News Details

• Fourth quarter revenue of $442 million, up 2% on a constant currency basis. Fiscal year revenue of $1,822 million, up 4% on a constant currency basis
• Percent of full-year revenue from digital products and services increased to 60% from 55% for the prior year. Percent of full-year revenue from print books declined to 25%
• Fourth quarter adjusted EPS of $0.81, up 17% on a constant currency basis. Fiscal year adjusted EPS of $3.26, up 10% on a constant currency basis
• Fiscal Year 2016 outlook of low-single-digit revenue growth and flat EPS growth on a constant currency basis and excluding the adverse transitional impact of shifting to time-based journal subscription agreements

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 fourth quarter and fiscal year 2015, ending April 30, 2015:

															Change
$ millions					FY15					FY14					Excluding FX					Including FX
ADJUSTED
Revenue
Q4					$442					$457					2	%				(3	%)
Full Year					$1,822					$1,775					4	%				3	%
EPS
Q4					$0.81					$0.77					17	%				5	%
Full Year					$3.26					$3.05					10	%				7	%
US GAAP
Revenue
Q4					$442					$457										(3	%)
Full Year					$1,822					$1,775										3	%
EPS
Q4					$0.79					$0.60										32	%
Full Year					$2.97					$2.70										10	%

Please see the attached financial schedules for more detail

Management Commentary

“We are pleased to report that we delivered on our revenue and earnings guidance for the year,” said Mark Allin, President and CEO of Wiley. “On a constant currency basis, our largest and most profitable business, Research journals (‘Research Communication’) delivered 4% revenue growth for the year. Our strategic digital solutions businesses also contributed to our growth, with digital products and services rising to 60% of revenues for the full year. Revenue growth, the continued shift to digital, and additional savings from restructuring all contributed to 9% operating income growth for the year.”

Fiscal Year 2016 Outlook

Wiley’s fiscal year 2016 outlook is for low-single-digit revenue growth and flat adjusted EPS growth on a constant currency basis and excluding the adverse transitional impact of shifting to time-based journal subscription agreements. As previously announced, Wiley is moving to time-based digital journal subscription agreements for calendar year 2016 in order to simplify the contracting and administration of such agreements. The change will shift roughly $35 million of revenue and $0.35 of EPS from FY16 to FY17, with recurring effect annually thereafter. The change will not impact free cash flow. Included in the EPS guidance is an incremental expense impact of more than $0.15 for the previously announced ERP implementation as compared to FY15.

Foreign Exchange (FX)

Wiley generates half of its revenue from outside the United States, and is therefore exposed to a stronger dollar, particularly in relation to the euro and pound sterling. For fiscal year 2015, the weighted average rates for sterling and the euro were 1.60 and 1.25, respectively, on a US dollar equivalent basis. Also, 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, deferred tax benefits related to a UK corporate income tax rate reduction, and other nonrecurring tax benefits. 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.

Fourth Quarter Summary

• Revenue on a constant currency basis rose 2% to $442 million. Growth in Professional Development (+10%), aided by the CrossKnowledge and Profiles International acquisitions, and Education (+2%) offset a decline in Research (-1%). Organic revenue decreased 1% at constant currency, while revenue on a US GAAP basis declined 3% due to the adverse impact of foreign exchange.
• Adjusted earnings per share (EPS) on a constant currency basis grew 17% to $0.81 due to restructuring savings, higher gross margins from the shift to digital, and a lower effective income tax rate. Adjusted EPS excludes certain one-time or unusual items in both years as further described in the attached reconciliation of US GAAP to Adjusted EPS. US GAAP EPS for the fourth quarter grew 32%.
• Wiley recorded a restructuring charge of $4.9 million this quarter for severance and other costs related to reorganization and consolidation across the business.
• CEO Update: In the quarter, EVP and COO Mark Allin was named Wiley’s 12th President and CEO after the retirement of Stephen M. Smith. Prior to serving as Chief Operating Officer, Mr. Allin had been EVP, Professional Development.

