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Wiley Reports First Quarter Fiscal Year 2016 Results

  • Revenue of $423 million, up 2% over prior year on a constant currency basis
  • Journal revenue of $202 million, down 1% over prior year on a constant currency basis
  • Adjusted EPS of $0.58, up 11% on a constant currency basis
  • Full-year financial outlook reaffirmed

Wednesday, September 9, 2015 8:00 am EDT

Public Company Information:

NYSE:
JWA
NYSE:
JWB
"We continue to realize strong growth in our solutions businesses, including Online Program Management, Corporate Learning, and Online Test Preparation. Meanwhile, our Journals business remains strong, although this quarter’s revenue performance was muted by the trailing effects of the Swets subscription agent bankruptcy."

HOBOKEN, N.J.--(BUSINESS WIRE)--John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb), a global provider of knowledge and learning solutions that improve outcomes in research, professional practice, and education, today announced the following results for the first quarter of fiscal year 2016:

 

% Change

 
$ millions FY16 FY15 Excluding FX Including FX

Revenue

$

423

$

438

2

%

(3

%)

EPS
Adjusted

$

0.58

$

0.56

11 % 4 %
US GAAP

$

0.55

$

0.56

(2 %)
 

Please see the attached financial schedules for more detail

 

Management Commentary

“Our continued focus on achieving strategic revenue growth and targeted efficiency gains yielded another quarter of improvement in our earnings performance,” said Mark Allin, Wiley’s President and CEO. “We continue to realize strong growth in our solutions businesses, including Online Program Management, Corporate Learning, and Online Test Preparation. Meanwhile, our Journals business remains strong, although this quarter’s revenue performance was muted by the trailing effects of the Swets subscription agent bankruptcy.”

Fiscal Year 2016 Outlook

Wiley is reaffirming its fiscal year 2016 outlook of low-single-digit revenue growth and flat adjusted EPS growth on a constant currency basis as compared to fiscal year 2015, excluding the adverse transitional impact of shifting to time-based journal subscription agreements. As previously announced, Wiley is moving to time-based digital journal subscription agreements for calendar year 2016. The change will shift roughly $35 million of revenue and $0.35 of EPS from FY16 to FY17, with recurring effect annually thereafter. Most of the revenue and earnings impact will occur in our third fiscal quarter, and the change will not impact cash flow. Included in the FY16 EPS guidance is an incremental expense impact of more than $0.15 for the enterprise resource planning system (ERP) implementation as compared to FY15.

Foreign Exchange (FX)

Wiley generates half of its revenue from outside the United States, and is therefore exposed to a stronger dollar, particularly in relation to the euro and pound sterling. For fiscal year 2015, the weighted average rates for sterling and the euro were 1.60 and 1.25, respectively, on a US dollar equivalent basis. The weighted average rates for the first quarter of fiscal 2016 were 1.55 and 1.11, respectively. Throughout this report, references are made to variances “excluding foreign exchange” or “on a constant currency basis”; such amounts exclude both currency translation effects and transactional gains and losses.

Adjusted Results

The Company provides financial measures referred to as “adjusted” revenue, contribution to profit, and EPS, which exclude restructuring charges. Variances to adjusted revenue, contribution to profit, and EPS are on a constant currency basis unless otherwise noted. Management believes the exclusion of such items provides additional information to facilitate the analysis of results. These non-GAAP measures are not intended to replace the financial results reported in accordance with GAAP.

First Quarter Summary

  • First quarter revenue grew 2% on a constant currency basis to $423 million due to strong organic growth in Online Program Management (+26%), Online Test Preparation (+40%), Custom Material (+16%), and Author-Funded Access (+14%). CrossKnowledge contributed an additional $8.5 million of inorganic Corporate Learning revenue growth in the quarter, as the prior year period included only one month of results. These areas of growth offset a 9% decline in Print Book revenue and a 1% decline in Journal Subscription revenue, which was primarily due to the trailing effects of the Swets bankruptcy. Including a $22 million unfavorable impact of currency, overall revenue declined 3%.
  • Adjusted earnings per share (EPS) grew 11% on a constant currency basis to $0.58. Adjusted EPS excludes certain one-time or unusual items as further described in the attached reconciliation of US GAAP to Adjusted EPS. Adjusted EPS growth was driven by revenue growth, cost reductions, and lower tax expense partially offset by investment in Online Program Management. EPS on a US GAAP basis declined 2% mainly due to a $0.04 unfavorable impact of currency and a $3.4 million ($0.03 per share) restructuring charge in the quarter.
  • Share Repurchases: Wiley repurchased 230,400 shares this quarter at a cost of $12.7 million, an average of $55.22 per share.
  • Dividend: In June, the Board of Directors increased Wiley’s quarterly cash dividend by 3% to $0.30 per share on its Class A and Class B Common Stock. It was the 22nd consecutive annual increase and raised the annualized dividend payout to $1.20 per share.

