John Wiley & Sons - JWA - Results for the second quarter of fiscal year 2013
12/10/2012 12:11:26 PM
John Wiley & Sons, Inc. (NYSE: JWA), a global provider of content and knowledge-based services in areas of scientific, technical, medical, and scholarly research (STMS); professional development (PD); and global education (GEd) announced results for the second quarter of fiscal year 2013:
- Revenue fell 3% due to difficult market conditions for higher education textbooks, softness in global bookstore channels, and continued tight library budgets in STMS.
- Revenue change by segment: STMS -0.5%, PD -8%, and GEd -6%.
- U.S. GAAP earnings per share (EPS) fell 14% to $0.71.
- Adjusted revenue change by segment, excluding FX and travel publishing revenue: STMS +0.5%, PD -7%, and GEd -6%.
- Adjusted EPS fell 4% to $0.77 per share excluding FX. Adjusted EPS excludes asset impairment charges of $0.16 per share related to consumer publishing assets subject to divestment other than travel, and a $0.10 per share gain on the sale of the travel publishing program. Earnings performance is due to top-line results and higher interest expense partially offset by lower operating and administrative costs.
- Shared services and administrative costs were down 3% vs. prior year. Distribution costs were down 7% due to lower print book sales and the move to digital delivery; technology was flat due to prudent expense control; and other administration fell 6% primarily due to lower incentive accruals.
"Our results this quarter and through the first half of the year have been disappointing," said Steve Smith, President and CEO of Wiley. "The higher education textbook market has been much weaker than expected, a result of lower for-profit enrollments and shifting consumer behavior. However, we are excited about the Deltak acquisition and its attractive growth prospects as a provider of online programs for traditional universities. Deltak helps Wiley to reposition its Global Education business as we shift our focus to providing high value, customizable and digital content to students."
Mr. Smith continued: "Market conditions, particularly in Europe continue to adversely impact financial results. However, by executing on our plans to acquire or develop content-enabled service capabilities in high-growth areas of our existing businesses and by building on our presence in high-growth and emerging markets, we believe we will restore attractive levels of revenue and earnings growth."
About Wiley - JWA
Wiley (JWA) is a global provider of content-enabled solutions that improve outcomes in research, education, and professional practice. Our core businesses produce scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising; professional books, subscription products, certification and training services and online applications; and education content and services including integrated online teaching and learning resources for undergraduate and graduate students and lifelong learners.
Founded in 1807, John Wiley & Sons, Inc. (JWA), has been a valued source of information and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations.