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MILWAUKEE--(BUSINESS WIRE)--Feb. 13, 2008--Journal Communications
(NYSE:JRN) today announced results for its fourth quarter and full
year ended December 30, 2007.
Note that unless otherwise indicated, all comparisons are either
to the fourth quarter or the full year ended December 31, 2006. Fourth
quarter and full year 2006 contained an additional week.
For the fourth quarter, revenue from continuing operations of
$147.6 million decreased 15.7% compared to $175.2 million. Revenue in
the 2006 fourth quarter reflects an aggregate $20.4 million from the
estimated impact of the extra week ($10.4 million) as well as
political and issue advertising ($10.0 million).
Earnings from continuing operations for the 2007 fourth quarter
were $10.2 million compared to $20.0 million, a decrease of 48.8%. Net
earnings were $9.5 million compared to net earnings of $23.4 million,
a decrease of 59.5%. Basic and diluted earnings per share from
continuing operations were $0.17 and $0.16, respectively, compared to
$0.29 and $0.28, respectively. Basic and diluted net earnings per
share were $0.15 for both compared to $0.34 and $0.33, respectively.
In the fourth quarter of 2007, the Company recorded a charge for a
workforce reduction at Journal Sentinel and goodwill impairment at
PrimeNet (our direct marketing company), partially offset by favorable
litigation-related adjustments. The unfavorable aggregate after-tax
impact of these items was $1.9 million, or $0.03 per fully-diluted
share from continuing operations.
Note that in addition to the extra week in 2006, the fourth
quarter of 2006 included a gain on the sale of assets, a benefit plan
curtailment and a reduction in litigation-related charges. The
favorable aggregate after-tax impact of these items was $3.5 million,
or $0.05 per fully-diluted share.
For the full year ended December 30, 2007, revenue from continuing
operations of $582.7 million decreased 7.3% compared to $628.8
million. Revenue for the full year 2006 reflects an aggregate $30.2
million generated from political and issue advertising ($16.5
million), the estimated impact of the extra week ($10.4 million) and
the 2006 Winter Olympics ($3.3 million).
Earnings from continuing operations for the full year 2007 were
$43.0 million compared to $53.8 million, a decrease of 20.0%. The gain
from discontinued operations was $67.1 million compared to $10.6
million. Net earnings were $110.1 million compared to net earnings of
$64.4 million, an increase of 71.0%. Basic and diluted earnings per
share from continuing operations were $0.66 and $0.65, respectively,
compared to $0.77 and $0.75, respectively. Basic and diluted net
earnings per share were $1.74 and $1.65, respectively, compared to
$0.93 and $0.89, respectively.
For the full year 2007, the Company recorded the fourth quarter
2007 items noted above as well as gains on the sale of assets. The
unfavorable aggregate after-tax impact of these items was $0.7
million, or $0.01 per fully-diluted share.
For the full year 2006, in addition to the extra week, the Company
recorded a number of unusual items. The favorable aggregate after-tax
impact of these items was $1.0 million, or $0.01 per fully-diluted
share.
"We faced a number of challenges in 2007 as the adverse effects of
an off-cycle year for political and issue advertising, reduced
spending by the domestic auto industry, the impact of a broad downturn
in real estate and the shift of certain advertising to the internet
negatively affected our operating results," said Steven J. Smith,
chairman and chief executive officer of Journal Communications.
"Within this difficult environment we concentrated on expense control
and efficiency throughout our operations while pursuing digital and
new media initiatives. We also continued our strategic focus on local
markets by divesting non-core assets, including the sale of Norlight
Telecommunications and selected Journal Community Publishing clusters.
"At Journal Broadcast Group, developmental revenue continued to
grow, increasing 17% for the year. Local spot revenue in television
was up 3% excluding the 2006 extra week, political revenue and the
addition of KPSE-TV in our Palm Springs market. We are also encouraged
by the growth of our television ratings in Las Vegas, Tucson and
Omaha.
"Journal Sentinel focused on tight cost control, underscored by a
6% workforce reduction late in 2007 and a decrease in annual expenses.
Additionally, Journal Interactive revenue grew 41% during the year to
$13.4 million and commercial print revenue was up 52% to $6 million.
"Interactive revenues across our business remain strong, up 61% in
2007. Also, IPC, our printing services business, had a particularly
successful year, posting solid growth in operating earnings.