RESEARCH

  • Revenue: First quarter revenue of $237.4 million was flat on a constant currency basis. A marginal decline in Journal Subscription revenue (-1%), driven by the trailing effects of the Swets bankruptcy, offset growth in Author-Funded Access (+14%). Research Books revenue was flat.
  • Calendar Year 2015 Journal Subscriptions: At the end of July, calendar year 2015 Journal Subscriptions were up 0.4% on a constant currency basis, with 98% of targeted business contracted for the 2015 calendar year.
  • Adjusted Contribution to Profit: First quarter adjusted contribution to profit of $65.9 million rose 1% on a constant currency basis mainly due to cost reductions. Contribution to profit on a US GAAP basis declined 6% primarily due to the unfavorable impact of currency.
  • Society Business: Four new society journals were signed in the quarter with combined annual revenue of $12.0 million; eighteen were renewed with approximately $20.4 million in combined annual revenue; and four were not renewed, worth $1.9 million annually.
  • Journal Impact Index: In July, Wiley announced a strong performance in the number of its journal titles indexed in the Thomson Reuters® 2014 Journal Citation Reports (JCR). A total of 1,200 Wiley titles were indexed, with 24 Wiley journals achieving the top rank in their respective categories and 240 achieving a top 10 ranking. The Thomson Reuters index is a barometer of journal influence across the research community.

PROFESSIONAL DEVELOPMENT

  • Revenue: First quarter revenue rose 10% on a constant currency basis to $98.7 million due to two additional months of reported corporate learning results for CrossKnowledge in the current period ($8.5 million) and organic growth on a comparable basis, as well as strong organic growth in Online Test Preparation (+40%) due to CFA and GMAT programs. On a constant currency basis, Print and Digital Books declined 5% and 1%, respectively. The Assessment business rose 1% with post-hire assessment growth offsetting an expected decline in pre-hire assessment revenue following portfolio actions to optimize longer-term profitable growth.
  • Adjusted Contribution to Profit: First quarter adjusted contribution to profit more than doubled to $19.0 million due to efficiency gains.
  • Alliances: In July, CrossKnowledge and Schouten Global, a European market leader in the development of soft skills, team performance and leadership, announced a global partnership to mutually offer global clients a broader range of impactful blended learning solutions. The global partnership enlarges the international network of clients, universities and learning and development partners of Schouten Global, including their 700 global trainers, coaches and consultants, and CrossKnowledge.

EDUCATION

  • Revenue: First quarter revenue declined 1% on a constant currency basis to $86.9 million, with Print Textbooks declining 17% and offsetting a strong quarter for Online Program Management (+26%), Custom Material (+16%), and Digital Books (+6%). The decline in Print Textbooks reflects the continued shift of student demand toward alternative formats and further declines in student enrollment at for-profit institutions.
  • Adjusted Contribution to Profit: First quarter adjusted contribution to profit declined 37% on a constant currency basis to $4.7 million, reflecting lower Print Textbook revenue and continued investment in Online Program Management.
  • Online Program Management (formerly Deltak): As of July 31, 2015, Wiley had 38 university partners and 210 programs under contract, compared to 200 programs at the end of last quarter. New programs were signed with George Washington University, University of Scranton, and St. Mary’s University of Minnesota.
  • Alliances: In July, Wiley announced a partnership with InsideTrack, a leading student success organization, to make career coaching possible at a low fee for all students who use the WileyPLUS platform for Intermediate Accounting by Kieso, Weygandt, Warfield. Wiley’s partnership with InsideTrack will offer those students enrolled in the Intermediate Accounting WileyPLUS course free introductory career-related videos and, to paid subscribers, access to InsideTrack’s web and mobile-enabled platform. InsideTrack’s career coaches will work with students to assess their career-readiness, plan their job search, and develop the skills that employers value most.

