John Wiley Sons, Inc. (JWA) has reported 36.45 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $46.68 million, or $0.81 a share in the quarter, compared with $34.21 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $47.34 million, or $0.82 a share compared with $38.98 million or $0.67 a share, a year ago. Revenue during the quarter grew 4.12 percent to $452.20 million from $434.30 million in the previous year period. Gross margin for the quarter contracted 110 basis points over the previous year period to 73.62 percent. Total expenses were 85.97 percent of quarterly revenues, down from 90.03 percent for the same period last year. This has led to an improvement of 405 basis points in operating margin to 14.03 percent.
Operating income for the quarter was $63.42 million, compared with $43.32 million in the previous year period.
However, the adjusted operating income for the quarter stood at $61.73 million compared to $51.10 million in the prior year period. At the same time, adjusted operating margin improved 189 basis points in the quarter to 13.65 percent from 11.77 percent in the last year period.
"We posted stronger revenue and earnings growth this quarter, largely due to growth in our Solutions business and the favorable timing of sales in Publishing," said Matthew Kissner, Wileys Interim chief executive officer and chairman. “For the year, Research revenue growth was marginally positive and in line with expectations. The Solutions business, in addition to posting double-digit revenue growth, also reported substantial profit improvement. Overall, we ended the year with favorable operating momentum, a strong balance sheet, and reliable cash flow that will enable us to continue investing for growth while returning cash to shareholders through dividends and share repurchases."
Operating cash flow declinesJohn Wiley Sons, Inc. has generated cash of $314.50 million from operating activities during the year, down 10.13 percent or $35.46 million, when compared with the last year. The company has spent $440.52 million cash to carry out financing activities during the year as against cash outgo of $306.08 million in the last year period.
Cash and cash equivalents stood at $58.52 million as on Apr. 30, 2017, down 83.92 percent or $305.29 million from $363.81 million on Apr. 30, 2016.
Debt comes down significantly
John Wiley Sons, Inc. has recorded a decline in total debt over the last one year. It stood at $365 million as on Apr. 30, 2017, down 39.67 percent or $240.01 million from $605.01 million on Apr. 30, 2016. John Wiley Sons, Inc. has recorded a decline in long-term debt over the last one year. Interest coverage ratio improved to 17.74 for the quarter from 10.27 for the same period last year.
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