AAUP 2010 Annual Meeting Salt Lake City, Utah

Prepared by Kimberly Schmelzinger

Introduction

Data Methodology

Highlights: 2009 Survey

State of the Industry

The Future: Questions and Issues

Q & A

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AAUP Annual Statistics have been collected for over 30 years.

Captures valuable information on the scholarly publishing industry.

This is a benchmarking report: collected statistics that enables the comparison of performance across institutions in the industry.

Data should be used as a means of evaluating own practices, not as formal comparative measurements.

The statistics are a valuable tool for understanding the university press community, but they should not be applied rigorously as standards or targets.

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60 presses participated in this year’s survey, decrease of 6 presses from last year’s 66.

Data is collected from participating presses, consolidated

across groups, across fulfillment types, and across all presses; all data results are expressed as percentages of net sales to preserve confidentiality and to facilitate comparisons.

Some measures are expressed as averages, e.g., average employees and average titles per employee.

Sales Groups are as follows:

Group 1: Up to $1.5 million Group 3: $3 million to $6 million Group 2: $1.5 million to $3 million Group 4: Over $6 million

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ASSOCIATION OF AMERICAN UNIVERSITY PRESSES

ANNUAL STATISTICS 2006 THROUGH 2009

Participating Presses

The University of Alabama Press (1) The University of Arizona Press (2) The University of Arkansas Press (1) University of British Columbia Press (2) University of California Press (4) The Catholic University of America (1) The University of Chicago Press (4) University Press of Colorado (1) Columbia University Press (4) Cornell University Press (3) Duke University Press (3) Gallaudet University Press (1) Georgetown University Press (3) University of Georgia Press (2) Harvard University Press (4) University of Hawai'i Press (3) University of Illinois Press (3) Indiana University Press (3) The Johns Hopkins University Press (4) University Press of Kansas (2) The Kent State University Press (1) The University Press of Kentucky (2) Louisiana State University Press (2) The University of Massachusetts Press (1) The MIT Press (4) The University of Michigan Press (3) University of Minnesota Press (3) University Press of Mississippi (2) University of Missouri Press (1) Naval Institute Press (3)

University of Nebraska Press (3) University Press of New England (2) University of New Mexico Press (2) New York University Press (3) The University of North Carolina Press (3) Northern Illinois University Press (1) Northwestern University Press (1) University of Oklahoma Press (3) University of Pennsylvania Press (3) The Pennsylvania State University Press (2) University of Pittsburgh Press (1) Princeton University Press (4) Purdue University Press (1) Rutgers University Press (2) University of South Carolina Press (1) Southern Illinois University Press (1) Stanford University Press (3) Syracuse University Press (1) Teachers College Press (3) Temple University Press (2) University of Texas Press (3) Texas A&M University Press (2) University of Utah Press (1) Utah State University Press (1) Vanderbilt University Press (1) The University of Virginia Press (2) University of Washington Press (2) Wesleyan University Press (1) University of Wisconsin Press (2) Yale University Press (4)

Net sales for 2009 across all 60 reporting presses were $255.8 million, a decrease of 10.5% (2008 = $285 million).

Sales declined for the period 2006-2009 by 4.1%, compared to last year’s compound growth rate of 10.1%.

Returns were 21.5% of shipments, an

increase from 2008’s rate of 20.5%.

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2009 2008 2007 2006

Group 1: Up to $1,500,000 19 18 17 17

Group 2: $1,500,000 to $3,000,000 16 16 16 15

Group 3: $3,000,000 to $6,000,000 17 17 16 16

Group 4: Over $6,000,000 8 8 8 8

All Presses 60 59 57 56

Based on respondents to the 2009 survey

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# of

Presses

Total Net Sales

Average Net

Sales

Returns

Total

Expenses

Net

Operating

Income/

(Expense)

Average

Titles

Published

Average

Full Time

Equivalent

Staff

Cumulative

Sales

Increase

2006-09

Group 1 19 $14,900,000 $780,000 21.3% 123.0% (65.8%) 40 11.7 (9.0%)

Group 2 16 $31,000,000 $1,900,000 22.8% 108.1% (48.2%) 72 21.5 (15.1%)

Group 3 17 $69,700,000 $4,100,000 21.2% 84.6% (21.2%) 118 35.5 (7.0%)

Group 4 8 $140,200,000 $17,500,000 21.4% 76.9% (17.2%) 241 86.4 (0.4%)

All 60 $255,800,000 $4,300,000 21.5% 85.4% (24.9%) 118 38.8 (4.1%)

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Total operating expenses reported in 2009 were $219 million, or 85.4% of sales.

