Press Release Details

• Third quarter revenue of $436.5 million, up 3% over prior year on a constant currency basis (flat on a US GAAP basis) primarily due to the impact of shifting to time-based journal subscriptions (+$29M)
• Third quarter journal subscription revenue up 23% on a constant currency basis (+19% US GAAP) primarily due to the impact of shifting to time-based journal subscriptions (+$29M); excluding the impact of the subscription shift and currency, journal subscription revenue was even
• Third quarter adjusted EPS of $0.92, up 37% on a constant currency basis primarily due to shift to time-based subscriptions (+$0.33). Adjusted EPS excludes certain charges and credits further described below and in the attached financial schedules. EPS on a US GAAP basis was $0.82.
• Four new university Online Program Management partners signed – George Mason (VA), Seton Hall (NJ), St. John’s (NY), and Vlerick (Belgium); 19 new programs
• Reaffirming full-year outlook of mid-single digit decline in adjusted EPS but revising revenue guidance from flat to a low-single digit decline due to market weakness for books. Both exclude the impact of foreign exchange, the shift to time-based journal subscriptions, and acquisitions

John Wiley & Sons, Inc. (NYSE:JWa)(NYSE:JWb), a global research and learning company, today announced the following results for the third quarter of fiscal year 2017, ending January 31:

						% Change
$ millions		FY17		FY16		Excluding FX		Including FX
Revenue:
Q3		$436.5		$436.4		3%		0%
Nine Months		$1,266.3		$1,292.7		1%		(2%)
GAAP EPS:
Q3		$0.82		$0.61				34%
Nine Months		$1.15		$1.90				(39%)
Adjusted EPS:
Q3		$0.92		$0.67		37%		37%
Nine Months		$2.18		$2.04		9%		7%
Adjusted EPS exclude tax charges and credits, restructuring charges and credits, and pension settlement as more fully described in the attached financial schedules.

Management Commentary

“Results were mixed this quarter,” said Mark Allin, Wiley’s President and CEO. “Research revenue and earnings were fully in line with our expectations, with steady performance from journal subscriptions and double-digit growth from author-funded access. The Solutions business continued to post double-digit revenue growth and very strong profit improvement. We are encouraged by the momentum in the Online Program Management business, with four new partners and nineteen new programs. Publishing revenue showed a significant decline due to market weakness in Books and Reference Material, particularly print.”

Fiscal Year 2017 Outlook

Wiley is reaffirming its fiscal year 2017 operational outlook of mid-single digit decline in adjusted EPS and lowering its operational revenue outlook from flat to a low-single digit decline due to further weakness in print book markets. Operationally speaking, revenue and adjusted EPS for the nine months were down 3% and 6%, respectively. Note, the adjusted full year outlook excludes foreign exchange, the favorable impact from shifting to time-based journal subscription agreements (+$34 million in revenue and +$0.38 in EPS), and the partial year revenue contribution (approximately +$20 million) and EPS dilution (approximately -$0.10) of recent acquisitions. Also note, the fiscal year 2017 impact of the shift to time-based journal agreements was projected to be +$37 million of revenue and +$0.42 of EPS; however, due to the prolonged weakness in the British Pound, the FY17 impact has lowered to+$34 million and +0.38 per share.

Foreign Exchange (FX)

Note that foreign exchange was adverse to third quarter revenue by $12.9 million, neutral to EPS and adverse to nine month revenue and adjusted EPS by $36.8 million and $0.05, respectively. Wiley generates approximately half of its revenue from outside the United States and is therefore exposed to foreign exchange rate fluctuations, particularly in relation to the euro and pound sterling. The weighted average rates for fiscal 2016 were 1.11 and 1.50, 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” contribution to profit and EPS, which exclude a previously announced tax charge; restructuring charges; a pension settlement charge related to voluntary lump sum buyouts; and certain deferred tax benefits as more fully described in the attached financial schedules. Variances to adjusted 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.

