News Details

• Revenue of $466 million, up 5% over prior year on a constant currency basis
• Journal subscription revenue of $154 million, up 4% on a constant currency basis
• Adjusted EPS of $0.99, up 9% over prior year on a constant currency basis
• Full year financial outlook reaffirmed

John Wiley & Sons, Inc. (NYSE: JWa and JWb), a global provider of knowledge and knowledge-enabled services that improve outcomes in research, professional practice, and education, today announced the following results for the third quarter of fiscal year 2015:

						Change
$ millions		FY15		FY14		Excluding FX		Including FX
ADJUSTED
Revenue
Q3		$466		$458		5%		2%
9 Months		$1,381		$1,318		5%		5%
EPS
Q3		$0.99		$0.93		9%		6%
9 Months		$2.45		$2.28		8%		7%
US GAAP
Revenue
Q3		$466		$458		5%		2%
9 Months		$1,381		$1,318		5%		5%
EPS
Q3		$0.72		$0.88		(16%)		(18%)
9 Months		$2.18		$2.10		5%		4%

Please see the attached financial schedules for more detail

Management Commentary

“Revenue growth this quarter continued to be driven by the strength of our Research journals business, our 2014 acquisitions, and the continued double-digit growth of our Education solutions businesses, including Deltak Education Services and WileyPLUS Course Workflow Solutions,” said Mark Allin, Chief Operating Officer. “For the quarter, journal subscriptions revenue increased 4% on a constant currency basis, while Education Services (Deltak) secured eleven new online programs and another university partner. Our profitability also improved, with higher gross margins from digital products, cost savings from restructuring, and lower income tax rates resulting in another quarter of solid earnings growth for the Company.”

Fiscal Year 2015 Outlook

Wiley reaffirms its fiscal year 2015 outlook of mid-single-digit revenue growth on a constant currency basis and adjusted EPS in a range of $3.25 to $3.35.

Foreign Exchange (FX)

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” revenue, contribution to profit, and EPS, which exclude restructuring and impairment charges and deferred tax benefits related to a UK corporate income tax rate reduction. Variances to adjusted revenue, 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 and First Nine Months Summary

• Third quarter revenue grew 5% on a constant currency basis, or 2% including the impact of foreign exchange, to $465.9 million. Growth in Research Communication/Journals (+5%) and Education Services-Deltak (+20%), as well as a five-month contribution from CrossKnowledge (+$16.2 million) offset a decline in books sales overall. As previously disclosed, financial results for the recently acquired CrossKnowledge had been reported on a two-month delay pending implementation of reporting process improvements. With these five months reported, CrossKnowledge reporting is now current on a year-to-date basis. Wiley revenue for the first nine months grew 5% on a constant currency and reported basis to $1.38 billion.
• Organic revenue was essentially flat for the third quarter on a constant currency basis, but increased 1% for the nine months. Organic revenue excludes the combined contribution from CrossKnowledge and Profiles International of $22 million for the quarter and $49 million year-to-date.
• Third quarter adjusted earnings per share (EPS) rose 9% on a constant currency basis, or 6% including foreign exchange, to $0.99. Adjusted EPS excludes certain one-time or unusual items in the current and prior year periods as further described in the attached reconciliation of US GAAP to Adjusted EPS. Adjusted EPS growth was due to higher gross margins from digital products, restructuring savings, and lower income tax rates, partially offset by investments in digital products and services and internal business systems, as well as the dilutive impact of the recent Talent Solutions acquisitions. Adjusted EPS for the first nine months rose 8% to $2.45.
• Third quarter adjusted shared services and administration costs grew 4% on a constant currency basis, or 2% including foreign exchange, to $121.4 million. Other Administration (+23%) and Technology and Content Management (+3%) costs offset lower Distribution and Operation Services (-13%) expenses. The increase in Other Administration expenses reflects the expiration of a real estate tax incentive related to the Company’s Hoboken headquarters, early stage investment in an Enterprise Resource Planning (ERP) implementation, and occupancy costs related to recent acquisitions. Note that adjusted shared services costs exclude restructuring charges principally related to the consolidation and disposition of real estate assets. For the first nine months, adjusted shared services and administrative costs, excluding the impact of currency, were up 1% compared to the prior year period.
• Free Cash Flow was $80.0 million for the first nine months of the year compared to $84.6 million in the prior year period, mainly due to increased investment in technology.
• Share Repurchases: Wiley repurchased 350,000 shares in the quarter at a cost of $20.4 million, or $58.42 per share. For the first nine months, Wiley repurchased 1,083,000 shares at a cost of $62.0 million, or $57.26 per share. Approximately 2.2 million shares remain in the current authorized program.
• Management Update: On February 10, Wiley announced that President and Chief Executive Officer Stephen M. Smith was diagnosed with a recurrence of urological cancer and would be taking a period of medical leave in order to focus on treatment. In the interim, Wiley’s Executive Leadership Team will report to Mark Allin, the recently named Chief Operating Officer (COO), and Mr. Allin will report to the Executive Committee of the Board of Directors. Mr. Allin is a 14-year Wiley veteran and until recently served as the Executive Vice President of Professional Development. Prior to that, he was the Managing Director of Wiley Asia.
• Third Quarter Restructuring Charge: As anticipated, the Company recorded a restructuring charge of approximately $24 million this quarter, with about half of the charge related to the completion of facility consolidations and dispositions in connection with prior restructuring actions and the remainder principally due to severance costs related to reorganization and consolidation.