Fiscal Year Summary

• Revenue on a constant currency basis grew 4% over prior year to $1,822 million, with organic growth in Research (+2%) and Education (+3%), as well as contributions from acquisitions in Professional Development (+13%), driving results. Total organic revenue, which excludes CrossKnowledge and Profiles International, increased modestly (+1%) over prior year at constant currency. Revenue grew 3% on a US GAAP basis.
• Adjusted EPS on a constant currency basis grew 10% to $3.26 with revenue growth, higher gross margins from the shift to digital, restructuring savings, and a lower effective income tax rate. The adverse impact of foreign exchange compared to the prior year was -$0.11 per share. Adjusted EPS excludes certain one-time or unusual items in both years, as described in the attached reconciliation of US GAAP to Adjusted EPS. US GAAP EPS for fiscal year 2015 was $2.97 vs. $2.70 in the prior year.
• Adjusted shared services and administrative costs were essentially flat for the year at $494 million due to restructuring, procurement, and outsourcing savings offset by additional investment in new business growth. Lower Distribution and Operation Services (-10%) and Finance (-1%) expense offset higher Technology and Content Management (+2%) and Other Administration (+6%) expense.
• Restructuring Charges: Wiley recorded $29 million in restructuring charges principally related to facility consolidations and dispositions in connection with prior restructuring actions, as well as severance costs related to reorganization and consolidation.
• Free Cash Flow of $247 million was $4 million behind prior year due to increased investment in technology and restructuring payments related to severance.
• Net Debt and Cash Position: Net debt (long-term debt less cash and cash equivalents) at the end of April was $293 million, up from $214 million at the end of the prior year due to the acquisition of CrossKnowledge. Net debt to EBITDA was at 0.7 on a trailing twelve month basis. Cash and cash equivalents as of April 30, 2015 were $457 million.
• Share repurchases: In fiscal year 2015, Wiley repurchased 1.1 million shares for $62 million, an average cost of $57.26. As of April 30, the Company had nearly 2.2 million shares remaining in the repurchase program announced in June 2013. Wiley did not repurchase shares in the fourth quarter.
• Dividend: In June 2014, Wiley increased its quarterly dividend by 16% to $0.29, or $1.16 annualized. It was the 21st consecutive annual increase.

RESEARCH

• Revenue: Fourth quarter revenue on a constant currency basis declined 1% to $275 million, with a decline in journal subscription (-2%) and print book (-8%) revenue offsetting growth in other journal revenue (+6%), digital books (+3%), and funded access (+3%). For the year, revenue on a constant currency basis rose 2% to $1,041 million, driven by journal subscriptions (+1%), funded access (+29%), and other journal revenue (+15%), which offset an overall book decline of 7%.
• Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit grew 2% on a constant currency basis to $99 million, with procurement and outsourcing savings offsetting the revenue decline. For the year, adjusted contribution to profit grew 5% on a constant currency basis to $320 million, reflecting revenue growth and gross margin expansion. Gross margin improved due to procurement and outsourcing savings, as well as the continuing shift to digital.
• Calendar Year 2015 Journal Subscriptions: At the end of April, calendar year 2015 journal subscriptions were up 1% on a constant currency basis, with 97% of targeted business closed for the 2015 volume year.
• Society Business: Two new society contracts were signed in the three month period ending April with combined annual revenue of $4 million; 11 were renewed with combined annual revenue of $4 million; and five with combined annual revenue of $5 million were not renewed. For calendar year 2015, nine new society contracts were signed with combined annual revenue of $4 million, and seven with combined annual revenue of $8 million were not renewed, for an annualized revenue loss on a calendar year basis of $4 million. This compares to an annualized revenue gain of $11 million in CY14 and $20 million in CY13. Additionally, CY15 includes renewals of 121 contracts with combined annual revenue of $57 million.

