenue
$
          411,444
  
                 -
  
     411,444
  
    404,285
  
                -
  
       404,285
  
2%
  
1%
                                     
Costs and Expenses
                                
 
Cost of Sales
  
          114,788
  
                 -
  
     114,788
  
    113,478
  
                -
  
       113,478
  
1%
  
1%
 
Operating and Administrative (A)
          243,808
  
           (3,600)
  
     240,208
  
    235,340
      
       235,340
  
4%
  
3%
 
Restructuring (Credits) Charges (A)
            25,729
  
          (25,729)
  
              -
  
          (920)
  
              920
  
                -
        
 
Amortization of Intangibles
  
            12,619
  
                 -
  
       12,619
  
      12,573
  
                -
  
         12,573
  
0%
  
3%
                                     
 
Total Costs and Expenses
  
          396,944
  
          (29,329)
  
     367,615
  
    360,471
  
              920
  
       361,391
  
10%
  
3%
                                     
Operating Income
  
            14,500
  
           29,329
  
       43,829
  
      43,814
  
             (920)
  
         42,894
  
-67%
  
-13%
 
Operating Margin
  
3.5%
      
10.7%
  
10.8%
      
10.6%
        
                                     
Interest Expense
  
             (3,273)
  
                 -
  
        (3,273)
  
       (4,071)
  
                -
  
          (4,071)
  
-20%
  
-20%
Foreign Exchange (Loss) Gain (B)
             (5,136)
  
            6,017
  
            881
  
           221
  
           1,329
  
           1,550
        
Interest Income and Other
  
                    5
  
                 -
  
               5
  
           377
  
                -
  
             377
  
-99%
  
-99%
                                     
Income Before Taxes
  
              6,096
  
           35,346
  
       41,442
  
      40,341
  
              409
  
         40,750
  
-85%
  
-12%
                                     
(Benefit) Provision for Income Taxes (A,B)
             (3,140)
  
           10,627
  
         7,487
  
        9,327
  
               (65)
  
           9,262
  
-134%
  
-33%
                                     
Net Income
$
              9,236
  
           24,719
  
       33,955
  
      31,014
  
              474
  
         31,488
  
-70%
  
-6%
                                     
                                     
Earnings Per Share- Diluted (A)
$
                0.16
  
              0.43
  
           0.59
  
          0.53
  
             0.01
  
            0.54
  
-70%
  
-5%
                                     
Average Shares - Diluted
  
            57,709
  
           57,709
  
       57,709
  
      58,176
  
         58,176
  
         58,176
        
                                     
                   
                                     
(A,B) See the accompanying Notes to Unaudited Financial Statements for a description of each adjustment.
 
JOHN WILEY & SONS, INC.     
FOR THE FIRST QUARTER ENDED     
JULY 31, 2017 AND 2016     
             
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
             
             
   
 First Quarter Ended
   
 July 31,   
     
2017
    
2016
             
 US GAAP Earnings Per Share - Diluted
 $
         0.16
  
 $
           0.53
 Adjusted to exclude the following:
          
 
 Restructuring and Related Charges (Credits) (A)
  
         0.35
    
          (0.01)
 
 FX Losses on Intercompany Transactions (B)
  
         0.08
    
           0.02
 Adjusted Earnings Per Share - Diluted
 $
         0.59
  
 $
           0.54
             
       
             
       
NOTES TO UNAUDITED FINANCIAL STATEMENTS
       
             
 Adjustments:     
 A
Adjusted results for the three months ended July 31, 2017 and 2016 exclude restructuring and related charges (credits) associated with the Company's Restructuring and Reinvestment Program of $29.3 million, or $0.35 per share, and $(0.9) million, or $(0.01) per share, respectively.  The first quarter of fiscal year 2017 credit reflects the true-up of facility lease reserves.
 B
Adjusted results exclude foreign exchange gains and losses associated with intercompany transactions.  For the three months ended July 31, 2017 and 2016, there were losses of $6.0 million, or $0.08 per share, and $1.3 million, or $0.02 per share, respectively.
             
