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| Journal Communications Reports December Revenue and Volume for Its Publishing and Broadcast Groups |
Printer Friendly Version (PDF) News Release Printer Friendly Version (PDF) Financial Tables MILWAUKEE--(BUSINESS WIRE)--Feb. 14, 2007--Journal Communications, Inc. (NYSE:JRN) announced today that for the twelfth period ended December 31, 2006, total revenues for its Publishing and Broadcast groups of $62.74 million increased 20.5% compared to $52.06 million reported for the twelfth period ended December 25, 2005. For the twelfth period 2006, advertising revenues of $52.43 million increased 19.8% compared to $43.75 million for the 2005 twelfth period. Twelfth period 2005 contained 35 days and twelfth period 2006 contained an additional week (42 days). Although it is difficult to precisely quantify the impact of the additional week on the twelfth period 2006, the Company estimates the total revenue impact to be $9.2 million and the advertising revenue impact to be $7.5 million. Excluding the extra week, total revenue increased 2.9% and advertising revenue increased 2.8%. Both total revenues and advertising revenues for the twelfth period 2006 were also impacted positively by the contribution of the new television operations acquired on December 5, 2005 and a the $1.1 million reduction in the estimate of advertising credits to be issued in 2007 related to a previous litigation settlement. Excluding the new television operations, total revenues were up 16.3% and advertising revenues were up 14.7%. Excluding the new television operations, the extra week and the revenue adjustment, total revenues decreased 3.1% and advertising revenue decreased 4.4%. Note that unless otherwise indicated, all comparisons are to the twelfth period ended December 25, 2005. At the Publishing segment, revenue at the daily newspaper and the community newspapers and shoppers totaled $37.03 million, up 16.3% compared to $31.84 million. Excluding the extra week and the $1.1 million from a positive litigation revenue reserve adjustment, revenue decreased 4.6%. Advertising revenue was $26.72 million, up 13.6% compared to $23.53 million. Excluding the extra week and the revenue reserve, advertising revenue decreased 7.4%. Circulation revenue of $6.08 million was up 16.4% compared to $5.23 million. Excluding the extra week, circulation revenue decreased 2.3%. Other revenue of $4.23 million was up 37.0%, reflecting gains in commercial printing and commercial delivery revenue. Excluding the extra week, other revenue increased 13.3%. At the daily newspaper, total advertising revenue was $20.60 million, up 16.2% compared to $17.73 million. Excluding the extra week and the $1.1 million from a positive litigation revenue reserve adjustment, advertising revenue decreased 7.7%. Specifically, including the extra week, retail advertising was up 25.5%, classified advertising revenue was down 0.9%, national advertising revenue of $1.47 million increased 73.7% and direct marketing revenue of $0.66 million was down 41.4%, reflecting the loss of a large solo mail customer. Within classified advertising, the auto and help wanted verticals were up 3.9% and 1.8%, respectively, and the real estate/rentals and other verticals decreased 7.1%, and 3.5%, respectively. Circulation revenue at the daily newspaper was $5.80 million, up 17.4% compared to $4.94 million. Excluding the extra week, circulation revenue was down 1.6%. Other revenue at the daily newspaper of $1.50 million was up 101.6% compared to $0.74 million, reflecting the new USA Today commercial printing contract and growth in commercial delivery revenue. Excluding the extra week, other revenue was up 75.9%. At the Company's community newspapers and shoppers operations, total advertising revenue was $6.12 million, up 5.6% compared to $5.80 million. Excluding the extra week, advertising revenue decreased 6.5%. Specifically, including the extra week, retail advertising revenue was up 6.6%, classified advertising revenue decreased 3.4% and other advertising revenue of $0.06 million was up 78.8%. Circulation revenue at the community newspapers and shoppers of $0.28 million decreased 1.8%. Excluding the extra week, circulation revenue was down 15.8%. Other revenue at the community newspapers and shoppers of $2.73 million increased 16.6%. Excluding the extra week, other revenue decreased 6.5%. At the Broadcasting segment, total revenue at the Company's radio and television stations of $25.71 million increased 27.1% compared to $20.22 million reported for the 2005 twelfth period. Excluding the extra week and the results from the new television operations, broadcast revenues were essentially flat. At the radio group, revenue was $10.05 million, up 12.5% compared to $8.94 million. Excluding the extra week, radio revenue decreased 1.6%. At the television group, revenue increased 38.7% to $15.66 million compared to $11.29 million. Excluding the extra week and the new television operations, television revenues increased 1.0%. 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 and communications company with operations in publishing, radio and television broadcasting, telecommunications and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 75 community newspapers and shoppers in eight states. We own and operate 36 radio stations and nine television stations in 12 states and operate two television stations under local marketing agreements. Through our telecommunications segment, we own and operate a regional fiber optic network in the upper Midwest, provide integrated data communications solutions for small and mid-size businesses and offer network transmission solutions for other service providers. We have entered into a stock purchase agreement under which Q-Comm Corporation is expected to acquire our telecommunications business. We also provide a wide range of commercial printing services -- including printing of publications, professional journals and documentation material -- as well as electronic publishing, kit assembly and fulfillment. In addition, we operate a direct marketing services business. Tables Follow
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
----------------------------------------------------------------------
Twelfth period of 2006 (A)
--------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
---------- ---------- ----------
Advertising revenue:
Retail $13,588 $5,248 $18,836
Classified 4,886 812 5,698
National 1,466 -- 1,466
Direct Marketing 661 -- 661
Other -- 59 59
---------- ---------- ----------
Total advertising revenue 20,601 6,119 26,720
Circulation revenue 5,802 279 6,081
Other revenue 1,498 2,731 4,229
---------- ---------- ----------
Total revenue $27,901 $9,129 $37,030
========== ========== ==========
Twelfth period of 2005 (A)
--------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
---------- ---------- ----------
Advertising revenue:
Retail $10,827 $4,923 $15,750
Classified 4,931 841 5,772
National 844 -- 844
Direct Marketing 1,128 -- 1,128
Other -- 33 33
---------- ---------- ----------
Total advertising revenue 17,730 5,797 23,527
Circulation revenue 4,941 284 5,225
Other revenue 743 2,343 3,086
---------- ---------- ----------
Total revenue $23,414 $8,424 $31,838
========== ========== ==========
% Change % Change % Change
Daily CN&S Total
---------- ---------- ----------
Advertising revenue:
Retail 25.5 6.6 19.6
Classified (0.9) (3.4) (1.3)
National 73.7 N/A 73.7
Direct Marketing (41.4) N/A (41.4)
Other N/A 78.8 78.8
Total advertising revenue 16.2 5.6 13.6
Circulation revenue 17.4 (1.8) 16.4
Other revenue 101.6 16.6 37.0
Total revenue 19.2 8.4 16.3
Twelve periods of 2006 (B)
--------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
---------- ---------- ----------
Advertising revenue:
Retail $90,998 $52,785 $143,783
Classified 64,674 10,781 75,455
National 11,018 -- 11,018
Direct Marketing 5,873 -- 5,873
Other -- 908 908
---------- ---------- ----------
Total advertising revenue 172,563 64,474 237,037
Circulation revenue 52,652 2,878 55,530
Other revenue 11,632 24,431 36,063
---------- ---------- ----------
Total revenue $236,847 $91,783 $328,630
========== ========== ==========
Twelve periods of 2005 (B)
-------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
---------- ---------- ---------
Advertising revenue:
Retail $93,812 $54,852 $148,664
Classified 70,040 10,632 80,672
National 10,188 -- 10,188
Direct Marketing 7,561 -- 7,561
Other -- 927 927
---------- ---------- ---------
Total advertising revenue 181,601 66,411 248,012
Circulation revenue 52,932 2,911 55,843
Other revenue 7,496 27,651 35,147
---------- ---------- ---------
Total revenue $242,029 $96,973 $339,002
========== ========== =========
% Change % Change % Change
Daily CN&S Total
---------- ---------- ----------
Advertising revenue:
Retail (3.0) (3.8) (3.3)
Classified (7.7) 1.4 (6.5)
National 8.1 N/A 8.1
Direct Marketing (22.3) N/A (22.3)
Other N/A (2.0) (2.0)
Total advertising revenue (5.0) (2.9) (4.4)
Circulation revenue (0.5) (1.1) (0.6)
Other revenue 55.2 (11.6) 2.6
Total revenue (2.1) (5.4) (3.1)
(A) 2006 twelfth period: November 20 to December 31, 2006 (6 weeks).
2005 twelfth period: November 21 to December 25, 2005 (5 weeks).
(B) Twelve periods of 2006: December 26, 2005 to December 31, 2006 (53
weeks).