PROFESSIONAL DEVELOPMENT

• Revenue: Fourth quarter revenue grew 10% on a constant currency basis to $100 million due to revenue contributions from CrossKnowledge and Profiles International (+$15 million) and strong growth in Online Test Preparation (+34%), which more than offset continued weakness in Book sales (-9%). Excluding the acquisitions, which were closed on May 1 and April 1, 2014, respectively, revenue declined 5%. For the year, revenue on a constant currency basis increased 13% to $407 million, but decreased 5% excluding the acquisitions, driven by a continued decline in print and digital books.
• Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit grew 30% on a constant currency basis to $12 million primarily due to restructuring savings, which offset modest dilution from the two recent acquisitions. For the year, adjusted contribution to profit grew 28% to $43 million. Gross margin improved due to the shift to higher margin solutions businesses.
• Institute of Management Accountants (IMA) India Partnership: In the quarter, the IMA^® announced a partnership agreement in India with Wiley to offer Wiley’s Certified Management Accountant Exam (CMA) Learning System as part of a full offering that includes live training from Miles Professional Education, a major professional certification course provider in India.

EDUCATION

• Revenue: Fourth quarter revenue rose 2% on a constant currency basis to $67 million. Revenue growth from Education Services/Deltak (+15%), Digital Books (+7%), and Course Workflow/WileyPLUS (+1%) offset a decline in Print Textbooks (-15%). For the year, Education revenue increased 3% on a constant currency basis to $375 million with double digit growth in Education Services/Deltak (+16%), Custom Products (+16%), WileyPLUS (+11%), and Digital Books (+15%) offsetting a 9% decline in Print Textbooks.
• Adjusted Contribution to Profit: Fourth quarter adjusted contribution to profit improved 13% to a seasonal loss of $8 million, reflecting revenue growth and gross margin expansion. For the year, adjusted contribution to profit increased 1% to $48 million, excluding the impact of foreign exchange. Continued investment in Education Services/Deltak offset revenue growth and restructuring savings. Gross profit improved modestly due to portfolio management and improvements in composition costs.
• Online Program Management (OPM): Education Services/Deltak secured two new large university partners in the quarter, the University of Delaware (US) and University College Cork (Ireland). University College Cork is the second international partner signed by Deltak and is one of Ireland’s largest educational institutions, with 18,000 students. At fiscal year-end, Deltak had 38 partners and 200 degree programs under contract.

Earnings Conference Call

• Scheduled for today, June 16, at 10:00 a.m. (EDT)
• 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) 505-4375 and enter the participant code 3217239#
• International callers, please dial (719) 325-2435 and enter the participant code 3217239#
• 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 corporate learning 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 FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2015 AND 2014
(in thousands, except per share amounts)
FOURTH QUARTER ENDED APRIL 30,
							2015															2014															% Change
							US GAAP					Adjustments (A,C)					Adjusted					US GAAP					Adjustments (A,C)					Adjusted					US GAAP					Adjusted excl. FX
Revenue					$		441,646					-					441,646					457,089					-					457,089					-3	%				2	%
Costs and Expenses
Cost of Sales							116,844					-					116,844					126,173					-					126,173					-7	%				-3	%
Operating and Administrative							249,459					-					249,459					256,366					-					256,366					-3	%				2	%
Restructuring Charges (A)							4,925					(4,925	)				-					15,395					(15,395	)				-
Amortization of Intangibles							12,355					-					12,355					11,613					-					11,613					6	%				11	%
Total Costs and Expenses							383,583					(4,925	)				378,658					409,547					(15,395	)				394,152					-6	%				1	%
Operating Income							58,063					4,925					62,988					47,542					15,395					62,937					22	%				10	%
Operating Margin							13.1	%									14.3	%				10.4	%									13.8	%
Interest Expense							(4,062	)				-					(4,062	)				(3,568	)				-					(3,568	)				14	%				14	%
Foreign Exchange Gain							(1,086	)				-					(1,086	)				(337	)				-					(337	)
Interest Income and Other							839					-					839					690					-					690					22	%				22	%
Income Before Taxes							53,754					4,925					58,679					44,327					15,395					59,722					21	%				10	%
Provision for Income Taxes (A,C)							6,857					3,945					10,802					8,436					5,331					13,767					-19	%				-8	%
Net Income					$		46,897					980					47,877					35,891					10,064					45,955					31	%				16	%
Earnings Per Share- Diluted (A,C)					$		0.79					0.02					0.81					0.60					0.17					0.77					32	%				17	%
Average Shares - Diluted							59,368					59,368					59,368					59,925					59,925					59,925
TWELVE MONTHS ENDED APRIL 30,
							2015															2014															% Change
							US GAAP					Adjustments (A,C)					Adjusted					US GAAP					Adjustments (A-D)					Adjusted					US GAAP					Adjusted excl. FX
Revenue					$		1,822,440					-					1,822,440					1,775,195					-					1,775,195					3	%				4	%
Costs and Expenses
Cost of Sales							499,683					-					499,683					506,879					-					506,879					-1	%				0	%
Operating and Administrative							1,005,000					-					1,005,000					969,456					-					969,456					4	%				5	%
Restructuring Charges (A)							28,804					(28,804	)				-					42,722					(42,722	)				-
Impairment Charges (B)							-					-					-					4,786					(4,786	)				-
Amortization of Intangibles							51,214					-					51,214					44,679					-					44,679					15	%				14	%
Total Costs and Expenses							1,584,701					(28,804	)				1,555,897					1,568,522					(47,508	)				1,521,014					1	%				3	%
Operating Income							237,739					28,804					266,543					206,673					47,508					254,181					15	%				9	%
Operating Margin							13.0	%									14.6	%				11.6	%									14.3	%
Interest Expense							(17,077	)				-					(17,077	)				(13,916	)				-					(13,916	)				23	%				23	%
Foreign Exchange Gain							1,742					-					1,742					(8	)				-					(8	)
Interest Income and Other							3,057					-					3,057					2,785					-					2,785					10	%				10	%
Income Before Taxes							225,461					28,804					254,265					195,534					47,508					243,042					15	%				8	%
Provision for Income Taxes (A-D)							48,593					11,599					60,192					35,024					26,457					61,481					39	%				1	%
Net Income					$		176,868					17,205					194,073					160,510					21,051					181,561					10	%				10	%
Earnings Per Share- Diluted (A-D)					$		2.97					0.29					3.26					2.70					0.35					3.05					10	%				10	%
Average Shares - Diluted							59,594					59,594					59,594					59,514					59,514					59,514
See the accompanying Notes to Unaudited Financial Statements for a description of each Adjustment.

JOHN WILEY & SONS, INC.
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2015 AND 2014
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
					Fourth Quarter Ended																		Twelve Months Ended
					April 30,																		April 30,
					2015									2014									2015									2014
US GAAP Earnings Per Share - Diluted					$			0.79						$			0.60						$			2.97						$			2.70
Adjusted to exclude the following:
Restructuring Charges (A)								(0.07	)								(0.17	)								(0.34	)								(0.48	)
Impairment Charges (B)								-									-									-									(0.06	)
Non-recurring Tax Benefit (C)								0.05									-									0.05									-
Deferred Income Tax Benefit on UK Rate Change (D)								-									-									-									0.18
Adjusted Earnings Per Share - Diluted					$			0.81						$			0.77						$			3.26						$			3.05

