For more information:
Sara Leuchter Wilkins
Director of Investor Relations
414-224-2633
swilkins@journalcommunications.com
Journal Communications Reports Fourth Quarter and Full Year 2004 Results
MILWAUKEE, WI – February 3, 2005 – Journal Communications (NYSE:JRN) today announced financial results for its fourth quarter and full year ended December 26, 2004. For the quarter ended December 26, 2004, net earnings increased 10.8% to $22.7 million compared to $20.5 million for the quarter ended December 31, 2003. In the fourth quarter of 2004, Journal Communications recorded a $2.2 million gain on the sale of properties, net of tax and a $0.6 million charge for voluntary terminations, net of tax. For the quarter ended December 26, 2004, revenue increased 2.7% to $215.6 million compared to $209.9 million for the quarter ended December 31, 2003. Note that the fourth quarter 2004 contained 91 days while the fourth quarter 2003 contained 94 days.
For the full year ended December 26, 2004, net earnings of $78.5 million were up 17.5% compared to $66.8 million for the full year 2003. For the full year ended December 26, 2004, revenue of $820.8 million increased 2.8% compared to $798.3 million for the full year 2003.
For both the fourth quarter and full year 2004, results include the operations of NorthStar Print Group, Inc., the label manufacturing subsidiary of Journal Communications, which was sold on January 25, 2005.
“In the fourth quarter and throughout the full year 2004, Journal Communications recorded broad-based advertising growth at our television and radio stations and our daily newspaper,” said Steven J. Smith, chairman and chief executive officer. “During this period we also enhanced our operating performance and expanded margins.”
Smith added, “As we move into 2005, we anticipate further margin expansion at our publishing group. At our broadcasting group, we see continued improvement at developmental markets in both radio and television and tougher comparisons at our television stations due to an off-cycle year in political and Olympics. At Norlight, we expect ongoing declines in wholesale revenue partially offset by growth in the enterprise business. Additionally, we have significantly reduced our debt and strengthened our balance sheet to allow us to pursue our acquisition strategy.”
Costs and Expenses
For the quarter ended December 26, 2004, costs and expenses of $177.1 million were basically flat compared to $175.7 million for the fourth quarter last year. For the full year 2004, costs and expenses of $688.0 million were basically flat compared to $684.9 million for the prior year.
Operating Earnings
For the quarter ended December 26, 2004, operating earnings increased 12.6% to $38.5 million compared to $34.2 million for the fourth quarter of 2003. The increase is primarily due to a $3.6 million pre-tax gain on the sale of properties and increased revenues at our advertising-based businesses, partially offset by a $1.0 million charge for voluntary terminations. For the fourth quarter of 2004, operating earnings margin was 17.9% compared to 16.3% for the fourth quarter of 2003.
For the full year 2004, operating earnings of $132.8 million increased 17.1% compared to $113.4 million for the prior year. Operating earnings margin for the full year 2004 was 16.2% compared to 14.2% for the full year 2003.
Earnings per Share
For the quarter ended December 26, 2004, basic and diluted earnings per share were $0.31 and $0.30, respectively, compared to basic and diluted earnings per share of $0.25 and $0.24, respectively, for the fourth quarter of 2003. For the full year 2004, basic and diluted earnings per share were $1.05 and $1.01, respectively, compared to basic and diluted earnings per share of $0.84 and $0.80, respectively, for the full year 2003.
EBITDA
For the quarter ended December 26, 2004, EBITDA (net earnings plus total other income and expense, provision for income taxes, depreciation and amortization) of $50.9 million increased 8.3% compared to $47.0 million for the fourth quarter of 2003. For the full year 2004, EBITDA was $179.4 million, an increase of 10.7% compared to $162.0 million for the prior year.
Operating Cash Flow
For the quarter ended December 26, 2004, operating cash flow (cash provided by operating activities) increased 26.7% to $38.0 million compared to $30.0 million for the fourth quarter of 2003. For the full year 2004, operating cash flow increased 4.2% to $133.9 million compared to $128.5 million for the prior year.
