Press Release Details

• Revenue of $433 million, down 5% over prior year on a constant currency basis, including the impact of a $10 million journal backfile sale in the prior year period
• Journal subscription revenue of $163 million, down 1% on a constant currency basis, including the trailing effects of the Swets subscription agency bankruptcy
• Adjusted EPS of $0.78, down 10% on a constant currency basis, including the $0.10 impact of the large journal backfile sale in the prior year period
• First half revenue and adjusted EPS down 2% and 1%, respectively, on a constant currency basis
• Full-year adjusted EPS outlook reaffirmed but revenue growth outlook revised to flat, excluding the impact of foreign exchange and the shift to time-based journal subscription agreements

John Wiley & Sons, Inc. (NYSE:JWa and 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 second quarter of fiscal year 2016:

													% Change
$ millions				FY16					FY15				Excluding FX						Including FX
Revenue:
Q2				$433.4	$477.0								(5%)		(9%)
6 Months				$856.3	$914.9								(2%)		(6%)
Adjusted EPS:
Q2				$0.78	$0.90								(10%)		(13%)
6 Months				$1.36	$1.46								(1%)		(7%)
GAAP EPS:
Q2				$0.74	$0.90										(18%)
6 Months				$1.29	$1.46										(12%)
Please see the attached financial schedules for more detail

Management Commentary

“As anticipated, second quarter results reflect a challenging comparison to the prior-year period due to an unusually large backfile sale in that prior period,” said Mark Allin, Wiley’s President and CEO. “In addition, the quarter was adversely impacted by substantially weaker demand for college textbooks and custom education material. For the six months, revenue and adjusted EPS were down modestly, with Research journal revenue showing steady performance excluding the prior year backfile sale. Meanwhile, we continue to make good progress in the integration of our books businesses, our continued shift to a more variable cost model and the implementation of our cost benchmarking initiative.”

Fiscal Year 2016 Outlook

Wiley is reaffirming its fiscal year 2016 adjusted EPS outlook for flat performance but lowering its revenue outlook from low-single digit growth to flat; both are on a constant currency basis and exclude 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 the third 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 half of fiscal 2016 were 1.55 and 1.12, 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.

Second Quarter and First Half Summary

• Second quarter revenue declined 5% on a constant currency basis to $433.4 million due to a $10 million journal backfile sale in the prior year period and declines in book revenue across the three segments. Together, Journal Subscriptions and Author-Funded Access were flat compared to prior year, including the trailing effects of the Swets bankruptcy. Online Program Management and Online Test Preparation grew 18% and 13%, respectively. Second quarter revenue on a US GAAP basis declined 9% primarily due to an adverse currency impact of $19 million. First half revenue declined 2% on a constant currency basis to $856.3 million, or 6% on a US GAAP basis.
• Second quarter adjusted earnings per share (EPS) declined 10% on a constant currency basis to $0.78 due to the high-margin journal backfile sale in the prior year period, higher technology expense related to ERP planning and deployment, and investment in online program management, partially offset by incremental cost savings from restructuring programs. Adjusted EPS excludes restructuring charges and credits, as further described in the attached reconciliation of US GAAP to Adjusted EPS. Second quarter EPS on a US GAAP basis declined 18% to $0.74. US GAAP EPS includes a $0.03 adverse impact from foreign exchange and a $0.04 per share restructuring charge in the quarter. First half adjusted EPS declined 1% on a constant currency basis to $1.36, or 12% on a US GAAP basis.
• Free Cash Flow was a use of $192.7 million for the first half of the year as compared to a use of $140.7 million in the prior year period due to lower net income, working capital timing, and higher capital spending related to the ERP and related systems deployment. Note that free cash flow is seasonally negative in the first half of Wiley’s fiscal year principally due to the timing of annual journal subscription cash collections.
• Restructuring Charge: Wiley recorded a $3.7 million pre-tax restructuring charge in the quarter ($0.04 per share) principally related to process re-engineering consulting costs. After the quarter closed, Wiley completed an agreement to move its US-based print textbook fulfillment operations to Cengage Learning, with the aim of closing its New Jersey distribution facility by April 2016. The exit from the facility will result in near-term restructuring charges as activities progress.
• Share Repurchases: Wiley repurchased 637,717 shares this quarter at a cost of $32.0 million, an average of $50.15 per share. Approximately 1.3 million shares remain in the current authorization program.

