ITEM 7: EXHIBITS
Exhibit No. Description
99.1 Press Release dated June 17, 2003 titled "John Wiley & Sons, Inc.
Reports Record Results for Fiscal Year 2003" announcing earnings
for the fiscal year ended April 30, 2003 (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).
ITEM 9: REGULATION FD DISCLOSURE
The information in this report is being furnished (i) pursuant to
Regulation FD, and (ii) pursuant to Item 12 Results of Operations
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 June 17, 2003, John Wiley & Sons Inc., a New York corporation
(the "Company"), issued a press release announcing the Company's
financial results for the fiscal year ended April 30, 2003. A
copy of the Company press release is attached hereto as Exhibit
99.1 and incorporated herein by reference.
Exhibit 99.1
Ellis E. Cousens
Executive Vice President, Chief Financial & Operations Officer
John Wiley & Sons, Inc.
(201) 748-6534
John Wiley & Sons, Inc. Reports Record Results for Fiscal Year 2003
Hoboken, N.J. June 18, 2003 -- John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb)
announced today that earnings per diluted share and net income for the fiscal
year ended April 30, 2003 reached record levels, advancing 18% to $1.22 and
$76.7 million, respectively, excluding a one-time tax benefit in fiscal year
2003 and an unusual charge in both fiscal years 2003 and 2002 related to the
Company's relocation to Hoboken, New Jersey. Including the tax benefit and
unusual charge, earnings per diluted share and net income for fiscal year 2003
were $1.38 and $87.3 million, compared to $0.91 and $57.3 million in fiscal year
2002. The above results include the effect of lower amortization due to the
adoption of SFAS No. 142 in 2003.
Revenues in fiscal year 2003 increased 16% over prior year to a record $854
million, including foreign currency translation effects, or 14% excluding those
effects. Excluding Hungry Minds, Wiley's largest acquisition, revenues increased
8%. In addition to Hungry Minds, year-on-year growth was driven primarily by
organic growth and the April 2002 acquisitions of GIT Verlag in Germany and A&M
Publishing in the UK.
"In a difficult market environment, Wiley continued to perform admirably,
providing tangible evidence of the resiliency of our business and the commitment
and perseverance of our colleagues around the world. In fiscal year 2003, we
accomplished important strategic objectives and achieved record worldwide
revenues, earnings, and cash flow," said President and CEO William J. Pesce.
He added, "Our performance, not only during fiscal year 2003, but also over the
course of the past decade, demonstrates our team's ability to execute the
Company's strategic plan effectively; the competitive strength of Wiley's highly
regarded brands; the value our customers place on our deep reservoir of must
have content; and the strong foundation of trust and integrity that guides the
long-term relationships we have with our authors, our partners, our colleagues,
and our investors."
Mr. Pesce concluded, "With Wiley's strong balance sheet and steady cash flow, we
are well positioned to capitalize on growth opportunities that meet the
Company's strategic and financial objectives. We anticipate mid-to-high single
digit increases in revenues and earnings in fiscal year 2004.
For the fourth quarter, which due to the seasonality of the Company's Higher
Education business is the least significant in financial terms, earnings per
diluted share was $0.13 in fiscal year 2003, as compared to $0.10 in 2002,
excluding the unusual relocation charge in the prior period. Revenues for the
quarter were $203 million, representing a 7% increase over the prior year, or 4%
excluding foreign currency translation effects. In fiscal year 2003, fourth
quarter income taxes reflect the effect of higher foreign taxes.
During the year, the Company relocated three of its operations to new offices.
Wiley's global headquarters was moved to a waterfront site in Hoboken, New
Jersey, while its European operations were relocated to new offices in
Chichester in the U.K. and Weinheim, Germany. All of these new facilities are
designed to promote collaboration and productivity, while providing
cost-effective space to support future business growth.
Special Items
In the fourth quarter of fiscal year 2002, Wiley finalized its commitment to
relocate the Company's headquarters to Hoboken, New Jersey. The relocation was
accomplished on schedule and on attractive financial terms. Fiscal years 2003
and 2002 include an unusual pre-tax charge for costs associated with the
relocation of approximately $2.5 million ($1.5 million after-tax) and $12.3
million ($7.7 million after-tax), respectively.