"We continue to emphasize growing advertising share in our
excellent line-up of Journal markets. Our publications and broadcast
programming remain highly relevant in each of our local markets and
are increasingly digital, interactive and mobile. We are growing our
non-traditional revenue streams in both publishing and broadcasting,
adjusting our cost platforms and looking to deepen and expand our
presence in our local markets."
Consolidated
For the fourth quarter, revenue from continuing operations of
$147.6 million decreased 15.7% compared to $175.2 million. Excluding
the 2006 extra week and political and issue advertising ($0.5 million
in 2007 and $10.0 million in 2006), revenue from continuing operations
decreased 5.0%. Operating earnings decreased 51.1% to $18.0 million.
Operating earnings margin was 12.2% compared to 21.0%. EBITDA (net
earnings excluding the gain/loss from discontinued operations, net;
total other expense, net; provision for income taxes; depreciation;
and amortization) of $25.3 million decreased 43.7% compared to $44.9
million.
For the full year, revenue from continuing operations of $582.7
million decreased 7.3% compared to $628.8 million. Excluding the 2006
extra week, political and issue advertising ($2.1 million in 2007 and
$16.5 million in 2006), the net change in litigation-related
advertising credits ($0.6 million in 2007 and $4.0 million in 2006)
and the 2006 Winter Olympics ($3.3 million), revenue from continuing
operations decreased 3.7%. Operating earnings decreased 24.7% to $78.8
million. Operating earnings margin was 13.5% compared to 16.6%. EBITDA
of $108.2 million decreased 19.1% compared to $133.7 million.
Publishing
For the fourth quarter, publishing revenue decreased 13.9% to
$66.9 million. This compares to $77.8 million. Excluding the 2006
extra week ($4.9 million), publishing revenue in the fourth quarter
decreased 8.1%, largely due to continued weakness in retail and
classified advertising.
Operating earnings from publishing decreased 45.7% to $6.1
million, including a charge of $3.1 million related to a workforce
reduction. This compares to $11.1 million in the fourth quarter of
2006. Excluding the 2006 extra week ($1.1 million) and the charge for
the workforce reduction, operating earnings decreased 8.9%.
For the full year, publishing revenue decreased 6.5% to $266.1
million. This compares to $284.7 million. Excluding the 2006 extra
week and the litigation-related advertising credits ($0.6 million in
2007 and $4.0 million in 2006), revenue decreased 6.4%, largely due to
the year-long slump in retail and classified advertising.
Operating earnings from publishing decreased 11.3% to $30.7
million compared to $34.6 million. Excluding the extra week,
litigation-related costs ($1.2 million of earnings increase in 2007
and $5.7 million earnings charge in 2006) and the charge for the
workforce reduction, operating earnings decreased 17.0%.
Broadcasting
For the fourth quarter, broadcasting revenue decreased 19.2% to
$56.7 million. This compares to $70.2 million. Excluding the 2006
extra week ($3.6 million) and political and issue advertising ($0.6
million in 2007 and $10.0 million in 2006), revenue decreased 0.7%.
Broadcasting operating earnings of $10.3 million were down 55.2%
compared to $23.1 million.
For the full year, broadcasting revenue decreased 8.6% to $218.1
million. This compares to $238.5 million. Excluding the 2006 extra
week, political and issue advertising ($2.1 million in 2007 and $16.5
million in 2006) and $3.3 million generated from the 2006 Winter
Olympics, revenue increased 0.4%. Broadcasting operating earnings of
$41.3 million were down 37.2% compared to $65.9 million.
For the fourth quarter, revenue from television stations decreased
22.1% to $35.3 million compared to $45.4 million. Excluding the 2006
extra week ($2.4 million) and political and issue advertising ($0.4
million in 2007 and $9.1 million in 2006), revenue increased $1.0
million. Operating earnings from television stations decreased 64.8%
to $4.9 million compared to $14.0 million, largely reflecting the
declines in revenue.
For the full year, revenue from television stations decreased
11.2% to $134.1 million compared to $151.0 million. Excluding the 2006
extra week, political and issue advertising ($1.3 million in 2007 and
$14.6 million in 2006) and 2006 Winter Olympic advertising revenue,
revenue increased $2.1 million. Operating earnings from television
stations decreased 47.1% to $20.5 million compared to $38.8 million.