RESEARCH

• Revenue: Second quarter revenue of $238.4 million was down 5% on a constant currency basis due to the $10 million journal backfile sale in the prior year period and an 11% decline in Books and References revenue, which offset steady performance in Journal Subscriptions and Author-Funded Access, in combination. For the first six months, Research revenue was down 3% at constant currency.
• Calendar Year 2015 Journal Subscriptions: At the end of October, calendar year 2015 Journal Subscriptions were up 0.3% on a constant currency basis, with nearly all targeted business under contract for the 2015 calendar year. Results were adversely impacted by the Swets bankruptcy and net society publishing losses for the year.
• Adjusted Contribution to Profit: Second quarter adjusted contribution to profit of $67.6 million declined 11% on a constant currency basis mainly due to the high-margin backfile sale in the prior year, as well as higher allocated marketing and technology shared service costs, partially offset by savings from restructuring and strategic vendor sourcing initiatives. For the six months, adjusted contribution to profit was down 5% at constant currency.
• Society Business: Seven society journals were renewed during the quarter, worth approximately $9.9 million in combined annual revenue, and one was not renewed, worth $0.3 million annually.

PROFESSIONAL DEVELOPMENT

• Revenue: Second quarter revenue declined 3% on a constant currency basis to $99.2 million with organic growth in Online Test Preparation (+13%) and Corporate Learning (+7%) offset by a 6% decline in Books. The Assessment business rose 4%, with post-hire assessment growth offsetting an expected decline in pre-hire assessment revenue following portfolio actions to optimize longer-term profitable growth. For the six months, Professional Development revenue grew 3% due to growth in Corporate Learning, which included two additional months of revenue (approximately $5 million) due to a prior-year reporting lag, and strong double-digit growth in Online Test Preparation (+27%).
• Adjusted Contribution to Profit: Excluding foreign exchange, adjusted contribution to profit rose 95% for the quarter and more than doubled for the year. Performance was impacted by lower revenue offset by efficiency gains from restructuring and cost synergies within the Talent Solutions businesses. Six month performance includes two additional months of operating results from the CrossKnowledge acquisition.
• Acquisitions: In October, Wiley announced the acquisition of Chartered Financial Analyst (CFA) content and AnalystSuccess.com from The American College of Financial Services. Terms were not disclosed. The acquisition positions Wiley as a market leader for CFA Test Preparation. Wiley runs online CFA Exam Review Courses on its Efficient Learning Systems platform. In addition to the CFA, Wiley provides advanced online test preparation for the CPA, CMA, CIA, and PMP designations.
• Test Preparation Partnership: Wiley recently announced a partnership with ACT, the nation’s leader in college and career readiness, to enhance our collective test prep product offerings. Wiley will become the exclusive publisher for ACT’s The Real ACT® Prep Guide beginning in January 2016. As producer of the ACT test and ACT WorkKeys®, among other respected assessment programs, ACT is committed to providing insights that help individuals better prepare for success throughout their lives - from education through career.
• Junior Achievement Program: CrossKnowledge and Junior Achievement USA® recently announced a joint partnership that will bring digital learning solutions to thousands of students and educators. As part of the agreement, CrossKnowledge has donated the use of its Learning Management System (LMS) to Junior Achievement USA for the next five years (starting in 2016) through the CrossKnowledge Foundation. It is estimated that nearly 300,000 Junior Achievement users will access CrossKnowledge programs in 2016, and that figure is expected to reach 1.6 million in 2020.

