MILWAUKEE--(BUSINESS WIRE)--Journal Communications, Inc. (NYSE:JRN) today announced results for its second quarter ended June 24, 2012.
“Journal Communications had a strong second quarter with operating earnings up 17% driven by political and issue advertising and a continuing recovery in many of our local broadcast markets,” said Steven Smith, Chairman of the Board and Chief Executive Officer of Journal Communications. “We continued to pursue our JS Everywhere strategy, launching a new Milwaukee Journal Sentinel iPad app in May. We were pleased to close on the purchase of our two new radio stations at the beginning of the third quarter for $11.7 million, creating a strong cluster in Tulsa Oklahoma. While we expect to continue to actively pursue growth opportunities in broadcast, we also expect to use our cash to pay debt and repurchase shares.”
Second Quarter 2012 Results
Note that unless otherwise indicated, all comparisons are to the second quarter ended June 26, 2011.
For the second quarter, revenue of $95.5 million increased 6.0% compared to $90.1 million. Operating earnings of $13.5 million increased 17.1% compared to $11.5 million. Net earnings were $7.6 million compared to $6.1 million.
In the second quarter, basic and diluted net earnings per share of class A and B common stock were $0.13, or $0.14 excluding a $1.0 million pre-tax publishing workforce reduction charge, compared to $0.10.
The operating margin was 14.1% for the second quarter compared to 12.8%. EBITDA (net earnings (loss) excluding the earnings/loss from discontinued operations, net; total other expense, net; provision (benefit) for income taxes; depreciation; amortization; and, if any, non-cash impairment charges) was $19.4 million compared to $17.3 million, an increase of 11.7%.
Consolidated and Segment Results
The following table presents revenue and operating earnings (loss) by segment for the second quarter of 2012 and 2011 (dollars in millions).
| 2Q | 2Q | ||||||||
| 2012 | 2011 | % Change | |||||||
| Revenue: | |||||||||
| Broadcasting | $ 54.5 | $ 46.1 | 18.4 | ||||||
| Publishing | 41.1 | 44.1 | (6.9 | ) | |||||
| Corporate eliminations | (0.1 | ) | (0.1 | ) | 12.0 | ||||
| Total Revenue | $ 95.5 | $ 90.1 | 6.0 | ||||||
| Operating earnings (loss): | |||||||||
| Broadcasting | $ 13.1 | $ 8.3 | 57.4 | ||||||
| Publishing | 2.4 | 5.4 | (54.9 | ) | |||||
| Corporate | (2.0 | ) | (2.2 | ) | 5.4 | ||||
| Total operating earnings | $ 13.5 | $ 11.5 | 17.1 | ||||||
For the second quarter, total expenses of $82.0 million increased 4.4% compared to $78.6 million.
Broadcasting
For the second quarter, broadcasting revenue increased 18.4% to $54.5 million compared to $46.1 million. Total broadcast political and issue advertising revenue was $5.7 million compared to $0.9 million. Core broadcast revenue, excluding political and issue advertising revenue, increased 8.1% to $48.8 million compared to $45.2 million. Core local and core national advertising revenue increased 2.8% and 23.0%, respectively, primarily due to an increase in automotive advertising. Retransmission revenue was $2.8 million compared to $2.1 million. Broadcasting operating earnings of $13.1 million increased 57.4% compared to $8.3 million.
Revenue from television stations for the second quarter increased 22.5% to $35.1 million compared to $28.7 million. Excluding political and issue advertising revenue of $5.2 million in 2012 and $0.7 million in 2011, revenue from television stations increased 7.1%. Core local advertising revenue decreased 2.2% primarily due to a decrease in medical and communications advertising and the impact of political and issue advertising displacement of available local advertising spots. Core national advertising revenue increased 26.2% primarily due to an increase in automotive and supermarket advertising. Operating earnings were $8.7 million compared to $4.3 million, an increase of 100.5%. Television operating expenses increased 8.6% primarily due to increases in employee related expenses and network fees.