Earnings Conference Call

  • Scheduled for today, September 9, at 10:00 a.m. (EDT)
  • Access the webcast at www.wiley.com> Investor Relations> Events and Presentations, or http://www.wiley.com/WileyCDA/Section/id-370238.html
  • U.S. callers, please dial (888) 438-5519 and enter the participant code 2892212#
  • International callers, please dial 719) 325-2281 and enter the participant code 2892212#
  • An archive of the webcast will be available for a period of up to 14 days

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This release contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company, and are subject to change based on many important factors. Such factors include, but are not limited to (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company's educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities and (x) other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.

About Wiley

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

 
JOHN WILEY & SONS, INC.
UNAUDITED SUMMARY OF OPERATIONS
FOR THE FIRST QUARTER ENDED
JULY 31, 2015 AND 2014
(in thousands, except per share amounts)
                 
 

FIRST QUARTER ENDED JULY 31,

 
2015   2014   % Change  
US GAAP  

Adjustments
(A)

  Adjusted US GAAP  

Adjustments
(A)

  Adjusted US GAAP

Adjusted
excl. FX

 
Revenue $ 422,981 422,981 437,917 437,917 -3 % 2 %
 
Costs and Expenses
Cost of Sales 119,729 119,729 124,053 124,053 -3 % 1 %
Operating and Administrative 242,498 242,498 251,734 251,734 -4 % 1 %
Restructuring Charges (Credits) (A) 3,425 (3,425 ) - (155 ) 155 -
Amortization of Intangibles 12,420     12,420   12,655     12,655   -2 % 1 %
 
Total Costs and Expenses 378,072 (3,425 ) 374,647 388,287 155 388,442 -3 % 1 %
 
Operating Income 44,909 3,425 48,334 49,630 (155 ) 49,475 -10 % 5 %
Operating Margin 10.6 % 11.4 % 11.3 % 11.3 %
 
Interest Expense (3,573 ) (3,573 ) (4,144 ) (4,144 ) -14 % -14 %
Foreign Exchange (Loss) Gain (80 ) (80 ) (165 ) (165 )
Interest Income and Other 664     664   310     310   114 % 114 %
 
Income Before Taxes 41,920 3,425 45,345 45,631 (155 ) 45,476 -8 % 7 %
 
Provision for Income Taxes (A) 9,463   1,419   10,882   11,985   (24 ) 11,961   -21 % -2 %
 
Net Income $ 32,457   2,006   34,463   33,646   (131 ) 33,515   -4 % 10 %
 
 
Earnings Per Share- Diluted (A) $ 0.55 0.03 0.58 0.56 - 0.56 -2 % 11 %
 
Average Shares - Diluted 59,366 59,366 59,366 59,784 59,784 59,784
 
 
 
See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.
 
 
JOHN WILEY & SONS, INC.
FOR THE FIRST QUARTER
JULY 31, 2015 AND 2014
 
 

RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)

 
 
First Quarter Ended
July 31,
  2015   2014
 
US GAAP Earnings Per Share - Diluted $ 0.55 $ 0.56
Adjusted to exclude the following:
Restructuring Charges (A) 0.03 -
 
Adjusted Earnings Per Share - Diluted $ 0.58 $ 0.56
 
 
 
 

NOTES TO UNAUDITED FINANCIAL STATEMENTS

 
 
Adjustments:
(A) RESTRUCTURING CHARGES: The adjusted results for the three months ended July 31, 2015 and 2014 exclude restructuring charges (credits) related to the Company's Restructuring and Reinvestment Program of $3.4 million or $0.03 per share, and a credit of ($0.2) million, respectively.
 
 
Non-GAAP Financial Measures:
In addition to providing financial results in accordance with GAAP, the Company has provided adjusted financial results that exclude the impact of other nonrecurring items described in more detail throughout this press release. These non-GAAP financial measures are labeled as "Adjusted" and are used for evaluating the results of operations for internal purposes. These non-GAAP measures are not intended to replace the presentation of financial results in accordance with GAAP. Rather, the Company believes the exclusion of such items provides additional information to investors to facilitate the comparison of past and present operations. Unless otherwise noted, adjusted amounts in the attached schedules include foreign exchange.
 