For the fourth quarter, revenue from radio stations of $21.4
million was down 13.8% compared to $24.8 million. Excluding the 2006
extra week ($1.2 million) and political and issue advertising ($0.2
million in 2007 and $1.0 million in 2006), revenue decreased $1.4
million. Operating earnings from radio stations of $5.4 million
decreased 40.6% compared to $9.1 million. Excluding the 2006 gain on
the sale of KBBX-FM ($2.5 million), operating earnings decreased
18.3%.
For the full year, revenue from radio stations of $84.1 million
was down 3.9% compared to $87.5 million. On a same-station basis
(excluding revenue generated by KBBX-FM, which was sold in September
2006 and KOMJ-AM, which was sold in early 2007), radio revenue
decreased 2.5%. Excluding the 2006 extra week and political and issue
advertising ($0.9 million in 2007 and $1.9 million in 2006), revenue
decreased $1.2 million. Operating earnings from radio stations of
$20.8 million decreased 23.1% compared to $27.1 million. Excluding the
gain on the sale of KBBX-FM, operating earnings decreased 15.3%.
Printing Services
For the fourth quarter, revenue from printing services decreased
4.6% to $17.6 million from $18.5 million. Excluding the extra week
($1.4 million), revenue increased 3.1%. Operating earnings from
printing services increased 30.5% to $1.5 million compared to $1.2
million, due to production efficiencies and a change in business mix.
For the full year, revenue from printing services increased 3.6%
to $69.4 million from $67.0 million, largely due to increased business
from existing customers and new accounts. Excluding the extra week,
revenue increased 5.8%. Operating earnings from printing services
increased 128.2% to $5.9 million compared to $2.6 million.
Other
For the fourth quarter, revenue for "Other" of $6.3 million
decreased 28.0% compared to revenue of $8.7 million due to softness in
the mailing services part of our direct marketing business. "Other"
operating earnings were $57,000. This compares to $1.4 million, which
included the gain from the sale of a garage property and a benefit
plan curtailment gain.
For the full year, revenue for "Other" of $29.1 million decreased
24.6% compared to revenue of $38.5 million. "Other" operating earnings
were $0.8 million. This compares to $1.6 million, which included the
above mentioned items.
Discontinued Operations
The operating results and gain/loss on sales of our former New
England, Ohio and Louisiana community publishing and printing clusters
(which were sold during the summer of 2007), Norlight
Telecommunications, Inc. (which was sold in February 2007) and
NorthStar Print Group (which was sold in January 2005) are classified
as discontinued operations, net of tax. For the fourth quarter 2007,
the loss from discontinued operations was $0.8 million compared to a
gain of $3.4 million. Included within discontinued operations in
fourth quarter 2007 is a reserve of $0.6 million for potential
environmental charges related to NorthStar.
For the full year 2007, the gain from discontinued operations was
$67.1 million. This compares to $10.6 million, which included a $1.0
million loss from a purchase price adjustment related to the January
2005 sale of NorthStar Print Group. Included within discontinued
operations in 2007 is a $62.0 million gain on the sale of Norlight.
Non-Operating Items
For the fourth quarter, other expense, which primarily consists of
interest expense, decreased $1.8 million to $2.3 million. For the full
year, other expense decreased $6.4 million to $9.1 million. The
decrease is attributable in large part to a decrease in debt
outstanding, which was reduced with the proceeds from the sale of
Norlight and several community newspaper and shopper clusters,
partially offset by expenses related to the repurchases of the
Company's common stock during the year.
Stock Repurchase Program
During the fourth quarter 2007, the Company repurchased 2,581,100
of its class A shares. Through December 30, 2007, the Company had
repurchased a total of 15,872,400 shares of its common stock, of which
12,672,400 were class A shares. Through February 8, 2008, the Company
had repurchased a total of 17,324,200 shares of its common stock.
First Quarter 2008 Outlook
For the first quarter of 2008, Journal Communications currently
anticipates that its publishing revenues will be down compared to the
prior year, reflecting continued challenges in classified advertising,
partially offset by continued strength in online, commercial printing
and commercial distribution. Both radio and television revenues are
expected to be down slightly.
