Contacts
Sara Leuchter Wilkins
Vice President of Investor Relations & Corporate Communications
414-224-2633
swilkins@journalcommunications.com
MILWAUKEE–(BUSINESS WIRE)–Journal Communications, Inc. (NYSE:JRN) announced today that for the eleventh period ended November 25, 2007, total revenues from continuing operations for its Publishing and Broadcast groups of $40.00 million decreased 13.4% compared to $46.19 million reported for the eleventh period ended November 19, 2006, largely reflecting a $5.80 million decline in broadcast political and issue advertising revenue. For the eleventh period 2007, advertising revenues from continuing operations of $34.82 million decreased 14.3% compared to $40.65 million for the 2006 eleventh period. Both periods contained 28 days.
Note that unless otherwise indicated, all comparisons are to the eleventh period ended November 19, 2006.
At the Publishing segment, revenues from continuing operations at the daily newspaper and the community newspapers and shoppers totaled $21.62 million, down 5.9% compared to $22.98 million. Advertising revenue from continuing operations was $16.44 million, down 5.7% compared to $17.44 million. Circulation revenue from continuing operations of $3.98 million was down 4.4% compared to $4.16 million. Other revenue from continuing operations of $1.20 million was down 13.1%.
At the daily newspaper, total advertising revenue was $13.67 million, down 4.7% compared to $14.34 million. Specifically, retail advertising was up 1.9%, classified advertising revenue was down 15.5%, national advertising revenue of $0.81 million decreased 12.7% and direct marketing revenue of $0.61 million was up 4.8%. Within classified advertising, the auto vertical increased 35.7% and the help wanted, real estate/rentals and other verticals were down 24.7%, 30.1% and 11.2%, respectively. Circulation revenue at the daily newspaper was $3.90 million, down 2.1% compared to $3.98 million. Other revenue at the daily newspaper of $1.02 million was down 5.3% compared to $1.08 million, due to a reduction in printing for advertisers. Total interactive advertising revenue at the daily newspaper, which is reflected in the various revenue categories, increased 38.8% to $1.19 million compared to $0.85 million.
At the Company’s community newspapers and shoppers operations, total advertising revenue from continuing operations was $2.77 million, down 10.6% compared to $3.10 million. This largely reflects declines in retail advertising revenue from continuing operations (down 7.1%) and classified advertising revenue from continuing operations (down 21.4%). Other advertising revenue from continuing operations was $19,000. Circulation revenue from continuing operations at the community newspapers and shoppers of $84,000 decreased 53.6%, largely reflecting the change to a free distribution model of our Milwaukee-area community newspapers. Other revenue from continuing operations at the community newspapers and shoppers of $0.18 million decreased 40.9%.
At the Broadcasting segment, total revenue at the Company’s radio and television stations of $18.38 million decreased 20.8% compared to $23.21 million. At the radio group, revenue of $6.92 million was down 9.6% compared to $7.65 million, due to a decline of $0.67 million in political and issue advertising revenue and weakness in local advertising, partially offset by an increase in national advertising. At the television group, revenue decreased 26.3% to $11.46 million compared to $15.56 million, due to a decline in political and issue advertising revenue of $5.13 million partially offset by increases in local and national advertising revenue.
