FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ending June 19, 1994
(6 Accounting Periods)
Commission file number 0-783l
JOURNAL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
WISCONSIN 39-0382060
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Journal Square, P.O. Box 661, 333 W. State St., Milwaukee, Wisconsin 5320l
(Address of principal executive offices) (Zip Code)
414-224-2728
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13
or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter
period that the registrant was required to file such
reports, and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
Number of share of Common Stock Outstanding - July 17, 1994 13,991,861
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
INDEX
Page No.
Part I. Financial Information
Consolidated Condensed Balance Sheets
June 19, 1994 and December 31, 1993 2
Condensed Consolidated Statements of Income
Six Periods Ended June 19, 1994
and June 20, 1993 3
Consolidated Condensed Statements of Cash Flows
Six Periods Ended June 19, 1994
and June 20, 1993 4
Notes to Consolidated Condensed
Financial Statements 5
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 6
Part II. Other Information 7
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-783l
(6 Accounting Periods)
Consolidated Condensed Balance Sheets
June 19, 1994 and December 31, 1993
(Dollars in thousands)
ASSETS 6/19/94 12/31/93
(Unaudited) (Note)
Current Assets:
Cash $ 15,954 $ 12,794
Short-term investments 39,537 50,166
Receivables 80,461 76,564
Inventories:
Paper and supplies 16,358 16,995
Work in process 7,205 5,538
Finished goods 3,394 3,410
-------- --------
26,957 25,943
Prepaid expenses 21,584 21,122
-------- --------
Total current assets 184,493 186,589
Property and equipment, less accumulated
depreciation of $252,086 and $240,730 198,817 189,146
Deferred charges and other assets 38,233 39,534
Goodwill 27,713 22,160
-------- --------
Total Assets $449,256 $437,429
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 25,825 $ 24,184
Taxes on income (2,147) 58
Accrued liabilities 55,226 47,795
Current portion of long-term obligations 3,687 3,543
-------- --------
Total current liabilities 82,591 75,580
Long-term obligations 2,906 3,679
Other liabilities and deferred credits 10,723 10,723
Stockholders' equity:
Common stock - Authorized and issued
14,400,000 ($0.25 par value) 3,600 3,600
Retained earnings 362,954 355,879
Treasury stock, at cost (13,518) (12,032)
-------- --------
Total stockholders' equity 353,036 347,447
-------- --------
Total liabilities and
stockholders' equity $449,256 $437,429
======== ========
Note: The balance sheet at December 31, 1993 has been derived from the
audited financial statements at that date but does not include all the
information and foot notes required by generally accepted accounting
principles for complete financial statements.
See accompanying notes to consolidated condensed financial statements.
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
Consolidated Condensed Statement of Income
(Dollars in thousands except share and per share amounts)
Three Periods Ended Six Periods Ended
6/19/94 6/20/93 6/19/94 6/20/93
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Sales $ 137,907 $ 125,186 $ 276,323 $ 252,375
---------- ---------- ---------- ----------
Operating costs and
expenses:
Cost of sales 83,808 76,902 168,684 155,315
Selling and
administrative expenses 37,806 33,750 75,555 66,338
---------- ---------- ---------- ----------
121,614 110,652 244,239 221,653
---------- ---------- ---------- ----------
Operating Earnings 16,293 14,534 32,084 30,722
Dividend and interest
income 425 396 811 859
Interest expense (53) (90) (94) (97)
---------- ---------- ---------- ---------
Earnings before income
taxes 16,665 14,840 32,801 31,484
Provision for income
taxes 6,764 5,915 13,238 12,547
---------- ---------- ---------- ----------
Net income $ 9,901 $ 8,925 $ 19,563 $ 18,937
========== ========== ========== ==========
Weighted average number
of common shares
outstanding 13,991,861 13,960,076 14,016,490 13,982,400
========== ========== ========== ==========
Earnings per share $ 0.71 $ 0.64 $ 1.40 $ 1.35
========= ========== ========== ==========
Cash dividend per share $ 0.45 $ 0.45 $ 0.90 $ 0.90
========= ========== ========== ==========
See accompanying notes to consolidated condensed financial statements.
