Journal Communications Reports Fourth Quarter and Full Year 2007 Results

Journal Communications (NYSE:JRN) today announced results for its fourth quarter and full year ended December 30, 2007. Note that unless otherwise indicated, all comparisons are either to the fourth quarter or the full year ended December 31, 2006. Fourth quarter and full year 2006 contained an additional week. For the fourth quarter, revenue from continuing operations of $147.6 million decreased 15.7% compared to $175.2 million. Revenue in the 2006 fourth quarter reflects an aggregate $20.4 million from the estimated impact of the extra week ($10.4 million) as well as political and issue advertising ($10.0 million). Earnings from continuing operations for the 2007 fourth quarter were $10.2 million compared to $20.0 million, a decrease of 48.8%. Net earnings were $9.5 million compared to net earnings of $23.4 million, a decrease of 59.5%. Basic and diluted earnings per share from continuing operations were $0.17 and $0.16, respectively, compared to $0.29 and $0.28, respectively. Basic and diluted net earnings per share were $0.15 for both compared to $0.34 and $0.33, respectively. In the fourth quarter of 2007, the Company recorded a charge for a workforce reduction at Journal Sentinel and goodwill impairment at PrimeNet (our direct marketing company), partially offset by favorable litigation-related adjustments. The unfavorable aggregate after-tax impact of these items was $1.9 million, or $0.03 per fully-diluted share from continuing operations. Note that in addition to the extra week in 2006, the fourth quarter of 2006 included a gain on the sale of assets, a benefit plan curtailment and a reduction in litigation-related charges. The favorable aggregate after-tax impact of these items was $3.5 million, or $0.05 per fully-diluted share. For the full year ended December 30, 2007, revenue from continuing operations of $582.7 million decreased 7.3% compared to $628.8 million. Revenue for the full year 2006 reflects an aggregate $30.2 million generated from political and issue advertising ($16.5 million), the estimated impact of the extra week ($10.4 million) and the 2006 Winter Olympics ($3.3 million). Earnings from continuing operations for the full year 2007 were $43.0 million compared to $53.8 million, a decrease of 20.0%. The gain from discontinued operations was $67.1 million compared to $10.6 million. Net earnings were $110.1 million compared to net earnings of $64.4 million, an increase of 71.0%. Basic and diluted earnings per share from continuing operations were $0.66 and $0.65, respectively, compared to $0.77 and $0.75, respectively. Basic and diluted net earnings per share were $1.74 and $1.65, respectively, compared to $0.93 and $0.89, respectively. For the full year 2007, the Company recorded the fourth quarter 2007 items noted above as well as gains on the sale of assets. The unfavorable aggregate after-tax impact of these items was $0.7 million, or $0.01 per fully-diluted share. For the full year 2006, in addition to the extra week, the Company recorded a number of unusual items. The favorable aggregate after-tax impact of these items was $1.0 million, or $0.01 per fully-diluted share. "We faced a number of challenges in 2007 as the adverse effects of an off-cycle year for political and issue advertising, reduced spending by the domestic auto industry, the impact of a broad downturn in real estate and the shift of certain advertising to the internet negatively affected our operating results,” said Steven J. Smith, chairman and chief executive officer of Journal Communications. "Within this difficult environment we concentrated on expense control and efficiency throughout our operations while pursuing digital and new media initiatives. We also continued our strategic focus on local markets by divesting non-core assets, including the sale of Norlight Telecommunications and selected Journal Community Publishing clusters. "At Journal Broadcast Group, developmental revenue continued to grow, increasing 17% for the year. Local spot revenue in television was up 3% excluding the 2006 extra week, political revenue and the addition of KPSE-TV in our Palm Springs market. We are also encouraged by the growth of our television ratings in Las Vegas, Tucson and Omaha. "Journal Sentinel focused on tight cost control, underscored by a 6% workforce reduction late in 2007 and a decrease in annual expenses. Additionally, Journal Interactive revenue grew 41% during the year to $13.4 million and commercial print revenue was up 52% to $6 million. "Interactive revenues across our business remain strong, up 61% in 2007. Also, IPC, our printing services business, had a particularly successful year, posting solid growth in operating earnings. "We continue to emphasize growing advertising share in our excellent line-up of Journal markets. Our publications and broadcast programming remain highly relevant in each of our local markets and are increasingly digital, interactive and mobile. We are growing our non-traditional revenue streams in both publishing and broadcasting, adjusting our cost platforms and looking to deepen and expand our presence in our local markets.” Consolidated For the fourth quarter, revenue from continuing operations of $147.6 million decreased 15.7% compared to $175.2 million. Excluding the 2006 extra week and political and issue advertising ($0.5 million in 2007 and $10.0 million in 2006), revenue from continuing operations decreased 5.0%. Operating earnings decreased 51.1% to $18.0 million. Operating earnings margin was 12.2% compared to 21.0%. EBITDA (net earnings excluding the gain/loss from discontinued operations, net; total other expense, net; provision for income taxes; depreciation; and amortization) of $25.3 million decreased 43.7% compared to $44.9 million. For the full year, revenue from continuing operations of $582.7 million decreased 7.3% compared to $628.8 million. Excluding the 2006 extra week, political and issue advertising ($2.1 million in 2007 and $16.5 million in 2006), the net change in litigation-related advertising credits ($0.6 million in 2007 and $4.0 million in 2006) and the 2006 Winter Olympics ($3.3 million), revenue from continuing operations decreased 3.7%. Operating earnings decreased 24.7% to $78.8 million. Operating earnings margin was 13.5% compared to 16.6%. EBITDA of $108.2 million decreased 19.1% compared to $133.7 million. Publishing For the fourth quarter, publishing revenue decreased 13.9% to $66.9 million. This compares to $77.8 million. Excluding the 2006 extra week ($4.9 million), publishing revenue in the fourth quarter decreased 8.1%, largely due to continued weakness in retail and classified advertising. Operating earnings from publishing decreased 45.7% to $6.1 million, including a charge of $3.1 million related to a workforce reduction. This compares to $11.1 million in the fourth quarter of 2006. Excluding the 2006 extra week ($1.1 million) and the charge for the workforce reduction, operating earnings decreased 8.9%. For the full year, publishing revenue decreased 6.5% to $266.1 million. This compares to $284.7 million. Excluding the 2006 extra week and the litigation-related advertising credits ($0.6 million in 2007 and $4.0 million in 2006), revenue decreased 6.4%, largely due to the year-long slump in retail and classified advertising. Operating earnings from publishing decreased 11.3% to $30.7 million compared to $34.6 million. Excluding the extra week, litigation-related costs ($1.2 million of earnings increase in 2007 and $5.7 million earnings charge in 2006) and the charge for the workforce reduction, operating earnings decreased 17.0%. Broadcasting For the fourth quarter, broadcasting revenue decreased 19.2% to $56.7 million. This compares to $70.2 million. Excluding the 2006 extra week ($3.6 million) and political and issue advertising ($0.6 million in 2007 and $10.0 million in 2006), revenue decreased 0.7%. Broadcasting operating earnings of $10.3 million were down 55.2% compared to $23.1 million. For the full year, broadcasting revenue decreased 8.6% to $218.1 million. This compares to $238.5 million. Excluding the 2006 extra week, political and issue advertising ($2.1 million in 2007 and $16.5 million in 2006) and $3.3 million generated from the 2006 Winter Olympics, revenue increased 0.4%. Broadcasting operating earnings of $41.3 million were down 37.2% compared to $65.9 million. For the fourth quarter, revenue from television stations decreased 22.1% to $35.3 million compared to $45.4 million. Excluding the 2006 extra week ($2.4 million) and political and issue advertising ($0.4 million in 2007 and $9.1 million in 2006), revenue increased $1.0 million. Operating earnings from television stations decreased 64.8% to $4.9 million compared