Third Quarter Summary

• Third quarter revenue was flat on a US GAAP basis at $436.5 million, and increased 3% excluding the adverse impact of foreign exchange. Higher revenue on a constant currency basis was primarily driven by the favorable impact of the shift to time-based subscriptions (+$29M), the contribution of the Atypon acquisition (+$8M) and growth in Solutions (+$7M), partially offset by a continued decline in Publishing (-$25M) and the impact of an unusually large backfile sale in the year-ago period (-$10M). Excluding the favorable subscription shift and the contribution from Atypon, revenue on a constant currency base was down 5% due to the prior year backfile sale and current period declines in book sales (-18%), which offset double-digit growth in Solutions (+14%). Nine month revenue was down 2% on a US GAAP basis to $1,266 million, but up 1% excluding the impact of currency.
• Third quarter EPS increased 34% on a US GAAP basis to $0.82, or 37% on an adjusted basis to $0.92. Adjusted EPS excludes restructuring charges in the current quarter ($0.10) and prior year period ($0.16); and a deferred tax benefit in the prior year period related to a future tax rate reduction in the UK ($0.10). The increase in Adjusted EPS was mainly due to the favorable impact of the shift to time-based journal subscriptions (+$0.33) and one-time tax benefits (+$0.12), partially offset by the impact of lower revenue in Publishing, dilution from the Atypon and Ranku acquisitions (-$0.03), and the impact of an unusually large backfile sale in the year-ago period (-$0.10). Excluding the shift to time-based subscriptions and Atypon and Ranku dilution, third quarter adjusted EPS was down 5%. Nine month EPS was down 39% on a US GAAP basis to $1.15 primarily due to the second quarter $0.82 one-time tax charge. Nine month adjusted EPS at constant currency was up 9%.
• Restructuring Activity: Wiley recorded a $9.1 million restructuring charge in the quarter primarily related to the consolidation of facilities and severance provisions related to additional efficiency gains.
• Net Debt and Cash Position: Net debt (debt less cash and cash equivalents) at the end of January was $383.4 million compared to $428.9 million as of January 31, 2017. Cash and cash equivalents as of January 31, 2017 were $482.3 million.
• Free Cash Flow less Composition Costs (note, this is identical to the free cash flow metric previously reported but with a modified label): Free Cash Flow less Composition Costs was $119.5 million for the first nine months compared to $18.9 million in the prior year primarily due to earlier journal cash collections (timing), but also lower tax payments and lower restructuring payments, partially offset by higher capital spending.
• Share Repurchases: Wiley repurchased 255,200 shares this quarter at a cost of $14.1 million, an average of $55.14 per share. Over 4 million shares remain in the current authorized repurchase programs.

RESEARCH (JOURNALS AND ATYPON)

• Revenue: Third quarter revenue of $205.8 million rose 12% on a US GAAP basis, or 17% on a constant currency basis. Constant currency performance was driven by the favorable impact of shifting to time-based journal subscriptions (+$29M), the contribution from the Atypon acquisition (+$8M), steady underlying performance from Journal Subscriptions, and double-digit growth in author funded access (+15%), which offset a decline in Licensing, Reprints, Backfiles, and Other (-14%), largely as a result of the large backfile sale in the prior year period. For the nine months, Research revenue was up 4% on a US GAAP basis but increased 8% at constant currency primarily due to the shift to time-based journal subscriptions (+$34M) and 4-month contribution from Atypon (+$10M).

• Contribution to Profit: Third quarter contribution to profit (CTP) of $52.5 million was up 19% on a US GAAP basis or 17% on an adjusted basis primarily due to the shift to time-based journal subscriptions (+$25M CTP), which more than offset the large, high-margin backfile sale in the prior year period; costs associated with Atypon; higher technology costs; and other spending to support society journals. For the first nine months, contribution to profit was up 1% on a US GAAP basis, or 4% on an adjusted basis, including the benefit from the shift to time-based journal subscriptions ($29M).
• Calendar Year 2017 Journal Subscriptions: As of the end of January, calendar year 2017 Journal Subscriptions were up 5% on a constant currency basis due to earlier renewals resulting from the introduction of database model subscriptions, which provided library-wide access for our largest customers (note, 87% of CY17 targeted business has been contracted). Wiley expects full year calendar year 2017 subscription growth to be about 1%.
• Society Publishing Agreements: No new society contracts were signed in the three month period; 78 were renewed/extended with combined annual revenue of $57 million; and five contracts with annual revenue of $0.6 million were not renewed.