Publishing
Publishing revenue for the quarter ended December 26, 2004, increased 1.8% to $85.9 million from $84.4 million for the fourth quarter of 2003. For the full year 2004, publishing revenue increased 3.4% to $327.7 million compared to $317.0 million for the prior year.
Operating earnings from publishing for the quarter ended December 26, 2004, decreased 2.7% to $11.1 million compared to $11.4 million for the fourth quarter of 2003, due in part to a $1.0 million charge for voluntary terminations at the daily newspaper. For the full year 2004, operating earnings from publishing increased 31.7% to $43.7 million from $33.2 million for the prior year. The increase is primarily attributed to stronger advertising revenue and cost reduction initiatives at the daily newspaper as well as cost savings from the structural reorganization of our community newspapers and shoppers operations. In 2004, total newsprint cost increased $3.2 million to $43.1 million.
2
Broadcasting
Broadcasting revenue for the quarter ended December 26, 2004, increased 21.0% to $51.2 million compared to $42.3 million for the fourth quarter of 2003. Broadcasting operating earnings for the quarter ended December 26, 2004, increased 33.4% to $15.0 million compared to $11.2 million for the fourth quarter of 2003. This growth was driven by strong political advertising for both radio and television and an increase in local advertising in a number of our television and radio markets.
For the full year 2004, broadcasting revenue increased 14.1% to $172.1 million from $150.7 million for the full year 2003. Operating earnings grew 48.6% to $44.4 million for the full year 2004 from $29.9 million for the prior year, reflecting our focus on serving audiences and advertisers in our local markets as well as strong contributions from political and Olympics advertising in the second half of the year. In 2004, Olympics revenue approximated $2.5 million and political and issue advertising for radio and television totaled $1.3 million and $12.6 million, respectively.
For the quarter ended December 26, 2004, revenue from radio stations increased 7.0% to $23.3 million from $21.8 million for the quarter ended December 31, 2003. For the quarter ended December 26, 2004, operating earnings from radio stations decreased 2.8% to $5.8 million compared to $6.0 million for the fourth quarter of 2003, due in part to increased promotional expense. For the full year 2004, revenue from radio stations was $82.3 million, an increase of 5.6% compared to $77.9 million for the prior year. For the full year 2004, operating earnings from radio stations increased 18.4% to $19.8 million compared to $16.8 million for the prior year. For the quarter ended December 26, 2004, revenue from television stations increased 35.8% to $27.9 million, including $2.8 million from the Green Bay television operations that were acquired on October 6, 2004. This compares to revenue of $20.5 million for the quarter ended December 31, 2003. For the fourth quarter 2004, operating earnings from television stations increased 74.9% to $9.2 million, including $0.7 million from the Green Bay operations. This compares to operating earnings of $5.2 million for the fourth quarter of 2003.
For the full year 2004, revenue from television stations increased 23.4% to $89.8 million, including the contribution from the Green Bay operations. This compares to revenue of $72.8 million for the prior year. For the full year 2004, operating earnings from television stations increased 87.8% to $24.6 million, including the contribution from the Green Bay operations. This compares to operating earnings of $13.1 million for the prior year.
Telecommunications
Revenue from telecommunications for the quarter ended December 26, 2004, decreased 6.6% to $35.9 million from $38.4 million for the fourth quarter of 2003. For the fourth quarter of 2004, operating earnings from telecommunications decreased 18.8% to $8.2 million compared to $10.1 million for the fourth quarter of 2003, due to service disconnections and re-pricing in the wholesale market. For the full year 2004, revenue from telecommunications of $144.0 million decreased 3.7% compared to $149.5 million for the prior year, despite a 7.0% gain in revenue in the commercial segment in 2004. For the full year 2004, operating earnings from telecommunications declined 10.7% to $34.7 million from $38.8 million for the prior year.
3
Printing Services
Revenue from printing services for the quarter ended December 26, 2004, decreased 12.2% to $19.2 million from $21.8 million for the fourth quarter of 2003, due in large part to a reduction in revenue from several computer-related customers partially offset by a gain in revenue from a number of new printing customers.
