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Wiley John & Sons, Inc. – ‘8-K’ for 1/31/05

On: Thursday, 3/3/05, at 4:34pm ET · For: 1/31/05 · Accession #: 107140-5-12 · File #: 1-11507

  As Of                Filer                Filing    For·On·As Docs:Size

 3/03/05  Wiley John & Sons, Inc.           8-K:7       1/31/05    1:31K

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Fy05 Third Quarter Earnings Release                   11     53K 

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Exhibit No.    Description                                                      

       99.1    Press  release  dated March 4, 2005 titled  "John Wiley and Sons,
               Inc. Reports Operating Income Growth of 15% and Revenue Growth of
               7% in 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 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 March 4, 2005, John Wiley & Sons Inc., a New York  corporation
               (the "Company"),  issued a press release announcing the Company's
               financial  results for the third  quarter of fiscal year 2005.  A
               copy of the Company press  release is attached  hereto as Exhibit
99.1 and incorporated.                            

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Ellis E. Cousens                                                                
Executive Vice President, Chief Financial & Operations Officer                  
(201) 748-6534                                                                  

 John Wiley & Sons, Inc. Reports
Operating Income Growth of 15% and
 Revenue Growth of 7% in the Third Quarter

Hoboken,  N.J.,  March 4, 2005--John  Wiley & Sons, Inc.  (NYSE:JWa)  (NYSE:JWb)
announced today that third quarter revenue increased 7%, or 5% excluding foreign
currency  gains,  to $258.4  million  from  $242.4  million  in the prior  year.
Operating  income  advanced 15% to $50.4 million from $43.9 million in the prior
year.  Earnings per diluted share for the third  quarter  increased 18% to $0.53
from $0.45  excluding a net tax benefit  reported in last year's third  quarter.
Excluding the aforementioned tax benefit and foreign currency gains the increase
was 13%.                                                                        

For the first nine months of fiscal year 2005, Wiley's revenue of $732.4 million
advanced 6%, or 4% excluding  the effect of foreign  currency  gains.  Operating
income for the  nine-month  period of $121.3  million  increased  7% from $113.9
million in the prior year.  Earnings per diluted share for the first nine months
increased 6% from $1.20 to $1.27 excluding the net tax benefit  reported in last
year's  third  quarter.  Excluding  the  aforementioned  tax benefit and foreign
currency gains the increase was 3%.                                             

"Wiley's third quarter results were driven primarily by the solid performance of
our   Professional/Trade   business  and  strong   year-on-year  growth  in  our
international  companies.  The  continued  strength  of our  global  Scientific,
Technical  and  Medical  business  also  contributed  to the  growth.  The  only
disappointment  in the  quarter  was the  performance  of our  Higher  Education
business,  which was below expectations due to challenging  market  conditions,"
said William J. Pesce, President & Chief Executive Officer.                     

Mr. Pesce  concluded,  "Based on year-to-date  results,  leading  indicators and
market  conditions,  we anticipate  full-year growth in revenue and earnings per
diluted  share  of  4-6% in  fiscal  year  2005.  Excluding  estimated  expenses
associated with Sarbanes-Oxley  compliance of $0.03 per diluted share, estimated
full-year growth would be 6-8%."                                                

During the third quarter of this fiscal year, the Company acquired 444,300 Class
A common shares under an authorized stock buyback program at an average price of
$33.22 per share.  On February 4th, Wiley  repurchased one million shares of its
Class A common shares from several  entities  associated  with the Bass group of
Fort Worth, Texas at a price of $32.45 per share.                               

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In January,  FORTUNE  magazine named Wiley one of the 100 Best Companies to Work
For. Wiley was the only publishing  company selected and one of two companies in
New Jersey that made the list. As part of its evaluation of Wiley's  culture and
practices,  FORTUNE randomly surveyed 350 of our colleagues.  In a press release
announcing Wiley's  selection,  Mr. Pesce stated, "We are honored that Wiley has
been selected by FORTUNE  magazine as one of the 100 Best Companies to Work For.
Wiley is a very  special  place -- a  closely  knit  global  community  in which
talent, integrity, and commitment are valued as critical to our success."       

