Exhibit 99
Journal Communications Reports SecondQuarter Results
MILWAUKEE--(BUSINESS WIRE)--July 23, 2007--Journal Communications
(NYSE:JRN) today announced results for its second quarter ended July
1, 2007. Note that unless otherwise indicated, all comparisons are to
the second quarter ended June 25, 2006. Both quarters contained 91
days.
For the second quarter 2007, revenue from continuing operations of
$147.5 million decreased 4.3% compared to $154.0 million. Earnings
from continuing operations were $12.7 million compared to $12.5
million, an increase of 1.5%.
Net earnings were $14.2 million compared to net earnings of $15.2
million. In the second quarter 2007, Journal Communications recorded a
$1.4 million gain, net of tax, from discontinued operations related to
the announced divestitures of its Ohio, New England and Louisiana
community publishing clusters.
Basic and diluted earnings per share from continuing operations
were $0.19 for both, compared to $0.18 and $0.17, respectively. Basic
and diluted earnings per share from discontinued operations were $0.03
and $0.02, respectively, compared to $0.04 for both. Basic and diluted
net earnings per share were $0.22 and $0.21 respectively, for both the
second quarters 2007 and 2006.
Note that in the second quarter 2007, Journal Communications'
diluted earnings per share from continuing operations were impacted
favorably by $0.01 from the gain on the sale of our Hartland,
Wisconsin printing facility and that diluted earnings per share from
discontinued operations were impacted favorably by $0.02 from the gain
on the sale of our Ohio community publishing and printing operations.
In the second quarter 2006, a number of unusual items -- including a
litigation settlement and related expenses, offset by a pension plan
curtailment gain and insurance proceeds -- had a net negative impact
of $0.02 on diluted earnings per share from continuing operations.
Note that second quarter 2007 financial results compared to 2006
- -- adjusted for the second quarter 2006 revenue reduction of $5.1
million due to a litigation settlement and the second quarter 2006
unfavorable impact on consolidated operating earnings from the
litigation settlement, offset by positive adjustments for a pension
curtailment gain and insurance proceeds of an aggregate $3.0 million
($3.6 million on publishing operating earnings) -- would have been as
follows:
-- Revenue from continuing operations of $147.5 million, down
7.3%
-- Earnings from continuing operations of $12.7 million, down
11.2%
-- Net earnings of $14.2 million, down 17.0%
-- Publishing revenues of $67.6 million, down 7.4%
-- Publishing operating earnings of $10.2 million, down 6.1%
"We experienced a challenging second quarter," said Steven J.
Smith, chairman and chief executive officer of Journal Communications.
"We recorded declines in retail advertising and employment and real
estate classified advertising in publishing and posted
softer-than-expected auto advertising across our broadcast markets. We
continue to manage costs carefully in all of our businesses while also
investing for growth.
"We were encouraged by the Milwaukee Journal Sentinel's continued
increase in interactive revenue, which was up almost 47% to $3.4
million in the quarter. Journal Sentinel's recently announced
strategic agreement with Monster(R) is another example of our
commitment to driving online initiatives and pursuing new revenue
streams. In the broadcast group, interactive revenue also continues
its positive growth trajectory, reaching almost $700,000 in the second
quarter.
"In television, we were pleased with our May sweep results at a
number of our stations, especially the gains in news at KGUN-TV in
Tucson and KFTX-TV in Ft. Myers. In the radio group, although revenues
were essentially flat and operating earnings were down, we did see
double-digit increases in both revenue and operating earnings at our
Knoxville, Boise and Springfield clusters. Our printing services
business, IPC, also continues to deliver improved operating earnings.
"The divestiture of our New England, Ohio and Louisiana publishing
and printing businesses will allow us to concentrate on growing our
community newspaper and shopper business in our Wisconsin and Florida
markets.
Consolidated
For the second quarter, revenue from continuing operations of
$147.5 million decreased 4.3% compared to $154.0 million. Operating
earnings decreased 8.2% to $22.7 million. Operating earnings margin
was 15.4% compared to 16.1%. EBITDA (net earnings excluding the gain
from discontinued operations, net; total other expense, net; provision
for income taxes; depreciation; and amortization) of $30.0 million
decreased 5.9% compared to $31.9 million.
Publishing
For the second quarter, publishing revenue from continuing
operations decreased 0.5% to $67.6 million compared to $67.9 million.
In part, this reflected continued weakness in classified and retail
advertising at both the daily newspaper and the community newspapers
and shoppers, partially offset by the revenue reduction of $5.1
million from the litigation settlement in second quarter 2006. The
revenue decline at our community newspapers and shoppers division
largely reflects certain revenue previously reported within the
division that is now reported under the daily newspaper, as well as
the change to a free distribution model of our Milwaukee-area
community newspapers. Total interactive advertising revenue at the
daily newspaper increased 46.9% to $3.4 million compared to $2.3
million.
Publishing operating earnings increased 40.3% from $7.3 million to
$10.2 million, including a $0.9 million gain on the sale of the
Hartland facility. In the second quarter 2006, publishing operating
earnings were negatively impacted by an aggregate $3.6 million from
the litigation settlement, offset by favorable adjustments for a
pension curtailment gain and insurance proceeds.
Broadcasting
For the second quarter, broadcasting revenue decreased 4.1% to
$56.0 million compared to $58.5 million. Political and issue
advertising revenue was $0.5 million in the second quarter 2007 and
$1.7 million in the second quarter 2006. Broadcasting operating
earnings of $11.3 million were down 30.1% compared to $16.2 million,
in part reflecting higher payroll, syndication and other program costs
and the impact from last year's favorable adjustment for the pension
curtailment gain.
For the second quarter, revenue from television stations decreased
6.4% to $34.0 million compared to $36.3 million. Operating earnings
from television stations decreased 35.4% to $6.0 million compared to
$9.4 million.
For the second quarter, revenue from radio stations of $22.0
million was down 0.5% compared to $22.2 million. On a same-station
basis (excluding revenue generated by KBBX-FM, which was sold in
September 2006 and KOMJ-AM, which was sold earlier this year), radio
revenue increased 1.6%. Operating earnings from radio stations of $5.3
million decreased 22.7%. On a same-station basis, radio operating
earnings decreased 19.8%.
Printing Services
For the second quarter, revenue from printing services decreased
1.0% to $16.5 million from $16.7 million, largely due to the expected
decline in revenue from computer-related customers. Operating earnings
from printing services increased 97.9% to $1.0 million compared to
$0.5 million due to production efficiencies and the change in business
mix.
Other
For the second quarter, revenue for "Other" of $7.4 million
decreased 33.0% compared to $11.0 million reflecting softness in the
mailing services part of our direct marketing business. "Other"
operating earnings were $0.2 million compared to $0.8 million,
primarily due to the adjustment of an incentive compensation accrual
in the second quarter 2006.
Discontinued Operations
The operating results of the New England, Ohio and Louisiana
community publishing and printing clusters and Norlight (our former
telecommunications subsidiary which was sold in February 2007) are
classified as discontinued operations, net of tax. For the second
quarter 2007, the gain from discontinued operations was $1.4 million,
which included a gain on the sale of the Ohio publishing operations of
$1.3 million and the impact of second quarter 2007 operating results
of $0.1 million. This compares to a gain of $2.7 million. Note that
the gain associated with the sales of the Louisiana and New England
operations will be recorded in the quarter in which each transaction
is closed.
Non-Operating Items
For the second quarter, other expense, which primarily consists of
interest expense, decreased $1.9 million to $2.0 million compared to
$3.9 million. The decrease is attributable in large part to a decrease
in debt outstanding, which was reduced with the proceeds from the sale
of Norlight.
Stock Repurchase Program
During the second quarter 2007, the Company repurchased 533,600 of
its class A shares. Through July 1, 2007, the Company had repurchased
a total of 8,949,100 class A shares.
Third Quarter 2007 Outlook
For the third quarter 2007, Journal Communications currently
anticipates that its publishing revenues will be down compared to the
prior year, reflecting continued advertising revenue challenges. We
expect radio revenue to be down slightly, reflecting $0.4 million in
political and issue advertising generated in the third quarter 2006
and the sale of KBBX-FM in the fall of 2006 and KOMJ-AM in early 2007.