PUBLISHING (BOOKS, COURSE WORKFLOW, ONLINE TEST PREPARATION)

• Revenue: Third quarter revenue declined 15% on a US GAAP basis to $171.4 million, or 13% at constant currency due to continued market pressure on Books and Reference Material (-18%). Constant currency growth in Online Test Preparation (+29%), Course Workflow (+7%) and Licensing and Other (+7%) was more than offset by a 27% decline in Education Books, which continue to be impacted by rental and other market forces, and a 12% decline in STM and Professional Books, which saw a continued decline in print revenue. Also note, Wiley recorded an unusually large STM online book sale (+$4 million) in the prior year period. For the nine months, Publishing revenue declined 13% on a US GAAP basis, or 11% at constant currency.
• Contribution to Profit: Third quarter contribution to profit fell 18% on a US GAAP basis to $38.8 million, or 21% on an adjusted basis. Lower profit was primarily due to the Book revenue decline, partially offset by additional efficiency savings generated from the Company’s restructuring program. For the nine months, contribution to profit on both a US GAAP and adjusted basis was down 15%.

SOLUTIONS (ONLINE PROGRAM MANAGEMENT, CORPORATE LEARNING AND ASSESSMENT)

• Revenue: Third quarter revenue rose 14% on both a US GAAP and constant currency basis to $59.2 million. Growth at constant currency was driven by Online Program Management (+15%) and Corporate Learning (+20%). Professional Assessment grew 5%. For the nine months, Solutions revenue was up 13% on both a US GAAP and constant currency basis.
• Contribution to Profit: Third quarter contribution to profit on a US GAAP basis rose 105% to $3.6 million, or 137% on an adjusted basis. Growth at constant currency was due to revenue growth and improved operating efficiency. For the nine months, Contribution to Profit on a US GAAP basis was $9.1 million, or $10.7 million on an adjusted basis, as compared to $0.2 million and $0.5 million, respectively, in the prior year period.
• Online Program Management: Wiley signed four new partners in the quarter – George Mason (VA), Seton Hall (NJ), St. John’s (NY), and Vlerick Business School (Belgium). One non-US partnership was cancelled. Wiley also signed 19 new programs in the quarter and discontinued six. As of January 31, 2017, Wiley had 40 university partners and 244 programs under contract, compared to 37 partners and 231 programs at the end of last quarter.

Earnings Conference Call

• Scheduled for today, March 7, at 10:00 a.m. (ET)
• 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 (800) 381-2652 and enter the participant code 9058430#.
• International callers, please dial (719) 325-2190 and enter the participant code 9058430#.
• 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 research and learning company. Through the Research segment, the Company provides scientific, technical, medical, and scholarly journals, as well as related content and services, for academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. The Publishing segment provides scientific (STM), professional development, and education books and related content, as well as test preparation services and course workflow tools, to libraries, corporations, students, professionals, and researchers. In Solutions, Wiley provides online program management services for higher education institutions, and learning, development, and assessment services for businesses and professionals.

