FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ending March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
JOURNAL COMMUNICATIONS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
WISCONSIN 39-0382060
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 661, 333 W. State St., Milwaukee, Wisconsin 53203
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
414-224-2728
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES _X_ NO ___
Number of shares of Common Stock Outstanding - March 26, 2000
26,836,496
- ----------
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
INDEX
Page No.
--------
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets
March 26, 2000 and December 31, 1999 2
Consolidated Condensed Statements of Income
Three Periods Ended March 26, 2000 and
March 28, 1999 3
Consolidated Condensed Statements of Cash Flows
Three Periods Ended March 26, 2000 and
March 28, 1999 4
Notes to Consolidated Condensed
Financial Statements-March 26, 2000 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosure of
Market Risk 11
Part II. Other Information
Items 1-6. 11
1
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Part 1, Item 1. Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets
March 26, 2000 and December 31, 1999
(Dollars in thousands)
ASSETS 03/26/2000 12/31/1999
- ------ ---------- ----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 10,249 $ 10,108
Receivables, less allowance for doubtful
accounts of $5,021 and $4,302 97,494 104,434
Inventories 19,235 19,875
Prepaid expenses 6,210 8,756
Deferred income taxes 5,781 5,781
-------- --------
Total current assets 138,969 148,954
Property and equipment, at cost, less accumulated
depreciation of $293,057 and $285,797 221,236 216,698
Goodwill , net 113,834 114,429
Broadcast licenses, net 122,353 123,348
Other intangibles assets, net 20,352 21,569
Other assets 13,862 14,072
-------- --------
Total assets $630,606 $639,070
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Line of Credit $ 16,750 $ 12,115
Accounts payable 41,420 52,092
Taxes on income 5,734 (1,324)
Accrued compensation 20,535 24,258
Deferred revenue 17,606 19,807
Accrued employee benefits 28,674 27,693
Other current liabilities 13,528 10,472
Current portion of long-term obligations 2,612 2,866
-------- --------
Total current liabilities 146,859 147,979
Long-term obligations 5,089 4,991
Deferred income taxes 20,403 20,403
Stockholders' equity:
Common stock - authorized and issued
28,800,000 shares ($0.125 par value) 3,600 3,600
Retained earnings 510,909 504,115
Treasury stock, at cost (56,254) (42,018)
-------- --------
Total stockholders' equity 458,255 465,697
-------- --------
Total liabilities and stockholders' equity $630,606 $639,070
======== ========
Note: The balance sheet at December 31, 1999 has been derived from the audited
financial statements at that date but does not include all the information and
footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes to consolidated condensed financial statements.
2
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Consolidated Condensed Statements of Income
(Dollars in thousands except share and per share amounts)
Three Periods Ended
-------------------
03/26/2000 03/28/1999
----------- -----------
(Unaudited) (Unaudited)
Revenue $ 179,914 $ 165,557
----------- -----------
Costs and expenses:
Cost of sales 95,167 88,945
Selling/administrative expenses 61,584 53,058
----------- -----------
Total costs and expenses 156,751 142,003
----------- -----------
Operating earnings 23,163 23,554
Net interest and dividends 145 1,856
Net gain (loss) on sale of assets (387) 45
----------- -----------
Earnings before income taxes 22,921 25,455
Provision for income taxes 9,084 10,451
----------- -----------
Net earnings $ 13,837 $ 15,004
=========== ===========
Weighted average number of common
shares outstanding 27,323,839 27,578,515
=========== ===========
Earnings per share $ 0.51 $ 0.54
=========== ===========
Cash dividend per share $ 0.30 $ 0.28
=========== ===========
See accompanying notes to consolidated condensed financial statements.
3
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Consolidated Condensed Statements of Cash Flows
(Dollars in thousands)
Three Periods Ended
-------------------
03/26/2000 03/28/1999
--------- ---------
(Unaudited) (Unaudited)
Cash flow from operating activities:
Net earnings $ 13,837 $ 15,004
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation and amortization 11,504 9,394
Net (gain) loss from sales of assets 387 (45)
Net changes in current assets and
current liabilities
Receivables 6,820 5,071
Inventories 573 79
Accounts payable (10,560) 354
Other current assets and liabilities 7,638 3,518
--------- ---------
Net cash provided by operating activities 30,199 33,375
--------- ---------
Cash flow from investing activities:
Proceeds from sales of assets 252 1
Property and equipment expenditures (13,738) (7,872)
Acquisition of businesses (26) (188)
Other 109 89
--------- ---------
Net cash used for investing activities (13,403) (7,970)
--------- ---------
Cash flow from financing activities:
Net increase in line of credit 4,635 0
Net decrease in long-term obligations (180) (342)
Net purchases of treasury stock (12,992) (14,804)
Cash dividends (8,118) (7,728)
--------- ---------
Net cash used for financing activities (16,655) (22,874)
--------- ---------
Net increase in cash and cash equivalents 141 2,531
Cash and cash equivalents
Beginning of year 10,108 131,051
--------- ---------
March 26, 2000 and March 28, 1999 $ 10,249 $ 133,582
========= =========
See accompanying notes to consolidated condensed financial statements.