NOTES TO UNAUDITED FINANCIAL STATEMENTS
Adjustments:
(A)		RESTRUCTURING CHARGES: The adjusted results for the three and twelve months ended April 30, 2015 and the three and twelve months ended April 30, 2014 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $4.9 million or $0.07 per share, $28.8 million or $0.34 per share, $15.4 million or $0.17 per share, and $42.7 million or $0.48 per share, respectively.
(B)		IMPAIRMENT CHARGES: The adjusted results for the twelve months ended April 30, 2014 exclude impairment charges related to certain technology investments of $4.8 million or $0.06 per share.
(C)		NON-RECURRING TAX BENEFIT: The adjusted results for the three and twelve months ended April 30, 2015 reflect a non-recurring tax benefit of $3.1 million or $0.05 per share related to tax deductions claimed on the write-up of certain foreign tax assets to fair market value.
(D)		Deferred Income Tax Benefit on UK Rate Change: The adjusted results for the twelve months ended April 30, 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 FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2015 and 2014
(in thousands)
FOURTH QUARTER ENDED APRIL 30,
				2015															2014																% Change
				US GAAP					Adjustments (A)				Adjusted						US GAAP					Adjustments (A)					Adjusted						US GAAP					Adjusted excl. FX
Revenue
Research		$		274,646					-				274,646						296,817					-					296,817						-7	%				-1	%
Professional Development				100,442					-				100,442						93,037					-					93,037						8	%				10	%
Education				66,558					-				66,558						67,235					-					67,235						-1	%				2	%
Total		$		441,646					-				441,646						457,089					-					457,089						-3	%				2	%
Direct Contribution to Profit
Research		$		139,258					233				139,491						145,240					3,184					148,424						-4	%				0	%
Professional Development				36,234					552				36,786						28,901					7,026					35,927						25	%				5	%
Education				11,149					487				11,636						8,937					516					9,453						25	%				28	%
Total		$		186,641					1,272				187,913						183,078					10,726					193,804						2	%				3	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research		$		99,186					233				99,419						101,081					3,184					104,265						-2	%				2	%
Professional Development				11,486					552				12,038						2,654					7,026					9,680						333	%				30	%
Education				(8,582	)				487				(8,095	)					(9,715	)				516					(9,199	)					12	%				13	%
Total		$		102,090					1,272				103,362						94,020					10,726					104,746						9	%				6	%
Unallocated Shared Services and Admin. Costs				(44,027	)				3,653				(40,374	)					(46,478	)				4,669					(41,809	)					-5	%				0	%
Operating Income		$		58,063					4,925				62,988						47,542					15,395					62,937						22	%				10	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services		$		(21,031	)				131				(20,900	)					(27,111	)				3,421					(23,690	)					-22	%				-6	%
Technology and Content Management				(63,662	)				1,337				(62,325	)					(64,024	)				777					(63,247	)					-1	%				1	%
Finance				(13,564	)				74				(13,490	)					(14,593	)				(321	)				(14,914	)					-7	%				-6	%
Other Administration				(30,321	)				2,111				(28,210	)					(29,808	)				792					(29,016	)					2	%				1	%
Total		$		(128,578	)				3,653				(124,925	)					(135,536	)				4,669					(130,867	)					-5	%				-1	%
TWELVE MONTHS ENDED APRIL 30,
				2015															2014																% Change
				US GAAP					Adjustments (A)				Adjusted						US GAAP					Adjustments (A-B)					Adjusted						US GAAP					Adjusted excl. FX
Revenue
Research		$		1,040,795					-				1,040,795						1,044,349					-					1,044,349						0	%				2	%
Professional Development				407,023					-				407,023						363,869					-					363,869						12	%				13	%
Education				374,622					-				374,622						366,977					-					366,977						2	%				3	%
Total		$		1,822,440					-				1,822,440						1,775,195					-					1,775,195						3	%				4	%
Direct Contribution to Profit
Research		$		483,413					4,555				487,968						479,419					7,774					487,193						1	%				2	%
Professional Development				140,588					4,385				144,973						128,976					11,860					140,836						9	%				4	%
Education				125,870					1,571				127,441						121,978					891					122,869						3	%				5	%
Total		$		749,871					10,511				760,382						730,373					20,525					750,898						3	%				3	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research		$		315,789					4,555				320,344						305,727					7,774					313,501						3	%				5	%
Professional Development				38,116					4,385				42,501						22,167					11,860					34,027						-					28	%
Education				46,175					1,571				47,746						47,787					891					48,678						-3	%				1	%
Total		$		400,080					10,511				410,591						375,681					20,525					396,206						6	%				7	%
Unallocated Shared Services and Admin. Costs				(162,341	)				18,293				(144,048	)					(169,008	)				26,983					(142,025	)					-4	%				2	%
Operating Income		$		237,739					28,804				266,543						206,673					47,508					254,181						15	%				9	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services		$		(92,791	)				4,567				(88,224	)					(105,445	)				6,012					(99,433	)					-12	%				-10	%
Technology and Content Management				(248,914	)				2,622				(246,292	)					(255,349	)				14,020					(241,329	)					-3	%				2	%
Finance				(53,133	)				145				(52,988	)					(55,029	)				561					(54,468	)					-3	%				-1	%
Other Administration				(117,294	)				10,959				(106,335	)					(107,877	)				6,390					(101,487	)					9	%				6	%
Total		$		(512,132	)				18,293				(493,839	)					(523,700	)				26,983					(496,717	)					-2	%				0	%
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 FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2015 and 2014
(in thousands)
						Fourth Quarter Ended																			Twelve Months Ended
						April 30,																			April 30,
						2015				2014				% Change					% Change excl. FX						2015				2014				% Change					% Change excl. FX
Research:
Direct Contribution to Profit				$		139,258				145,240				-4	%				2	%					483,413				479,419				1	%				3	%
