John Wiley & Sons Reports 2002 Results: EPS Increased 11%
Friday, June 21, 2002
NEW YORK--June 20, 2002--John Wiley & Sons, Inc., announced today that earnings per diluted share for the fiscal year ended April 30, 2002 advanced 11% to $1.03, excluding an unusual charge related to the relocation of the company's headquarters. Including the charge, earnings per diluted share was $0.91 in fiscal 2002, compared to $0.93 in fiscal 2001. Net income was $65.0 million excluding the charge and $57.3 million including the charge, compared to $58.9 million in fiscal 2001. Revenues for fiscal 2002 increased 20% to $734.4 million from $613.8 million in fiscal 2001. For the fourth quarter, which is seasonally the company's least significant in financial terms, earnings per diluted share was $0.10, excluding the unusual charge, compared with $0.13 in the prior year. The decrease was primarily attributable to the write-off of two small investments in an environmental remediation portal and database and an informatics company. The impact of the write-offs was $0.05 per diluted share. Fiscal 2002 fourth quarter net income was $6.2 million, excluding the unusual charge related to the relocation, and a loss of $1.5 million, including the charge. Revenues for the fourth quarter of $189.2 million increased 40% over the $135.5 million reported in the fourth quarter of last year. Excluding Hungry Minds, revenues for the company advanced 13% for the fourth quarter and 5% for the year. The company achieved strong revenue gains in the fourth quarter, as a result of the Hungry Minds acquisition and organic growth. All of the company's U.S. based businesses contributed to the results. European segment revenues increased, driven primarily by STM journals and higher education programs. Wiley Canada and Australia enjoyed gains, while the company's business in Asia continued to be adversely affected by the weak economy. "Wiley's performance was solid in fiscal 2002, continuing our record of strong earnings growth," said William J. Pesce, President and Chief Executive Officer. "In spite of the formidable challenges we encountered, particularly after September 11th, our leadership team stayed focused, executed our plans and achieved record financial results. Contributing to this performance was the acquisition of Hungry Minds, which is exceeding our expectations." He concluded, "We are well positioned for another successful year. We will continue to leverage our competitive strengths to generate organic growth in our core businesses - Professional/Trade, STM and Higher Education. In addition, our acquisition strategy is working and we will continue to pursue attractive opportunities. Our forecast for fiscal 2003, assuming no major disruption in the market place, indicates double-digit growth in revenues and earnings. Our fiscal 2003 forecast includes the non-cash benefit of lower amortization of intangibles due to the adoption of the new accounting standard SFAS No. 142, offset by higher depreciation costs due to the company's relocation. Unusual charges related to the relocation are excluded from this guidance."