For the fourth quarter 2004, printing services recorded “break-even” operations compared to operating earnings of $1.2 million in the fourth quarter of 2003, due to reduced sales volume and production inefficiencies. For the full year 2004, revenue from printing services decreased 11.2% to $76.3 million compared to $86.0 million for the prior year, due primarily to a reduction in revenue from our largest printing customer. For the full year 2004, printing services recorded an operating loss of $0.4 million compared to operating earnings of $3.8 million for the prior year.
Other
At December 26, 2004, our other segment consisted primarily of a label printing business and a direct marketing services business. For the quarter ended December 26, 2004, other revenue increased 2.2% to $23.4 million from $23.0 million for the fourth quarter of 2003. For the fourth quarter of 2004, other operating earnings increased to $4.3 million from $0.3 million for the fourth quarter of 2003 due to a gain on the sale of property partially offset by a charge for bad debt. For the full year 2004, other revenue increased 5.9% to $100.7 million compared to $95.1 million for the prior year. For the full year 2004, other operating earnings increased to $10.3 million from $7.7 million for the prior year.
On January 25, 2005, our label printing business, NorthStar Print Group, Inc., was acquired by MultiColor Corporation. The purchase price, excluding certain real estate holdings, was $27.0 million in cash. For the full year 2004, NorthStar contributed $58.6 million in revenue and $6.9 million in earnings, including a $3.1 million pre-tax gain on the sale of property.
Shares Outstanding
At December 26, 2004, Journal Communications had the following shares of stock issued and outstanding: 27,417,326 shares of class A common stock; 9,270,929 shares of class B-1 common stock (not including the 4,338,352 shares held by our subsidiary, The Journal Company); 35,539,783 shares of class B-2 common stock (not including the 4,338,353 shares held by The Journal Company); and 3,264,000 shares of class C common stock. The Company’s class A shares are traded on the New York Stock Exchange. Class B and class C shares are not traded on the NYSE. Under our articles of incorporation, Class B-1 shares are convertible to class A shares at the option of the holder after first offering to sell them in the “B market”; class B-2 shares are not convertible to class A shares until after the public sale restriction period ends on March 16, 2005.
First Quarter 2005 Guidance
For the first quarter of 2005, Journal Communications currently anticipates revenue from continuing operations to be between $178 million and $183 million and net earnings to be between $10 million and $13 million, excluding the operational results and the effect of the sale of NorthStar Print Group.
4
Webcast of Conference Call
A live webcast of the fourth quarter and full year 2004 conference call will be accessible through www.journalcommunications.com/investors and www.ccbn.com beginning at 10:00 a.m. CT this morning. An archive of the webcast will be available on these sites today through February 17. For telephone access to this morning’s conference call, dial (800) 299-6183 (domestic) or (617) 801-9713 (international) at least 10 minutes prior to the scheduled 10:00 a.m. CT start. The access code for the conference call is 76448083. Replays of the conference call will be available today through February 5. To hear the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international). The access code for the replay is 46927964.
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 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 more than 90 community newspapers and shoppers in eight states. We own and operate 38 radio stations and seven television stations in 11 states and operate an additional television station under a local marketing agreement. 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 also provide a wide range of commercial printing services – including printing for 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
5
Journal Communications, Inc.
