Posted on 02/03/2006 7:06:00 PM PST by abb
CHICAGO Journal Communications, publisher of the Milwaukee Journal Sentinel, Thursday reported its fourth-quarter 2005 net earnings fell 26.5% to $16.7 million, principally because of falling telecommunications business, tough broadcast comparables with 2004, and Hurricane Katrina damage that shuttered a commercial printing plant.
Publishing revenue, including the daily paper, decreased 3.8% to $85.4 million compared to $88.7 million in the 2004 fourth quarter. Operating earnings from publishing decreased 14.6% to $9.4 million compared to $11.1 million, which Journal Communications said reflected $2.2 million in pre-tax costs of closing the hurricane-damaged printing plant.
At the Journal Sentinel, executives said in the conference call, print classified advertising revenue was down 22.6%, while online decreased 1.5%. Employment classified was up 2.7%. and real estate classified increased 10.4%. Like other papers nationally, auto classified and ROP was weak, falling a combined 27%.
Total company earnings per diluted share in the fourth quarter fell to $0.22 from $0.26 in 2005.
For the full year ended December 25, 2005, Journal Communications said, net earnings were down 15.6% to $66.2 million, including $2.2 million in hurricane-related costs.
"Clearly, 2005 was a year in which we did not achieve our financial plan," Chairman and CEO Steven J. Smith told analysts in the conference call.
He said broadcast -- where revenues decreased 6.9% to $47.7 million in the quarter -- was hurt by tough comparables with the last quarter of 2004, which included the Summer Olympics. "We were unable to fully replace $16.4 million" in Olympics-related revenues," he said. Broadcast was also hurt by low ratings at its three NBC-affiliated stations.
Journal Communication results were also depressed by its telecommunications business, where operating income plunged 43.7% to $4.6 million on revenue that decreased 6.2% to $33.7 million.
"On a positive note, at the Journal Sentinel we added excellent journalists to increase our margin imperative," Smith said. Journal Communications said the operating margin for the year was 16.2%, up 16 basis points.
The company projects that first-quarter operating margins at the Journal Sentinel newspaper will be between 16% to 20%, chiefly because of the operation of a new distribution center and greater utilization of its press capacity.
In the call, executives discussed circulation irregularities at the Journal Sentinel. They said the Audit Bureau of Circulations will soon release restated audits for 2003 and 2004, which it said will show a decline of Sunday circulation of 2.6% to 2.8%, and daily decreases of 0.6% to 0.8%. E&P Staff (letters@editorandpublisher.com)
More conservatives who disagree with liberal papers need to do the same thing - cancel their subscriptions. Let's speed the demise of MSM.
As a Milwaukeean let me say aina-too bad?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.