EDUCATION

• Revenue: Second quarter revenue declined 8% on a constant currency basis to $95.8 million, with Print Textbooks down 22% and Custom Material down 25%, offsetting strong growth in Online Program Management (+18%) and Digital Books (+12%). The decline in Textbooks and Custom Material reflects lower enrollments, increased market penetration by rental, channel inventory consumption, and fewer adoptions. WileyPLUS grew 2% over prior year. For the six months, Education revenue is down 5% at constant currency.
• Adjusted Contribution to Profit: Second quarter adjusted contribution to profit declined 19% on a constant currency basis to $15.6 million, reflecting lower revenue and continued investment in Online Program Management.
• Online Program Management (formerly Deltak): Wiley added one university partner in the quarter – Nottingham Trent University (England) – and six new degree programs spanning business and nursing. Nottingham Trent is one of the largest universities in the UK with over 28,000 students. At the end of October, Wiley had 39 partners under contract and 216 online degree programs.
• Distribution Partnership: In November, Wiley entered into an agreement to outsource its US-based print textbook fulfillment operations to Cengage Learning, with the aim of creating a more efficient and variable cost model for print products. Under this agreement, the Company plans to exit its New Jersey distribution center in the spring of 2016.

Earnings Conference Call

• Scheduled for today, December 8, at 10:00 a.m. (EST)
• 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) 438-5525 and enter the participant code 469774#
• International callers, please dial (719) 457-1512 and enter the participant code 469774#
• 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 SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2015 AND 2014
(in thousands, except per share amounts)
SECOND QUARTER ENDED OCTOBER 31,
										2015																		2014																		% Change
									US GAAP							Adjustments (A)						Adjusted						US GAAP						Adjustments (A)						Adjusted						US GAAP						Adjusted excl. FX
Revenue							$			433,362												433,362						476,972												476,972						-9	%					-5	%
Costs and Expenses
	Cost of Sales									116,764												116,764						134,541												134,541						-13	%					-10	%
	Operating and Administrative									239,987												239,987						253,328												253,328						-5	%					-1	%
	Restructuring Charges (A)									3,694						(3,694	)					-						-						-						-
	Amortization of Intangibles									12,652												12,652						13,099												13,099						-3	%					0	%
	Total Costs and Expenses									373,097						(3,694	)					369,403						400,968						-						400,968						-7	%					-4	%
Operating Income										60,265						3,694						63,959						76,004						-						76,004						-21	%					-13	%
	Operating Margin									13.9	%											14.8	%					15.9	%											15.9	%
Interest Expense										(4,324	)											(4,324	)					(4,506	)											(4,506	)					-4	%					-4	%
Foreign Exchange Gain										38												38						210												210
Interest Income and Other										644												644						1,108												1,108						-42	%					-42	%
Income Before Taxes										56,623						3,694						60,317						72,816						-						72,816						-22	%					-14	%
Provision for Income Taxes (A)										13,023						1,348						14,371						19,039												19,039						-32	%					-21	%
Net Income							$			43,600						2,346						45,946						53,777						-						53,777						-19	%					-11	%
Earnings Per Share- Diluted (A)							$			0.74						0.04						0.78						0.90						-						0.90						-18	%					-10	%
Average Shares - Diluted										58,790						58,790						58,790						59,756						59,756						59,756
SIX MONTHS ENDED OCTOBER 31,
										2015																		2014																		% Change
									US GAAP							Adjustments (A)						Adjusted						US GAAP						Adjustments (A)						Adjusted						US GAAP						Adjusted excl. FX
Revenue							$			856,343												856,343						914,889												914,889						-6	%					-2	%
Costs and Expenses
	Cost of Sales									236,493												236,493						258,594												258,594						-9	%					-5	%
	Operating and Administrative									482,485												482,485						505,062												505,062						-4	%					0	%
	Restructuring Charges (Credits) (A)									7,119						(7,119	)					-						(155	)					155						-
	Amortization of Intangibles									25,072												25,072						25,754												25,754						-3	%					1	%
	Total Costs and Expenses									751,169						(7,119	)					744,050						789,255						155						789,410						-5	%					-1	%
Operating Income										105,174						7,119						112,293						125,634						(155	)					125,479						-16	%					-6	%
	Operating Margin									12.3	%											13.1	%					13.7	%											13.7	%
Interest Expense										(7,897	)											(7,897	)					(8,650	)											(8,650	)					-9	%					-9	%
Foreign Exchange (Loss) Gain										(42	)											(42	)					45												45
Interest Income and Other										1,308												1,308						1,418												1,418						-8	%					-8	%
Income Before Taxes										98,543						7,119						105,662						118,447						(155	)					118,292						-17	%					-6	%
Provision for Income Taxes (A)										22,486						2,767						25,253						31,024						(24	)					31,000						-28	%					-14	%
Net Income							$			76,057						4,352						80,409						87,423						(131	)					87,292						-13	%					-3	%
Earnings Per Share- Diluted (A)							$			1.29						0.07						1.36						1.46						-						1.46						-12	%					-1	%
Average Shares - Diluted										59,090						59,090						59,090						59,777						59,777						59,777

See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.

