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Journal Communications Reports Second Quarter 2010 Results

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MILWAUKEE, Jul 21, 2010 (BUSINESS WIRE) --

Journal Communications, Inc. (NYSE:JRN) today announced results for its second quarter ended June 27, 2010.

"Improving revenue trends combined with permanent cost reduction initiatives taken over the last year led to another quarter during which we increased our operating earnings and our operating margin from the prior year. We also reduced our debt during the quarter by another $16.9 million," said Steve Smith, Chairman and Chief Executive Officer of Journal Communications. "While the economic recovery seems to be somewhat uneven across the country, we were encouraged by the operating results for the quarter at most of our local markets including Sun Belt markets like Nevada and Florida.

"In the second quarter, Broadcast revenue increased as automotive advertising was up 31% compared to the prior year and we recorded $1.9 million in political and issue advertising. The rate of decline in advertising revenue moderated in our Publishing business, down 8.5% in the second quarter versus down 13.0% in the first quarter compared to the prior year.

"As we look ahead, developing our digital business and enhancing our local market content in order to grow audiences and build new advertising revenues remain a priority for us."

Second Quarter 2010 Results

Note that unless otherwise indicated, all comparisons are to the second quarter ended June 28, 2009.

For the second quarter, revenue from continuing operations of $104.4 million increased 0.1% compared to $104.3 million. Operating earnings of $14.4 million are compared to an operating loss of $9.5 million which included a $19.0 million impairment charge for broadcast licenses. The loss from discontinued operations of $0.2 million is compared to a loss of $0.3 million. Net earnings were $8.1 million compared to a net loss of $4.8 million.

In the second quarter, basic and diluted net earnings per share of class A and B common stock were $0.14 for both. This compared to basic and diluted net loss per share of $0.11 for both in 2009. Basic and diluted earnings per share of class A and B common stock from continuing operations were $0.14 for both. This compared to basic and diluted loss per share from continuing operations of $0.10 for both in 2009. Basic and diluted loss per share of class A and B common stock from discontinued operations were $0.01 for both in 2009.

The operating margin was 13.8% for the second quarter compared to a negative 9.1% margin. Excluding the $19.0 million impairment charge last year, the operating margin was 9.1%. EBITDA (net earnings (loss) excluding the gain/loss from discontinued operations, net; total other expense, net; provision (benefit) for income taxes; depreciation; amortization; and, if any, non-cash impairment charges) was $21.1 million compared to $16.5 million, an increase of 27.7%.

Consolidated and Segment Results

The following table presents our revenue and operating earnings (loss) by segment for the second quarters of 2010 and 2009.

2Q 2Q

% Change

2010 2009

Revenue:
Publishing $ 47.4 $ 49.4 (4.1 )
Broadcasting 47.0 43.8 7.5
Printing services 10.1 11.2 (10.0 )
Corporate eliminations (0.1 ) (0.1 ) 20.5
Total Revenue $ 104.4 $ 104.3 0.1
Operating earnings (loss):
Publishing $ 6.6 $ 4.4 51.7
Broadcasting 9.7 (11.8 ) N/A
Printing services 0.5 (0.2 ) N/A
Corporate (2.4 ) (1.8 ) (29.6 )
Total operating earnings (loss) $ 14.4 $ (9.5 ) N/A
Broadcast license impairment $ -- $ 19.0 N/A

Overall, total operating expenses of $90.0 million decreased 20.9% compared to $113.7 million. Excluding the $19.0 million impairment charge and the $1.7 million gain related to the initial estimate of the insurance proceeds for the Wichita tower replacement, total operating expenses last year were $96.4 million. The decrease in total operating expenses of 6.7% is primarily attributed to the many permanent cost saving initiatives implemented during the second quarter of 2009 that have now been in place for over a year.

Publishing

For the second quarter, publishing revenue decreased 4.1% to $47.4 million compared to $49.4 million, largely due to continued decreases in all advertising categories offset by an increase in commercial print revenue. Operating earnings from publishing were $6.6 million compared to $4.4 million, an increase of 51.7%. Total newsprint and paper expense in publishing was $4.6 million compared to $4.5 million, a 2.5% increase primarily due to an increase in the price per ton of newsprint.

