Journal Earnings Report: 4 Percent Radio Revenue Drop

Journal Communications, Inc. Tuesday announced results for its first quarter ended March 30, 2014.

Steven J. Smith

“We are pleased to report that Journal Communications revenue grew nearly 4% in the first quarter benefiting from the Winter Olympics and growth in television retransmission revenue. In addition, publishing advertising revenue was essentially flat for the quarter,” said Steven J. Smith, Chairman and CEO of Journal Communications.

“In the first quarter, Journal Communications’ total revenue was $97 million, driving an operating earnings increase of 44% in the quarter.”

First Quarter 2014 Highlights and Changes from First Quarter 2013:

• Revenue of $96.6 million, up 3.7%.
• Television revenue of $46.0 million, up 12.6%.
• Retransmission revenue of $9.8 million, up 85.6%.
• Operating earnings of $12.0 million, up 43.7%.
• After-tax gain on the sale of Palm Springs television stations of $6.0 million - EPS of $0.12 from discontinued operations.
• Diluted EPS of $0.12 from continuing operations, compared to $0.08.

For the first quarter, revenue from radio decreased 4.0% to $15.2 million. Radio political advertising revenue was $0.1 million in each of 2014 and 2013. Local advertising revenue, excluding political, decreased 3.2%, primarily due to a decrease in restaurant and financial advertising. Digital revenue, which is reported in local revenue, was $0.6 million, up 7.8%. National advertising revenue, excluding political, decreased 18.0%, primarily due to a decrease in automotive and financial advertising. Total revenue, excluding political revenue, was $15.1 million, down 4.2%.

Operating earnings from radio were $2.1 million compared to $2.4 million, a decrease of 11.9%. Radio operating expenses decreased 2.6%, or 0.8% excluding a $0.2 million non-cash building impairment charge recorded in 2013, primarily due to lower programming rights fees.