JOHN WILEY & SONS, INC.
UNAUDITED SUMMARY OF OPERATIONS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2017 AND 2016
(in thousands, except per share amounts)
THIRD QUARTER ENDED JANUARY 31,
				2017									2016									% Change
				US GAAP			Adjustments			Adjusted			US GAAP			Adjustments			Adjusted			US GAAP			Adjusted excl. FX
Revenue			$	436,456			-			436,456			436,393			-			436,393			0	%		3	%
Costs and Expenses
	Cost of Sales			116,405			-			116,405			120,215			-			120,215			-3	%		0	%
	Operating and Administrative			247,278			-			247,278			250,667			-			250,667			-1	%		2	%
	Restructuring Charges (A)			9,118			(9,118	)		-			13,713			(13,713	)		-
	Amortization of Intangibles			12,495			-			12,495			12,179			-			12,179			3	%		8	%
	Total Costs and Expenses			385,296			(9,118	)		376,178			396,774			(13,713	)		383,061			-3	%		1	%
Operating Income				51,160			9,118			60,278			39,619			13,713			53,332			29	%		14	%
	Operating Margin			11.7	%		-			13.8	%		9.1	%		-			12.2	%
Interest Expense				(4,931	)		-			(4,931	)		(4,590	)		-			(4,590	)		7	%		7	%
Foreign Exchange Gain				2,118			-			2,118			1,431			-			1,431
Interest Income and Other				637			-			637			786			-			786			-19	%		-16	%
Income Before Taxes				48,984			9,118			58,102			37,246			13,713			50,959			32	%		14	%
Provision for Income Taxes (A)				1,565			3,359			4,924			1,728			10,000			11,728			-9	%		-58	%
Net Income			$	47,419			5,759			53,178			35,518			3,713			39,231			34	%		35	%
Earnings Per Share- Diluted (A)			$	0.82			0.10			0.92			0.61			0.06			0.67			34	%		37	%
Average Shares - Diluted				58,012			58,012			58,012			58,204			58,204			58,204
NINE MONTHS ENDED JANUARY 31,
				2017									2016									% Change
				US GAAP			Adjustments			Adjusted			US GAAP			Adjustments			Adjusted			US GAAP			Adjusted excl. FX
Revenue			$	1,266,329			-			1,266,329			1,292,736			-			1,292,736			-2	%		1	%
Costs and Expenses
	Cost of Sales			341,457			-			341,457			356,357			-			356,357			-4	%		-1	%
	Operating and Administrative (B)			729,775			(8,842	)		720,933			733,503			-			733,503			-1	%		1	%
	Restructuring Charges (A)			15,045			(15,045	)		-			20,832			(20,832	)		-
	Amortization of Intangibles			37,321			-			37,321			37,251			-			37,251			0	%		5	%
	Total Costs and Expenses			1,123,598			(23,887	)		1,099,711			1,147,943			(20,832	)		1,127,111			-2	%		0	%
Operating Income				142,731			23,887			166,618			144,793			20,832			165,625			-1	%		3	%
	Operating Margin			11.3	%		-			13.2	%		11.2	%		-			12.8	%
Interest Expense				(13,362	)		-			(13,362	)		(12,487	)		-			(12,487	)		7	%		7	%
Foreign Exchange Gain				1,979			-			1,979			1,389			-			1,389
Interest Income and Other				1,365			-			1,365			2,094			-			2,094			-35	%		-34	%
Income Before Taxes				132,713			23,887			156,600			135,789			20,832			156,621			-2	%		3	%
Provision for Income Taxes (C,D)				65,745			(36,244	)		29,501			24,214			12,767			36,981			172	%		-17	%
Net Income			$	66,968			60,131			127,099			111,575			8,065			119,640			-40	%		9	%
Earnings Per Share- Diluted			$	1.15			1.03			2.18			1.90			0.14			2.04			-39	%		9	%
Average Shares - Diluted				58,181			58,181			58,181			58,711			58,711			58,711
See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.

JOHN WILEY & SONS, INC.
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2017 AND 2016
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
				Third Quarter Ended								Nine Months Ended
				JANUARY 31,								JANUARY 31,
				2017			2016					2017				2016
US GAAP Earnings Per Share - Diluted				$	0.82		$	0.61				$	1.15			$	1.90
Adjusted to exclude the following:
	Restructuring Charges (A)				0.10			0.16					0.17				0.24
	One-time - Pension Settlement (B)				-			-					0.09				-
	Unfavorable Tax Settlement (C)				-			-					0.82				-
	Deferred Income Tax Benefit on UK Rate Change (D)				-			(0.10	)				(0.04	)			(0.10	)
Adjusted Earnings Per Share - Diluted				$	0.92		$	0.67				$	2.18			$	2.04