RESEARCH

• Revenue: Third quarter revenue of $246.5 million grew 3% on a constant currency basis and declined 1% including the impact of FX. Steady revenue growth continued in Journal Subscriptions (+4%), Funded Access (+46%), and Other Journal Revenue (+7%). Books and References revenue decreased 8% while Other Research Revenue grew 8%. For the first nine months, Research revenue increased 2% on a constant currency basis to $766.1 million.
• Calendar Year 2015 Journal Subscriptions: Through January 31, calendar year 2015 journal subscription billings increased 1% over the prior year period on a constant currency basis with approximately 81% of expected 2015 business closed.
• Adjusted Contribution to Profit: Third quarter adjusted contribution to profit after allocated shared service and administrative costs of $72.5 million increased 11% on a constant currency basis due to revenue growth and cost savings from procurement and outsourcing initiatives. For the first nine months, adjusted contribution to profit grew 7% to $220.9 million.
• Society Business: Two new society journals were signed in the quarter with combined annual revenue of $0.2 million; 24 were renewed with combined annual revenue of $13 million; and three with combined annual revenue of $0.6 million were not renewed.

PROFESSIONAL DEVELOPMENT

• Revenue: Third quarter revenue grew 17% on a constant currency basis (+15% including FX) to $108.6 million due to contribution from 2014 acquisitions, including three months of reported revenue contribution from Profiles International (+$5.8 million) and five months from CrossKnowledge (+$16.2 million) due to reporting improvements enabling elimination of the two-month reporting delay. Excluding the contributions from both acquisitions, revenue was down 7% from prior year as a decline in Book sales (-12%) exceeded growth in Online Test Preparation and Certification (+14%) and other Assessment revenue (+9%). Revenue for the first nine months increased 13% on a constant currency basis to $306.6 million, but declined 5% excluding the contributions from acquisitions.
• Adjusted Contribution to Profit: Third quarter adjusted contribution to profit after allocated shared service and administrative costs rose 8% to $12.9 million primarily due to restructuring savings, partially offset by lower gross margins on lower book volume and the dilutive impact of the recent Talent Solutions acquisitions. Adjusted contribution to profit for the first nine months increased 27% on a constant currency basis.
• Online Learning and Training: CrossKnowledge announced an agreement with Gavisus, a Scandinavian-based digital learning and talent development company. CrossKnowledge will provide Gavisus with the technology to plan, design and deliver online leadership training to clients in Norway, Sweden and Denmark.
• Online Test Preparation: Wiley introduced the Wiley CFA Exam Review, an online test preparation product for the Chartered Financial Analyst (CFA) certification.

