News Details

• Full year revenue and EPS results match guidance for flat revenue and EPS excluding the transitional (non-cash) impact of shifting to time-based journal subscriptions, foreign exchange, and certain charges and credits
• Percent of full-year revenue from digital products and services increased to 63% from 60% in the prior year. Percent of full-year revenue from print books declined to 23% from 25%
• Calendar year 2016 Journal Subscriptions up 1% on a constant currency basis with approximately 95% of targeted business under contract

John Wiley & Sons, Inc. (NYSE:JWa and JWb), a global provider of knowledge and learning solutions that improve outcomes in research, professional practice, and education, today announced the following results for the fourth quarter and twelve months of fiscal year 2016:

									% Change
$ millions			FY16			FY15			Excluding FX			Including FX
Revenue:
Q4			$434.3			$441.6			(1%)			(2%)
Full Year			$1,727.0			$1,822.4			(2%)			(5%)
GAAP EPS:
Q4			$0.59			$0.79						(25%)
Full Year			$2.48			$2.97						(16%)
Adjusted EPS:
Q4			$0.67			$0.81			(19%)			(17%)
Full Year			$2.70			$3.26			(13%)			(17%)

Note: Results include transitional adverse impact of shift to time-based journal subscriptions ($8 million revenue and $0.10 of EPS in fourth quarter; $37 million of revenue and $0.42 of EPS in full year. There is no cash impact from the change. Adjusted results exclude restructuring charges and certain tax benefits as more fully described in the attached financial schedules.

Management Commentary

“Our fourth quarter results capped the fiscal year in line with our guidance for revenue and earnings,” said Mark Allin, President and CEO. “We continued to make good progress in our transition to a digital knowledge and learning company, with nearly two-thirds of our revenue now generated from digital products and services. Our solutions businesses again delivered double-digit top line growth, notably online test preparation, corporate learning, and online program management, offsetting much of the market-driven revenue decline in traditional book publishing. Finally, our journals business achieved marginal revenue growth for the year, driven by steady subscription results and double digit growth in author-funded access.”

Fiscal Year 2017 Outlook

Operationally, Wiley’s fiscal year 2017 outlook is for revenue to be flat and adjusted EPS to be down by mid single-digits excluding both foreign exchange and the favorable impact from shifting to time-based journal subscription agreements (+$37 million in revenue and +$0.42 in EPS). The revenue projection anticipates continued modest growth in Journals and double-digit growth in Solutions to be largely offset by further declines in Book publishing. The Adjusted EPS projection reflects marginally lower operating income due to the continued book decline and investment in Solutions growth, as well as higher taxes and an anticipated rate hike impact on interest expense.

Foreign Exchange (FX)

Wiley generates half of its revenue from outside the United States, and is therefore exposed to foreign exchange rate fluctuations, 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. The weighted average rates for fiscal 2016 were 1.50 and 1.11, respectively. Note that foreign exchange was adverse to full year revenue and EPS by $61 million and $0.13, respectively. 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” contribution to profit and EPS, which exclude restructuring charges and certain tax benefits. Variances to adjusted 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 declined 1% on a constant currency basis to $434.3 million but rose 1% excluding both currency and the shift to time-based journal subscriptions ($8 million transitional impact). Operational performance was driven by growth in journal subscriptions (+1%), and double-digit growth in Corporate Learning (+35%), Author-Funded Access (+30%), WileyPLUS Course Workflow (+26%), and Online Program Management (+18%). The positive operational performance offset a 23% decline in Education textbooks and an 8% decline in Research Books and References. On a US GAAP basis, revenue declined 2% due to the unfavorable impact of foreign exchange and the transitional impact of shifting to time-based journal subscriptions.
• Adjusted EPS declined 6% excluding both currency and the shift to time-based journal subscriptions ($0.10 transitional impact). Adjusted EPS excludes restructuring charges in the current and prior year related to the outsourcing of US distribution operations, and the implementation of other operational efficiency initiatives. In addition, adjusted EPS excludes a prior year non-recurring tax benefit (+$3.1 million) on the write-up of certain foreign tax assets to fair market value. The adjusted EPS decline was mainly due to higher technology costs and investments to build share in Online Program Management and Corporate Learning. Fourth quarter EPS on a US GAAP basis declined 25% to $0.59.
• Share Repurchases: Wiley repurchased 216,186 shares this quarter at a cost of $10.3 million, an average of $47.52 per share. Approximately 747,000 shares remain in the current repurchase authorization.

Fiscal Year Summary

• Revenue declined 2% on a constant currency basis to $1,727.0 million but was flat excluding both currency and the shift to time-based journal subscriptions ($37 million transitional impact). Steady performance in journal subscriptions and double-digit growth in Author-Funded Access (+21%), Online Test Preparation (+27%), Online Program Management (+18%), Corporate Learning (+31%), and WileyPLUS Course Workflow (+10%) offset declines in Education books (-15%), Professional Development books (-4%), and Research Books and References (-1%). Wiley’s percentage of revenue from print books decreased from 25% in FY15 to 23% in FY16. On a US GAAP basis, revenue declined 5% due to the unfavorable impact of foreign exchange and the transitional impact of shifting to time-based journal subscriptions.
• Adjusted EPS declined 13% on a constant currency basis to $2.70 but was flat excluding both currency and the shift to time-based journal subscriptions ($0.42 transitional impact). Adjusted EPS excludes restructuring charges in the current and prior year related to the books businesses, the outsourcing of US distribution operations, and the implementation of other operational efficiency initiatives. It also excludes a deferred tax benefit (+$5.9 million) recorded in fiscal year 2016 related to a future reduction in the UK income tax rate and a prior year non-recurring tax benefit (+$3.1 million) related to the write-up of certain foreign tax assets to fair market value. Gross profit improvement and cost savings from the restructuring programs were offset by continued investment in Online Program Management and Corporate Learning, an increase in technology expense related to digital product development and the Enterprise Resource Planning (ERP) implementation, and higher employment costs. Full year GAAP EPS declined 16% to $2.48.
• Adjusted shared services and administrative costs rose 6% for the year to $518 million mainly due to investment in ERP and related systems, which are reported as unallocated shared services costs.
• Free Cash Flow was $219.0 million for the full year compared to $246.6 million in fiscal 2015 primarily due to the increase in capital investment (+$25 million) related to the ERP deployment and other systems. Cash from operations of $350.0 million was flat as expected. Wiley expects capex to increase again in fiscal 2017 primarily due to the Hoboken office transformation.
• Share Repurchases: In fiscal year 2016, Wiley repurchased 1.4 million shares for $70 million, an average cost of $48.86. As of April 30, the Company had nearly 747,000 shares remaining in the repurchase program announced in June 2013.
• Dividend: In June 2015, Wiley increased its quarterly dividend by 3% to $0.30, or $1.20 annualized. It was the 22nd consecutive annual increase.
• Net Debt and Cash Position: Net debt (long-term debt less cash and cash equivalents) at the end of April was $241.2 million, down from $292.6 million at the end of the prior year. Cash and cash equivalents as of April 30, 2016 were $363.8 million.
• Credit Facility: On March 1, Wiley amended its existing revolving credit agreement, increasing its capacity to $1.1 billion and extending the term by five years to March 2021.

RESEARCH

• Revenue: Fourth quarter revenue of $264.8 million was down 3% on a constant currency basis and flat excluding the $8 million transitional impact from the shift to time-based journal subscriptions. Steady performance in journal subscriptions and double-digit growth in Author-Funded Access (+30%) offset a decline in Books and References (-8%). For the full year, Research revenue was flat to prior year at constant currency and excluding the impact of the shift to time-based journal subscriptions. Full year Journal Subscriptions results were adversely impacted by the trailing effects of the Swets subscription agency bankruptcy (-$3 million).
• Calendar Year 2016 Journal Subscriptions: At the end of April, calendar year 2016 Journal Subscriptions were up 1% on a constant currency basis, with approximately 95% of targeted business under contract for the 2016 calendar year.
• Society Business: Two new society contracts were signed in the quarter with combined annual revenue of $4 million; four were renewed with combined annual revenue of $1 million; and two were not renewed with combined annual revenue of $3 million. For calendar year 2016, six new society contracts were signed (+$12 million of annual revenue) and eighteen were not renewed (-$11 million), for a net gain of $1 million in annual revenue. This compares to an annualized revenue loss of $4 million in calendar year 2015. Additionally, calendar year 2016 includes renewals of 87 contracts with combined annual revenue of $54 million.
• Adjusted Contribution to Profit (CTP): Fourth quarter adjusted CTP of $87.1 million declined 11% on a constant currency basis but was flat excluding currency and the margin impact from shifting to time-based journal subscriptions. CTP performance was adversely impacted by charges for bad debt in Venezuela (-$1 million) and an unfavorable court ruling related to royalty rights in Germany (-$1 million). For the year, adjusted CTP was down 10% at constant currency but up 2% excluding currency and the shift to time-based journal subscriptions. Fourth quarter and full year CTP on a US GAAP basis were down 11% and 14%, respectively.

