Journal Communications Reports Fourth Quarter And Full Year 2013 Results


The following excerpt is from the company's SEC filing.

Fourth Quarter 2013 (13 weeks) Highlights and Changes from Fourth Quarter 2012 (14 weeks):

MILWAUKEE--(BUSINESS WIRE)--March 4, 2014--Journal Communications, Inc. (NYSE:JRN) today announced results for its fourth quarter and full year ended December 29, 2013. All reported results below were impacted by an extra week in 2012 compared to 2013. Note that the fourth quarter of 2013 included 13 weeks and the full year 2013 included 52 weeks, versus 14 weeks and 53 weeks in the corresponding prior periods. Our Palm Springs television stations have been repo rted as discontinued operations in the fourth quarter and full year in 2013 and 2012, respectively.

“Journal Communications delivered a solid fourth quarter in a non-political year, driven by gains in core revenue in our broadcast group and improving advertising revenue trends in publishing. Revenue from NewsChannel 5 in Nashville, acquired in December 2012, helped us replace some of the record political advertising dollars we recorded in the fourth quarter last year. Consolidated revenue of $107.4 million was up 11% compared to 2012, excluding the extra week and political revenue in 2012,” said Steven J. Smith, Chairman and CEO of Journal Communications.

“Within the broadcast group, same-station core revenue, excluding political and the extra week, was up 7%, with television up 11% and radio up 1%. Television retransmission revenue more than doubled to $5.9 million. The daily newspaper continues to benefit from an improved advertising environment. Advertising revenue, excluding the extra week, was flat. Focused sales efforts, along with ongoing expense controls, contributed to a 2% increase in operating earnings for the daily newspaper.”

“Overall, in addition to growing core revenue, we enhanced our digital offerings and content in both broadcast and publishing, and continued to deliver on our financial commitments and strategic plans.”

Note that unless otherwise indicated, all comparisons are to the fourth quarter ended December 30, 2012 (14 weeks). The fourth quarter of 2013 contained 13 weeks. The estimated impact on revenue of the extra week in the fourth quarter of 2012 is summarized in Table 4. Same-station results exclude the results of Nashville NewsChannel 5 which was acquired in December 2012.

In the fourth quarter, revenue of $107.4 million decreased 12.1%, though increased 11.0% excluding political and the extra week. Digital revenue of $5.5 million grew 1.0%. Operating earnings of $19.9 million decreased 24.4% driven primarily by lower political revenue that was partially offset by the Nashville NewsChannel 5 earnings.

Excluding the special items and the extra week, operating earnings decreased 28.8%. Total expenses of $87.4 million decreased 8.7%. Excluding the special items and the extra week, total expenses decreased 0.6%.

The operating margin was 18.6% compared to 21.6%. Adjusted EBITDA, as defined in Table 5, was $25.8 million, a decrease of 27.5%.

Net earnings were $11.3 million, a decrease of 25.4%. There were $0.2 million of net earnings from Palm Springs discontinued operations in 2013 compared to $0.5 million in 2012.

In the fourth quarter, basic and diluted earnings per share of class A and B common stock were $0.22 compared to $0.30 in 2012, which includes $0.01 from discontinued operations in 2012. The net impact of the special items and the extra week had a $0.01 and a $0.03 negative impact on our diluted earnings per share of class A and B common stock from continuing operations in 2013 and 2012, respectively.

Note that unless otherwise indicated, all comparisons are to the full year ended December 30, 2012 (53 weeks). The full year ended December 29, 2013 contained 52 weeks. The estimated impact on revenue of the extra week in 2012 is shown in Table 4. Same-station results exclude the results of Nashville NewsChannel 5 which was acquired in December 2012 and Tulsa radio stations KBEZ-FM and KHTT-FM acquired in June 2012.

For the full year, revenue of $397.3 million increased 1.1%, or 2.6% excluding the extra week in 2012. Digital revenue of $19.3 million grew 14.7%. Operating earnings of $51.3 million decreased 12.6% driven by lower political and Olympics revenue partially offset by operating earnings of NewsChannel 5.

Excluding the special items and the extra week in 2012, operating earnings decreased 15.2%. Total expenses of $345.9 million increased 3.5%. Excluding the special items and the extra week, total expenses increased 6.1%.

The operating margin was 12.9% compared to 14.9%. Adjusted EBITDA, as defined in Table 5, was $76.9 million, a decrease of 12.3%.