EDUCATION

• Revenue: Third quarter revenue on a constant currency basis declined 2% (or 4% including FX) to $110.9 million, with a 14% decline in Books more than offsetting growth in Custom Products (+6%), Course Workflow Solutions (+13%), and Education Services-Deltak (+20%). Revenue for the first nine months grew 4% on a constant currency basis to $308.1 million.
• Adjusted Contribution to Profit: Third quarter adjusted contribution to profit after shared service and administrative costs decreased 5% to $27.6 million, reflecting lower revenue and continued investment in Education Services (Deltak). Adjusted contribution to profit after shared services for the first nine months was down 1% to $55.8 million.
• Education Services (Deltak): In the quarter, Education Services (Deltak) signed Manhattan College as a new online program partner and added eleven new programs for a total of 38 partners and 192 programs under contract (164 revenue-generating and 28 in development).

Earnings Conference Call

• Scheduled for today, March 10, 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 (888) 572-7034 and enter the participant code 9356260#
• International callers, please dial (719) 325-2432 and enter the participant code 9356260#.
• 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 provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice, and education. Through the Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising. The Professional Development segment provides digital and print books, online assessment and training services, and test prep and certification. In Education, Wiley provides education solutions including online program management services for higher education institutions and course management tools for instructors and students, as well as print and digital content.

JOHN WILEY & SONS, INC.
UNAUDITED SUMMARY OF OPERATIONS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2015 AND 2014
(in thousands, except per share amounts)
				THIRD QUARTER ENDED JANUARY 31,
					2015									2014									% Change
					US GAAP			Adjustments (A)			Adjusted			US GAAP			Adjustments (A)			Adjusted			US GAAP			Adjusted excl. FX
Revenue				$	465,905			-			465,905			457,933			-			457,933			2	%		5	%
Costs and Expenses
Cost of Sales					124,245			-			124,245			130,563			-			130,563			-5	%		-2	%
Operating and Administrative					250,479			-			250,479			238,569			-			238,569			5	%		7	%
Restructuring Charges (A)					24,034			(24,034	)		-			4,256			(4,256	)		-
Amortization of Intangibles					13,105			-			13,105			11,165			-			11,165			17	%		19	%
Total Costs and Expenses					411,863			(24,034	)		387,829			384,553			(4,256	)		380,297			7	%		4	%
Operating Income					54,042			24,034			78,076			73,380			4,256			77,636			-26	%		6	%
Operating Margin					11.6	%					16.8	%		16.0	%					17.0	%
Interest Expense					(4,365	)		-			(4,365	)		(3,485	)		-			(3,485	)		25	%		25	%
Foreign Exchange Gain					2,783			-			2,783			29			-			29
Interest Income and Other					800			-			800			466			-			466			72	%		72	%
Income Before Taxes					53,260			24,034			77,294			70,390			4,256			74,646			-24	%		5	%
Provision for Income Taxes (A)					10,712			7,678			18,390			17,901			1,347			19,248			-40	%		-3	%
Net Income				$	42,548			16,356			58,904			52,489			2,909			55,398			-19	%		8	%
Earnings Per Share- Diluted (A)				$	0.72			0.28			0.99			0.88			0.05			0.93			-18	%		9	%
Average Shares - Diluted					59,343			59,343			59,343			59,713			59,713			59,713
				NINE MONTHS ENDED JANUARY 31,
					2015									2014									% Change
					US GAAP			Adjustments (A)			Adjusted			US GAAP			Adjustments (A-C)			Adjusted			US GAAP			Adjusted excl. FX
Revenue				$	1,380,794			-			1,380,794			1,318,106			-			1,318,106			5	%		5	%
Costs and Expenses
Cost of Sales					382,839			-			382,839			380,706			-			380,706			1	%		0	%
Operating and Administrative					755,541			-			755,541			713,090			-			713,090			6	%		6	%
Restructuring Charges (A)					23,879			(23,879	)		-			27,327			(27,327	)		-
Impairment Charges (B)					-			-			-			4,786			(4,786	)		-
Amortization of Intangibles					38,859			-			38,859			33,066			-			33,066			18	%		16	%
Total Costs and Expenses					1,201,118			(23,879	)		1,177,239			1,158,975			(32,113	)		1,126,862			4	%		4	%
Operating Income					179,676			23,879			203,555			159,131			32,113			191,244			13	%		9	%
Operating Margin					13.0	%					14.7	%		12.1	%					14.5	%
Interest Expense					(13,015	)		-			(13,015	)		(10,348	)		-			(10,348	)		26	%		26	%
Foreign Exchange Gain					2,828			-			2,828			329			-			329
Interest Income and Other					2,218			-			2,218			2,095			-			2,095			6	%		6	%
Income Before Taxes					171,707			23,879			195,586			151,207			32,113			183,320			14	%		8	%
Provision for Income Taxes (A-C)					41,736			7,654			49,390			26,588			21,126			47,714			57	%		3	%
Net Income				$	129,971			16,225			146,196			124,619			10,987			135,606			4	%		9	%
Earnings Per Share- Diluted (A-C)				$	2.18			0.27			2.45			2.10			0.19			2.28			4	%		8	%
Average Shares - Diluted					59,632			59,632			59,632			59,388			59,388			59,388

