Exhibit 99
Journal Communications Reports Second Quarter 2014 Results
Second Quarter 2014 Highlights and Changes from Second Quarter 2013:
- Revenue of $104.7 million, up 4.9%.
- Television revenue of $46.9 million, up 12.8%.
- Television retransmission revenue of $9.8 million, up 80.7%.
- Radio revenue of $20.2 million, up 1.6%
- Digital revenue of $5.4 million, up 10.0%
- Operating earnings of $17.4 million, up 34.4%.
- Diluted EPS of $0.21, compared to $0.13.
MILWAUKEE--(BUSINESS WIRE)--August 7, 2014--Journal Communications, Inc. (NYSE:JRN) today announced results for its second quarter ended June 29, 2014.
“Last week, Journal Communications announced an exciting transaction with The E.W. Scripps Company, where together we will create two publicly traded media businesses that will continue to serve their communities with a commitment to integrity, excellence, and enterprise journalism,” said Steven J. Smith, Chairman and CEO of Journal Communications.
“Today, we are focused on the second quarter of 2014 and we are pleased to report that Journal Communications revenue of $105 million grew nearly 5%, benefiting from the continued growth in television retransmission revenue.
“Digital revenue growth of 10% and radio revenue growth in the quarter were also encouraging.
“Increased revenue drove an operating earnings increase of 34% in the quarter. Earnings per share were $0.21 compared to $0.13 last year.”
Second Quarter 2014 Results
Note that unless otherwise indicated, all comparisons are to the second quarter ended June 30, 2013.
For the second quarter, revenue of $104.7 million increased 4.9%. Digital revenue of $5.4 million grew 10.0%. Operating earnings of $17.4 million increased 34.4%. Total expenses of $87.3 million were up 0.5%.
The operating margin was 16.7% for the second quarter compared to 13.0%. Adjusted EBITDA, as defined in Table 4, was $23.8 million, an increase of 18.2%.
Net earnings of $10.4 million increased 57.9%. In the second quarter, basic and diluted net earnings per share of class A and B common stock were $0.21 compared to $0.13.
Consolidated and Segment Results
The following table presents our revenue and operating earnings (loss) by segment for the second quarters of 2014 and 2013 (dollars in millions).
| | | | | | | | | | |
| | | | Q2 2014 | | | Q2 2013 | | | % Change |
| Revenue: | | | | | | | | | |
| Television | | | $ 46.9 | | | | $ 41.6 | | | | 12.8 | |
| Radio | | | 20.2 | | | | 19.9 | | | | 1.6 | |
| Publishing | | | 37.6 | | | | 38.4 | | | | (2.0 | ) |
| Corporate eliminations | | | (0.0 | ) | | | (0.1 | ) | | | 30.8 | |
| Total Revenue | | | $ 104.7 | | | | $ 99.8 | | | | 4.9 | |
| | | | | | | | | | |
| Operating earnings (loss): | | | | | | | | | |
| Television | | | $ 12.7 | | | | $ 8.4 | | | | 52.0 | |
| Radio | | | 4.1 | | | | 3.8 | | | | 6.2 | |
| Publishing | | | 2.6 | | | | 3.1 | | | | (14.1 | ) |
| Corporate | | | (2.0 | ) | | | (2.3 | ) | | | 13.7 | |
| Total operating earnings | | | $ 17.4 | | | | $ 13.0 | | | | 34.4 | |
| | | | | | | | | | | | |
Television
Revenue from television for the second quarter increased 12.8% to $46.9 million. Retransmission revenue of $9.8 million grew 80.7%. Television political advertising revenue was $1.5 million compared to $0.2 million. Local advertising revenue, excluding political, decreased 0.7%. Digital revenue, which is reported in local revenue, was $1.1 million, up 24.9%. National advertising revenue, excluding political, decreased 2.0%, primarily due to a decrease in the media advertising category. Total revenue, excluding political and retransmission revenue was $35.6 million, down 0.9%.
Operating earnings from television were $12.7 million, an increase of 52.0%. Television operating expenses increased 2.9%, or 5.3% excluding $0.7 million in acquisition costs in 2013, primarily due to increased network fees.
Radio
For the second quarter, revenue from radio increased 1.6% to $20.2 million. Radio political advertising revenue was $0.1 million in each of 2014 and 2013. Local advertising revenue, excluding political, increased 2.3%, primarily due to an increase in home products and automotive advertising. Digital revenue, which is reported in local revenue, was $0.8 million, up 14.1%. National advertising revenue, excluding political, decreased 6.3%, primarily due to a lower automotive and restaurant advertising. Excluding political revenue, total revenue was $20.1 million, up 1.5%.
