By: E&P Stafff Trenton, N.J.-based Journal Register Company reported Tuesday that its fourth-quarter 2005 earnings dropped 51% from the same period a year ago to $12.5 million or $0.31 per diluted share. In the fourth quarter of 2004 earnings were $25.4 million, or $0.60 per share.
The company noted that its third and fourth quarter in 2004 benefited from the reversal of some tax accruals, and that a charge had been recorded in the third quarter of 2004 related to the extinguishment of a refinanced credit facility. Without those special items, the fourth quarter 2004 earnings would have been $15.1 million, or $0.36 per share.
For the year ended December 25, 2005, Journal Register reported earnings of $46.9 million or $1.12 per share compared to $116.5 million, or $2.74 per share in 2004. Without the tax benefit and charge, the company said, 2004 earnings would have been $52.3 million or $1.23 per share.
Total revenues for the fourth quarter were $140.9 million, down 2.7% compared to the year-ago quarter.
Journal Register said its total revenues for the full year in 2005 were a record $556.6 million, up 18.8% from 2004.
Advertising revenues for the fourth quarter of 2005 were $110.3 million, compared to $113.7 million for the year-ago period, a decrease of 3.0 percent.
For the full year, advertising revenues were up 20.3% to $435.1 million. On a pro forma basis -- assuming the company owned the same properties in both years -- ad revenues decreased 13.2% for the fourth quarter, and 1.1% for the year.
Journal Register said retail advertising revenues, on a pro forma basis, declined 3.1% in the fourth quarter, the result of softness in its Ohio and Michigan newspaper clusters.
Same-paper classified advertising revenues were down 1.9% for the quarter, which the chain said was the result of softness in automotive revenues, which declined 17.7%. Real estate classified revenues jumped 7.0% in the quarter, and help-wanted increased 1.1%.
National advertising revenues decreased 12.8% for the quarter on tough comparisons with 2004, when Journal Register reported a 27.0% pro forma increase over the previous year's quarter.
"Despite the soft overall advertising revenue environment, we continue to generate substantial free cash flow, which was $65.4 million, or $1.57 per diluted share for the year ended December 25, 2005," Chairman and CEO Robert M. Jelenic said in a statement. "Our results were driven by strength in our online revenues as well as strong classified employment and real estate advertising revenue. Also, our employees throughout the Company did an exceptional job of controlling costs allowing the Company to maintain a strong EBITDA [earnings before interest, taxes, depreciation and amortization] margin."
Journal Register's margins were 26% for the quarter and 24% for the full year.
Jelenic said online revenues grew in excess of 50% in 2005, adding that the acquisition in December of JobsIntheUS.com "will accelerate our online growth in 2006."
Looking ahead, Jelenic said, "In 2006, we expect the company's overall advertising revenue growth to be driven by revenues from new product launches, expansion of online revenues, as well as continued strength in real estate and employment advertising revenues."
Comments
No comments on this item Please log in to comment by clicking here