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 31, 1998 Commission File Number 0-7832
JOURNAL EMPLOYEES' STOCK TRUST
(Exact name of registrant as specified in its charter)
WISCONSIN 39-6153189
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
P. O. Box 661 333 W. State Street Milwaukee, Wisconsin 53201
(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
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended March 31, 1998 Commission File Number 0-7832
INDEX
Page No.
Part I Financial Information (Unaudited)
Statement of Cash and Liabilities 2
Statement of Trust Income 3
Statement of Cash Flows 4
Notes to Financial Statements 5
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II Other Information 7
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended March 31, 1998 Commission File Number 0-7832
Statement of Cash and Liabilities
3-31-98 12-31-97
(Unaudited)
Assets:
Cash in bank $ 0 $ 100
----- ------
$ 0 $ 100
===== ======
Liabilities:
Note payable to Journal Communications
Inc. $ 0 $ 100
----- ------
$ 0 $ 100
===== ======
Note: The Statement of Cash and Liabilities at December 31, 1997 has
been derived from the audited financial statements at that date.
See notes to financial statements
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended March 31, 1998 Commission File Number 0-7832
Statement of Trust Income
Three Months Ended
3-31-98 3-31-97
(Unaudited) (Unaudited)
Dividend on common stock of
Journal Communications, Inc.
Held by the Trust $7,051,634 $6,808,124
---------- ----------
$7,051,634 $6,808,124
========== ==========
Per share $0.55 $0.55
----- -----
$0.55 $0.55
===== =====
Dividend to holder of units of
beneficial interest $7,051,634 $6,808,124
---------- ----------
$7,051,634 $6,808,124
========== ==========
Per unit $0.55 $0.55
----- -----
$0.55 $0.55
===== =====
See notes to financial statements
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended March 31, 1998 Commission File Number 0-7832
Statement of Cash Flows
Three Months Ended
03-31-98 03-31-97
(Unaudited) (Unaudited)
Sources of cash:
Receipts from purchasers of Units
of Beneficial Interest (Note 3) $62,908,301 $50,216,883
Dividends received from
Journal Communications Inc. $ 7,051,634 $ 6,808,124
----------- -----------
$69,959,935 $57,025,007
Uses of cash:
Disbursements to sellers of
Units of Beneficial Interest (62,908,301) (49,629,235)
Dividends paid to holders of
Units of Beneficial Interest ( 7,051,634) ( 6,808,124)
Reduction of note payable to
Journal Communications, Inc. ( 100) 0
----------- -----------
Net increase (decrease) in cash ( 100) 587,648
Cash at beginning of year 100 100
----------- -----------
Cash at March 31 $ 0 $ 587,748
=========== ===========
See notes to financial statements
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended March 31, 1998Commission File Number 0-7832
Notes to Financial Statements
(Unaudited)
1) Organization
The only business of Journal Employees' Stock Trust (Trust), under
agreement dated May 15, 1937, as amended, is the record holding of
common stock of Journal Communications, Inc. (Company), the issuance
of Units of Beneficial Interest in such shares (Units), and in
limited instances, the voting of shares of the Company's common stock
held by it. The Trust is administered by five trustees who are
officers/directors of the Company and receive no remuneration for
services performed for the Trust. The trustees are required to
distribute all Trust income (consisting solely of dividends paid by
the Company), less such amounts as the trustees deem necessary for
payment of administrative expenses, as soon as practicable after
receipt. Since its origination, substantially all expenses of the
Trust have been paid by the Company, and cash dividends payable to
the Trust have been paid directly to the unitholders by the Company.
The Trust distributes all of its income and, therefore, pays no
income taxes under applicable income tax codes.
2) Common Stock of the Company
Upon deposit by the Company of shares of common stock, the Trust
issues a like number of Units and the Company offers such Units to
employees of the Company (Employees). Sales of Units by the Trust
are made at the formula price determined in accordance with the Trust
Agreement.
3) Unitholders' Sales of Units of Beneficial Interest
Unitholders may sell all or a portion of their Units only to other
employees designated by the President of the Company or, under
certain circumstances, to shareholders of the Company, at the current
formula price under the terms and conditions of the Trust Agreement.
If the Units are not sold in this manner, the Units are freely
transferable, subject to a five-year right of the Company to purchase
the Units at any time at the formula price. Payments for Units sold
by employees are deposited with the Trust by the purchaser and
remitted by the Trust to the seller.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Income is based solely on dividends from Journal Communications, Inc.
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K There were no reports on Form 8-C filed
for the three months ended March 31, 1998.
<PAGE>
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 EMPLOYEES' STOCK TRUST
By: /s/ Steven J. Smith Date: May 14, 1998
Steven J. Smith
Trustee
By: /s/ Richard A. Williams Date: May 14, 1998
Richard A. Williams
Trustee
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF JOURNAL EMPLOYES' STOCK TRUST AS OF AND FOR THE
THREE MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 7,052<F1>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,052<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0<F2>
<EPS-DILUTED> 0<F2>
<FN>
<F1>The only revenue and expense associated with the trust pertains to
dividends received and paid out. All dividends received are in turn
paid out, accounting for net income of zero ($0).
<F2>Earnings per share is not applicable as net income is zero ($0).
</FN>
</TABLE>