Consolidated Statements of Earnings
(dollars in thousands, except for shares and per-share amounts)
| Fourth Quarter (A) (unaudited)
| | Four Quarters (B)
| |
|---|
| 2004
| 2003
| % Change
| 2004
| 2003
| % Change
|
|---|
Revenue: | | | | | | | | | | | | | | | | | | | | |
| Publishing | | | $ | 85,915 | | $ | 84,361 | | | 1.8 | | $ | 327,687 | | $ | 316,976 | | | 3.4 | |
| Broadcasting | | | | 51,226 | | | 42,353 | | | 21.0 | | | 172,073 | | | 150,744 | | | 14.1 | |
| Telecommunications | | | | 35,893 | | | 38,443 | | | (6.6 | ) | | 144,020 | | | 149,538 | | | (3.7 | ) |
| Printing services | | | | 19,162 | | | 21,821 | | | (12.2 | ) | | 76,308 | | | 85,958 | | | (11.2 | ) |
| Other | | | | 23,449 | | | 22,952 | | | 2.2 | | | 100,673 | | | 95,073 | | | 5.9 | |
|
| |
| | | |
| |
| | | |
| Total Revenue | | | | 215,645 | | | 209,930 | | | 2.7 | | | 820,761 | | | 798,289 | | | 2.8 | |
Operating costs and expenses: | | |
| Publishing | | | | 42,904 | | | 41,344 | | | 3.8 | | | 161,946 | | | 160,072 | | | 1.2 | |
| Broadcasting | | | | 19,434 | | | 16,580 | | | 17.2 | | | 68,832 | | | 64,698 | | | 6.4 | |
| Telecommunications | | | | 21,031 | | | 22,280 | | | (5.6 | ) | | 83,215 | | | 84,722 | | | (1.8 | ) |
| Printing services | | | | 16,613 | | | 18,024 | | | (7.8 | ) | | 66,519 | | | 71,316 | | | (6.7 | ) |
| Other | | | | 19,287 | | | 18,739 | | | 2.9 | | | 83,141 | | | 78,254 | | | 6.2 | |
|
| |
| | | |
| |
| | | |
| Total operating costs and expenses | | | | 119,269 | | | 116,967 | | | 2.0 | | | 463,653 | | | 459,062 | | | 1.0 | |
Selling and administrative expenses | | | | 57,872 | | | 58,771 | | | (1.5 | ) | | 224,348 | | | 225,818 | | | (0.7 | ) |
|
| |
| | | |
| |
| | | |
| Total operating costs and expenses | | |
| and selling and administrative | | |
| expenses | | | | 177,141 | | | 175,738 | | | 0.8 | | | 688,001 | | | 684,880 | | | 0.5 | |
Operating earnings | | | | 38,504 | | | 34,192 | | | 12.6 | | | 132,760 | | | 113,409 | | | 17.1 | |
Other income and expense: | | |
| Interest income and dividends | | | | 96 | | | 223 | | | | | | 335 | | | 442 | | | | |
| Interest expense, net | | | | (705 | ) | | (98 | ) | | | | | (2,280 | ) | | (1,909 | ) | | | |
|
| |
| | | |
| |
| | | |
| Total other income and expense | | | | (609 | ) | | 125 | | | | | | (1,945 | ) | | (1,467 | ) | | | |
Earnings before income taxes | | | | 37,895 | | | 34,317 | | | 10.4 | | | 130,815 | | | 111,942 | | | 16.9 | |
Provision for income taxes | | | | 15,166 | | | 13,804 | | | 9.9 | | | 52,335 | | | 45,149 | | | 15.9 | |
|
| |
| | | |
| |
| | | |
Net earnings | | | $ | 22,729 | | $ | 20,513 | | | 10.8 | | $ | 78,480 | | $ | 66,793 | | | 17.5 | |
|
| |
| | | |
| |
| | | |
Weighted average number of shares: | | |
| Basic | | | | 72,210,561 | | | 81,232,227 | | | | | | 72,931,102 | | | 78,644,722 | | | | |
| Diluted | | | | 76,665,565 | | | 85,684,227 | | | | | | 77,386,552 | | | 83,096,722 | | | | |
Earnings per share: | | |
| Basic: | | |
| Net earnings | | | $ | 0.31 | | $ | 0.25 | | | 24.0 | | $ | 1.05 | | $ | 0.84 | | | 25.0 | |
Diluted: | | |
| Net earnings | | | $ | 0.30 | | $ | 0.24 | | | 25.0 | | $ | 1.01 | | $ | 0.80 | | | 26.3 | |
| (A) | 2004 fourth quarter: September 27, 2004 to December 26, 2004.
2003 fourth quarter: September 29, 2003 to December 31, 2003. |
| (B) | 2004 four quarters: January 1, 2004 to December 26, 2004.