We also expect television revenue to be down due to challenging
comparables which include $3.8 million in political and issue
advertising generated in the third quarter 2006.
Webcast of Conference Call
A live webcast of the second 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 August 6. To access the call,
dial (800) 261-3417 (domestic) or (617) 614-3673 (international) at
least 10 minutes prior to the scheduled 10:00 a.m. CT start. The
access code for the conference call is 69680791. Replays of the
conference call will be available July 23 through July 25. 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 19620185.
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 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 company
with operations in publishing, radio and television broadcasting,
interactive media and printing services. We publish the Milwaukee
Journal Sentinel, which serves as the only major daily newspaper for
the Milwaukee metropolitan area, and 61 community newspapers and
shoppers in six states. Upon the completion of the sale of the New
England operations, we will publish 44 community newspapers and
shoppers in two states. We own and operate 35 radio stations and ten
television stations in 12 states and operate one television station
under a local marketing agreement. Our interactive media assets
include more than 75 online enterprises that are associated with our
daily and community newspapers, television and radio stations. We also
provide a wide range of commercial printing services -- including
printing of publications, professional journals and documentation
material -- and 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)
Second Quarter (A)
-------------------------
2007 2006 % Change
------------ ------------ ---------
Continuing Operations:
Revenue:
Publishing $ 67,556 $ 67,910 (0.5)
Broadcasting 56,029 58,452 (4.1)
Printing services 16,527 16,686 (1.0)
Other 7,352 10,979 (33.0)
------------ ------------
Total revenue 147,464 154,027 (4.3)
Operating costs and expenses:
Publishing 35,476 36,430 (2.6)
Broadcasting 23,735 22,397 6.0
Printing services 13,407 14,007 (4.3)
Other 6,153 9,399 (34.5)
------------ ------------
Total operating costs and expenses 78,771 82,233 (4.2)
Selling and administrative
expenses 45,948 47,015 (2.3)
------------ ------------
Total operating costs and expenses
and selling and administrative
expenses 124,719 129,248 (3.5)
------------ ------------
Operating earnings 22,745 24,779 (8.2)
Other income and (expense):
Interest income 1 1
Interest expense (1,984) (3,877)
------------ ------------
Total other income and (expense) (1,983) (3,876) (48.8)
Earnings from continuing
operations before income taxes 20,762 20,903 (0.7)
Provision for income taxes 8,060 8,384 (3.9)
------------ ------------
Earnings from continuing
operations 12,702 12,519 1.5
Gain from discontinued operations,
net of tax 1,448 2,722 (46.8)
------------ ------------
Net earnings $ 14,150 $ 15,241 (7.2)
============ ============
Weighted average number of shares:
Basic 63,648,225 67,836,780
Diluted 68,172,403 72,318,319
Earnings per share:
Basic:
Continuing operations $ 0.19 $ 0.18
Discontinued operations 0.03 0.04
------------ ------------
Net earnings $ 0.22 $ 0.22
============ ============
Diluted:
Continuing operations $ 0.19 $ 0.17
Discontinued operations 0.02 0.04
------------ ------------
Net earnings $ 0.21 $ 0.21
============ ============
Two Quarters (B)
-------------------------
2007 2006 % Change
------------ ------------ ---------
Continuing Operations:
Revenue:
Publishing $ 134,013 $ 137,350 (2.4)
Broadcasting 107,725 110,090 (2.1)
Printing services 33,402 32,996 1.2
Other 15,518 20,122 (22.9)
------------ ------------
Total revenue 290,658 300,558 (3.3)
Operating costs and expenses:
Publishing 72,351 72,991 (0.9)
Broadcasting 46,130 44,216 4.3
Printing services 27,573 27,795 (0.8)
Other 13,076 17,094 (23.5)
------------ ------------
Total operating costs and expenses 159,130 162,096 (1.8)
Selling and administrative
expenses 92,155 95,085 (3.1)
------------ ------------
Total operating costs and expenses
and selling and administrative
expenses 251,285 257,181 (2.3)
------------ ------------
Operating earnings 39,373 43,377 (9.2)
Other income and (expense):
Interest income 3 19
Interest expense (4,982) (7,526)
------------ ------------
Total other income and (expense) (4,979) (7,507) (33.7)
Earnings from continuing
operations before income taxes 34,394 35,870 (4.1)
Provision for income taxes 13,452 14,298 (5.9)
------------ ------------
Earnings from continuing
operations 20,942 21,572 (2.9)
Gain from discontinued operations,
net of tax 66,539 5,942 1,019.8
------------ ------------
Net earnings $ 87,481 $ 27,514 218.0
============ ============
Weighted average number of shares:
Basic 64,455,279 68,100,531
Diluted 68,984,541 72,609,327
Earnings per share:
Basic:
Continuing operations $ 0.31 $ 0.30
Discontinued operations 1.03 0.09
------------ ------------
Net earnings $ 1.34 $ 0.39
============ ============
Diluted:
Continuing operations $ 0.30 $ 0.30
Discontinued operations 0.97 0.08
------------ ------------
Net earnings $ 1.27 $ 0.38
============ ============
(A) 2007 second quarter: April 2, 2007 to July 1, 2007.