Net earnings were $26.2 million, a decrease of 21.4%. There were no net earnings from Palm Springs discontinued operations in 2013 compared to $0.7 million in 2012.

For the full year, basic and diluted net earnings per share of class A and B common stock were $0.52 compared to $0.61. Basic and diluted earnings per share of class A and B common stock from discontinued operations were $0.01 in 2012. The net impact of the special items and the extra week had a $0.04 and $0.07 negative impact on our diluted earnings per share of class A and B common stock from continuing operations in 2013 and 2012, respectively.

Revenue decreased 13.1% to $65.7 million in the fourth quarter and increased 6.4% to $243.4 million for the full year. Excluding the extra week, revenue decreased 9.3% in the fourth quarter, though increased 7.9% for the full year. Total political and Olympics revenue in the fourth quarter was $0.4 million and $1.6 million for the full year compared to $19.9 million and $38.0 million. Expenses decreased 4.7% in the fourth quarter, though increased 14.0% for the full year. Excluding special items and the extra week, same-station expenses decreased 4.8% in the fourth quarter, though increased 3.6% for the full year. Operating earnings of $15.2 million in the fourth quarter and $45.4 million for the year decreased 32.7% and 17.4%, respectively, driven by lower political revenue, partially offset by operating earnings from acquisitions.

In the fourth quarter, revenue decreased 15.5% to $45.1 million, or 32.5% excluding the extra week on a same-station basis. Television political revenue was $0.3 million compared to $19.2 million. On a same-station basis excluding the extra week and political revenue, total revenue was up 10.6%, local revenue increased 2.1% and national revenue increased 11.4%. Retransmission revenue was $5.9 million compared to $2.9 million.

In the fourth quarter, operating expenses decreased 0.9%. On a same-station basis excluding special items and the extra week, expenses decreased 6.5% driven by lower sales commissions. Operating earnings were $10.9 million.

For the full year, revenue increased 9.3% to $166.6 million, though decreased 17.1% on a same-station basis excluding the extra week. Television political and Olympics revenue was $1.3 million compared to $36.3 million. On a same-station basis excluding political, Olympics revenue and the extra week, total revenue increased 9.0%, local revenue increased 4.1% and national revenue increased 5.5%. Retransmission revenue was $21.9 million compared to $10.2 million.

For the full year, operating expenses increased 21.3%. On a same-station basis excluding special items and the extra week, expenses increased 2.9%. Operating earnings were $31.4 million.

In the fourth quarter, revenue decreased 7.2% to $20.5 million or 2.3% excluding the extra week on a same-station basis. Radio political revenue was $0.1 million compared to $0.7 million. On a same-station basis, excluding political and the extra week, total revenue increased 0.6%, local revenue increased 0.1%, though national revenue decreased 22.8%.

In the fourth quarter, operating expenses decreased 12.0%. On a same-station basis, excluding special items and the extra week, expenses decreased 1.7%. Operating earnings were $4.3 million.

For the full year, revenue increased 0.7% to $76.8 million or 1.7% on a same-station basis excluding the extra week. Radio political revenue was $0.4 million compared to $1.7 million. On a same-station basis excluding political and the extra week, total revenue increased 3.7%, local revenue increased 3.5%, though national revenue decreased 8.9%.

For the full year, operating expenses increased 0.8%. On a same-station basis excluding special items and the extra week, expenses increased 4.9% due to a favorable music license fee settlement recorded in 2012, partially off-set by higher employee costs. Operating earnings from radio were $14.0 million.

Revenue of $41.8 million decreased 10.4% for the fourth quarter and decreased 6.3% to $154.6 million for the full year. Excluding the extra week and the northern Wisconsin publications sold in 2012, revenue decreased 0.9% for the quarter, though increased 0.6% for the full year.

Expenses decreased 13.0% in the fourth quarter and decreased 8.2% for the year. Excluding the northern Wisconsin publications, special items and extra week, expenses decreased 2.8% in the fourth quarter and 1.1% for the year. Operating earnings increased 6.5% to $6.6 million in the fourth quarter and 18.6% to $13.8 million for the full year.