Operating earnings from radio were $4.1 million compared to $3.8 million, an increase of 6.2%. Radio operating expenses increased 0.5%.
Publishing
For the second quarter, publishing revenue decreased 2.0% to $37.6 million. Retail advertising revenue decreased 1.8% driven by the loss of a large retailer in the market and lower department store spending. Classified advertising revenue decreased 6.5% driven by a decrease in real estate and employment advertising. Digital advertising revenue of $3.5 million increased 5.1%, primarily due to an increase in sponsorship revenue that offset classified employment revenue declines. Circulation revenue of $11.9 million was down 2.6% on lower volumes that off-set price increases. Other revenue of $5.5 million increased 3.9% driven by higher commercial delivery volumes.
Operating earnings from publishing were $2.6 million, a decrease of 14.1%. Total publishing expenses were $35.0 million, down 0.9%, or down 0.7% excluding workforce reduction charges of $0.6 million and $0.7 million in 2014 and 2013, respectively. Total newsprint and paper expense of $3.7 million decreased 4.6% on lower printing volumes and paper costs.
Corporate
The operating loss for the second quarter was $2.0 million compared to $2.3 million.
Non-Operating Items
For the second quarter, other expense, which primarily consists of interest expense, was $1.6 million compared to $2.1 million, reflecting lower average borrowings for the quarter.
The second quarter effective tax rate was 34.1% compared to 40.3%. The lower 2014 effective tax rate was driven by the successful settlement this quarter of state tax refund claims totaling $1.4 million, or $0.9 million after federal taxes.
Notes Payable to Banks and Cash Flows
At the end of the second quarter, total debt was $157.7 million of which $144.4 million was drawn on our senior secured credit facilities and an additional $13.3 million was outstanding in the form of unsecured subordinated notes payable to the former holders of our class C shares. Year-to-date through the second quarter, we reduced our total debt by $50.6 million as compared to the 2013 year-end. Our consolidated funded debt ratio, as defined in our credit agreement, was 1.86-to-1. Year-to-date cash from operating activities was $37.6 million compared to $24.4 million due to increased cash from working capital and higher net earnings. Year-to-date capital expenditures were $4.0 million compared to $5.5 million.
Third Quarter 2014 Outlook
In the third quarter of 2014, excluding political revenue, we expect total television revenue to be up in the low to mid-teens as compared to the third quarter of 2013. In radio, excluding political revenue, we expect revenue increases in the low-single digits as compared to the third quarter of 2013. In publishing, we anticipate revenue declines in the low-single digits as compared to the third quarter of 2013.
Conference Call and Webcast
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) 318-8611 (domestic) or (617) 399-5130 (international) at least 10 minutes prior to the scheduled start of the call. The access code for the conference call is 99841865. 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 10:00 a.m. CT this morning. An archive of the webcast will be available on this site today through August 14, 2014. Replays of the conference call will also be available through August 14, 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 90453403. Pre-registration for the conference call is now available at www.journalcommunications.com/investors.
About Journal Communications
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 digital media. We own and operate or provide services to 14 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 digital media assets build on our strong publishing and broadcasting brands.
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 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.