PROFESSIONAL DEVELOPMENT

• Revenue: Fourth quarter revenue rose 3% on a constant currency basis to $103.1 million primarily due to double-digit growth in Corporate Learning (+35%), with gains spread broadly across France, the US, and Central and South American markets. Revenue growth in Digital Books (+6%) and Online Test Preparation (+4%) offset a 4% decline in Print Books. For the year, Professional Development revenue grew 2% due to growth in Corporate Learning (+31%) and Online Test Preparation (+27%), offsetting a decline in Books (-4%).
• Adjusted Contribution to Profit (CTP): Adjusted CTP rose 71% on a constant currency basis to $20.5 million due to continued efficiency gains and restructuring savings. Fourth quarter and full year CTP on a US GAAP basis were up 72% and 95%, respectively.

EDUCATION

• Revenue: Fourth quarter revenue increased 1% on a constant currency basis to $66.5 million, with double-digit growth in WileyPLUS Course Workflow (+26%) and Online Program Management (+18%) offsetting a decline in Textbooks (-23%). For the year, Education revenue declined 2% at constant currency to $357.5 million.
• Adjusted Contribution to Profit (CTP): Fourth quarter adjusted CTP improved 6% on a constant currency basis to a seasonal loss of $7.5 million, reflecting cost savings and margin improvement, partially offset by continued investment in new programs for Online Program Management and lower Textbook revenue. For the year, Education CTP was down 17% at constant currency to $37.1 million, reflecting the Textbook revenue decline and investment in Online Program Management. Fourth quarter and full year CTP on a US GAAP basis were down 11% and 23%, respectively.
• Online Program Management (formerly Deltak): Wiley added four net new degree programs in the quarter. At the end of April, Wiley had 226 online degree programs under contract compared to 200 at the end of the prior year period. Wiley’s partner count stands at 38.
• WileyPLUS alliance: In March, Wiley and CareerShift announced a collaboration agreement to bring personalized career search resources to business students. This alliance will make searching for jobs easier and more efficient for students who use WileyPLUS platforms with their Wiley business textbooks in accounting and management. Wiley’s association with CareerShift will offer WileyPLUS students free access to CareerShift’s search tools for planning and executing job searches.

Earnings Conference Call

• Scheduled for today, June 14, 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) 427-9419 and enter the participant code 3051041#.
• International callers, please dial (719) 325-2495 and enter the participant code 3051041#.
• 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 preparation 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 digital and print content.