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 FIRST QUARTER ENDED
JULY 31, 2017 AND 2016
(in thousands)
                                     
                                     
FIRST QUARTER ENDED JULY 31,
                                     
       
2017
  
2016
  
% Change
    US GAAP  
Adjustments
(A)
   Adjusted   US GAAP  
Adjustments
(A)
   Adjusted   US GAAP  
Adjusted
excl. FX
Research
                                
Revenue
                                
 
Journal Subscriptions
$
      168,325
  
                -
  
      168,325
  
       162,684
  
                -
  
    162,684
  
3%
  
0%
 
Open Access
  
         8,803
  
                -
  
         8,803
  
          7,513
  
                -
  
        7,513
  
17%
  
20%
 
Licensing, Reprints, Backfiles and Other
        38,230
  
                -
  
        38,230
  
        37,026
  
                -
  
      37,026
  
3%
  
6%
   
Total Journal Revenue
  
      215,358
  
                -
  
      215,358
  
       207,223
  
                -
  
    207,223
  
4%
  
2%
 
Publishing Technology Services (Atypon)
         8,269
  
                -
  
         8,269
  
               -
  
                -
  
             -
        
Total Research Revenue
  
      223,627
  
                -
  
      223,627
  
       207,223
  
                -
  
    207,223
  
8%
  
6%
Contribution to Profit
  
        61,461
  
           4,836
  
        66,297
  
        60,435
  
              (69)
  
      60,366
  
2%
  
0%
                                     
                                     
Publishing
                                
Revenue
                                
 
STM and Professional Publishing
$
        63,600
  
                -
  
        63,600
  
        70,697
  
                -
  
      70,697
  
-10%
  
-8%
 
Education Publishing
  
        45,736
  
                -
  
        45,736
  
        54,861
  
                -
  
      54,861
  
-17%
  
-16%
 
Course Workflow (WileyPLUS)
  
         1,210
  
                -
  
         1,210
  
             866
  
                -
  
           866
  
40%
  
40%
 
Test Preparation and Certification
        11,490
  
                -
  
        11,490
  
          9,558
  
                -
  
        9,558
  
20%
  
20%
 
Licensing, Distribution, Advertising and Other
         9,242
  
                -
  
         9,242
  
          8,980
  
                -
  
        8,980
  
3%
  
4%
Total Publishing Revenue
  
      131,278
  
                -
  
      131,278
  
       144,962
  
                -
  
    144,962
  
-9%
  
-8%
Contribution to Profit
  
         5,009
  
          10,854
  
        15,863
  
        19,320
  
             353
  
      19,673
  
-74%
  
-18%
                                     
                                     
Solutions
                                
Revenue
                                
 
Education Services (Online Program Management)
$
        26,337
  
                -
  
        26,337
  
        23,172
  
                -
  
      23,172
  
14%
  
14%
 
Professional Assessment
  
        14,887
  
                -
  
        14,887
  
        13,522
  
                -
  
      13,522
  
10%
  
10%
 
Corporate Learning
  
        15,315
      
        15,315
  
        15,406
  
                -
  
      15,406
  
-1%
  
-1%
Total Solutions Revenue
  
        56,539
  
                -
  
        56,539
  
        52,100
  
                -
  
      52,100
  
9%
  
9%
Contribution to Profit
  
        (1,968)
  
           2,795
  
            827
  
             146
  
                -
  
           146
  
N/M
  
N/M
                                     
                                     
Corporate Expenses
  
       (50,002)
  
          10,844
  
       (39,158)
  
       (36,087)
  
          (1,204)
  
     (37,291)
  
39%
  
6%
                                     
Operating Income
$
        14,500
  
          29,329
  
        43,829
  
        43,814
  
            (920)
  
      42,894
  
-67%
  
-13%
                   
   
(A) See the accompanying Notes to Unaudited Financial Statements for a description of the adjustment.
   
N/M- Not Meaningful
                 
 
JOHN WILEY & SONS, INC.      
UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
               