Revenue at the daily newspaper for the second quarter decreased 2.3% to $39.0 million compared to $39.9 million. Retail advertising revenue at the daily newspaper decreased 5.6%. Classified advertising revenue at the daily newspaper decreased 9.5% largely due to decreases in the real estate, automotive and other advertising categories. Interactive advertising revenue at the daily newspaper increased 11.5% to $2.8 million compared to $2.5 million, primarily due to an increase in retail sponsorships and classified packages. Operating earnings from the daily newspaper were $5.4 million compared to $3.3 million, an increase of 63.3%. Daily newspaper operating expenses decreased 8.3%, primarily due to the reduction in employee related costs, other cost reduction initiatives and reduced expenses related to revenue declines partially offset by a $0.2 million increase in newsprint and paper expense.

Community newspapers and shoppers revenue for the second quarter decreased 11.9% to $8.4 million compared to $9.5 million. The decrease was primarily due to declines in automotive, retail and real estate advertising revenue. Operating earnings from community newspapers and shoppers was $1.2 million compared to $1.0 million, an increase of 14.1%. Operating expenses were down 15.1%, primarily due to cost savings from previous workforce reductions and reduced expenses related to revenue declines.

Broadcasting

For the second quarter, broadcasting revenue increased 7.5% to $47.0 million compared to $43.8 million. Local advertising revenue, excluding political advertising, increased 1.3% and national advertising revenue increased 16.1%. Total broadcast political and issue advertising revenue was $1.9 million compared to $0.6 million. Retransmission revenue was $1.6 million compared to $1.0 million. Broadcasting operating earnings were $9.7 million, including a $0.2 million gain related to insurance proceeds for the completion of the Wichita tower replacement compared to an operating loss of $11.8 million, which included a $19.0 million impairment charge for broadcast licenses and a $1.7 million gain related to the initial estimate of the insurance proceeds for the Wichita tower replacement.

Revenue from television stations for the second quarter increased 10.0% to $29.3 million compared to $26.7 million. Television political and issue advertising revenue was $1.7 million compared to $0.4 million. Operating earnings were $5.4 million compared to operating earnings of $2.0 million, excluding a $14.8 million impairment charge. Television operating expenses decreased 3.0%, excluding the impairment charge in 2009 due to the reduction in employee related costs and in syndicated programming expense as we move to more local television programming.

For the second quarter, revenue from radio stations increased 3.5% to $17.7 million from $17.1 million. Radio political and issue advertising revenue was $0.2 million in each of 2010 and 2009. Operating earnings from radio stations were $4.2 million compared to $3.5 million, excluding a $4.1 million impairment charge and a $1.7 million gain related to insurance proceeds from our Wichita tower replacement in 2009. Excluding the impact of the gain related to insurance proceeds from the tower replacement in both years, radio operating expenses were essentially flat.

Printing Services

For the second quarter, revenue from printing services decreased 10.0% to $10.1 million compared to $11.2 million due to continued weakness in the printing industry and the anticipated reduction in revenue from certain printing customers. Operating earnings were $0.5 million compared to an operating loss of $0.2 million. The business continues to align its cost structure with its reduced revenue base.

Corporate

Revenue eliminations were $0.1 million in each of the second quarters of 2010 and 2009. The operating loss was $2.4 million compared to $1.8 million due to an increase in director stock compensation expense and an increase in incentive compensation expense related to the improvement in overall operating earnings of the company.

Discontinued Operations

For the second quarter, the loss from the discontinued operations of PrimeNet Marketing Services was $0.2 million compared to $0.3 million.

Non-Operating Items

For the second quarter, other expense, which primarily consists of interest expense, was $0.5 million compared to $0.7 million. Interest expense decreased due to a decline in both the average borrowings under our credit facility during the quarter and the interest rate on our borrowings.

The second quarter effective tax rate was 40.1% compared to an effective tax benefit rate of 55.6%. Last year's rate was impacted by the operating loss created by the impairment charge and a favorable adjustment to our income tax reserve due to the lapsing of certain open tax years.

Debt and Cash Flows

At quarter end, our debt of $117.8 million represented 1.60 times the trailing four quarters of EBITDA. During the quarter and year-to-date, debt was reduced by $16.9 million and $33.6 million, respectively. While we have classified our debt as a current liability, we are in the process of extending our existing credit facility on a long-term basis and expect to finalize the agreement in the near future. Year-to-date cash from operating activities was $37.9 million compared to $47.0 million which included income tax refunds of $8.7 million. Year-to-date capital expenditures were $5.8 million compared to $3.8 million. Current year expenditures include $1.5 million related to the Wichita tower replacement for which we have received insurance proceeds.

