Exhibit No. Description
99.1 Press Release dated March 2, 2004 titled "John Wiley & Sons,
Inc. Reports Solid Revenue and EPS Growth for the Third Quarter"
(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 March 2, 2004, John Wiley & Sons Inc., a New York
corporation (the "Company"), issued a press release announcing
the Company's financial results for the third quarter and first
nine months of fiscal year 2004. A copy of the Company press
release is attached hereto as Exhibit 99.1 and incorporated
Ellis E. Cousens
Executive Vice President and
Chief Financial and Operations Officer
(201) 748-6534
John Wiley & Sons, Inc. Reports
Solid Revenue and EPS Growth for the Third Quarter
--------------------------------------------------
Hoboken, N.J. March 2, 2004 - John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb)
announced today that revenue for the third quarter increased 10%, or 5%
excluding foreign exchange translation gains, to $242.4 million from $221.2
million in the prior year. Earnings per diluted share of $0.45 and net income of
$28.3 million for the third quarter of fiscal year 2004 increased over prior
year by 16% and 17%, respectively, excluding a net tax benefit recognized in the
current period. Earnings per diluted share for the third quarter of fiscal year
2004, including the net tax benefit, was $0.50 as compared to $0.39 in the prior
year period.
Third quarter results were driven by Scientific, Technical and Medical journals,
Professional/Trade books, and Higher Education textbooks and educational
materials. Net income and earnings per share for the third quarter reflected the
positive effects of operations, the resolution of certain tax matters and
foreign exchange.
For the first nine months of fiscal year 2004, revenue advanced 6%, or 3%
excluding foreign currency translation gains, to $690.9 million from $650.6
million in the prior year. Earnings per diluted share and net income for the
nine-month period increased 11%, excluding charges reported in the prior year
related to the Company's relocation to Hoboken, New Jersey and certain tax
benefits. Including these items, earnings per diluted share for the nine-month
period of fiscal year 2004 and 2003 was $1.25.
"Wiley's third quarter results were strong across our core businesses.
Professional/Trade experienced a good holiday season. Scientific, Technical and
Medical generated solid growth in our journal business globally and reported
healthy renewals of Enhanced Access Licenses for Wiley InterScience. Our Higher
Education business outpaced the industry in the third quarter and for the
nine-months," said William J. Pesce, President and CEO.
He concluded, "Based on year-to-date results and expectations for the fourth
quarter, which is seasonally Wiley's least significant quarter in financial
terms, we anticipate full-year revenue growth near the high end of our 4-6%
guidance and EPS growth at the high end of our mid to high single digits
guidance, excluding the unusual items reported in fiscal year 2003 and the tax
benefit recorded in this year's third quarter."
Professional/Trade (P/T)
- -----------------------
Wiley's P/T business grew 3% during the third quarter, with the business,
architecture, culinary, education, and consumer programs exhibiting strength
throughout the holiday season. Year-to-date revenue was up 2% over the prior
year.
P/T's business program rebounded nicely in a slowly improving market, building
momentum throughout the quarter with solid performances from a wide range of
titles. Several Wiley business titles appeared on major bestseller lists,
including J.K. Lasser's Income Tax 2004; Bonner/Financial Reckoning Day (#1 on
The New York Times Hardcover Business Bestseller List in December); Scheinfeld
and Allen/The 11th Element; Lencioni/Five Dysfunctions of a Team;
George/Authentic Leadership (on The Economist "Best Books of 2003" list);
Gitomer/The Sales Bible; and Kouzes and Posner/The Leadership Challenge.
Notable recent publications include How to Make Money in Stocks Desk Diary 2004
by Investors Business Daily founder William O'Neil; a new version of the widely
acclaimed training and assessment tool, Leadership Practices Inventory Online;
and four titles from Wiley's relationship with Morningstar, the renowned
provider of stock and mutual fund news and analyses: The Morningstar Guide to
Mutual Funds: 5-Star Strategies for Success; The Five Rules for Successful Stock
Investing: Morningstar's Guide to Building Wealth and Winning in the Market;
Morningstar Funds 500: 2004; and Morningstar Stocks 500: 2004.