NOTES TO UNAUDITED FINANCIAL STATEMENTS
Adjustments:
A		Restructuring Charges: The adjusted results for the three and nine months ended January 31, 2017 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $9.1 million or $0.10 per share, and $15.0 million or $0.17 per share, respectively. The adjusted results for the three and nine months ended January 31, 2016 exclude restructuring charges of $13.7 million or $0.16 per share and $20.8 million or $0.24 per share, respectively.
B		In fiscal year 2017, the Company announced a voluntary, limited-time opportunity for terminated vested employees who were participants in the U.S. defined benefit retirement plan to elect a single lump sum payment of accumulated benefits. The aggregate amount of payments made under this one time election was $28.3 million. The total charge, recorded in the second quarter of fiscal year 2017, including a prorata portion of the unamortized net actuarial loss was $8.8 million or $0.09 per share.
C		As previously disclosed and as reported in the Company's SEC filings, the Company was appealing an unfavorable tax ruling in Germany related to tax benefits obtained through an increase in the tax deductible basis of certain merged German subsidiaries. In September 2016, the German Federal Fiscal Court issued an unfavorable final judgement in Wiley's longstanding tax appeal. As a consequence, the Company reported a $47.5 million charge, or $0.82 per share in the second quarter of fiscal year 2017.
D		Deferred Income Tax Benefit on UK Rate Change: The adjusted results exclude deferred tax benefits of $2.6 million, or $0.04 per share, for the nine months ended January 31, 2017, and $5.9 million, or $0.10 per share for both the three and nine months ended January 31, 2016. The benefits in these periods are associated with changes in tax legislation enacted in the United Kingdom which reduced the U.K. corporate income tax rates. The benefits reflect the remeasurement of the Company's deferred tax balances to the new income tax rates and had no current cash tax impact. The fiscal year 2016 legislation reduced the U.K. income tax rates to 19% effective April 1, 2017 and 18% effective April 1, 2020, and the fiscal year 2017 legislation further reduced the April 1, 2020 statutory income tax rate to 17%.
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 THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2017 AND 2016
(in thousands)
THIRD QUARTER ENDED JANUARY 31,
			2017										2016										% Change
			US GAAP			Adjustments (A,B)				Adjusted			US GAAP			Adjustments (A,B)				Adjusted			US GAAP				Adjusted excl. FX
Revenue
Research		$	205,769			-				205,769			183,568			-				183,568			12	%			17	%
Publishing			171,440			-				171,440			200,645			-				200,645			-15	%			-13	%
Solutions			59,247			-				59,247			52,180			-				52,180			14	%			14	%
Total		$	436,456			-				436,456			436,393			-				436,393			0	%			3	%
Direct Contribution to Profit
Research		$	89,182			517				89,699			74,876			2,497				77,373			19	%			19	%
Publishing			78,444			1,027				79,471			92,602			4,121				96,723			-15	%			-16	%
Solutions			12,427			1,095				13,522			9,995			245				10,240			24	%			32	%
Total		$	180,053			2,639				182,692			177,473			6,863				184,336			1	%			1	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research		$	52,508			517				53,025			43,944			2,497				46,441			19	%			17	%
Publishing			38,807			1,027				39,834			47,200			4,121				51,321			-18	%			-21	%
Solutions			3,591			1,095				4,686			1,751			245				1,996			105	%			137	%
Total		$	94,906			2,639				97,545			92,895			6,863				99,758			2	%			0	%
Unallocated Shared Services and Admin. Costs			(43,746	)		6,479				(37,267	)		(53,276	)		6,850				(46,426	)		-18	%			-16	%
Operating Income		$	51,160			9,118				60,278			39,619			13,713				53,332			29	%			14	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services		$	(23,415	)		5,185				(18,230	)		(22,430	)		2,355				(20,075	)		4	%			-5	%
Technology and Content Management			(62,464	)		(71	)			(62,535	)		(69,633	)		2,670				(66,963	)		-10	%			-5	%
Finance			(11,163	)		50				(11,113	)		(14,208	)		2,740				(11,468	)		-21	%			-1	%
Other Administration			(31,851	)		1,315				(30,536	)		(31,583	)		(915	)			(32,498	)		1	%			-4	%
Total		$	(128,893	)		6,479				(122,414	)		(137,854	)		6,850				(131,004	)		-7	%			-4	%
NINE MONTHS ENDED JANUARY 31,
			2017										2016										% Change
			US GAAP			Adjustments (A,B)				Adjusted			US GAAP			Adjustments (A,B)				Adjusted			US GAAP				Adjusted excl. FX
Revenue
Research		$	618,987			-				618,987			595,932			-				595,932			4	%			8	%
Publishing			479,701			-				479,701			548,656			-				548,656			-13	%			-11	%
Solutions			167,641			-				167,641			148,148			-				148,148			13	%			13	%
Total		$	1,266,329			-				1,266,329			1,292,736			-				1,292,736			-2	%			1	%
Direct Contribution to Profit
Research		$	284,908			677				285,585			269,615			3,363				272,978			6	%			8	%
Publishing			214,454			1,596				216,050			242,620			4,380				247,000			-12	%			-11	%
Solutions			34,862			1,619				36,481			24,854			385				25,239			40	%			44	%
Total		$	534,224			3,892				538,116			537,089			8,128				545,217			-1	%			1	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research		$	173,235			677				173,912			171,357			3,363				174,720			1	%			4	%
Publishing			94,639			1,596				96,235			111,345			4,380				115,725			-15	%			-15	%
Solutions			9,097			1,619				10,716			160			385				545
Total		$	276,971			3,892				280,863			282,862			8,128				290,990			-2	%			0	%
Unallocated Shared Services and Admin. Costs			(134,240	)		19,995				(114,245	)		(138,069	)		12,704				(125,365	)		-3	%			-5	%
Operating Income		$	142,731			23,887				166,618			144,793			20,832				165,625			-1	%			3	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services		$	(66,720	)		9,781				(56,939	)		(64,259	)		4,320				(59,939	)		4	%			-1	%
Technology and Content Management			(201,420	)		1,662				(199,758	)		(194,022	)		3,443				(190,579	)		4	%			7	%
Finance			(34,318	)		(296	)			(34,614	)		(37,093	)		2,315				(34,778	)		-7	%			2	%
One-time Pension Settlement			(8,842	)		8,842				-			-			-				-
Other Administration			(80,193	)		6				(80,187	)		(96,922	)		2,626				(94,296	)		-17	%			-13	%
Total		$	(391,493	)		19,995				(371,498	)		(392,296	)		12,704				(379,592	)		0	%			0	%
(A) See the accompanying Notes to Unaudited Financial Statements for a description of the Adjustment.