Segment Highlights                                                              

Professional/Trade (P/T)                                                        
------------------------                                                        
U.S. P/T revenue of $92 million for the third quarter advanced 9% from the prior
year,  led by strong  sales of consumer  For  Dummies  books,  the  professional
culinary program,  Webster's New World Dictionary and improved sales of high-end
technology titles. Revenue generated through brand licensing, the sale of rights
and online advertising,  combined with improved sales returns,  also contributed
to the strong performance in the quarter.  Year-to-date  revenue of $257 million
was up 4% over the prior year. Direct contribution to profit increased by 32% in
the  quarter  and 9% for  the  nine  months.  Gross  margin  improvement,  lower
provisions as a result of improved  inventory  management,  lower author royalty
advance provisions and prudent expense management contributed to the increase in
direct contribution to profit.                                                  

Five P/T titles were featured on major bestseller  lists including,  J.K. Lasser
Tax Guide 2005  (including  the #1 spot on the New York Times  How-To  Paperback
Bestsellers  list);  Winget/Shut Up, Stop Whining and Get a Life;  Lencioni/Five
Dysfunctions of a Team;  Scott/Mentored by a Millionaire;  and Harkins/Everybody
Wins.                                                                           

Other titles that are  performing  well include  Harroch and  Krieger/Poker  For
Dummies,  Tyson/Taxes  2005 For Dummies  and  Rathbone/Windows  XP For  Dummies.
Marks/Olive Trees received a merit award from the New York Bookbinder's Guild.  

In January,  a redesigned  Frommers.com  site was launched that includes several
new features, improved search functionality and standard ad sizes to accommodate
advertiser demand. These improvements were well received, as evidenced by record
highs in monthly traffic and book sales.                                        

At the end of the quarter,  the Company  launched Wiley CPA e-Prep, a self-study
tool for  students  preparing  for the new  computerized  CPA exam,  created  by
prominent  financial and accounting  educator and Wiley author, Ray Whittington,
in partnership with Acadient, a developer of online educational technology. This
comprehensive product includes audio lectures and slides.  Students can use this
tool to identify their own strengths and weaknesses and customize practice exams
accordingly.                                                                    

The Global  Executive  Leadership  Inventory  published during the quarter under
Wiley's  Pfeiffer  imprint.   This  online  360  degree  leadership   assessment

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instrument,  created by the  internationally  renowned  business scholar Manfred
Kets de Vries,  is designed  for  coaches,  human  resources  practitioners  and
training  professionals.  The product,  which also provides scoring software for
non-online users, was well received in the market.                              

Scientific, Technical, and Medical (STM)                                        
----------------------------------------                                        
U.S.  STM revenue of $43 million  grew over prior year by 2% for the quarter and
7% for the nine-month  period.  The STM book program  continues to perform well,
maintaining the momentum that began in the fourth quarter of last year.  Journal
performance,  especially new society publications and non-subscription  revenue,
such as off-prints,  backfiles and advertising  sales,  also  contributed to the
year-on-year  growth.  Direct  contribution  to  profit  decreased  by 5% in the
quarter,  but was up 2% for the nine months.  STM's gross margin was unfavorably
affected by the increase in society journals and product mix. Operating expenses
increased at a greater rate than revenue,  reflecting  the effect of investments
in Wiley  InterScience,  society  journals and the book program.  Globally,  STM
revenue  increased  approximately  8% for the third quarter and 10% for the nine
months, reflecting the combined effect of robust journal and book sales.        

Visits  to  Wiley  InterScience  exceeded  10  million  in  the  third  quarter,
representing  9% growth over the previous  quarter.  Customers  continue to take
advantage of Wiley  InterScience's wide range of access options, as reflected in
the positive trend in usage. Google continued to be a key driver of traffic.    

Late in the quarter,  the National  Institutes  of Health  (NIH)  announced  its
policy  with  regard  to  public  access  to  journal  articles  that  report on
NIH-funded  research.  The policy  requests,  but does not  require,  authors to
deposit  into  PubMedCentral,  which is part of the NIH's  National  Library  of
Medicine,  manuscripts  of articles  reporting on NIH-funded  research that have
been  peer  reviewed  and  accepted  for  publication.  NIH will  release  these
manuscripts  within  twelve  months or less after  publication  in the  journal.
Authors will  determine  the timing of the release.  We are pleased that the NIH
listened and responded to the concerns of publishers and the research community.
Wiley will  continue  to work  closely  with our  society  partners  and journal
editors to provide excellent service to our authors and readers. We look forward
to working  with the NIH and others to monitor the  execution  and impact of the
new policy and to contribute positively to its development.                     