JOHN WILEY & SONS, INC.
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2015 AND 2014
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
						Second Quarter Ended											Six Months Ended
						October 31,											October 31,
						2015					2014						2015						2014
US GAAP Earnings Per Share - Diluted						$		0.74			$		0.90				$		1.29				$		1.46
Adjusted to exclude the following:
	Restructuring Charges (A)							0.04					-						0.07						-
Adjusted Earnings Per Share - Diluted						$		0.78			$		0.90				$		1.36				$		1.46

		NOTES TO UNAUDITED FINANCIAL STATEMENTS
Adjustments:
(A)		RESTRUCTURING CHARGES: The adjusted results for the three and six months ended October 31, 2015 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $3.7 million or $0.04 per share, and $7.1 million or $0.07 per share, respectively. The adjusted results for the six months ended October 31, 2014 exclude a restructuring credit of $(0.2) million.

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 SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2015 AND 2014
(in thousands)
SECOND QUARTER ENDED OCTOBER 31,
						2015																				2014																		% Change
							US GAAP							Adjustments (A)						Adjusted						US GAAP						Adjustments (A)						Adjusted						US GAAP						Adjusted excl. FX
Revenue
Research					$			238,388						-						238,388						264,825						-						264,825						-10	%					-5	%
Professional Development								99,166						-						99,166						105,667						-						105,667						-6	%					-3	%
Education								95,808						-						95,808						106,480						-						106,480						-10	%					-8	%
Total					$			433,362						-						433,362						476,972						-						476,972						-9	%					-5	%
Direct Contribution to Profit
Research					$			110,881						496						111,377						122,744						-						122,744						-10	%					-5	%
Professional Development								41,497						195						41,692						37,597						-						37,597						10	%					14	%
Education								35,849						205						36,054						40,741						-						40,741						-12	%					-9	%
Total					$			188,227						896						189,123						201,082						-						201,082						-6	%					-2	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research					$			67,099						496						67,595						80,218						-						80,218						-16	%					-11	%
Professional Development								18,757						195						18,952						9,799						-						9,799						91	%					95	%
Education								15,366						205						15,571						19,729						-						19,729						-22	%					-19	%
Total					$			101,222						896						102,118						109,746						-						109,746						-8	%					-3	%
Unallocated Shared Services and Admin. Costs								(40,957	)					2,798						(38,159	)					(33,742	)					-						(33,742	)					21	%					19	%
Operating Income					$			60,265						3,694						63,959						76,004						-						76,004						-21	%					-13	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services					$			(22,111	)					1,208						(20,903	)					(22,706	)					-						(22,706	)					-3	%					-3	%
Technology and Content Management								(62,030	)					(379	)					(62,409	)					(60,181	)					-						(60,181	)					3	%					8	%
Finance								(11,318	)					(496	)					(11,814	)					(12,644	)					-						(12,644	)					-10	%					-2	%
Other Administration								(32,503	)					2,465						(30,038	)					(29,547	)					-						(29,547	)					10	%					6	%
Total					$			(127,962	)					2,798						(125,164	)					(125,078	)					-						(125,078	)					2	%					4	%
SIX MONTHS ENDED OCTOBER 31,
						2015																				2014																		% Change
							US GAAP							Adjustments (A)						Adjusted						US GAAP						Adjustments (A)						Adjusted						US GAAP						Adjusted excl. FX
Revenue
Research					$			475,778						-						475,778						519,695						-						519,695						-8	%					-3	%
Professional Development								197,831						-						197,831						197,994						-						197,994						0	%					3	%
Education								182,734						-						182,734						197,200						-						197,200						-7	%					-5	%
Total					$			856,343						-						856,343						914,889						-						914,889						-6	%					-2	%
Direct Contribution to Profit
Research					$			217,694						866						218,560						237,478						(185	)					237,293						-8	%					-3	%
Professional Development								82,778						205						82,983						70,509						245						70,754						17	%					20	%
Education								59,137						194						59,331						69,304						51						69,355						-15	%					-11	%
Total					$			359,609						1,265						360,874						377,291						111						377,402						-5	%					0	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research					$			132,668						866						133,534						150,177						(185	)					149,992						-12	%					-5	%
Professional Development								37,766						205						37,971						17,322						245						17,567						118	%					119	%
Education								20,067						194						20,261						28,425						51						28,476						-29	%					-25	%
Total					$			190,501						1,265						191,766						195,924						111						196,035						-3	%					3	%
Unallocated Shared Services and Admin. Costs								(85,327	)					5,854						(79,473	)					(70,290	)					(266	)					(70,556	)					21	%					19	%
Operating Income					$			105,174						7,119						112,293						125,634						(155	)					125,479						-16	%					-6	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services					$			(43,341	)					1,965						(41,376	)					(46,924	)					384						(46,540	)					-8	%					-6	%
Technology and Content Management								(123,967	)					773						(123,194	)					(121,571	)					(557	)					(122,128	)					2	%					5	%
Finance								(24,067	)					(425	)					(24,492	)					(26,215	)					(93	)					(26,308	)					-8	%					-2	%
Other Administration								(63,060	)					3,541						(59,519	)					(56,947	)					-						(56,947	)					11	%					9	%
Total					$			(254,435	)					5,854						(248,581	)					(251,657	)					(266	)					(251,923	)					1	%					3	%