In the fourth quarter, revenue decreased 7.9% to $38.2 million or 1.8% excluding the extra week. Retail advertising revenue decreased 4.0%, though increased 2.5% excluding the extra week. Classified advertising revenue decreased 10.6%, or 6.4% excluding the extra week, largely due to a decrease in employment advertising. Interactive advertising revenue of $3.5 million decreased 11.1%, or 8.0% excluding the extra week, driven by a decrease in political revenue, retail sponsorships and classified employment revenue. Circulation revenue decreased 7.9% to $12.6 million, or 1.2% excluding the extra week.

In the fourth quarter, operating expenses decreased 9.7% or 3.8% excluding the extra week. Total newsprint and paper expense decreased 16.8% for fourth quarter driven by lower volume and the extra week. Operating earnings increased 2.1% to $6.3 million.

For the full year, revenue decreased 2.5% to $140.0 million or 0.7% excluding the extra week. Retail advertising revenue increased 2.1%, or 4.2% excluding the extra week. Classified advertising revenue decreased 7.5%, or 6.5% excluding the extra week, largely due to a decrease in employment advertising. Interactive advertising revenue of $12.8 million increased 3.7%, or 4.9% excluding the extra week. Circulation revenue decreased 4.7% to $48.8 million, or 2.9% excluding the extra week.

For the full year, operating expenses decreased 4.0%, or 1.8% excluding special items and the extra week. Total newsprint and paper expense decreased 8.8% for the year driven by lower volume. Operating earnings increased 16.5% to $12.8 million.

In the fourth quarter, revenue decreased 30.0% to $3.6 million. Excluding the northern Wisconsin publications sold in 2012 and the extra week, revenue increased 10.6%, driven by an increase in commercial printing revenue from the northern Wisconsin publications that we have continued to print following the sale.

In the fourth quarter, operating expenses decreased 35.6%, though increased 7.9% excluding costs related to the northern Wisconsin publications sold in 2012 and the extra week. Operating earnings were $0.3 million in 2013 and were negligible in 2012 despite recording a $0.3 million pre-tax loss on the sale of the northern Wisconsin publications.

For the full year, revenue decreased 32.0% to $14.5 million, though increased 15.1% excluding the northern Wisconsin publications sold in 2012 and the extra week. Operating expenses decreased 34.6% primarily due to the sale on the northern Wisconsin publications. Operating earnings were $1.0 million compared to $0.6 million in 2012, which included a $0.3 million pre-tax loss on the sale of the northern Wisconsin publications.

The operating loss for the fourth quarter was $1.9 million compared to $2.4 million. The decrease in the operating loss was driven by lower management incentive compensation and the extra week.

For the full year, the operating loss was $7.9 million in both years.

Discontinued operations reflect the after-tax results of our two Palm Springs television stations which we agreed to sell in 2013. The sale closed effective January 1, 2014 and we will recognize a pre-tax gain of approximately $10.2 million in the first quarter of 2014. Earnings from discontinued operations, net of tax, in the fourth quarter were $0.2 million compared to $0.5 million. For the full year, there were no earnings from discontinued operations, net of tax, compared to $0.7 million in 2012.

Other expense, which primarily consists of interest expense, was $1.8 million in the fourth quarter compared to $2.1 million due to a lower average debt balance in 2013. For the full year, other expense was $7.9 million compared to $4.5 million driven by increased borrowings related to the December 2012 acquisition of NewsChannel 5 in Nashville.

The fourth quarter and full year effective tax rates were 38.9% and 39.6% in 2013, respectively, compared to 39.9% and 40.0% in 2012, respectively.

At year end, total debt was $208.2 million, a decrease of $37.8 million from year-end 2012. Of the $208.2 million debt, $195.0 million was drawn on our senior secured credit facilities and an additional $13.3 million remained outstanding in unsecured subordinated notes payable to the former holders of our class C shares. Our consolidated funded debt ratio, as defined in our credit agreement, was 2.67-to-1. Cash from operating activities in 2013 was $53.4 million, a decrease of 29.0% driven by lower operating earnings. Year-to-date capital expenditures were $12.4 million compared to $12.3 million.

In the first quarter of 2014, excluding political and Olympics revenue, we expect total broadcast revenue to be up in the low-single digits over the first quarter of 2013. In publishing, we expect revenue declines in the low-single digits as compared to the first quarter of 2013.