JOHN WILEY & SONS, INC. UNAUDITED SUMMARY OF OPERATIONS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED APRIL 30, 2016 AND 2015 (in thousands, except per share amounts)
				FOURTH QUARTER ENDED APRIL 30,
				2016										2015										% Change
				US GAAP			Adjustments (A-B)			Adjusted				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjusted excl. FX
Revenue			$	434,301			-			434,301				441,646			-			441,646				-2	%		-1	%
Costs and Expenses
Cost of Sales				109,198			-			109,198				116,844			-			116,844				-7	%		-5	%
Operating and Administrative				261,491			-			261,491				249,459			-			249,459				5	%		6	%
Restructuring Charges (A)				7,779			(7,779	)		-				4,925			(4,925	)		-
Amortization of Intangibles				12,513			-			12,513				12,355			-			12,355				1	%		3	%
Total Costs and Expenses				390,981			(7,779	)		383,202				383,583			(4,925	)		378,658				2	%		2	%
Operating Income				43,320			7,779			51,099				58,063			4,925			62,988				-25	%		-20	%
Operating Margin				10.0	%					11.8	%			13.1	%					14.3	%
Interest Expense				(4,220	)		-			(4,220	)			(4,062	)		-			(4,062	)			4	%		4	%
Foreign Exchange Gain				(916	)		-			(916	)			(1,086	)		-			(1,086	)
Interest Income and Other				820			-			820				839			-			839				-2	%		-2	%
Income Before Taxes				39,004			7,779			46,783				53,754			4,925			58,679				-27	%		-21	%
Provision for Income Taxes (A-B)				4,797			3,010			7,807				6,857			3,945			10,802				-30	%		-26	%
Net Income			$	34,207			4,769			38,976				46,897			980			47,877				-27	%		-20	%
Earnings Per Share- Diluted (A-B)			$	0.59			0.08			0.67				0.79			0.02			0.81				-25	%		-19	%
Average Shares - Diluted				58,089			58,089			58,089				59,368			59,368			59,368
				TWELVE MONTHS ENDED APRIL 30,
				2016										2015										% Change
				US GAAP			Adjustments (A-B)			Adjusted				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjusted excl. FX
Revenue			$	1,727,037			-			1,727,037				1,822,440			-			1,822,440				-5	%		-2	%
Costs and Expenses
Cost of Sales				465,917			-			465,917				499,683			-			499,683				-7	%		-4	%
Operating and Administrative				994,632			-			994,632				1,005,000			-			1,005,000				-1	%		2	%
Restructuring Charges (Credits) (A)				28,611			(28,611	)		-				28,804			(28,804	)		-
Amortization of Intangibles				49,764			-			49,764				51,214			-			51,214				-3	%		0	%
Total Costs and Expenses				1,538,924			(28,611	)		1,510,313				1,584,701			(28,804	)		1,555,897				-3	%		0	%
Operating Income				188,113			28,611			216,724				237,739			28,804			266,543				-21	%		-15	%
Operating Margin				10.9	%					12.5	%			13.0	%					14.6	%
Interest Expense				(16,707	)		-			(16,707	)			(17,077	)		-			(17,077	)			-2	%		-2	%
Foreign Exchange (Loss) Gain				473			-			473				1,742			-			1,742
Interest Income and Other				2,914			-			2,914				3,057			-			3,057				-5	%		-5	%
Income Before Taxes				174,793			28,611			203,404				225,461			28,804			254,265				-22	%		-16	%
Provision for Income Taxes (A-B)				29,011			15,777			44,788				48,593			11,599			60,192				-40	%		-21	%
Net Income			$	145,782			12,834			158,616				176,868			17,205			194,073				-18	%		-14	%
Earnings Per Share- Diluted (A-B)			$	2.48			0.22			2.70				2.97			0.29			3.26				-16	%		-13	%
Average Shares - Diluted				58,734			58,734			58,734				59,594			59,594			59,594

				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, 2016 AND 2015
RECONCILIATION OF US GAAP TO ADJUSTED EPS - DILUTED (UNAUDITED)
			Fourth Quarter Ended April 30,									Twelve Months Ended April 30,
			2016				2015					2016				2015
US GAAP Earnings Per Share - Diluted			$	0.59			$	0.79				$	2.48			$	2.97
Adjusted to exclude the following:
Restructuring Charges (A)				(0.08	)			(0.07	)				(0.32	)			(0.34	)
Deferred Income Tax Benefit on UK Rate Change (B)				-				-					0.10				-
Non-recurring Tax Benefit (C)				-				0.05					-				0.05
Adjusted Earnings Per Share - Diluted			$	0.67			$	0.81				$	2.70			$	3.26

