Exhibit 99
Journal Communications Reports Fourth Quarter and Full Year 2005 Results
MILWAUKEE--(BUSINESS WIRE)--Feb. 2, 2006--Journal Communications
(NYSE:JRN) today announced results for its fourth quarter and full
year ended December 25, 2005.
Note that for both the fourth quarter and full year 2005, results
include the operations of three new television stations whose assets
were acquired from Emmis Communications Corporation on December 5,
2005.
For the fourth quarter, basic and diluted earnings per share from
continuing operations were $0.23 and $0.22, respectively. This
compares to basic and diluted earnings per share from continuing
operations of $0.27 and $0.26, respectively, for the quarter ended
December 26, 2004. Net earnings decreased 26.5% to $16.7 million,
including $1.3 million in after-tax shut-down costs at our Louisiana
printing plant, compared to net earnings of $22.7 million. 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. In the fourth quarter 2005,
earnings from continuing operations were $16.5 million compared to
$20.0 million, a decrease of 17.8%.
For the full year ended December 25, 2005, net earnings of $66.2
million, including $2.2 million in hurricane-related and plant closure
costs, net of tax, were down 15.6% compared to $78.5 million. The
change in net income also reflects a reduction in 2005 of
approximately $15.5 million from political and Olympics advertising.
Earnings from continuing operations were $61.1 million compared to
$73.3 million for the full year ended December 26, 2004, a decrease of
16.6%.
Note that unless otherwise indicated, all comparisons are either
to the fourth quarter or the full year ended December 26, 2004. Both
quarters contained 91 days; fiscal year 2004 contained 361 days and
fiscal year 2005 contained 364 days.
"Clearly, in 2005 we did not achieve our financial plan," said
Steven J. Smith, chairman and chief executive officer. "In broadcast,
we were unable to fully replace $16.4 million in Olympics and
political revenue. Further, overall revenue in 2005 was negatively
impacted by the reduction in Norlight's carrier business and a highly
competitive telecommunications' enterprise market, soft auto
advertising across our media platforms and the disruptive effects of
Hurricane Katrina and the shutdown of our printing plant at our
community publishing group.
"On a positive note, we added excellent television stations to the
Journal Broadcast family through our December 2005 purchase of WFTX-TV
(FOX) in Fort Myers/Naples, Florida, and KGUN-TV (ABC) in Tucson,
Arizona. We also now program KMTV (CBS) in Omaha, Nebraska, under a
local marketing agreement. At our radio group, we saw improvement in
earnings and margin for the fifth consecutive year. Our daily
newspaper remained focused on margin improvement through ongoing
efficiencies and new revenue initiatives, and our community publishing
group recorded enhanced performance at a number of papers. At
Norlight, we signed new agreements with significant wholesale
customers and at IPC we moved closer to completing our transition back
to our core print business while improving operating results.
"Looking forward, we expect rapid integration of our new
television assets, with aggressive selling plans and continued careful
scrutiny of all expenses. We will continue to focus on margin
improvement in our Publishing operations through ongoing production
efficiencies, deployment of specialty publications, online revenue
initiatives such as a local search solution and further development of
our niche Web sites. In telecommunications, we are focused on growing
our enterprise business and expect that realignment on the wholesale
side will adjust downward in 2006 as we work through implementation of
new contracts."
Consolidated
For the fourth quarter, revenue from continuing operations
decreased 4.5% to $195.3 million compared to revenue of $204.4
million. Operating earnings from continuing operations decreased 14.6%
to $29.1 million, including $2.2 million in costs related to the
shutdown of our Louisiana printing plant, compared to $34.1 million.
Operating earnings margin was 14.9% compared to 16.7%. EBITDA (net
earnings excluding the gain from discontinued operations, net; total
other expense, net; provision for income taxes; depreciation; and
amortization) of $40.1 million decreased 13.0% compared to $46.1
million.
For the full year, revenue from continuing operations decreased
1.2% to $764.5 million compared to revenue of $773.4 million.
Operating earnings from continuing operations decreased 15.4% to
$105.2 million, including $3.7 million in costs related to the
hurricane and the shutdown of our Louisiana printing plant, compared
to $124.3 million. Operating earnings margin was 13.8% compared to
16.1%. EBITDA of $149.3 million decreased 11.8% compared to $169.3
million.
Publishing
For the fourth quarter, publishing revenue decreased 3.8% to $85.4
million compared to $88.7 million, reflecting, in part, the shutdown
of our printing plant in New Orleans. Operating earnings from
publishing decreased 14.6% to $9.4 million compared to $11.1 million,
reflecting pre-tax hurricane- and plant closure-related costs of $2.2
million.
For the full year, publishing revenue of $339.0 million was
essentially flat compared to $338.9 million. Operating earnings from
publishing decreased 4.6% to $41.7 million -- including hurricane- and
plant closure-related costs of $3.7 million -- compared to $43.7
million.
Milwaukee Journal Sentinel Financial Statement Reporting Changes
Previously, in monthly revenue releases regarding the Milwaukee
Journal Sentinel, the "Other Advertising Revenue" category had
included such items as Online, Shared Mail, Event Marketing, Solo Mail
and Direct Print. Effective in Period 12 (December) and going forward,
these items are being reported in the traditional categories of
Classified, Retail and National, with the exception of Solo Mail,
which is now reflected in the new classification, "Direct Marketing."
The advertising classification previously labeled "General" is now
called "National." Further, any advertising that runs in the
classified section of our daily newspaper's various products --
including Online, mke and specialty publications -- is now included in
the pertinent classified verticals of Employment, Auto, Real Estate
and Other.
Lastly, Journal Sentinel has revised circulation revenue numbers
for 2004 and 2005, reflecting a change in the way we are reporting
carrier compensation. We are now recording circulation revenue on a
retail, rather than a wholesale (net), basis -- as do many newspapers.
The impact is an increase in revenue offset by a like amount in
increased operating expense. This reclassification has no impact on
earnings. In the 2004 and 2005 fourth quarters, the impact to
circulation revenue was $2.8 million and $2.7 million, respectively.
For reference, a twelve-period 2004 and 2005 table -- which
reflects these changes -- is attached to the December revenue release,
which we issued this morning.
Broadcasting
For the fourth quarter, Broadcasting revenue decreased 6.9% to
$47.7 million compared to $51.2 million. Broadcasting operating
earnings of $13.6 million were down 9.5% compared to $15.0 million.
The fourth quarter 2005 was marked by challenging comparatives for
political and issue advertising (primarily for television) and
continued overall softness in advertising, particularly at our NBC
television stations. Also in the fourth quarter 2005, a pre-tax gain
of $0.6 million was recorded from the sale of radio station KHLP-AM in
Omaha.
For the fourth quarter, revenue from television stations decreased
10.6% to $24.9 million compared to $27.9 million. In the fourth
quarter 2005, political and issue advertising revenue for television
declined $5.9 million. Operating earnings from television stations
decreased 33.7% to $6.1 million compared to $9.2 million. Excluding
the new television operations acquired in December 2005, revenue
decreased 21.0% and operating earnings decreased 42.8%.
For the fourth quarter, revenue from radio stations of $22.8
million was down 2.5% compared to $23.3 million. In the fourth quarter
2005, political and issue advertising revenue for radio declined $0.6
million. Operating earnings from radio stations increased 28.6% to
$7.5 million compared to $5.8 million. Included in the fourth quarter
2005 was the $0.6 million gain on the radio station sale.
For the full year, Broadcasting revenue decreased 2.2% to $168.3
million compared to $172.1 million. Broadcasting operating earnings
decreased 21.0% to $35.1 million compared to $44.4 million. The
decrease was caused by challenging comparatives for political and
issue advertising and for the 2004 Summer Olympics, as well as
continued overall softness in television advertising.
For the full year, revenue from television stations decreased 6.5%
to $84.0 million compared to $89.8 million. For the full year 2005,
political and issue advertising revenue for television declined $12.0
million. In 2004, Olympics revenue totaled $2.5 million. For the full
year 2005, operating earnings from television stations decreased 50.5%
to $12.2 million compared to $24.6 million. Excluding the newly
acquired television operations and the Green Bay station acquired in
October 2004, revenue decreased 17.3% and operating earnings decreased
52.7%.
For the full year, revenue from radio stations of $84.3 million
was up 2.5% compared to $82.3 million. For the full year 2005,
political and issue advertising revenue for radio declined $1.0
million. Operating earnings from radio stations increased 15.5% to
$22.9 million compared to $19.8 million.
Telecommunications
For the fourth quarter, revenue from telecommunications decreased
6.2% to $33.7 million from $35.9 million due to lower prices and
service disconnections. Operating earnings from telecommunications
decreased 43.7% to $4.6 million compared to $8.2 million due to lower
revenues, a change in product mix and increased operating costs
associated with the enterprise business.
For the full year, revenue from telecommunications decreased 2.0%
to $141.1 million from $144.0 million. Operating earnings from
telecommunications decreased 30.9% to $24.0 million compared to $34.7
million.
Printing Services
For the fourth quarter, revenue from printing services decreased
1.8% to $18.8 million from $19.2 million. Operating earnings from
printing services were $1.0 million compared to break-even, reflecting
the ongoing successful strategic transition back to the core printing
business and a continued emphasis on strict cost control.
For the full year, revenue from printing services decreased 5.0%
to $72.5 million from $76.3 million. Operating earnings from printing
services increased to $2.3 million compared to a loss of $0.4 million.
Other
For the fourth quarter, revenue for "Other" of $9.8 million
increased 3.5% compared to revenue of $9.4 million. "Other" operating
earnings increased to $0.5 million from a loss of $0.1 million. For
the full year, revenue for "Other" of $43.6 million increased 3.6%
compared to revenue of $42.1 million. "Other" operating earnings
increased 10.4% to $2.1 million from $1.9 million.
Stock Repurchase Program
During the fourth quarter 2005, the Company repurchased 1,273,700
shares of its class A common stock. Through December 25, 2005, the
Company had repurchased 3,434,995 class A shares.
First Quarter 2006 Guidance
For the first quarter of 2006, Journal Communications currently
anticipates revenue to be between $187 million and $192 million and
net earnings to be between $10.5 million and $12.5 million.
Webcast of Conference Call
A live webcast of the fourth quarter and full year 2005 conference
call will be accessible through
www.journalcommunications.com/investors beginning at 10:00 a.m. CT
this morning. An archive of the webcast will be available on this site
today through February 16. To access the call, dial 866-271-0675
(domestic) or 617-213-8892 (international) at least 10 minutes prior
to the scheduled 10 a.m. CT start. The access code for the conference
call is 82028618. Replays of the conference call will be available
February 2 through February 4. To hear the replay, dial 888-286-8010
(domestic) or 617-801-6888 (international). The access code for the
replay is 91971760.
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 about 90
community newspapers and shoppers in eight states. We own and operate
37 radio stations and nine television stations in 12 states and
operate two television stations under local marketing agreements.
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 of 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
Journal Communications, Inc.
Consolidated Statements of Earnings (unaudited)
(dollars in thousands, except for shares and per-share amounts)
Fourth Quarter (A)
-----------------------
2005 2004 % Change
----------- ----------- ----------
Continuing Operations:
Revenue:
Publishing $85,390 $88,736 (3.8)
Broadcasting 47,687 51,226 (6.9)
Telecommunications 33,684 35,893 (6.2)
Printing services 18,819 19,162 (1.8)
Other 9,754 9,426 3.5
----------- -----------
Total revenue 195,334 204,443 (4.5)
Operating costs and expenses:
Publishing 44,851 45,725 (1.9)
Broadcasting 19,546 19,434 0.6
Telecommunications 22,083 21,688 1.8
Printing services 15,658 16,613 (5.7)
Other 8,449 7,829 7.9
----------- -----------
Total operating costs and expenses 110,587 111,289 (0.6)
Selling and administrative expenses 55,621 59,055 (5.8)
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 166,208 170,344 (2.4)
----------- -----------
Operating earnings 29,126 34,099 (14.6)
Other income and (expense):
Interest income and dividends 56 96
Interest expense (2,125) (705)
----------- -----------
Total other income and (expense) (2,069) (609)
Earnings from continuing operations
before income taxes 27,057 33,490 (19.2)
Provision for income taxes 10,592 13,456 (21.3)
----------- -----------
Earnings from continuing operations 16,465 20,034 (17.8)
Gain from discontinued operations,
net of applicable tax expense
of $61, $1,710, $3,123 and
$3,269, respectively 236 2,695
----------- -----------
Net earnings $16,701 $22,729 (26.5)
=========== ===========
Weighted average number of shares:
Basic 69,504,933 72,210,561
Diluted 73,971,680 76,665,565
Earnings per share:
Basic:
Continuing operations $0.23 $0.27 (14.8)
Discontinued operations - 0.04 N/A
----------- -----------
Net earnings $0.23 $0.31 (25.8)
=========== ===========
Diluted:
Continuing operations $0.22 $0.26 (15.4)
Discontinued operations 0.01 0.04 (75.0)
----------- -----------
Net earnings $0.23 $0.30 (23.3)
=========== ===========
Four Quarters (B)
-----------------------
2005 2004 % Change
----------- ----------- ----------
Continuing Operations:
Revenue:
Publishing $339,002 $338,896 0.0
Broadcasting 168,316 172,073 (2.2)
Telecommunications 141,087 144,020 (2.0)
Printing services 72,463 76,308 (5.0)
Other 43,593 42,075 3.6
----------- -----------
Total revenue 764,461 773,372 (1.2)
Operating costs and expenses:
Publishing 176,316 173,155 1.8
Broadcasting 73,722 68,832 7.1
Telecommunications 89,486 85,870 4.2
Printing services 61,291 66,519 (7.9)
Other 37,316 34,925 6.8
----------- -----------
Total operating costs and expenses 438,131 429,301 2.1
Selling and administrative expenses 221,170 219,728 0.7
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 659,301 649,029 1.6
----------- -----------
Operating earnings 105,160 124,343 (15.4)
Other income and (expense):
Interest income and dividends 318 335
Interest expense (3,960) (2,280)
----------- -----------
Total other income and (expense) (3,642) (1,945)
Earnings from continuing operations
before income taxes 101,518 122,398 (17.1)
Provision for income taxes 40,369 49,066 (17.7)
----------- -----------
Earnings from continuing operations 61,149 73,332 (16.6)
Gain from discontinued operations,
net of applicable tax expense
of $61, $1,710, $3,123 and
$3,269, respectively 5,094 5,148
----------- -----------
Net earnings $66,243 $78,480 (15.6)
=========== ===========
Weighted average number of shares:
Basic 70,944,842 72,931,102
Diluted 75,415,309 77,386,883
Earnings per share:
Basic:
Continuing operations $0.84 $0.98 (14.3)
Discontinued operations 0.07 0.07 -
----------- -----------
Net earnings $0.91 $1.05 (13.3)
=========== ===========
Diluted:
Continuing operations $0.81 $0.95 (14.7)
Discontinued operations 0.07 0.06 16.7
----------- -----------
Net earnings $0.88 $1.01 (12.9)
=========== ===========
(A) 2005 fourth quarter: September 26, 2005 to December 25, 2005.
2004 fourth quarter: September 27, 2004 to December 26, 2004.
(B) 2005 four quarters: December 27, 2004 to December 25, 2005.
2004 four quarters: January 1, 2004 to December 26, 2004.
Journal Communications, Inc.
Segment Information (unaudited)
(dollars in thousands)
Fourth Quarter (A)
-----------------------
2005 2004 % Change
----------- ----------- ----------
Revenue
- -------
Publishing $85,390 $88,736 (3.8)
Broadcasting 47,687 51,226 (6.9)
Telecommunications 33,684 35,893 (6.2)
Printing services 18,819 19,162 (1.8)
Other 9,754 9,426 3.5
----------- -----------
$195,334 $204,443 (4.5)
=========== ===========
Operating earnings
- ------------------
Publishing $9,448 $11,057 (14.6)
Broadcasting 13,569 14,986 (9.5)
Telecommunications 4,616 8,205 (43.7)
Printing services 960 (12) N/A
Other 533 (137) N/A
----------- -----------
$29,126 $34,099 (14.6)
=========== ===========
Depreciation and amortization
- -----------------------------
Publishing $3,514 $4,280 (17.9)
Broadcasting 2,356 2,464 (4.4)
Telecommunications 4,385 4,472 (1.9)
Printing services 503 628 (19.9)
Other 192 113 69.9
----------- -----------
$10,950 $11,957 (8.4)
=========== ===========
Four Quarters (B)
-----------------------
2005 2004 % Change
----------- ----------- ----------
Revenue
- -------
Publishing $339,002 $338,896 0.0
Broadcasting 168,316 172,073 (2.2)
Telecommunications 141,087 144,020 (2.0)
Printing services 72,463 76,308 (5.0)
Other 43,593 42,075 3.6
----------- -----------
$764,461 $773,372 (1.2)
=========== ===========
Operating earnings
- ------------------
Publishing $41,677 $43,708 (4.6)
Broadcasting 35,094 44,404 (21.0)
Telecommunications 23,959 34,691 (30.9)
Printing services 2,324 (367) N/A
Other 2,106 1,907 10.4
----------- -----------
$105,160 $124,343 (15.4)
=========== ===========
Depreciation and amortization
- -----------------------------
Publishing $14,319 $15,855 (9.7)
Broadcasting 8,910 8,516 4.6
Telecommunications 18,082 17,465 3.5
Printing services 2,085 2,381 (12.4)
Other 770 749 2.8
----------- -----------
$44,166 $44,966 (1.8)
=========== ===========
(A) 2005 fourth quarter: September 26, 2005 to December 25, 2005.
2004 fourth quarter: September 27, 2004 to December 26, 2004.
(B) 2005 four quarters: December 27, 2004 to December 25, 2005.
2004 four quarters: January 1, 2004 to December 26, 2004.