As reported in the second quarter, the Company merged several of its European
subsidiaries into a new entity, which enabled the Company to increase the
tax-deductible asset basis of the merged subsidiaries to fair value at the date
of merger. Under U.S. accounting principles, the benefit of $12 million, or
$0.19 per diluted share, attributable to the increase in tax basis is
immediately included in income. The cash benefit of this change will be
recognized pro-rata over a 15-year period. The Company's effective tax rate,
excluding this tax benefit, was 33.1% for the year.
Effective May 1, 2002, the Company adopted SFAS No. 142, which eliminates the
amortization of goodwill and indefinite lived intangible assets. In fiscal year
2003, the estimated after-tax impact of the non-amortization of goodwill and
intangible assets was $1.9 million, or $0.03 per share, for the fourth quarter
and $7.8 million, or $0.12 per share, for the year.
During fiscal year 2003, the Company centralized several web development
activities that were previously in the publishing operations. This
organizational change will enable the Company to leverage these capabilities
more efficiently across all of Wiley's global businesses. The expenses for these
activities are now included in shared services and administrative costs, whereas
previously they were included in business segment results. Accordingly, these
expenses have been reclassified for the prior year periods on the attached
financial statements to provide a more meaningful comparison.
Segment Highlights
Professional/Trade
- ------------------
Revenues of Wiley's U.S. Professional/Trade business advanced 27% over fiscal
year 2002, reflecting the combined full-year effects of the Hungry Minds
acquisition and organic growth. While growth in the first half of the year was
very strong, second half performance was adversely impacted by a sluggish retail
environment and reduced customer traffic at brick and mortar bookstores as a
result of the war in Iraq. Despite these unfavorable external factors, P/T
revenues for the fourth quarter advanced 5% over the prior year. Wiley gained
market share in all of its P/T publishing categories throughout the year. Global
revenues in the fourth quarter and full year of fiscal year 2003 increased 5%
and 26%, respectively, over the prior year.
Wiley's business program continues to exhibit strength despite soft market
conditions. Eight Wiley business titles appeared on major bestseller lists,
including Conquer the Crash: You Can Survive and Prosper in a Deflationary
Depression; Five Dysfunctions of a Team: A Leadership Fable; The Morningstar
Guide to Mutual Funds: 5-Star Strategies for Success; Home Buying For Dummies;
Starting an eBay Business For Dummies; Straight Talk on Investing: What You Need
to Know; The Ernst & Young Tax Guide 2003; and JK Lasser's Your Income Tax 2003.
A survey of readers by Training Magazine cited Wiley-Jossey Bass as the best
training supplier (based on four criteria: Value, Ease of Use, Met/Exceed
Buyer's Expectations, and Exceptional Customer Service) in four categories -
Business; Management and Leadership Skills Training; Safety/Compliance Training;
and Customer Service. During the quarter, the Company signed an agreement for a
publishing partnership with the Institute of Internal Auditors, a leading global
association of professionals with 85,000 members in over 120 countries.
The Company's consumer publishing programs had a strong fourth quarter and year,
particularly cooking, reference, and travel. Cookbooks that sold well during the
fourth quarter were Betty Crocker's Cooking With Diabetes, Betty Crocker's
Cookbook 9e, and Weight Watchers New Complete Cookbook. Two Wiley consumer
titles appeared on major bestseller lists during the year: Bush's Brain and
Religion For Dummies. Wiley titles recently won awards from the International
Association of Cooking Professionals and the James Beard Institute. The Company
also signed a publishing agreement with The Learning Annex for a series of
consumer books on a variety of subjects, including Feng Shui and wine.
Although the overall market for computer books continues to be weak, Wiley's
technology publishing program continues to outperform the market and gain
significant market share. Performing particularly well are consumer titles in
areas such as digital photography, digital imaging software, general PC
technology, Windows XP, home networking, eBay, Apple's Mac OS X, Red Hat Linux,
and CD/DVD recording. In April, Wiley acquired 34 best-selling computer titles
from Wrox Press. During the quarter, the Company signed an agreement to become
the exclusive publisher for a series of PC Magazine-branded books.
The Company's professional and academic programs in architecture,
culinary/hospitality, psychology, and teacher education had a solid fourth
quarter. Wiley launched Graphicstandards.com, a major step in the evolution of
the Architectural Graphic Standards franchise. Earlier in the year, Wiley
acquired approximately 250 teacher education titles, representing an important
step toward becoming the leading publisher of high-quality resources and
ready-to-use tools for school leaders and classroom instructors.