In December, the Company signed an agreement with Mergent, Inc. (formerly
Moody's financial services division) to publish Mergent's Dividend Achievers,
Handbook of Common Stocks, and Handbook of NASDAQ Stocks. Although market
conditions continue to be challenging, Wiley's computer books program gained
some momentum during the quarter. Key titles that published recently include
Collier/eBay For Dummies; LeVitus/Mac OS Panther For Dummies, and
MaranGraphics/Teach Yourself VISUALLY(TM) Mac OS Panther v.10.3.
Frommer's, Wiley's market-leading travel program, experienced significant
reordering by major U.S. accounts and strong sales of European travel titles.
Frommers.com hit a record high of 16 million page views in January. The
company's CliffsNotes and For Dummies lines and the culinary category also
exhibited strength.
P/T capitalized on the success of The Lord of the Rings by promoting The Origins
of Tolkien's Middle-earth For Dummies at movie theaters in targeted cities. In
addition, P/T benefited from the publication of its new biography, Ravina/The
Last Samurai, which coincided with the release of the movie with the same title.
Alan Dershowitz's, The Case for Israel, reached the top of The New York Times
Expanded Hardcover Bestseller list. All the Shah's Men by Stephen Kinzer was the
History selection on The Economist "Best Books of 2003" list.
An unprecedented number of the Company's cookbooks were honored in holiday
round-ups of the best cookbooks of 2003, notably Wolfert/Slow Mediterranean
Kitchen; Delouvrier/Mastering Simplicity; and Revsin/Come for Dinner. The
paperback edition of Eades/30 Day Low Carb Diet Solution released successfully
during the quarter, as did the third edition of National Restaurant Association
Educational Foundation's flagship books on food sanitation, ServSafe. Civitello/
Cuisine and Culture was awarded the Gourmand World Cookbook Award and was also
named as one of the top three culinary books by Sante magazine.
At the Association of American Publishers - Professional and Scholarly
Publishing Annual Awards program, McGowan and Kruse/Interior Graphic Standards
won the Architecture & Urban Studies category and Weiner/Handbook of Psychology
won the Multi-Volume Reference/Humanities category.
During the quarter, the Company announced a partnership with VantageMed
Corporation, a leading provider of healthcare information systems, to jointly
develop a software interface that will allow Therascribe 4.0 and VantageMed's
Therapist Helper to work together as a seamless practice management solution for
mental health providers.
Scientific, Technical, and Medical (STM)
- ----------------------------------------
Wiley's U.S. STM revenue advanced 7% during the third quarter. Contributing to
this growth were new society journals (such as Hepatology and Liver
Transplantation), the Polymer Backfile Collection, ArticleSelect, and online
books in electronics and electrical engineering. Revenue for the first nine
months increased 2%, reflecting, in part, the adverse effect of the Rowecom
bankruptcy and lower-than-anticipated advertising revenue. Globally, STM journal
revenue increased approximately 13% in the quarter and 8% for the nine months.
The Wiley InterScience annual license renewal process is well underway and
proceeding as anticipated. During the third quarter, two important license
renewals were completed with the California Digital Library and NESLI (UK
Academic Consortium). Several new licenses were also signed, including the
Universidad Nacional Autonoma de Mexico, Alerta al Conociemeiento Consortium in
Chile, University of South Florida, University of Kansas, University of Tampa,
Procter & Gamble, BUGALICIA (Galician Academic Consortium), University of
Innsbruck, Halle University, Technical University of Berlin, Korea Institute of
Science & Technology, and the National Defense University in Taiwan.
Wiley's STM digital access business, which utilizes the Wiley InterScience
platform, continued to add content and functionality for customers to meet their
information needs. Wiley InterScience customer usage statistics are compliant
with COUNTER (Continuing Online Usage of Networked Electronic
Resources--www.projectcounter.org), an international initiative designed to
serve librarians, publishers, and information intermediaries by facilitating the
recording and exchange of online usage statistics. By adopting this new industry
standard, Wiley InterScience will enable customers to make direct comparison
between the usage of its journals and those of other publishers.
Wiley InterScience extended its Pay Per View and Article Select options to
include access to its extensive range of online reference works. Previously
available only for access to online books and journal content, these services
allow librarians, scientists, and other researchers to obtain individual
articles and chapters from publications for which they do not hold
subscriptions. Providing a wide range of access options is part of the company's
strategy to offer customers greater flexibility and choice.