NOTES TO UNAUDITED FINANCIAL STATEMENTS
Adjustments:
a		Restructuring Charges: The adjusted results for the three and twelve months ended April 30, 2016 exclude restructuring charges related to the Company's Restructuring and Reinvestment Program of $7.8 million or $0.08 per share, and $28.6 million or $0.32 per share, respectively. The adjusted results for the three and twelve months ended April 30, 2015 exclude a restructuring charge of $4.9 million or $0.07 per share, and $28.8 million or $0.34 per share, respectively.
b		Deferred Income Tax Benefit on UK Rate Change: The adjusted results for the twelve months ended April 30, 2016 exclude deferred tax benefits of $5.9 million, or $0.10 per share, associated with tax legislation enacted in fiscal year 2016 in the United Kingdom that reduced the U.K. corporate income tax rates by 2%. The benefits reflect the remeasurement of the Company's deferred tax balances to the new income tax rates of 19% effective April 1, 2017 and 18% effective April 1, 2020 and had no current cash tax impact.
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.
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, 2016 AND 2015 (in thousands)
				FOURTH QUARTER ENDED APRIL 30,
				2016										2015										% Change
				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjusted excl. FX
Revenue
Research			$	264,757			-			264,757				274,646			-			274,646				-4	%		-3	%
Professional Development				103,051			-			103,051				100,442			-			100,442				3	%		3	%
Education				66,493			-			66,493				66,558			-			66,558				0	%		1	%
Total			$	434,301			-			434,301				441,646			-			441,646				-2	%		-1	%
Direct Contribution to Profit
Research			$	129,877			(279	)		129,598				140,354			233			140,587				-7	%		-7	%
Professional Development				43,798			690			44,488				36,950			552			37,502				19	%		19	%
Education				14,841			(8	)		14,833				11,625			487			12,112				28	%		25	%
Total			$	188,516			403			188,919				188,929			1,272			190,201				0	%		0	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research			$	87,427			(279	)		87,148				97,868			233			98,101				-11	%		-11	%
Professional Development				19,768			690			20,458				11,508			552			12,060				72	%		71	%
Education				(7,479	)		(8	)		(7,487	)			(8,439	)		487			(7,952	)			-11	%		-6	%
Total			$	99,716			403			100,119				100,937			1,272			102,209				-1	%		-2	%
Unallocated Shared Services and Admin. Costs				(56,396	)		7,376			(49,020	)			(42,874	)		3,653			(39,221	)			32	%		27	%
Operating Income			$	43,320			7,779			51,099				58,063			4,925			62,988				-25	%		-20	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services			$	(26,673	)		5,817			(20,856	)			(21,249	)		131			(21,118	)			26	%		1	%
Technology and Content Management				(67,971	)		94			(67,877	)			(63,294	)		1,337			(61,957	)			7	%		11	%
Finance				(13,857	)		1,159			(12,698	)			(13,571	)		74			(13,497	)			2	%		-5	%
Other Administration				(36,695	)		306			(36,389	)			(32,752	)		2,111			(30,641	)			12	%		20	%
Total			$	(145,196	)		7,376			(137,820	)			(130,866	)		3,653			(127,213	)			11	%		10	%
				TWELVE MONTHS ENDED APRIL 30,
				2016										2015										% Change
				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjustments (A)			Adjusted				US GAAP			Adjusted excl. FX
Revenue
Research			$	965,254			-			965,254				1,040,795			-			1,040,795				-7	%		-3	%
Professional Development				404,281			-			404,281				407,023			-			407,023				-1	%		2	%
Education				357,502			-			357,502				374,622			-			374,622				-5	%		-2	%
Total			$	1,727,037			-			1,727,037				1,822,440			-			1,822,440				-5	%		-2	%
Direct Contribution to Profit
Research			$	440,301			5,048			445,349				487,285			4,555			491,840				-10	%		-6	%
Professional Development				167,023			2,277			169,300				143,157			4,385			147,542				17	%		17	%
Education				118,375			1,206			119,581				127,729			1,571			129,300				-7	%		-4	%
Total			$	725,699			8,531			734,230				758,171			10,511			768,682				-4	%		-1	%
Contribution to Profit (After Allocated Shared Services
and Admin. Costs)
Research			$	272,995			5,048			278,043				315,774			4,555			320,329				-14	%		-10	%
Professional Development				74,548			2,277			76,825				38,137			4,385			42,522				95	%		84	%
Education				35,868			1,206			37,074				46,644			1,571			48,215				-23	%		-17	%
Total			$	383,411			8,531			391,942				400,555			10,511			411,066				-4	%		-1	%
Unallocated Shared Services and Admin. Costs				(195,298	)		20,080			(175,218	)			(162,816	)		18,293			(144,523	)			20	%		25	%
Operating Income			$	188,113			28,611			216,724				237,739			28,804			266,543				-21	%		-15	%
Total Shared Services and Admin. Costs by Function
Distribution and Operation Services			$	(93,246	)		10,137			(83,109	)			(93,591	)		4,567			(89,024	)			0	%		-3	%
Technology and Content Management				(261,359	)		3,537			(257,822	)			(247,472	)		2,622			(244,850	)			6	%		8	%
Finance				(53,272	)		3,474			(49,798	)			(52,941	)		145			(52,796	)			1	%		-2	%
Other Administration				(129,709	)		2,932			(126,777	)			(126,428	)		10,959			(115,469	)			3	%		13	%
Total			$	(537,586	)		20,080			(517,506	)			(520,432	)		18,293			(502,139	)			3	%		6	%

