Journal Communications
Print Page    Close Window

<< Back
Journal Communications Reports May Revenue and Volume for Its Publishing and Broadcast Groups

Printer Friendly Version (PDF) News Release

Printer Friendly Version (PDF) Financial Tables


MILWAUKEE--(BUSINESS WIRE)--June 18, 2007--Journal Communications, Inc. (NYSE:JRN) announced today that for the fifth period ended May 27, 2007, total revenues for its Publishing and Broadcast groups of $43.47 million decreased 5.3% compared to $45.91 million reported for the fifth period ended May 21, 2006. For the fifth period 2007, advertising revenues of $36.43 million decreased 6.5% compared to $38.95 million for the 2006 fifth period. Both periods contained 28 days.

Note that unless otherwise indicated, all comparisons are to the fifth period ended May 21, 2006.

At the Publishing segment, revenues at the daily newspaper and the community newspapers and shoppers totaled $25.14 million, down 6.8% compared to $26.98 million. Advertising revenue was $18.11 million, down 9.6% compared to $20.03 million. Circulation revenue of $4.10 million was down 3.1% compared to $4.23 million. Other revenue of $2.93 million was up 7.7%.

At the daily newspaper, total advertising revenue was $13.15 million, down 8.5% compared to $14.37 million. Specifically, retail advertising was down 3.0%, classified advertising revenue was down 10.7%, national advertising revenue of $0.50 million decreased 22.7% and direct marketing revenue of $0.30 million was down 47.0%, reflecting a large department store's consolidation of all of its mail programs. Within classified advertising, the help wanted and real estate verticals were down 14.6% and 19.9%, respectively, and the auto and other verticals increased 4.9% and 1.3%, respectively. Circulation revenue at the daily newspaper was $4.00 million, down 0.5% compared to $4.02 million. Other revenue at the daily newspaper of $0.89 million was up 30.1% compared to $0.69 million, reflecting the new USA Today commercial printing contract. Total interactive advertising revenue at the daily newspaper, which is reflected in the various revenue categories, increased 56.5% to $1.11 million compared to $0.71 million.

At the Company's community newspapers and shoppers operations, total advertising revenue was $4.95 million, down 12.4% compared to $5.65 million. This largely reflects a mid-week shared mail product previously reported by the community newspapers and shoppers division and now reported under the daily newspaper following a business combination of the two operations' shared mail product in Milwaukee. Specifically, retail advertising revenue was down 11.3%, classified advertising revenue decreased 19.5% and other advertising revenue of $0.06 million was up 31.1%. Circulation revenue at the community newspapers and shoppers of $0.11 million decreased 50.2%, largely reflecting the change in the distribution model of the community newspapers in the Milwaukee area (from paid circulation to free delivery with the Thursday Milwaukee Journal Sentinel). Other revenue at the community newspapers and shoppers of $2.04 million increased 0.2%. Period 5 2006 and Period 5 2007 results for the community newspapers and shoppers division include the Louisiana operations, whose pending sale was announced recently. For Journal Communications' financial reporting purposes, the Louisiana operations will be reported as discontinued operations in the second quarter 2007 earnings press release.

At the Broadcasting segment, total revenue at the Company's radio and television stations of $18.33 million decreased 3.2% compared to $18.92 million. At the radio group, revenue was $7.07 million, down 0.5% compared to $7.11 million. On a same-station basis (excluding revenue generated by KBBX-FM, which was sold in September 2006 and KOMJ-AM, which was sold earlier this year), radio revenue for the fifth period 2007 increased 1.7%. At the television group, revenue decreased 4.7% to $11.26 million compared to $11.82 million, primarily due to a decline in political and issue advertising revenue.