4
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Notes to Consolidated Condensed Financial Statements
----------------------------------------------------
March 26, 2000
--------------
(Unaudited, Dollars in thousands)
1. Basis of Presentation
---------------------
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with accounting principles generally accepted
in the United States for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by
accounting principles generally accepted in the United States for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included.
Certain prior year amounts have been reclassified to conform to the 2000
presentation.
Operating results for the three periods ended March 26, 2000 are not
necessarily indicative of the results that may be expected for the year
ended December 31, 2000. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Journal
Communications, Inc. annual report on Form 10-K for the year ended December
31, 1999.
2. Accounting Periods
------------------
The Registrant divides its calendar year into thirteen four-week accounting
periods, except that the first and thirteenth periods may be longer or
shorter to the extent necessary to make each accounting year end on
December 31. Registrant follows a practice of publishing its financial
statement at the end of the third accounting period (its first quarter), at
the end of the sixth accounting period (its second quarter), and at the end
of the tenth accounting period (its third quarter).
3. Segment Information
-------------------
Three Periods Ended
-------------------
03/26/2000 03/28/1999
---------- ----------
(Unaudited) (Unaudited)
Revenues by operating segment
-----------------------------
Journal Sentinel Inc. $ 56,487 $ 57,677
Journal Broadcast Group 29,819 23,346
Norlight Telecommunications 26,833 23,174
IPC Communication Services 26,297 22,421
Add Inc. 24,101 24,309
NorthStar Print Group 13,456 12,200
PrimeNet Marketing Services 3,592 3,173
Corporate and eliminations (671) (743)
--------- ---------
$ 179,914 $ 165,557
========= =========
5
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Notes to Consolidated Condensed Financial Statements
----------------------------------------------------
March 26, 2000
--------------
(Unaudited, Dollars in thousands)
Three Periods Ended
-------------------
03/26/2000 03/28/1999
---------- ----------
(Unaudited) (Unaudited)
Earnings (losses) before income taxes by operating segment
- ----------------------------------------------------------
Journal Sentinel Inc. $ 10,557 $ 10,774
Journal Broadcast Group 2,862 4,986
Norlight Telecommunications 8,256 7,760
IPC Communication Services 1,662 235
Add Inc. (1,214) 68
NorthStar Print Group (55) (337)
PrimeNet Marketing Services 281 110
Corporate and eliminations 427 3
Net interest and dividends 145 1,856
--------- ---------
$ 22,921 $ 25,455
========= =========
03/26/2000 12/31/1999
--------- ---------
(Unaudited) (Audited)
Total assets by operating segment
- ---------------------------------
Journal Sentinel Inc. $ 70,285 $ 68,492
Journal Broadcast Group 271,020 277,834
Norlight Telecommunications 93,117 91,861
IPC Communication Services 53,881 56,438
Add Inc. 72,639 72,950
NorthStar Print Group 29,146 29,339
PrimeNet Marketing Services 14,650 14,426
Corporate and eliminations 25,868 27,730
--------- ---------
$ 630,606 $ 639,070
========= =========
See Management's Discussion and Analysis of Consolidated Financial Condition and
Results of Operations.
4. Comprehensive Income
--------------------
Total comprehensive income was $13,667 for the three periods ended March
26, 2000, and $14,621 for the three periods ended March 28, 1999.
6
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Item 2. Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
---------------------------------------------
Results of Operations
- ---------------------
Consolidated revenue for the three periods ended March 26, 2000, the Company's
first quarter, totaled $179.9 million, an increase of $14.4 million or 8.7%
compared to the first quarter of 1999. The companies contributing to the revenue
growth were IPC Communication Services (IPC) and Norlight Telecommunications
(Norlight). Revenue from two significant 1999 Journal Broadcast Group
acquisitions, KMIR-TV in Palm Springs, Calif., and the 13 radio stations
purchased from Great Empire Broadcasting, Inc., also contributed to the
increase.