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 46 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and ten television stations in 12 states and operate two television stations under local marketing agreements. Our interactive media assets include 96 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. | ||||||||||||||||||||
| Publishing Segment Information (unaudited) | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
Publishing revenue by category: | ||||||||||||||||||||
| Eleventh period of 2007 (A) | Eleventh period of 2006 (A) | |||||||||||||||||||
| Community | Community | |||||||||||||||||||
| Daily | Newspapers | Daily | Newspapers | % Change | % Change | % Change | ||||||||||||||
| Newspaper | & Shoppers | Total | Newspaper | & Shoppers | Total | Daily | CN&S | Total | ||||||||||||
| Advertising revenue: | ||||||||||||||||||||
| Retail | $ 8,253 | $ 2,336 | $ 10,589 | $ 8,098 | $ 2,514 | $ 10,612 | 1.9 | (7.1 | ) | (0.2 | ) | |||||||||
| Classified | 3,990 | 415 | 4,405 | 4,723 | 528 | 5,251 | (15.5 | ) | (21.4 | ) | (16.1 | ) | ||||||||
| National | 810 | — | 810 | 928 | — | 928 | (12.7 | ) | N/A | (12.7 | ) | |||||||||
| Direct Marketing | 614 | — | 614 | 586 | — | 586 | 4.8 | N/A | 4.8 | |||||||||||
| Other | — | 19 | 19 | — | 58 | 58 | N/A | (67.2 | ) | (67.2 | ) | |||||||||
| Total advertising revenue | 13,667 | 2,770 | 16,437 | 14,335 | 3,100 | 17,435 | (4.7 | ) | (10.6 | ) | (5.7 | ) | ||||||||
| Circulation revenue | 3,895 | 84 | 3,979 | 3,980 | 181 | 4,161 | (2.1 | ) | (53.6 | ) | (4.4 | ) | ||||||||
| Other revenue | 1,020 | 179 | 1,199 | 1,077 | 303 | 1,380 | (5.3 | ) | (40.9 | ) | (13.1 | ) | ||||||||
| Total revenue | $ 18,582 | $ 3,033 | $ 21,615 | $ 19,392 | $ 3,584 | $ 22,976 | (4.2 | ) | (15.4 | ) | (5.9 | ) | ||||||||
| Eleven periods of 2007 (B) | Eleven periods of 2006 (B) | |||||||||||||||||||
| Community | Community | |||||||||||||||||||
| Daily | Newspapers | Daily | Newspapers | % Change | % Change | % Change | ||||||||||||||
| Newspaper | & Shoppers | Total | Newspaper | & Shoppers | Total | Daily | CN&S | Total | ||||||||||||
| Advertising revenue: | ||||||||||||||||||||
| Retail | $ 80,383 | $ 26,835 | $ 107,218 | $ 77,410 | $ 31,236 | $ 108,646 | 3.8 | (14.1 | ) | (1.3 | ) | |||||||||
| Classified | 54,512 | 5,625 | 60,137 | 59,789 | 7,307 | 67,096 | (8.8 | ) | (23.0 | ) | (10.4 | ) | ||||||||
| National | 8,265 | — | 8,265 | 9,552 | — | 9,552 | (13.5 | ) | N/A | (13.5 | ) | |||||||||
| Direct Marketing | 3,920 | — | 3,920 | 5,212 | — | 5,212 | (24.8 | ) | N/A | (24.8 | ) | |||||||||
| Other | — | 362 | 362 | — | 616 | 616 | N/A | (41.2 | ) | (41.2 | ) | |||||||||
| Total advertising revenue | 147,080 | 32,822 | 179,902 | 151,963 | 39,159 | 191,122 | (3.2 | ) | (16.2 | ) | (5.9 | ) | ||||||||
| Circulation revenue | 46,315 | 983 | 47,298 | 46,849 | 2,046 | 48,895 | (1.1 | ) | (52.0 | ) | (3.3 | ) | ||||||||
| Other revenue | 11,017 | 3,553 | 14,570 | 9,482 | 2,932 | 12,414 | 16.2 | 21.2 | 17.4 | |||||||||||
| Total revenue | $ 204,412 | $ 37,358 | $ 241,770 | $ 208,294 | $ 44,137 | $ 252,431 | (1.9 | ) | (15.4 | ) | (4.2 | ) | ||||||||
| (A) 2007 eleventh period: October 29, 2007 to November 25, 2007. | ||||||||||||||||||||
2006 eleventh period: October 23, 2006 to November 19, 2006. | ||||||||||||||||||||
| (B) Eleven periods of 2007: January 1, 2007 to November 25, 2007. | ||||||||||||||||||||
| Eleven periods of 2006: December 26, 2005 to November 19, 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. The revenues for the period are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2007. | ||||||||||||||||||||
| ||||||
Daily newspaper’s core newspaper advertising linage by category and core newspaper and shared mail preprint pieces: | ||||||
| Eleventh period (A) | ||||||
| 2007 | 2006 | % Change | ||||
| Advertising linage (inches): | ||||||
| Full run | ||||||
| Retail | 45,118 | 51,671 | (12.7 | ) | ||
| Classified | 37,731 | 45,531 | (17.1 | ) | ||
| National | 4,908 | 5,326 | (7.8 | ) | ||
| Total full run | 87,757 | 102,528 | (14.4 | ) | ||
| Part run | 2,928 | 8,983 | (67.4 | ) | ||
| Total advertising linage | 90,685 | 111,511 | (18.7 | ) | ||
| Preprint pieces (in thousands) | 89,400 | 78,819 | 13.4 | |||
Total pages and revenue per page of our community newspapers and shoppers: | ||||||
| Total pages: | ||||||
| Community newspapers | 3,512 | 5,070 | (30.7 | ) | ||
| Shoppers and specialty products | 3,750 | 4,106 | (8.7 | ) | ||
| Total pages | 7,262 | 9,176 | (20.9 | ) | ||
| Revenue per page | $ 335.12 | $ 298.55 | 12.2 | |||
Daily newspaper’s core newspaper advertising linage by category and core newspaper and shared mail preprint pieces: | ||||||
| Eleven periods (B) | ||||||
| 2007 | 2006 | % Change | ||||
| Advertising linage (inches): | ||||||
| Full run | ||||||
| Retail | 540,932 | 596,138 | (9.3 | ) | ||
| Classified | 503,597 | 599,006 | (15.9 | ) | ||
| National | 42,298 | 52,405 | (19.3 | ) | ||
| Total full run | 1,086,827 | 1,247,549 | (12.9 | ) | ||
| Part run | 34,889 | 101,193 | (65.5 | ) | ||
| Total advertising linage | 1,121,716 | 1,348,742 | (16.8 | ) | ||
| Preprint pieces (in thousands) | 774,651 | 786,968 | (1.6 | ) | ||
Total pages and revenue per page of our community newspapers and shoppers: | ||||||
| Total pages: | ||||||
| Community newspapers | 43,458 | 64,588 | (32.7 | ) | ||
| Shoppers and specialty products | 45,024 | 52,471 | (14.2 | ) | ||
| Total pages | 88,482 | 117,059 | (24.4 | ) | ||
| Revenue per page | $ 331.60 | $ 298.24 | 11.2 | |||
| (A) 2007 eleventh period: October 29, 2007 to November 25, 2007. | ||||||
2006 eleventh period: October 23, 2006 to November 19, 2006. | ||||||
| (B) Eleven periods of 2007: January 1, 2007 to November 25, 2007. | ||||||
| Eleven periods of 2006: December 26, 2005 to November 19, 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. | ||||||||||||||||||||
| Broadcasting Segment Information (unaudited) | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
Broadcasting revenue by radio and television: | ||||||||||||||||||||
| Eleventh period of 2007 (A) | Eleventh period of 2006 (A) | |||||||||||||||||||
| % Change | % Change | % Change | ||||||||||||||||||
| Radio | Television | Total | Radio | Television | Total | Radio | Television | Total | ||||||||||||
| Revenue | $ 6,918 | $ 11,462 | $ 18,380 | $ 7,651 | $ 15,560 | $ 23,211 | (9.6 | ) | (26.3 | ) | (20.8 | ) | ||||||||
| Eleven periods of 2007 (B) | Eleven periods of 2006 (B) | |||||||||||||||||||
| % Change | % Change | % Change | ||||||||||||||||||
| Radio | Television | Total | Radio | Television | Total | Radio | Television | Total | ||||||||||||
| Revenue | $ 76,130 | $ 121,737 | $ 197,867 | $ 77,461 | $ 135,368 | $ 212,829 | (1.7 | ) | (10.1 | ) | (7.0 | ) | ||||||||
| (A) 2007 eleventh period: October 29, 2007 to November 25, 2007. | ||||||||||||||||||||
| 2006 eleventh period: October 23, 2006 to November 19, 2006. | ||||||||||||||||||||
| (B) Eleven periods of 2007: January 1, 2007 to November 25, 2007. | ||||||||||||||||||||
| Eleven periods of 2006: December 26, 2005 to November 19, 2006. | ||||||||||||||||||||
NOTE: Broadcasting segment information is provided to facilitate comparison of our broadcasting segment results with those of other broadcasting companies and is not representative of the overall business of Journal Communications or its operating results. The revenues for the period are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2007. | ||||||||||||||||||||