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 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 75 community newspapers and shoppers in eight states. We own and operate 35 radio stations and ten television stations in 12 states and operate one television station under a local marketing agreement. Our interactive media assets include more than 75 online enterprises that are associated with our daily and community newspapers, 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.
              Publishing Segment Information (unaudited)
                        (dollars in thousands)

Publishing revenue by category:
-------------------------------


                                         Fifth period of 2007 (A)
                                      -------------------------------

                                                 Community
                                        Daily    Newspapers
                                      Newspaper  & Shoppers   Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                                $7,520     $4,098   $11,618
   Classified                             4,832        795     5,627
   National                                 502         --       502
   Direct Marketing                         299         --       299
   Other                                     --         59        59
                                      ---------- ---------- ---------
Total advertising revenue                13,153      4,952    18,105
Circulation revenue                       3,996        108     4,104
Other revenue                               891      2,041     2,932
                                      ---------- ---------- ---------
Total revenue                           $18,040     $7,101   $25,141
                                      ========== ========== =========



                                         Fifth period of 2006 (A)
                                      -------------------------------

                                                 Community
                                        Daily    Newspapers
                                      Newspaper  & Shoppers   Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                                $7,751     $4,621   $12,372
   Classified                             5,409        987     6,396
   National                                 649         --       649
   Direct Marketing                         564         --       564
   Other                                     --         45        45
                                      ---------- ---------- ---------
Total advertising revenue                14,373      5,653    20,026
Circulation revenue                       4,017        217     4,234
Other revenue                               685      2,037     2,722
                                      ---------- ---------- ---------
Total revenue                           $19,075     $7,907   $26,982
                                      ========== ========== =========






                                      % Change   % Change   % Change
                                        Daily       CN&S      Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                                  (3.0)     (11.3)     (6.1)
   Classified                             (10.7)     (19.5)    (12.0)
   National                               (22.7)       N/A     (22.7)
   Direct Marketing                       (47.0)       N/A     (47.0)
   Other                                    N/A       31.1      31.1
Total advertising revenue                  (8.5)     (12.4)     (9.6)
Circulation revenue                        (0.5)     (50.2)     (3.1)
Other revenue                              30.1        0.2       7.7
Total revenue                              (5.4)     (10.2)     (6.8)




                                         Five periods of 2007 (B)
                                      -------------------------------

                                                 Community
                                        Daily    Newspapers
                                      Newspaper  & Shoppers   Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                               $35,160    $19,013   $54,173
   Classified                            25,175      3,578    28,753
   National                               3,564         --     3,564
   Direct Marketing                       1,633         --     1,633
   Other                                     --        354       354
                                      ---------- ---------- ---------
Total advertising revenue                65,532     22,945    88,477
Circulation revenue                      20,605        708    21,313
Other revenue                             5,582      9,702    15,284
                                      ---------- ---------- ---------
Total revenue                           $91,719    $33,355  $125,074
                                      ========== ========== =========




                                         Five periods of 2006 (B)
                                      -------------------------------

                                                 Community
                                        Daily    Newspapers
                                      Newspaper  & Shoppers   Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                               $36,196    $21,228   $57,424
   Classified                            26,853      4,349    31,202
   National                               3,913         --     3,913
   Direct Marketing                       2,415         --     2,415
   Other                                     --        533       533
                                      ---------- ---------- ---------
Total advertising revenue                69,377     26,110    95,487
Circulation revenue                      20,762      1,196    21,958
Other revenue                             4,584      9,809    14,393
                                      ---------- ---------- ---------
Total revenue                           $94,723    $37,115  $131,838
                                      ========== ========== =========







                                      % Change   % Change   % Change
                                        Daily       CN&S      Total
                                      ---------- ---------- ---------

Advertising revenue:
   Retail                                  (2.9)     (10.4)     (5.7)
   Classified                              (6.2)     (17.7)     (7.8)
   National                                (8.9)       N/A      (8.9)
   Direct Marketing                       (32.4)       N/A     (32.4)
   Other                                    N/A      (33.6)    (33.6)
Total advertising revenue                  (5.5)     (12.1)     (7.3)
Circulation revenue                        (0.8)     (40.8)     (2.9)
Other revenue                              21.8       (1.1)      6.2
Total revenue                              (3.2)     (10.1)     (5.1)




(A) 2007 fifth period: April 30, 2007 to May 27, 2007.
    2006 fifth period: April 24, 2006 to May 21, 2006.
(B) Five periods of 2007: January 1, 2007 to May 27, 2007.
    Five periods of 2006: December 26, 2005 to May 21, 2006.


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 the
 period are not necessarily indicative of the results that may be
 expected for the fiscal year ending December 30, 2007.