For the second quarter, revenue from radio stations increased 11.5% to $19.4 million from $17.4 million, or 6.7% excluding $0.8 million of revenue from the local marketing agreement (LMA) for two Tulsa radio stations acquired early in the third quarter. Excluding political and issue advertising revenue of $0.5 million in 2012 and $0.2 million in 2011, revenue from radio stations on a same-station basis increased 4.8%. Core local revenue increased 9.5% or 4.6% on a same-station basis primarily due to an increase in automotive advertising. Core national revenue increased 12.8% or 7.1% on a same station basis primarily due to an increase in media and other services advertising. Operating earnings from radio stations were $4.4 million compared to $4.0 million, an increase of 10.7%, or 8.5% excluding $0.1 million related to the Tulsa LMA. Radio operating expenses increased 11.8% or 6.1% on a same station basis, primarily due to increases in employee related expenses and new Tulsa radio station transaction and LMA costs.
Publishing
For the second quarter, publishing revenue decreased 6.9% to $41.1 million compared to $44.1 million, largely due to continued decreases in the classified, national and retail advertising categories. Operating earnings from publishing were $2.4 million compared to $5.4 million, a decrease of 54.9%. Total newsprint and paper expense in publishing was $4.2 million compared to $4.5 million, a 5.2% decrease, primarily due to a reduction in newsprint consumption.
Revenue at the daily newspaper for the second quarter decreased 4.1% to $35.2 million compared to $36.7 million. Retail advertising revenue decreased 2.1%. Classified advertising revenue decreased 20.7% driven primarily by a decrease in the auto and employment categories. Digital advertising revenue of $3.0 million was up 1.1%, primarily due to an increase in sponsorships and other digital advertising revenue that was largely off-set by declines in classified digital advertising revenue. Circulation revenue of $12.6 million increased 3.0% driven by rate increases that more than off-set circulation volume declines. Other revenue of $4.0 million, which primarily consists of commercial printing and commercial delivery, was down 2.9%. Operating earnings from the daily newspaper were $2.0 million compared to $4.3 million, a decrease of 53.5%. Excluding $1.0 million in workforce reduction charges recorded this quarter, operating earnings would have decreased 29.5%. Daily newspaper operating expenses increased 2.4%, primarily due to $1.0 million in workforce reduction charges. Excluding workforce reduction charges, daily newspaper operating expenses declined 0.7%.
Community newspapers and shoppers revenue for the second quarter decreased 21.2% to $5.8 million compared to $7.4 million. Excluding revenue of $1.1 million related to Florida operations sold in 2011, revenue decreased 7.4%. Operating earnings from community newspapers and shoppers was $0.4 million compared to $1.1 million, a decrease of 60.4%. Excluding Florida operating earnings of $0.3 million in 2011, operating earnings of $0.4 million would have declined 45.1%. Operating expenses were down 14.5% or 2.0% lower excluding $0.8 million of Florida related expenses. The decrease in operating expenses was primarily due to employee expense savings resulting from previous workforce reductions and lower operating costs associated with lower revenue.
Corporate
The operating loss for the second quarter was $2.0 million compared to $2.2 million.
Non-Operating Items
For the second quarter, other expense, which primarily consists of interest expense, was $0.7 million compared to $0.9 million. The decrease in interest expense reflects a decrease in average borrowing levels for the quarter.
The second quarter effective tax rate was 40.5% compared to 42.0%. The lower effective tax rate in 2012 is due to a write-off of a state deferred tax asset in 2011.
Notes Payable to Banks and Cash Flows
At the end of the second quarter, our notes payable to banks were $21.4 million. During the first half of 2012, we reduced our notes payable to banks by $19.9 million as compared to the 2011 year-end. At the end of the second quarter, our consolidated funded debt ratio, as defined in our credit agreement, was 0.30-to-1. Year-to-date cash from operating activities was $27.2 million compared to $17.5 million. Year-to-date cash from operating activities has increased primarily due to lower income tax and management incentive compensation payments in 2012 and an increase in net earnings. Year-to-date capital expenditures were $5.1 million compared to $5.4 million.
