-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GKSXE4gBKYDyllkVqOFPruS53tpu8nOfcBefMDHihEWcfDSL7vvAfeFbvgr9gkoP siKzL3YNiWBo7EX1nFawQw== 0001157523-06-000986.txt : 20060202 0001157523-06-000986.hdr.sgml : 20060202 20060202071652 ACCESSION NUMBER: 0001157523-06-000986 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060202 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060202 DATE AS OF CHANGE: 20060202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOURNAL COMMUNICATIONS INC CENTRAL INDEX KEY: 0001232241 STANDARD INDUSTRIAL CLASSIFICATION: NEWSPAPERS: PUBLISHING OR PUBLISHING & PRINTING [2711] IRS NUMBER: 200020198 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31805 FILM NUMBER: 06571522 BUSINESS ADDRESS: STREET 1: 333 WEST STATE STREET CITY: MILWAUKEE STATE: WI ZIP: 83203 FORMER COMPANY: FORMER CONFORMED NAME: JOURNAL CO DATE OF NAME CHANGE: 20030512 8-K 1 a5070495.txt JOURNAL COMMUNICATIONS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ----------------------- Date of Report (Date of earliest event reported): February 2, 2006 Journal Communications, Inc. -------------------------------------------------------- (Exact name of registrant as specified in its charter) Wisconsin 1-31805 20-0020198 --------------- ---------------- ------------------- (State or other (Commission File (IRS Employer jurisdiction of Number) Identification No.) incorporation) 333 West State Street, Milwaukee, Wisconsin 53203 ------------------------------------------------------------ (Address of principal executive offices, including zip code) (414) 224-2616 ------------------------------- (Registrant's telephone number) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) Item 2.02. Results of Operations and Financial Condition. - --------- --------------------------------------------- On February 2, 2006, Journal Communications, Inc. issued a press release announcing financial results for its fourth quarter and year ended December 25, 2005. A copy of the press release is furnished as Exhibit 99 to this Current Report on Form 8-K. Item 9.01. Financial Statements and Exhibits. - --------- --------------------------------- (a) Not applicable. (b) Not applicable. (c) Not applicable. (d) Exhibits. The following exhibits are being furnished herewith: -------- (99) Press release of Journal Communications, Inc., dated February 2, 2006. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JOURNAL COMMUNICATIONS, INC. Date: February 2, 2006 By: /s/ Paul M. Bonaiuto ----------------------------------- Paul M. Bonaiuto Executive Vice President and Chief Financial Officer JOURNAL COMMUNICATIONS, INC. EXHIBIT INDEX TO FORM 8-K Report Dated February 2, 2006 Exhibit No. - ----------- (99) Press release of Journal Communications, Inc., dated February 2, 2006. EX-99 2 a5070495ex99.txt EXHIBIT 99 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 ------------ ------------ Total assets $984,411 $774,519 ============ ============ 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 -----END PRIVACY-ENHANCED MESSAGE-----