 
JOHN WILEY & SONS, INC.
UNAUDITED SEGMENT RESULTS
FOR THE FIRST QUARTER
JULY 31, 2015 and 2014
(in thousands)
                         
 

FIRST QUARTER ENDED JULY 31,

 
2015 2014 % Change

 

US GAAP  

Adjustments
(A)

  Adjusted US GAAP  

Adjustments
(A)

  Adjusted US GAAP

Adjusted
excl. FX

Revenue

Research $ 237,390 - 237,390 254,870 - 254,870 -7% 0%
Professional Development 98,665 - 98,665 92,327 - 92,327 7% 10%
Education 86,926 - 86,926 90,720 - 90,720 -4% -1%
           
Total $ 422,981 - 422,981 437,917 - 437,917 -3% 2%
 

Direct Contribution to Profit

Research $ 106,813 370 107,183 114,734 (185) 114,549 -7% 0%
Professional Development 41,281 10 41,291 32,912 245 33,157 25% 28%
Education 23,288 (11) 23,277 28,563 51 28,614 -18% -14%
           
Total $ 171,382 369 171,751 176,209 111 176,320 -3% 3%
 

Contribution to Profit (After Allocated Shared Services

and Admin. Costs)

Research $ 65,569 370 65,939 69,959 (185) 69,774 -6% 1%
Professional Development 19,013 10 19,023 7,523 245 7,768 153% 147%
Education 4,701 (11) 4,690 8,696 51 8,747 -46% -37%
           
Total $ 89,283 369 89,652 86,178 111 86,289 4% 11%
 
Unallocated Shared Services and Admin. Costs (44,374) 3,056 (41,318) (36,548) (266) (36,814) 21% 18%
           
Operating Income $ 44,909 3,425 48,334 49,630 (155) 49,475 -10% 5%
 
 
 
 

Total Shared Services and Admin. Costs by Function

Distribution and Operation Services $ (21,230) 757 (20,473) (24,218) 384 (23,834) -12% -9%
Technology and Content Management (61,937) 1,152 (60,785) (61,390) (557) (61,947) 1% 2%
Finance (12,749) 71 (12,678) (13,571) (93) (13,664) -6% -2%
Other Administration (30,557) 1,076 (29,481) (27,400) - (27,400) 12% 12%
Total $ (126,473) 3,056 (123,417) (126,579) (266) (126,845) 0% 2%
 
 
(A) See the accompanying Notes to Unaudited Financial Statements for a description the Adjustment.

 

Note: As part of Wiley’s restructuring and reorganization program the Company consolidated certain decentralized business functions (Sales Support, Marketing Services, etc.) into global shared service functions. These newly centralized service groups enable significant cost reduction opportunities, including efficiencies gained from standardized technology and centralized management. The cost of these functions were previously reported as direct operating expenses in each business segment but are now reported within the shared service functions and then allocated to each business segment above. Prior year amounts have been restated to reflect the same reporting methodology.
 

 
UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
FOR THE FIRST QUARTER
JULY 31, 2015 and 2014
(in thousands)
         
 
First Quarter Ended
July 31,
2015   2014   % Change

% Change
excl. FX

 
 

Research:

Direct Contribution to Profit 106,813 114,734 -7 % -1 %
Restructuring Charges (Credits) (A) 370   (185 )
Adjusted Direct Contribution to Profit 107,183 114,549 -6 % 0 %
 
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services (10,179 ) (11,978 ) -15 % -9 %
Technology and Content Management (24,056 ) (24,943 ) -4 % 0 %
Occupancy and Other (7,009 ) (7,854 ) -11 % -4 %
Adjusted Contribution to Profit (after allocated 65,939   69,774   -5 % 1 %
Shared Services and Admin. Costs)
 

Professional Development:

Direct Contribution to Profit 41,281 32,912 25 % 28 %
Restructuring Charges (A) 10   245  
Adjusted Direct Contribution to Profit 41,291 33,157 25 % 28 %
 