Stock Repurchase Program
In July 2011, the Board of Directors authorized a share repurchase program of up to $45.0 million of outstanding class A common stock and/or class B common stock until the end of fiscal 2013. During the second quarter and year-to-date 2012, the Company repurchased 132,589 and 709,604, respectively, of its class A shares for $0.6 million and $3.5 million, respectively. From July 2011 through June 24, 2012, the Company has repurchased a total of 1,810,299 class A shares for $7.6 million.
Third Quarter 2012 Outlook
For the third quarter of 2012, we anticipate broadcast revenue to increase in the low-double digits, compared to the prior year, driven by an improving economy, higher political and issue advertising revenue in key states and Olympic revenue at our NBC-affiliated television stations. We anticipate publishing revenue to decline in the mid-single digits, compared to the prior year, excluding revenue from the Florida community newspaper operations sold in 2011, reflecting continued challenges with publishing advertising revenue.
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 (866) 510-0711 (domestic) or (617) 597-5379 (international) at least 10 minutes prior to the scheduled start of the call. The access code for the conference call is 66961173. A live webcast of the second quarter conference call will be accessible through the Journal Communications’ website at 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 2, 2012. Replays of the conference call will also be available through August 2, 2012. 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 80216657.
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 radio and television broadcasting, publishing and interactive media. We own and operate or provide programming and sales services to 35 radio stations and 14 television stations in 12 states. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and community newspapers and shoppers in Wisconsin. Our interactive media assets build on our strong publishing and broadcast brands.
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) | |||||||||||||||||
| 2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||
| Revenue: | ||||||||||||||||||
| Broadcasting | $ 54,542 | $ 46,083 | 18.4 | $ 98,916 | $ 88,192 | 12.2 | ||||||||||||
| Publishing | 41,053 | 44,119 | (6.9 | ) | 79,074 | 85,919 | (8.0 | ) | ||||||||||
| Corporate eliminations | (88 | ) | (100 | ) | 12.0 | (217 | ) | (148 | ) | (46.6 | ) | |||||||
| Total revenue | 95,507 | 90,102 | 6.0 | 177,773 | 173,963 | 2.2 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Broadcasting | 22,970 | 22,069 | 4.1 | 45,396 | 44,004 | 3.2 | ||||||||||||
| Publishing | 26,354 | 27,273 | (3.4 | ) | 52,506 | 54,918 | (4.4 | ) | ||||||||||
| Corporate eliminations | (88 | ) | (100 | ) | 12.0 | (217 | ) | (148 | ) | (46.6 | ) | |||||||
| Total operating costs and expenses | 49,236 | 49,242 | (0.0 | ) | 97,685 | 98,774 | (1.1 | ) | ||||||||||
| Selling and administrative expenses | 32,811 | 29,369 | 11.7 | 60,888 | 57,690 | 5.5 | ||||||||||||
| Total operating costs and expenses | ||||||||||||||||||
| and selling and administrative | ||||||||||||||||||
| expenses | 82,047 | 78,611 | 4.4 | 158,573 | 156,464 | 1.3 | ||||||||||||