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2017 AND 2016
(in thousands)
						Third Quarter Ended																Nine Months Ended
						January 31,																January 31,
						2017			2016			% Change				% Change excl. FX						2017			2016			% Change				% Change excl. FX
Research:
	Direct Contribution to Profit				$	89,182			74,876			19	%			22	%			$		284,908			269,615			6	%			9	%
	Restructuring Charges (A)					517			2,497													677			3,363
	Adjusted Direct Contribution to Profit					89,699			77,373			16	%			19	%					285,585			272,978			5	%			8	%
	Allocated Shared Services and Admin. Costs:					(36,674	)		(30,932	)		19	%			21	%					(111,673	)		(98,258	)		14	%			16	%
	Adjusted Contribution to Profit (after allocated				$	53,025			46,441			14	%			17	%			$		173,912			174,720			0	%			4	%
		Shared Services and Admin. Costs)
Publishing:
	Direct Contribution to Profit				$	78,444			92,602			-15	%			-14	%			$		214,454			242,620			-12	%			-10	%
	Restructuring Charges (A)					1,027			4,121													1,596			4,380
	Adjusted Direct Contribution to Profit					79,471			96,723			-18	%			-16	%					216,050			247,000			-13	%			-11	%
	Allocated Shared Services and Admin. Costs:					(39,637	)		(45,402	)		-13	%			-11	%					(119,815	)		(131,275	)		-9	%			-7	%
	Adjusted Contribution to Profit (after allocated				$	39,834			51,321			-22	%			-21	%			$		96,235			115,725			-17	%			-15	%
		Shared Services and Admin. Costs)
Solutions:
	Direct Contribution to Profit				$	12,427			9,995			24	%			25	%			$		34,862			24,854			40	%			40	%
	Restructuring Charges (A)					1,095			245													1,619			385
	Adjusted Direct Contribution to Profit					13,522			10,240			32	%			32	%					36,481			25,239			45	%			44	%
	Allocated Shared Services and Admin. Costs:					(8,836	)		(8,244	)		7	%			7	%					(25,765	)		(24,694	)		4	%			4	%
	Adjusted Contribution to Profit (after allocated				$	4,686			1,996			135	%			137	%			$		10,716			545
		Shared Services and Admin. Costs)
Total Adjusted Contribution to Profit (after					$	97,545			99,758			-2	%			0	%			$		280,863			290,990			-3	%			0	%
	allocated Shared Services and Admin. Costs)
Unallocated Shared Services and Admin. Costs:
	Unallocated Shared Services and Admin. Costs				$	(43,746	)		(53,276	)		-18	%			-15	%			$		(134,240	)		(138,069	)		-3	%			0	%
	Restructuring Charges (A)					6,479			6,850													11,153			12,704
	One-time - Pension Settlement (B)					-			-													8,842			-
	Adjusted Unallocated Shared Services and Admin. Costs				$	(37,267	)		(46,426	)		-20	%			-16	%			$		(114,245	)		(125,365	)		-9	%			-5	%
Adjusted Operating Income					$	60,278			53,332			13	%			14	%			$		166,618			165,625			1	%			3	%
(A) See the accompanying Notes to Unaudited Financial Statements for a description of the Adjustment.