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services (6,869 ) (8,301 ) -17 % -12 %
Technology and Content Management (9,804 ) (10,945 ) -10 % -9 %
Occupancy and Other (5,595 ) (6,143 ) -9 % -6 %
Adjusted Contribution to Profit (after allocated 19,023   7,768   145 % 147 %
Shared Services and Admin. Costs)
 

Education:

Direct Contribution to Profit 23,288 28,563 -18 % -14 %
Restructuring (Credits) Charges (A) (11 ) 51  
Adjusted Direct Contribution to Profit 23,277 28,614 -19 % -14 %
 
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services (3,425 ) (3,332 ) 3 % 9 %
Technology and Content Management (11,218 ) (13,339 ) -16 % -14 %
Occupancy and Other (3,944 ) (3,196 ) 23 % 27 %
Adjusted Contribution to Profit (after allocated 4,690   8,747   -46 % -37 %
Shared Services and Admin. Costs)
 
Total Adjusted Contribution to Profit (after 89,652 86,289 4 % 11 %
allocated Shared Services and Admin. Costs)
 

Unallocated Shared Services and Admin. Costs:

Unallocated Shared Services and Admin. Costs (44,374 ) (36,548 ) 21 % 28 %
Restructuring Charges (Credits) (A) 3,056   (266 )
Adjusted Unallocated Shared Services and Admin. Costs (41,318 ) (36,814 ) 12 % 18 %
   
Adjusted Operating Income 48,334   49,475   -2 % 5 %
 
 
 
(A) See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.
Note: As part of Wiley’s restructuring and reorganization program the Company consolidated certain decentralized business functions (Sales Support, Marketing Services, etc.) into global shared service functions. These newly centralized service groups enable significant cost reduction opportunities, including efficiencies gained from standardized technology and centralized management. The cost of these functions were previously reported as direct operating expenses in each business segment but are now reported within the shared service functions and then allocated to each business segment above. Prior year amounts have been restated to reflect the same reporting methodology.
 
 
JOHN WILEY & SONS, INC.
SEGMENT REVENUE by PRODUCT/SERVICE
FOR THE FIRST QUARTER
JULY 31, 2015 and 2014
(in thousands)
                       
First Quarter    
Ended July 31, % of % Change
  2015   2014   Revenue   excl. FX
 
 

RESEARCH

Journal Revenue
Journal Subscriptions $ 157,208 168,824 66 % -1 %
Author-Funded Access 5,692 5,429 2 % 14 %
Licensing, Reprints, Backfiles, and Other 39,313 43,498 17 % -2 %
Total Journal Revenue 202,213 217,751 85 % -1 %
 
Books and References:
Print Books 23,495 25,001 10 % -1 %
Digital Books 8,787 9,256 4 % 1 %
Licensing and Other 2,895 2,862 1 % 8 %
Total Books and References Revenue 35,177 37,119 15 % 0 %
 
                       
  Total Revenue     $ 237,390   254,870   100 %   0 %
 
 

PROFESSIONAL DEVELOPMENT

Knowledge Services:
Print Books $ 48,712 52,863 49 % -5 %
Digital Books 10,633 10,854 11 % -1 %
Online Test Preparation and Certification 7,906 5,662 8 % 40 %
Other Knowledge Service Revenue 5,438 5,772 6 % -4 %
72,689 75,151 74 % -1 %
 
Talent Solutions:
Assessment 13,227 13,122 13 % 1 %
Corporate Learning 12,749 4,054 13 % 234 %
25,976 17,176 26 % 56 %
                       
  Total Revenue     $ 98,665   92,327   100 %   10 %
 
 

EDUCATION

Books:
Print Textbooks $ 34,544 44,535 39 % -17 %
Digital Books 5,754 5,704 7 % 6 %
40,298 50,239 46 % -15 %
 
Custom Material 22,743 19,572 26 % 16 %
 
Course Workflow (WileyPLUS) 1,020 1,314 1 % -7 %
 
Online Program Management (Deltak) 20,502 16,237 24 % 26 %
 
Other Education Revenue 2,363 3,358 3 % -30 %
                       
  Total Revenue     $ 86,926   90,720   100 %   -1 %
 
 
Note: Segment Revenue Categorization
 
 
JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
           
July 31, April 30,
2015 2014 2015
 
Current Assets
Cash & cash equivalents $ 369,413 255,857 457,441
Accounts receivable 202,570 202,770 147,183
Inventories 58,680 74,608 63,779
Prepaid and other 76,276 68,526 72,516
Total Current Assets 706,939 601,761 740,919
Product Development Assets 61,623 71,755 69,589
Technology, Property and Equipment 198,889 195,270 193,010
Intangible Assets 919,996 1,037,749 917,621
Goodwill 971,407 1,031,527 962,367
Income Tax Deposits 58,877 65,729 57,098
Other Assets 63,869 65,245 63,639
Total Assets 2,981,600 3,069,036 3,004,243
 