Scientific, Technical, and Medical (STM)
- ----------------------------------------
Wiley's U.S. STM revenues were 2% higher than prior year in fiscal year 2003 and
slightly lower than last year in the fourth quarter. The continued success of
the Wiley InterScience online service mitigated the adverse impact of the
Divine/Rowecom bankruptcy and softness in the STM book market. Global STM
revenues for the fiscal year and fourth quarter of 2003 increased 12% as
compared to the previous year, bolstered by the acquisitions of GIT Verlag and
A&M Publishing, as well as journal growth.
Wiley's STM journal and book business is continuing its transformation to
digital access through the growth of Wiley InterScience. The online service
experienced a significant increase in the number of journal articles viewed.
More than 60% of global journal subscription revenues are now generated by Wiley
InterScience licenses. Several licenses were signed during the fourth quarter,
including the Japanese Medical and Pharmaceutical Library Associations
Consortium in Asia; the University of New South Wales in Australia; the
Austrian, Bavarian, Norwegian and Greek consortia in Europe; and Howard
University, the Pennsylvania Academic Library Consortium, the Statewide
California Electronic Library Consortia, and the Quebec Academic Consortium in
North America.
The Company continues to add content and functionality to Wiley InterScience,
increasing revenues by meeting customer needs. The Polymer Backfile Collection
launched on Wiley InterScience with great success in March. The largest
collection of high-quality polymer science backfile articles available online
from a single publisher, the Collection includes more than 600,000 pages of
articles from seminal journals, such as the Journal of Polymer Science and
Macromolecular Chemistry and Physics.
In April, Wiley InterScience launched a new Pay-Per-View service that we expect
will generate incremental revenue from customers who want to purchase individual
articles by credit card. More than half a dozen major reference works were added
to Wiley InterScience during fiscal year 2003, including the sixth edition of
the 40-volume Ullman's Encyclopedia of Industrial Chemistry.
Although some key front-list books, such as Considine: Van Nostrand Scientific
Encyclopedia 9e, Burger's Medicinal Chemistry and Drug Discovery 6e, and
Horvath/Encyclopedia of Catalysis, exceeded expectations, overall STM book sales
were sluggish due to tight library budgets.
Wiley had an excellent year in the continued development of its society journal
program, signing agreements to publish several important journals in print and
online, such as the British Journal of Surgery, Hepatology, Liver
Transplantation, and Ultrasound in Obstetrics and Gynecology. In addition, the
Company successfully renewed its publishing contract for Cancer, a publication
of the American Cancer Society, and extended its publishing contracts for Annals
of Neurology, Journal of Magnetic Resonance Imaging, and Magnetic Resonance in
Medicine.
Higher Education
- ----------------
Fourth quarter and full year revenues for the U.S. Higher Education business
were up over the comparable prior year periods by 4% and 5%, respectively.
Revenue growth was principally due to a strong front list in the life sciences,
as well as solid performances of the physical sciences and social sciences
programs. Results continued to be affected by sluggish industry-wide conditions
in engineering, although there was some improvement in the fourth quarter.
Global revenues for the fiscal year 2003 increased 6% over the prior year.
During the fourth quarter, Higher Education launched its biggest front list
ever. Key new products include Hughes-Hallett/Applied Calculus 2e; Tortora and
Grabowski/Principles of Anatomy and Physiology 10e; Cutnell/College Physics;
Huffman/Psychology 7e; McDaniel/Marketing Research Essentials 4e;
Voet/Biochemistry 3e; Weygandt/Managerial Accounting 2e; and
Strahler/Introducing Physical Geography 3e.
Technology is creating new opportunities, as reflected in increased demand for
Web-based products and course management tools. Wiley is capitalizing on these
opportunities and meeting the evolving needs of students and teachers. An
example is Wiley Business Extra Select, which was announced in the third quarter
and will enable professors to create customized business courses with material
from Wiley textbooks and other sources.
The Higher Education Website offers online learning materials on more than 2,300
subsites to support teaching and learning. Virtual peer training through Wiley's
Faculty Resource Network increased dramatically during the fourth quarter, with
hundreds of professors participating in virtual seminars and one-on-one
collaborations. This unique, reliable, and accessible service is a source of
competitive advantage. During the year, the Company began to generate revenue
from its eGrade and Interactive Homework Edition initiatives. Our Virtual
Bookfairs were expanded to cover most disciplines.
