MILWAUKEE, Wis. (
) -- Shares of
are up after the company swung to a profit in the second quarter.
For the quarter ended June 27, the company reported earnings of $8.1 million, or 14 cents per diluted share, compared with a loss of $4.8 million, or 11 cents a share, in the same period a year ago.
Earnings were buoyed by cost cutting and the absence of a $19 million broadcast license impairment charge recorded in the year-ago quarter. Total operating costs declined by 20.9% to $90 million from $113.7 million. Expenses related to printing services decreased 16.6% to $8.2 million from $9.8 million.
Revenue rose 0.1% to $104.4 million from $104.3 million during the quarter. Publishing, the company's largest segment, saw a 4.1% drop in revenue to $47.4 million. Declines were seen across all advertising categories, including significant declines in real estate and automotive advertising.
"The rate of decline in advertising revenue moderated in our publishing business, down 8.5% in the second quarter versus down 13.0% in the first quarter compared to the prior year," said Steve Smith, chairman and CEO of Journal Communications.
Broadcasting revenue increased 7.5% to $47 million from $43.7 million. Revenue from television stations was up 10% to $29.3 million from $26.7 million, and television political and issue advertising revenue improved to $1.7 million from $400,000.
For the first half of the year, earnings were reported at $13.4 million, or 23 cents a share, compared with a loss of $4.7 million, or 11 cents a share, in the same period a year ago.
Revenue fell slightly to $202.9 million, down 1.4%, from $205.8 million. The company saw its only increase in revenue in its broadcasting segment, which increased 8% to $89.6 million from $83 million.
Management expects publishing and printing services segment sales to continue to be down, but expects increases in the broadcasting segment to continue through the next quarter.
Journal Communications shares are up more than 8% in afternoon trading to $4.15.
-- Reported by Theresa McCabe in Boston.
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