| Operating earnings | 13,460 | 11,491 | 17.1 | 19,200 | 17,499 | 9.7 | ||||||||||||
| Other income and (expense): | ||||||||||||||||||
| Interest income | 6 | 20 | 11 | 38 | ||||||||||||||
| Interest expense | (684 | ) | (928 | ) | (1,417 | ) | (2,008 | ) | ||||||||||
| Total other income and (expense) | (678 | ) | (908 | ) | (25.3 | ) | (1,406 | ) | (1,970 | ) | (28.6 | ) | ||||||
| Earnings from continuing operations before income taxes | 12,782 | 10,583 | 20.8 | 17,794 | 15,529 | 14.6 | ||||||||||||
| Provision for income taxes | 5,171 | 4,442 | 16.4 | 7,264 | 6,354 | 14.3 | ||||||||||||
| Earnings from continuing operations | 7,611 | 6,141 | 23.9 | 10,530 | 9,175 | 14.8 | ||||||||||||
| Earnings from discontinued operations, net of tax | - | - | N/A | - | 341 | N/A | ||||||||||||
| Net earnings | $ 7,611 | $ 6,141 | 23.9 | $ 10,530 | $ 9,516 | 10.7 | ||||||||||||
| Weighted average number of shares-Class A and B common stock: | ||||||||||||||||||
| Basic and diluted | 50,022,960 | 51,317,915 | 50,189,905 | 51,222,118 | ||||||||||||||
| Weighted average number of shares-Class C common stock | 3,264,000 | 3,264,000 | 3,264,000 | 3,264,000 | ||||||||||||||
| Earnings per share: | ||||||||||||||||||
| Basic - Class A and B common stock: | ||||||||||||||||||
| Continuing operations | $ 0.13 | $ 0.10 | $ 0.18 | $ 0.15 | ||||||||||||||
| Discontinued operations | - | - | - | 0.01 | ||||||||||||||
| Net earnings | $ 0.13 | $ 0.10 | $ 0.18 | $ 0.16 | ||||||||||||||
| Diluted - Class A and B common stock: | ||||||||||||||||||
| Continuing operations | $ 0.13 | $ 0.10 | $ 0.18 | $ 0.15 | ||||||||||||||
| Discontinued operations | - | - | - | 0.01 | ||||||||||||||
| Net earnings | $ 0.13 | $ 0.10 | $ 0.18 | $ 0.16 | ||||||||||||||
| Basic and diluted - Class C common stock: | ||||||||||||||||||
| Continuing operations | $ 0.28 | $ 0.24 | $ 0.46 | $ 0.43 | ||||||||||||||
| Discontinued operations | - | - | - | 0.01 | ||||||||||||||
| Net earnings | $ 0.28 | $ 0.24 | $ 0.46 | $ 0.44 | ||||||||||||||
| (A) 2012 second quarter: March 26, 2012 to June 24, 2012 | ||||||||||||||||||
| 2011 second quarter: March 28, 2011 to June 26, 2011 | ||||||||||||||||||
| (B) 2012 two quarters: December 26, 2011 to June 24, 2012 | ||||||||||||||||||
| 2011 two quarters: December 27, 2010 to June 26, 2011 | ||||||||||||||||||
| Journal Communications, Inc. | ||||||||||||||||||
| Segment Information (unaudited) | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| Second Quarter (A) | Two Quarters (B) | |||||||||||||||||
| 2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||
|
Revenue |
||||||||||||||||||
| Broadcasting | $ 54,542 | $ 46,083 | 18.4 | $ 98,916 | $ 88,192 | 12.2 | ||||||||||||
| Publishing | 41,053 | 44,119 | (6.9 | ) | 79,074 | 85,919 | (8.0 | ) | ||||||||||
| Corporate eliminations | (88 | ) | (100 | ) | 12.0 | (217 | ) | (148 | ) | (46.6 | ) | |||||||
| $ 95,507 | $ 90,102 | 6.0 | $ 177,773 | $ 173,963 | 2.2 | |||||||||||||
|
Operating earnings (loss) |
||||||||||||||||||
| Broadcasting | $ 13,129 | $ 8,343 | 57.4 | $ 19,838 | $ 14,318 | 38.6 | ||||||||||||
| Publishing | 2,413 | 5,347 | (54.9 | ) | 3,157 | 7,172 | (56.0 | ) | ||||||||||
| Corporate | (2,082 | ) | (2,199 | ) | 5.3 | (3,795 | ) | (3,991 | ) | 4.9 | ||||||||
