Journal Q3 Revenues Fall, Company Takes Non-Cash Charge
October 23, 2008 at 5:12 AM (PT)
JOURNAL COMMUNICATIONS third-quarter radio revenue fell 3.3% year-to-year to $21.7 million. Operating earnings less a $17.7 million one-time pre-tax impairment charge from 8.5% to $5.8 million. SEPTEMBER revenues for the radio division fell 3.5% to $8.65 million.
The company's overall revenue fell 5.6% to $136.3 million, resulting in a net loss of $17.1 million (35 cents/share), down from net earnings of $13.1 million in third quarter 2007. The company took a $23.5 million after-tax non-cash impairment charge for four television and 13 radio broadcast licenses and a $2.4 million after-tax charge for our workforce reductions in the quarter.
"A continuing tough economy resulting in a difficult advertising environment, moderated somewhat by political and Olympic spending, impacted our revenues once again in the third quarter," said Chairman/CEO STEVEN J. SMITH. "Television revenue grew 3% in the quarter while radio revenue was off by 3%. Publishing revenue was down 8.8%. Total company interactive revenue was up almost 16% in the quarter, continuing its growth trajectory. Deteriorating macro-economic factors and a further decline in our stock price caused us to determine it was necessary to perform interim impairment testing of goodwill and intangible assets. The $38.8 million pre-tax broadcast license impairment charge that we announced today is a non-cash charge."