Journal Communications Reports Second Quarter 2013 Results

Journal Communications, Inc. (NYSE:JRN) today announced results for its second quarter ended June 30, 2013.

“Journal Communications had a solid second quarter, driven by revenue gains in our broadcast group, as well as improving advertising revenue trends in publishing. Total revenue of $101.2 million was up 6% year over year,” said Steven J. Smith, Chairman and CEO of Journal Communications. “Operating earnings decreased 2.6% as lower political revenue offset operating earnings increases in broadcast, driven by NewsChannel 5 in Nashville, as well as higher earnings at our daily newspaper.”

“Within the Broadcast group, we continue to see core revenue growth. On a same-station basis and excluding political advertising, revenue was up 6%, with television up 7% and radio up 5%.”

“On the publishing side of the business, we continue to align costs with revenue. An emphasis on cost savings, coupled with improved revenue, drove second quarter operating earnings for the Milwaukee Journal Sentinel of $2.7 million, up nearly 36% year over year.”

Second Quarter 2013 Results

Note that unless otherwise indicated, all comparisons are to the second quarter ended June 24, 2012. Same-station comparisons exclude the operations of NewsChannel 5 in Nashville, Tennessee, which we purchased in December 2012.

For the second quarter, revenue of $101.2 million increased 6.0% and operating earnings of $13.1 million decreased 2.6%. Net earnings were $6.6 million, a decrease of 13.3%.

In the second quarter, basic and diluted net earnings per share of class A and B common stock were $0.13 in both years.

The operating margin was 13.0% for the second quarter compared to 14.1%. Adjusted EBITDA, as defined in Table 4, was $20.4 million, a decrease of 1.6% from $20.7 million.

Consolidated and Segment Results

The following table presents our revenue and operating earnings (loss) by segment for the second quarters of 2013 and 2012 (dollars in millions).
  Q2   Q2   %
    2013   2012   Change
Broadcasting   $ 62.9   $ 54.5   15.3
Publishing     38.4     41.1   (6.5)
Corporate eliminations     (0.1)     (0.1)   (3.4)
Total Revenue   $ 101.2   $ 95.5   6.0
Operating earnings (loss):            
Broadcasting   $ 12.3   $ 13.1   (6.1)
Publishing     3.1     2.4   27.0
Corporate     (2.3)     (2.0)   (9.5)
Total operating earnings   $ 13.1   $ 13.5   (2.6)

For the second quarter, total expenses of $88.1 million increased 7.4% compared to $82.0 million, driven by the acquisition of NewsChannel 5 in Nashville.

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