Third Quarter 2010 Outlook

For the third quarter of 2010, we anticipate that publishing and printing services segment revenues will continue to be down compared to the prior year period reflecting challenges with publishing advertising revenue and printing volumes. Broadcasting segment revenues are expected to be up compared to the prior year period due to increased political, local and national advertising.

Conference Call and Webcast

The company will hold an earnings conference call today at 9:00 a.m. Central Time (10:00 a.m. ET, 7:00 a.m. PT). To access the call, dial (888) 679-8040 (domestic) or (617) 213-4851 (international) at least 10 minutes prior to the scheduled start of the call. The access code for the conference call is 55339577. A live webcast of the second quarter conference call will be accessible through the Journal Communications' website at http://www.journalcommunications.com/investors, also beginning at 9:00 a.m. CT this morning. An archive of the webcast will be available on this site today through August 4, 2010. Replays of the conference call will be available July 21 through August 4, 2010. 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 66386414. Pre-registration for the conference call is now available at http://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 in our most recent Quarterly Report on Form 10-Q, 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 several community newspapers and shoppers in Wisconsin and Florida. We own and operate 33 radio stations and 13 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets build on our strong publishing and broadcasting brands. We also provide a wide range of commercial printing services - including printing of publications, professional journals and documentation material.

Tables Follow

Journal Communications, Inc.
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except for shares and per-share amounts)
Second Quarter (A) Two Quarters (B)

2010

2009

% Change

2010

2009

% Change

Revenue:
Publishing $ 47,386 $ 49,433 (4.1 ) $ 91,938 $ 97,557 (5.8 )
Broadcasting 47,012 43,742 7.5 89,617 82,957 8.0
Printing services 10,112 11,240 (10.0 ) 21,747 25,535 (14.8 )
Corporate eliminations (124 ) (156 ) 20.5 (391 ) (268 ) (45.9 )
Total revenue 104,386 104,259 0.1 202,911 205,781 (1.4 )
Operating costs and expenses:
Publishing 28,552 32,060 (10.9 ) 57,499 66,876 (14.0 )
Broadcasting 22,300 21,911 1.8 43,896 45,412 (3.3 )
Printing services 8,196 9,832 (16.6 ) 17,800 22,259 (20.0 )
Corporate eliminations (124 ) (168 ) 26.2 (391 ) (282 ) (38.7 )
Total operating costs and expenses 58,924 63,635 (7.4 ) 118,804 134,265 (11.5 )
Selling and administrative expenses 31,047 31,105 (0.2 ) 59,606 62,403 (4.5 )
Broadcast license impairment -- 18,975 N/A -- 18,975 N/A
Total operating costs and expenses
and selling and administrative
expenses 89,971 113,715 (20.9 ) 178,410 215,643 (17.3 )
Operating earnings (loss) 14,415 (9,456 ) N/A 24,501 (9,862 ) N/A
Other income and (expense):
Interest income 25 -- 33 --
Interest expense (543 ) (737 ) (1,106 ) (1,549 )
Total other income and (expense) (518 ) (737 ) (29.7 ) (1,073 ) (1,549 ) (30.7 )
Earnings (loss) from continuing operations before income taxes 13,897 (10,193 ) N/A 23,428 (11,411 ) N/A
Provision (benefit) for income taxes 5,578 (5,665 ) N/A 9,401 (7,144 ) N/A
Earnings (loss) from continuing operations 8,319 (4,528 ) N/A 14,027 (4,267 ) N/A
Loss from discontinued operations, net of tax (219 ) (304 ) 28.0 (624 ) (444 ) (40.5 )
Net earnings (loss) $ 8,100 $ (4,832 ) N/A $ 13,403 $ (4,711 ) N/A
Weighted average number of shares-Class A and B common stock:
Basic 50,784,350 50,316,845 50,699,896 50,294,449
Diluted 50,784,350 50,316,845 50,699,896 50,294,449
Weighted average number of shares-Class C common stock 3,264,000 3,264,000 3,264,000 3,264,000
Earnings (loss) per share:
Basic - Class A and B common stock:
Continuing operations $ 0.14 $ (0.10 ) $ 0.24 $ (0.10 )
Discontinued operations -- (0.01 ) (0.01 ) (0.01 )
Net earnings (loss) $ 0.14 $ (0.11 ) $ 0.23 $ (0.11 )
Diluted - Class A and B common stock:
Continuing operations $ 0.14 $ (0.10 ) $ 0.24 $ (0.10 )
Discontinued operations -- (0.01 ) (0.01 ) (0.01 )
Net earnings (loss) $ 0.14 $ (0.11 ) $ 0.23 $ (0.11 )
Basic and diluted - Class C common stock:
Continuing operations $ 0.28 $ 0.14 $ 0.52 $ 0.28
Discontinued operations -- -- (0.01 ) --
Net earnings $ 0.28 $ 0.14 $ 0.51 $ 0.28