to $14.0 million, largely reflecting the declines in revenue. For the full year, revenue from television stations decreased 11.2% to $134.1 million compared to $151.0 million. Excluding the 2006 extra week, political and issue advertising ($1.3 million in 2007 and $14.6 million in 2006) and 2006 Winter Olympic advertising revenue, revenue increased $2.1 million. Operating earnings from television stations decreased 47.1% to $20.5 million compared to $38.8 million. For the fourth quarter, revenue from radio stations of $21.4 million was down 13.8% compared to $24.8 million. Excluding the 2006 extra week ($1.2 million) and political and issue advertising ($0.2 million in 2007 and $1.0 million in 2006), revenue decreased $1.4 million. Operating earnings from radio stations of $5.4 million decreased 40.6% compared to $9.1 million. Excluding the 2006 gain on the sale of KBBX-FM ($2.5 million), operating earnings decreased 18.3%. For the full year, revenue from radio stations of $84.1 million was down 3.9% compared to $87.5 million. On a same-station basis (excluding revenue generated by KBBX-FM, which was sold in September 2006 and KOMJ-AM, which was sold in early 2007), radio revenue decreased 2.5%. Excluding the 2006 extra week and political and issue advertising ($0.9 million in 2007 and $1.9 million in 2006), revenue decreased $1.2 million. Operating earnings from radio stations of $20.8 million decreased 23.1% compared to $27.1 million. Excluding the gain on the sale of KBBX-FM, operating earnings decreased 15.3%. Printing Services For the fourth quarter, revenue from printing services decreased 4.6% to $17.6 million from $18.5 million. Excluding the extra week ($1.4 million), revenue increased 3.1%. Operating earnings from printing services increased 30.5% to $1.5 million compared to $1.2 million, due to production efficiencies and a change in business mix. For the full year, revenue from printing services increased 3.6% to $69.4 million from $67.0 million, largely due to increased business from existing customers and new accounts. Excluding the extra week, revenue increased 5.8%. Operating earnings from printing services increased 128.2% to $5.9 million compared to $2.6 million. Other For the fourth quarter, revenue for "Other” of $6.3 million decreased 28.0% compared to revenue of $8.7 million due to softness in the mailing services part of our direct marketing business. "Other” operating earnings were $57,000. This compares to $1.4 million, which included the gain from the sale of a garage property and a benefit plan curtailment gain. For the full year, revenue for "Other” of $29.1 million decreased 24.6% compared to revenue of $38.5 million. "Other” operating earnings were $0.8 million. This compares to $1.6 million, which included the above mentioned items. Discontinued Operations The operating results and gain/loss on sales of our former New England, Ohio and Louisiana community publishing and printing clusters (which were sold during the summer of 2007), Norlight Telecommunications, Inc. (which was sold in February 2007) and NorthStar Print Group (which was sold in January 2005) are classified as discontinued operations, net of tax. For the fourth quarter 2007, the loss from discontinued operations was $0.8 million compared to a gain of $3.4 million. Included within discontinued operations in fourth quarter 2007 is a reserve of $0.6 million for potential environmental charges related to NorthStar. For the full year 2007, the gain from discontinued operations was $67.1 million. This compares to $10.6 million, which included a $1.0 million loss from a purchase price adjustment related to the January 2005 sale of NorthStar Print Group. Included within discontinued operations in 2007 is a $62.0 million gain on the sale of Norlight. Non-Operating Items For the fourth quarter, other expense, which primarily consists of interest expense, decreased $1.8 million to $2.3 million. For the full year, other expense decreased $6.4 million to $9.1 million. The decrease is attributable in large part to a decrease in debt outstanding, which was reduced with the proceeds from the sale of Norlight and several community newspaper and shopper clusters, partially offset by expenses related to the repurchases of the Company’s common stock during the year. Stock Repurchase Program During the fourth quarter 2007, the Company repurchased 2,581,100 of its