Journal Q2 Revenue Flat, Loss Swings to Profit

RADIO ONLINE | Wednesday, July 21, 2010 | 2:31pm CT

Journal Communications posted second quarter revenue of $104.4 million, essentially flat over $104.3 million in 2009. Operating margin grew to 13.8% from a negative 9.1% margin last year. Operating earnings climbed to $14.4 million compared to an operating loss of $9.5 million. The company reported net earnings of $8.1 million (14 cents per diluted share as compared with a net loss of $4.8 million (11 cents).

"Improving revenue trends combined with permanent cost reduction initiatives taken over the last year led to another quarter during which we increased our operating earnings and our operating margin from the prior year. We also reduced our debt during the quarter by another $16.9 million," said Chairman/CEO Steve Smith. "While the economic recovery seems to be somewhat uneven across the country, we were encouraged by the operating results for the quarter."

He continued, "In the second quarter, broadcast revenue increased as automotive advertising was up 31% compared to the prior year and we recorded $1.9 million in political and issue 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. priority for us."