The company will hold an earnings conference call today at 10:00 a.m. Central Time (11:00 a.m. ET, 8:00 a.m. PT). To access the call, dial (866) 202-0886 (domestic) or (617) 213-8841 (international) at least 10 minutes prior to the scheduled start of the call. The access code for the conference call is 18607239. A live webcast of the fourth quarter conference call will be accessible through the Journal Communications’ website at, also beginning at 10:00 a.m. CT this morning. An archive of the webcast will be available on this site today through March 11, 2014. Replays of the conference call will also be available through March 11, 2014. 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 12127296. Pre-registration for the conference call is now available at www.journalcommunications.com/investors.

Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in television and radio broadcasting, publishing and interactive media. We own and operate 13 television stations and 35 radio stations in 11 states. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community publications in Wisconsin. Our interactive media assets build on our strong publishing and broadcasting brands.

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 that could cause actual results to differ materially from the expectations expressed in the forward-looking statements, including, but not limited to, changes in advertising demand or the buying strategies of advertisers or the migration of advertising to the internet; changes in newsprint prices and other costs of materials; changes in federal or state laws and regulations or their interpretations (including changes in regulations governing the number and types of broadcast and cable system properties, newspapers and licenses that a person may control in a given market or in total or changes in spectrum allocation policies); changes in legislation or customs relating to the collection, management and aggregation and use of consumer information through telemarketing and electronic communication efforts; the availability of quality broadcast programming at competitive prices; changes in network affiliation agreements, including increased costs as networks seek a greater share of retransmission revenue; quality and rating of network over-the-air broadcast programs, including programs changing networks and changing competitive dynamics regarding how and when programs are made available to viewers; effects of the loss of commercial inventory resulting from uninterrupted television news coverage and potential advertising cancellations due to war or terrorist acts; and the effects of the rapidly changing nature of the publishing, broadcasting and printing industries, including general business issues, competitive issues and the introduction of new technologies. 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 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission.

        Table No. 1 Journal Communications, Inc. Consolidated Statements of Operations (unaudited) (dollars in thousands, except for shares and per-share amounts)     Fourth Quarter (A) Four Quarters (B) 2013 2012 % Change 2013 2012 % Change     Revenue: Broadcasting $ 65,666 $ 75,545 (13.1 ) $ 243,432 $ 228,703 6.4 Publishing 41,841 46,680 (10.4 ) 154,558 164,947 (6.3 ) Corporate eliminations (141 ) (67 ) U (723 ) (532 ) 35.9 Total revenue 107,366 122,158 (12.1 ) 397,267 393,118 1.1   Operating costs and expenses: Broadcasting 30,195 28,122 7.4 118,985 98,492 20.8 Publishing 25,771 28,726 (10.3 ) 100,973 107,289 (5.9 ) Corporate eliminations (141 ) (67 ) U (721 ) (532 ) 35.5 Total operating costs and expenses 55,825 56,781 (1.7 ) 219,237 205,249 6.8   Selling and administrative expenses 31,617   39,030   (19.0 ) 126,714   129,138   (1.9 ) Total operating costs and expenses and selling and administrative expenses 87,442   95,811   (8.7 ) 345,951   334,387   3.5   Operating earnings 19,924 26,347 (24.4 ) 51,316 58,731 (12.6 )   Other income and (expense): Interest income - - N/A - 22 N/A Interest expense (1,777 ) (2,068 ) 14.1 (7,706 ) (4,483 ) (71.9 ) Other -   -   N/A (188 ) -   N/A Total other income and (expense) (1,777 ) (2,068 ) 14.1 (7,894 ) (4,461 ) (77.0 )   Earnings from continuing operations before income taxes 18,147 24,279 (25.3 ) 43,422 54,270 (20.0 )   Provision for income taxes 7,068   9,698   (27.1 ) 17,172   21,688   (20.8 )   Earnings from continuing operations 11,079 14,581 (24.0 ) 26,250 32,582 (19.4 )   Earnings from discontinued operations, net of tax 181   516   (64.9 ) (49 ) 743   U   Net earnings $ 11,260   $ 15,097   (25.4 ) $ 26,201   $ 33,325   (21.4 )   Weighted average number of shares-Class A and B common stock: Basic 50,345,141 50,010,586 50,259,276 50,091,223 Diluted 50,547,474 50,221,573 50,436,439 50,091,223   Weighted average number of shares-Class C common stock - - - 3,264,000 *   Earnings per share: Basic - Class A and B common stock: Continuing operations $ 0.22 $ 0.29 $ 0.52 $ 0.60 Discontinued operations -   0.01   -   0.01   Net earnings $ 0.22   $ 0.30   $ 0.52   $ 0.61     Diluted - Class A and B common stock: Continuing operations $ 0.22 $ 0.29 $ 0.52 $ 0.60 Discontinued operations -   0.01   -   0.01   Net earnings $ 0.22   $ 0.30   $ 0.52   $ 0.61     Basic and diluted - Class C common stock: Continuing operations $ - $ - $ - $ 0.73 Discontinued operations -   -   -   0.01   Net earnings $ -   $ -   $ -   $ 0.74       * The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.   (A) 2013 fourth quarter: September 30, 2013 to December 29, 2013 (13 weeks) 2012 fourth quarter: September 24, 2012 to December 30, 2012 (14 weeks) (B) 2013 four quarters: December 31, 2012 to December 29, 2013 (52 weeks) 2012 four quarters: December 26, 2011 to December 30, 2012 (53 weeks) U Greater than 100% unfavorable variance

