2 Points of Review Revenue Key Indicator Update Financials Expense Key Indicator Update Direct and Indirect Expenses Net Margin Looking Forward
3 Key Indicators: Institutional Subscribers Overall, Institutional subscribers experienced a 2% increase in FY08 over prior years. Out of the 65 additional subscribers, 40 can be attributed to JACIC. * Data based on September results.
4 Subscription Rates: Institutions All subscription rates increased 8% in FY06, and 6% in FY07, FY08, and FY09. FY09 Rates: AIAAJ: $1,560JA: $855JGCD: $870JPP: $945 JSR: $810JTHT: $685JACIC: $380
5 Institution Product Format Breakdown The trend continues away from Print Only subscriptions.
6 Key Indicators: Member Subscriptions After holding steady in FY06, the number of member subscriptions declined 10% in FY07 and another 10% in FY08.
7 Subscription Rates: Members Subscription rates for members were not increased in FY08 and FY09. Even with no increase, the number of member subscribers declined in FY08.
8 Key Indicators: Geographic Breakdown On average, Domestic subscribers have accounted for 68% of the subscriptions over the past four years. In FY08, the number of Domestic subscribers declined 9% while Non U.S. subscribers declined 1%, changing the mix to 66% Domestic subscribers. * Data includes Member and Institutional Subscribers
9 Revenue Trends Journals revenue has grown 14% since FY05 and experienced a 9% increase in FY08, with growth experienced by all products.
10 Key Indicators: Manuscripts Accepted The overall number of manuscripts accepted has increased 5% since FY05. After experiencing a 10% increase in FY07, manuscripts experienced a slight decline of 1% in FY08. Non U.S. manuscripts have increased 21% since FY05, while Domestic manuscripts have decreased 7% during the same time period.
11 Key Indicators: Pages Published Since FY05, the total pages published for Journals increased 19%, and has been stable for the past three years.
12 Direct Expenses Direct expenses include costs for paper, printing, outside production, postage, honoraria, and color printing offset. Expenses have decreased significantly over the past two years due to lower costs for Outside Production in FY07 that carried through to FY08 and higher collections for color printing in FY08. In addition, paper costs decreased due to better market rates during FY08.
13 Indirect Expenses Breakdown Indirect expenses include salaries, benefits, and allocation for general and administrative costs. While salaries have held steady for the last three years, allocations have increased due to higher pension and medical costs.
14 Put It All Together…Net Margin Journals net margin grew 18% in FY08, and has grown 34% since FY05 to $2.68M.
15 JACIC Revenue doubled from FY05 to FY08. Expense decrease is due to less spending on Promotion, from $172K in FY05 to $2K in FY08. Salaries, Benefits, and G&A decreased 75%. Net Margin became positive in FY08 with $3.5K realized in margin. FY07FY08FY06FY05
16 Looking Forward Continue incentive based program to encourage Institutional subscription sales Monitor PSJ sales impact Continue to monitor Print subscription levels