(A)

2010 second quarter: March 29, 2010 to June 27, 2010

2009 second quarter: March 30, 2009 to June 28, 2009

(B)

2010 two quarters: December 28, 2009 to June 27, 2010

2009 two quarters: December 29, 2008 to June 28, 2009
Journal Communications, Inc.
Segment Information (unaudited)
(dollars in thousands)
Second Quarter (A) Two Quarters (B)
2010 2009 % Change 2010 2009 % Change

Revenue

Publishing $ 47,386 $ 49,433 (4.1 ) $ 91,938 $ 97,557 (5.8 )
Broadcasting 47,012 43,742 7.5 89,617 82,957 8.0
Printing services 10,112 11,240 (10.0 ) 21,747 25,535 (14.8 )
Corporate eliminations (124 ) (156 ) 20.5 (391 ) (268 ) (45.9 )
$ 104,386 $ 104,259 0.1 $ 202,911 $ 205,781 (1.4 )

Operating earnings (loss)

Publishing $ 6,623 $ 4,367 51.7 $ 10,012 $ 3,755 166.6
Broadcasting 9,675 (11,793 ) N/A 17,394 (10,072 ) N/A
Printing services 510 (183 ) N/A 1,108 78 1,320.5
Corporate (2,393 ) (1,847 ) (29.6 ) (4,013 ) (3,623 ) (10.8 )
$ 14,415 $ (9,456 ) N/A $ 24,501 $ (9,862 ) N/A

Depreciation and amortization

Publishing $ 2,902 $ 3,026 (4.1 ) $ 5,800 $ 6,078 (4.6 )
Broadcasting 3,200 3,347 (4.4 ) 6,404 6,702 (4.4 )
Printing services 490 522 (6.1 ) 1,029 1,050 (2.0 )
Corporate 122 134 (9.0 ) 244 269 (9.3 )
$ 6,714 $ 7,029 (4.5 ) $ 13,477 $ 14,099 (4.4 )

(A)

2010 second quarter: March 29, 2010 to June 27, 2010

2009 second quarter: March 30, 2009 to June 28, 2009

(B)

2010 two quarters: December 28, 2009 to June 27, 2010

2009 two quarters: December 29, 2008 to June 28, 2009
Journal Communications, Inc.
Publishing and Broadcasting Segment Information (unaudited)
(dollars in thousands)
Second Quarter of 2010 (A) Second Quarter of 2009 (B)

Publishing:

Community

Community

Daily Newspapers Daily Newspapers % Change % Change

% Change

Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total
Advertising revenue:
Retail $ 15,849 $ 5,835 $ 21,684 $ 16,790 $ 6,642 $ 23,432 (5.6 ) (12.1 ) (7.5 )
Classified 5,191 1,287 6,478 5,734 1,528 7,262 (9.5 ) (15.8 ) (10.8 )
National 1,103 -- 1,103 1,202 -- 1,202 (8.2 ) N/A (8.2 )
Direct Marketing 62 -- 62 124 -- 124 (50.0 ) N/A (50.0 )
Other

--

37 37 -- 63 63 N/A (41.3 ) (41.3 )
Total advertising revenue 22,205 7,159 29,364 23,850 8,233 32,083 (6.9 ) (13.0 ) (8.5 )
Circulation revenue 12,508 471 12,979 12,787 512 13,299 (2.2 ) (8.0 ) (2.4 )
Other revenue 4,307 736 5,043 3,301 750 4,051 30.5 (1.9 ) 24.5
Total revenue $ 39,020 $ 8,366 $ 47,386 $ 39,938 $ 9,495 $ 49,433 (2.3 ) (11.9 ) (4.1 )
Operating earnings $ 5,442 $ 1,181 $ 6,623 $ 3,332 $ 1,035 $ 4,367 63.3 14.1 51.7

