Journals Performance Review

Karen RosenblumPublications Committee Meeting8 January 2009

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.

Institutional Subscribers

0

500

1000

1500

2000

2500

3000

3500

FY05 FY06 FY07 FY08

JACIC

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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Subscription Rates: Institutions

• All subscription rates increased 8% in FY06, and 6% in FY07, FY08, and FY09.

• FY09 Rates:

AIAAJ: $1,560 JA: $855 JGCD: $870 JPP: $945

JSR: $810 JTHT: $685 JACIC: $380

Institution Subscription Rates

0

200

400

600

8001000

1200

1400

1600

1800

FY05 FY06 FY07 FY08 FY09

AIAAJ

JA

JGCD

JPP

JSR

JTHT

JACIC

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Institution Product Format Breakdown

• The trend continues away from “Print Only” subscriptions.

AIAA Journals Circulation among Institutions

28752399

22161806

17371,645

1,416

93253

357

419654

7771,057

262 292 419 503 541 657 642

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fiscal Year

Perc

enta

ges

BOTH 262 292 419 503 541 657 642

ONLINE 93 253 357 419 654 777 1,057

PRINT 2875 2399 2216 1806 1737 1,645 1,416

2002 2003 2004 2005 2006 2007 2008

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Key Indicators: Member Subscriptions

• After holding steady in FY06, the number of member subscriptions declined 10% in FY07 and another 10% in FY08.

Member Subscribers

0

1000

2000

3000

4000

5000

6000

FY05 FY06 FY07 FY08

JACIC

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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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.

Member Subscription Rates

0

10

20

30

40

50

60

70

80

90

FY05 FY06 FY07 FY08 FY09

AIAAJ

JA

JGCD

JPP

JSR

JACIC

JACIC

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Key Indicators: Geographic Breakdown

Geographic Subscriber Breakdown

0%10%20%30%40%50%60%70%80%90%

100%

FY05 FY06 FY07 FY08

Non U.S.

Domestic

• 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

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Revenue Trends

• Journals revenue has grown 14% since FY05 and experienced a 9% increase in FY08, with growth experienced by all products.

Revenue Breakdown

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

FY05 FY06 FY07 FY08

Archives

JACIC

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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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.

Manuscripts Accepted

630 554 604 584

475 511570 573

0

200

400

600

800

1000

1200

1400

FY05 FY06 FY07 FY08

Non U.S.

Domestic

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Key Indicators: Pages Published

• Since FY05, the total pages published for Journals increased 19%, and has been stable for the past three years.

Pages Published by Journal

0

2000

4000

6000

8000

10000

12000

FY05 FY06 FY07 FY08

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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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.

Direct Expense Breakdown

0

200000

400000

600000

800000

1000000

1200000

FY05 FY06 FY07 FY08

Archives

JACIC

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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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.

Indirect Expense Breakdown

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

FY05 FY06 FY07 FY08

G&A

P/R Taxes & Benefits

Salaries

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Put It All Together…Net Margin

• Journals net margin grew 18% in FY08, and has grown 34% since FY05 to $2.68M.

Net Margin Breakdown

-500000

0

500000

1000000

1500000

2000000

2500000

3000000

FY05 FY06 FY07 FY08

Archives

JACIC

JTHT

JSR

JPP

JGCD

JA

AIAAJ

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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.

JACIC

(300,000)

(250,000)

(200,000)

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000$

Revenue

Direct Expenses

Salaries/Ben/G&A

Net Margin

FY07 FY08FY06FY05

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Looking Forward

• Continue incentive based program to encourage Institutional subscription sales

• Monitor PSJ sales impact• Continue to monitor Print subscription levels

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