2003 four quarters: January 1, 2003 to December 31, 2003. |
Journal Communications, Inc.
Segment Information
(dollars in thousands)
| Fourth Quarter (A) (unaudited)
| | Four Quarters (B)
| |
|---|
| 2004
| 2003
| % Change
| 2004
| 2003
| % Change
|
|---|
| Revenue | | | | | | | | | | | | | | | | | | | | |
| Publishing | | | $ | 85,915 | | $ | 84,361 | | | 1.8 | | $ | 327,687 | | $ | 316,976 | | | 3.4 | |
| Broadcasting | | | | 51,226 | | | 42,353 | | | 21.0 | | | 172,073 | | | 150,744 | | | 14.1 | |
| Telecommunications | | | | 35,893 | | | 38,443 | | | (6.6 | ) | | 144,020 | | | 149,538 | | | (3.7 | ) |
| Printing services | | | | 19,162 | | | 21,821 | | | (12.2 | ) | | 76,308 | | | 85,958 | | | (11.2 | ) |
| Other | | | | 23,449 | | | 22,952 | | | 2.2 | | | 100,673 | | | 95,073 | | | 5.9 | |
|
| |
| | | |
| |
| | | |
| | | | $ | 215,645 | | $ | 209,930 | | | 2.7 | | $ | 820,761 | | $ | 798,289 | | | 2.8 | |
|
| |
| | | |
| |
| | | |
Operating earnings | | |
| Publishing | | | $ | 11,057 | | $ | 11,362 | | | (2.7 | ) | $ | 43,708 | | $ | 33,199 | | | 31.7 | |
| Broadcasting | | | | 14,986 | | | 11,231 | | | 33.4 | | | 44,404 | | | 29,879 | | | 48.6 | |
| Telecommunications | | | | 8,205 | | | 10,100 | | | (18.8 | ) | | 34,691 | | | 38,858 | | | (10.7 | ) |
| Printing services | | | | (12 | ) | | 1,239 | | | (101.0 | ) | | (367 | ) | | 3,760 | | | (109.8 | ) |
| Other | | | | 4,268 | | | 260 | | | 1541.5 | | | 10,324 | | | 7,713 | | | 33.9 | |
|
| |
| | | |
| |
| | | |
| | | | $ | 38,504 | | $ | 34,192 | | | 12.6 | | $ | 132,760 | | $ | 113,409 | | | 17.1 | |
|
| |
| | | |
| |
| | | |
Depreciation and amortization | | |
| Publishing | | | $ | 4,280 | | $ | 4,064 | | | 5.3 | | $ | 15,855 | | $ | 16,513 | | | (4.0 | ) |
| Broadcasting | | | | 2,464 | | | 2,681 | | | (8.1 | ) | | 8,516 | | | 8,658 | | | (1.6 | ) |
| Telecommunications | | | | 4,472 | | | 4,686 | | | (4.6 | ) | | 17,465 | | | 17,676 | | | (1.2 | ) |
| Printing services | | | | 628 | | | 714 | | | (12.0 | ) | | 2,381 | | | 3,162 | | | (24.7 | ) |
| Other | | | | 529 | | | 656 | | | (19.4 | ) | | 2,410 | | | 2,613 | | | (7.8 | ) |
|
| |
| | | |
| |
| | | |
| | | | $ | 12,373 | | $ | 12,801 | | | (3.3 | ) | $ | 46,627 | | $ | 48,622 | | | (4.1 | ) |
|
| |
| | | |
| |
| | | |
| (A) | 2004 fourth quarter: September 27, 2004 to December 26, 2004.
2003 fourth quarter: September 29, 2003 to December 31, 2003. |
| (B) | 2004 four quarters: January 1, 2004 to December 26, 2004.