Restructuring Charges (A)						233				3,184															4,555				7,774
Adjusted Direct Contribution to Profit						139,491				148,424				-6	%				0	%					487,968				487,193				0	%				2	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services						(10,461	)			(10,972	)			-5	%				4	%					(44,602	)			(45,773	)			-3	%				-1	%
Technology and Content Management						(24,256	)			(25,953	)			-7	%				-2	%					(99,696	)			(101,922	)			-2	%				-2	%
Occupancy and Other						(5,355	)			(7,234	)			-26	%				-19	%					(23,326	)			(25,997	)			-10	%				-9	%
Adjusted Contribution to Profit (after allocated				$		99,419				104,265				-5	%				2	%					320,344				313,501				2	%				5	%
Shared Services and Admin. Costs)
Professional Development:
Direct Contribution to Profit				$		36,234				28,901				25	%				29	%					140,588				128,976				9	%				10	%
Restructuring Charges (A)						552				7,026															4,385				11,860
Adjusted Direct Contribution to Profit						36,786				35,927				2	%				5	%					144,973				140,836				3	%				4	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services						(7,167	)			(8,883	)			-19	%				-16	%					(30,838	)			(37,673	)			-18	%				-17	%
Technology and Content Management						(12,227	)			(12,502	)			-2	%				-1	%					(47,574	)			(50,374	)			-6	%				-6	%
Occupancy and Other						(5,354	)			(4,862	)			10	%				12	%					(24,060	)			(18,762	)			28	%				29	%
Adjusted Contribution to Profit (after allocated				$		12,038				9,680				24	%				30	%					42,501				34,027				25	%				28	%
Shared Services and Admin. Costs)
Education:
Direct Contribution to Profit				$		11,149				8,937				25	%				30	%					125,870				121,978				3	%				5	%
Restructuring Charges (A)						487				516															1,571				891
Adjusted Direct Contribution to Profit						11,636				9,453				23	%				28	%					127,441				122,869				4	%				5	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services						(2,977	)			(3,698	)			-19	%				-14	%					(12,863	)			(15,685	)			-18	%				-16	%
Technology and Content Management						(13,324	)			(11,808	)			13	%				15	%					(52,954	)			(46,787	)			13	%				14	%
Occupancy and Other						(3,430	)			(3,146	)			9	%				9	%					(13,878	)			(11,719	)			18	%				19	%
Adjusted Contribution to Profit (after allocated				$		(8,095	)			(9,199	)			12	%				13	%					47,746				48,678				-2	%				1	%
Shared Services and Admin. Costs)
Total Adjusted Contribution to Profit (after				$		103,362				104,746				-1	%				6	%					410,591				396,206				4	%				7	%
allocated Shared Services and Admin. Costs)
Unallocated Shared Services and Admin. Costs:
Unallocated Shared Services and Admin. Costs				$		(44,027	)			(46,478	)			-5	%				-2	%					(162,341	)			(169,008	)			-4	%				-3	%
Restructuring Charges (A)						3,653				4,669															18,293				22,197
Impairment Charges (B)						-				-															-				4,786
Adjusted Unallocated Shared Services and Admin. Costs				$		(40,374	)			(41,809	)			-3	%				0	%					(144,048	)			(142,025	)			1	%				2	%
Adjusted Operating Income				$		62,988				62,937				0	%				10	%					266,543				254,181				5	%				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 FOURTH QUARTER AND TWELVE MONTHS ENDED
APRIL 30, 2015 and 2014
(in thousands)
								Fourth Quarter																				Twelve Months
								Ended April 30,								% of					% Change							Ended April 30,							% of					% Change
								2015				2014				Revenue					excl. FX							2015				2014			Revenue					excl. FX
RESEARCH
	Research Communication:
		Journal Subscriptions				$		173,562				188,931				63	%				-2	%				$		664,455				667,305			64	%				1	%
		Funded Access						5,826				6,135				2	%				3	%						22,388				17,673			2	%				29	%
		Other Journal Revenue						36,222				37,438				13	%				6	%						126,942				113,925			12	%				15	%
								215,610				232,504				79	%				-1	%						813,785				798,903			78	%				4	%
	Books and References:
		Print Books						21,214				24,652				8	%				-8	%						101,872				114,135			10	%				-9	%
		Digital Books						15,396				16,105				6	%				3	%						45,550				47,693			4	%				-2	%
								36,610				40,757				13	%				-3	%						147,422				161,828			14	%				-7	%
	Other Research Revenue							22,426				23,556				8	%				4	%						79,588				83,618			8	%				-2	%
		Total Revenue				$		274,646				296,817				100	%				-1	%				$		1,040,795				1,044,349			100	%				2	%
PROFESSIONAL DEVELOPMENT
	Knowledge Services:
		Print Books				$		44,917				51,385				45	%				-9	%				$		209,484				231,984			51	%				-9	%
		Digital Books						13,506				15,025				13	%				-9	%						49,822				53,764			12	%				-7	%
		Online Test Preparation and Certification						6,051				4,526				6	%				34	%						18,568				15,192			5	%				22	%
		Other Knowledge Service Revenue						9,891				10,679				10	%				-6	%						30,370				29,882			7	%				2	%
								74,365				81,615				74	%				-6	%						308,244				330,822			76	%				-6	%
	Talent Solutions:
		Assessment						15,562				11,422				15	%				36	%						56,762				33,047			14	%				72	%
		Online Learning and Training						10,515				-				10	%											42,017							10	%
								26,077				11,422				26	%				128	%						98,779				33,047			24	%				199	%
		Total Revenue				$		100,442				93,037				100	%				10	%				$		407,023				363,869			100	%				13	%
EDUCATION
	Books:
	Print Textbooks					$		17,630				22,189				25	%				-15	%				$		144,416				163,152			39	%				-9	%
	Digital Books							8,840				8,615				13	%				7	%						34,036				30,137			9	%				15	%
								26,470				30,804				40	%				-9	%						178,452				193,289			48	%				-6	%
	Custom Products							1,062				(410	)			2	%				-							50,622				43,556			14	%				16	%
	Course Workflow Solutions (WileyPLUS)							13,671				13,872				21	%				1	%						54,223				49,459			14	%				11	%
	Education Services (Deltak)							22,687				19,784				34	%				15	%						81,595				70,179			22	%				16	%
	Other Education Revenue							2,668				3,185				4	%				-16	%						9,730				10,494			3	%				-7	%
		Total Revenue				$		66,558				67,235				100	%				2	%				$		374,622				366,977			100	%				3	%
Note: Segment Revenue Categorization