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, 2015 AND 2014
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
				Third Quarter Ended								Nine Months Ended
				January 31,								January 31,
				2015				2014				2015				2014
US GAAP Earnings Per Share - Diluted				$	0.72			$	0.88			$	2.18			$	2.10
Adjusted to exclude the following:
Restructuring Charges (A)					(0.28	)			(0.05	)			(0.27	)			(0.31	)
Impairment Charges (B)					-				-				-				(0.06	)
Deferred Income Tax Benefit on UK Rate Change (C)					-				-				-				0.18
Adjusted Earnings Per Share - Diluted				$	0.99			$	0.93			$	2.45			$	2.28

NOTES TO UNAUDITED FINANCIAL STATEMENTS
Adjustments:
(A)		RESTRUCTURING CHARGES: The adjusted results for the three and nine months ended January 31, 2015 and the three and nine months ended January 31, 2014 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $24.0 million or $0.28 per share, $23.9 million or $0.27 per share, $4.3 million or $0.05 per share, and $27.3 million or $0.31 per share, respectively.
(B)		IMPAIRMENT CHARGES: The adjusted results for the nine months ended January 31, 2014 exclude impairment charges related to certain technology investments of $4.8 million or $0.06 per share.
(C)		Deferred Income Tax Benefit on UK Rate Change: The adjusted results for the nine months ended January 31, 2014 exclude deferred tax benefits of $10.6 million, or $0.18 per share, associated with tax legislation enacted in the United Kingdom that reduced the U.K. corporate income tax rates by 3%. The benefits reflect the remeasurement of the Company's deferred tax balances to the new income tax rates of 21% effective April 1, 2014 and 20% effective April 1, 2015 and had no current cash tax impact.