Wiley believes that the research community and  society-at-large are best served
by  the  widest  possible   dissemination   of  published   health  and  medical
information.  During the past several  years,  the Company has made  significant
investments  in  Wiley  InterScience  and new  services,  such as  Pay-Per-View,
Article  Select and the  digitization  of backfiles to achieve this goal. We are
also  enhancing  the  discoverability  of our content  through a number of other
initiatives,  including  CrossRef  Search (in conjunction  with Google),  Google
Scholar and Google Print.                                                       

In addition, the Company has been working closely with organizations,  including
the American  Cancer  Society,  American  Diabetes  Association,  American Heart
Association,  CrossRef  and twenty  other  publishers  to develop  patientINFORM

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(http://www.patientinform.org),  a free  online  service  that will  disseminate
original  medical  research  directly to  patients  and their  caregivers.  This
important  initiative  was  announced  in  December  and will be launched in the
spring.  In the past few years,  Wiley and other publishers have participated in
the Health InterNetwork Access to Research Initiative (HINARI), sponsored by the
World  Health  Organization,   and  in  Access  to  Global  Online  Research  in
Agriculture (AGORA),  sponsored by the Food and Agriculture Organization.  These
two projects bring open or low-cost  access to leading STM journals to end-users
in  developing  nations.  As a result of all of these  efforts,  more content is
accessible  to more people in more ways than ever before in the long  history of
scientific, technical and medical publishing.                                   

In January, the American Society of Cytopathology adopted the Wiley InterScience
journal, Cancer Cytopathology,  as its official journal,  thereby bringing 1,500
members to the  bimonthly  journal's  subscription  rolls.  Wiley also  signed a
multi-year  agreement  with the  Orthopaedic  Research  Society to  publish  the
Journal of Orthopaedic Research, beginning with the January 2006 issue.         

A new,  customer-driven  pricing  model  for  Wiley  InterScience  Online  Books
launched  in  January,  delivering  flexible  and  convenient  sales  options to
customers. Customers are now able to license nearly all new STM book titles, not
only as one-time purchases, but also by annual subscriptions,  as they have been
able to do for  over a year  for our  online  major  reference  works.  Enhanced
functionality has also been added to the service.  With the addition of 400 more
titles, Online Books now offers nearly 1,200 titles.                            

Higher Education                                                                
----------------                                                                
U.S. Higher  Education  revenue of $45 million  decreased by 3% during the third
quarter,  bringing  year-to-date  revenue of $131  million to within 1% of prior
year. The  disappointing  results reflect the combined effect of increased price
resistance  among students and continued  softness in  engineering  and computer
science,  partially  offset by improved sales returns.  Direct  contribution  to
profit decreased from prior year for the quarter and nine months, reflecting the
top-line results and investments in new products, services and business models. 

Worldwide adoptions of Wiley's innovative online product, eGrade Plus, have been
encouraging.  Currently  available  with 32 major  frontlist  textbooks  through
several  pricing  options,  eGrade Plus provides the student with a print and/or
online textbook, as well as online study guides and self-testing products, which
provide immediate feedback to help the student succeed in the course. Professors
who adopt  eGrade-Plus  can customize the course  content to fit their  specific
curriculum.                                                                     

During the quarter,  Higher Education signed an important multi-year  publishing
agreement  with  the  National  Geographic  Society  (NGS),  one of the  world's
foremost  research and educational  societies.  Wiley will create  textbooks and
digital  learning  tools  that will  incorporate  maps,  photographs,  graphics,
illustrations  and videos from the NGS' vast  library to help  college  students
"see the world with new eyes."                                                  

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Other  alliances  formed  during the quarter  include  agreements  with OuterNet
Publishing to co-develop lab manuals for introductory biology textbooks; Tata, a
software  development  company in India,  for  licensing  and  selling  business
simulations;  and Aplia,  to sell a Wiley  textbook  that  published  during the
quarter, Besanko/Microeconomics 2e, along with its software product.            