Tables Follow
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| | | | | | | | | | | Table No. 1 |
| Journal Communications, Inc. |
| Consolidated Statements of Operations (unaudited) |
| (dollars in thousands, except for shares and per-share amounts) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | Second Quarter (A) | | | | | Two Quarters (B) | | |
| | | | 2014 | | 2013 | | % Change | | | 2014 | | 2013 | | % Change |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | | | |
| Television | | | | $ 46,947 | | | $ 41,617 | | | 12.8 | | | | $ 92,916 | | | $ 82,428 | | | 12.7 | |
| Radio | | | | 20,179 | | | 19,854 | | | 1.6 | | | | 35,405 | | | 35,720 | | | (0.9 | ) |
| Publishing | | | | 37,636 | | | 38,398 | | | (2.0 | ) | | | 73,236 | | | 74,978 | | | (2.3 | ) |
| Corporate eliminations | | | | (63 | ) | | (91 | ) | | 30.8 | | | | (246 | ) | | (145 | ) | | (69.7 | ) |
| Total revenue | | | | 104,699 | | | 99,778 | | | 4.9 | | | | 201,311 | | | 192,981 | | | 4.3 | |
| | | | | | | | | | | | | | | |
| Operating costs and expenses: | | | | | | | | | | | | | | | |
| Television | | | | 21,875 | | | 20,990 | | | 4.2 | | | | 45,087 | | | 42,015 | | | 7.3 | |
| Radio | | | | 8,070 | | | 8,216 | | | (1.8 | ) | | | 14,277 | | | 14,594 | | | (2.2 | ) |
| Publishing | | | | 24,241 | | | 25,249 | | | (4.0 | ) | | | 48,898 | | | 50,302 | | | (2.8 | ) |
| Corporate eliminations | | | | (63 | ) | | (88 | ) | | 28.4 | | | | (246 | ) | | (142 | ) | | (73.2 | ) |
| Total operating costs and expenses | | | | 54,123 | | | 54,367 | | | (0.4 | ) | | | 108,016 | | | 106,769 | | | 1.2 | |
| | | | | | | | | | | | | | | |
| Selling and administrative expenses | | | | 33,132 | | | 32,435 | | | 2.1 | | | | 63,882 | | | 64,907 | | | (1.6 | ) |
| Total operating costs and expenses | | | | | | | | | | | | | | | |
| and selling and administrative | | | | | | | | | | | | | | | |
| expenses | | | | 87,255 | | | 86,802 | | | 0.5 | | | | 171,898 | | | 171,676 | | | 0.1 | |
| | | | | | | | | | | | | | | |
| Operating earnings | | | | 17,444 | | | 12,976 | | | 34.4 | | | | 29,413 | | | 21,305 | | | 38.1 | |
| | | | | | | | | | | | | | | |
| Other income and (expense): | | | | | | | | | | | | | | | |
| Interest expense | | | | (1,594 | ) | | (1,907 | ) | | 16.4 | | | | (3,220 | ) | | (4,040 | ) | | 20.3 | |
| Other | | | | - | | | (188 | ) | | N/A | | | | - | | | (188 | ) | | N/A | |
| Total other income and (expense) | | | | (1,594 | ) | | (2,095 | ) | | 23.9 | | | | (3,220 | ) | | (4,228 | ) | | 23.8 | |
| | | | | | | | | | | | | | | |
| Earnings from continuing operations before income taxes | | | | 15,850 | | | 10,881 | | | 45.7 | | | | 26,193 | | | 17,077 | | | 53.4 | |
| | | | | | | | | | | | | | | |
| Provision for income taxes | | | | 5,406 | | | 4,387 | | | 23.2 | | | | 9,583 | | | 6,890 | | | 39.1 | |
| | | | | | | | | | | | | | | |
| Earnings from continuing operations | | | | 10,444 | | | 6,494 | | | 60.8 | | | | 16,610 | | | 10,187 | | | 63.1 | |
| | | | | | | | | | | | | | | |
| Earnings from discontinued operations, net of tax | | | | (21 | ) | | 107 | | | U | | | 6,000 | | | 207 | | | F |
| | | | | | | | | | | | | | | |
| Net earnings | | | | $ 10,423 | | | $ 6,601 | | | 57.9 | | | | $ 22,610 | | | $ 10,394 | | | F |
| | | | | | | | | | | | | | | |
| Weighted average number of shares-Class A and B common stock: | | | | | | | | | | | | | | | |
| Basic | | | | 50,532,134 | | | 50,246,867 | | | | | | 50,478,171 | | | 50,188,007 | | | |
| Diluted | | | | 50,690,542 | | | 50,462,970 | | | | | | 50,657,089 | | | 50,437,111 | | | |
| | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | |
| Basic - Class A and B common stock: | | | | | | | | | | | | | | | |
| Continuing operations | | | | $ 0.21 | | | $ 0.13 | | | | | | $ 0.33 | | | $ 0.21 | | | |