Europe
- ------
Fourth quarter and full year revenues for fiscal year 2003 from Wiley's European
operations were up 32% and 28%, respectively, over prior year, reflecting the
GIT Verlag and A&M Publishing acquisitions and organic growth. Primary
contributors to the organic growth were the journals program, as well as
indigenous P/T titles, such as the global bestseller, Prechter/Conquer the
Crash. Results in Germany were negatively affected by a weak advertising market
and sluggish book sales.
Top-selling Wiley titles in Europe during the quarter included
Tasman/Psychiatry, Tortora/Principles of Anatomy and Physiology, Read/CFO as
Business Integrator, and the journal, Numerical Methods in Engineering. Traffic
on community-of-interest portals, InPharm.com, spectroscopyNOW.com and
pro.physik.de, reached all-time highs during the fourth quarter. In March, Wiley
Europe signed an agreement with The Cochrane Collaboration for the publication
of the Cochrane Systematic Reviews in evidence-based medicine. These online
databases are widely regarded as the world's most authoritative source of
information on the effectiveness of health care interventions. In addition to
enhancing Wiley's medical publishing program with the addition of prestigious
content, the partnership establishes a major presence for the Company in the
rapidly emerging area of medical informatics. Wiley Europe was named
"Distributor of the Year" for the fifth time in six years by the Academic,
Professional, and Specialist Booksellers Group.
Asia, Australia & Canada
- ------------------------
Wiley's Asian, Australian, and Canadian operations recorded strong results for
the year. Revenues in fiscal year 2003, excluding foreign exchange translation
gains, increased over prior year by 24% for the full year and 3% for the
quarter. Including the effects of foreign exchange translation gains, revenues
increased over prior year by 28% for the year and 9% for the quarter. These
results were driven by the addition of Hungry Minds, as well as the performance
of the P/T and Higher Education programs in Canada, and strong overall growth
throughout Asia. Rapid growth of the Company's subscription and translation
rights businesses continued in Asia, notably in China and India. The fourth
quarter was affected somewhat by the war in Iraq and the SARS outbreak.
Indigenous P/T publishing programs grew in Wiley's Asian, Australian, and
Canadian businesses. Two titles, Privatising China by Carl Walter, the COO of JP
Morgan, and Capitalist China by Jonathan Wotzel, a senior partner at McKinsey
Consulting, reflect the importance of the growing market in China, and also
Wiley's success in partnering with prestigious companies. Two Wiley Australia
titles, Westfield/HIH, The Inside Story of Australia's Biggest Corporate
Collapse and King/Gallipoli, published during the quarter to great acclaim.
Wiley Canada had its best year ever, in part on the strength of the For Dummies
brand.
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, 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, Canada, Europe, Asia, and Australia. The Company is listed on the
New York Stock Exchange under the symbols JWa and JWb. Wiley's Internet site can
be accessed at http://www.wiley.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995
This report 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; and (viii) 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.
Conference Call Instructions
John Wiley & Sons, Inc., will hold a conference call on Wednesday, June 18,
2003, at 11:30 a.m. (EDT) to discuss its financial results for the fourth
quarter and full year of fiscal year 2003. 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:
(800) 289-0437
International callers may participate by dialing: (913) 981-5508
A replay of the call will be available from 2:30 p.m. (EDT) on Wednesday, June
18 through 8:00 p.m. (EDT) on Tuesday, June 24 by dialing (888) 203-1112 or
(719) 457-0820 and entering Passcode 642074.
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.
JOHN WILEY & SONS, INC.
