This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

John Wiley & Sons' CEO Discusses F2Q2012 Results - Earnings Call Transcript

EPS of $0.83 decrease by $0.05 both including and excluding the effects of foreign exchange. Lower revenues and higher technology and facilities and costs were partially mitigated by improved gross margin and lower interest expense. For the six months, revenue of $877 million was flat on a currency neutral basis but grew 3% including the positive foreign exchange impact. Adjusted EPS for the six months fell 2% to $1.51, excluding favorable foreign exchange adjusted EPS fell 6%, reflecting the top line results and higher technology and facility costs.

Year-to-date gross profit as a percentage of revenue was 70.1%, 1.3% ahead of the prior year figure of 68.8% due to increased digital product sales, product mix and timing. Year-to-date shared services and administrative costs of $194 million were up 10% due to ongoing investments in digital products and infrastructure and increased facility costs related to the consolidation of operations and the doubling up of occupancy costs during the payout period as we move to new premises in Singapore, San Francisco and the UK.

Free cash flow for the first six months was a use of $88 million. $63 million greater than the prior year. Lower cash earnings as a result of the timing of subscription cash collections, higher non-cash subscription revenue and higher capital spending on technology were the major driver of the higher cash usage. Subscription cash collection delays relate to the timing of 2012 subscription renewal negotiations and are expected to recover in the third and fourth quarters.

Net debt was $428 million at the end of the quarter, down from $545 million a year earlier. During the quarter, Wiley repurchased 600,000 shares at a cost of $28 million. Now I would like to provide some information regarding performance of Wiley’s global businesses. STMS second quarter revenue of $251 million increased by 3% or 1% excluding the favorable effect of foreign exchange. Currency neutral journals revenue grew by 1.5% over prior year, reflecting solid underlying calendar year 2011 subscription and reprint sales growth. Partially offset by lower backfile sales and the adverse impact from the timing of issue publication.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs