Exhibit 99
Journal Communications Reports Third Quarter Results
MILWAUKEE--(BUSINESS WIRE)--Oct. 17, 2006--Journal Communications
(NYSE:JRN) today announced financial results for its third quarter
ended September 24, 2006.
Note that the third quarter 2006 results include the operations of
three television stations whose assets were acquired on December 5,
2005. Also note that, unless otherwise indicated, all comparisons are
to the third quarter ended September 25, 2005. Both quarters contained
91 days.
Revenue from continuing operations of $194.3 million increased
3.7% compared to $187.4 million. Earnings from continuing operations
were $14.5 million compared to $14.0 million, an increase of 3.7%. Net
earnings were $13.5 million compared to net earnings of $14.0 million,
a decrease of 3.5%. In the third quarter 2006, Journal Communications
recorded a $1.0 million loss from discontinued operations, net of tax,
from a purchase price adjustment related to the sale of NorthStar
Print Group.
Basic and diluted earnings per share from continuing operations
were $0.21 and $0.20, respectively, compared to $0.19 for both. Basic
and diluted earnings per share from net earnings were $0.19 for both
compared to $0.19 for both.
"Our broadcast group continued its strong performance in the third
quarter, recording significant growth in revenue and earnings. We
experienced robust political and local advertising revenue at our
television stations as well as appreciable growth in national business
at our radio properties. Our three new television stations continued
their solid performance. Beyond the acquisitions, our TV stations in
Las Vegas, Palm Springs, Lansing and Green Bay and our radio clusters
in Knoxville, Boise and Tulsa posted sizable growth in both revenue
and operating earnings. We are encouraged by television's fourth
quarter pacing, particularly for political revenue," said Steven J.
Smith, chairman and chief executive officer of Journal Communications.
"Our daily newspaper had a disappointing third quarter, impacted
negatively by continued weakness in automotive classified advertising
and a decline in retail advertising. In the last period of the
quarter, however, classified trends were slightly more encouraging for
help wanted and real estate. Interactive revenue continues to be
strong, up 32.5% to $2.5 million in the third quarter. Journal
Sentinel remains focused on cost containment, with payroll expenses at
the daily newspaper down 2.4% and other expenses essentially flat.
"In the third quarter, Journal Sentinel signed a five-year
agreement to print the national edition of USA TODAY for distribution
in the northern and western suburbs of Chicago and the eastern half of
Wisconsin. Journal Community Publishing Group, in an effort to enhance
capacity utilization and streamline its printing operation, will close
its Hartland, Wisconsin commercial printing plant and consolidate the
company's Wisconsin printing operations at its Waupaca facility.
"Late in the third quarter, Norlight kicked off 'IP Live' - its
newest integrated communications offering - in Green Bay and Madison.
Norlight's revenue and earnings continue to be negatively impacted by
ongoing anticipated lower contract pricing in the wholesale business
and significant competitive pricing pressure in the commercial
business. Costs related to both the proposed spin-off and the start-up
of 'IP Live' further reduced Norlight's earnings in the quarter."
Consolidated
For the third quarter, revenue of $194.3 million increased 3.7%
compared to revenue of $187.4 million in the third quarter 2005.
Operating earnings increased 17.0% to $28.3 million. Operating
earnings margin was 14.6% compared to 12.9%. EBITDA (net earnings
excluding the gain/loss from discontinued operations, net; total other
expense, net; provision for income taxes; depreciation; and
amortization) of $39.9 million increased 14.0% compared to $35.0
million.
Publishing
For the third quarter, publishing revenue decreased 5.1% to $80.4
million compared to $84.7 million, reflecting, in part, the shutdown
of our printing plant in New Orleans in late 2005 and weakness in auto
advertising. Operating earnings from publishing decreased 6.6% to $9.7
million compared to $10.4 million, which included pre-tax
hurricane-related costs of $1.6 million.
Broadcasting
For the third quarter, broadcasting revenue increased 43.8% to
$58.3 million compared to $40.5 million. Broadcasting operating
earnings of $15.1 million were up 108.4% compared to $7.2 million.
For the third quarter, revenue from television stations increased
90.0% to $35.3 million compared to $18.6 million. In the third quarter
2006, revenue from our new television stations totaled $12.6 million.
Total television political advertising was $3.8 million, including
$0.9 million from our new stations. Operating earnings from television
stations increased 667.5% to $7.7 million compared to $1.0 million.
Excluding the new television operations acquired in December 2005,
revenue increased 22.0% and operating earnings increased 298.7%.
For the third quarter, revenue from radio stations of $23.0
million was up 4.7% compared to $21.9 million. In the third quarter
2006, revenue from radio political advertising totaled $0.4 million.
Operating earnings from radio stations of $7.4 million increased 18.9%
compared to $6.2 million.
Telecommunications
For the third quarter, revenue from telecommunications decreased
8.3% to $31.0 million from $33.8 million due to lower contract pricing
and service disconnections. Operating earnings from telecommunications
decreased 50.4% to $2.4 million compared to $4.9 million due to lower
revenues in the wholesale business and continued competitive pressure
in the commercial business. In the third quarter 2006, operating
earnings at Norlight were also negatively impacted by $0.7 million in
expenses related to the proposed spin-off and $0.6 million in start-up
costs related to the "IP Live" initiative.
Printing Services
For the third quarter, revenue from printing services decreased
10.4% to $15.4 million from $17.3 million, largely due to the expected
decline in revenue from Dell Computer Corporation and other software
customers, partially offset by $1.9 million in new print business.
Operating earnings from printing services were $0.4 million compared
to $0.6 million. This decline reflects nearly $0.3 million in one-time
excess direct costs due to the startup of IPC's rebuilt binding line.
Other
For the third quarter, revenue for "Other" of $9.2 million
decreased 16.6% compared to revenue of $11.1 million. "Other"
operating earnings were $0.7 million compared to $1.1 million.
Non-Operating Items
Other expense, which primarily consists of interest expense,
increased $3.3 million to $4.0 million in the third quarter compared
to $0.7 million. The increase is attributable in large part to an
increase in debt outstanding related to the 2005 television station
acquisitions, share repurchases and higher short-term interest rates.
Stock Repurchase Program
During the third quarter 2006, the Company repurchased 239,800 of
its class A shares. Through September 24, 2006, the Company had
repurchased a total of 5,483,500 class A shares.
Fourth Quarter 2006 Guidance
For the fourth quarter of 2006, Journal Communications currently
anticipates total revenue - including revenue from Norlight - to be
between $208 million and $213 million. The Company also anticipates
net earnings to be between $17 million and $19 million, which includes
an estimated after-tax gain on the sale of KBBX-FM of approximately
$1.4 million. Note that the fourth quarter is impacted by a 53rd week
in 2006, which occurs the last week of December.
Webcast of Conference Call
A live webcast of the third quarter 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 October 24. To access the call,
dial 866-831-6267 (domestic) or 617-213-8857 (international) at least
10 minutes prior to the scheduled 10 a.m. CT start. The access code
for the conference call is 97892130. Replays of the conference call
will be available October 17 through October 19. 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 40980764.
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 and on page 14 of our most recent Quarterly
Report on Form 10-Q, each as 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 80
community newspapers and shoppers in eight states. We own and operate
36 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)
Third Quarter (A)
-----------------------
2006 2005 % Change
----------- ----------- ----------
Continuing Operations:
Revenue:
Publishing $80,357 $84,692 (5.1)
Broadcasting 58,257 40,512 43.8
Telecommunications 31,030 33,826 (8.3)
Printing services 15,456 17,256 (10.4)
Other 9,247 11,085 (16.6)
----------- -----------
Total revenue 194,347 187,371 3.7
Operating costs and expenses:
Publishing 42,906 43,711 (1.8)
Broadcasting 24,105 18,725 28.7
Telecommunications 21,526 22,029 (2.3)
Printing services 12,910 14,562 (11.3)
Other 8,065 9,547 (15.5)
----------- -----------
Total operating costs and expenses 109,512 108,574 0.9
Selling and administrative expenses 56,530 54,609 3.5
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 166,042 163,183 1.8
----------- -----------
Operating earnings 28,305 24,188 17.0
Other income and (expense):
Interest income 10 4
Interest expense (4,025) (713)
----------- -----------
Total other income and (expense) (4,015) (709)
Earnings from continuing operations
before income taxes 24,290 23,479 3.5
Provision for income taxes 9,786 9,486 3.2
----------- -----------
Earnings from continuing operations 14,504 13,993 3.7
Gain (loss) from discontinued
operations, net of tax (benefit)
expense of ($673), $1, ($673) and
$3,062, respectively. (1,003) 3
----------- -----------
Net earnings $13,501 $13,996 (3.5)
=========== ===========
Weighted average number of shares:
Basic 66,974,953 70,492,873
Diluted 71,461,595 74,960,980
Earnings per share:
Basic:
Continuing operations $0.21 $0.19
Discontinued operations (0.02) -
----------- -----------
Net earnings $0.19 $0.19
=========== ===========
Diluted:
Continuing operations $0.20 $0.19
Discontinued operations (0.01) -
----------- -----------
Net earnings $0.19 $0.19
=========== ===========
Three Quarters (B)
-----------------------
2006 2005 % Change
----------- ----------- ----------
Continuing Operations:
Revenue:
Publishing $239,227 $253,612 (5.7)
Broadcasting 168,347 120,629 39.6
Telecommunications 95,928 107,403 (10.7)
Printing services 48,452 53,644 (9.7)
Other 28,698 33,839 (15.2)
----------- -----------
Total revenue 580,652 569,127 2.0
Operating costs and expenses:
Publishing 129,314 131,465 (1.6)
Broadcasting 68,321 54,176 26.1
Telecommunications 65,581 67,403 (2.7)
Printing services 40,705 45,633 (10.8)
Other 24,488 28,867 (15.2)
----------- -----------
Total operating costs and expenses 328,409 327,544 0.3
Selling and administrative expenses 170,581 165,549 3.0
----------- -----------
Total operating costs and expenses
and selling and administrative
expenses 498,990 493,093 1.2
----------- -----------
Operating earnings 81,662 76,034 7.4
Other income and (expense):
Interest income 39 262
Interest expense (11,554) (1,835)
----------- -----------
Total other income and (expense) (11,515) (1,573)
Earnings from continuing operations
before income taxes 70,147 74,461 (5.8)
Provision for income taxes 28,129 29,777 (5.5)
----------- -----------
Earnings from continuing operations 42,018 44,684 (6.0)
Gain (loss) from discontinued
operations, net of tax (benefit)
expense of ($673), $1, ($673) and
$3,062, respectively. (1,003) 4,858
----------- -----------
Net earnings $41,015 $49,542 (17.2)
=========== ===========
Weighted average number of shares:
Basic 67,725,338 71,424,811
Diluted 72,234,372 75,892,074
Earnings per share:
Basic:
Continuing operations $0.60 $0.60
Discontinued operations (0.01) 0.07
----------- -----------
Net earnings $0.59 $0.67
=========== ===========
Diluted:
Continuing operations $0.58 $0.59
Discontinued operations (0.01) 0.06
----------- -----------
Net earnings $0.57 $0.65
=========== ===========
(A) 2006 third quarter: June 26, 2006 to September 24, 2006.
2005 third quarter: June 27, 2005 to September 25, 2005.
(B) 2006 three quarters: December 26, 2005 to September 24, 2006.
2005 three quarters: December 27, 2004 to September 25, 2005.
Journal Communications, Inc.
Segment Information (unaudited)
(dollars in thousands)
Third Quarter (A)
(unaudited)
-----------------------
2006 2005 % Change
----------- ----------- ----------
Revenue
- -----------------------------------
Publishing $80,357 $84,692 (5.1)
Broadcasting 58,257 40,512 43.8
Telecommunications 31,030 33,826 (8.3)
Printing services 15,456 17,256 (10.4)
Other 9,247 11,085 (16.6)
----------- -----------
$194,347 $187,371 3.7
=========== ===========
Operating earnings
- -----------------------------------
Publishing $9,716 $10,407 (6.6)
Broadcasting 15,052 7,221 108.4
Telecommunications 2,436 4,909 (50.4)
Printing services 421 584 (27.9)
Other 680 1,067 (36.3)
----------- -----------
$28,305 $24,188 17.0
=========== ===========
Depreciation and amortization
- -----------------------------------
Publishing $3,300 $3,618 (8.8)
Broadcasting 3,140 2,178 44.2
Telecommunications 4,430 4,340 2.1
Printing services 491 482 1.9
Other 226 194 16.5
----------- -----------
$11,587 $10,812 7.2
=========== ===========
Three Quarters (B)
(unaudited)
-----------------------
2006 2005 % Change
----------- ----------- ----------
Revenue
- -----------------------------------
Publishing $239,227 $253,612 (5.7)
Broadcasting 168,347 120,629 39.6
Telecommunications 95,928 107,403 (10.7)
Printing services 48,452 53,644 (9.7)
Other 28,698 33,839 (15.2)
----------- -----------
$580,652 $569,127 2.0
=========== ===========
Operating earnings
- -----------------------------------
Publishing $25,840 $32,229 (19.8)
Broadcasting 42,797 21,525 98.8
Telecommunications 9,319 19,343 (51.8)
Printing services 1,443 1,364 5.8
Other 2,263 1,573 43.9
----------- -----------
$81,662 $76,034 7.4
=========== ===========
Depreciation and amortization
- -----------------------------------
Publishing $10,072 $10,805 (6.8)
Broadcasting 9,365 6,554 42.9
Telecommunications 13,615 13,697 (0.6)
Printing services 1,441 1,582 (8.9)
Other 655 578 13.3
----------- -----------
$35,148 $33,216 5.8
=========== ===========
(A) 2006 third quarter: June 26, 2006 to September 24, 2006.
2005 third quarter: June 27, 2005 to September 25, 2005.
(B) 2006 three quarters: December 26, 2005 to September 24, 2006.
2005 three quarters: December 27, 2004 to September 25, 2005.
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
- ----------------------------------------------------------------------
Third Quarter of 2006 (A)
----------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
----------- ----------- ----------
Advertising revenue:
Retail $21,875 $12,911 $34,786
Classified 16,705 2,896 19,601
National 2,637 -- 2,637
Direct Marketing 1,258 -- 1,258
Other -- 139 139
----------- ----------- ----------
Total advertising revenue 42,475 15,946 58,421
Circulation revenue 13,124 680 13,804
Other revenue 2,261 5,871 8,132
----------- ----------- ----------
Total revenue $57,860 $22,497 $80,357
=========== =========== ==========
Third Quarter of 2005 (B)
----------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
----------- ----------- ----------
Advertising revenue:
Retail $22,616 $13,644 $36,260
Classified 18,738 3,037 21,775
National 2,318 -- 2,318
Direct Marketing 1,776 -- 1,776
Other -- 142 142
----------- ----------- ----------
Total advertising revenue 45,448 16,823 62,271
Circulation revenue 13,336 710 14,046
Other revenue 1,451 6,924 8,375
----------- ----------- ----------
Total revenue $60,235 $24,457 $84,692
=========== =========== ==========
% Change % Change % Change
Daily CN&S Total
----------- ----------- ----------
Advertising revenue:
Retail (3.3) (5.4) (4.1)
Classified (10.8) (4.6) (10.0)
National 13.8 N/A 13.8
Direct Marketing (29.2) N/A (29.2)
Other N/A (2.1) (2.1)
Total advertising revenue (6.5) (5.2) (6.2)
Circulation revenue (1.6) (4.2) (1.7)
Other revenue 55.8 (15.2) (2.9)
Total revenue (3.9) (8.0) (5.1)
Three Quarters of 2006 (C)
----------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
----------- ----------- ----------
Advertising revenue:
Retail $61,771 $39,505 $101,276
Classified 49,916 8,397 58,313
National 7,778 -- 7,778
Direct Marketing 4,128 -- 4,128
Other -- 720 720
----------- ----------- ----------
Total advertising revenue 123,593 48,622 172,215
Circulation revenue 38,872 2,149 41,021
Other revenue 8,125 17,866 25,991
----------- ----------- ----------
Total revenue $170,590 $68,637 $239,227
=========== =========== ==========
Three Quarters of 2005 (D)
----------------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
----------- ----------- ----------
Advertising revenue:
Retail $67,578 $41,340 $108,918
Classified 54,206 8,020 62,226
National 7,931 -- 7,931
Direct Marketing 4,808 -- 4,808
Other -- 739 739
----------- ----------- ----------
Total advertising revenue 134,523 50,099 184,622
Circulation revenue 39,804 2,165 41,969
Other revenue 5,568 21,453 27,021
----------- ----------- ----------
Total revenue $179,895 $73,717 $253,612
=========== =========== ==========
% Change % Change % Change
Daily CN&S Total
----------- ----------- ----------
Advertising revenue:
Retail (8.6) (4.4) (7.0)
Classified (7.9) 4.7 (6.3)
National (1.9) N/A (1.9)
Direct Marketing (14.1) N/A (14.1)
Other N/A (2.6) (2.6)
Total advertising revenue (8.1) (2.9) (6.7)
Circulation revenue (2.3) (0.7) (2.3)
Other revenue 45.9 (16.7) (3.8)
Total revenue (5.2) (6.9) (5.7)
(A) 2006 third quarter: June 26, 2006 to September 24, 2006.
(B) 2005 third quarter: June 27, 2005 to September 25, 2005.
(C) 2006 three quarters: December 26, 2005 to September 24, 2006.
(D) 2005 three quarters: December 27, 2004 to September 25, 2005.
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.