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Six Periods Ended
6/19/94 6/20/93
(Unaudited) (Unaudited)
Cash flow from operating activities:
Net earnings $19,563 $18,937
Adjustments to net earnings for
Non-cash items:
Depreciation and amortization 18,887 17,506
(Increase) in accounts receivable (146) (3,413)
(Increase) in inventories (725) (823)
Increase (decrease) in accounts payable 704 (2,515)
Increase (decrease) in other current
assets and liabilities 368 (3,060)
------- -------
Net cash provided by operating activities 38,651 26,632
------- -------
Cash flow from investing activities:
Property and equipment expenditures (23,267) (13,981)
Assets of business acquired (6,904) (947)
Net (increase) decrease in short-term
investments 10,629 8,770
------- -------
Net cash used for investing activities (19,542) (6,158)
------- -------
Cash flow from financing activities:
Purchase of treasury stock (1,834) (2,575)
(Increase) decrease in long-term
obligations (1,881) 379
Sale and distribution of treasury stock 382 358
Cash dividends (12,616) (12,559)
------- -------
Net cash used for financing activities (15,949) (14,397)
------- -------
Net increase (decrease) in cash 3,160 6,077
Cash:
Beginning 12,794 10,987
------- -------
End $15,954 $17,064
======= =======
See notes to condensed consolidated financial statements.
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulations S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating
results for the six periods ended June 19, 1994, are not necessarily
indicative of the results that may be expected for the year ended
December 31, 1994. For further information, refer to the
consolidated financial statements and footnotes thereto included in
the Journal Communications, Inc. annual report on Form 10-K for the
year ended December 31, 1993.
2. The Registrant divides its calendar year into thirteen four-week
accounting periods, except that the first and thirteenth periods may
be longer or shorter to the extent necessary to make each accounting
year end on December 31. Registrant follows a practice of
publishing its financial statement at the end of the third
accounting period (its first quarter) and at the end of the sixth
accounting period (its second quarter), and at the end of the tenth
accounting period (its third quarter).
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
For the six periods year-to-date, revenues total $276,323,000, up
9.5%, while net earnings are $19,563,000, up 3.3% from the prior year.
Second quarter revenues and earnings also exceed last year's level with
revenues of $137,907,000, up 10.2% and net earnings of $9,901,000, an
increase of 10.9%.
Year-to-date revenues at all companies exceed the prior year's
results, led primarily by the strong performances of Journal/Sentinel
Inc., ADD, Inc., and WTMJ, Inc. Similarly, for the second quarter,
revenue performance is ahead of the 1993 pace for all companies except for
Nordoc Software Services.
Year-to-date, Journal/Sentinel Inc. revenue increased by 5.9%. With
good cost containment, much of the revenue growth is reaching the bottom
line, as operating earnings increased $3.3 million, or 18.5%. Continuing
to lead the way in revenue growth is classified advertising, which is up
11.5%. Run-of-paper, general advertising and retail advertising also are
above last year, although retail is not as strong as had been anticipated.
ADD, Inc. continues on to a third straight record year as year-to-date
sales are up $3,393,000 or 14.3% with operating earnings increasing
$640,000.
WTMJ, Inc. has year-to-date revenue up 8.6% to $26.6 million, and
earnings up $617,000, or 13.4%, primarily due to the Milwaukee and Las
Vegas television stations. WTMJ-AM continues to successfully reposition
itself in the marketplace, but is behind last year in revenue and
profitability.
Although Perry Printing Corp. achieved revenue growth of 5.6%,
operating earnings are down $1.8 million due to a 30% volume loss and
operational problems with a new press, both at the Baraboo facility.
Also, despite large revenue increases, the Norway and Watertown operations
are experiencing capacity and efficiency problems, contributing to the
poor earnings performance relative to the prior year. Imperial Printing
Co. and Nordoc Software Services revenue growth is $2.6 million ahead of a
year ago. However, operating earnings are behind last year due to start-
up costs at the Fremont, CA print facility, tighter margins and reduced
disk duplication volume.
MRC Telecommunications, Inc. continues its growth pattern, with
revenue and earnings up over a year ago. Year-to-date earnings are up
$550,000, or 13.4%, on revenue that is up $657,000, or 4.4%.
PrimeNet Data Systems has contributed $3,721,000 in revenue.
However, PrimeNet is currently operating at a loss as it continues to
position itself for future profitability.
Working capital remains strong at $101.9 million with total assets
being $449 million. During the quarter, dividends paid per share were
$0.45, or $0.90 year-to-date. There were no significant variations in the
Company's financial position during the second quarter of 1994. There are
no major outstanding commitments other than normal operating costs for
ongoing operations, which would require utilization of the Company's
capital resources.
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended June 19, 1994 Commission file number 0-7831
(6 Accounting Periods)
Part II. Other Information
Item 6 - Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K. There were no reports on Form 8-K filed
for the six accounting periods ended June 19, 1994.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JOURNAL COMMUNICATIONS, INC.
Registrant
Date August 1, 1994 ROBERT A. KAHLOR
Robert A. Kahlor,
Chairman of the Board
Date August 1, 1994 PETER P. JARZEMBINSKI
Peter P. Jarzembinski,
Senior Vice President of Finance