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Year

Total Operating Expenses

Total Net Sales

Expenses as Percent of Sales

2009 $218,591,000 $255,827,000 85.4%

2008 $224,244,000 $284,989,000 78.7%

2007 $209,129,000 $271,924,000 76 .9%

2006 $196,675,000 $259,783,000 75.7%

Net operating expense, before parent institution support and other subsidies, was 24.9% of net sales, increased from 17.2% in 2008.

For all university presses, net expense was 1.7% of sales in 2009, a decrease from 2008’s 2.9% and the 5.0% reported for 2007.

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46 presses reported support of $22,200,000 for 2009.

Parent institution support in 2009 stood at 8.7% of net sales. For previous years, the percentages were:

2008 7.8% 2007 7.6% 2006 7.7% Of the 46 presses reporting subsidies in 2009: 22

received increased support, 19 received decreases, and 5 saw no change.

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58 presses published 5,930 titles in 2009, an increase of 4.8% over 2008.

Compare this to the sales decrease of (10.5%) for 2009.

Straight reprints: just over 5,200. Unit sales of clothbound books were 41.6% of total unit

sales in 2009, compared to 43.3% in 2008 and 37.2% in 2007.

In contrast, dollar sales of cloth were 53.9% of total dollars, the first decline since 2005.

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External Fulfillment Internal Fulfillment All

Group1 $89,000 $62,000 $78,000

Group 2 $103,000 $79,000 $90,000

Group 3 $170,000 $90,000 $131,000

Group 4 $200,000 n/a $192,000

All Presses $170,000 $88,000 $143,000

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Total inventory levels for all reporting presses were $89,475,000 for 2009, an increase of less than 1.0% over the 2008 level of $88,888,000.

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Accounts receivable for 2009 was $48,610,000, a decrease of 15% from 2008’s reported level.

The ratio Days of Sales Outstanding decreased for the 4th time in 4 years, ending at 70 days in 2009.

2008: 73

2007: 74

2006: 76

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Number of Presses

Reporting

Fulfillment Expense as

% of Net Sales

Group 1 External 14 17.0%

Group 1 Internal 5 17.2%

Group 2 External 8 14.8%

Group 2 Internal 8 15.2%

Group 3 External 10 11.0%

Group 3 Internal 6 13.2%

Group 4 External 7 13.6%

Group 4 Internal 1 n/a

All External 39 13.3%

All Internal 20 14.1%

All Presses 59 13.4%

Group 1 Total 19 17.1%

Group 2 Total 16 15.0%

Group 3 Total 16 11.7%

Group 4 Total 8 13.6%

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2008 2009 % change 2008 2009

Chains 24,513,310$ 19,211,723$ -27.6% 10.5% 9.5%

General Bookstores 30,186,957$ 23,506,071$ -28.4% 12.9% 11.6%

College Bookstores 28,905,894$ 26,806,134$ -7.8% 12.3% 13.3%

Online Retailers 39,703,412$ 43,502,153$ 8.7% 17.0% 21.5%

Wholesalers and Jobbers 80,631,968$ 66,584,092$ -21.1% 34.4% 32.9%

Libraries 2,589,451$ 2,135,053$ -21.3% 1.1% 1.1%

Other Institutions 10,474,001$ 5,455,214$ -92.0% 4.5% 2.7%

Direct to Consumer 12,341,427$ 10,987,810$ -12.3% 5.3% 5.4%

Special Sales 1,600,087$ 1,184,560$ -35.1% 0.7% 0.6%

Remainders 1,707,609$ 1,295,168$ -31.8% 0.7% 0.6%

Other 1,526,492$ 1,598,526$ 4.5% 0.7% 0.6%

Total Domestic Sales 234,180,608$ 202,266,506$ -13.6%

Domestic Sales 234,180,608$ 202,266,506$ -13.6% 87.5% 87.9%

Export Sales 33,416,003$ 27,852,535$ -16.6% 12.5% 12.1%

Total Press Sales 267,596,610$ 230,119,041$ -14.0%

As % of Net Sales

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Cloth Units Paper Units Cloth Dollars Paper Dollars