class A shares. Through December 30, 2007, the Company had repurchased a total of 15,872,400 shares of its common stock, of which 12,672,400 were class A shares. Through February 8, 2008, the Company had repurchased a total of 17,324,200 shares of its common stock. First Quarter 2008 Outlook For the first quarter of 2008, Journal Communications currently anticipates that its publishing revenues will be down compared to the prior year, reflecting continued challenges in classified advertising, partially offset by continued strength in online, commercial printing and commercial distribution. Both radio and television revenues are expected to be down slightly. Webcast of Conference Call A live webcast of the fourth quarter conference call will be accessible through www.journalcommunications.com/investors beginning at 10:00 a.m. CT this morning. An archive of the webcast will be available on this site today through February 27. To access the call, dial (888) 680-0879 (domestic) or (617) 213-4856 (international) at least 10 minutes prior to the scheduled 10:00 a.m. CT start. The access code for the conference call is 71559443. Replays of the conference call will be available February 13 through February 15. To hear the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international) at least one hour after the completion of the call. The access code for the replay is 93806606. Pre-registration for the conference call is now available on the Journal Communications’ website, www.journalcommunications.com/investors. Forward-looking Statements This press release contains certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K and on page 14 of our most recent Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission. About Journal Communications Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 49 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and 11 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets include 96 online enterprises that are associated with our daily and community newspapers and television and radio stations. We also provide a wide range of commercial printing services – including printing of publications, professional journals and documentation material – and operate a direct marketing services business. Tables Follow   Journal Communications, Inc. Consolidated Statements of Earnings (unaudited) (dollars in thousands, except for shares and per-share amounts)               Fourth Quarter (A) Four Quarters (B) 2007 2006 % Change 2007 2006 % Change   Continuing Operations: Revenue: Publishing $ 66,931 $ 77,765 (13.9 ) $ 266,099 $ 284,730 (6.5 ) Broadcasting 56,739 70,189 (19.2 ) 218,118 238,536 (8.6 ) Printing services 17,647 18,504 (4.6 ) 69,377 66,956 3.6 Other 6,300   8,747   (28.0 ) 29,060   38,541   (24.6 ) Total revenue 147,617 175,205 (15.7 ) 582,654 628,763 (7.3 )   Operating costs and expenses: Publishing 36,798 40,874 (10.0 ) 143,321 149,898 (4.4 ) Broadcasting 25,332 27,424 (7.6 ) 96,924 95,745 1.2 Printing services 13,982 15,424 (9.3 ) 55,313 56,129 (1.5 ) Other 5,428   7,309   (25.7 ) 24,659   32,893   (25.0 ) Total operating costs and expenses 81,540 91,031 (10.4 ) 320,217 334,665 (4.3 )   Selling and administrative expenses 48,126   47,429   1.5 183,649   189,498   (3.1 ) Total operating costs and expenses and selling and administrative expenses 129,666   138,460   (6.4 ) 503,866   524,163   (3.9 )   Operating earnings 17,951 36,745 (51.1 ) 78,788 104,600 (24.7 )   Other income and (expense): Interest income 10 8 36 37 Interest expense (2,261 ) (4,056 ) (9,180 ) (15,607 ) Total other income and (expense) (2,251 ) (4,048 ) (44.4 ) (9,144 ) (15,570 ) (41.3 )   Earnings from continuing operations before income taxes 15,700 32,697 (52.0 ) 69,644 89,030 (21.8 )   Provision for income taxes 5,459   12,711   (57.1 ) 26,626   35,247   (24.5 )   Earnings from continuing operations 10,241 19,986 (48.8 ) 43,018 53,783 (20.0 )   Gain (loss) from discontinued operations, net of tax (772 ) 3,372   N/A 67,060   10,590   533.2   Net earnings $ 9,469   $ 23,358   (59.5 ) $ 110,078   $ 64,373   71.0   Weighted average number of shares: Basic 58,138,113 66,780,875 62,275,709 67,475,857 Diluted 62,652,022 71,281,044 66,808,796 71,984,963   Earnings per share: Basic: Continuing operations $ 0.17 $ 0.29 $ 0.66 $ 0.77 Discontinued operations (0.02 ) 0.05   1.08   0.16   Net earnings $ 0.15   $ 0.34   $ 1.74   $ 0.93     Diluted: Continuing operations $ 0.16 $ 0.28 $ 0.65 $ 0.75 Discontinued operations (0.01 ) 0.05   1.00   0.14   Net earnings $ 0.15   $ 0.33   $ 1.65   $ 0.89       (A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13 weeks). 