SUMMARY OF OPERATIONS
FOR THE FOURTH QUARTER AND YEAR END
ENDED APRIL 30, 2003 AND 2002
(in thousands, except per share amounts)
Fourth Quarter Year
Ended April 30, Ended April 30,
____________________________________ _____________________________________
2003 2002 % Change 2003 2002 % Change
___________ _________ ________ _________ _________ _________
Revenues $ 203,330 189,170 7% $ 853,971 734,396 16%
Costs and Expenses
Cost of Sales 70,279 65,654 7% 288,925 243,196 19%
Operating and Administrative Expenses 113,840 113,006 1% 432,700 373,463 16%
Amortization of Intangibles (A) 2,361 4,601 -49% 9,620 17,662 -46%
Unusual Item - Relocation Expenses (B) - 12,312 2,465 12,312
___________ _________ __________ _________
Total Costs and Expenses 186,480 195,573 -5% 733,710 646,633 13%
___________ _________ __________ _________
Operating Income 16,850 (6,403) 120,261 87,763 37%
Operating Margin 8.3% -3.4% 14.1% 12.0% 18%
Interest Expense (Income), Net 2,468 1,580 56% 7,702 6,645 16%
___________ _________ __________ _________
Income Before Taxes 14,382 (7,983) 112,559 81,118 39%
Provision (Benefit) for Income Taxes (C) 6,088 (6,492) 25,284 23,802 6%
___________ _________ __________ _________
Net Income $ 8,294 (1,491) $ 87,275 57,316 52%
=========== ========= ========== =========
Income Per Share
Diluted $ 0.13 (0.02) $ 1.38 0.91 52%
Basic $ 0.13 (0.02) $ 1.42 0.94 50%
Reconciliation of Unusual Items:
Net Income Loss as Reported $ 8,294 (1,491) $ 87,275 57,316 52%
Relocation Expense, Net of Tax (B) - 7,683 1,479 7,683
Tax Benefit (C) - - (12,025) -
___________ _________ __________ _________
Net Income Before Unusual Items $ 8,294 6,192 34% $ 76,729 64,999 18%
=========== ========= ========== =========
Income (loss) Per Share-Diluted as Reported $ 0.13 (0.02) $ 1.38 0.91 52%
Relocation Expense, Net of Tax (B) - 0.12 0.02 0.12
Tax Benefit (C) - - (0.19) -
Net Income Per Share-Diluted Before $ 0.13 0.10 36% $ 1.22 1.03 18%
Unusual Items =========== ======== ========== ========
Average Shares
Diluted 62,573 63,722 63,086 63,094
Basic 61,501 61,318 61,504 60,690
(A) At the beginning of fiscal year 2003, the Company adopted Statement of
Financial Accounting Standards No. 142: Goodwill and Other Intangible
Assets. In accordance with FAS No. 142, amortization of goodwill and
indefinite life intangibles is discontinued. Fiscal year 2002 includes
amortization of $2,396 ($1,943 after-tax) for the quarter and $9,553
($7,845 after-tax) for the year, which is no longer recorded.
(B) In the fourth quarter of fiscal year 2002 Wiley finalized its commitment to
relocate the Company's headquarters to Hoboken, N.J. The relocation was
completed in the first quarter of fiscal year 2003. The new facilities will
meet the Company's growth expectations and provides for a more
collaborative and efficient work environment. The relocation was
accomplished at attractive financial terms. Fiscal year 2003 and 2002
include an unusual charge for costs associated with the relocation of
approximately $2,465, or $1,479 after tax and $12,312 or $7,683 after tax
for the respective periods.
(C) Fiscal year 2003 includes a tax benefit of $12,025 equal to $0.19 per
diluted share, relating to a step up in the tax basis of a European
subsidiary's assets.
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE FOURTH QUARTER AND YEAR END
ENDED APRIL 30, 2003 AND 2002
(in thousands, except per share amounts)
Fourth Quarter Year
Ended April 30, Ended April 30,
_________________________________________ ____________________________________
2003 2002 % Change 2003 2002 % Change
__________ ___________ _________ __________ __________ __________
Revenues
____________________________
US Segment
Professional/Trade $ 80,315 76,416 5% $ 321,963 253,072 27%
Scientific, Technical and Medical 43,655 44,289 -1% 168,208 164,930 2%
Higher Education 23,125 22,223 4% 148,220 141,296 5%
__________ _______ _______ _______
Total US 147,095 142,928 3% 638,391 559,298 14%
European Segment 57,719 43,653 32% 210,482 164,104 28%
Asia, Australia & Canada Segment 16,360 15,017 9% 87,314 68,318 28%
Intersegment Sales Eliminations (17,844) (12,428) 44% (82,216) (57,324) 43%
__________ _______ _______ _______
Total Revenues $ 203,330 189,170 7% $ 853,971 734,396 16%
========== ======= ======= =======
Direct Contribution to Profit
_____________________________
US Segment
Professional/Trade $ 21,350 19,491 10% $ 87,354 63,210 38%
Scientific, Technical and Medical 20,032 16,797 19% 77,937 71,085 10%
Higher Education (2,163) (571) 39,938 44,272 -10%
__________ _______ _______ _______
Total US 39,219 35,717 10% 205,229 178,567 15%
European Segment 21,120 15,089 40% 69,191 56,664 22%
Asia, Australia & Canada Segment 1,553 2,726 -43% 16,278 15,199 7%
__________ _______ _______ _______
Total Direct Contribution to Profit (A) 61,892 53,532 16% 290,698 250,430 16%
Shared Services and Administrative Costs
________________________________________
Distribution (11,565) (11,127) 4% (45,680) (37,627) 21%
Information Technology & Development (12,342) (13,236) -7% (42,427) (39,750) 7%
Finance (7,009) (7,916) -11% (27,919) (23,691) 18%
Other Administration (14,126) (15,344) -8% (51,946) (49,287) 5%
__________ _______ _______ _______
Total Shared Services and Admin. Costs (45,042) (47,623) -5% (167,972) (150,355) 12%
Unusual Item - Relocation Expenses (B) - (12,312) (2,465) (12,312)
__________ _______ _______ _______
Operating Income $ 16,850 (6,403) $ 120,261 87,763 37%
========== ======= ======= =======
(A) At the beginning of fiscal year 2003, the Company adopted Statement of
Financial Accounting Standards No. 142: Goodwill and Other Intangible
Assets. In accordance with FAS No. 142, amortization of goodwill and
indefinite life intangibles is discontinued. Fiscal year 2002 includes
amortization of $2,396 ($1,943 after-tax) for the quarter and $9,553
($7,845 after-tax) for the year, which is no longer recorded.