2006 second quarter: March 27,2006 to June 25,2006.
(B) 2007 two quarters: January 1, 2007 to July 1, 2007.
2006 two quarters: December 26, 2005 to June 25, 2006.
Journal Communications, Inc.
Segment Information (unaudited)
(dollars in thousands)
Second Quarter (A) (unaudited)
------------------------------
2007 2006 % Change
------------- ------------- --------
Revenue
- ------------------------------
Publishing $ 67,556 $ 67,910 (0.5)
Broadcasting 56,029 58,452 (4.1)
Printing services 16,527 16,686 (1.0)
Other 7,352 10,979 (33.0)
------------- -------------
$147,464 $154,027 (4.3)
============= =============
Operating earnings
- ------------------------------
Publishing $ 10,189 $ 7,261 40.3
Broadcasting 11,303 16,159 (30.1)
Printing services 1,049 530 97.9
Other 204 829 (75.4)
------------- -------------
$ 22,745 $ 24,779 (8.2)
============= =============
Depreciation and amortization
- ------------------------------
Publishing $ 3,206 $ 3,176 0.9
Broadcasting 3,247 3,226 0.7
Printing services 535 479 11.7
Other 263 216 21.8
------------- -------------
$ 7,251 $ 7,097 2.2
============= =============
Two Quarters (B) (unaudited)
----------------------------
2007 2006 % Change
----------- ------------- --------
Revenue
- --------------------------------
Publishing $134,013 $137,350 (2.4)
Broadcasting 107,725 110,090 (2.1)
Printing services 33,402 32,996 1.2
Other 15,518 20,122 (22.9)
----------- -------------
$290,658 $300,558 (3.3)
=========== =============
Operating earnings
- --------------------------------
Publishing $ 15,233 $ 14,402 5.8
Broadcasting 21,298 27,745 (23.2)
Printing services 2,047 1,022 100.3
Other 795 208 282.2
----------- -------------
$ 39,373 $ 43,377 (9.2)
=========== =============
Depreciation and amortization
- --------------------------------
Publishing $ 6,813 $ 6,341 7.4
Broadcasting 6,395 6,225 2.7
Printing services 1,025 950 7.9
Other 523 429 21.9
----------- -------------
$ 14,756 $ 13,945 5.8
=========== =============
(A) 2007 second quarter: April 2, 2007 to July 1, 2007.
2006 second quarter: March 27,2006 to June 25,2006.
(B) 2007 two quarters: January 1, 2007 to July 1, 2007.
2006 two quarters: December 26, 2005 to June 25, 2006.
Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
Publishing revenue by category:
- -----------------------------------------
Second Quarter of 2007 (A)
----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- -------
Advertising revenue:
Retail $22,746 $ 7,808 $30,554
Classified 15,573 1,638 17,211
National 1,892 -- 1,892
Direct Marketing 1,080 -- 1,080
Other -- 63 63
--------- ---------- -------
Total advertising revenue 41,291 9,509 50,800
Circulation revenue 12,831 243 13,074
Other revenue 2,560 1,122 3,682
--------- ---------- -------
Total revenue $56,682 $10,874 $67,556
========= ========== =======
Publishing revenue by category:
- -----------------------------------------
Second Quarter of 2006 (B)
----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- -------
Advertising revenue:
Retail $18,539 $ 9,468 $28,007
Classified 16,794 2,264 19,058
National 2,657 -- 2,657
Direct Marketing 1,478 -- 1,478
Other -- 165 165
--------- ---------- -------
Total advertising revenue 39,468 11,897 51,365
Circulation revenue 12,795 563 13,358
Other revenue 2,275 912 3,187
--------- ---------- -------
Total revenue $54,538 $13,372 $67,910
========= ========== =======
Publishing revenue by category:
- -------------------------------------------
% Change % Change % Change
Daily CN&S Total
-------- -------- --------
Advertising revenue:
Retail 22.7 (17.5) 9.1
Classified (7.3) (27.7) (9.7)
National (28.8) N/A (28.8)
Direct Marketing (26.9) N/A (26.9)
Other N/A (61.8) (61.8)
Total advertising revenue 4.6 (20.1) (1.1)
Circulation revenue 0.3 (56.8) (2.1)
Other revenue 12.5 23.0 15.5
Total revenue 3.9 (18.7) (0.5)
Two Quarters of 2007 (C)
-----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- --------
Advertising revenue:
Retail $ 43,511 $14,934 $ 58,445
Classified 31,132 3,067 34,199
National 4,320 -- 4,320
Direct Marketing 2,168 -- 2,168
Other -- 251 251
--------- ---------- --------
Total advertising revenue 81,131 18,252 99,383
Circulation revenue 25,525 584 26,109
Other revenue 6,461 2,060 8,521
--------- ---------- --------
Total revenue $113,117 $20,896 $134,013
========= ========== ========
Two Quarters of 2006 (D)
-----------------------------
Community
Daily Newspapers
Newspaper & Shoppers Total
--------- ---------- --------
Advertising revenue:
Retail $ 39,896 $17,659 $ 57,555
Classified 33,211 4,060 37,271
National 5,141 -- 5,141
Direct Marketing 2,870 -- 2,870
Other -- 444 444
--------- ---------- --------
Total advertising revenue 81,118 22,163 103,281
Circulation revenue 25,748 1,133 26,881
Other revenue 5,532 1,656 7,188
--------- ---------- --------
Total revenue $112,398 $24,952 $137,350
========= ========== ========
% Change % Change % Change
Daily CN&S Total
--------- --------- ---------
Advertising revenue:
Retail 9.1 (15.4) 1.5
Classified (6.3) (24.5) (8.2)
National (16.0) N/A (16.0)
Direct Marketing (24.5) N/A (24.5)
Other N/A (43.5) (43.5)
Total advertising revenue 0.0 (17.6) (3.8)
Circulation revenue (0.9) (48.5) (2.9)
Other revenue 16.8 24.4 18.5
Total revenue 0.6 (16.3) (2.4)
(A) 2007 second quarter: April 2, 2007 to July 1, 2007.
(B) 2006 second quarter: March 27, 2006 to June 25, 2006.
(C) 2007 two quarters: January 1, 2007 to July 1, 2007.
(D) 2006 two quarters: December 26, 2005 to June 25, 2006.