Webcast of Conference Call
A live webcast of the fourth quarter conference call will be
accessible through www.journalcommunications.com/investors beginning
at 10:00 a.m. CT this morning. An archive of the webcast will be
available on this site today through February 27. To access the call,
dial (888) 680-0879 (domestic) or (617) 213-4856 (international) at
least 10 minutes prior to the scheduled 10:00 a.m. CT start. The
access code for the conference call is 71559443. Replays of the
conference call will be available February 13 through February 15. To
hear the replay, dial (888) 286-8010 (domestic) or (617) 801-6888
(international) at least one hour after the completion of the call.
The access code for the replay is 93806606. Pre-registration for the
conference call is now available on the Journal Communications'
website, www.journalcommunications.com/investors.
Forward-looking Statements
This press release contains certain forward-looking statements
related to our businesses that are based on our current expectations.
Forward-looking statements are subject to certain risks, trends and
uncertainties, including changes in advertising demand and other
economic conditions that could cause actual results to differ
materially from the expectations expressed in forward-looking
statements. All forward-looking statements should be evaluated with
the understanding of their inherent uncertainty. Our written policy on
forward-looking statements can be found on page 1 of our most recent
Annual Report on Form 10-K and on page 14 of our most recent Quarterly
Report on Form 10-Q, each as filed with the Securities and Exchange
Commission.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee,
Wisconsin, was founded in 1882. We are a diversified media company
with operations in publishing, radio and television broadcasting,
interactive media and printing services. We publish the Milwaukee
Journal Sentinel, which serves as the only major daily newspaper for
the Milwaukee metropolitan area, and 49 community newspapers and
shoppers in Wisconsin and Florida. We own and operate 35 radio
stations and 11 television stations in 12 states and operate an
additional television station under a local marketing agreement. Our
interactive media assets include 96 online enterprises that are
associated with our daily and community newspapers and television and
radio stations. We also provide a wide range of commercial printing
services -- including printing of publications, professional journals
and documentation material -- and operate a direct marketing services
business.
Tables Follow
Journal Communications, Inc.
Consolidated Statements of Earnings (unaudited)
(dollars in thousands, except for shares and per-share amounts)
Fourth Quarter (A)
-----------------------
2007 2006 % Change
----------- ----------- --------
Continuing Operations:
Revenue:
Publishing $66,931 $77,765 (13.9)
Broadcasting 56,739 70,189 (19.2)
Printing services 17,647 18,504 (4.6)
Other 6,300 8,747 (28.0)
----------- -----------
Total revenue 147,617 175,205 (15.7)
Operating costs and expenses:
Publishing 36,798 40,874 (10.0)
Broadcasting 25,332 27,424 (7.6)
Printing services 13,982 15,424 (9.3)
Other 5,428 7,309 (25.7)
----------- -----------
Total operating costs and expenses 81,540 91,031 (10.4)
Selling and administrative expenses 48,126 47,429 1.5
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 129,666 138,460 (6.4)
----------- -----------
Operating earnings 17,951 36,745 (51.1)
Other income and (expense):
Interest income 10 8
Interest expense (2,261) (4,056)
----------- -----------
Total other income and (expense) (2,251) (4,048) (44.4)
Earnings from continuing operations
before income taxes 15,700 32,697 (52.0)
Provision for income taxes 5,459 12,711 (57.1)
----------- -----------
Earnings from continuing operations 10,241 19,986 (48.8)
Gain (loss) from discontinued
operations, net of tax (772) 3,372 N/A
----------- -----------
Net earnings $9,469 $23,358 (59.5)
=========== ===========
Weighted average number of shares:
Basic 58,138,113 66,780,875
Diluted 62,652,022 71,281,044
Earnings per share:
Basic:
Continuing operations $0.17 $0.29
Discontinued operations (0.02) 0.05