Wiley continues to extend its publishing services to learned societies and their
members by forming new partnerships with numerous prominent national, regional,
and international societies. The Company formed a publishing partnership with
the Society of Plastics Engineers (SPE) to provide all publishing services for
its technical journals -Polymer Engineering & Science, Polymer Composites, and
Journal of Vinyl & Additive Technology. During the quarter, the Company also
renewed its agreement with the Society for Bioelectromagnetics to publish its
journal Bioelectromagnetics.
Although the STM book market continues to be soft, there were some bright spots.
Sales of online major reference works and OnlineBooks were strong. Early in the
fourth quarter, Wiley signed an agreement to distribute Merck's four
professional manuals in the U.S. - The Merck Manual, The Merck Veterinary
Manual, The Merck Manual of Geriatrics, and The Merck Index. Widely considered
to be among the most trusted resources for medical and scientific information,
these highly regarded titles will be excellent additions to Wiley's
comprehensive offerings.
At the Association of American Publishers - Professional and Scholarly
Publishing Annual Awards program, four STM publications were recognized,
including the Potter and Colman/Handbook of Weather, Climate, and Water (Geology
and Earth Science category); Huurdeman/The Worldwide History of
Telecommunications (History of Science category); Horvath/Encyclopedia of
Catalysis (Multi-Volume Reference/Sciences category); and Organic Synthesis
(Electronic Product/Science category).
In January, the Wiley Foundation announced that the third annual Wiley Prize in
the Biomedical Sciences was awarded to C. David Allis, Ph.D., the newly
appointed Professor, Laboratory of Chromatin Biology and Epigenetics at the
Rockefeller University in New York. Dr. Allis was recognized for his significant
discovery on gene activity. His work has already led to advances in the
treatment of leukemia.
Higher Education
- ----------------
Growth in Wiley's Higher Education business was 7% for the third quarter and 6%
for the nine months, outpacing the industry for both periods. Programs in
business, the sciences and social sciences drove these results. Sales of P/T and
STM publications into the higher education market exceeded expectations, as
well.
Top selling titles during the quarter included Tortora/Anatomy and Physiology;
Kieso/Intermediate Accounting; Weygandt/Principles of Financial Accounting;
Solomons/Organic Chemistry; Huffman/Psychology; DeBlij/Regions and
Halliday/Fundamentals of Physics, which published its 7th edition during the
quarter.
During the quarter, Wiley signed a strategically important contract with Paul M.
Romer of Stanford University's Graduate School of Business. Dr. Romer is one of
the nation's leading economists and a primary developer of New Growth Theory, a
body of work that provides a fresh foundation for thinking about wealth
creation. He was the recipient of Stanford's Distinguished Teaching Award in
1999. He will author a new textbook in intermediate macroeconomics, which will
serve as a catalyst for growth in Higher Education's economics program. As
important as the textbook, Wiley also signed an agreement with Aplia, the
educational software company that Dr. Romer founded. Aplia uses Web technology
to create educational tools for students that will afford them the opportunity
to increase productivity and success. Intermediate Macroeconomics will be the
first Wiley offering to be integrated with Aplia courseware.
At the end of the quarter, Higher Education announced a collaborative agreement
with the Society of Manufacturing Engineers (SME), a leading professional
society supporting manufacturing education, to develop content that brings real
world manufacturing into the academic classroom. Through this exclusive
agreement, Wiley and SME have adapted material from the highly acclaimed SME
Fundamental Manufacturing Processes video series and are distributing it on DVD
with Wiley engineering texts.
Europe
- ------
Third quarter revenue for Wiley's European operations was up 18% over prior
year, or 9% excluding foreign currency translation gains. For the first nine
months of the year, Wiley Europe's revenue was up 11%, or 3% excluding foreign
currency translation gains. Strong performance from Wiley's worldwide journals
continued to mitigate the combined effects of the sluggish book and advertising
markets.
In spite of the impact of the Rowecom bankruptcy, Wiley Europe's STM journals
program exhibited strong growth throughout the U.K. and Europe. Wiley-VCH
reported solid performances from Angewandte Chemie, Helvetica Chimica Acta, the
Macro journals and the Advanced Materials and Advanced Functional Materials
journals. In addition, journal revenue began to benefit from the contribution of
new businesses such as the Cochrane Library database, the British Journal of
Surgery, and the journal of Ultrasound in Obstetrics and Gynecology.