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FINANCIAL POSITION
(in thousands)
							April 30,
							2015							2014
Current Assets
Cash & cash equivalents					$		457,441							486,377
Accounts receivable							147,183							149,733
Inventories							63,779							75,495
Prepaid and other							72,516							78,057
Total Current Assets							740,919							789,662
Product Development Assets							69,589							82,940
Technology, Property and Equipment							193,010							188,718
Intangible Assets							917,621							984,661
Goodwill							962,367							903,665
Income Tax Deposits							57,098							64,037
Other Assets							63,639							63,682
Total Assets							3,004,243							3,077,365
Current Liabilities
Short-term debt							100,000							-
Accounts and royalties payable							161,465							142,534
Deferred revenue							372,051							385,654
Accrued employment costs							93,922							118,503
Accrued income taxes							9,484							13,324
Accrued pension liability							4,594							4,671
Other accrued liabilities							62,167							64,901
Total Current Liabilities							803,683							729,587
Long-Term Debt							650,090							700,100
Accrued Pension Liability							209,727							164,634
Deferred Income Tax Liabilities							198,947							222,482
Other Long-Term Liabilities							86,756							78,314
Shareholders' Equity							1,055,040							1,182,248
Total Liabilities & Shareholders' Equity					$		3,004,243							3,077,365