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, 2015 and 2014
(in thousands)
				THIRD QUARTER ENDED JANUARY 31,
					2015								2014									% Change
					US GAAP			Adjustments (A)		Adjusted			US GAAP			Adjustments (A)			Adjusted			US GAAP			Adjusted excl. FX
Revenue
Research				$	246,454			-		246,454			248,797			-			248,797			-1	%		3	%
Professional Development					108,587			-		108,587			94,201			-			94,201			15	%		17	%
Education					110,864			-		110,864			114,935			-			114,935			-4	%		-2	%
Total				$	465,905			-		465,905			457,933			-			457,933			2	%		5	%
Direct Contribution to Profit
Research				$	108,727			4,507		113,234			111,318			(782	)		110,536			-2	%		7	%
Professional Development					35,214			3,588		38,802			38,886			(833	)		38,053			-9	%		4	%
Education					46,415			1,033		47,448			48,411			117			48,528			-4	%		0	%
Total				$	190,356			9,128		199,484			198,615			(1,498	)		197,117			-4	%		4	%
Contribution to Profit (After Allocated Shared Services and Admin. Costs)
Research				$	67,999			4,507		72,506			69,233			(782	)		68,451			-2	%		11	%
Professional Development					9,307			3,588		12,895			13,279			(833	)		12,446			-30	%		8	%
Education					26,581			1,033		27,614			29,851			117			29,968			-11	%		-5	%
Total				$	103,887			9,128		113,015			112,363			(1,498	)		110,865			-8	%		6	%
Unallocated Shared Services and Admin. Costs					(49,845	)		14,906		(34,939	)		(38,983	)		5,754			(33,229	)		28	%		7	%
Operating Income				$	54,042			24,034		78,076			73,380			4,256			77,636			-26	%		6	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services				$	(25,257	)		4,052		(21,205	)		(25,244	)		17			(25,227	)		0	%		-13	%
Technology and Content Management					(61,171	)		1,842		(59,329	)		(60,658	)		2,283			(58,375	)		1	%		3	%
Finance					(13,793	)		164		(13,629	)		(14,194	)		882			(13,312	)		-3	%		5	%
Other Administration					(36,093	)		8,848		(27,245	)		(25,139	)		2,572			(22,567	)		44	%		23	%
Total				$	(136,314	)		14,906		(121,408	)		(125,235	)		5,754			(119,481	)		9	%		4	%
				NINE MONTHS ENDED JANUARY 31,
					2015								2014									% Change
					US GAAP			Adjustments (A)		Adjusted			US GAAP			Adjustments (A-B)			Adjusted			US GAAP			Adjusted excl. FX
Revenue
Research				$	766,149			-		766,149			747,532			-			747,532			2	%		2	%
Professional Development					306,581			-		306,581			270,832			-			270,832			13	%		13	%
Education					308,064			-		308,064			299,742			-			299,742			3	%		4	%
Total				$	1,380,794			-		1,380,794			1,318,106			-			1,318,106			5	%		5	%
Direct Contribution to Profit
Research				$	344,155			4,322		348,477			334,179			4,590			338,769			3	%		3	%
Professional Development					104,354			3,833		108,187			100,075			4,834			104,909			4	%		4	%
Education					114,721			1,084		115,805			113,041			375			113,416			1	%		4	%
Total				$	563,230			9,239		572,469			547,295			9,799			557,094			3	%		3	%
Contribution to Profit (After Allocated Shared Services and Admin. Costs)
Research				$	216,603			4,322		220,925			204,646			4,590			209,236			6	%		7	%
Professional Development					26,630			3,833		30,463			19,513			4,834			24,347			-			27	%
Education					54,757			1,084		55,841			57,502			375			57,877			-5	%		-1	%
Total				$	297,990			9,239		307,229			281,661			9,799			291,460			6	%		7	%
Unallocated Shared Services and Admin. Costs					(118,314	)		14,640		(103,674	)		(122,530	)		22,314			(100,216	)		-3	%		3	%
Operating Income				$	179,676			23,879		203,555			159,131			32,113			191,244			13	%		9	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services				$	(71,760	)		4,436		(67,324	)		(78,334	)		2,591			(75,743	)		-8	%		-11	%
Technology and Content Management					(182,445	)		1,285		(181,160	)		(191,325	)		13,243			(178,082	)		-5	%		1	%
Finance					(40,252	)		71		(40,181	)		(40,436	)		882			(39,554	)		0	%		2	%
Other Administration					(89,097	)		8,848		(80,249	)		(78,069	)		5,598			(72,471	)		14	%		11	%
Total				$	(383,554	)		14,640		(368,914	)		(388,164	)		22,314			(365,850	)		-1	%		1	%

See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment. Certain prior year amounts have been reclassified to conform to the current year's presentation.