In addition to the aforementioned new Wiley InterScience licenses, during the
quarter Wiley Europe signed two major Enhanced Access Licenses, one with an
Italian Consortium and the other with the Friedrich-Althoff Konsortium in
Germany.
Building on the success of the release of The Polymer Backfile Collection, Wiley
Europe released the Angewandte Chemie Backfile Collection late in the third
quarter. The early market response is very encouraging.
The STM and P/T book programs showed good performance against prior year, driven
primarily by improvements in the U.K., Benelux, Eastern Europe, and Greece and
through online booksellers. The For Dummies list in the U.K. got off to a good
start with the successful release of British History For Dummies and CVs For
Dummies. England's success as Rugby World Cup winner fueled sales of Rugby For
Dummies. For Dummies titles developed in the U.S., especially consumer
technology titles such as Windows XP For Dummies, Internet For Dummies, and PC
For Dummies, also sold well.
Wiley Europe experienced a pick up in sales of STM books, with the release of
such titles as Alberts/Moleckularbiologie der Zelle and Brown/ Encyclopedia of
Optics, as well as a number of major reference works, including Schreiber and
Harvard/Handbook of Clinical Biology and Handbook of RNA Biochemistry. The third
quarter saw a number of key adoptions of higher education learning materials in
the UK and continental Europe. Tortora/Anatomy and Physiology was the
top-selling title in these regions during this period.
Asia, Australia, and Canada
- ---------------------------
Wiley's revenue in Asia, Australia, and Canada advanced 16% in the third quarter
and 14% for the first nine months. Excluding the benefit of foreign currency
translation, revenue was essentially flat for the quarter and year-to-date
period. Solid indigenous publishing results in Australia were offset by a soft
holiday season for P/T in Canada and a weak retail market in Asia.
Sales in India continued to perform above expectations, as reflected in the
year-on-year revenue growth of 24%. Several important Wiley InterScience
licenses were signed in India during the quarter. Wiley Asia formed an alliance
with Citibank to develop personal finance books for Asia. The first title,
Growing Your Money, will publish next year with Citibank already committed to
purchase a substantial number of copies. Revenue from Wiley Asia's translation
business continued to grow at a rapid rate.
In Australia, Higher Education, School, and P/T performed well during the third
quarter. In November, Wiley Australia again won Tertiary Publisher of the Year,
a prestigious award given by the Australian Campus Booksellers Association each
year for excellence in service to the higher education market. Wiley has won
this award consistently during the past several years. In addition, Wiley
Australia was awarded the Employer of Choice citation for the third consecutive
year.
Wiley Canada's performance during the quarter was somewhat disappointing, as
growth in Higher Education could not compensate for slow P/T sales. There was
good news in the quarter, however, including robust sales of Dreyden/The Game,
20th Anniversary Edition and solid backlist sales of business and international
titles.
Special Items
During the second quarter of fiscal year 2003, 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 the fair value of
the business at the date of merger. Under U.S. accounting principles, the tax
benefit attributable to the increase in tax basis was immediately included in
income, although the cash benefit of this change will be recognized pro-rata
over a 15-year period.
Wiley completed the relocation of the Company's headquarters to Hoboken, New
Jersey in the first quarter of fiscal year 2003 and reported an unusual charge
for costs associated with the relocation of approximately $1.5 million
after-tax, or $.02 cents per share.
"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 stimates 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
John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb), will hold a conference call on
March 2, at 10:30 a.m. (ET) to discuss its financial results for the third
quarter of fiscal year 2004. 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) 500-3792
International callers may participate by dialing: (719) 457-2734
A replay of the call will be available from 1:30 p.m. (ET) on Tuesday, March 2
through midnight (ET) on Monday, March 8 by dialing (888) 203-1112 or (719)
457-0820 and entering Passcode 730504.
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.
About Wiley
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.
###
JOHN WILEY & SONS, INC.
