Journal Q3 Revs Down 23%, Radio Declines 17.3%

RADIO ONLINE | , , | :am CT

Journal Communications, parent of Journal Broadcast Group, posted a 22.9% third quarter revenue drop to $105.1 million from $136.3 million in 2008. Revenue from radio fell 17.3% to $17.9 million from $21.7 million. Operating earnings from radio was $3.7 million compared to an operating loss of $12.1 million. Operating earnings included a $4.3 million charge for workforce reductions.

The company reported net earnings of $1.8 million (2 cents per share) as compared to a net loss of $17.1 million (35 cents) in the year-ago period. Excluding the $2.6 million after-tax charge for workforce reductions and the $0.5 million after-tax impact of the increase in a sales and use tax reserve, basic and diluted net earnings per share of class A and B common stock were 8 cents for both.

"In the third quarter, we remained diligent about reducing costs and generating cash while operating in an ongoing difficult advertising environment," said Chairman/CEO Steven J. Smith. "We made additional progress on debt reduction by paying down another $6 million in the quarter. Year to date, Journal Communications has reduced its debt by almost $43 million."

He added, "We expect to see modest improvement in advertising expenditures as we enter the fourth quarter, yet our focus on expense and debt reduction will continue."