While the first quarter showed strong revenue growth, consolidated pretax
earnings were $22.9 million, a decrease of $2.5 million or 10% versus the same
period in 1999. Increases in pretax earnings at IPC, Norlight, NorthStar Print
Group, and PrimeNet Marketing Services (PrimeNet) were more than offset by
declines at Journal Broadcast Group, Add Inc. and corporate investment interest
income.
Journal Sentinel Inc. revenue was $56.5 million and $57.7 million for the first
quarter of 2000 and 1999, respectively. The 2.1% decline is a result of
shortfalls in both advertising and circulation. In addition to the closing of
two major retailers in the Milwaukee market, other large retailers have
curtailed their advertising spending in both ROP (run-of-press) and preprints.
Circulation has seen a drop-off in both daily and Sunday net-paids as home
deliveries in Milwaukee County have declined and single copy sales in the
Milwaukee County are down due to rule changes by the Audit Bureau of
Circulations (ABC). Earnings before taxes were $.2 million behind the first
quarter of 1999 at $10.6 million mainly due to higher payroll and employee
benefit costs.
Consolidated Journal Broadcast Group saw its revenue increase 27.7% or $6.5
million to $29.8 million in the first quarter of 2000 over 1999. However, if we
eliminate the 1999 television and radio acquisitions and compare revenue on a
same-station basis, the increase was approximately $650,000, or 2.8%. Earnings
before taxes were $2.9 million and $5.0 million, respectively, for the first
quarters of 2000 and 1999. Again, on a same-station basis, earnings before taxes
were $3.6 million in 2000, a decrease from 1999 of $1.4 million.
7
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Item 2. Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
---------------------------------------------
Revenue from the television stations for the first quarter in 2000 was $15.8
million, compared with $14.6 million in the first quarter of 1999, an increase
of 8.2%. Without KMIR-TV, which was acquired in 1999, revenue lagged the first
quarter of last year by $300,000 or 2%. This decline is mainly due to slow
national sales at WTMJ-TV in Milwaukee, Wis., which have outweighed an improved
sales effort at KTNV in Las Vegas, Nev. Television earnings before taxes were
$3.9 million in the first quarter of 2000 compared with $4.6 million in 1999.
The revenue shortfalls at WTMJ-TV have resulted in earnings shortfalls as well.
Same-station television pretax earnings were $3.7 million in 2000.
Revenue from the radio stations was $14.0 million and $8.7 million for the first
quarter of 2000 and 1999, respectively, an increase of 60.6%. Excluding the $4.3
million contributed by the 13 radio stations acquired in 1999, revenue increased
10.8% compared to the first quarter of 1999. Revenue increases were recorded in
the Milwaukee, Knoxville, Tenn. and Boise, Idaho, markets. In Milwaukee, ratings
have increased at WKTI-FM and WTMJ-AM continues to be the number one revenue
generating station in the market. Revenue increases in Boise have been a result
of new management, an expanded, high quality sales force and improved Arbitron
ratings. The operations in Knoxville have experienced an increase in sales and
have been aggressively marketing and promoting their stations. The radio
operations reported a pretax loss of $1 million in the first quarter of 2000
compared with pretax earnings of $400,000 in 1999. The 13 newly acquired radio
stations accounted for the $1 million loss while the same-station radio stations
recorded breakeven results.
During the first quarter of 2000, Norlight has continued its strong revenue and
earnings performance. Revenue increased $3.7 million or 15.8% compared to first
quarter 1999. Earnings before taxes were $8.3 million in first quarter 2000 and
$7.8 million in first quarter 1999, a 6.4% increase. The Michigan network
expansion, which began in 1999, is expected to be partially operational in April
and fully operational by September. The additional network expansion into
Indiana and Minnesota is expected to begin operating in third quarter 2000.
These additional capital outlays are expected to bring increased future revenues
to the Company.
Revenue from IPC was $26.3 million and $22.4 million in the first quarter of
2000 and 1999, respectively. The increase of 17.3% is mainly due to the
procurement of new publication accounts and increased volume from its existing
publications and software customers in its Michigan and California operations.
The European operation has experienced an increase in its fulfillment business
to help drive revenue growth. Earnings before taxes of $1.7 million represent an
increase of $1.4 million compared to first quarter 1999. This increase is the
result of increased volume and improvements in the manufacturing processes at
both the Michigan and California operations.