	(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.

JOHN WILEY & SONS, INC.
SEGMENT REVENUE by PRODUCT/SERVICE
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2015 AND 2014
(in thousands)
							Second Quarter																			Six Months
							Ended October 31,						% of				% Change									Ended October 31,						% of				% Change
							2015			2014			Revenue				excl. FX									2015			2014			Revenue				excl. FX
RESEARCH
Journal Revenue
Journal Subscriptions				$			162,796			172,146			68%				-1%						$			320,004			340,970			67%				-1%
Author-Funded Access							6,180			5,067			3%				30%									11,872			10,496			2%				22%
Licensing, Reprints, Backfiles, and Other							36,484			49,056			15%				-20%									75,797			92,554			16%				-12%
Total Journal Revenue							205,460			226,269			86%				-4%									407,673			444,020			86%				-2%
Books and References:
Print Books							23,065			26,161			10%				-8%									46,560			51,162			10%				-5%
Digital Books							7,750			9,800			3%				-18%									16,537			19,056			3%				-7%
Licensing and Other							2,113			2,595			1%				-15%									5,008			5,457			1%				1%
Total Books and References Revenue							32,928			38,556			14%				-11%									68,105			75,675			14%				-5%
Total Revenue				$			238,388			264,825			100%				-5%						$			475,778			519,695			100%				-3%
PROFESSIONAL DEVELOPMENT
Knowledge Services:
Print Books				$			49,246			53,028			50%				-4%						$			97,958			105,891			50%				-4%
Digital Books							11,938			14,120			12%				-13%									22,571			24,974			11%				-8%
Online Test Preparation and Certification							6,269			5,538			6%				13%									14,175			11,200			7%				27%
Other Knowledge Service Revenue							5,467			6,541			6%				-15%									10,905			12,313			6%				-9%
							72,920			79,227			74%				-5%									145,609			154,378			74%				-3%
Talent Solutions:
Assessment							15,758			15,187			16%				4%									28,985			28,309			15%				2%
Corporate Learning							10,488			11,253			11%				7%									23,237			15,307			12%				67%
							26,246			26,440			26%				5%									52,222			43,616			26%				25%
Total Revenue				$			99,166			105,667			100%				-3%						$			197,831			197,994			100%				3%
EDUCATION
Books:
Print Textbooks				$			31,059			41,700			32%				-22%						$			65,603			86,235			36%				-20%
Digital Books							8,889			8,500			9%				12%									14,643			14,204			7%				9%
							39,948			50,200			42%				-16%									80,246			100,439			44%				-16%
Custom Material							12,290			16,400			13%				-25%									35,033			35,972			19%				-3%
Course Workflow (WileyPLUS)							18,446			18,400			19%				2%									19,466			19,714			11%				2%
Online Program Management (Deltak)							23,195			19,699			24%				18%									43,697			35,936			24%				22%
Other Education Revenue							1,929			1,781			2%				8%									4,292			5,139			2%				-16%
Total Revenue				$			95,808			106,480			100%				-8%						$			182,734			197,200			100%				-5%
Note: Segment Revenue Categorization

