Journal Communications, Inc. (NYSE:JRN) today announced results for its third quarter ended September 29, 2013.
“Journal Communications had a solid third quarter, driven by continued improving advertising revenue trends in publishing, as well as revenue gains in our broadcast group. Total revenue of $97.7 million was essentially flat compared to 2012 which had record political and Olympic spending,” said Steven J. Smith, Chairman and CEO of Journal Communications.
“Within the broadcast group, revenue was up 3%, with television up 2% and radio up nearly 4%. Revenue from NewsChannel 5 in Nashville helped us replace the political and Olympic advertising dollars we saw during the third quarter of last year.”
“Although we were challenged by a protracted retransmission consent agreement negotiation with Time Warner Cable, which took our television stations off of their system in four of our markets for eight weeks, we are pleased with the result of the negotiation.”“On the publishing side of the business, we’re pleased to report that advertising revenue was up almost 5% year over year at the daily newspaper. A continued focus on advertising sales initiatives, along with ongoing efforts to control expenses, contributed to a 52% increase in operating earnings for the daily newspaper.” Third Quarter 2013 Results Note that unless otherwise indicated, all comparisons are to the third quarter ended September 23, 2012. Same-station comparisons exclude the operations of NewsChannel 5 in Nashville, Tennessee, which we purchased in December 2012. For the third quarter, revenue of $97.7 million decreased 0.1% and operating earnings of $9.5 million decreased 29.7%. Net earnings were $4.5 million, a decrease of 40.9%. In the third quarter, basic and diluted net earnings per share of class A and B common stock were $0.09 compared to $0.14. The operating margin was 9.8% for the third quarter compared to 13.9%. Adjusted EBITDA, as defined in Table 4, was $15.6 million, a decrease of 24.7%.