8
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Item 2. Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
---------------------------------------------
Add Inc.'s revenue was $24.1 million in first quarter 2000 compared to $24.3
million in first quarter 1999. Revenue increases from the start-up papers in the
Fox Valley region in Wisconsin and publications in Florida were offset by
decreases from publications and printing in Ohio and Central Wisconsin. Add Inc.
recorded a pretax loss of $1.2 million in the first quarter of 2000 compared
with breakeven results in 1999. This is mainly due to higher than anticipated
costs for the Fox Valley start-ups. In March 2000, Add Inc. acquired the
Berkshire Pennysaver, a free publication delivered to over 14,000 residences and
businesses in Lee, Mass. Also in March, Add Inc. announced the closing of its
Community Newspapers printing facility in Oak Creek, Wis., consolidating these
operations with those in Hartland, Wis. A new press is currently being installed
at the Waupaca, Wis. printing facility, which will increase Add Inc.'s
productivity and color printing availability. This investment should provide a
platform for growth in revenue and profitability.
NorthStar Print Group's revenue was $13.5 million and $12.2 million in first
quarter 2000 and 1999, respectively. All three printing operations contributed
to the $1.3 million revenue increase. A pretax loss of $55,000 was a $282,000
improvement over the same time period of 1999.
PrimeNet experienced improvements in both revenue and earnings before taxes at
its St. Paul, Minn., and Clearwater, Fla., operations. First quarter 2000
revenue was $3.6 million compared to $3.2 million during first quarter 1999.
Earnings before taxes increased $171,000 or 156.1% during first quarter 2000 to
$281,000.
Nonoperating Income and Taxes
- -----------------------------
Interest income from short-term investments decreased by $1.7 million, compared
to first quarter 1999 as a result of a decrease in cash and cash equivalents.
These funds were principally used to acquire both Great Empire Broadcasting and
KMIR-TV. The effective tax rate was 39.6% in first quarter 2000 compared to
41.1% in first quarter 1999. This change is the result of implementing
strategies that reduced state income taxes, the impact of foreign net operating
losses and permanent tax differences.
Liquidity and Capital Resources
- -------------------------------
Cash provided by operations, which is a significant source of the Company's
liquidity, was $30.2 million in first quarter 2000 compared to $33.4 million in
first quarter 1999. Cash used for investing purposes was $13.4 million during
the first quarter in 2000 compared to $8.0 million during the same time period
in 1999. The Company used this cash to fund capital expenditures of property and
equipment, specifically for the Norlight fiber-optic network expansion and new
presses for Add Inc. and IPC. Cash for financing decreased to $16.7 million in
first quarter 2000 from $22.9 million in first quarter 1999. The Company
purchased fewer shares of treasury stock in 2000 compared with the same period
in 1999 and increased it borrowings on its line of credit by $4.6 million.
9
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
--------------- ------
(3 Accounting Periods)
Item 2. Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations
---------------------------------------------
As of March 26, 2000, $16.8 million of the Company's $45 million credit facility
was outstanding. The Company expects to use the line of credit to fund capital
expenditures of property and equipment, including initial down payments for the
new Journal Sentinel press facility, and other general corporate purposes.
Other Matters
- -------------
On April 11, 2000 the Company completed the sale of the assets of KSRV-AM and
KSRV-FM which serve the Ontario, Oregon, radio market to Horizon Broadcasting
Group for $2.5 million. The Company expects to record a minimal gain on the
sale. On April 12, 2000, the Company completed the purchase of the assets of
KFXJ-FM in Boise, Idaho from Doubledee Broadcast Group for $3.7 million.
In November 1999, the Company reached an agreement to purchase KOEZ-FM, licensed
to Newton, Kansas, from Kansas Radio Assets LLC. The Company is awaiting
approval by the Federal Communications Commission.
Year 2000
- ---------
The Company is not aware of any material problems resulting from Year 2000
issues, either with our products, our internal systems or products and services
of third parties. The Company will continue to monitor its mission critical
computer applications and those of suppliers and vendors throughout 2000 to
ensure that any latent Year 2000 matters that may arise are addressed promptly.
Forward Looking Statements
- --------------------------
This Interim Report on Form 10-Q contains forward-looking statements that may
state the Company's or management's current expectations. These statements are
subject to certain risks, trends, and uncertainties that could cause actual
results to differ materially from those anticipated. Among such risks, trends,
and uncertainties are changes in advertising demand, newsprint prices, interest
rates, regulatory rulings, the availability of quality broadcast programming at
competitive prices, changes in the terms and conditions of network affiliation
agreements, quality and rating of network over-the-air broadcast programs,
legislative or regulatory initiatives affecting the cost of delivery of
over-the-air broadcast programs to the Company's customers, economic conditions
and the effect of acquisitions, investments, and dispositions on the Company's
results of operations or financial condition. The words "believe," "expect,"
"anticipate," "intends," "plans," "should," "projects," "considers," and similar
expressions generally identify forward-looking statements. Readers are cautioned
not to place undue reliance on such forward-looking statements, which are as of
the date of this filing.