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED
OCTOBER 31, 2015 AND 2014
(in thousands)
				Second Quarter Ended																						Six Months Ended
				October 31,																						October 31,
				2015					2014					% Change						% Change excl. FX						2015					2014					% Change						% Change excl. FX
Research:
Direct Contribution to Profit				110,881					122,744					-10	%					-5	%					217,694					237,478					-8	%					-3	%
Restructuring Charges (Credits) (A)				496					-																	866					(185	)
Adjusted Direct Contribution to Profit				111,377					122,744					-9	%					-5	%					218,560					237,293					-8	%					-3	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(10,085	)				(11,441	)				-12	%					-7	%					(20,264	)				(23,419	)				-13	%					-7	%
Technology and Content Management				(25,749	)				(24,632	)				5	%					7	%					(49,805	)				(49,575	)				0	%					4	%
Occupancy and Other				(7,948	)				(6,453	)				23	%					31	%					(14,957	)				(14,307	)				5	%					12	%
Adjusted Contribution to Profit (after allocated				67,595					80,218					-16	%					-11	%					133,534					149,992					-11	%					-5	%
Shared Services and Admin. Costs)
Professional Development:
Direct Contribution to Profit				41,497					37,597					10	%					13	%					82,778					70,509					17	%					20	%
Restructuring Charges (A)				195					-																	205					245
Adjusted Direct Contribution to Profit				41,692					37,597					11	%					14	%					82,983					70,754					17	%					20	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(6,783	)				(7,969	)				-15	%					-11	%					(13,656	)				(16,270	)				-16	%					-12	%
Technology and Content Management				(10,254	)				(12,227	)				-16	%					-14	%					(20,058	)				(23,172	)				-13	%					-11	%
Occupancy and Other				(5,703	)				(7,602	)				-25	%					-21	%					(11,298	)				(13,745	)				-18	%					-14	%
Adjusted Contribution to Profit (after allocated				18,952					9,799					93	%					95	%					37,971					17,567					116	%					119	%
Shared Services and Admin. Costs)
Education:
Direct Contribution to Profit				35,849					40,741					-12	%					-10	%					59,137					69,304					-15	%					-11	%
Restructuring Charges (A)				205					-																	194					51
Adjusted Direct Contribution to Profit				36,054					40,741					-12	%					-9	%					59,331					69,355					-14	%					-11	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(3,740	)				(3,213	)				16	%					26	%					(7,165	)				(6,545	)				9	%					16	%
Technology and Content Management				(12,592	)				(14,197	)				-11	%					-10	%					(23,810	)				(27,536	)				-14	%					-11	%
Occupancy and Other				(4,151	)				(3,602	)				15	%					18	%					(8,095	)				(6,798	)				19	%					22	%
Adjusted Contribution to Profit (after allocated				15,571					19,729					-21	%					-19	%					20,261					28,476					-29	%					-25	%
Shared Services and Admin. Costs)
Total Adjusted Contribution to Profit (after				102,118					109,746					-7	%					-3	%					191,766					196,035					-2	%					3	%
allocated Shared Services and Admin. Costs)
Unallocated Shared Services and Admin. Costs:
Unallocated Shared Services and Admin. Costs				(40,957	)				(33,742	)				21	%					28	%					(85,327	)				(70,290	)				21	%					28	%
Restructuring Charges (Credits) (A)				2,798					-																	5,854					(266	)
Adjusted Unallocated Shared Services and Admin. Costs				(38,159	)				(33,742	)				13	%					19	%					(79,473	)				(70,556	)				13	%					19	%
Adjusted Operating Income				63,959					76,004					-16	%					-13	%					112,293					125,479					-11	%					-6	%