     
July 31, 
  
April 30,
     
2017
  
2016
  
2017
               
Current Assets
            
 
Cash and cash equivalents
$
       84,113
  
      185,894
  
           58,516
 
Accounts receivable
  
     198,576
  
      213,968
  
          188,679
 
Inventories
  
       47,892
  
        54,822
  
           47,852
 
Prepaid and other
  
       66,177
  
      119,392
  
           64,688
 
Total Current Assets
  
     396,758
  
      574,076
  
          359,735
Product Development Assets
  
       68,773
  
        39,239
  
           70,955
Royalty Advances
  
       21,578
  
        24,883
  
           28,320
Technology, Property and Equipment
  
     265,291
  
      214,740
  
          252,488
Intangible Assets
  
     833,676
  
      831,249
  
          828,099
Goodwill
  
     996,000
  
      916,690
  
          982,101
Income Tax Deposits
  
              -
  
        62,200
  
                  -
Other Assets
  
       85,028
  
        80,185
  
           84,519
 
Total Assets
  
  2,667,104
  
    2,743,262
  
       2,606,217
               
Current Liabilities
            
 
Accounts and royalties payable
  
     141,034
  
      138,397
  
          139,206
 
Deferred revenue
  
     334,625
  
      321,616
  
          436,235
 
Accrued employment costs
  
       81,245
  
        55,241
  
           98,185
 
Accrued income taxes
  
       24,605
  
          3,368
  
           22,222
 
Accrued pension liability
  
         5,820
  
          5,467
  
             5,776
 
Other accrued liabilities
  
       83,509
  
        69,042
  
           86,232
 
Total Current Liabilities
  
     670,838
  
      593,131
  
          787,856
Long-Term Debt
  
     551,645
  
      653,000
  
          365,000
Accrued Pension Liability
  
     212,843
  
      206,814
  
          214,597
Deferred Income Tax Liabilities
  
     150,425
  
      191,388
  
          160,491
Other Long-Term Liabilities
  
       72,135
  
        82,521
  
           75,136
Shareholders' Equity
  
  1,009,218
  
    1,016,408
  
       1,003,137
 
Total Liabilities & Shareholders' Equity
$
  2,667,104
  
    2,743,262
  
       2,606,217

JOHN WILEY & SONS, INC.
UNAUDITED CONDENSED STATEMENTS OF FREE CASH FLOW
(in thousands)
           
           
     
 Three Months Ended
     
 July 31,
     
2017
  
2016
Operating Activities:
        
 
Net income
$
             9,236
  
             31,014
 
Amortization of intangibles
  
           12,619
  
             12,573
 
Amortization of product development spending
  
             9,644
  
               9,731
 
Depreciation of technology, property and equipment
           18,540
  
             17,125
 
Non-cash charges and credits
  
           32,045
  
             20,231
 
Net change in operating assets and liabilities
  
        (163,915)
  
          (227,386)
 
Cash Used for Operating Activities
  
          (81,831)
  
          (136,712)
           
Investments in organic growth:
        
 
Additions to technology, property and equipment
          (30,111)
  
            (20,778)
 
Product development spending
  
            (5,907)
  
              (7,989)
 
Free Cash Flow less Product Development Spending
        (117,849)
  
          (165,479)
           
Other Investing and Financing Activities:
        
 
Acquisitions, net of cash
  
            (4,413)
  
              (8,600)
 
Net debt borrowings
  
         185,964
  
             47,993
 
Change in book overdrafts
  
          (13,977)
  
            (12,261)
 
Cash dividends
  
          (18,382)
  
            (17,914)
 
Purchase of treasury shares
  
          (14,016)
  
            (11,289)
 
Proceeds from exercise of stock options and other
             5,599
  
             13,689
 
Cash Provided by Investing and Financing Activities
         140,775
  
             11,618
           
Effects of Exchange Rate Changes on Cash
  
             2,671
  
            (24,051)
           
Increase (Decrease) in Cash and Cash Equivalents for Period
$
           25,597
  
          (177,912)
           
           
           
                                                                          RECONCILIATION TO GAAP PRESENTATION
           
Investing Activities:
        
 
Product development spending
$
            (5,907)
  
              (7,989)
 
Additions to technology, property and equipment
          (30,111)
  
            (20,778)
 
Acquisitions, net of cash
  
            (4,413)
  
              (8,600)
 
         Cash Used for Investing Activities
$
          (40,431)
  
            (37,367)
           
Financing Activities:
        
Cash Provided by Investing and Financing Activities
$
         140,775
  
             11,618
Excluding:
        
 
Acquisitions, net of cash
  
            (4,413)
  
              (8,600)
 
          Cash Provided by Financing Activities
$
         145,188
  
             20,218
           
Free Cash Flow less Product Development Spending:
      
           
The Company provides financial measures referred to as "Free Cash Flow less Product Development Spending."  Free Cash Flow less Product Development Spending is defined as "cash flow from operating activities, less book composition and other product development and capital spending."  Management believes this metric provides additional information to investors to facilitate the comparison of past and present results.  This metric is also used internally by management in evaluating results.  This non-GAAP measure is not intended to replace the financial results reported in accordance with US Generally Accepted Accounting Principles.
 
 
 
 
 
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/ Matthew S. Kissner
  
   
Matthew S. Kissner
  
   
Interim Chief Executive Officer and
  
   
Chairman of the Board
  




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


 
Dated: September 7, 2017