Books Industry News SampleJul 18, 2005 02:59:32
LIQUIDITY ALERT: John Wiley's Deficit Exceeds $2 MillionUNITED STATES (SunStream News) -- John Wiley & Sons, Inc. filed Form 10-K as of July 11, 2005 for the fiscal year ended April 30, 2005.
The company reports $338,918,000 total current assets against $341,311,000 total current liabilities or a working capital deficit of $2,393,000.
At April 30, 2005 the company had $17,641,000 positive working capital including $127,200,000 of deferred subscription revenue.
The decrease in working capital over the prior year was mainly due to the higher income taxes payable and deferred subscription revenue offset by additional cash on hand and higher accounts receivable.
The company has adequate cash and cash equivalents available, as well as short-term lines of credit to finance its short-term seasonal working capital requirements.
The company does not have any off-balance-sheet debt.
The company normally requires increased funds for working capital from May through September. Subject to variations that may be caused by fluctuations in inventory levels or in patterns of customer payments, the company's operating cash flow is not expected to vary materially in the near term.
The company's cash and cash equivalents balance was $89.4 million at the end of fiscal year 2005, compared with $82.0 million a year earlier. Cash provided by operating activities in fiscal year 2005 was $243.5 million compared with $212.2 million in the prior year.
The improvement was mainly due to improved trade receivable collections and settlements; increased accounts payable reflecting timing of payments; higher journal subscription collections; lower pension plan contributions and effective inventory management partly offset by higher author royalty payments; and increased annual performance compensation payments.
Pension contributions in fiscal year 2005 were $16.6 million, compared to $21.2 million in the prior year. The company anticipates making pension contributions in fiscal year 2006 of approximately $7 million.
The change in operating assets and liabilities also includes a higher net taxes payable this fiscal year due primarily to an increased current tax provision.
Cash used for investing activities for fiscal year 2005 was $123.8 million compared to $91.7 million in fiscal year 2004. The company invested $22.5 million in acquisitions of publishing assets and rights compared to $3.1 million in the prior year primarily to acquire certain publication rights.
The current year acquisitions included a controlled circulation journal, The Journal of Microscopy and Analysis for $5.4 million; the life science reference portfolio of the MacMillan Nature Publishing Group for $4.5 million; the $4.6 million acquisition of Whurr Publishers Limited, a London-based publisher of books and journals in health sciences and special education; and rights to publish various finance professional trade titles from Marketplace Books, Inc. for approximately $1.7 million.
About the company.
John Wiley & Sons, Inc. publishes print and electronic products.
These products include professional and consumer books, and subscription services; scientific, technical, and medical (STM) journals, encyclopedias, books, online products, and services; and educational materials for undergraduate and graduate students, teachers, and lifelong learners.
The company has an alliance with Citibank to develop personal finance books in Asia.
John Wiley & Sons primarily operates in the United States, Canada, Europe, Asia, and Australia.
The company was founded in 1807 and is headquartered in Hoboken, New Jersey.
John Wiley & Sons, Inc.
1 River Street, Hoboken, NJ
Zip Code: 07030
Phone: (201) 748-6000ss/edward
Source: Liquidity Alerts
Publication Date: 2005-07-18
COY: JW/A
IND: BKS PUB
GEO: n-us
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