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 September 30, 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 of (I.R. S. Employer Identification No.)
incorporation or organization)
P.O. Box 661, 333 W. State St. Milwaukee, Wisconsin 5320l
(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
Quarter Ended September 30, 1998 Commission file number 0-7832
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INDEX
Page No.
Part I. Financial Information (Unaudited)
Statement of Cash and Liabilities 1
Statement of Trust Income 2
Statement of Cash Flows 3
Notes to Financial Statements 4
Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
Part II. Other Information 6
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
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Statement of Cash and Liabilities
9/30/98 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
1
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
------------------- ------
<TABLE>
Statement of Trust Income
-------------------------
<CAPTION>
Three Months Ended Nine Months Ended
09/30/98 09/30/97 09/30/98 09/30/97
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Dividend on common stock of
Journal Communications, Inc.
<S> <C> <C> <C> <C>
Held by the Trust $6,922,987 $6,726,254 $20,962,510 $20,228,469
---------- ---------- ----------- -----------
$6,922,987 $6,726,254 $20,962,510 $20,228,469
========== ========== =========== ===========
Per share $ 0.55 $ 0.55 $ 1.65 $ 1.65
------------- ------------- ------------ -------------
$ 0.55 $ 0.55 $ 1.65 $ 1.65
============= ============= ============ ============
Dividend to holder of units of $6,922,987 $6,726,254 $20,962,510 $20,228,469
---------- ---------- ----------- -----------
Beneficial interest
$6,922,987 $6,726,254 $20,962,510 $20,228,469
========== ========== =========== ===========
Per unit $ 0.55 $ 0.55 $ 1.65 $ 1.65
----------- ----------- ---------- ---------
$ 0.55 $ 0.55 $ 1.65 $ 1.65
=========== =========== ========== =========
</TABLE>
See notes to financial statement
2
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
------------------- ------
Statement of Cash Flows
-----------------------
Nine Months Ended
-----------------
09/30/98 09/30/97
-------- --------
(Unaudited) (Unaudited)
Sources of cash:
Receipts from purchasers of Units
Of Beneficial Interest (Note 3) $121,258,890 $ 96,780,783
Dividends received from
Journal Communications 20,962,510 20,228,469
142,221,400 117,009,252
Uses of cash:
Disbursement to sellers of
Units of Beneficial Interest (121,258,890) ( 96,780,783)
Dividends paid to holders of
Units of Beneficial Interest ( 20,962,510) ( 20,228,469)
Reduction of note payable to
Journal Communications, Inc. ( 100) 0
------------- ------------
Net increase (decrease) in cash ( 100) 0
Cash at beginning of year 100 100
------------- -----------
Cash at September 30 $ 0 $ 100
------------- -----------
See notes to financial statements
3
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
------------------ ------
Notes to Financial Statements
(Unaudited)
l. 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 officer/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.
4
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
------------------ ------
Management's Discussion and Analysis of
Financial Condition and Results of Operations
---------------------------------------------
Income is based solely on dividends from Journal Communications, Inc.
5
<PAGE>
FORM 10-Q
JOURNAL EMPLOYEES' STOCK TRUST
For Quarter Ended September 30, 1998 Commission file number 0-7832
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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-K filed
for the nine months ended September 30, 1998.
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
Date: November 9, 1998 By: /S/Steven Smith
Steven J. Smith
Trustee
Date: November 9, 1998 By: /S/Richard A. Williams
Richard A. Williams
Trustee
6
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF JOURNAL EMPLOYEES' STOCK TRUST AS OF AND
FOR THE PERIOD ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRITY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<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> 20,963<F1>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 20,963<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>