| $ 13,460 | $ 11,491 | 17.1 | $ 19,200 | $ 17,499 | 9.7 | |||||||||||||
|
Depreciation and amortization |
||||||||||||||||||
| Broadcasting | $ 3,293 | $ 3,049 | 8.0 | $ 6,377 | $ 6,015 | 6.0 | ||||||||||||
| Publishing | 2,434 | 2,624 | (7.2 | ) | 4,906 | 5,256 | (6.7 | ) | ||||||||||
| Corporate | 166 | 155 | 7.1 | 331 | 301 | 10.0 | ||||||||||||
| $ 5,893 | $ 5,828 | 1.1 | $ 11,614 | $ 11,572 | 0.4 | |||||||||||||
| (A) 2012 second quarter: March 26, 2012 to June 24, 2012 | ||||||||||||||||||
| 2011 second quarter: March 28, 2011 to June 26, 2011 | ||||||||||||||||||
| (B) 2012 two quarters: December 26, 2011 to June 24, 2012 | ||||||||||||||||||
| 2011 two quarters: December 27, 2010 to June 26, 2011 | ||||||||||||||||||
| Journal Communications, Inc. | ||||||||||||||||||||||
| Publishing and Broadcasting Segment Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Second Quarter of 2012 (A) | Second Quarter of 2011 (B) | |||||||||||||||||||||
|
Broadcasting: |
% Change | % Change | % Change | |||||||||||||||||||
| Television | Radio | Total | Television | Radio | Total | Television | Radio | Total | ||||||||||||||
| Revenue | $ 35,138 | $ 19,404 | $ 54,542 | $ 28,682 | $ 17,401 | $ 46,083 | 22.5 | 11.5 | 18.4 | |||||||||||||
| Operating earnings | $ 8,698 | $ 4,431 | $ 13,129 | $ 4,339 | $ 4,004 | $ 8,343 | 100.5 | 10.7 | 57.4 | |||||||||||||
|
Publishing: |
Community | Community | ||||||||||||||||||||
| Daily | Newspapers | Daily | Newspapers | % Change | % Change | % Change | ||||||||||||||||
| Newspaper | & Shoppers | Total | Newspaper | & Shoppers | Total | Daily | CN&S | Total | ||||||||||||||
| Advertising revenue: | ||||||||||||||||||||||
| Retail | $ 14,302 | $ 3,784 | $ 18,086 | $ 14,614 | $ 5,158 | $ 19,772 | (2.1 | ) | (26.6 | ) | (8.5 | ) | ||||||||||
| Classified | 3,536 | 764 | 4,300 | 4,458 | 1,004 | 5,462 | (20.7 | ) | (23.9 | ) | (21.3 | ) | ||||||||||
| National | 768 | - | 768 | 1,255 | - | 1,255 | (38.8 | ) | N/A | (38.8 | ) | |||||||||||
| Direct Marketing | 9 | - | 9 | 18 | - | 18 | (50.0 | ) | N/A | (50.0 | ) | |||||||||||
| Total advertising revenue | 18,615 | 4,548 | 23,163 | 20,345 | 6,162 | 26,507 | (8.5 | ) | (26.2 | ) | (12.6 | ) | ||||||||||
| Circulation revenue | 12,574 | 448 | 13,022 | 12,213 | 439 | 12,652 | 3.0 | 2.1 | 2.9 | |||||||||||||
| Other revenue | 4,024 | 844 | 4,868 | 4,146 | 814 | 4,960 | (2.9 | ) | 3.7 | (1.9 | ) | |||||||||||
| Total revenue | $ 35,213 | $ 5,840 | $ 41,053 | $ 36,704 | $ 7,415 | $ 44,119 | (4.1 | ) | (21.2 | ) | (6.9 | ) | ||||||||||
| Operating earnings | $ 1,979 | $ 434 | $ 2,413 | $ 4,252 | $ 1,095 | $ 5,347 | (53.5 | ) | (60.4 | ) | (54.9 | ) | ||||||||||
| Two Quarters of 2012 (C) | Two Quarters of 2011 (C) | |||||||||||||||||||||
|
Broadcasting: |
% Change | % Change | % Change | |||||||||||||||||||
| Television | Radio | Total | Television | Radio | Total | Television | Radio | Total | ||||||||||||||
| Revenue | $ 64,641 | $ 34,275 | $ 98,916 | $ 56,139 | $ 32,053 | $ 88,192 | 15.1 | 6.9 | 12.2 | |||||||||||||
| Operating earnings | $ 12,549 | $ 7,289 | $ 19,838 | $ 8,102 | $ 6,216 | $ 14,318 | 54.9 | 17.3 | 38.6 | |||||||||||||
|
Publishing: |
Community | Community | ||||||||||||||||||||