(A) See the accompanying Notes to Unaudited Financial Statements for a description of the Adjustment.
Note: As part of Wiley’s Restructuring and Reinvestment Program, the Company consolidated its Marketing Services functions into a single global shared service function. This newly centralized service group enables significant cost reduction opportunities, including efficiencies gained from standardized technology and centralized management. The cost of these functions were previously reported as direct operating expenses in each business segment but are now reported within Shared Services and Administrative Costs and then allocated to each business segment above. Prior year amounts have been restated to reflect the same reporting methodology.

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED APRIL 30, 2016 AND 2015 (in thousands)
			Fourth Quarter Ended April 30,													Twelve Months Ended April 30,
			2016			2015			% Change			% Change excl. FX				2016			2015			% Change			% Change excl. FX
Research:
Direct Contribution to Profit			129,877			140,354			-7	%		-7	%			440,301			487,285			-10	%		-6	%
Restructuring Charges (Credits) (A)			(279	)		233										5,048			4,555
Adjusted Direct Contribution to Profit			129,598			140,587			-8	%		-7	%			445,349			491,840			-9	%		-6	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services			(9,573	)		(10,479	)		-9	%		-7	%			(39,348	)		(44,620	)		-12	%		-7	%
Technology and Content Management			(25,272	)		(23,456	)		8	%		9	%			(98,442	)		(96,486	)		2	%		5	%
Occupancy and Other			(7,605	)		(8,551	)		-11	%		-10	%			(29,516	)		(30,405	)		-3	%		2	%
Adjusted Contribution to Profit (after allocated			87,148			98,101			-11	%		-11	%			278,043			320,329			-13	%		-10	%
Shared Services and Admin. Costs)
Professional Development:
Direct Contribution to Profit			43,798			36,950			19	%		19	%			167,023			143,157			17	%		19	%
Restructuring Charges (A)			690			552										2,277			4,385
Adjusted Direct Contribution to Profit			44,488			37,502			19	%		19	%			169,300			147,542			15	%		17	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services			(7,544	)		(7,167	)		5	%		7	%			(28,364	)		(30,838	)		-8	%		-5	%
Technology and Content Management			(10,548	)		(12,334	)		-14	%		-14	%			(40,951	)		(48,002	)		-15	%		-13	%
Occupancy and Other			(5,938	)		(5,941	)		0	%		0	%			(23,160	)		(26,180	)		-12	%		-8	%
Adjusted Contribution to Profit (after allocated			20,458			12,060			70	%		71	%			76,825			42,522			81	%		84	%
Shared Services and Admin. Costs)
Education:
Direct Contribution to Profit			14,841			11,625			28	%		30	%			118,375			127,729			-7	%		-3	%
Restructuring Charges (A)			(8	)		487										1,206			1,571
Adjusted Direct Contribution to Profit			14,833			12,112			22	%		25	%			119,581			129,300			-8	%		-4	%
Allocated Shared Services and Admin. Costs:
Distribution and Operation Services			(3,931	)		(2,977	)		32	%		35	%			(15,207	)		(12,863	)		18	%		24	%
Technology and Content Management			(14,375	)		(13,625	)		6	%		7	%			(51,612	)		(54,272	)		-5	%		-3	%
Occupancy and Other			(4,014	)		(3,462	)		16	%		16	%			(15,688	)		(13,950	)		12	%		15	%
Adjusted Contribution to Profit (after allocated			(7,487	)		(7,952	)		6	%		6	%			37,074			48,215			-23	%		-17	%
Shared Services and Admin. Costs)
Total Adjusted Contribution to Profit (after			100,119			102,209			-2	%		-2	%			391,942			411,066			-5	%		-1	%
allocated Shared Services and Admin. Costs)
Unallocated Shared Services and Admin. Costs:
Unallocated Shared Services and Admin. Costs			(56,396	)		(42,874	)		32	%		33	%			(195,298	)		(162,816	)		20	%		24	%
Restructuring Charges (Credits) (A)			7,376			3,653										20,080			18,293
Adjusted Unallocated Shared Services and Admin. Costs			(49,020	)		(39,221	)		25	%		27	%			(175,218	)		(144,523	)		21	%		25	%
Adjusted Operating Income			51,099			62,988			-19	%		-20	%			216,724			266,543			-19	%		-15	%

(A) See the accompanying Notes to Unaudited Financial Statements for a description of the Adjustment.