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT
INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2015 and 2014
(in thousands)
				Third Quarter Ended												Nine Months Ended
				January 31,												January 31,
				2015			2014			% Change			% Change excl. FX			2015			2014			% Change			% Change excl. FX
Research:
Direct Contribution to Profit				108,727			111,318			-2	%		2	%		344,155			334,179			3	%		3	%
Restructuring (Credits) Charges (A)				4,507			(782	)								4,322			4,590
Adjusted Direct Contribution to Profit				113,234			110,536			2	%		7	%		348,477			338,769			3	%		3	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(10,722	)		(11,406	)		-6	%		-2	%		(34,141	)		(34,801	)		-2	%		-2	%
Technology and Content Management				(24,254	)		(24,888	)		-3	%		0	%		(75,440	)		(75,969	)		-1	%		-1	%
Occupancy and Other				(5,752	)		(5,791	)		-1	%		3	%		(17,971	)		(18,763	)		-4	%		-5	%
Adjusted Contribution to Profit (after allocated				72,506			68,451			6	%		11	%		220,925			209,236			6	%		7	%
Shared Services and Admin. Costs)
Professional Development:
Direct Contribution to Profit				35,214			38,886			-9	%		-7	%		104,354			100,075			4	%		5	%
Restructuring (Credits) Charges (A)				3,588			(833	)								3,833			4,834
Adjusted Direct Contribution to Profit				38,802			38,053			2	%		4	%		108,187			104,909			3	%		4	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(7,401	)		(9,634	)		-23	%		-20	%		(23,671	)		(28,790	)		-18	%		-18	%
Technology and Content Management				(12,550	)		(11,834	)		6	%		6	%		(35,347	)		(37,872	)		-7	%		-7	%
Occupancy and Other				(5,956	)		(4,139	)		44	%		44	%		(18,706	)		(13,900	)		35	%		35	%
Adjusted Contribution to Profit (after allocated				12,895			12,446			4	%		8	%		30,463			24,347			25	%		27	%
Shared Services and Admin. Costs)
Education:
Direct Contribution to Profit				46,415			48,411			-4	%		-2	%		114,721			113,041			1	%		3	%
Restructuring Charges (A)				1,033			117									1,084			375
Adjusted Direct Contribution to Profit				47,448			48,528			-2	%		0	%		115,805			113,416			2	%		4	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services				(3,341	)		(4,098	)		-18	%		-16	%		(9,886	)		(11,987	)		-18	%		-17	%
Technology and Content Management				(12,815	)		(11,935	)		7	%		8	%		(39,630	)		(34,979	)		13	%		14	%
Occupancy and Other				(3,678	)		(2,527	)		46	%		46	%		(10,448	)		(8,573	)		22	%		23	%
Adjusted Contribution to Profit (after allocated				27,614			29,968			-8	%		-5	%		55,841			57,877			-4	%		-1	%
Shared Services and Admin. Costs)
Total Adjusted Contribution to Profit (after				113,015			110,865			2	%		6	%		307,229			291,460			5	%		7	%
allocated Shared Services and Admin. Costs)
Unallocated Shared Services and Admin. Costs:
Unallocated Shared Services and Admin. Costs				(49,845	)		(38,983	)		28	%		29	%		(118,314	)		(122,530	)		-3	%		-4	%
Restructuring Charges (A)				14,906			5,754									14,640			17,528
Impairment Charges (B)				-			-									-			4,786
Adjusted Unallocated Shared Services and Admin. Costs				(34,939	)		(33,229	)		5	%		7	%		(103,674	)		(100,216	)		3	%		3	%
Adjusted Operating Income				78,076			77,636			1	%		6	%		203,555			191,244			6	%		9	%

See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment. Certain prior year amounts have been reclassified to conform to the current year's presentation.