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
- -------------------------------
Fourth Quarter of 2005 (A)
--------------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
------------ ------------ ------------
Advertising revenue:
Retail $26,233 $13,501 $39,734
Classified 15,834 2,414 18,248
National 2,257 -- 2,257
Direct Marketing 2,753 -- 2,753
Other -- 397 397
------------ ------------ ------------
Total advertising revenue 47,077 16,312 63,389
Circulation revenue 13,128 747 13,875
Other revenue 1,928 6,198 8,126
------------ ------------ ------------
Total revenue $62,133 $23,257 $85,390
============ ============ ============
Fourth Quarter of 2004 (A)
--------------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
------------ ------------ ------------
Advertising revenue:
Retail $27,133 $14,052 $41,185
Classified 16,055 2,206 18,261
National 3,024 -- 3,024
Direct Marketing 2,718 -- 2,718
Other -- 427 427
------------ ------------ ------------
Total advertising revenue 48,930 16,685 65,615
Circulation revenue 13,716 699 14,415
Other revenue 1,238 7,468 8,706
------------ ------------ ------------
Total revenue $63,884 $24,852 $88,736
============ ============ ============
% Change % Change % Change
Daily CN&S Total
------------ ------------ ------------
Advertising revenue:
Retail (3.3) (3.9) (3.5)
Classified (1.4) 9.4 (0.1)
National (25.4) N/A (25.4)
Direct Marketing 1.3 N/A 1.3
Other N/A (7.0) (7.0)
Total advertising revenue (3.8) (2.2) (3.4)
Circulation revenue (4.3) 6.9 (3.7)
Other revenue 55.7 (17.0) (6.7)
Total revenue (2.7) (6.4) (3.8)
Four Quarters of 2005 (B)
--------------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
------------ ------------ ------------
Advertising revenue:
Retail $93,812 $54,778 $148,590
Classified 70,040 9,841 79,881
National 10,188 -- 10,188
Direct Marketing 7,561 -- 7,561
Other -- 1,792 1,792
------------ ------------ ------------
Total advertising revenue 181,601 66,411 248,012
Circulation revenue 52,932 2,912 55,844
Other revenue 7,496 27,650 35,146
------------ ------------ ------------
Total revenue $242,029 $96,973 $339,002
============ ============ ============
Four Quarters of 2004 (B)
--------------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
------------ ------------ ------------
Advertising revenue:
Retail $93,638 $55,496 $149,134
Classified 67,294 9,112 76,406
National 11,527 -- 11,527
Direct Marketing 7,867 -- 7,867
Other -- 1,907 1,907
------------ ------------ ------------
Total advertising revenue 180,326 66,515 246,841
Circulation revenue 54,434 2,868 57,302
Other revenue 5,544 29,209 34,753
------------ ------------ ------------
Total revenue $240,304 $98,592 $338,896
============ ============ ============
% Change % Change % Change
Daily CN&S Total
------------ ------------ ------------
Advertising revenue:
Retail 0.2 (1.3) (0.4)
Classified 4.1 8.0 4.5
National (11.6) N/A (11.6)
Direct Marketing (3.9) N/A (3.9)
Other N/A (6.0) (6.0)
Total advertising revenue 0.7 (0.2) 0.5
Circulation revenue (2.8) 1.5 (2.5)
Other revenue 35.2 (5.3) 1.1
Total revenue 0.7 (1.6) 0.0
(A) 2005 fourth quarter: September 26, 2005 to December 25, 2005.
2004 fourth quarter: September 27, 2004 to December 26, 2004.
(B) 2005 four quarters: December 27, 2004 to December 25, 2005.
2004 four quarters: January 1, 2004 to December 26, 2004.
NOTE:
1) 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.
2) The tables above reflect the reclassifications of advertising
revenue categories and revised circulation revenue, as discussed
in detail in the body of the press release.