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14 weeks). (B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52 weeks). 2006 four quarters: December 26, 2005 to December 31, 2006 (53 weeks).   Journal Communications, Inc. Segment Information (unaudited) (dollars in thousands)             Fourth Quarter (A) Four Quarters (B) 2007 2006 % Change 2007 2006 % Change Revenue Publishing $ 66,931 $ 77,765 (13.9 ) $ 266,099 $ 284,730 (6.5 ) Broadcasting 56,739 70,189 (19.2 ) 218,118 238,536 (8.6 ) Printing services 17,647 18,504 (4.6 ) 69,377 66,956 3.6 Other 6,300 8,747 (28.0 ) 29,060 38,541 (24.6 ) $ 147,617 $ 175,205 (15.7 ) $ 582,654 $ 628,763 (7.3 )   Operating earnings Publishing $ 6,050 $ 11,136 (45.7 ) $ 30,661 $ 34,551 (11.3 ) Broadcasting 10,334 23,090 (55.2 ) 41,349 65,887 (37.2 ) Printing services 1,510 1,157 30.5 5,932 2,600 128.2 Other 57 1,362 (95.8 ) 846 1,562 (45.8 ) $ 17,951 $ 36,745 (51.1 ) $ 78,788 $ 104,600 (24.7 )   Depreciation and amortization Publishing $ 3,253 $ 3,828 (15.0 ) $ 13,294 $ 13,258 0.3 Broadcasting 3,306 3,605 (8.3 ) 12,930 12,970 (0.3 ) Printing services 547 544 0.6 2,109 1,985 6.2 Other 250 210 19.0 1,035 865 19.7 $ 7,356 $ 8,187 (10.2 ) $ 29,368 $ 29,078 1.0     (A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13 weeks). 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14 weeks). (B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52 weeks). 2006 four quarters: December 26, 2005 to December 31, 2006 (53 weeks).   Journal Communications, Inc. Publishing Segment Information (unaudited) (dollars in thousands)                     Publishing revenue by category:   Fourth Quarter of 2007 (A) Fourth Quarter of 2006 (B)   Community Community Daily Newspapers Daily Newspapers % Change % Change % Change Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total   Advertising revenue: Retail $ 25,211 $ 7,327 $ 32,538 $ 29,227 $ 8,436 $ 37,663 (13.7 ) (13.1 ) (13.6 ) Classified 12,112 1,266 13,378 14,758 1,653 16,411 (17.9 ) (23.4 ) (18.5 ) National 2,461 -- 2,461 3,240 -- 3,240 (24.0 ) N/A (24.0 ) Direct Marketing 1,475 -- 1,475 1,745 -- 1,745 (15.5 ) N/A (15.5 ) Other -- 68 68 -- 131 131 N/A (48.1 ) (48.1 ) Total advertising revenue 41,259 8,661 49,920 48,970 10,220 59,190 (15.7 ) (15.3 ) (15.7 ) Circulation revenue 12,759 262 13,021 13,780 593 14,373 (7.4 ) (55.8 ) (9.4 ) Other revenue 3,242 748 3,990 3,283 919 4,202 (1.2 ) (18.6 ) (5.0 ) Total revenue $ 57,260 $ 9,671 $ 66,931 $ 66,033 $ 11,732 $ 77,765 (13.3 ) (17.6 ) (13.9 )   Four Quarters of 2007 (C) Four Quarters of 2006 (D)   Community Community Daily Newspapers Daily Newspapers % Change % Change % Change Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total   Advertising revenue: Retail $ 90,235 $ 29,318 $ 119,553 $ 90,998 $ 34,499 $ 125,497 (0.8 ) (15.0 ) (4.7 ) Classified 58,152 5,994 64,146 64,674 7,854 72,528 (10.1 ) (23.7 ) (11.6 ) National 9,227 -- 9,227 11,018 -- 11,018 (16.3 ) N/A (16.3 ) Direct Marketing 4,434 -- 4,434 5,873 -- 5,873 (24.5 ) N/A (24.5 ) Other -- 386 386 -- 657 657 N/A (41.2 ) (41.2 ) Total advertising revenue 162,048 35,698 197,746 172,563 43,010 215,573 (6.1 ) (17.0 ) (8.3 ) Circulation revenue 51,174 1,082 52,256 52,652 2,268 54,920 (2.8 ) (52.3 ) (4.9 ) Other revenue 12,234 3,863 16,097 10,923 3,314 14,237 12.0 16.6 13.1 Total revenue $ 225,456 $ 40,643 $ 266,099 $ 236,138 $ 48,592 $ 284,730 (4.5 ) (16.4 ) (6.5 )     (A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13 weeks). (B) 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14 weeks). (C) 2007 four quarters: January 1, 2007 to December 30, 2007 (52 weeks). (D) 2006 four quarters: December 26, 2005 to December 31, 2006 (53 weeks).     NOTE: Publishing segment information is provided to facilitate comparison of our publishing segment results with those of other publishing companies and is not representative of the overall business of Journal Communications or its operating results.         