Broadcasting:

% Change % Change % Change
Television Radio Total Television Radio Total Television Radio Total
Revenue $ 29,296 $ 17,716 $ 47,012 $ 26,623 $ 17,119 $ 43,742 10.0 3.5 7.5
Operating earnings (loss) $ 5,429 $ 4,246 $ 9,675 $ (12,823 ) $ 1,030 $ (11,793 ) N/A 312.2 N/A
Broadcast license impairment $ - $ - $ - $ 14,845 $ 4,130 $ 18,975 N/A N/A N/A
Adjusted operating earnings $ 5,429 $ 4,246 $ 9,675 $ 2,022 $ 5,160 $ 7,182 168.5 (17.7 ) 34.7
Two Quarters of 2010 (C) Two Quarters of 2009 (D)

Publishing:

Community Community
Daily Newspapers Daily Newspapers % Change % Change % Change
Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total
Advertising revenue:
Retail $ 29,638 $ 10,626 $ 40,264 $ 31,940 $ 12,511 $ 44,451 (7.2 ) (15.1 ) (9.4 )
Classified 10,104 2,295 12,399 11,430 2,688 14,118 (11.6 ) (14.6 ) (12.2 )
National 2,323 -- 2,323 2,594 -- 2,594 (10.4 ) N/A (10.4 )
Direct Marketing 117 -- 117 461 -- 461 (74.6 ) N/A (74.6 )
Other

--

96 96 -- 146 146 N/A (34.2 ) (34.2 )
Total advertising revenue 42,182 13,017 55,199 46,425 15,345 61,770 (9.1 ) (15.2 ) (10.6 )
Circulation revenue 25,066 927 25,993 25,358 1,012 26,370 (1.2 ) (8.4 ) (1.4 )
Other revenue 9,295 1,451 10,746 7,783 1,634 9,417 19.4 (11.2 ) 14.1
Total revenue $ 76,543 $ 15,395 $ 91,938 $ 79,566 $ 17,991 $ 97,557 (3.8 ) (14.4 ) (5.8 )
Operating earnings $ 8,954 $ 1,058 $ 10,012 $ 3,245 $ 510 $ 3,755 175.9 107.5 166.6

Broadcasting:

% Change % Change % Change
Television Radio Total Television Radio Total Television Radio Total
Revenue $ 57,724 $ 31,893 $ 89,617 $ 52,607 $ 30,350 $ 82,957 9.7 5.1 8.0
Operating earnings (loss) $ 10,576 $ 6,818 $ 17,394 $ (12,210 ) $ 2,138 $ (10,072 ) N/A 218.9 N/A
Broadcast license impairment $ - $ - $ - $ 14,845 $ 4,130 $ 18,975 N/A N/A N/A
Adjusted operating earnings $ 10,576 $ 6,818 $ 17,394 $ 2,635 $ 6,268 $ 8,903 301.4 8.8 95.4
(A) 2010 second quarter: March 29, 2010 to June 27, 2010
(B) 2009 second quarter: March 30, 2009 to June 28, 2009
(C) 2010 two quarters: December 28, 2009 to June 27, 2010
(D) 2009 two quarters: December 29, 2008 to June 28, 2009

NOTE:

Publishing and broadcasting segment information is provided to facilitate comparison of our publishing and broadcasting segments results with those of other publishing and broadcasting companies and is not representative of the overall business of Journal Communications or its operating results.

Journal Communications, Inc.
Reconciliation of consolidated net earnings (loss) to consolidated EBITDA (unaudited)
(dollars in thousands)
Second Quarter (A) Two Quarters (B)
2010 2009 2010 2009
Net earnings (loss) $ 8,100 $ (4,832 ) $ 13,403 $ (4,711 )
Loss from discontinued operations, net 219 304 624 444
Provision (benefit) for income taxes 5,578 (5,665 ) 9,401 (7,144 )
Total other expense, net 518 737 1,073 1,549
Depreciation 6,227 6,533 12,498 13,112
Amortization 487 496 979 987
Broadcast license impairment -- 18,975 -- 18,975
EBITDA $ 21,129 $ 16,548 $ 37,978 $ 23,212
(A) 2010 second quarter: March 29, 2010 to June 27, 2010
2009 second quarter: March 30, 2009 to June 28, 2009
(B) 2010 two quarters: December 28, 2009 to June 27, 2010
2009 two quarters: December 29, 2008 to June 28, 2009