(B) In the fourth quarter of fiscal year 2002 Wiley finalized its commitment to
relocate the Company's headquarters to Hoboken, N.J. The relocation was
completed in the first quarter of fiscal year 2003. The new facilities will
meet the Company's growth expectations and provides for a more
collaborative and efficient work environment. The relocation was
accomplished at attractive financial terms. Fiscal year 2003 and 2002
include an unusual charge for costs associated with the relocation of
approximately $2,465, or $1,479 after tax and $12,312 or $7,683 after tax
for the respective periods.
Certain prior year amounts have been reclassified to conform to the current
year's presentation.
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
April 30, April 30,
2003 2002
_____________ ____________
Current Assets
Cash & cash equivalents $ 33,241 39,705
Accounts receivable 120,057 101,084
Inventories 83,337 69,799
Other current assets 47,209 64,671
________ ________
Total Current Assets 283,844 275,259
Product Development Assets 60,842 63,055
Property and Equipment 114,870 72,127
Goodwill 192,186 189,099
Intangible Assets 280,872 275,295
Other Assets 23,358 21,310
________ ________
Total Assets 955,972 896,145
======== ========
Current Liabilities
Notes Payable & Current portion of long-term debt 35,000 30,000
Accounts and royalties payable 71,296 67,516
Deferred subscription revenues 131,392 125,793
Accrued income taxes 7,953 9,769
Other accrued liabilities 77,624 87,315
________ ________
Total Current Liabilities 323,265 320,393
Long-Term Debt 200,000 235,000
Accrued Pension liability 54,909 27,184
Other Long-Term Liabilities 28,190 22,643
Deferred Income Taxes 5,604 14,275
Shareholders' Equity 344,004 276,650
________ ________
Total Liabilities & Shareholders' Equity $ 955,972 896,145
======== ========
CONDENSED STATEMENTS OF CASH FLOWS
Year
Ended April 30,
________________________
2003 2002
________ _________
<s> <c> <c>
Operating Activities
Net income $ 87,275 57,316
Amortization of intangibles 9,620 17,662
Amortization of composition costs 29,923 25,653
Depreciation of property and equipment 23,420 16,007
Write-off of Investment - 4,989
Unusual Item - Relocation Related Expenses - 12,312
Other non-cash items 52,173 23,649
Net change in operating assets and liabilities (33,283) (4,855)
Payment of acquisition related liabilities - (12,367)
_______ _______
Cash Provided By (Used for) Operating Activities 169,128 140,366
_______ _______
Investing Activities
Additions to product development assets (51,835) (48,039)
Additions to property and equipment (63,221) (33,643)
Acquisition of publishing assets, net of cash acquired (10,500) (232,393)
_________ ________
Cash Used for Investing Activities (125,556) (314,075)
_________ ________
Financing Activities
Borrowings of long-term debt - 200,000
Repayment of long-term debt (30,000) (30,000)
Cash dividends (12,344) (11,015)
Purchase of treasury shares (11,661) (1,880)
Proceeds from issuance of stock on option exercises & other 1,500 2,813
________ _______
Cash Provided by (Used for) Financing Activities (52,505) 159,918
________ _______
Effects of Exchange Rate Changes on Cash 2,469 549
________ _______
Decrease in Cash and Cash Equivalents for Period $ (6,464) (13,242)
======== =======