2003 four quarters: January 1, 2003 to December 31, 2003. |
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
| Fourth Quarter of 2004 (A)
| Fourth Quarter of 2003 (B)
| |
|---|
| Daily
Newspaper
| Community
Newspapers
& Shoppers
| Total
| Daily
Newspaper
| Community
Newspapers
& Shoppers
| Total
| % Change
Daily
| % Change
CN&S
| % Change
Total
|
|---|
Advertising revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Retail | | | $ | 24,426 | | $ | 14,052 | | $ | 38,478 | | $ | 23,241 | | $ | 14,313 | | $ | 37,554 | | | 5.1 | | | (1.8 | ) | | 2.5 | |
| Classified | | | | 14,983 | | | 2,206 | | | 17,189 | | | 14,592 | | | 2,176 | | | 16,768 | | | 2.7 | | | 1.4 | | | 2.5 | |
| General | | | | 3,024 | | | -- | | | 3,024 | | | 3,091 | | | -- | | | 3,091 | | | (2.2 | ) | | -- | | | (2.2 | ) |
| Other | | | | 6,705 | | | 427 | | | 7,132 | | | 5,446 | | | 412 | | | 5,858 | | | 23.1 | | | 3.6 | | | 21.7 | |
|
| |
| |
| |
| |
| |
| | | | |
| Total advertising revenue | | | | 49,138 | | | 16,685 | | | 65,823 | | | 46,370 | | | 16,901 | | | 63,271 | | | 6.0 | | | (1.3 | ) | | 4.0 | |
| Circulation revenue | | | | 10,895 | | | 699 | | | 11,594 | | | 11,425 | | | 710 | | | 12,135 | | | (4.6 | ) | | (1.5 | ) | | (4.5 | ) |
| Other revenue | | | | 1,030 | | | 7,468 | | | 8,498 | | | 1,484 | | | 7,471 | | | 8,955 | | | (30.6 | ) | | -- | | | (5.1 | ) |
|
| |
| |
| |
| |
| |
| | | | | | | |
| Total revenue | | | $ | 61,063 | | $ | 24,852 | | $ | 85,915 | | $ | 59,279 | | $ | 25,082 | | $ | 84,361 | | | 3.0 | | | (0.9 | ) | | 1.8 | |
|
| |
| |
| |
| |
| |
| | | | | | | |
| Four Quarters of 2004 (C)
| Four Quarters of 2003 (D)
| |
|---|
| Daily
Newspaper
| Community
Newspapers
& Shoppers
| Total
| Daily
Newspaper
| Community
Newspapers
& Shoppers
| Total
| % Change
Daily
| % Change
CN&S
| % Change
Total
|
|---|
Advertising revenue: | | |
| Retail | | | $ | 83,499 | | $ | 55,496 | | $ | 138,995 | | $ | 80,733 | | $ | 56,115 | | $ | 136,848 | | | 3.4 | | | (1.1 | ) | | 1.6 | |
| Classified | | | | 63,805 | | | 9,112 | | | 72,917 | | | 60,658 | | | 8,676 | | | 69,334 | | | 5.2 | | | 5.0 | | | 5.2 | |
| General | | | | 11,527 | | | -- | | | 11,527 | | | 10,985 | | | -- | | | 10,985 | | | 4.9 | | | -- | | | 4.9 | |
| Other | | | | 21,704 | | | 1,907 | | | 23,611 | | | 18,190 | | | 1,975 | | | 20,165 | | | 19.3 | | | (3.4 | ) | | 17.1 | |
|
| |
| |
| |
| |
| |
| | | | | | | |
| Total advertising revenue | | | | 180,535 | | | 66,515 | | | 247,050 | | | 170,566 | | | 66,766 | | | 237,332 | | | 5.8 | | | (0.4 | ) | | 4.1 | |
| Circulation revenue | | | | 43,225 | | | 2,868 | | | 46,093 | | | 43,903 | | | 2,863 | | | 46,766 | | | (1.5 | ) | | 0.2 | | | (1.4 | ) |
| Other revenue | | | | 5,335 | | | 29,209 | | | 34,544 | | | 5,144 | | | 27,734 | | | 32,878 | | | 3.7 | | | 5.3 | | | 5.1 | |
|
| |
| |
| |
| |
| |
| | | | | | | |
| Total revenue | | | $ | 229,095 | | $ | 98,592 | | $ | 327,687 | | $ | 219,613 | | $ | 97,363 | | $ | 316,976 | | | 4.3 | | | 1.3 | | | 3.4 | |
|
| |
| |
| |
| |
| |
| | | | | | | |
| (A) | 2004 fourth quarter: September 27, 2004 to December 26, 2004.