| Daily | Newspapers | Daily | Newspapers | % Change | % Change | % Change | ||||||||||||||||
| Newspaper | & Shoppers | Total | Newspaper | & Shoppers | Total | Daily | CN&S | Total | ||||||||||||||
| Advertising revenue: | ||||||||||||||||||||||
| Retail | $ 25,981 | $ 6,949 | $ 32,930 | $ 27,451 | $ 9,564 | $ 37,015 | (5.4 | ) | (27.3 | ) | (11.0 | ) | ||||||||||
| Classified | 7,116 | 1,363 | 8,479 | 8,776 | 1,805 | 10,581 | (18.9 | ) | (24.5 | ) | (19.9 | ) | ||||||||||
| National | 1,567 | - | 1,567 | 2,374 | - | 2,374 | (34.0 | ) | N/A | (34.0 | ) | |||||||||||
| Direct Marketing | 27 | - | 27 | 63 | - | 63 | (57.1 | ) | N/A | (57.1 | ) | |||||||||||
| Total advertising revenue | 34,691 | 8,312 | 43,003 | 38,664 | 11,369 | 50,033 | (10.3 | ) | (26.9 | ) | (14.1 | ) | ||||||||||
| Circulation revenue | 24,854 | 880 | 25,734 | 24,742 | 878 | 25,620 | 0.5 | 0.2 | 0.4 | |||||||||||||
| Other revenue | 8,680 | 1,657 | 10,337 | 8,659 | 1,607 | 10,266 | 0.2 | 3.1 | 0.7 | |||||||||||||
| Total revenue | $ 68,225 | $ 10,849 | $ 79,074 | $ 72,065 | $ 13,854 | $ 85,919 | (5.3 | ) | (21.7 | ) | (8.0 | ) | ||||||||||
| Operating earnings | $ 2,848 | $ 309 | $ 3,157 | $ 6,231 | $ 941 | $ 7,172 | (54.3 | ) | (67.2 | ) | (56.0 | ) | ||||||||||
| (A) 2012 second quarter: March 26, 2012 to June 24, 2012 | ||||||||||||||||||||||
| (B) 2011 second quarter: March 28, 2011 to June 26, 2011 | ||||||||||||||||||||||
| (C) 2012 two quarters: December 26, 2011 to June 24, 2012 | ||||||||||||||||||||||
| (D) 2011 two quarters: December 27, 2010 to June 26, 2011 | ||||||||||||||||||||||
|
|
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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 to consolidated EBITDA (unaudited) | |||||||||
| (dollars in thousands) | |||||||||
| Second Quarter (A) | Two Quarters (B) | ||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||
| Net earnings | $ 7,611 | $ 6,141 | $ 10,530 | $ 9,516 | |||||
| Earnings from discontinued operations, net | - | - | - | (341 | ) | ||||
| Provision for income taxes | 5,171 | 4,442 | 7,264 | 6,354 | |||||
| Total other expense, net | 678 | 908 | 1,406 | 1,970 | |||||
| Depreciation | 5,325 | 5,436 | 10,665 | 10,788 | |||||
| Amortization | 568 | 392 | 949 | 784 | |||||
| EBITDA | $ 19,353 | $ 17,319 | $ 30,814 | $ 29,071 | |||||
| (A) 2012 second quarter: March 26, 2012 to June 24, 2012 | |||||||||
| 2011 second quarter: March 28, 2011 to June 26, 2011 | |||||||||
| (B) 2012 two quarters: December 26, 2011 to June 24, 2012 | |||||||||
| 2011 two quarters: December 27, 2010 to June 26, 2011 | |||||||||
|
|
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We define EBITDA as net earnings (loss) excluding earnings/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 and shares in thousands) | ||||||||||
| Second Quarter (A) | Two Quarters (B) | |||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||
| Numerator for diluted earnings per share: | ||||||||||
| Dividends on class A and B common stock | $ - | * | $ - | * | $ - | * | $ - | * | ||
| Dividends on class C common stock | 464 | 464 | 928 | 928 | ||||||
| Dividends on non-vested restricted stock | - | - | - | - | ||||||
| Total undistributed earnings from continuing operations | ||||||||||