SUMMARY OF OPERATIONS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2004 AND 2003
(in thousands, except per share amounts)
Third Quarter Ended Nine Months Ended
January 31, January 31,
______________________________________ ________________________________
2004 2003 % Change 2004 2003 % Change
____________ __________ _________ _______ _________ ________
Revenue $ 242,357 221,196 10% 690,897 650,641 6%
Costs and Expenses
Cost of Sales 81,979 72,674 13% 232,270 218,646 6%
Operating and Administrative Expenses 114,011 109,122 4% 337,350 318,860 6%
Amortization of Intangibles 2,517 2,548 -1% 7,382 7,259 2%
Unusual Item - Relocation Expenses (A) - - - 2,465
_________ _________ ________ ________
Total Costs and Expenses 198,507 184,344 8% 577,002 547,230 5%
Operating Income 43,850 36,852 19% 113,895 103,411 10%
Operating Margin 18.1% 16.7% 16.5% 15.9%
Interest Expense and Other, Net 1,220 1,373 3,092 5,234
_________ _________ ________ ________
Income Before Taxes 42,630 35,479 20% 110,803 98,177 13%
Provision for Income Taxes (B) 11,286 11,259 32,011 19,196
_________ _________ ________ ________
Net Income $ 31,344 24,220 29% 78,792 78,981 0%
========= ========= ======== ========
Income Per Share
Diluted $ 0.50 0.39 28% 1.25 1.25 0%
Basic $ 0.51 0.39 1.27 1.28
Reconciliation of Non-GAAP Pro Forma Financial Disclosure
- ---------------------------------------------------------
Net Income as Reported $ 31,344 24,220 78,792 78,981
Relocation Expense, Net of Tax (A) - - - 1,479
Tax Benefit (B) (3,019) - (3,019) (12,025)
_________ _________ ________ ________
Pro Forma Net Income $ 28,325 24,220 17% 75,773 68,435 11%
========= ========= ======== ========
Income Per Share-Diluted as Reported $ 0.50 0.39 1.25 1.25
Relocation Expense, Net of Tax (A) - - - 0.02
Tax Benefit (B) (0.05) - (0.05) (0.19)
Pro Forma Income Per Share -Diluted $ 0.45 0.39 16% 1.20 1.08 11%
========= ========= ======== ========
Average Shares
Diluted 63,086 62,575 63,069 63,202
Basic 61,823 61,447 61,800 61,505
(A) The Company completed the relocation of its headquarters to Hoboken, N.J.
in the first quarter of fiscal year 2003. An unusual charge for costs
associated with the relocation of approximately $1.5 million after tax, or
$.02 per share, was reported.
(B) Fiscal year 2003 includes a tax benefit of $12.0 million equal to $0.19 per
diluted share, relating to the step up in the tax basis of a European
subsidiary's assets. The third quarter of fiscal year 2004 includes a net
tax benefit of $3.0 million or $0.05 per diluted share related to the
resolution of certain state and federal tax matters and an adjustment to
accrued foreign taxes.
Note: Management believes the above non-GAAP financial measures, which exclude
the relocation charge and the tax benefits, provide a meaningful comparison of
the Company's year-over-year results. These measures improve investors' ability
to understand the Company's performance and future expectations. As required by
the SEC, the Company provides the above reconciliation.
JOHN WILEY & SONS, INC.
SEGMENT RESULTS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2004 AND 2003
(in thousands, except per share amounts)
Third Quarter Ended Nine Months Ended
January 31, January 31,
------------------------------------- -------------------------------------
2004 2003 % Change 2004 2003 % Change
--------- -------- -------- -------- -------- --------
Revenue
- --------------------------------------
US Segment
Professional/Trade $ 84,607 81,808 3% 247,282 241,648 2%
Scientific, Technical and Medical 42,484 39,680 7% 126,885 124,553 2%
Higher Education 46,822 43,605 7% 132,264 125,095 6%
------- ------- ------- -------
Total US 173,913 165,093 5% 506,431 491,296 3%
European Segment 58,865 49,794 18% 169,466 152,763 11%
Asia, Australia & Canada Segment 32,276 27,859 16% 80,749 70,954 14%
Intersegment Sales Eliminations (22,697) (21,550) 5% (65,749) (64,372) 2%
------- ------- ------- -------
Total Revenue $ 242,357 221,196 10% 690,897 650,641 6%
======= ======= ======= =======
Direct Contribution to Profit
- ---------------------------------------
US Segment
Professional/Trade $ 23,372 24,220 -4% 66,942 66,004 1%
Scientific, Technical and Medical 19,633 17,188 14% 60,852 57,905 5%
Higher Education 17,835 15,318 16% 46,454 42,101 10%
------- ------- ------- -------
Total US 60,840 56,726 7% 174,248 166,010 5%
European Segment 18,078 14,996 21% 52,730 48,071 10%
Asia, Australia & Canada Segment 10,420 7,063 48% 20,043 14,725 36%
------- ------- ------- -------
Total Direct Contribution to Profit 89,338 78,785 13% 247,021 228,806 8%
Shared Services and Administrative Costs
- -------------------------------------------
Distribution (11,578) (11,651) -1% (34,430) (34,115) 1%
Information Technology & Development (12,259) (10,898) 12% (36,488) (30,085) 21%
Finance (6,480) (6,799) -5% (20,720) (20,910) -1%
Other Administration (15,171) (12,585) 21% (41,488) (37,820) 10%
------- ------- ------- -------
Total Shared Services and Admin. Costs (45,488) (41,933) 8% (133,126) (122,930) 8%
Unusual Item - Relocation Expenses (A) - - - (2,465)
------- ------- ------- -------
Operating Income $ 43,850 36,852 19% 113,895 103,411 10%
======= ======= ======= =======
(A) The Company completed the relocation of its headquarters to Hoboken, N.J.