(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.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
						October 31,								April 30,
						2015				2014				2015
Current Assets
Cash & cash equivalents				$		308,235				198,912				457,441
Accounts receivable						183,447				204,424				147,183
Inventories						58,154				70,941				63,779
Prepaid and other						68,951				66,233				72,516
Total Current Assets						618,787				540,510				740,919
Product Development Assets						55,432				58,851				69,589
Technology, Property and Equipment						205,362				190,811				193,010
Intangible Assets						915,174				992,618				917,621
Goodwill						965,571				1,003,290				962,367
Income Tax Deposits						59,810				64,036				57,098
Other Assets						62,691				62,659				63,639
Total Assets						2,882,827				2,912,775				3,004,243
Current Liabilities
Short-term debt						150,000				50,000				100,000
Accounts and royalties payable						161,282				180,033				161,465
Deferred revenue						150,716				163,902				372,051
Accrued employment costs						61,790				66,737				93,922
Accrued income taxes						9,654				10,127				9,484
Accrued pension liability						4,602				4,625				4,594
Other accrued liabilities						55,355				52,976				62,167
Total Current Liabilities						593,399				528,400				803,683
Long-Term Debt						739,051				749,513				650,090
Accrued Pension Liability						196,094				155,497				209,727
Deferred Income Tax Liabilities						203,499				234,685				198,947
Other Long-Term Liabilities						83,111				82,278				86,756
Shareholders' Equity						1,067,673				1,162,402				1,055,040
Total Liabilities & Shareholders' Equity				$		2,882,827				2,912,775				3,004,243

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW
(in thousands)
								Six Months Ended
								October 31,
								2015					2014
Operating Activities:
Net income						$		76,057					87,423
Amortization of intangibles								25,072					25,754
Amortization of composition costs								19,967					20,810
Depreciation of technology, property and equipment								32,820					30,510
Restructuring charges (credits)								7,119					(155	)
Restructuring payments								(18,339	)				(16,267	)
Share-based compensation expense								8,112					8,118
Excess tax benefits from share-based compensation								(527	)				(1,774	)
Royalty advances								(45,553	)				(47,997	)
Earned royalty advances								60,163					64,939
Other non-cash charges and credits								18,115					20,436
Change in deferred revenue								(225,115	)				(223,731	)
Net change in operating assets and liabilities								(84,410	)				(62,202	)
Cash Used for Operating Activities								(126,519	)				(94,136	)
Investments in organic growth:
Composition spending								(20,033	)				(16,934	)
Additions to technology, property and equipment								(46,177	)				(29,584	)
Free Cash Flow								(192,729	)				(140,654	)
Other Investing and Financing Activities:
Acquisitions, net of cash								(16,681	)				(172,145	)
Escrowed proceeds from sale of consumer publishing programs								-					1,100
Repayment of long-term debt								(112,641	)				(228,051	)
Borrowings of long-term debt								201,600					325,070
Borrowings of short-term Debt								50,000					-
Change in book overdrafts								285					(8,123	)
Cash dividends								(35,166	)				(34,402	)
Purchase of treasury shares								(44,703	)				(41,534	)
Proceeds from exercise of stock options and other								465					18,876
Excess tax benefits from share-based compensation								527					1,774
Cash Provided by (Used for) Investing and Financing Activities								43,686					(137,435	)
Effects of Exchange Rate Changes on Cash								(163	)				(9,376	)
Decrease in Cash and Cash Equivalents for Period						$		(149,206	)				(287,465	)
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
Composition spending						$		(20,033	)				(16,934	)
Additions to technology, property and equipment								(46,177	)				(29,584	)
Acquisitions, net of cash								(16,681	)				(172,145	)
Escrowed proceeds from sale of consumer publishing programs								-					1,100
Cash Used for Investing Activities						$		(82,891	)				(217,563	)
Financing Activities:
Cash Used for Investing and Financing Activities						$		43,686					(137,435	)
Excluding:
Acquisitions, net of cash								(16,681	)				(172,145	)
Escrowed proceeds from sale of consumer publishing programs								-					1,100
Cash Provided by Financing Activities						$		60,367					33,610

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.

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