10
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Item 3. Quantitative and Qualitative Disclosure of Market Risk
--------------------------------------------------------------
None.
Part II. Other Information
--------------------------
Item 1 - Legal Proceedings
--------------------------
On April 14, 2000, the Milwaukee County Circuit Court (J. Donegan) on a motion
for summary judgement in Gauthier v. Journal Communications, Inc., ruled that
the Company was contractually liable to a class of plaintiffs for requiring them
to sell back their Journal units prematurely. The suit was filed by five former
employees who owned Journal units (unitholders). The unitholders were terminated
at the time of the 1995 merger of The Milwaukee Journal and the Milwaukee
Sentinel. The judge previously ruled that the lawsuit could be a class action to
include other former unitholders who terminated during the newspaper merger. As
a result of the merger, some full-time employees took early retirement and
others received voluntary separation incentives. Under the Journal Employees'
Stock Trust Agreement (JESTA), employees whose employment is terminated before
retirement are required to sell back all units to the Company upon termination.
In January 1995, a stock sell-back policy was approved by the trustees of JESTA
that employees who lose their jobs because of corporate restructuring were given
more time to sell back their stock. Employees with twenty (20) or more years as
a unitholder had up to five (5) years to sell their stock, one-fifth each year;
fifteen (15) to twenty (20) years a unitholder had up to four (4) years,
one-fourth each year; ten (10) to fifteen (15) years as a unitholder had three
(3) years, one-third each year; five (5) to ten (10) years as a unitholder had
two (2) years, one-half each year; and two (2) to five (5) years as a unitholder
had one year. The judge ruled that the former employees, who signed separation
agreements in 1995, should have been allowed to sell back units at any point
during the time period. He based his decision on a Journal Sentinel internal
memorandum that outlined termination incentives, including the stock sell-back
schedule but without the language specifying the portion to be sold each year.
That information was widely known and understood. The memorandum was not part of
the separation agreement that employees signed, but it was referred to in the
agreement. Under the judge's ruling, for instance, a twenty (20) year unitholder
would be permitted to hold all units until five years had passed, rather than
selling some each year. The Company disagrees with this ruling and on April 21,
it filed an interlocutory appeal before the Wisconsin Court of Appeals to have
this decision reversed. At this time the impact of this decision on the Company
or JESTA cannot be determined.
Item 2 - Changes in Securities and Use of Proceeds
--------------------------------------------------
None
11
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Item 3 - Defaults upon Senior Securities
----------------------------------------
None
Item 4 - Submission of Matter to a Vote of Security Holders
-----------------------------------------------------------
None
Item 5 - Other Information
--------------------------
None
Item 6 - Exhibits and Reports on Form 8-K
-----------------------------------------
(a) Exhibit (27) Financial Data Schedule
(b) None
12
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JOURNAL COMMUNICATIONS, INC.
----------------------------
Registrant
Date May 10, 2000 /s/ Steven J. Smith
------------ ------------------------------------------
Steven J. Smith, Chairman and Chief
Executive Officer
Date May 10, 2000 /s/ Paul M. Bonaiuto
------------ ------------------------------------------
Paul M. Bonaiuto, Executive Vice President
and Chief Financial Officer
13
<PAGE>
FORM 10-Q
JOURNAL COMMUNICATIONS, INC.
For Quarter Ended March 26, 2000 Commission file number 0-7831
-------------- ------
(3 Accounting Periods)
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 FINANCIAL DATA SCHEDULE
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER<F1>
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,249
<SECURITIES> 0
<RECEIVABLES> 97,494
<ALLOWANCES> 5,021
<INVENTORY> 19,235
<CURRENT-ASSETS> 138,969
<PP&E> 514,293
<DEPRECIATION> 293,057
<TOTAL-ASSETS> 630,606
<CURRENT-LIABILITIES> 146,859
<BONDS> 5,089
0
0
<COMMON> 3,600
<OTHER-SE> 454,655
<TOTAL-LIABILITY-AND-EQUITY> 630,606
<SALES> 179,914
<TOTAL-REVENUES> 179,914
<CGS> 95,167
<TOTAL-COSTS> 95,167
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 245
<INCOME-PRETAX> 22,921
<INCOME-TAX> 9,084
<INCOME-CONTINUING> 13,837
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,837
<EPS-BASIC> 0.51
<EPS-DILUTED> 0.51
<FN>
<F1> 3 ACCOUNTING PERIODS
</FN>
</TABLE>