We define EBITDA as net earnings (loss) excluding gain/loss from discontinued operations, net, provision (benefit) for income taxes, total other expense (which is entirely comprised of interest income and expense), depreciation, amortization and, if any, non-cash impairment charges. 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.
Calculation of Diluted Earnings Per Share - Class A and B (unaudited)
(dollars in thousands)
Second Quarter (A) Two Quarters (B)
2010 2009 2010 2009
Numerator for diluted earnings (loss) per share:
Dividends on class A and B common stock $ - * $ - * $ - * $ 1,006 *
Dividends on class C common stock 464 464 928 928
Dividends on non-vested restricted stock - (5 ) - 1
Total undistributed earnings (loss) from continuing operations
Class A and B 7,257 * (4,987 ) * 12,099 * (6,202 ) *
Class C 466 - 778 -
Non-vested restricted stock 132 - 222 -
Loss from discontinued operations
Class A and B (203 ) (304 ) (576 ) (444 )
Class C (13 ) - (37 ) -
Non-vested restricted stock (3 ) - (11 ) -
Net earnings $ 8,100 $ (4,832 ) $ 13,403 $ (4,711 )
Denominator for diluted earnings (loss) per class A and B share:
Weighted average shares outstanding - Class A and B 50,784 50,317 50,700 50,294
Impact of non-vested restricted shares - - - -
Conversion of class C shares - - - -
Adjusted weighted average shares outstanding for class A and B 50,784

*

50,317

*

50,700

*

50,294

*

Diluted earnings (loss) per share of class A and B:
Continuing operations $ 0.14

*

$ (0.10 )

*

$ 0.24

*

$ (0.10 )

*

Discontinued operations - (0.01 ) (0.01 ) (0.01 )
Net earnings (loss) $ 0.14 $ (0.11 ) $ 0.23 $ (0.11 )
* Included in calculation of diluted earnings per share from continuing operations - class A and B

(A)

2010 second quarter: March 29, 2010 to June 27, 2010

2009 second quarter: March 30, 2009 to June 28, 2009

(B)

2010 two quarters: December 28, 2009 to June 27, 2010

2009 two quarters: December 29, 2008 to June 28, 2009
Journal Communications, Inc.
Consolidated Condensed Balance Sheets
(dollars in thousands)
June 27,

2010

December 27,

(unaudited)

2009

ASSETS
Current assets:
Cash and cash equivalents $ 2,684 $ 3,369
Investments of variable interest entity 500 --
Receivables, net 57,035 62,543
Inventories, net 2,667 3,070
Prepaid expenses 4,842 3,497
Syndicated programs 3,907 7,983
Deferred income taxes 4,166 4,899
Assets of discontinued operations -- 2,393
Total current assets 75,801 87,754
Property and equipment, net 194,492 201,541
Syndicated programs 2,273 3,285
Goodwill 9,098 9,098
Broadcast licenses 82,426 81,762
Other intangible assets, net 23,997 24,976
Deferred income taxes 58,384 63,368
Other assets 1,680 1,403
Total assets $ 448,151 $ 473,187
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 23,898 $ 23,963
Accrued compensation 13,474 13,564
Notes payable to banks 117,815 --
Accrued employee benefits 6,238 5,642
Deferred revenue 15,202 15,353
Syndicated programs 5,215 9,944
Other current liabilities 8,087 7,437
Current portion of long-term liabilities 552 440
Current liabilities of discontinued operations -- 1,296
Total current liabilities 190,481 77,639
Accrued employee benefits 61,695 63,268
Syndicated programs 4,584 6,250
Long-term notes payable to banks -- 151,375
Other long-term liabilities 4,682 3,580
Shareholders' equity 185,545 171,075
Noncontrolling interest 1,164 --
Total liabilities and equity $ 448,151 $ 473,187

SOURCE: Journal Communications, Inc.

Journal Communications, Inc.
Andre Fernandez
Executive Vice President, Finance & Strategy
and Chief Financial Officer
414-224-2884