Daily newspaper's core newspaper advertising linage by category and
 core newspaper and shared mail preprint pieces:
---------------------------------------------------------------------

                                        Fifth period (A)
                                      ---------------------
                                        2007       2006     % Change
                                      ---------- ---------- ---------
Advertising linage (inches):

Full run
   Retail                                55,200     55,580      (0.7)
   Classified                            47,355     55,281     (14.3)
   National                               2,118      3,684     (42.5)
                                      ---------- ----------
Total full run                          104,673    114,545      (8.6)
Part run                                  3,338     12,270     (72.8)
                                      ---------- ----------
Total advertising linage                108,011    126,815     (14.8)
                                      ========== ==========

Preprint pieces (in thousands)           67,971     71,216      (4.6)
                                      ========== ==========

Total pages and revenue per page of our community newspapers and
 shoppers:
---------------------------------------------------------------------

Total pages:
   Community newspapers                   5,318      7,863     (32.4)
   Shoppers and specialty products        7,904      8,346      (5.3)
                                      ---------- ----------
Total pages                              13,222     16,209     (18.4)
                                      ========== ==========

Revenue per page                        $339.64    $312.80       8.6
                                      ========== ==========

Daily newspaper's core newspaper advertising linage by category and
 core newspaper and shared mail preprint pieces:
---------------------------------------------------------------------

                                        Five periods (B)
                                      ---------------------
                                        2007       2006     % Change
                                      ---------- ---------- ---------
Advertising linage (inches):

Full run
   Retail                               245,692    260,148      (5.6)
   Classified                           228,066    269,471     (15.4)
   National                              16,059     22,072     (27.2)
                                      ---------- ----------
Total full run                          489,817    551,691     (11.2)
Part run                                 13,795     45,064     (69.4)
                                      ---------- ----------
Total advertising linage                503,612    596,755     (15.6)
                                      ========== ==========

Preprint pieces (in thousands)          336,720    340,571      (1.1)
                                      ========== ==========

Total pages and revenue per page of our community newspapers and
 shoppers:
---------------------------------------------------------------------

Total pages:
   Community newspapers                  25,359     35,239     (28.0)
   Shoppers and specialty products       38,161     40,784      (6.4)
                                      ---------- ----------
Total pages                              63,520     76,023     (16.4)
                                      ========== ==========

Revenue per page                        $326.05    $305.97       6.6
                                      ========== ==========

(A) 2007 fifth period: April 30, 2007 to May 27, 2007.
    2006 fifth period: April 24, 2006 to May 21, 2006.
(B) Five periods of 2007: January 1, 2007 to May 27, 2007.
    Five periods of 2006: December 26, 2005 to May 21, 2006.

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:
---------------------------------------------


                                         Fifth period of 2007 (A)
                                      -------------------------------

                                        Radio    Television   Total
                                      ---------- ---------- ---------


         Revenue                         $7,072    $11,255   $18,327
                                      ========== ========== =========



                                         Fifth period of 2006 (A)
                                      -------------------------------

                                        Radio    Television   Total
                                      ---------- ---------- ---------


         Revenue                         $7,109    $11,815   $18,924
                                      ========== ========== =========




                                      % Change   % Change   % Change
                                        Radio    Television   Total
                                      ---------- ---------- ---------


         Revenue                           (0.5)      (4.7)     (3.2)



                                         Five periods of 2007 (B)
                                      -------------------------------

                                         Radio   Television   Total
                                      ---------- ---------- ---------


         Revenue                        $31,807    $55,639   $87,446
                                      ========== ========== =========



                                         Five periods of 2006 (B)
                                      -------------------------------

                                         Radio   Television   Total
                                      ---------- ---------- ---------


         Revenue                        $30,970    $56,586   $87,556
                                      ========== ========== =========




                                      % Change   % Change   % Change
                                        Radio    Television   Total
                                      ---------- ---------- ---------


         Revenue                            2.7       (1.7)     (0.1)



(A) 2007 fifth period: April 30, 2007 to May 27, 2007.
    2006 fifth period: April 24, 2006 to May 21, 2006.
(B) Five periods of 2007: January 1, 2007 to May 27, 2007.
    Five periods of 2006: December 26, 2005 to May 21, 2006.

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 the period are not necessarily indicative of the results
 that may be expected for the fiscal year ending December 30, 2007.

CONTACT: Journal Communications, Inc.
Sara Leuchter Wilkins
Vice President of Investor Relations &
Corporate Communications
414-224-2633
swilkins@journalcommunications.com

SOURCE: Journal Communications, Inc.


"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Journal Communications, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.