2003 fourth quarter: September 29, 2003 to December 31, 2003. |
| (B) | 2004 four quarters: January 1, 2004 to December 26, 2004.
2003 four quarters: January 1, 2003 to December 31, 2003. |
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.
Journal Communications, Inc.
Publishing Segment Information, continued (unaudited)
Daily newspaper's core newspaper advertising linage by category:
| Fourth Quarter (A)
| |
|---|
| 2004
| 2003
| % Change
|
|---|
| Advertising linage (inches): | | | | | | | | | | | |
Full run | | |
| Retail | | | | 199,165 | | | 202,093 | | | (1.4 | ) |
| Classified | | | | 200,494 | | | 211,261 | | | (5.1 | ) |
| General | | | | 14,072 | | | 14,759 | | | (4.7 | ) |
|
| |
| | | |
| Total full run | | | | 413,731 | | | 428,113 | | | (3.4 | ) |
| Part run | | | | 50,654 | | | 38,832 | | | 30.4 | |
|
| |
| | | |
| Total advertising linage | | | | 464,385 | | | 466,945 | | | (0.5 | ) |
|
| |
| | | |
Preprint pieces (in thousands) | | | | 234,057 | | | 225,815 | | | 3.6 | |
|
| |
| | | |
Full pages of advertising and revenue per page of our community newspapers and shoppers: |
Full pages of advertising: | | |
| Community newspapers | | | | 25,200 | | | 26,896 | | | (6.3 | ) |
| Shoppers and specialty products | | | | 27,422 | | | 29,296 | | | (6.4 | ) |
|
| |
| | | |
| Total full pages of advertising | | | | 52,622 | | | 56,192 | | | (6.4 | ) |
|
| |
| | | |
| Revenue per page | | | $ | 281.27 | | $ | 266.80 | | | 5.4 | |
|
| |
| | | |
Daily newspaper's core newspaper advertising linage by category: |
| Four Quarters (B)
| |
|---|
| 2004
| 2003
| % Change
|
|---|
| Advertising linage (inches): | | |
Full run | | |
| Retail | | | | 724,220 | | | 724,116 | | | -- | |
| Classified | | | | 850,820 | | | 877,715 | | | (3.1 | ) |
| General | | | | 54,213 | | | 51,521 | | | 5.2 | |
|
| |
| | | |
| Total full run | | | | 1,629,253 | | | 1,653,352 | | | (1.5 | ) |
| Part run | | | | 172,125 | | | 124,937 | | | 37.8 | |
|
| |
| | | |
| Total advertising linage | | | | 1,801,378 | | | 1,778,289 | | | 1.3 | |
|
| |
| | | |
Preprint pieces (in thousands) | | | | 800,700 | | | 834,587 | | | (4.1 | ) |
|
| |
| | | |
| Full pages of advertising and revenue per page of our community newspapers and shoppers: |
Full pages of advertising: | | |
| Community newspapers | | | | 100,156 | | | 109,114 | | | (8.2 | ) |
| Shoppers and specialty products | | | | 108,979 | | | 114,554 | | | (4.9 | ) |
|
| |
| | | |
| Total full pages of advertising | | | | 209,135 | | | 223,668 | | | (6.5 | ) |
|
| |
| | | |
| Revenue per page | | | $ | 282.96 | | $ | 264.54 | | | 7.0 | |
|
| |
| | | |
| (A) | 2004 fourth quarter: September 27, 2004 to December 26, 2004.
2003 fourth quarter: September 29, 2003 to December 31, 2003. |
| (B) | 2004 four quarters: January 1, 2004 to December 26, 2004.
2003 four quarters: January 1, 2003 to December 31, 2003. |
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.
Journal Communications, Inc.