            Table No. 2 Journal Communications, Inc. Segment Information (unaudited) (dollars in thousands)         Fourth Quarter (A) Four Quarters (B) 2013 2012 % Change 2013 2012 % Change Revenue Broadcasting $ 65,666 $ 75,545 (13.1 ) $ 243,432 $ 228,703 6.4 Publishing 41,841 46,680 (10.4 ) 154,558 164,947 (6.3 ) Corporate eliminations (141 ) (67 ) U (723 ) (532 ) (35.9 ) $ 107,366   $ 122,158   (12.1 ) $ 397,267   $ 393,118   1.1   Operating earnings (loss) Broadcasting $ 15,175 $ 22,538 (32.7 ) $ 45,412 $ 54,967 (17.4 ) Publishing 6,637 6,231 6.5 13,778 11,622 18.6 Corporate (1,888 ) (2,422 ) 22.0 (7,874 ) (7,858 ) (0.2 ) $ 19,924   $ 26,347   (24.4 ) $ 51,316   $ 58,731   (12.6 )   Depreciation and amortization Broadcasting $ 3,902 $ 3,287 18.7 $ 15,194 $ 12,201 24.5 Publishing 1,801 1,999 (9.9 ) 7,058 9,170 (23.0 ) Corporate 142   168   (15.5 ) 661   667   (0.9 ) $ 5,845   $ 5,454   7.2 $ 22,913   $ 22,038   4.0     (A) 2013 fourth quarter: September 30, 2013 to December 29, 2013 (13 weeks) 2012 fourth quarter: September 24, 2012 to December 30, 2012 (14 weeks) (B) 2013 four quarters: December 31, 2012 to December 29, 2013 (52 weeks) 2012 four quarters: December 26, 2011 to December 30, 2012 (53 weeks) U Greater than 100% unfavorable variance