JOHN WILEY & SONS, INC.
SEGMENT REVENUE by PRODUCT/SERVICE
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2017 AND 2016
(in thousands)
					Third Quarter										Nine Months
					Ended January 31,				% of		% Change				Ended January 31,				% of		% Change
					2017		2016		Revenue		excl. FX				2017		2016		Revenue		excl. FX
RESEARCH
	Journal Revenue
		Journal Subscriptions		$	149,909		125,669		73%		23%			$	472,401		450,970		76%		9%
		Author-Funded Access			6,915		6,429		3%		15%				21,851		18,301		4%		27%
		Licensing, Reprints, Backfiles, and Other			40,983		51,470		20%		-14%				114,295		126,661		18%		-5%
		Total Journal Revenue			197,807		183,568		96%		12%				608,547		595,932		98%		6%
		Platform Services (Atypon)			7,962		-		4%						10,440		-		2%
		Total Revenue		$	205,769	#	183,568		100%		17%			$	618,987		595,932		100%		8%
Publishing
		STM and Professional Books		$	76,899		90,830		45%		-12%			$	215,734		251,742		45%		-12%
		Education Books			50,343		69,502		29%		-27%				162,669		203,333		34%		-19%
		Total Books and Reference Material			127,242		160,332		74%		-18%				378,403		455,075		79%		-15%
		Course Workflow (WileyPLUS)			23,464		21,894		14%		7%				44,170		41,359		9%		7%
		Online Test Preparation and Certification			8,508		6,627		5%		29%				25,585		21,472		5%		20%
		Licensing, Distribution, Advertising and Other			12,226		11,792		7%		7%				31,543		30,750		7%		6%
		Total Revenue		$	171,440		200,645		100%		-13%			$	479,701		548,656		100%		-11%
Solutions
	Online Program Management				30,016		26,057		51%		15%				81,195		69,754		48%		16%
	Professional Assessment				13,783		13,162		23%		5%				43,451		42,196		26%		3%
	Corporate Learning				15,448		12,961		26%		20%				42,995		36,198		26%		19%
		Total Revenue		$	59,247		52,180		100%		14%			$	167,641		148,148		100%		13%
Total				$	436,456		436,393				3%			$	1,266,329		1,292,736				1%