| Discontinued operations | | | | - | | | - | | | | | | 0.12 | | | - | | | |
| Net earnings per share - basic | | | | $ 0.21 | | | $ 0.13 | | | | | | $ 0.45 | | | $ 0.21 | | | |
| | | | | | | | | | | | | | | |
| Diluted - Class A and B common stock: | | | | | | | | | | | | | | | |
| Continuing operations | | | | $ 0.21 | | | $ 0.13 | | | | | | $ 0.33 | | | $ 0.21 | | | |
| Discontinued operations | | | | - | | | - | | | | | | 0.12 | | | - | | | |
| Net earnings per share - diluted | | | | $ 0.21 | | | $ 0.13 | | | | | | $ 0.45 | | | $ 0.21 | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| (A) 2014 second quarter: March 31, 2014 to June 29, 2014 |
2013 second quarter: April 1, 2013 to June 30, 2013 |
| (B) 2014 two quarters: December 30, 2013 to June 29, 2014 |
2013 two quarters: December 31, 2012 to June 30, 2013 |
U Greater than 100% unfavorable variance |
F Greater than 100% favorable variance |
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| | | | | | | | | | |
| | | | | | | | | | Table No. 2 |
| Journal Communications, Inc. |
| Segment Information (unaudited) |
| (dollars in thousands) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Second Quarter (A) | | | | | Two Quarters (B) | | | |
| | | 2014 | | 2013 | | % Change | | | 2014 | | 2013 | | % Change | |
Revenue | | | | | | | | | | | | | | | |
| Television | | | $ 46,947 | | | $ 41,617 | | | 12.8 | | | | $ 92,916 | | | $ 82,428 | | | 12.7 | | |
| Radio | | | 20,179 | | | 19,854 | | | 1.6 | | | | 35,405 | | | 35,720 | | | (0.9 | ) | |
| Publishing | | | 37,636 | | | 38,398 | | | (2.0 | ) | | | 73,236 | | | 74,978 | | | (2.3 | ) | |
| Corporate eliminations | | | (63 | ) | | (91 | ) | | 30.8 | | | | (246 | ) | | (145 | ) | | (69.7 | ) | |
| | | $ 104,699 | | | $ 99,778 | | | 4.9 | | | | $ 201,311 | | | $ 192,981 | | | 4.3 | | |
| | | | | | | | | | | | | | | |
Operating earnings (loss) | | | | | | | | | | | | | | | |
| Television | | | $ 12,725 | | | $ 8,373 | | | 52.0 | | | | $ 23,903 | | | $ 15,345 | | | 55.8 | | |
| Radio | | | 4,055 | | | 3,818 | | | 6.2 | | | | 6,188 | | | 6,240 | | | (0.8 | ) | |
| Publishing | | | 2,632 | | | 3,065 | | | (14.1 | ) | | | 3,229 | | | 3,938 | | | (18.0 | ) | |
| Corporate | | | (1,968 | ) | | (2,280 | ) | | 13.7 | | | | (3,907 | ) | | (4,218 | ) | | 7.4 | | |
| | | $ 17,444 | | | $ 12,976 | | | 34.4 | | | | $ 29,413 | | | $ 21,305 | | | 38.1 | | |
| | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | | | | | | |
| Television | | | $ 3,187 | | | $ 3,186 | | | 0.0 | | | | $ 6,439 | | | $ 6,422 | | | 0.3 | | |
| Radio | | | 502 | | | 554 | | | (9.4 | ) | | | 974 | | | 1,103 | | | (11.7 | ) | |
| Publishing | | | 1,640 | | | 1,738 | | | (5.6 | ) | | | 3,372 | | | 3,485 | | | (3.2 | ) | |
| Corporate | | | 118 | | | 173 | | | (31.8 | ) | | | 236 | | | 345 | | | (31.6 | ) | |
| | | $ 5,447 | | | $ 5,651 | | | (3.6 | ) | | | $ 11,021 | | | $ 11,355 | | | (2.9 | ) | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| (A) 2014 second quarter: March 31, 2014 to June 29, 2014 |
2013 second quarter: April 1, 2013 to June 30, 2013 |
| (B) 2014 two quarters: December 30, 2013 to June 29, 2014 |
2013 two quarters: December 31, 2012 to June 30, 2013 |
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| | | | | | | | | | | | |
| | | | | | | | | | | | Table No. 3 |
| Journal Communications, Inc. |
| Television, Radio and Publishing Segment Information (unaudited) |
| (dollars in thousands) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | Second Quarter (A) | % Change | | | Two Quarters (B) | | % Change |
| | | 2014 | | 2013 | | Total | | | 2014 | | 2013 | | Total |
Television: | | | | | | | | | | | | | | |
| Total Revenue | | | $ 46,947 | | $ 41,617 | | 12.8 | | | | $ 92,916 | | $ 82,428 | | 12.7 | |