Daily newspaper's core newspaper advertising linage by category:   Fourth Quarter (A) 2007 2006 % Change Advertising linage (inches):   Full run Retail 139,073 179,793 (22.6 ) Classified 115,358 150,744 (23.5 ) National 13,650 16,443 (17.0 ) Total full run 268,081 346,980 (22.7 ) Part run 9,558 26,481 (63.9 ) Total advertising linage 277,639 373,461 (25.7 )   Preprint pieces (in thousands) 256,707 293,909 (12.7 )   Total pages and revenue per page of our community newspapers and shoppers:   Total pages Community newspapers 11,164 17,238 (35.2 ) Shoppers and specialty products 12,008 13,124 (8.5 ) Total pages 23,172 30,362 (23.7 )   Revenue per page $ 329.45 $ 298.01 10.5     Daily newspaper's core newspaper advertising linage by category:   Four Quarters (B) 2007 2006 % Change Advertising linage (inches):   Full run Retail 591,649 670,719 (11.8 ) Classified 539,443 653,601 (17.5 ) National 47,451 59,049 (19.6 ) Total full run 1,178,543 1,383,369 (14.8 ) Part run 39,199 111,420 (64.8 ) Total advertising linage 1,217,742 1,494,789 (18.5 )   Preprint pieces (in thousands) 872,784 926,175 (5.8 )   Total pages and revenue per page of our community newspapers and shoppers:   Full pages of advertising: Community newspapers 47,540 70,724 (32.8 ) Shoppers and specialty products 49,079 57,513 (14.7 ) Total full pages of advertising 96,619 128,237 (24.7 )   Revenue per page $ 329.47 $ 298.52 10.4     (A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13 weeks). 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14 weeks). (B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52 weeks). 2006 four quarters: December 26, 2005 to December 31, 2006 (53 weeks).       NOTE: Publishing segment information is provided to facilitate comparison of our publishing segment results with those of other publishing companies and is not representative of the overall business of Journal Communications or its operating results. All data is subject to later adjustment.   Journal Communications, Inc. Reconciliation of consolidated net earnings to consolidated EBITDA (unaudited) (dollars in thousands)         Fourth Quarter (A) Four Quarters (B) 2007 2006 2007 2006   Net earnings $ 9,469 $ 23,358 $ 110,078 $ 64,373 (Gain)/loss from discontinued operations, net 772 (3,372 ) (67,060 ) (10,590 ) Provision for income taxes 5,459 12,711 26,626 35,247 Total other expense, net 2,251 4,048 9,144 15,570 Depreciation 6,843 7,626 27,407 27,080 Amortization 513 561   1,961   1,998   EBITDA $ 25,307 $ 44,932   $ 108,156   $ 133,678       (A) 2007 fourth quarter: October 1, 2007 to December 30, 2007 (13 weeks). 2006 fourth quarter: September 25, 2006 to December 31, 2006 (14 weeks). (B) 2007 four quarters: January 1, 2007 to December 30, 2007 (52 weeks). 2006 four quarters: December 26, 2005 to December 31, 2006 (53 weeks).     We define EBITDA as net earnings excluding gain/loss from discontinued operations, net, provision for income taxes, total other expense (which is entirely comprised of interest income and expense), depreciation and amortization. Our management uses EBITDA, among other things, to evaluate our operating performance, and to value prospective acquisitions. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States. EBITDA should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA reported by other companies.   Journal Communications, Inc. Consolidated Condensed Balance Sheets (dollars in thousands)     December 30, 2007 December 31, (unaudited) 2006 ASSETS Current assets: Cash and cash equivalents $ 6,256 $ 7,923 Receivables, net 86,197 87,401 Inventories, net 7,258 6,752 Prepaid expenses 13,066 11,281 Deferred income taxes 6,821 11,017 Assets of discontinued operations - 118,584 Total current assets 119,598 242,958 Property and equipment, net 223,800 218,103 Goodwill 232,538 231,635 Broadcast licenses 223,529 196,659 Other intangible assets, net 25,702 26,826 Prepaid pension costs 15,298 - Other assets 16,502 39,077 Total assets $ 856,967 $ 955,258   LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 30,026 $ 31,108 Accrued compensation 16,871 18,730 Accrued employee benefits 10,390 10,456 Deferred revenue 14,936 18,505 Accrued income taxes 219 4,048 Other current liabilities 7,757 18,368 Liabilities of discontinued operations - 20,856 Current portion of long-term liabilities 4,508 4,770 Total current liabilities 84,707 126,841 Accrued employee benefits 25,157 33,749 Long-term notes payable to banks 178,885 235,000 Deferred income taxes 67,664 62,089 Other long-term liabilities 12,992 16,687 Shareholders' equity 487,562 480,892 Total liabilities and shareholders' equity $ 856,967 $ 955,258