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 October 9, 1994
(10 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 53201
(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 - October 9, 1994 14,051,871
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
Quarter Ended October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
INDEX
Page No.
Part I. Financial Information
Consolidated Condensed Balance Sheets
October 9, 1994 and December 31, 1993 2
Consolidated Condensed Statements of Income
Ten Periods Ended October 9, 1994
and October 10, 1993 3
Consolidated Condensed Statements of Cash Flows
Ten Periods Ended October 9, 1994
and October 10, 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 October 9, 1994 Commission file number 0-783l
(10 Accounting Periods)
Consolidated Condensed Balance Sheets
October 9, 1994 and December 31, 1993
(Dollars in thousands)
ASSETS 10/9/94 12/31/93
(Unaudited) (Note)
Current Assets:
Cash $ 15,003 $ 12,794
Short-term investments 35,954 50,166
Receivables 94,015 76,564
Inventories:
Paper and supplies 17,902 16,995
Work in process 9,430 5,538
Finished goods 5,498 3,410
-------- --------
32,830 25,943
Prepaid expenses 22,577 21,122
-------- --------
Total current assets 200,379 186,589
Property and equipment, less accumulated
depreciation of $254,754 and $240,730 198,893 189,146
Deferred charges and other assets 44,469 39,534
Goodwill 27,489 22,160
-------- --------
Total Assets $471,230 $437,429
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,210 $ 24,184
Taxes on income 448 58
Accrued liabilities 56,696 47,795
Current portion of long-term obligations 3,000 3,543
-------- --------
Total current liabilities 94,354 75,580
Long-term obligations 3,889 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 370,272 355,879
Treasury stock, at cost (11,608) (12,032)
-------- --------
Total stockholders' equity 362,264 347,447
-------- --------
Total liabilities and
stockholders' equity $471,230 $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 October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
Consolidated Condensed Statement of Income
(Dollars in thousands except share and per share amounts)
Four Periods Ended Ten Periods Ended
10/09/94 10/10/93 10/09/94 10/10/93
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Sales $ 194,518 $ 172,658 $ 470,841 $ 425,033
---------- ---------- ---------- ----------
Operating costs and
expenses:
Cost of sales 121,179 106,799 289,863 262,114
Selling and
administrative expenses 51,669 45,589 127,224 111,927
---------- ---------- ---------- ----------
172,848 152,388 417,087 374,041
---------- ---------- ---------- ----------
Operating Earnings 21,670 20,270 53,754 50,992
Dividend and interest
income 552 506 1,363 1,365
Interest expense (68) (58) (162) (155)
---------- ---------- ---------- ---------
Earnings before income
taxes 22,154 20,718 54,955 52,202
Provision for income
taxes 8,898 8,378 22,136 20,925
---------- ---------- ---------- ----------
Net income $ 13,256 $ 12,340 $ 32,819 $ 31,277
========== ========== ========== ==========
Weighted average number
of common shares
outstanding 14,006,869 13,960,096 14,012,669 13,973,573
========== ========== ========== ==========
Earnings per share $ 0.94 $ 0.89 $ 2.34 $ 2.24
========= ========== ========== ==========
Cash dividend per share $ 0.45 $ 0.45 $ 1.35 $ 1.35
========= ========== ========== ==========
See accompanying notes to consolidated condensed financial statements.
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
Consolidated Condensed Statement of Cash Flows
(Dollars in thousands)
Ten Periods Ended
10/09/94 10/10/93
(Unaudited) (Unaudited)
Cash flow from operating activities:
Net earnings $32,819 $31,277
Adjustments to net earnings for
Non-cash items:
Depreciation and amortization 31,475 28,444
(Increase) in accounts receivable (13,269) (12,956)
(Increase) in inventories (6,443) (2,819)
Increase (decrease) in accounts payable 8,064 2,525
Increase (decrease) in other current
assets and liabilities (931) (3,569)
------- -------
Net cash provided by operating
activities 51,715 42,902
------- -------
Cash flow from investing activities:
Property and equipment expenditures (31,083) (24,974)
Assets of business acquired (12,488) (1,538)
Assets of business disposed 32 --
Net (increase) decrease in short-term
investments 14,212 10,021
------- -------
Net cash used for investing activities (29,327) (16,491)
------- -------
Cash flow from financing activities:
Purchase of treasury stock (1,834) (2,575)
(Increase) decrease in long-term
obligations (1,898) 2,091
Sale and distribution of treasury stock 2,493 361
Cash dividends (18,940) (18,841)
------- -------
Net cash used for financing activities (20,179) (18,964)
------- -------
Net increase (decrease) in cash 2,209 7,447
Cash:
Beginning 12,794 10,987
------- -------
End $15,003 $18,434
======= =======
See notes to condensed consolidated financial statements.