Europe                                                                          
------                                                                          
Third  quarter  revenue for Wiley's  European  segment of $66 million was up 13%
over prior year, or 7% excluding  foreign currency  effects.  For the first nine
months of the year,  Wiley  Europe's  revenue of $194  million was up 14%, or 8%
excluding foreign currency effects.  Direct  contribution to profit increased by
13% in the quarter and 15% for the nine months.                                 

Continuing the positive trend of the first half of the fiscal year,  journal and
book revenue were up.  Indigenous  STM books and imported U.S. P/T and Wiley-VCH
titles performed particularly well, especially in the Middle East and Africa.   

Sales  of  The  Cochrane  Collection,  which  is  now  available  through  Wiley
InterScience,  were strong  throughout  Europe,  with Sweden  signing and Norway
renewing national site licenses.  The Cochrane  Collection is a unique source of
information on the effects of health care intervention. Published on a quarterly
basis, The Cochrane  Collection  consists of a regularly  updated  collection of
evidence-based medicine databases.                                              

Wiley Europe has continued to grow through an effective  combination  of organic
growth and small acquisitions. During the third quarter, three acquisitions were
completed:  the reference  portfolio of the Nature  Publishing  Group  (flagship
print and online products such as Encyclopedia of Life Sciences, Encyclopedia of
the Human  Genome  and  Encyclopedia  of  Cognitive  Science);  the book list of
Professional  Engineering  Publishing,  the  publishing  arm of the Institute of
Mechanical  Engineers  (electronic  and electrical  engineering  titles that are
particularly strong in automotive and aerospace engineering and fuel cells); and
four journals from Henry Stewart  Publications  (Journal of Consumer  Behaviour,
International Journal of Nonprofit and Voluntary Sector Marketing,  Briefings in
Real Estate Finance and Journal of Public Affairs).  These acquisitions leverage
the  Company's  competencies  and  infrastructure,  increase the  proportion  of
revenue  delivered  electronically  and strengthen  its  leadership  position in
targeted segments.                                                              

Wiley Europe  signed an  agreement  with the  Securities  Institute to publish a
series of introductory  finance books.  This  collaboration  provides Wiley with
preferential  access to  potential  authors  and readers  among the  Institute's
17,000 members.  In turn, Wiley will provide its global  marketing  expertise to
help the Institute expand its membership in Asia and North America.             

All  visitors to the 2005  London Book Fair in March will  receive a copy of the
London Book Fair Tips For Dummies. This promotional piece is being supported and
distributed by the event's organizer,  Reed Exhibitions,  and will reinforce the
For Dummies brand with an influential audience.                                 

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Asia, Australia and Canada                                                      
--------------------------                                                      
Wiley's  revenue  in Asia,  Australia  and  Canada  was up 14%  during the third
quarter,  or 10% excluding foreign currency effects.  For the nine-month period,
revenue  increased  8%,  or  4%  excluding  foreign  exchange  effects.   Direct
contribution to profit growth reflects the top-line performance.                

In Asia, all Wiley product groups  contributed to the growth across  practically
all of its markets.  The  strongest  growth was in the global STM book  program,
which  benefited  from a strong  frontlist.  Sales in  India,  the  Philippines,
Thailand,  Malaysia,  Indonesia and Hong Kong were particularly  strong.  Higher
Education and P/T performed well in the quarter in most of Wiley Asia's markets.
Sales of Chinese  language For Dummies titles,  produced  locally in partnership
with China Machine Press,  have been impressive  with every title  reprinting at
least once.                                                                     

In November, a Wiley delegation visited China to meet with government officials,
representatives  from  the  U.S.  Embassy,  major  customers  and  partners  and
university  faculty  and  administration  to raise  the  Company's  profile  and
strengthen  key  relationships.  The trip was very  encouraging  and a number of
initiatives are being pursued.                                                  

Third  quarter  results in Australia  were up  year-on-year  with the School and
Higher  Education  businesses  exhibiting  strength.  Wiley  Australia  launched
studyon.com  during the quarter.  A new approach to the senior  school study aid
market, studyon.com features a website for each study area that enables students
to access course  summaries,  create their own study notes and instantly link to
online  revision  and testing.  The Company  also signed an agreement  with ICAA
(Institute of Chartered  Accountants in Australia) to publish its accounting and
auditing  handbooks,  annual  publications  that  will  not only  serve  student
requirements at the university level, but also professionals.                   