Note: As part of Wiley’s Restructuring and Reinvestment Program, the Company consolidated its Marketing Services functions into a single global shared service function. This newly centralized service group enables significant cost reduction opportunities, including efficiencies gained from standardized technology and centralized management. The cost of these functions were previously reported as direct operating expenses in each business segment but are now reported within Shared Services and Administrative Costs and then allocated to each business segment above. Prior year amounts have been restated to reflect the same reporting methodology.

JOHN WILEY & SONS, INC. SEGMENT REVENUE by PRODUCT/SERVICE FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED APRIL 30, 2016 AND 2015 (in thousands)
					Fourth Quarter Ended April 30,												Twelve Months Ended April 30,
									% of Revenue			% Change excl. FX									% of Revenue			% Change excl. FX
					2016		2015										2016		2015
RESEARCH
Journal Revenue
Journal Subscriptions				$	168,458		175,568		64	%		-3	%			$	611,403		672,218		63	%		-6	%
Author-Funded Access					7,370		5,828		3	%		30	%				25,669		22,388		3	%		21	%
Licensing, Reprints, Backfiles, and Other					51,435		51,709		19	%		1	%				178,542		188,326		18	%		0	%
Total Journal Revenue					227,263		233,105		86	%		-2	%				815,614		882,932		84	%		-4	%
Books and References:
Print Books					19,185		21,190		7	%		-8	%				90,586		99,746		9	%		-6	%
Digital Books					12,111		14,715		5	%		-14	%				44,788		42,512		5	%		9	%
Licensing and Other					6,198		5,636		2	%		6	%				14,266		15,605		1	%		0	%
Total Books and References Revenue					37,494		41,541		14	%		-8	%				149,640		157,863		16	%		-1	%
Total Revenue				$	264,757		274,646		100	%		-3	%			$	965,254		1,040,795		100	%		-3	%
PROFESSIONAL DEVELOPMENT
Knowledge Services:
Print Books				$	41,917		44,082		41	%		-4	%			$	192,149		206,086		48	%		-4	%
Digital Books					14,171		13,505		14	%		6	%				47,089		49,672		12	%		-3	%
Online Test Preparation and Certification					7,186		6,889		7	%		4	%				28,169		22,119		7	%		27	%
Other Knowledge Service Revenue					10,059		9,616		10	%		5	%				28,813		30,094		7	%		-2	%
					73,333		74,092		71	%		0	%				296,220		307,971		73	%		-2	%
Talent Solutions:
Assessment					15,224		15,835		15	%		-4	%				57,369		57,035		14	%		1	%
Corporate Learning					14,494		10,515		14	%		35	%				50,692		42,017		13	%		31	%
					29,718		26,350		29	%		12	%				108,061		99,052		27	%		14	%
Total Revenue				$	103,051		100,442		100	%		3	%			$	404,281		407,023		100	%		2	%
EDUCATION
Books:
Print Textbooks				$	10,933		17,792		16	%		-34	%			$	107,636		144,500		30	%		-20	%
Digital Books					8,818		8,840		13	%		0	%				34,462		34,086		9	%		5	%
					19,751		26,632		30	%		-23	%				142,098		178,586		40	%		-15	%
Custom Material					509		1,062		1	%		-52	%				51,842		50,659		15	%		2	%
Course Workflow (WileyPLUS)					17,185		13,645		26	%		26	%				58,551		54,200		16	%		10	%
Online Program Management (Deltak)					26,716		22,612		40	%		18	%				96,469		81,593		27	%		18	%
Other Education Revenue					2,332		2,607		4	%		-11	%				8,542		9,584		2	%		-11	%
Total Revenue				$	66,493		66,558		100	%		1	%			$	357,502		374,622		100	%		-2	%
Note: Segment Revenue Categorization