Daily newspaper's core newspaper advertising linage by category:
- ----------------------------------------------------------------
Fourth Quarter (A)
-------------------------
2005 2004 % Change
------------ ------------ ------------
Advertising linage (inches):
Full run
Retail 170,984 199,165 (14.1)
Classified 170,827 195,104 (12.4)
National 11,028 14,072 (21.6)
------------ ------------
Total full run 352,839 408,341 (13.6)
Part run 40,940 50,654 (19.2)
------------ ------------
Total advertising linage 393,779 458,995 (14.2)
============ ============
Preprint pieces (in thousands) 258,435 234,057 10.4
============ ============
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
- ---------------------------------------------------------------
Full pages of advertising:
Community newspapers 23,014 25,200 (8.7)
Shoppers and specialty
products 26,182 27,422 (4.5)
------------ ------------
Total full pages of advertising 49,196 52,622 (6.5)
============ ============
Revenue per page $292.87 $281.27 4.1
============ ============
Daily newspaper's core newspaper advertising linage by category:
- ----------------------------------------------------------------
Four Quarters (B)
-------------------------
2005 2004 % Change
------------ ------------ ------------
Advertising linage (inches):
Full run
Retail 687,132 724,220 (5.1)
Classified 773,032 845,014 (8.5)
National 45,074 54,213 (16.9)
------------ ------------
Total full run 1,505,238 1,623,447 (7.3)
Part run 167,047 172,125 (3.0)
------------ ------------
Total advertising linage 1,672,285 1,795,572 (6.9)
============ ============
Preprint pieces (in thousands) 895,598 800,700 11.9
============ ============
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
- ----------------------------------------------------------------
Full pages of advertising:
Community newspapers 91,659 100,156 (8.5)
Shoppers and specialty
products 107,847 108,979 (1.0)
------------ ------------
Total full pages of advertising 199,506 209,135 (4.6)
============ ============
Revenue per page $296.41 $282.96 4.8
============ ============
(A) 2005 fourth quarter: September 26, 2005 to December 25, 2005.
2004 fourth quarter: September 27, 2004 to December 26, 2004.
(B) 2005 four quarters: December 27, 2004 to December 25, 2005.
2004 four quarters: January 1, 2004 to December 26, 2004.
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. All data are
subject to later adjustment.
Journal Communications, Inc.
Reconciliation of our consolidated net earnings to consolidated EBITDA
(unaudited)
(dollars in thousands)
Fourth Quarter (A) Four Quarters (B)
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Net earnings $16,701 $22,729 $66,243 $78,480
Gain from discontinued
operations, net (236) (2,695) (5,094) (5,148)
Provision for income taxes 10,592 13,456 40,369 49,066
Total other expenses, net 2,069 609 3,642 1,945
Depreciation 10,562 11,666 42,803 43,570
Amortization 388 291 1,363 1,396
--------- --------- --------- ---------
EBITDA $40,076 $46,056 $149,326 $169,309
========= ========= ========= =========
(A) 2005 fourth quarter: September 26, 2005 to December 25, 2005.
2004 fourth quarter: September 27, 2004 to December 26, 2004.
(B) 2005 four quarters: December 27, 2004 to December 25, 2005.
2004 four quarters: January 1, 2004 to December 26, 2004.
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
U.S. generally accepted accounting principles. 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 Sheets
(dollars in thousands)
December 25,
2005 December 26,
(unaudited) 2004
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $6,864 $6,374
Receivables, net 90,146 89,690
Inventories, net 9,647 10,450
Prepaid expenses 14,279 13,302
Deferred income taxes 9,968 8,903
Investment in preferred stock - 4,394
Current assets of discontinued operations - 11,672
------------ ------------
Total current assets 130,904 144,785
Property and equipment, net 316,911 297,405
Goodwill 276,339 136,286
Broadcast licenses 174,835 140,046
Other intangible assets, net 41,663 14,753
Prepaid pension costs 18,348 23,787
Other assets 25,104 8,565
Non-current assets of discontinued
operations 307 8,892
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Total assets $984,411 $774,519
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $40,671 $39,239
Accrued compensation 18,532 22,364
Deferred revenue 18,971 20,255
Accrued employee benefits 9,467 10,171
Other current liabilities 15,516 12,518
Current liabilities of discontinued
operations 205 7,273
Current portion of long-term liabilities 5,053 3,600
------------ ------------
Total current liabilities 108,415 115,420
Accrued employee benefits 20,280 17,839
Long-term notes payable to banks 274,545 70,310
Deferred income taxes 65,630 64,491
Other long-term liabilities 31,473 16,964
Shareholders' equity 484,068 489,495
------------ ------------
Total liabilities and shareholders' equity $984,411 $774,519
============ ============
CONTACT: Journal Communications, Inc.
Sara Leuchter Wilkins, 414-224-2633
swilkins@journalcommunications.com