----------- -----------
Net earnings $0.15 $0.34
=========== ===========
Diluted:
Continuing operations $0.16 $0.28
Discontinued operations (0.01) 0.05
----------- -----------
Net earnings $0.15 $0.33
=========== ===========
Four Quarters (B)
-----------------------
2007 2006 % Change
----------- ----------- --------
Continuing Operations:
Revenue:
Publishing $266,099 $284,730 (6.5)
Broadcasting 218,118 238,536 (8.6)
Printing services 69,377 66,956 3.6
Other 29,060 38,541 (24.6)
----------- -----------
Total revenue 582,654 628,763 (7.3)
Operating costs and expenses:
Publishing 143,321 149,898 (4.4)
Broadcasting 96,924 95,745 1.2
Printing services 55,313 56,129 (1.5)
Other 24,659 32,893 (25.0)
----------- -----------
Total operating costs and expenses 320,217 334,665 (4.3)
Selling and administrative expenses 183,649 189,498 (3.1)
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 503,866 524,163 (3.9)
----------- -----------
Operating earnings 78,788 104,600 (24.7)
Other income and (expense):
Interest income 36 37
Interest expense (9,180) (15,607)
----------- -----------
Total other income and (expense) (9,144) (15,570) (41.3)
Earnings from continuing operations
before income taxes 69,644 89,030 (21.8)
Provision for income taxes 26,626 35,247 (24.5)
----------- -----------
Earnings from continuing operations 43,018 53,783 (20.0)
Gain (loss) from discontinued
operations, net of tax 67,060 10,590 533.2
----------- -----------
Net earnings $110,078 $64,373 71.0
=========== ===========
Weighted average number of shares:
Basic 62,275,709 67,475,857
Diluted 66,808,796 71,984,963
Earnings per share:
Basic:
Continuing operations $0.66 $0.77
Discontinued operations 1.08 0.16
----------- -----------
Net earnings $1.74 $0.93
=========== ===========
Diluted:
Continuing operations $0.65 $0.75
Discontinued operations 1.00 0.14
----------- -----------
Net earnings $1.65 $0.89
=========== ===========
(A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13
weeks).
2006 fourth quarter: September 25, 2006 to December 31, 2006 (14
weeks).
(B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52
weeks).
2006 four quarters: December 26, 2005 to December 31, 2006 (53
weeks).
Journal Communications, Inc.
Segment Information (unaudited)
(dollars in thousands)
Fourth Quarter (A)
------------------
2007 2006 % Change
--------- -------- --------
Revenue
------------------------------------------
Publishing $66,931 $77,765 (13.9)
Broadcasting 56,739 70,189 (19.2)
Printing services 17,647 18,504 (4.6)
Other 6,300 8,747 (28.0)
--------- --------
$147,617 $175,205 (15.7)
========= ========
Operating earnings
------------------------------------------
Publishing $6,050 $11,136 (45.7)
Broadcasting 10,334 23,090 (55.2)
Printing services 1,510 1,157 30.5
Other 57 1,362 (95.8)
--------- --------
$17,951 $36,745 (51.1)
========= ========
Depreciation and amortization
------------------------------------------
Publishing $3,253 $3,828 (15.0)
Broadcasting 3,306 3,605 (8.3)
Printing services 547 544 0.6
Other 250 210 19.0
--------- --------
$7,356 $8,187 (10.2)
========= ========
Four Quarters (B)
-----------------
2007 2006 % Change
-------- -------- --------
Revenue
-------------------------------------------
Publishing $266,099 $284,730 (6.5)
Broadcasting 218,118 238,536 (8.6)
Printing services 69,377 66,956 3.6
Other 29,060 38,541 (24.6)
-------- --------
$582,654 $628,763 (7.3)
======== ========
Operating earnings
-------------------------------------------
Publishing $30,661 $34,551 (11.3)
Broadcasting 41,349 65,887 (37.2)
Printing services 5,932 2,600 128.2
Other 846 1,562 (45.8)
-------- --------
$78,788 $104,600 (24.7)
======== ========
Depreciation and amortization
-------------------------------------------
Publishing $13,294 $13,258 0.3
Broadcasting 12,930 12,970 (0.3)
Printing services 2,109 1,985 6.2
Other 1,035 865 19.7
-------- --------
$29,368 $29,078 1.0
======== ========
(A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13
weeks).
2006 fourth quarter: September 25, 2006 to December 31, 2006 (14
weeks).
(B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52
weeks).
2006 four quarters: December 26, 2005 to December 31, 2006 (53
weeks).
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
-------------------------------
Fourth Quarter of 2007 (A)
----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- -------
Advertising revenue:
Retail $25,211 $7,327 $32,538
Classified 12,112 1,266 13,378
National 2,461 -- 2,461
Direct Marketing 1,475 -- 1,475
Other -- 68 68
--------- ---------- -------
Total advertising revenue 41,259 8,661 49,920
Circulation revenue 12,759 262 13,021
Other revenue 3,242 748 3,990
--------- ---------- -------
Total revenue $57,260 $9,671 $66,931
========= ========== =======
Fourth Quarter of 2006 (B)
----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- -------
Advertising revenue:
Retail $29,227 $8,436 $37,663
Classified 14,758 1,653 16,411
National 3,240 -- 3,240
Direct Marketing 1,745 -- 1,745
Other -- 131 131
--------- ---------- -------
Total advertising revenue 48,970 10,220 59,190
Circulation revenue 13,780 593 14,373
Other revenue 3,283 919 4,202
--------- ---------- -------
Total revenue $66,033 $11,732 $77,765
========= ========== =======
% Change % Change % Change
Daily CN&S Total
-------- -------- --------
Advertising revenue:
Retail (13.7) (13.1) (13.6)
Classified (17.9) (23.4) (18.5)
National (24.0) N/A (24.0)
Direct Marketing (15.5) N/A (15.5)
Other N/A (48.1) (48.1)
Total advertising revenue (15.7) (15.3) (15.7)
Circulation revenue (7.4) (55.8) (9.4)
Other revenue (1.2) (18.6) (5.0)
Total revenue (13.3) (17.6) (13.9)
Four Quarters of 2007 (C)
-----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- --------
Advertising revenue:
Retail $90,235 $29,318 $119,553
Classified 58,152 5,994 64,146
National 9,227 -- 9,227
Direct Marketing 4,434 -- 4,434
Other -- 386 386
--------- ---------- --------
Total advertising revenue 162,048 35,698 197,746
Circulation revenue 51,174 1,082 52,256
Other revenue 12,234 3,863 16,097
--------- ---------- --------
Total revenue $225,456 $40,643 $266,099
========= ========== ========
Four Quarters of 2006 (D)
-----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- --------
Advertising revenue:
Retail $90,998 $34,499 $125,497
Classified 64,674 7,854 72,528
National 11,018 -- 11,018
Direct Marketing 5,873 -- 5,873
Other -- 657 657
--------- ---------- --------
Total advertising revenue 172,563 43,010 215,573
Circulation revenue 52,652 2,268 54,920
Other revenue 10,923 3,314 14,237
--------- ---------- --------
Total revenue $236,138 $48,592 $284,730
========= ========== ========
% Change % Change % Change
Daily CN&S Total
-------- -------- --------
Advertising revenue:
Retail (0.8) (15.0) (4.7)
Classified (10.1) (23.7) (11.6)
National (16.3) N/A (16.3)
Direct Marketing (24.5) N/A (24.5)
Other N/A (41.2) (41.2)
Total advertising revenue (6.1) (17.0) (8.3)
Circulation revenue (2.8) (52.3) (4.9)
Other revenue 12.0 16.6 13.1
Total revenue (4.5) (16.4) (6.5)
(A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13
weeks).
(B) 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14
weeks).
(C) 2007 four quarters: January 1, 2007 to December 30, 2007 (52
weeks).
(D) 2006 four quarters: December 26, 2005 to December 31, 2006 (53
weeks).
NOTE:
Publishing segment information is provided to facilitate comparison of
our publishing segment results with those of other publishing
companies and is not representative of the overall business of
Journal Communications or its operating results.
Daily newspaper's core newspaper
advertising linage by category:
----------------------------------------
Fourth Quarter (A)
-------------------
2007 2006 % Change
--------- --------- ---------
Advertising linage (inches):
Full run
Retail 139,073 179,793 (22.6)
Classified 115,358 150,744 (23.5)
National 13,650 16,443 (17.0)
--------- ---------
Total full run 268,081 346,980 (22.7)
Part run 9,558 26,481 (63.9)
--------- ---------
Total advertising linage 277,639 373,461 (25.7)
========= =========
Preprint pieces (in thousands) 256,707 293,909 (12.7)
========= =========
Total pages and revenue per page of our
community newspapers and shoppers:
----------------------------------------
Total pages
Community newspapers 11,164 17,238 (35.2)
Shoppers and specialty products 12,008 13,124 (8.5)
--------- ---------
Total pages 23,172 30,362 (23.7)
========= =========
Revenue per page $329.45 $298.01 10.5
========= =========
Daily newspaper's core newspaper
advertising linage by category:
----------------------------------------
Four Quarters (B)
-------------------
2007 2006 % Change
--------- --------- ---------
Advertising linage (inches):
Full run
Retail 591,649 670,719 (11.8)
Classified 539,443 653,601 (17.5)
National 47,451 59,049 (19.6)
--------- ---------
Total full run 1,178,543 1,383,369 (14.8)
Part run 39,199 111,420 (64.8)
--------- ---------
Total advertising linage 1,217,742 1,494,789 (18.5)
========= =========
Preprint pieces (in thousands) 872,784 926,175 (5.8)
========= =========
Total pages and revenue per page of our
community newspapers and shoppers:
----------------------------------------
Full pages of advertising:
Community newspapers 47,540 70,724 (32.8)
Shoppers and specialty products 49,079 57,513 (14.7)
--------- ---------
Total full pages of advertising 96,619 128,237 (24.7)
========= =========
Revenue per page $329.47 $298.52 10.4
========= =========
(A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13
weeks).
2006 fourth quarter: September 25, 2006 to December 31, 2006 (14
weeks).
(B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52
weeks).
2006 four quarters: December 26, 2005 to December 31, 2006 (53
weeks).
NOTE: Publishing segment information is provided to facilitate
comparison of our publishing segment results with those of other
publishing companies and is not representative of the overall
business of Journal Communications or its operating results.
All data is subject to later adjustment.
Journal Communications, Inc.
Reconciliation of consolidated net earnings to consolidated EBITDA
(unaudited)
(dollars in thousands)
Fourth Quarter (A) Four Quarters (B)
------------------ -------------------
2007 2006 2007 2006
--------- -------- --------- ---------
Net earnings $9,469 $23,358 $110,078 $64,373
(Gain)/loss from discontinued
operations, net 772 (3,372) (67,060) (10,590)
Provision for income taxes 5,459 12,711 26,626 35,247
Total other expense, net 2,251 4,048 9,144 15,570
Depreciation 6,843 7,626 27,407 27,080
Amortization 513 561 1,961 1,998
--------- -------- --------- ---------
EBITDA $25,307 $44,932 $108,156 $133,678
========= ======== ========= =========
(A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13
weeks).
2006 fourth quarter: September 25, 2006 to December 31, 2006 (14
weeks).
(B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52
weeks).
2006 four quarters: December 26, 2005 to December 31, 2006 (53
weeks).
We define EBITDA as net earnings excluding gain/loss from discontinued
operations, net, provision for income taxes, total other expense
(which is entirely comprised of interest income and expense),
depreciation and amortization. Our management uses EBITDA, among
other things, to evaluate our operating performance, and to value
prospective acquisitions. EBITDA is not a measure of performance
calculated in accordance with accounting principles generally
accepted in the United States. EBITDA should not be considered in
isolation of, or as a substitute for, net earnings as an indicator of
operating performance or cash flows from operating activities as a
measure of liquidity. EBITDA, as we calculate it, may not be
comparable to EBITDA reported by other companies.
Journal Communications, Inc.
Consolidated Condensed Balance Sheets
(dollars in thousands)
December 30,
2007 December 31,
(unaudited) 2006
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $6,256 $7,923
Receivables, net 86,197 87,401
Inventories, net 7,258 6,752
Prepaid expenses 13,066 11,281
Deferred income taxes 6,821 11,017
Assets of discontinued operations - 118,584
------------ ------------
Total current assets 119,598 242,958
Property and equipment, net 223,800 218,103
Goodwill 232,538 231,635
Broadcast licenses 223,529 196,659
Other intangible assets, net 25,702 26,826
Prepaid pension costs 15,298 -
Other assets 16,502 39,077
------------ ------------
Total assets $856,967 $955,258
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $30,026 $31,108
Accrued compensation 16,871 18,730
Accrued employee benefits 10,390 10,456
Deferred revenue 14,936 18,505
Accrued income taxes 219 4,048
Other current liabilities 7,757 18,368
Liabilities of discontinued operations - 20,856
Current portion of long-term liabilities 4,508 4,770
------------ ------------
Total current liabilities 84,707 126,841
Accrued employee benefits 25,157 33,749
Long-term notes payable to banks 178,885 235,000
Deferred income taxes 67,664 62,089
Other long-term liabilities 12,992 16,687
Shareholders' equity 487,562 480,892
------------ ------------
Total liabilities and shareholders' equity $856,967 $955,258
============ ============
CONTACT: Journal Communications, Inc.
Sara Leuchter Wilkins
Vice President of Investor Relations and
Corporate Communications
414-224-2633
swilkins@journalcommunications.com
SOURCE: Journal Communications, Inc.