JOHN WILEY & SONS, INC.
UNAUDITED STATEMENTS OF FREE CASH FLOW
(in thousands)
							Twelve Months Ended
							April 30,
							2015						2014
Operating Activities:
Net income					$		176,868						160,510
Amortization of intangibles							51,214						44,679
Amortization of composition costs							40,639						45,097
Depreciation of technology, property and equipment							62,072						58,321
Restructuring and impairment charges							28,804						47,508
Restructuring payments							(32,341	)					(28,276	)
Deferred tax benefits on U.K. rate changes							-						(10,634	)
Share-based compensation expense							13,617						12,851
Employee retirement plan expense							22,599						30,454
Excess tax (benefits) charges from share-based compensation							(3,191	)					1,466
Royalty advances							(103,136	)					(107,639	)
Earned royalty advances							108,314						107,529
Other non-cash charges and credits							(8,046	)					(3,626	)
Change in deferred revenue							3,913						(750	)
Income tax deposit							(5,280	)					(11,968	)
Net change in operating assets and liabilities, excluding acquisitions							(924	)					2,702
Cash Provided by Operating Activities							355,122						348,224
Investments in organic growth:
Composition spending							(39,421	)					(40,568	)
Additions to technology, property and equipment							(69,121	)					(57,564	)
Free Cash Flow							246,580						250,092
Other Investing and Financing Activities:
Acquisitions, net of cash							(172,229	)					(54,515	)
Escrowed proceeds from sale of consumer publishing programs							1,100						3,300
Repayment of long-term debt							(711,654	)					(658,224	)
Borrowings of long-term debt							659,369						685,324
Borrowings of short-term debt							100,000						-
Change in book overdrafts							(6,711	)					(12,354	)
Cash dividends							(68,498	)					(58,953	)
Purchase of treasury shares							(61,981	)					(63,393	)
Proceeds from exercise of stock options and other							25,326						55,532
Excess tax benefits (charges) from share-based compensation							3,191						(1,466	)
Cash Used for Investing and Financing Activities							(232,087	)					(104,749	)
Effects of Exchange Rate Changes on Cash							(43,429	)					6,894
Decrease in Cash and Cash Equivalents for Period					$		(28,936	)					152,237
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
Composition spending					$		(39,421	)					(40,568	)
Additions to technology, property and equipment							(69,121	)					(57,564	)
Acquisitions, net of cash							(172,229	)					(54,515	)
Escrowed proceeds from sale of consumer publishing programs							1,100						3,300
Cash Used for Investing Activities					$		(279,671	)					(149,347	)
Financing Activities:
Cash Used for Investing and Financing Activities					$		(232,087	)					(104,749	)
Excluding:
Acquisitions, net of cash							(172,229	)					(54,515	)
Escrowed proceeds from sale of consumer publishing programs							1,100						3,300
Cash Used for Financing Activities					$		(60,958	)					(53,534	)

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:
Helen Bray, +441243770185
Corporate Communications
hbray@wiley.com