Group 1 36.3% 63.7% 49.0% 51.0%

Group 2 35.2% 64.8% 46.7% 53.3%

Group 3 27.9% 72.1% 41.9% 58.1%

Group 4 48.8% 51.2% 59.9% 40.1%

All Presses 41.6% 58.4% 53.9% 46.1%

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Grp #

Net $ Sales

1 Jul 2009 to

31 Mar 2010

Net $ Sales

1 Jul 2008 to

31 Mar 2009 % change

Returns

1 Jul 2009 to

31 Mar 2010

Returns

1 Jul 2008 to

31 Mar 2009 % change

Returns as

% of sales,

Third Qtr

2009-10

Returns as

% of sales,

Third Qtr

2008-09

1 24 $13,262,498 $13,051,313 1.6% $2,557,349 $3,309,079 -22.7% 16.2% 20.2%

2 18 $28,432,878 $29,546,813 -3.8% $6,113,170 $7,189,251 -15.0% 17.7% 19.6%

3 18 $62,455,493 $59,508,950 5.0% $11,376,514 $12,644,259 -10.0% 15.4% 17.5%

4 6 $81,004,225 $77,597,720 4.4% $17,046,469 $17,749,075 -4.0% 17.4% 18.6%

All 66 $185,155,094 $179,704,796 3.0% $37,093,502 $40,891,664 -9.3% 16.7% 18.5%

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Group*

number

of

responses

Net $ Sales

1 Jul 2009 to

31 Mar 2010

Budgeted Sales

1 Jul 2009 to

31 Mar 2010 % change

1 15 $8,969,850 $9,136,761 -1.8%

2 14 $22,140,990 $23,248,508 -4.8%

3 16 $56,832,321 $54,720,266 3.9%

4 6 $81,004,225 $77,244,399 4.9%

All 51 $168,947,386 $164,349,934 2.8%

57 responding presses

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

jan feb mar apr may june july aug sept oct nov dec

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Would data on inventory units be useful? 53.7% 46.3%

Can you provide? 66.0% 34.0%

Is sales data reported on Appendix 3 by

publication yr? 50.0% 50.0%

By true publication year, or by fiscal year? 29.4% 70.6%

YES NO

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Does the inclusion of hurts/remainder

data distort Appendix 3? 64.2% 35.8%

Can you remove? 67.9% 32.1%

Should the data be removed from all

schedules (a la the change to

distributed presses reporting from 3

years ago)? 38.9% 61.1%

YES NO

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Does your parent institution allow you

to roll over Net Income (Expense) from

year to year? 77.2% 22.8%

Internal copy editing in inventory? 5.3% 94.7%

External copy editing in inventory? 15.8% 84.2%

Internal prod costs in inventory? 10.3% 89.7%

External prod costs in inventory? 41.4% 58.6%

WIP in inventory turnover? 32.8% 67.2%

YES NO

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Do you treat POD as reprint? 26.8% 73.2%

Dig print 2nd as reprint? 64.3% 35.7%

Short run 2nd as reprint? 71.4% 28.6%

YES NO

Additionally, 10 respondents stated that ebook data should be included in the annual survey; half said that the data should be incorporated into Appendix 3.

The Business Systems Committee held an electronic discussion in March about the various ways this data could be included.

Other suggestions for Appendix 4 data gathering:

▪ how ebook editions are released (e.g., simultaneous with cloth or paper or both; or, if after, how long?)

▪ What platforms are you using to archive your ebook files?

▪ Do you have access or control over these files? If not, where does access/control reside?

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