Reconciliation of our consolidated net earnings to consolidated EBITDA
(dollars in thousands)
| Fourth Quarter (A) (unaudited)
| Four Quarters (B)
|
|---|
| 2004
| 2003
| 2004
| 2003
|
|---|
Net earnings | | | $ | 22,729 | | $ | 20,513 | | $ | 78,480 | | $ | 66,793 | |
| Total other (income) and expense | | | | 609 | | | (125 | ) | | 1,945 | | | 1,467 | |
| Provision for income taxes | | | | 15,166 | | | 13,804 | | | 52,335 | | | 45,149 | |
| Depreciation | | | | 12,082 | | | 11,797 | | | 45,231 | | | 46,381 | |
| Amortization | | | | 291 | | | 1,004 | | | 1,396 | | | 2,241 | |
|
| |
| |
| |
| |
| EBITDA | | | $ | 50,877 | | $ | 46,993 | | $ | 179,387 | | $ | 162,031 | |
|
| |
| |
| |
| |
| (A) | 2004 fourth quarter: September 27, 2004 to December 26, 2004.
2003 fourth quarter: September 29, 2003 to December 31, 2003. |
| (B) | 2004 four quarters: January 1, 2004 to December 26, 2004.
2003 four quarters: January 1, 2003 to December 31, 2003. |
We believe that EBITDA is relevant and useful because it helps improve our investors' ability to understand our operating performance and makes it easier to compare our results with other companies that have different financing and capital structures or tax rates. We use EBITDA, among other things, to evaluate our operating performance, to value prospective acquisitions and as a component of incentive compensation targets for certain management personnel. Our lenders use EBITDA as one of the measures of our ability to service our debt. 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 measures from operating performance as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA reported by other companies. In addition, EBITDA does not represent funds available for discretionary use.
Journal Communications, Inc.
Consolidated Condensed Balance Sheet
(dollars in thousands)
| December 26,
2004
| December 31,
2003
|
|---|
| ASSETS | | | | | | | | |
| Current assets: | | |
| Cash and cash equivalents | | | $ | 6,375 | | $ | 8,444 | |
| Receivables, net | | | | 94,725 | | | 89,526 | |
| Inventories, net | | | | 16,998 | | | 15,216 | |
| Prepaid expenses | | | | 13,390 | | | 13,236 | |
| Deferred income taxes | | | | 9,446 | | | 8,948 | |
| Investment in preferred stock | | | | 4,394 | | | -- | |
|
| |
| |
| Total current assets | | | $ | 145,328 | | $ | 135,370 | |
| Property and equipment, net | | | | 303,566 | | | 314,595 | |
| Goodwill | | | | 138,648 | | | 114,283 | |
| Broadcast licenses | | | | 140,046 | | | 129,548 | |
| Other intangible assets, net | | | | 14,753 | | | 9,900 | |
| Prepaid pension costs | | | | 24,156 | | | 28,421 | |
| Other assets | | | | 8,565 | | | 15,058 | |
|
| |
| |
| Total assets | | | $ | 775,062 | | $ | 747,175 | |
|
| |
| |
LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Accounts payable | | | $ | 42,005 | | $ | 38,369 | |
| Accrued compensation | | | | 24,025 | | | 23,346 | |
| Accrued employee benefits | | | | 10,872 | | | 9,830 | |
| Deferred revenue | | | | 20,536 | | | 22,590 | |
| Other current liabilities | | | | 13,554 | | | 13,049 | |
| Current portion of long-term liabilities | | | | 3,600 | | | 2,164 | |
|
| |
| |
| Total current liabilities | | | $ | 114,592 | | $ | 109,348 | |
| Accrued employee benefits | | | | 17,839 | | | 17,815 | |
| Long-term notes payable to banks | | | | 70,310 | | | 84,000 | |
| Deferred income taxes | | | | 66,143 | | | 56,477 | |
| Other long term liabilities | | | | 16,683 | | | 15,785 | |
| Shareholders' equity | | | | 489,495 | | | 463,750 | |
|
| |
| |
| Total liabilities and shareholders' equity | | | $ | 775,062 | | $ | 747,175 | |
|
| |
| |