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
Notes to Consolidated Condensed 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 ten periods ended October 9, 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 October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
Third quarter revenues were $194,518,000, an increase of 12.7% over 1993.
However, expenses also were up, and as a result, net earnings were
$13,256,000, up 7.4% over the prior year.
For the 10 periods year-to-date, revenues total $470,841,000, up 10.8%.
Year-to-date, net earnings were $32,819,000, up 4.9%. We expect business
to pick up in the fourth quarter with the strengthening retail market for
our publishing and broadcasting operations, and new customers in our
printing businesses.
During the third quarter, Journal/Sentinel Inc. revenue was up almost $5
million over the previous year. Operating earnings were up 14.7%. The
revenue increase is a result of a 15% growth in classified advertising
over a year ago, while retail sales were up 7%.
Third quarter sales at WTMJ Inc. were up $3,101,000, or 19.5%. Third
quarter 1994 earnings were up $2,226,000. Increases were particularly
strong at WTMJ-AM with its broadcasts of the Green Bay Packers, and at our
ABC affiliate in Las Vegas, Nev., KTNV-TV. Political revenue at KTNV was
more than six times the quarterly budget, and spot revenue was up 21% over
last year.
At Perry Printing Corp. revenue for the quarter was up 11.5%, and earnings
were up $926,000. Operating earnings at Waterloo are ahead of both budget
and last year. However, Baraboo has a year-to-date loss due to the loss
of the newspaper free standing insert volume from Sullivan Marketing and
the continued difficulty of getting the new M-3000 press operational.
NorthStar Print Group Inc. had sales up $1,206,000, but earnings dropped.
The Norway/Watertown operation is struggling with a change from foil to
metalized paper for beer labels. Both Milwaukee and Label Products &
Design are having a good year, with earnings ahead of budget and a year
ago.
ADD Inc. continues its record-setting pace, with sales for the quarter up
$3,702,000 over a year ago, and earnings up $1,086,000. The Wisconsin
operations are making their budget target, and the Ohio operations are
exceeding theirs. The Carrier Pigeon is continuing a successful
turnaround, and Trumbull Printing has been very successful in attracting
new business.
MRC Telecommunications Inc. had quarterly sales up 9.8%, with earnings up
9.7%, which is below budget but ahead of last year.
IPC Software/Publishing Services had a sales increase of $1,509,000, but
earnings dropped $1,472,000. The start-up of a printing operation at the
Fremont, Calif., plant has had a negative impact on earnings. Nordoc
Software Services in France was behind the earnings budget for the
quarter, but improved during the 10th period.
PrimeNet DataSystems contributed $5,949,000 in revenue during the first 10
periods of the year. PrimeNet has been operating at a loss, but is now
beginning to market its proprietary software products.
Working capital remains strong at $106 million, while total assets now
exceed $471 million. Total stockholders equity is $362.3 million. During
the quarter, dividends paid per share were $.45 or $1.35 year-to-date.
There were no significant charges in the Company's financial position
during the third quarter of 1994. There are no major outstanding
commitments other than for normal operations that would require
utilization of the Company's capital resources.
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended October 9, 1994 Commission file number 0-7831
(10 Accounting Periods)
Part II. Other Information
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits.
27 Financial Data Schedule
(b) Reports on Form 8-K. There were no reports on Form 8-K filed
for the ten accounting periods ended October 9, 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 11/22/94 ROBERT A. KAHLOR
Robert A. Kahlor, Chairman of the Board
Date 11/22/94 PETER P. JARZEMBINSKI
Peter P. Jarzembinski, Senior Vice President
of Finance
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedule