<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT 1934
For the quarterly period ended July 31, 1995 Commission File No. 1-11507
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES ACT OF 1934
For the transition period from to
JOHN WILEY & SONS, INC.
(Exact name of Registrant as specified in its charter)
NEW YORK 13-5593032
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
605 THIRD AVENUE, NEW YORK, NY 10158-0012
(Address of principal executive offices) Zip Code
Registrant's telephone number, (212) 850-6000
including area code
NOT APPLICABLE
Former name, former address, and former fiscal year,
if changed since last report
Indicate by check mark, whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the Registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days. YES [X] NO [ ]
The number of shares outstanding of each of the Registrant's classes
of common stock as of July 31, 1995 were:
Class A, par value $1.00 - 6,394,668
Class B, par value $1.00 - 1,645,350
This is the first of a ten page document
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JOHN WILEY & SONS, INC.
INDEX
PART I - FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements.
Condensed Consolidated Statements of Financial
Position -Unaudited as of July 31, 1995 and April 30, 1995 3
Condensed Consolidated Statements of Income - Unaudited
for the Three Months ended July 31, 1995 and 1994 4
Condensed Consolidated Statements of Cash Flow - Unaudited
for the Three Months ended July 31, 1995 and 1994 5
Notes to Unaudited Condensed Consolidated Financial
Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 9
Exhibit 27 Financial Data Schedule 10
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JOHN WILEY & SONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED
July 31, April 30,
1995 1995
--------- ---------
Assets
Current Assets
Cash and cash equivalents $ 3,243 34,410
Accounts receivable 67,791 52,562
Inventories 44,352 41,535
Deferred income tax benefits 7,979 8,004
Prepaid expenses 4,776 4,680
--------- ---------
Total Current Assets 128,141 141,191
Product Development Assets 25,779 24,509
Property and Equipment 21,666 21,244
Intangible Assets 52,433 53,351
Other Assets 7,400 7,186
--------- ---------
Total Assets $ 235,419 247,481
========= =========
Liabilities & Shareholders' Equity
Current Liabilities
Notes payable and current portion of
long-term debt $ 579 621
Accounts and royalties payable 38,545 34,273
Deferred subscription revenues 43,771 65,749
Accrued income taxes 8,460 4,227
Other accrued liabilities 20,607 25,080
--------- ---------
Total Current Liabilities 111,962 129,950
Other Long-Term Liabilities 13,565 13,818
Deferred Income Taxes 5,100 4,881
Shareholders' Equity 104,792 98,832
--------- ---------
Total Liabilities & Shareholders' Equity $ 235,419 247,481
========= =========
The accompanying Notes are an integral part of the
condensed consolidated financial statements.
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JOHN WILEY & SONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands except per share information)
Three Months
Ended July 31,
---------------------
1995 1994
--------- ---------
Revenues $ 88,092 80,787
Costs and Expenses
Cost of sales 28,872 26,390
Operating and administrative expenses 46,619 42,731
Amortization of intangibles 1,105 1,216
--------- ----------
Total Costs and Expenses 76,596 70,337
--------- ----------
Operating Income 11,496 10,450
Interest Income and Other 397 486
Interest Expense (29) (825)
--------- ----------
Interest Income (Expense) - Net 368 (339)
--------- ----------
Income Before Taxes 11,864 10,111
Provision For Income Taxes 4,746 4,044
--------- ----------
Net Income $ 7,118 6,067
========= ==========
Net Income Per Share
Primary $ 0.87 0.75
Fully Diluted $ 0.87 0.75
Cash Dividends Per Share
Class A Common $ 0.1750 0.1550
Class B Common $ 0.1550 0.1375
Average Shares
Primary 8,224 8,119
Fully Diluted 8,229 8,132
The accompanying Notes are an integral part of the
condensed consolidated financial statements.