| | | | | | | | | | | | | | |
| Operating earnings | | | $ 12,725 | | $ 8,373 | | 52.0 | | | | $ 23,903 | | $ 15,345 | | 55.8 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Radio: | | | | | | | | | | | | | | |
| Total Revenue | | | $ 20,179 | | $ 19,854 | | 1.6 | | | | $ 35,405 | | $ 35,720 | | (0.9 | ) |
| | | | | | | | | | | | | | |
| Operating earnings | | | $ 4,055 | | $ 3,818 | | 6.2 | | | | $ 6,188 | | $ 6,240 | | (0.8 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Publishing: | | | | | | | | | | | | | | |
| Advertising revenue: | | | | | | | | | | | | | | |
| Retail | | | $ 16,079 | | $ 16,381 | | (1.8 | ) | | | $ 29,901 | | $ 30,024 | | (0.4 | ) |
| Classified | | | 3,594 | | 3,842 | | (6.5 | ) | | | 7,045 | | 7,458 | | (5.5 | ) |
| National | | | 564 | | 669 | | (15.7 | ) | | | 1,102 | | 1,249 | | (11.8 | ) |
| Total advertising revenue | | | 20,237 | | 20,892 | | (3.1 | ) | | | 38,048 | | 38,731 | | (1.8 | ) |
| Circulation revenue | | | 11,879 | | 12,194 | | (2.6 | ) | | | 23,543 | | 24,564 | | (4.2 | ) |
| Other revenue | | | 5,520 | | 5,312 | | 3.9 | | | | 11,645 | | 11,683 | | (0.3 | ) |
| Total revenue | | | $ 37,636 | | $ 38,398 | | (2.0 | ) | | | $ 73,236 | | $ 74,978 | | (2.3 | ) |
| | | | | | | | | | | | | | |
| Operating earnings | | | $ 2,632 | | $ 3,065 | | (14.1 | ) | | | $ 3,229 | | $ 3,938 | | (18.0 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (A) 2014 second quarter: March 31, 2014 to June 29, 2014 |
2013 second quarter: April 1, 2013 to June 30, 2013 |
| (B) 2014 two quarters: December 30, 2013 to June 29, 2014 |
2013 two quarters: December 31, 2012 to June 30, 2013 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| NOTE: | | | | | | | | | | | | | | |
Television, radio and publishing segment information is provided to facilitate comparison of our television, radio and publishing segment results with those of other television, radio and publishing companies and is not representative of the overall business of Journal Communications or its operating results. |
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| | | | | | | | Table No. 4 |
| Journal Communications, Inc. |
| Reconciliation of Consolidated Net Earnings to Consolidated EBITDA and Adjusted EBITDA (unaudited) |
| (dollars in thousands) |
| | | | | | | | | | |
| | | Second Quarter (A) | | | Two Quarters (B) |
| | | 2014 | | 2013 | | | 2014 | | 2013 |
| | | | | | | | | | |
| Net earnings from continuing operations | | | $ 10,444 | | $ 6,494 | | | $ 16,610 | | $ 10,187 |
| Provision for income taxes | | | 5,406 | | 4,387 | | | 9,583 | | 6,890 |
| Total other expense, net | | | 1,594 | | 2,095 | | | 3,220 | | 4,228 |
| Depreciation | | | 4,743 | | 4,935 | | | 9,608 | | 9,923 |
| Amortization | | | 704 | | 716 | | | 1,413 | | 1,432 |
| EBITDA | | | $ 22,891 | | $ 18,627 | | | $ 40,434 | | $ 32,660 |
| | | | | | | | | | |
| Impairment of long-lived assets | | | - | | - | | | - | | 238 |
| Transaction costs | | | 315 | | 769 | | | 315 | | 1,554 |
| Workforce reduction charges | | | 557 | | 716 | | | 613 | | 748 |
| Adjusted EBITDA | | | $ 23,763 | | $ 20,112 | | | $ 41,362 | | $ 35,200 |
| | | | | | | | | | |
| | | | | | | | | | |
| (A) 2014 second quarter: March 31, 2014 to June 29, 2014 |
2013 second quarter: April 1, 2013 to June 30, 2013 |
| (B) 2014 two quarters: December 30, 2013 to June 29, 2014 |
2013 two quarters: December 31, 2012 to June 30, 2013 |
| | | | | | | | | | |
| 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, transaction 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. |
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| | | | | Table No. 5 |
| 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) | |
| | | 2014 | | 2013 | | | 2014 | | 2013 | |
| | | | | | | | | | | |