                  Table No. 3 Journal Communications, Inc. Broadcasting and Publishing Segment Information (unaudited) (dollars in thousands)   Fourth Quarter of 2013 (A) Fourth Quarter of 2012 (B)   Broadcasting: % Change % Change % Change Television Radio Total Television Radio Total Television Radio Total     Revenue $ 45,139 $ 20,527 $ 65,666 $ 53,425 $ 22,120 $ 75,545 (15.5 ) (7.2 ) (13.1 )   Operating earnings $ 10,894 $ 4,281 $ 15,175 $ 18,871 $ 3,667 $ 22,538 (42.3 ) 16.7 (32.7 )     Publishing: Community Community Daily Newspapers Daily Newspapers % Change % Change % Change Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total Advertising revenue: Retail $ 16,944 $ 1,574 $ 18,518 $ 17,651 $ 3,141 $ 20,792 (4.0 ) (49.9 ) (10.9 ) Classified 3,163 426 3,589 3,538 619 4,157 (10.6 ) (31.2 ) (13.7 ) National 876 - 876 1,115 - 1,115 (21.4 ) - (21.4 ) Total advertising revenue 20,983 2,000 22,983 22,304 3,760 26,064 (5.9 ) (46.8 ) (11.8 ) Circulation revenue 12,630 317 12,947 13,714 450 14,164 (7.9 ) (29.6 ) (8.6 ) Other revenue 4,603 1,308 5,911 5,482 970 6,452 (16.0 ) 34.8 (8.4 ) Total revenue $ 38,216 $ 3,625 $ 41,841 $ 41,500 $ 5,180 $ 46,680 (7.9 ) (30.0 ) (10.4 )   Operating earnings $ 6,327 $ 310 $ 6,637 $ 6,198 $ 33 $ 6,231 2.1 F 6.5     Four Quarters of 2013 (C) Four Quarters of 2012 (D)   Broadcasting: % Change % Change % Change Television Radio Total Television Radio Total Television Radio Total     Revenue $ 166,616 $ 76,816 $ 243,432 $ 152,444 $ 76,259 $ 228,703 9.3 0.7 6.4   Operating earnings $ 31,395 $ 14,017 $ 45,412 $ 41,005 $ 13,962 $ 54,967 (23.4 ) 0.4 (17.4 )     Publishing: Community Community Daily Newspapers Daily Newspapers % Change % Change % Change Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total Advertising revenue: Retail $ 57,848 $ 6,170 $ 64,018 $ 56,657 $ 13,499 $ 70,156 2.1 (54.3 ) (8.7 ) Classified 12,933 1,835 14,768 13,985 2,692 16,677 (7.5 ) (31.8 ) (11.4 ) National 2,717 - 2,717 3,342 - 3,342 (18.7 ) N/A (18.7 ) Total advertising revenue 73,498 8,005 81,503 73,984 16,191 90,175 (0.7 ) (50.6 ) (9.6 ) Circulation revenue 48,845 1,290 50,135 51,245 1,789 53,034 (4.7 ) (27.9 ) (5.5 ) Other revenue 17,686 5,234 22,920 18,354 3,384 21,738 (3.6 ) 54.7 5.4 Total revenue $ 140,029 $ 14,529 $ 154,558 $ 143,583 $ 21,364 $ 164,947 (2.5 ) (32.0 ) (6.3 )   Operating earnings $ 12,824 $ 954 $ 13,778 $ 11,009 $ 613 $ 11,622 16.5 55.6 18.6     (A) 2013 fourth quarter: September 30, 2012 to December 29, 2013 (13 weeks) (B) 2012 fourth quarter: September 24, 2012 to December 30, 2012 (14 weeks) (C) 2013 four quarters: December 31, 2012 to December 29, 2013 (52 weeks) (D) 2012 four quarters: December 26, 2011 to December 30, 2012 (53 weeks) F Greater than 100% favorable variance   NOTE: Broadcasting and publishing segment information is provided to facilitate comparison of our broadcasting and publishing segments results with those of other broadcasting and publishing companies and is not representative of the overall business of Journal Communications or its operating results.