Wiley  Canada's  performance  during the third quarter  benefited  from a strong
local publishing  program in both P/T and Higher  Education.  Sixteen new titles
published  during the quarter,  including  Vanderhaeghe/The  Body Sense  Natural
Diet,  which hit #1 on  independent  bestseller  lists in the  Healthy  and Diet
categories.                                                                     

Conference Call                                                                 
Wiley will hold a conference call Friday, March 4, at 10:30 a.m. (ET) to discuss
its financial  results for the third quarter of fiscal year 2005.  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: (888) 695-0612  

International callers may participate by dialing: (719) 457-2663                

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A replay of the call will be available  from 1:30 p.m.  (ET) on Friday,  March 4
through  midnight (ET) on Thursday,  March 10 by dialing (888) 203-1112 or (719)
457-0820 and entering Passcode 5245914.                                         

A      live      audio       Webbcast       will      be      accessible      at
http://www.wiley.com/go/communications.   A  replay  of  the  Webcast   will  be
accessible for 14 days afterwards.                                              

"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; (viii)the Company's ability to
protect its copyrights and other  intellectual  property worldwide and (ix)other
factors detailed from time to time in the Company's  filings with the Securities
and Exchange  Commission.  The Company  undertakes  no  obligation  to update or
revise  any such  forward-looking  statements  to reflect  subsequent  events or
circumstances.                                                                  

Founded  in 1807,  John  Wiley & Sons,  Inc.,  provides  must-have  content  and
services  to  customers  worldwide.  Its  core  businesses  include  scientific,
technical, and medical journals,  encyclopedias,  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.                                            

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                             JOHN WILEY & SONS, INC.                                                                               
                              SUMMARY OF OPERATIONS                                                                                
                   FOR THE THIRD QUARTER AND NINE MONTHS ENDED                                                                     
                            JANUARY 31, 2005 AND 2004                                                                              
                    (in thousands, except per share amounts)                                                                       

                                                                  Third Quarter Ended                     Nine Months Ended        
                                                                      January 31,                            January 31,           
                                                         ------------------------------------  ------------------------------------
                                                             2005          2004      % Change     2005          2004      % Change 
                                                         ------------  ------------  --------  ------------  ------------  --------
                                                                                                                                   
Revenue                                                 $  258,428       242,357          7%      732,417      690,897          6% 

Costs and Expenses                                                                                                                 
     Cost of Sales                                          85,708        81,979          5%      246,184      232,270          6% 
     Operating and Administrative Expenses                 119,630       114,011          5%      357,232      337,350          6% 
     Amortization of Intangibles                             2,665         2,517          6%        7,675        7,382          4% 
                                                         ------------  ------------            ------------  ------------          
     Total Costs and Expenses                              208,003       198,507          5%      611,091      577,002          6% 
                                                         ------------  ------------            ------------  ------------          
Operating Income                                            50,425        43,850         15%      121,326      113,895          7% 
     Operating Margin                                        19.5%         18.1%                    16.6%        16.5%             

Interest Expense and Other, Net                              1,974         1,220                    4,721        3,092             
                                                         ------------  ------------            ------------  ------------          
Income Before Taxes                                         48,451        42,630         14%      116,605      110,803          5% 

Provision for Income Taxes (A)                              15,660        11,286                   37,471       32,011             
                                                         ------------  ------------            ------------  ------------          
Net Income                                               $  32,791        31,344          5%       79,134       78,792          0% 
                                                         ============  ============            ============  ============          

Income Per Share                                                                                                                   
     Diluted                                             $    0.53          0.50          6%         1.27         1.25          2% 
     Basic                                               $    0.54          0.51                     1.30         1.27             

Reconciliation of Non-GAAP Pro Forma Financial Disclosure                                                                          
---------------------------------------------------------                                                                          
Net Income as Reported                                   $  32,791        31,344                   79,134       78,792             
Tax Benefit (A)                                                  -        (3,019)                       -       (3,019)            
                                                         ------------  ------------            ------------  ------------          
     Pro Forma Net Income                                $  32,791        28,325         16%       79,134       75,773          4% 
                                                         ============  ============            ============  ============          