Daily newspaper's core newspaper advertising linage by category:
- ----------------------------------------------------------------------
Third Quarter (A)
------------------------
2006 2005 % Change
----------- ----------- -----------
Advertising linage (inches):
Full run
Retail 164,555 172,145 (4.4)
Classified 166,666 208,167 (19.9)
National 13,772 9,303 48.0
----------- -----------
Total full run 344,993 389,615 (11.5)
Part run 28,047 45,778 (38.7)
----------- -----------
Total advertising linage 373,040 435,393 (14.3)
=========== ===========
Preprint pieces (in thousands) 208,542 215,526 (3.2)
=========== ===========
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
- ----------------------------------------------------------------------
Full pages of advertising:
Community newspapers 18,494 23,981 (22.9)
Shoppers and specialty products 27,011 27,354 (1.3)
----------- -----------
Total full pages of advertising 45,505 51,335 (11.4)
=========== ===========
Revenue per page $319.41 $300.71 6.2
=========== ===========
Daily newspaper's core newspaper advertising linage by category:
- ----------------------------------------------------------------------
Three Quarters (B)
-----------------------
2006 2005 % Change
----------- ----------- -----------
Advertising linage (inches):
Full run
Retail 490,926 516,148 (4.9)
Classified 502,857 602,205 (16.5)
National 42,606 34,046 25.1
----------- -----------
Total full run 1,036,389 1,152,399 (10.1)
Part run 84,939 126,107 (32.6)
----------- -----------
Total advertising linage 1,121,328 1,278,506 (12.3)
=========== ===========
Preprint pieces (in thousands) 632,266 637,163 (0.8)
=========== ===========
Full pages of advertising and revenue per page of our community
newspapers and shoppers:
- ----------------------------------------------------------------------
Full pages of advertising:
Community newspapers 62,437 68,645 (9.0)
Shoppers and specialty products 78,869 81,665 (3.4)
----------- -----------
Total full pages of advertising 141,306 150,310 (6.0)
=========== ===========
Revenue per page $309.69 $301.94 2.6
=========== ===========
(A) 2006 third quarter: June 26, 2006 to September 24, 2006.
2005 third quarter: June 27, 2005 to September 25, 2005.
(B) 2006 three quarters: December 26, 2005 to September 24, 2006.
2005 three quarters: December 27, 2004 to September 25, 2005.
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)
Third Quarter (A) Three Quarters (B)
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Net earnings $13,501 $13,996 $41,015 $49,542
(Gain) loss from discontinued
operations, net 1,003 (3) 1,003 (4,858)
Provision for income taxes 9,786 9,486 28,129 29,777
Total other expenses, net 4,015 709 11,515 1,573
Depreciation 11,000 10,492 33,396 32,241
Amortization 587 320 1,752 975
--------- --------- --------- ---------
EBITDA $39,892 $35,000 $116,810 $109,250
========= ========= ========= =========
(A) 2006 third quarter: June 26, 2006 to September 24, 2006.
2005 third quarter: June 27, 2005 to September 25, 2005.
(B) 2006 three quarters: December 26, 2005 to September 24, 2006.
2005 three quarters: December 27, 2004 to September 25, 2005.
We define EBITDA as net earnings excluding gain/loss from discontinued
operations, net, provision for income taxes, total other expense
(which is entirely comprised of interest income and expense),
depreciation and amortization. Our management uses 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. 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 from operating
activities as a measure of liquidity. EBITDA, as we calculate it, may
not be comparable to EBITDA reported by other companies.
Journal Communications, Inc.
Consolidated Condensed Balance Sheets
(dollars in thousands)
September 24,
2006 December 25,
(unaudited) 2005
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $7,204 $6,864
Receivables, net 99,243 90,146
Inventories, net 9,199 9,647
Prepaid expenses 16,076 14,279
Deferred income taxes 10,260 9,968
------------- -------------
Total current assets 141,982 130,904
Property and equipment, net 309,768 316,911
Goodwill 247,078 276,339
Broadcast licenses 199,670 174,835
Other intangible assets, net 28,763 41,663
Prepaid pension costs 17,703 18,603
Other assets 39,569 25,104
Non-current assets of discontinued
operations 285 307
------------- -------------
Total assets $984,818 $984,666
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $35,536 $40,671
Accrued compensation 20,804 18,094
Deferred revenue 27,608 18,971
Accrued employee benefits 12,108 9,722
Other current liabilities 13,579 15,516
Current liabilities of discontinued
operations - 205
Current portion of long-term liabilities 4,987 5,053
------------- -------------
Total current liabilities 114,622 108,232
Accrued employee benefits 21,691 20,280
Long-term notes payable to banks 260,235 274,545
Deferred income taxes 69,753 65,630
Other long-term liabilities 30,629 31,473
Shareholders' equity 487,888 484,506
------------- -------------
Total liabilities and shareholders' equity $984,818 $984,666
============= =============
CONTACT: Journal Communications
Sara Leuchter Wilkins
Director of Investor Relations
414-224-2633
swilkins@journalcommunications.com