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March 9-16, 2006 Edition
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In Third Quarter
Hoboken, NJ/3/7/06John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb) has announced that third quarter revenue of $278 million increased 8% from $258 million in the same period of the previous year, or 9% excluding foreign exchange. Operating income increased 7% over the previous years third quarter, or 9% excluding foreign exchange. Adjusted earnings of $0.57 per diluted share for the third quarter increased 8%, excluding an income tax benefit in the current quarter, as described below. Reported earnings per diluted share for the third quarter including the tax benefit was $0.69.
The quarter’s results were driven primarily by the global Scientific, Technical, and Medical and Professional/Trade businesses. Higher Education’s revenue also increased during the quarter. The growth in earnings per diluted share reflects the positive effects of the increase in operating income and the share repurchase program, partially offset by increased interest expense resulting from higher rates and the one-time costs associated with the refinancing of the Companys borrowing facilities. Results for the quarter were also adversely affected by the strengthening of the US dollar, primarily against the EURO and Pound Sterling.
For the first nine months of fiscal year 2006, Wileys revenue advanced 6% to $778 million. Adjusted earnings per diluted share for the nine-month period increased 7% to $1.36, excluding the income tax benefits in the current year, as described below. Reported earnings per diluted share for the nine-month period including the tax benefits was $1.59. During the first nine months of fiscal year 2006, the Company repurchased approximately 2.1 million shares of common stock at an average price of $39.40.
“Wiley had a solid third quarter with all of our global businesses contributing to these results,” said William J. Pesce, President and Chief Executive Officer. “We are pleased that our ‘must have’ products and services, enabled by technology and new business models, are being well received by our customers. Based on year-to-date results, leading indicators, and market conditions, we anticipate full-year revenue growth in the mid-single digits and EPS growth in the high single digits, excluding the aforementioned tax benefits.”
Mr. Pesce added, “We are honored to be included again on FORTUNE magazine’s list of the ‘100 Best Companies to Work For’. Wiley continues to thrive nearly two hundred years after it was founded because its unique culture supports collaboration, open dialogue, and enduring relationships. This recognition is a tribute to my colleagues around the world whose integrity, creativity, and dedication have made Wiley one of the best performing companies in the industry.” Wiley is the only publishing company on the list. As part of the selection process, FORTUNE randomly surveyed 400 Wiley colleagues about their views of the company, its culture, and practices.
In January, The Wiley Foundation announced the winners of the fifth annual Wiley Prize in Biomedical Sciences. Dr. Elizabeth H. Blackburn, Morris Herztein Professor of Biology and Physiology in the Department of Biochemistry and Biophysics at the University of California, San Francisco, and Dr. Carol Greider, Daniel Nathans Professor and Director of Molecular Biology & Genetics at Johns Hopkins University were chosen for their discovery of telomerase, the enzyme that maintains chromosomal integrity and the recognition of its importance in aging, cancer, and stem cell biology. The Wiley Prize in Biomedical Sciences recognizes contributions that have opened new fields of research or have advanced novel concepts or their applications in a particular biomedical discipline. It honors a specific contribution or a series of contributions that demonstrate significant leadership and innovation.
In the third quarter of fiscal year 2006, the Company reported an income tax benefit of $6.8 million or $0.11 cents per diluted share, on the resolution of certain tax matters. Separately, in the first quarter of fiscal year 2006, the Company recorded a tax benefit of approximately $7.5 million, or $0.12 per diluted share on the repatriation of earnings from its European subsidiaries. The first quarter tax benefit offsets a tax charge recorded in the fourth quarter of fiscal year 2005. Neither the tax charge in the fourth quarter of last year, nor the tax benefit in the first quarter of this year, had a cash impact to the Company. The Company has excluded these tax items from its analytical and narrative discussion to identify operating trends without unusual items.