Income Per Share-Diluted as Reported                     $    0.53          0.50                     1.27         1.25             
Tax Benefit (A)                                                  -         (0.05)                       -        (0.05)            
     Pro Forma Income Per Share -Diluted                 $    0.53          0.45         18%         1.27         1.20          6% 
                                                         ============  ============            ============  ============          

Average Shares                                                                                                                     
     Diluted                                                62,064        63,086                   62,539       63,069             
     Basic                                                  60,513        61,823                   60,998       61,800             

(A)  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 tax benefit, 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.                                              

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                             JOHN WILEY & SONS, INC.                                                                             
                                 SEGMENT RESULTS                                                                                 
                   FOR THE THIRD QUARTER AND NINE MONTHS ENDED                                                                   
                            JANUARY 31, 2005 AND 2004                                                                            
                    (in thousands, except per share amounts)                                                                     

                                                                Third Quarter Ended                   Nine Months Ended          
                                                                    January 31,                          January 31,             
                                                         -----------------------------------  -----------------------------------
                                                            2005         2004       % Change     2005         2004       % Change
                                                         ----------   ----------   ---------  ----------   ----------   ---------
                                                                                                                                 
Revenue                                                                                                                          
-----------------------------------------                                                                                        
US Segment                                                                                                                       
    Professional/Trade                                 $   91,848        84,607         9%     256,845      247,282          4%  
    Scientific, Technical and Medical                      43,233        42,484         2%     136,135      126,885          7%  
    Higher Education                                       45,194        46,822        -3%     131,344      132,264         -1%  
                                                         ----------   ----------              ----------   ----------            
Total US                                                  180,275       173,913         4%     524,324      506,431          4%  
European Segment                                           66,444        58,865        13%     193,692      169,466         14%  
Asia, Australia & Canada Segment                           36,926        32,276        14%      87,324       80,749          8%  
Intersegment Sales Eliminations                           (25,217)      (22,697)       11%     (72,923)     (65,749)        11%  
                                                         ----------   ----------              ----------   ----------            
Total Revenue                                          $  258,428       242,357         7%     732,417      690,897          6%  
                                                         ==========   ==========              ==========   ==========            

Direct Contribution to Profit                                                                                                    
-----------------------------------------                                                                                        
US Segment                                                                                                                       
     Professional/Trade                                $   30,938        23,372        32%      72,644       66,942          9%  
     Scientific, Technical and Medical                     18,635        19,633        -5%      62,301       60,852          2%  
     Higher Education                                      15,220        17,835       -15%      43,663       46,454         -6%  
                                                         ----------   ----------              ----------   ----------            
Total US                                                   64,793        60,840         6%     178,608      174,248          3%  
European Segment                                           20,339        18,078        13%      60,847       52,730         15%  
Asia, Australia & Canada Segment                           12,251        10,420        18%      21,255       20,043          6%  
                                                         ----------   ----------              ----------   ----------            
Total Direct Contribution to Profit                        97,383        89,338         9%     260,710      247,021          6%  

Shared Services and Administrative Costs                                                                                         
-----------------------------------------                                                                                        
     Distribution                                         (11,550)      (11,882)       -3%     (35,308)     (34,734)         2%  
     Information Technology & Development                 (12,777)      (12,259)        4%     (38,009)     (36,488)         4%  
     Finance                                               (9,119)       (6,480)       41%     (24,359)     (20,720)        18%  
     Other Administration                                 (13,512)      (14,867)       -9%     (41,708)     (41,184)         1%  
                                                         ----------   ----------              ----------   ----------            
Total Shared Services and Admin. Costs                    (46,958)      (45,488)        3%    (139,384)    (133,126)         5%  

Operating Income                                       $   50,425        43,850        15%     121,326      113,895          7%  
                                                         ==========   ==========              ==========   ==========            

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                             JOHN WILEY & SONS, INC.                                                        
                   CONDENSED STATEMENTS OF FINANCIAL POSITION                                               
                                 (in thousands)                                                             
                                                                           January 31,                      
                                                                  -----------------------------    April 30,
                                                                     2005               2004         2004   
                                                                  -----------       -----------  -----------
                                                                                                            