in the first quarter of fiscal year 2003. An unusual charge for costs
associated with the relocation of approximately $1.5 million after tax, or
$.02 per share, was reported.
JOHN WILEY & SONS, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(in thousands)
January 31,
------------------------ April 30,
2004 2003 2003
----------- ---------- ---------
Current Assets
Cash & cash equivalents $ 93,051 31,941 33,241
Accounts receivable 153,818 135,816 110,038
Inventories 81,288 80,545 83,337
Deferred income tax benefit 25,971 33,331 26,028
Other current assets 9,753 14,804 21,181
------- ------- -------
Total Current Assets 363,881 296,437 273,825
Product Development Assets 60,115 62,107 60,842
Property and Equipment 119,313 109,756 114,870
Goodwill 195,705 193,392 192,186
Intangible Assets 280,714 280,142 280,872
Deferred Income Taxes 3,552 11,410 2,800
Other Assets 22,259 20,459 20,558
------- ------- -------
Total Assets 1,045,539 973,703 945,953
========= ======= =======
Current Liabilities
Notes Payable & Current portion of long-term debt - 35,000 35,000
Accounts and royalties payable 100,397 99,106 71,296
Deferred subscription revenues 138,170 126,642 121,373
Accrued income taxes 20,120 21,753 7,953
Accrued pension liability 12,780 1,788 8,271
Other accrued liabilities 58,918 62,395 69,353
------- ------- -------
Total Current Liabilities 330,385 346,684 313,246
Long-Term Debt 200,000 200,000 200,000
Accrued Pension Liability 51,444 31,488 54,909
Other Long-Term Liabilities 30,631 28,503 28,190
Deferred Income Taxes 6,085 15,004 5,604
Shareholders' Equity 426,994 352,024 344,004
------- ------- -------
Total Liabilities & Shareholders' Equity $ 1,045,539 973,703 945,953
========= ======= =======
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
January 31,
----------------------
2004 2003
--------- --------
Operating Activities
Net income $ 78,792 78,981
Amortization of intangibles 7,382 7,259
Amortization of composition costs 23,386 22,019
Depreciation of property and equipment 21,072 17,903
Other non-cash items 45,552 27,906
Change in deferred subscription revenue 12,146 2,413
Net change in operating assets and liabilities (14,345) (18,207)
------- --------
Cash Provided By Operating Activities 173,985 138,274
Investing Activities
Additions to product development assets (41,366) (36,452)
Additions to property and equipment (20,852) (51,476)
Acquisition of publishing assets, net of cash acquired (3,066) (7,835)
------- --------
Cash Used for Investing Activities (65,284) (95,763)
Financing Activities
Repayment of long-term debt (35,000) (30,000)
Purchase of treasury shares (7,013) (10,380)
Cash dividends (12,126) (9,259)
Proceeds from exercise of stock options 4,012 1,990
------- --------
Cash Used for Financing Activities (50,127) (47,649)
Effects of Exchange Rate Changes on Cash 1,236 (2,626)
------- --------
Increase (Decrease) in Cash and Cash Equivalents for Period $ 59,810 (7,764)
======= ========
Note: Subscriber receivables for January 31, 2004, January 31, 2003 and April
30, 2003 of $24.6 million; $21.9 million; and $10.0 million, respectively, are
netted against Deferred Subscription Revenue in the Statement of Changes in
Financial Position above. Prior period amounts have been reclassified to conform
to the current period presentation.