John Wiley & Sons, Inc. (JWA) swung to a net loss for the quarter ended Oct. 31, 2016. The company has made a net loss of $11.45 million, or $ 0.20 a share in the quarter, against a net profit of $43.60 million, or $0.74 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $43.58 million, or $0.76 a share compared with $45.95 million or $0.78 a share, a year ago.
Revenue during the quarter went down marginally by 1.79 percent to $425.59 million from $433.36 million in the previous year period. Gross margin for the quarter expanded 69 basis points over the previous year period to 73.78 percent. Total expenses were 88.81 percent of quarterly revenues, up from 86.09 percent for the same period last year. That has resulted in a contraction of 271 basis points in operating margin to 11.19 percent.
Operating income for the quarter was $47.64 million, compared with $60.26 million in the previous year period.
However, the adjusted operating income for the quarter stood at $63.33 million compared to $63.96 million in the prior year period. At the same time, adjusted operating margin improved 12 basis points in the quarter to 14.88 percent from 14.76 percent in the last year period.
"We made solid progress in the quarter," said Mark Allin, Wiley’s President and CEO. "Research continued to deliver good performance through the quarter and the first half of the year, with steady growth from journal subscriptions and strong double-digit growth from author-funded access. Our Atypon acquisition, which closed in the last month of the quarter, will further enhance our Research capabilities with an industry-leading online library platform and expanded Research service offerings. In our other two segments, Solutions posted double-digit revenue growth through the first six months, while Publishing revenue continued to decline due to market weakness in print book publishing."
Operating cash flow remains negative
John Wiley & Sons, Inc. has spent $86.09 million cash to meet operating activities during the first half as against cash outgo of $126.52 million in the last year period.
The company has spent $205.08 million cash to meet investing activities during the first six months as against cash outgo of $82.89 million in the last year period.
Cash flow from financing activities was $231.84 million for the first six months, up 284.05 percent or $171.48 million, when compared with the last year period.
Cash and cash equivalents stood at $267.41 million as on Oct. 31, 2016, down 13.24 percent or $40.82 million from $308.24 million on Oct. 31, 2015.
Debt remains almost stable
John Wiley & Sons, Inc. has recorded a decline in total debt over the last one year. It stood at $883.99 million as on Oct. 31, 2016, down 0.57 percent or $5.06 million from $889.05 million on Oct. 31, 2015. Interest coverage ratio deteriorated to 10.93 for the quarter from 13.94 for the same period last year.
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