Current Assets                                                                                              
     Cash & cash equivalents                                   $     139,841            93,051       82,027 
     Accounts receivable                                             166,588           151,618      127,224 
     Inventories                                                      78,133            81,288       83,789 
     Deferred income tax benefit                                      15,630            27,257       18,113 
     Other current assets                                             13,597             9,753       12,853 
                                                                  -----------       -----------  -----------
     Total Current Assets                                            413,789           362,967      324,006 
Product Development Assets                                            59,755            60,115       60,755 
Property, Equipment and Technology                                   115,083           119,313      117,305 
Intangible Assets                                                    285,337           280,714      276,440 
Goodwill                                                             195,034           195,705      194,893 
Deferred income tax benefit                                           16,672            31,349       18,976 
Other Assets                                                          22,679            22,259       22,207 
                                                                  -----------       -----------  -----------
     Total Assets                                                  1,108,349         1,072,422    1,014,582 
                                                                  ===========       ===========  ===========

Current Liabilities                                                                                         
     Accounts and royalties payable                                   91,996           100,397       68,338 
     Deferred subscription revenues                                  143,510           135,970      127,224 
     Accrued income taxes                                             42,329            42,799       19,338 
     Deferred income taxes                                             5,784                 -        5,721 
     Other accrued liabilities                                        75,048            71,698       85,744 
                                                                  -----------       -----------  -----------
     Total Current Liabilities                                       358,667           350,864      306,365 
Long-Term Debt                                                       200,000           200,000      200,000 
Accrued Pension Liability                                             53,919            51,444       48,505 
Other Long-Term Liabilities                                           32,940            30,631       31,757 
Deferred Income Taxes                                                  9,006            12,489       12,891 
Shareholders' Equity                                                 453,817           426,994      415,064 
                                                                  -----------       -----------  -----------
     Total Liabilities & Shareholders' Equity                  $   1,108,349         1,072,422    1,014,582 
                                                                  ===========       ===========  ===========
                                                        [Enlarge/Download Table]

                       CONDENSED STATEMENTS OF CASH FLOWS                                      
                                                                       Nine Months Ended       
                                                                          January 31,          
                                                                  -----------------------------
                                                                      2005             2004    
                                                                  -----------       -----------
                                                                                               
Operating Activities                                                                           
       Net income                                              $     79,134           78,792   
       Amortization of intangibles                                    7,675            7,382   
       Amortization of composition costs                             25,590           23,386   
       Depreciation of property and equipment                        23,084           21,072   
       Non-cash charges and other                                    43,520           45,552   
       Change in deferred subscription revenue                       14,722           12,742   
       Net change in operating assets and liabilities                (4,890)         (14,941)  
                                                                  -----------       -----------
       Cash Provided By Operating Activities                        188,835          173,985   

Investing Activities                                                                           
       Additions to product development assets                      (45,285)         (41,366)  
       Additions to property, equipment and technology              (17,948)         (20,852)  
       Acquisition of publishing assets, net of cash acquired       (13,697)          (3,066)  
                                                                  -----------       -----------
       Cash Used for Investing Activities                           (76,930)         (65,284)  

Financing Activities                                                                           
       Repayment of long-term debt                                        -          (35,000)  
       Purchase of treasury shares                                  (45,416)          (7,013)  
       Cash dividends                                               (13,688)         (12,126)  
       Proceeds from exercise of stock options                        3,923            4,012   
                                                                  -----------       -----------
       Cash Used for Financing Activities                           (55,181)         (50,127)  

Effects of Exchange Rate Changes on Cash                              1,090            1,236   
                                                                  -----------       -----------

Increase (Decrease) in Cash and Cash Equivalents for Period    $     57,814           59,810   
                                                                  ===========       ===========

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘8-K’ Filing	Date	First	Last	Other Filings

	3/4/05	1	2
Filed on:	3/3/05
For Period End:	1/31/05	9	10	10-Q
	1/31/04	9	10	10-Q, 8-K
	3/28/03	1
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Filing Submission 0000107140-05-000012 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Wiley John & Sons, Inc. – ‘8-K’ for 1/31/05

On: Thursday, 3/3/05, at 4:34pm ET · For: 1/31/05 · Accession #: 107140-5-12 · File #: 1-11507

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Dates Referenced Herein and Documents Incorporated by Reference

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