Journal Communications, Inc. (NYSE:JRN) today announced results for its third quarter ended September 23, 2012.
“Journal Communications had a strong third quarter with consolidated revenue up more than 11% driven largely by political and issue advertising in our television business,” said Steven J. Smith, Chairman and CEO.
“Broadcast revenue was up 25% primarily driven by political and issue advertising, but also due to the successful summer Olympics on our NBC stations and core revenue growth. While our publishing business saw revenue decline just over 4%, we reported positive growth in key categories including retail ROP advertising, circulation, and commercial print. These revenue increases drove a 68% increase in consolidated operating earnings.”
“This quarter we clearly advanced our strategy of adding broadcast assets to the business as we completed the agreement to purchase NewsChannel 5 - WTVF, an exceptional television station in Nashville and one of the top CBS affiliates in the country. We also simplified our capital structure by repurchasing all of the outstanding class C shares.”
Third Quarter 2012 Results
Note that unless otherwise indicated, all comparisons are to the third quarter ended September 25, 2011.
For the third quarter, revenue of $97.8 million increased 11.4% compared to $87.8 million. Operating earnings of $13.6 million (which included $0.6 million in acquisition and integration related costs at broadcast, a $0.5 million building impairment charge primarily in broadcast and a $0.5 million workforce reduction charge at the daily newspaper) increased 67.7% compared to $8.1 million. Excluding these items, and a workforce reduction charge of $1.3 million in 2011, operating earnings were $15.2 million, up 61.6%. Net earnings increased to $7.7 million compared to $4.4 million.
In the third quarter, basic and diluted net earnings per share of class A and B common stock were $0.14 compared to $0.07. Excluding after-tax charges of $1.0 million for the items noted above, basic and diluted net earnings per share of class A and B common stock were $0.16 in the quarter.