            Table No. 4 Journal Communications, Inc. Broadcasting and Publishing Non-GAAP Information (unaudited) (dollars in thousands)   Fourth Quarter   2012 As Additional 2013 Reported Week 2012 Adjusted % Change (13 weeks) (14 weeks) (13 weeks) Broadcasting: Television $ 45,139 $ 53,425 $ (1,980 ) $ 51,445 (12.3 ) Radio 20,527   22,120   (1,130 ) 20,990   (2.2 ) Total broadcasting revenue $ 65,666   $ 75,545   $ (3,110 ) $ 72,435   (9.3 )   Publishing: Daily Newspaper Advertising revenue: Retail $ 16,944 $ 17,651 $ (1,127 ) $ 16,524 2.5 Classified 3,163 3,538 (157 ) 3,381 (6.4 ) National 876   1,115   (37 ) 1,078   (18.7 ) Total advertising revenue 20,983 22,304 (1,321 ) 20,983 - Circulation revenue 12,630 13,714 (933 ) 12,781 (1.2 ) Other revenue 4,603   5,482   (312 ) 5,170   (11.0 ) Total daily newspaper revenue $ 38,216   $ 41,500   $ (2,566 ) $ 38,934   (1.8 )   Community Newspapers & Shoppers Advertising revenue: Retail $ 1,574 $ 3,141 $ (79 ) $ 3,062 (48.6 ) Classified 426   619   (23 ) 596   (28.5 ) Total advertising revenue 2,000 3,760 (102 ) 3,658 (45.3 ) Circulation revenue 317 450 (20 ) 430 (26.3 ) Other revenue 1,308   970   (88 ) 882   48.3 Total community newspapers and shoppers revenue $ 3,625   $ 5,180   $ (210 ) $ 4,970   (27.1 )   Total publishing revenue $ 41,841   $ 46,680   $ (2,776 ) $ 43,904   (4.7 )   Corporate eliminations $ (141 ) $ (67 ) $ - $ (67 ) U   Total revenue $ 107,366   $ 122,158   $ (5,886 ) $ 116,272   (7.7 )   Four Quarters 2012 As Additional 2013 Reported Week 2012 Adjusted % Change (52 weeks) (53 weeks) (52 weeks) Broadcasting: Television $ 166,616 $ 152,444 $ (1,980 ) $ 150,464 10.7 Radio 76,816   76,259   (1,130 ) 75,129   2.2 Total broadcasting revenue $ 243,432   $ 228,703   $ (3,110 ) $ 225,593   7.9   Publishing: Daily Newspaper Advertising revenue: Retail $ 57,848 $ 56,657 $ (1,127 ) $ 55,530 4.2 Classified 12,933 13,985 (157 ) 13,828 (6.5 ) National 2,717   3,342   (37 ) 3,305   (17.8 ) Total advertising revenue 73,498 73,984 (1,321 ) 72,663 1.1 Circulation revenue 48,845 51,245 (933 ) 50,312 (2.9 ) Other revenue 17,686   18,354   (312 ) 18,042   (2.0 ) Total daily newspaper revenue $ 140,029   $ 143,583   $ (2,566 ) $ 141,017   (0.7 )   Community Newspapers & Shoppers Advertising revenue: Retail $ 6,170 $ 13,499 $ (79 ) $ 13,420 (54.0 ) Classified $ 1,835   2,692   (23 ) 2,669   (31.2 ) Total advertising revenue 8,005 16,191 (102 ) 16,089 (50.2 ) Circulation revenue 1,290 1,789 (20 ) 1,769 (27.1 ) Other revenue 5,234   3,384   (88 ) 3,296   58.8 Total community newspapers and shoppers revenue $ 14,529   $ 21,364   $ (210 ) $ 21,154   (31.3 )   Total publishing revenue $ 154,558   $ 164,947   $ (2,776 ) $ 162,171   (4.7 )   Corporate eliminations $ (723 ) $ (532 ) $ - $ (532 ) (35.9 )   Total revenue $ 397,267   $ 393,118   $ (5,886 ) $ 387,232   2.6   U Greater than 100% unfavorable variance

  Table No. 5 Journal Communications, Inc. Reconciliation of consolidated net earnings to consolidated EBITDA and Adjusted EBITDA (unaudited) (dollars in thousands)       Fourth Quarter (A) Four Quarters (B) 2013 2012 2013 2012   Net earnings from continuing operations $ 11,079 $ 14,581 $ 26,250 $ 32,582 Provision for income taxes 7,068 9,698 17,172 21,688 Total other expense, net 1,777 2,068 7,894 4,461 Depreciation 5,136 5,036 20,058 20,590 Amortization 709 418 2,855 1,448 EBITDA $ 25,769 $ 31,801 $ 74,229 $ 80,769   Impairment of long-lived assets - - 238 493 Impairment of intangible assets - 1,616 - 1,616 Acquisition costs - 2,152 1,588 3,145 Workforce reduction charges 35 29 863 1,655 Adjusted EBITDA $ 25,804 $ 35,598 $ 76,918 $ 87,678     (A) 2013 fourth quarter: September 30, 2013 to December 29, 2013 (13 weeks) 2012 fourth quarter: September 24, 2012 to December 30, 2012 (14 weeks) (B) 2013 four quarters: December 31, 2012 to December 29, 2013 (52 weeks) 2012 four quarters: December 26, 2011 to December 30, 2012 (53 weeks)     We define EBITDA as net earnings excluding earnings from discontinued operations, net, provision for income taxes, total other expense (which is comprised of interest income and expense), depreciation, and amortization; and we define Adjusted EBITDA as EBITDA excluding non-cash impairment charges, acquisition, divestiture and integration-related costs, and workforce reduction charges. Our management uses EBITDA and Adjusted EBITDA, among other things, to evaluate our operating performance, and to value prospective acquisitions. EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with accounting principles generally accepted in the United States. EBITDA and Adjusted EBITDA should not be considered in isolation of, or as substitutes for, net earnings as indicators of operating performance or cash flows from operating activities as measures of liquidity. EBITDA and Adjusted EBITDA, as we calculate them, may not be comparable to EBITDA and Adjusted EBITDA reported by other companies.