JOHN WILEY & SONS, INC.
SEGMENT REVENUE by PRODUCT/SERVICE
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
JANUARY 31, 2015 and 2014
(in thousands)
					Third Quarter												Nine Months
					Ended January 31,				% of			% Change					Ended January 31,				% of			% Change
					2015		2014		Revenue			excl. FX					2015		2014		Revenue			excl. FX
RESEARCH
Research Communication:
Journal Subscriptions				$	153,755		154,035		62	%		4	%			$	490,893		478,374		64	%		2	%
Funded Access					6,066		4,347		2	%		46	%				16,562		11,538		2	%		43	%
Other Journal Revenue					27,833		27,393		11	%		7	%				90,720		76,487		12	%		19	%
					187,654		185,775		76	%		5	%				598,175		566,399		78	%		5	%
Books and References:
Print Books					27,743		30,990		11	%		-8	%				80,658		89,483		11	%		-10	%
Digital Books					10,941		12,636		4	%		-9	%				30,154		31,588		4	%		-4	%
					38,684		43,626		16	%		-8	%				110,812		121,071		14	%		-8	%
Other Research Revenue					20,116		19,396		8	%		8	%				57,162		60,062		7	%		-4	%
Total Revenue				$	246,454		248,797		100	%		3	%			$	766,149		747,532		100	%		2	%
PROFESSIONAL DEVELOPMENT
Knowledge Services:
Print Books				$	55,955		64,497		52	%		-11	%			$	164,567		180,599		54	%		-9	%
Digital Books					11,352		13,102		10	%		-13	%				36,316		38,739		12	%		-6	%
Online Test Preparation and Certification					4,030		3,545		4	%		14	%				12,517		10,666		4	%		17	%
Other Knowledge Service Revenue					8,164		6,573		8	%		26	%				20,479		19,203		7	%		7	%
					79,501		87,717		73	%		-8	%				233,879		249,207		76	%		-6	%
Talent Solutions:
Assessment					12,891		6,484		12	%		99	%				41,200		21,625		13	%		91	%
Online Learning and Training (A)					16,195		-		15	%							31,502				10	%
					29,086		6,484		27	%		349	%				72,702		21,625		24	%		236	%
Total Revenue				$	108,587		94,201		100	%		17	%			$	306,581		270,832		100	%		13	%
EDUCATION
Books:
Print Textbooks				$	40,473		54,389		36	%		-23	%			$	126,786		140,963		114	%		-9	%
Digital Books					11,042		7,962		10	%		41	%				25,196		21,522		23	%		18	%
					51,515		62,351		46	%		-14	%				151,982		162,485		137	%		-5	%
Custom Products					13,625		12,892		12	%		6	%				49,560		43,966		45	%		13	%
Course Workflow Solutions (WileyPLUS)					20,841		18,575		19	%		13	%				40,552		35,587		37	%		15	%
Education Services (Deltak)					22,974		19,144		21	%		20	%				58,908		50,395		53	%		17	%
Other Education Revenue					1,909		1,973		2	%		-3	%				7,062		7,309		6	%		-3	%
Total Revenue				$	110,864		114,935		100	%		-2	%			$	308,064		299,742		278	%		4	%

Note: Segment Revenue Categorization

Wiley has modified its segment product revenue categories to reflect recent changes to the business, including acquisitions and restructuring. All prior periods have been revised to reflect the new categorization.

(A) Quarter to date results include five months for the Company's most recent acquisition, CrossKnowledge Group, Ltd, acquired in May 2014, which was previously reported on a two-month lag

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
					January 31,				April 30,
					2015		2014		2014
Current Assets
Cash & cash equivalents				$	260,215		315,985		486,377
Accounts receivable					220,311		205,796		149,733
Inventories					65,027		79,168		75,495
Prepaid and other					68,369		60,540		78,057
Total Current Assets					613,922		661,489		789,662
Product Development Assets					71,124		89,142		82,940
Technology, Property and Equipment					187,643		181,092		188,718
Intangible Assets					933,299		961,931		984,661
Goodwill					964,818		856,707		903,665
Income Tax Deposits					60,133		61,086		64,037
Other Assets					63,069		61,799		63,682
Total Assets					2,894,008		2,873,246		3,077,365
Current Liabilities
Short-term debt					100,000		-		-
Accounts and royalties payable					202,173		205,154		142,534
Deferred revenue					307,783		279,681		385,654
Accrued employment costs					79,063		88,514		118,503
Accrued income taxes					9,450		6,802		13,324
Accrued pension liability					4,567		4,386		4,671
Other accrued liabilities					61,025		48,017		64,901
Total Current Liabilities					764,061		632,554		729,587
Long-Term Debt					588,111		634,000		700,100
Accrued Pension Liability					144,818		195,037		164,634
Deferred Income Tax Liabilities					222,922		199,660		222,482
Other Long-Term Liabilities					89,016		76,005		78,314
Shareholders' Equity					1,085,080		1,135,990		1,182,248
Total Liabilities & Shareholders' Equity				$	2,894,008		2,873,246		3,077,365