Twelve periods of 2005: December 27, 2004 to December 25, 2005 (52
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. The revenues for
both the period and the year-to-date are not necessarily indicative
of the results that may be expected for the fiscal year ending
December 31, 2006.
Daily newspaper's core newspaper advertising linage by category and
core newspaper and shared mail preprint pieces:
----------------------------------------------------------------------
Twelfth period (A)
---------------------
2006 2005 % Change
---------- ---------- ----------
Advertising linage (inches):
Full run
Retail 74,581 68,040 9.6
Classified 54,595 54,657 (0.1)
National 6,644 4,224 57.3
---------- ----------
Total full run 135,820 126,921 7.0
Part run 10,227 13,380 (23.6)
---------- ----------
Total advertising linage 146,047 140,301 4.1
========== ==========
Preprint pieces (in thousands) 139,207 115,065 21.0
========== ==========
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
----------------------------------------------------------------------
Full pages of advertising:
Community newspapers 7,416 8,138 (8.9)
Shoppers and specialty products 10,326 9,604 7.5
---------- ----------
Total full pages of advertising 17,742 17,742 -
========== ==========
Revenue per page $307.25 $294.71 4.3
========== ==========
Daily newspaper's core newspaper advertising linage by category and
core newspaper and shared mail preprint pieces:
----------------------------------------------------------------------
Twelve periods (B)
---------------------
2006 2005 % Change
---------- ---------- ----------
Advertising linage (inches):
Full run
Retail 670,719 687,132 (2.4)
Classified 653,601 773,032 (15.4)
National 59,049 45,074 31.0
---------- ----------
Total full run 1,383,369 1,505,238 (8.1)
Part run 111,420 167,047 (33.3)
---------- ----------
Total advertising linage 1,494,789 1,672,285 (10.6)
========== ==========
Preprint pieces (in thousands) 926,175 895,598 3.4
========== ==========
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
----------------------------------------------------------------------
Full pages of advertising:
Community newspapers 82,903 91,659 (9.6)
Shoppers and specialty products 104,641 107,847 (3.0)
---------- ----------
Total full pages of advertising 187,544 199,506 (6.0)
========== ==========
Revenue per page $309.10 $300.75 2.8
========== ==========
(A) 2006 twelfth period: November 20 to December 31, 2006 (6 weeks).
2005 twelfth period: November 21 to December 25, 2005 (5 weeks).
(B) Twelve periods of 2006: December 26, 2005 to December 31, 2006 (53
weeks).
Twelve periods of 2005: December 27, 2004 to December 25, 2005 (52
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 are subject to later adjustment.
Journal Communications, Inc.
Broadcasting Segment Information (unaudited)
(dollars in thousands)
Broadcasting revenue by radio and television:
----------------------------------------------------------------------
Twelfth period of 2006 (A)
---------------------------------
Radio Television Total
---------- ----------- ----------
Revenue $10,052 $15,655 $25,707
========== =========== ==========
Twelfth period of 2005 (A)
---------------------------------
Radio Television Total
---------- ----------- ----------
Revenue $8,936 $11,285 $20,221
========== =========== ==========
% Change % Change % Change
Radio Television Total
---------- ----------- ----------
Revenue 12.5 38.7 27.1
Twelve periods of 2006 (B)
---------------------------------
Radio Television Total
---------- ----------------------
Revenue $87,513 $151,023 $238,536
========== =========== ==========
Twelve periods of 2005 (B)
---------------------------------
Radio Television Total
---------- ----------- ----------
Revenue $84,337 $83,979 $168,316
========== =========== ==========
% Change % Change % Change
Radio Television Total
---------- ----------- ----------
Revenue 3.8 79.8 41.7
(A) 2006 twelfth period: November 20 to December 31, 2006 (6 weeks).
2005 twelfth period: November 21 to December 25, 2005 (5 weeks).
(B) Twelve periods of 2006: December 26, 2005 to December 31, 2006 (53
weeks).
Twelve periods of 2005: December 27, 2004 to December 25, 2005 (52
weeks).
NOTE: Broadcasting segment information is provided to facilitate
comparison of our broadcasting segment results with those of other
broadcasting companies and is not representative of the overall
business of Journal Communications or its operating results. The
revenues for both the period and the year-to-date are not
necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 2006.
CONTACT: Journal Communications, Inc. SOURCE: Journal Communications, Inc. |