JOHN WILEY & SONS, INC. UNAUDITED STATEMENTS OF FINANCIAL POSITION (in thousands)
				April 30,
				2016				2015
Current Assets
Cash & cash equivalents			$	363,806				457,441
Accounts receivable				167,638				147,183
Inventories				57,779				63,779
Prepaid and other				81,456				72,516
Total Current Assets				670,679				740,919
Product Development Assets				72,126				69,589
Technology, Property and Equipment				214,770				193,010
Intangible Assets				877,007				917,621
Goodwill				951,663				962,367
Income Tax Deposits				62,912				57,098
Other Assets				71,939				63,639
Total Assets				2,921,096				3,004,243
Current Liabilities
Short-term debt				-				100,000
Accounts and royalties payable				166,222				161,465
Deferred revenue				426,489				372,051
Accrued employment costs				97,902				93,922
Accrued income taxes				9,450				9,484
Accrued pension liability				5,492				4,594
Other accrued liabilities				76,252				62,167
Total Current Liabilities				781,807				803,683
Long-Term Debt				605,007				650,090
Accrued Pension Liability				224,170				209,727
Deferred Income Tax Liabilities				189,868				198,947
Other Long-Term Liabilities				83,138				86,756
Shareholders' Equity				1,037,106				1,055,040
Total Liabilities & Shareholders' Equity			$	2,921,096				3,004,243

JOHN WILEY & SONS, INC. UNAUDITED STATEMENTS OF FREE CASH FLOW (in thousands)
				Twelve Months Ended April 30,
				2016				2015
Operating Activities:
Net income			$	145,782				176,868
Amortization of intangibles				49,764				51,214
Amortization of composition costs				39,658				40,639
Depreciation of technology, property and equipment				66,427				62,072
Restructuring charges (credits)				28,611				28,804
Restructuring payments				(29,864	)			(32,341	)
Deferred income tax benefit on UK rate change				(5,859	)			-
Share-based compensation expense				16,105				13,617
Excess tax benefits from share-based compensation				(1,027	)			(3,191	)
Royalty advances				(110,135	)			(104,876	)
Earned royalty advances				109,102				110,054
Other non-cash charges and credits				15,786				14,553
Change in deferred revenue				66,983				3,913
Net change in operating assets and liabilities				(41,376	)			(6,204	)
Cash Provided by Operating Activities				349,957				355,122
Investments in organic growth:
Composition spending				(37,272	)			(39,421	)
Additions to technology, property and equipment				(93,705	)			(69,121	)
Free Cash Flow				218,980				246,580
Other Investing and Financing Activities:
Acquisitions, net of cash				(20,418	)			(172,229	)
Escrowed proceeds from sale of consumer publishing programs				-				1,100
Repayment of long-term debt				(460,085	)			(711,654	)
Repayment of short-term debt				(150,000	)			-
Borrowings of long-term debt				415,000				659,369
Borrowings of short-term Debt				50,000				100,000
Change in book overdrafts				1,725				(6,711	)
Cash dividends				(69,896	)			(68,498	)
Purchase of treasury shares				(69,977	)			(61,981	)
Debt Issuance Costs				(3,362	)			-
Proceeds from exercise of stock options and other				(95	)			25,326
Excess tax benefits from share-based compensation				1,027				3,191
Cash Used for Investing and Financing Activities				(306,081	)			(232,087	)
Effects of Exchange Rate Changes on Cash				(6,534	)			(43,429	)
Decrease in Cash and Cash Equivalents for Period			$	(93,635	)			(28,936	)
RECONCILIATION TO GAAP PRESENTATION
Investing Activities:
Composition spending			$	(37,272	)			(39,421	)
Additions to technology, property and equipment				(93,705	)			(69,121	)
Acquisitions, net of cash				(20,418	)			(172,229	)
Escrowed proceeds from sale of consumer publishing programs				-				1,100
Cash Used for Investing Activities			$	(151,395	)			(279,671	)
Financing Activities:
Cash Used for Investing and Financing Activities			$	(306,081	)			(232,087	)
Excluding:
Acquisitions, net of cash				(20,418	)			(172,229	)
Escrowed proceeds from sale of consumer publishing programs				-				1,100
Cash Used for Financing Activities			$	(285,663	)			(60,958	)

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.

Investors:
John Wiley & Sons, Inc.
Brian Campbell, 201-748-6874
Investor Relations
brian.campbell@wiley.com