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW
(in thousands)
					Nine Months Ended
					January 31,
					2015			2014
Operating Activities:
Net income				$	129,971			124,619
Amortization of intangibles					38,859			33,066
Amortization of composition costs					30,695			33,940
Depreciation of technology, property and equipment					46,225			43,596
Restructuring and impairment charges					23,879			32,113
Restructuring payments					(25,473	)		(20,136	)
Deferred tax benefits on U.K. rate changes					-			(10,634	)
Share-based compensation expense					11,778			10,995
Excess tax (benefits) charges from share-based compensation					(2,487	)		2,880
Royalty advances					(77,265	)		(83,237	)
Earned royalty advances					77,755			77,663
Other non-cash charges and credits					30,407			37,766
Change in deferred revenue					(62,822	)		(91,174	)
Income tax deposit					(6,814	)		(10,433	)
Net change in operating assets and liabilities, excluding acquisitions					(60,557	)		(27,227	)
Cash Provided by Operating Activities					154,151			153,797
Investments in organic growth:
Composition spending					(26,872	)		(30,460	)
Additions to technology, property and equipment					(47,293	)		(38,733	)
Free Cash Flow					79,986			84,604
Other Investing and Financing Activities:
Acquisitions, net of cash					(172,661	)		(5,150	)
Escrowed proceeds from sale of consumer publishing programs					1,100			-
Repayment of long-term debt					(550,083	)		(486,600	)
Borrowings of long-term debt					435,700			447,600
Borrowings of short-term debt					100,000			-
Change in book overdrafts					(8,742	)		(21,859	)
Cash dividends					(51,491	)		(44,182	)
Purchase of treasury shares					(61,981	)		(38,533	)
Proceeds from exercise of stock options and other					24,492			48,540
Excess tax benefits (charges) from share-based compensation					2,487			(2,880	)
Cash Used for Investing and Financing Activities					(281,179	)		(103,064	)
Effects of Exchange Rate Changes on Cash					(24,969	)		305
Decrease in Cash and Cash Equivalents for Period				$	(226,162	)		(18,155	)
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
Composition spending				$	(26,872	)		(30,460	)
Additions to technology, property and equipment					(47,293	)		(38,733	)
Acquisitions, net of cash					(172,661	)		(5,150	)
Escrowed proceeds from sale of consumer publishing programs					1,100			-
Cash Used for Investing Activities				$	(245,726	)		(74,343	)
Financing Activities:
Cash Used for Investing and Financing Activities				$	(281,179	)		(103,064	)
Excluding:
Acquisitions, net of cash					(172,661	)		(5,150	)
Escrowed proceeds from sale of consumer publishing programs					1,100			-
Cash Used for Financing Activities				$	(109,618	)		(97,914	)

Note: The Company’s management evaluates performance using free cash flow. The Company believes free cash flow provides a meaningful and comparable measure of performance. Since free cash flow is not a measure calculated in accordance with GAAP, it should not be considered as a substitute for other GAAP measures, including cash used for or provided by operating activities, investing activities and financing activities, as an indicator of performance.

John Wiley & Sons, Inc.
Investor:
Brian Campbell, 201-748-6874
Investor Relations
brian.campbell@wiley.com
or
Media:
Linda Dunbar, 201-748-6390
Media Relations
ldunbar@wiley.com