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:
- -----------------------------------------
Second Quarter (A)
------------------
2007 2006 % Change
--------- -------- ---------
Advertising linage (inches):
Full run
Retail 161,776 172,497 (6.2)
Classified 148,833 174,169 (14.5)
National 9,758 14,829 (34.2)
--------- --------
Total full run 320,367 361,495 (11.4)
Part run 10,504 31,542 (66.7)
--------- --------
Total advertising linage 330,871 393,037 (15.8)
========= ========
Preprint pieces (in thousands) 204,501 215,474 (5.1)
========= ========
Total pages and revenue per page of our
community newspapers and shoppers:
- -----------------------------------------
Total pages
Community newspapers 12,412 19,832 (37.4)
Shoppers and specialty products 13,043 15,810 (17.5)
--------- --------
Total pages 25,455 35,642 (28.6)
========= ========
Revenue per page $ 336.57 $ 297.10 13.3
========= ========
Daily newspaper's core newspaper
advertising linage by category:
- -----------------------------------------
Two Quarters (B)
------------------
2007 2006 % Change
--------- -------- ---------
Advertising linage (inches):
Full run
Retail 302,188 326,371 (7.4)
Classified 285,395 336,191 (15.1)
National 20,329 28,834 (29.5)
--------- --------
Total full run 607,912 691,396 (12.1)
Part run 18,244 56,892 (67.9)
--------- --------
Total advertising linage 626,156 748,288 (16.3)
========= ========
Preprint pieces (in thousands) 414,808 423,724 (2.1)
========= ========
Total pages and revenue per page of our
community newspapers and shoppers:
- -----------------------------------------
Full pages of advertising:
Community newspapers 24,800 37,754 (34.3)
Shoppers and specialty products 24,693 29,410 (16.0)
--------- --------
Total full pages of advertising 49,493 67,164 (26.3)
========= ========
Revenue per page $ 329.65 $ 292.22 12.8
========= ========
(A) 2007 second quarter: April 2, 2007 to July 1, 2007.
2006 second quarter: March 27,2006 to June 25,2006.
(B) 2007 two quarters: January 1, 2007 to July 1, 2007.
2006 two quarters: December 26, 2005 to June 25, 2006.
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 consolidated net earnings to consolidated EBITDA
(unaudited)
(dollars in thousands)
Second Quarter (A) Two Quarters (B)
------------------ ------------------
2007 2006 2007 2006
--------- -------- --------- --------
Net earnings $14,150 $15,241 $ 87,481 $27,514
(Gain) from discontinued
operations, net (1,448) (2,722) (66,539) (5,942)
Provision for income taxes 8,060 8,384 13,452 14,298
Total other expense, net 1,983 3,876 4,979 7,507
Depreciation 6,776 6,614 13,805 12,990
Amortization 475 483 951 955
--------- -------- --------- --------
EBITDA $29,996 $31,876 $ 54,129 $57,322
========= ======== ========= ========
(A) 2007 second quarter: April 2, 2007 to July 1, 2007.
2006 second quarter: March 27,2006 to June 25,2006.
(B) 2007 two quarters: January 1, 2007 to July 1, 2007.
2006 two quarters: December 26, 2005 to June 25, 2006.
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, and to value
prospective acquisitions. 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)
July 1,
2007 December 31,
(unaudited) 2006
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 6,446 $ 7,923
Receivables, net 85,052 87,182
Inventories, net 6,042 6,752
Prepaid expenses and other current assets 7,890 11,495
Deferred income taxes 7,222 11,017
Current assets of discontinued operations 18,788 118,589
----------- ------------
Total current assets 131,440 242,958
Property and equipment, net 219,596 217,823
Goodwill 231,550 231,635
Broadcast licenses 223,529 196,659
Other intangible assets, net 25,876 26,826
Other assets 20,043 39,079
Non-current assets of discontinued operations 264 278
----------- ------------
Total assets $852,298 $955,258
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 25,028 $ 31,025
Accrued compensation 17,891 18,730
Accrued employee benefits 13,094 10,456
Deferred revenue 16,180 18,505
Accrued income taxes 23,116 4,048
Other current liabilities 6,219 18,368
Current liabilities of discontinued
operations 295 20,939
Current portion of long-term liabilities 4,016 4,770
----------- ------------
Total current liabilities 105,839 126,841
Accrued employee benefits 33,583 33,749
Long-term notes payable to banks 118,355 235,000
Deferred income taxes 55,516 62,089
Other long-term liabilities 14,548 16,687
Shareholders' equity 524,457 480,892
----------- ------------
Total liabilities and shareholders' equity $852,298 $955,258
=========== ============
NOTE:
For 2006, assets and liabilities of the Community Newspapers and
Shoppers in the Ohio, Louisiana and New England clusters were
classified as current assets or current liabilities of discontinued
operations due to their pending sales.
CONTACT: Journal Communications, Inc.
Sara Leuchter Wilkins
Vice President of Investor Relations &
Corporate Communications
414-224-2633
swilkins@journalcommunications.com