          Table No. 6 Journal Communications, Inc. Calculation of Diluted Earnings Per Share - Class A and B (unaudited) (dollars and shares in thousands)   Fourth Quarter (A) Four Quarters (B) 2013 2012 2013 2012   Numerator for diluted earnings per share: Dividends on class A and B common stock $ - $ - $ - $ - Dividends on class C common stock - - - 1,146 Dividends on non-vested restricted stock - - - - Total undistributed earnings from continuing operations Class A and B 11,079 14,581 26,250 29,991 Class C - - - 1,233 Non-vested restricted stock - - - 212 Earnings from discontinued operations Class A and B 181 516 (49 ) 709 Class C - - - 29 Non-vested restricted stock - - -   5 Net earnings $ 11,260 $ 15,097 $ 26,201   $ 33,325 #   Denominator for diluted earnings per class A and B share: Weighted average shares outstanding - Class A and B 50,345 50,011 50,259 50,091 Impact of non-vested restricted shares 202 211 177 - Conversion of class C shares - - -   - Adjusted weighted average shares outstanding for class A and B 50,547 50,222 50,436   50,091   Diluted earnings per share of class A and B: Continuing operations $ 0.22 $ 0.29 $ 0.52 $ 0.60 Discontinued operations - 0.01 -   0.01 Net earnings $ 0.22 $ 0.30 $ 0.52   $ 0.61     # The two-class method of diluted earnings per share is only applicable for the four quarters of 2012, therefore undistributed earnings are allocated to stock other than class A and B.   (A) 2013 fourth quarter: September 30, 2013 to December 29, 2013 (13 weeks) 2012 fourth quarter: September 24, 2012 to December 30, 2012 (14 weeks) (B) 2013 four quarters: December 31, 2012 to December 29, 2013 (52 weeks) 2012 four quarters: December 26, 2011 to December 30, 2012 (53 weeks)

  Table No. 7 Journal Communications, Inc. Consolidated Condensed Balance Sheets (dollars in thousands)     December 29, December 30, 2013 2012 ASSETS Current assets: Cash and cash equivalents $ 1,912 $ 2,429 Receivables, net 66,670 64,161 Inventories, net 2,191 2,944 Prepaid expenses and other current assets 3,305 3,953 Syndicated programs 2,816 2,250 Deferred income taxes 2,508 3,032 Current assets of discontinued operations 6,281 7,550 Total current assets 85,683 86,319 Property and equipment, net 160,549 169,138 Syndicated programs 5,162 4,777 Goodwill 124,702 125,818 Broadcast licenses 135,166 129,566 Other intangible assets, net 57,763 60,618 Deferred income taxes 20,125 41,573 Other assets 6,101 7,994 Total assets $ 595,251 $ 625,803   LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 22,154 $ 26,743 Accrued compensation 9,134 10,618 Accrued employee benefits 4,865 5,155 Deferred revenue 15,459 16,208 Syndicated programs 2,247 2,521 Accrued income taxes 3,286 3,977 Other current liabilities 5,560 6,788 Current portion of unsecured subordinated notes payable 2,656 2,656 Current portion of long-term notes payable to banks 15,000 - Current portion of long-term liabilities 276 126 Current liabilities of discontinued operations 118 737 Total current liabilities 80,755 75,529 Accrued employee benefits 64,541 92,907 Syndicated programs 5,741 5,001 Long-term notes payable to banks 179,950 230,095 Unsecured subordinated notes payable 10,623 13,279 Other long-term liabilities 3,554 3,491 Shareholders' equity 250,087 205,501 Total liabilities and equity $ 595,251 $ 625,803

CONTACT:Journal Communications, Inc.Andre FernandezPresident and Chief Financial Officer414-224-2884

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Journal Communications next reports earnings on March 04, 2014.

To receive a free e-mail notification whenever Journal Communications makes a similar move, sign up!

Other recent filings from the company include the following:

Journal Communications director was just granted 1,755 ownership of the company. - Oct. 16, 2014
Prospectuses and communications, business combinations - Oct. 10, 2014
Prospectuses and communications, business combinations - Oct. 6, 2014

   Auto Refresh

Feedback