| Class A and B | 6,670 | * | 5,269 | * | 8,946 | * | 7,650 | * | ||
| Class C | 435 | 335 | 581 | 487 | ||||||
| Non-vested restricted stock | 42 | 73 | 75 | 110 | ||||||
| Earnings from discontinued operations | ||||||||||
| Class A and B | - | - | - | 316 | ||||||
| Class C | - | - | - | 20 | ||||||
| Non-vested restricted stock | - | - | - | 5 | ||||||
| Net earnings | $ 7,611 | $ 6,141 | $ 10,530 | $ 9,516 | ||||||
| Denominator for diluted earnings per class A and B share: | ||||||||||
| Weighted average shares outstanding - Class A and B | 50,023 | 51,318 | 50,190 | 51,222 | ||||||
| Impact of non-vested restricted shares | - | - | - | - | ||||||
| Conversion of class C shares | - | - | - | - | ||||||
| Adjusted weighted average shares outstanding for class A and B | 50,023 | * | 51,318 | * | 50,190 | * | 51,222 | * | ||
| Diluted earnings per share of class A and B: | ||||||||||
| Continuing operations | $ 0.13 | * | $ 0.10 | * | $ 0.18 | * | $ 0.15 | * | ||
| Discontinued operations | - | - | - | 0.01 | ||||||
| Net earnings | $ 0.13 | $ 0.10 | $ 0.18 | $ 0.16 | ||||||
| * Included in calculation of diluted earnings per share from continuing operations - class A and B | ||||||||||
| (A) 2012 second quarter: March 26, 2012 to June 24, 2012 | ||||||||||
| 2011 second quarter: March 28, 2011 to June 26, 2011 | ||||||||||
| (B) 2012 two quarters: December 26, 2011 to June 24, 2012 | ||||||||||
| 2011 two quarters: December 27, 2010 to June 26, 2011 | ||||||||||
| Journal Communications, Inc. | ||||
| Consolidated Condensed Balance Sheets | ||||
| (dollars in thousands) | ||||
| June 24, | ||||
| 2012 | December 25, | |||
| (unaudited) | 2011 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 2,251 | $ 2,418 | ||
| Investments of variable interest entity | 500 | 500 | ||
| Receivables, net | 54,779 | 56,695 | ||
| Inventories, net | 2,836 | 1,766 | ||
| Prepaid expenses and other current assets | 4,653 | 3,877 | ||
| Syndicated programs | 2,369 | 2,822 | ||
| Deferred income taxes | 3,033 | 3,593 | ||
| Total current assets | 70,421 | 71,671 | ||
| Property and equipment, net | 162,589 | 168,200 | ||
| Syndicated programs | 4,270 | 4,457 | ||
| Goodwill | 8,670 | 8,670 | ||
| Broadcast licenses | 81,547 | 81,547 | ||
| Other intangible assets, net | 20,451 | 21,400 | ||
| Deferred income taxes | 51,934 | 57,236 | ||
| Other assets | 4,124 | 4,544 | ||
| Total assets | $ 404,006 | $ 417,725 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ 21,467 | $ 20,516 | ||
| Accrued compensation | 11,505 | 11,888 | ||
| Accrued employee benefits | 6,634 | 6,217 | ||
| Deferred revenue | 15,796 | 14,662 | ||
| Syndicated programs | 2,799 | 3,436 | ||
| Accrued income taxes | 1,767 | 2,740 | ||
| Other current liabilities | 6,483 | 6,093 | ||
| Current portion of long-term liabilities | 239 | 382 | ||
| Total current liabilities | 66,690 | 65,934 | ||
| Accrued employee benefits | 87,823 | 90,176 | ||
| Syndicated programs | 4,740 | 5,527 | ||
| Long-term notes payable to banks | 21,360 | 41,305 | ||
| Other long-term liabilities | 9,558 | 8,595 | ||
| Shareholders' equity | 212,671 | 205,024 | ||
| Noncontrolling interest | 1,164 | 1,164 | ||
| Total liabilities and equity | $ 404,006 | $ 417,725 | ||