Journal Communications Reports Third Quarter 2009 Results
Journal Communications, Inc. today announced results for its third quarter ended September 27, 2009.
Company Supplied -- Graphic Arts Online, October 20, 2009
MILWAUKEE--Journal Communications, Inc. (NYSE:JRN) today announced results for its third quarter ended September 27, 2009.
"In the third quarter, we remained diligent about reducing costs and generating cash while operating in an ongoing difficult advertising environment," said Steven J. Smith, Chairman and Chief Executive Officer of Journal Communications. "We made additional progress on debt reduction by paying down another $6 million in the quarter. Year to date, Journal Communications has reduced its debt by almost $43 million.
"Journal Sentinel continues its restructuring initiative to align employee costs with revenue. In spite of a significant workforce reduction charge, Journal Sentinel was profitable in the quarter.
"Although the advertising environment remains challenged, we did see some improvements in broadcast revenues as the quarter progressed. We also signed two significant long term printing contracts with publishing customers, as we continue to capitalize on our Journal Sentinel production facility.
"We expect to see modest improvement in advertising expenditures as we enter the fourth quarter, yet our focus on expense and debt reduction will continue."
Third Quarter 2009 Results
Note that unless otherwise indicated, all comparisons are to the third quarter ended September 28, 2008.
For the third quarter, revenue of $105.1 million decreased 22.9% compared to $136.3 million. Operating earnings of $3.7 million included a $4.3 million charge for workforce reductions in the quarter and a $0.8 million increase in a sales and use tax reserve. Excluding these two items and a $38.8 million non-cash impairment charge for broadcast licenses and a $3.7 million charge for workforce reductions, both in the third quarter last year, operating earnings of $8.8 million compared to $15.5 million, a decrease of 42.9%. The net earnings of $1.8 million compares to a net loss of $17.1 million.
In the third quarter 2009, basic and diluted net earnings per share of class A and B common stock were $0.02 for both. Excluding the impact of the $2.6 million after-tax charge for workforce reductions and the $0.5 million after-tax impact of the increase in a sales and use tax reserve, basic and diluted net earnings per share of class A and B common stock were $0.08 for both. This compared to net loss per share of $0.35 for both in 2008. Excluding the impact of the $23.5 million after-tax non-cash impairment charge and the $2.4 million after-tax workforce reduction charge, basic and diluted net earnings per share of class A and B common stock were $0.16 for both.
EBITDA (net earnings (loss) excluding the gain/loss from discontinued operations, net; total other expense, net; provision (benefit) for income taxes; depreciation; amortization; and non-cash impairment charges) of $10.7 million decreased 44.0% compared to $19.1 million.
