By: E&P Staff Trenton, N.J.-based Journal Register Co. reported record earnings for the second quarter of the year, and announced that its chairman and CEO Robert M. Jelenic has been diagnosed with what it called "a treatable form of cancer."
In a statement and filing with the U.S. Securities and Exchange Commission (SEC), Journal Register did not identify the type of cancer except to say that Jelenic had been advised by his doctors that it had not spread, that it can be removed by a surgical procedure, and "that the prognosis is good." The company said Tuesday that Jelenic was expected to undergo surgery shortly.
"We have a deep and talented management team, and I am extremely confident in their capabilities," Jelenic said in a prepared statement. "Starting with (President and COO) Jean Clifton, who will oversee most of my functions while I am recovering, the company is in good hands. From my personal perspective, I see no cause for concern about my future or that of the company, and our outlook for the balance of the year is good."
Journal Register reported a net income of $15.4 million, or 37-cents per diluted share, for the second quarter, up 6% from the 35-cents per share result it earned in the same quarter last year.
Total revenues for the quarter ended June 26, 2005 were $146.7 million, up 36.3% from $107.7 million for the period in 2004.
Advertising revenue for the second quarter was $115 million, up 41.2% over 2004 second quarter revenue of $81.5 million. On a pro forma basis assuming the company owned all current properties in both quarters, advertising revenues decreased 0.9%, the company said.
Classified advertising revenues on a pro forma basis increased 1% in the second quarter of 2005 as compared to the prior year quarter, with five of the company's seven clusters reporting increases. Classified growth was led by a 7.6% increase in help-wanted advertising, it said.
Classified automotive advertising revenues remained soft, declining 10.4% on a pro forma basis compared to the 2004 second quarter.
National advertising revenue, on a pro forma basis, was down 4.8% for the quarter, it said.
Second-quarter circulation revenue was $26.8 million, up from $22.1 million reported in 2004, but down slightly on a pro forma basis.
Online revenue increased 64.4% from the 2004 period to $2.4 million.
Clifton said the company continued to generate "significant" free cash flow, which in the second quarter amounted to $24.2 million. "Free cash flow powers our de-leveraging, provides capital for stock repurchases and supports our strategic acquisition program," Clifton said in a statement.
As of July 15, 2005, the company said it had repurchased 764,800 shares of its common stock in 2005. It had 41.3 million shares of common stock outstanding. Since December 26, 2004, Journal Register said, it has reduced its long-term debt outstanding by $22.5 million, to $755.8 million.
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