| Numerator for diluted earnings per share: | | | | | | | | | | | |
| Earnings from continuing operations | | | 10,444 | | | 6,494 | | | 16,610 | | 10,187 | |
| Earnings from discontinued operations, net of tax | | | (21 | ) | | 107 | | | 6,000 | | 207 | |
| Net earnings | | | $ 10,423 | | | $ 6,601 | | | $ 22,610 | | $ 10,394 | |
| | | | | | | | | | | |
| Denominator for diluted earnings per class A and B share: | | | | | | | | | | | |
| Weighted average shares outstanding - Class A and B | | | 50,532 | | | 50,247 | | | 50,478 | | 50,188 | |
| Impact of non-vested restricted shares | | | 159 | | | 216 | | | 179 | | 249 | |
| Adjusted weighted average shares outstanding for class A and B | | | 50,691 | | | 50,463 | | | 50,657 | | 50,437 | |
| | | | | | | | | | | |
| Diluted earnings per share of class A and B: | | | | | | | | | | | |
| Continuing operations | | | $ 0.21 | | | $ 0.13 | | | $ 0.33 | | $ 0.21 | |
| Discontinued operations | | | - | | | - | | | 0.12 | | - | |
| Net earnings per share - diluted | | | $ 0.21 | | | $ 0.13 | | | $ 0.45 | | $ 0.21 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| (A) 2014 second quarter: March 31, 2014 to June 29, 2014 |
2013 second quarter: April 1, 2013 to June 30, 2013 |
| (B) 2014 two quarters: December 30, 2013 to June 29, 2014 |
2013 two quarters: December 31, 2012 to June 30, 2013 |
| | | |
| | | |
| | | Table No. 6 |
| Journal Communications, Inc. |
| Consolidated Condensed Balance Sheets |
| (dollars in thousands) |
| | | | | | |
| | | June 29, 2014
(unaudited) | | | December 29,
2013 |
| ASSETS | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | | $ 1,756 | | | $ 1,912 |
| Receivables, net | | | 64,856 | | | 66,670 |
| Inventories, net | | | 1,828 | | | 2,191 |
| Prepaid expenses and other current assets | | | 4,451 | | | 3,305 |
| Syndicated programs | | | 2,592 | | | 2,816 |
| Deferred income taxes | | | 2,274 | | | 2,508 |
| Current assets of discontinued operations | | | - | | | 7,048 |
| Total current assets | | | 77,757 | | | 86,450 |
| Property and equipment, net | | | 154,911 | | | 160,549 |
| Syndicated programs | | | 4,131 | | | 5,162 |
| Goodwill | | | 121,987 | | | 124,702 |
| Broadcast licenses | | | 135,166 | | | 135,166 |
| Other intangible assets, net | | | 56,350 | | | 57,763 |
| Deferred income taxes | | | 16,263 | | | 20,125 |
| Other assets | | | 5,593 | | | 6,101 |
| Total assets | | | $ 572,158 | | | $ 596,018 |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Current liabilities: | | | | | | |
| Accounts payable | | | $ 23,228 | | | $ 22,154 |
| Accrued compensation | | | 8,390 | | | 9,134 |
| Accrued employee benefits | | | 5,342 | | | 4,865 |
| Deferred revenue | | | 16,058 | | | 15,459 |
| Syndicated programs | | | 2,144 | | | 2,247 |
| Accrued income taxes | | | 6,209 | | | 3,286 |
| Other current liabilities | | | 5,863 | | | 5,560 |
| Current portion of unsecured subordinated notes payable | | | 2,656 | | | 2,656 |
| Current portion of long-term notes payable to banks | | | 15,000 | | | 15,000 |
| Current portion of long-term liabilities | | | 264 | | | 276 |
| Current liabilities of discontinued operations | | | - | | | 885 |
| Total current liabilities | | | 85,154 | | | 81,522 |
| Accrued employee benefits | | | 64,293 | | | 64,541 |
| Syndicated programs | | | 4,644 | | | 5,741 |
| Long-term notes payable to banks | | | 129,375 | | | 179,950 |
| Unsecured subordinated notes payable | | | 10,623 | | | 10,623 |
| Other long-term liabilities | | | 3,808 | | | 3,554 |
| Shareholders' equity | | | 274,261 | | | 250,087 |
| Total liabilities and equity | | | $ 572,158 | | | $ 596,018 |
| | | | | | |
CONTACT:
Journal Communications, Inc.
Jason Graham
Senior Vice President – Finance, Chief Financial Officer
414-224-2884