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JOHN WILEY & SONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - UNAUDITED
(In thousands)
Three Months
Ended July 31,
---------------------
1995 1994
--------- ---------
Operating Activities
Net Income $ 7,118 6,067
Non-cash items 12,261 11,886
Net change in operating assets and liabilities (39,992) (32,605)
--------- ---------
Cash Used in Operating Activities (20,613) (14,652)
--------- ---------
Investing Activities
Additions to product development assets (5,374) (3,630)
Additions to property and equipment (2,246) (948)
Acquisition of publishing assets (1,244) (4,747)
--------- ---------
Cash Used for Investing Activities (8,864) (9,325)
--------- ---------
Financing Activities
Purchase of treasury shares (218) -
Repayment of long-term debt - (6,000)
Net borrowings (repayments) of short-term debt (44) 201
Cash dividends (1,373) (1,192)
Proceeds from exercise of stock options 130 152
--------- ---------
Cash Used for Financing Activities (1,505) (6,839)
--------- ---------
Effects of Exchange Rate Changes on Cash (185) 217
--------- ---------
Cash and Cash Equivalents
Decrease for Period (31,167) (30,599)
Balance at Beginning of Period 34,410 57,457
--------- ---------
Balance at End of Period $ 3,243 26,858
========= =========
Cash Paid During the Period for
Interest $ 23 1,685
Income taxes (refund) $ (1,038) 1,753
The accompanying Notes are an integral part of the
condensed consolidated financial statements.
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JOHN WILEY & SONS, INC., AND SUBSIDIARIES
NOTES TO UNAUDITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 1995
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments,
consisting only of normal recurring adjustments, necessary to
present fairly the Company's consolidated financial position as of
July 31, 1995 and April 30, 1995, and results of operations and
cash flows for the periods ended July 31, 1995 and 1994. These
statements should be read in conjunction with the most recent
audited financial statements contained in the Company's Form 10-K
for the fiscal year ended April 30, 1995.
2. The results for the three months ended July 31, 1995 are not
necessarily indicative of the results to be expected for the full
year. Certain prior period amounts have been reclassified to
conform to the current period's presentation.
3. Income per share is determined by dividing income by the weighted
average number of common shares outstanding and common stock
equivalents resulting from the assumed exercise of outstanding
dilutive stock options and other stock awards, less shares assumed
to be repurchased with the related proceeds at the average market
price for the period for primary earnings per share, and at the
higher of the average or end of period market price for fully
diluted earnings per share.
4. Inventories were as follows:
July 31, 1995 April 30, 1995
(Thousands)
Finished Goods $35,496 $36,467
Work-in-process 6,743 5,762
Paper, cloth and other 5,675 2,769
_________ _________
47,914 44,998
LIFO reserve (3,562) (3,463)
_________ _________
Total inventories $44,352 $41,535
========= =========
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JOHN WILEY & SONS, INC., AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
JULY 31, 1995
FINANCIAL CONDITION
During this seasonal period of cash usage, operating activities
used $20.6 million of cash, or $6.0 million more than the prior
year's comparable quarter. The increase was primarily due to
higher inventory and receivable levels to support the higher volume
of business. The use of cash during this period is consistent with
the seasonality of the journal subscription and the educational
sector's receipts cycle which occur, for the most part, later in
the fiscal year.
Investing activities used $8.9 million during the current quarter,
or $.4 million less than the comparable prior year's quarter.
Current year acquisitions included the Preservation Press
consisting of architectural heritage books and technical
preservation guides.
Financing activities primarily reflect dividend payments during the
quarter.
RESULTS OF OPERATIONS
FIRST QUARTER ENDED JULY 31, 1995
Revenues for the first quarter advanced 9% to $88.1 million
compared with $80.8 million in the prior year. Operating income
for the current quarter was $11.5 million, or a 10% increase,
compared with $10.5 million in the prior year. Net income advanced
17%.
The improvement in revenues and operating income was primarily
attributable to strong performances in the Company's scientific,
technical and medical journals programs and in its professional and
trade division's business and computer book lines. Revenue gains
were also noteworthy in the Company's European and Asian
operations. College division results were below expectations for
the quarter, as certain sales which normally would have occurred in
the first quarter were shifted into the second quarter due to
delayed adoptions and ordering decisions by some college
booksellers.
Cost of sales as a percentage of revenues increased from 32.7% in
the prior year to 32.8% due to higher paper costs which were
anticipated. Operating expenses as a percentage of revenues were
52.9% in both periods.
Interest expense declined by $.8 million due to the prepayment of
$26 million of high-cost debt at the end of last year. The
effective tax rate of 40% was the same for both periods.
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
July 31, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
JOHN WILEY & SONS, INC.
Registrant
By/s/Charles R. Ellis
---------------
Charles R. Ellis
President and
Chief Executive Officer
By/s/Robert D. Wilder
----------------
Robert D. Wilder
Senior Vice President and
Chief Financial Officer
Dated: September 6, 1995
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND THE
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000107140
<NAME> JOHN WILEY & SONS, INC.
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