Current Liabilities
Short-term debt 100,000 - 100,000
Accounts and royalties payable 142,741 148,891 161,465
Deferred revenue 281,136 290,215 372,051
Accrued employment costs 59,910 73,074 93,922
Accrued income taxes 9,605 7,388 9,484
Accrued pension liability 4,603 4,655 4,594
Other accrued liabilities 61,839 58,944 62,167
Total Current Liabilities 659,834 583,167 803,683
Long-Term Debt 750,473 788,013 650,090
Accrued Pension Liability 202,230 161,847 209,727
Deferred Income Tax Liabilities 205,004 245,830 198,947
Other Long-Term Liabilities 83,395 81,838 86,756
Shareholders' Equity 1,080,664 1,208,341 1,055,040
Total Liabilities & Shareholders' Equity $ 2,981,600 3,069,036 3,004,243
 
JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW
(in thousands)
       
 
Three Months Ended
July 31,
2015 2014
Operating Activities:
Net income $ 32,457 33,646
Amortization of intangibles 12,420 12,655
Amortization of composition costs 9,650 10,094
Depreciation of technology, property and equipment 16,491 14,956
Restructuring (credits) charges 3,425 (155)
Restructuring payments (9,022) (8,356)
Share-based compensation expense 3,898 3,289
Excess tax benefits from share-based compensation (503) (1,732)
Royalty advances (24,811) (24,649)
Earned royalty advances 32,060 32,145
Other non-cash charges and credits 14,447 13,653
Change in deferred revenue (95,940) (104,719)
Net change in operating assets and liabilities (118,654) (83,054)
Cash Used for Operating Activities (124,082) (102,227)
 
Investments in organic growth:
Composition spending (8,284) (7,064)
Additions to technology, property and equipment (22,283) (13,964)
 
Free Cash Flow (154,649) (123,255)
 
Other Investing and Financing Activities:
Acquisitions, net of cash (2,221) (170,910)
Escrowed proceeds from sale of consumer publishing programs - 1,100
Repayment of long-term debt (33,717) (219,033)
Borrowings of long-term debt 134,100 304,552
Change in book overdrafts (5,671) (13,206)
Cash dividends (17,609) (17,162)
Purchase of treasury shares (12,723) (12,173)
Proceeds from exercise of stock options and other 375 18,207
Excess tax benefits from share-based compensation 503 1,732
Cash Provided by (Used for) Investing and Financing Activities 63,037 (106,893)
   
Effects of Exchange Rate Changes on Cash 3,584 (372)
 
Decrease in Cash and Cash Equivalents for Period $ (88,028) (230,520)
 
 
 
RECONCILIATION TO GAAP PRESENTATION
 
 
Investing Activities:
Composition spending $ (8,284) (7,064)
Additions to technology, property and equipment (22,283) (13,964)
Acquisitions, net of cash (2,221) (170,910)
Escrowed proceeds from sale of consumer publishing programs - 1,100
Cash Used for Investing Activities $ (32,788) (190,838)
 
Financing Activities:
Cash Used for Investing and Financing Activities $ 63,037 (106,893)
Excluding:
Acquisitions, net of cash (2,221) (170,910)
Escrowed proceeds from sale of consumer publishing programs - 1,100
Cash Provided by Financing Activities $ 65,258 62,917

 

Note: The Company’s management evaluates performance using free cash flow. The Company believes free cash flow provides a meaningful and comparable measure of performance. Since free cash flow is not a measure calculated in accordance with GAAP, it should not be considered as a substitute for other GAAP measures, including cash used for or provided by operating activities, investing activities and financing activities, as an indicator of performance.
 

Contact:

Wiley
Investor:
Brian Campbell, 201-748-6874
Investor Relations
brian.campbell@wiley.com