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
					January 31,						April 30,
					2017			2016			2016
Current Assets
	Cash & cash equivalents			$	482,321			535,859			363,806
	Accounts receivable				220,845			235,806			167,638
	Inventories				49,247			53,747			57,779
	Prepaid and other				124,058			71,529			81,456
	Total Current Assets				876,471			896,941			670,679
Product Development Assets					90,267			73,906			72,126
Technology, Property and Equipment					241,385			207,515			214,770
Intangible Assets					834,252			872,224			877,007
Goodwill					981,453			938,796			951,663
Income Tax Deposits					-			59,591			62,912
Other Assets					79,210			65,435			71,939
	Total Assets				3,103,038			3,114,408			2,921,096
Current Liabilities
	Short-term debt				-			150,000			-
	Accounts and royalties payable				210,853			205,724			166,222
	Deferred revenue				403,269			305,541			426,489
	Accrued employment costs				83,276			82,400			97,902
	Accrued income taxes				9,084			10,023			9,450
	Accrued pension liability				5,458			4,590			5,492
	Other accrued liabilities				78,094			68,658			76,252
	Total Current Liabilities				790,034			826,936			781,807
Long-Term Debt					865,700			814,728			605,007
Accrued Pension Liability					178,023			185,976			224,170
Deferred Income Tax Liabilities					182,571			192,220			189,868
Other Long-Term Liabilities					75,250			78,465			83,138
Shareholders' Equity					1,011,460			1,016,083			1,037,106
	Total Liabilities & Shareholders' Equity			$	3,103,038			3,114,408			2,921,096

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW *
(in thousands)
							Nine Months Ended
							January 31,
							2017			2016
Operating Activities:
	Net income				$		66,968			111,575
	Amortization of intangibles						37,321			37,251
	Amortization of composition costs						29,502			30,047
	Depreciation of technology, property and equipment						50,520			50,820
	Restructuring charges						15,045			20,832
	Restructuring payments						(15,740	)		(24,809	)
	Deferred tax benefit on UK Corporate Income Tax Rate Change						(2,575	)		(5,859	)
	Unfavorable Tax Settlement						47,531			-
	One-time pension settlement						8,842			-
	Share-based compensation expense						10,187			12,292
	Excess tax benefits from share-based compensation						(227	)		(517	)
	Royalty advances						(79,804	)		(79,026	)
	Earned royalty advances						77,554			71,761
	Other non-cash charges and credits						26,096			15,492
	Change in deferred revenue						(7,733	)		(57,959	)
	Net change in operating assets and liabilities						(34,335	)		(65,289	)
	Cash Provided by Operating Activities						229,152			116,611
Investments in organic growth:
	Additions to technology, property and equipment						(82,257	)		(69,048	)
	Composition spending						(27,369	)		(28,627	)
*	Free Cash Flow less Composition Spending						119,526			18,936
Other Investing and Financing Activities:
	Acquisitions, net of cash						(152,110	)		(17,972	)
	Repayment of long-term debt						(340,207	)		(158,861	)
	Borrowings of short-term debt						-			50,000
	Borrowings of long-term debt						600,900			323,500
	Change in book overdrafts						(8,866	)		(3,287	)
	Cash dividends						(53,638	)		(52,612	)
	Purchase of treasury shares						(35,362	)		(59,704	)
	Proceeds from exercise of stock options and other						16,444			556
	Excess tax benefits from share-based compensation						227			517
	Cash Provided by Investing and Financing Activities						27,388			82,137
Effects of Exchange Rate Changes on Cash							(28,399	)		(22,655	)
Increase in Cash and Cash Equivalents for Period					$		118,515			78,418
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
	Additions to technology, property and equipment				$		(82,257	)		(69,048	)
	Composition spending						(27,369	)		(28,627	)
	Acquisitions, net of cash						(152,110	)		(17,972	)
	Cash Used for Investing Activities				$		(261,736	)		(115,647	)
Financing Activities:
Cash Used for Investing and Financing Activities					$		27,388			82,137
Excluding:
	Acquisitions, net of cash						(152,110	)		(17,972	)
	Cash Provided by Financing Activities				$		179,498			100,109

Free Cash Flow less Composition Spending:
The Company provides financial measures referred to as “Free Cash Flow less Composition Spending”. Free Cash Flow less Composition Spending is defined as “cash flow from operating activities, less composition and other capital spending”. Management believes this metric provides additional information to investors to facilitate the comparison of past and present results. This metric is also used internally by management in evaluating results. This non-GAAP measure is not intended to replace the financial results reported in accordance with US Generally Accepted Accounting Principles.

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