Annual Reports

 
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  • 10-Q (Apr 30, 2014)
  • 10-Q (Nov 1, 2013)
  • 10-Q (Aug 1, 2013)
  • 10-Q (May 3, 2013)
  • 10-Q (Oct 31, 2012)
  • 10-Q (Aug 3, 2012)

 
8-K

 
Other

Journal Communications 10-Q 2011

Documents found in this filing:

  1. 10-Q
  2. Ex-31.1
  3. Ex-31.2
  4. Ex-32
  5. Ex-32
form10q.htm


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

x          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:  June 26, 2011
or

 
For the transition period from   to  
Commission File Number: 1-31805
 
JOURNAL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
 
Wisconsin     20-0020198
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)
 
333 W. State Street, Milwaukee, Wisconsin   53203
(Address of principal executive offices)   (Zip Code)
(414) 224-2000
Registrant's telephone number, including area code
 
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 o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
      
Large Accelerated Filer o Accelerated Filer x Non-accelerated Filer o Smaller reporting company o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o  No x

Number of shares outstanding of each of the issuer’s classes of common stock as of July 29, 2011 (excluding 8,676,705 shares of class B common stock held by our subsidiary, The Journal Company):
 
Class   Outstanding at July 29, 2011
Class A Common Stock   44,784,110
Class B Common Stock   7,328,054.282
Class C Common Stock   3,264,000
 


 
 

 
                                                    
 JOURNAL COMMUNICATIONS, INC.
 
    Page No.  
Part I.
Financial Information
 
       
 
Item 1.
Financial Statements
 
       
   
2
       
   
3
       
   
4
       
   
5
       
   
6
       
   
7
       
 
Item 2.
22
       
 
Item 3.
37
       
 
Item 4.
37
       
Part II.
Other Information
 
       
 
Item 1.
37
       
 
Item 1A.
38
       
 
Item 2.
38
       
 
Item 3.
38
       
 
Item 4.
38
       
 
Item 5.
38
       
 
Item 6.
39
 
 
 

 
PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

Unaudited Consolidated Condensed Balance Sheets
(in thousands, except share and per share amounts)

   
June 26, 2011
   
December 26, 2010
 
Assets
           
Current assets:
           
Cash and cash equivalents
  $ 2,395     $ 2,056  
Investments of variable interest entity
    500       500  
Receivables, net
    50,697       55,309  
Inventories, net
    1,417       1,035  
Prepaid expenses and other current assets
    5,278       3,961  
Syndicated programs
    3,764       7,361  
Deferred income taxes
    4,046       4,809  
Total Current Assets
    68,097       75,031  
                 
Property and equipment, at cost, less accumulated depreciation of $231,742 and $228,820
    174,014       179,725  
Syndicated programs
    3,407       3,083  
Goodwill
    8,916       9,098  
Broadcast licenses
    82,426       82,426  
Other intangible assets, net
    22,204       22,988  
Deferred income taxes
    48,945       54,077  
Other assets
    4,845       5,342  
Total Assets
  $ 412,854     $ 431,770  
                 
Liabilities And Equity
               
Current liabilities:
               
Accounts payable
  $ 20,360     $ 22,895  
Accrued compensation
    10,403       13,703  
Accrued employee benefits
    5,575       5,087  
Deferred revenue
    14,732       13,899  
Syndicated programs
    4,544       8,685  
Accrued income taxes
    651       7,332  
Other current liabilities
    7,207       6,493  
Current portion of long-term liabilities
    530       561  
Total Current Liabilities
    64,002       78,655  
                 
Accrued employee benefits
    56,923       58,534  
Syndicated programs
    5,078       5,114  
Long-term notes payable to banks
    60,965       74,570  
Other long-term liabilities
    6,947       5,970  
Equity:
               
Preferred stock, $0.01 par – authorized 10,000,000 shares; no shares outstanding at June 26, 2011 and December 26, 2010
    --          
Common stock, $0.01 par:
               
Class C – authorized 10,000,000 shares; issued and outstanding: 3,264,000 shares at June 26, 2011 and December 26, 2010
    33       33  
Class B – authorized 120,000,000 shares; issued and outstanding (excluding treasury stock): 7,345,647.282 shares at June 26, 2011 and 8,594,541.684 shares at December 26, 2010
    153       165  
Class A – authorized 170,000,000 shares; issued and outstanding: 44,716,208 shares at June 26, 2011 and 43,196,321 shares at December 26, 2010
    447       432  
Additional paid-in capital
    261,402       260,376  
Accumulated other comprehensive loss
    (31,901 )     (32,295 )
Retained earnings
    96,356       87,767  
Treasury stock, at cost (8,676,705 class B shares)
    (108,715 )     (108,715 )
Total Journal Communications, Inc. shareholders’ equity
    217,775       207,763  
Noncontrolling interest
    1,164       1,164  
Total Equity
    218,939       208,927  
Total Liabilities And Equity
  $ 412,854     $ 431,770  

See accompanying notes to unaudited consolidated condensed financial statements.
 
 
2

 
Unaudited Consolidated Condensed Statements of Operations
 (in thousands, except per share amounts)
 
   
Second Quarter Ended
   
Two Quarters Ended
 
   
June 26, 2011
   
June 27, 2010
   
June 26, 2011
   
June 27, 2010
 
                         
Revenue:
                       
Publishing
  $ 44,119     $ 47,386     $ 85,919     $ 91,938  
Broadcasting
    46,083       47,012       88,192       89,617  
Corporate eliminations
    (100 )     (79 )     (148 )     (299 )
Total revenue
    90,102       94,319       173,963       181,256  
                                 
Operating costs and expenses:
                               
Publishing
    27,273       28,734       54,918       57,868  
Broadcasting
    22,069       22,300       44,004       43,896  
Corporate eliminations
    (100 )     (79 )     (148 )     (299 )
Total operating costs and expenses
    49,242       50,955       98,774       101,465  
Selling and administrative expenses
    29,369       29,589       57,690       56,656  
Total operating costs and expenses and selling and administrative expenses
    78,611       80,544       156,464       158,121  
                                 
Operating earnings
    11,491       13,775       17,499       23,135  
                                 
Other income and (expense)
                               
Interest income
    20       25       38       33  
Interest expense
    (928 )     (544 )     (2,008 )     (1,106 )
Total other income and (expense)
    (908 )     (519 )     (1,970 )     (1,073 )
                                 
Earnings from continuing operations before income taxes
    10,583       13,256       15,529       22,062  
                                 
Provision for income taxes
    4,442       5,332       6,354       8,878  
                                 
Earnings from continuing operations
    6,141       7,924       9,175       13,184  
                                 
Earnings from discontinued operations, net of $0, $91, $221 and $87 applicable income tax provision , respectively
    --       176       341       219  
                                 
Net earnings
  $ 6,141     $ 8,100     $ 9,516     $ 13,403  
                                 
Earnings per share:
                               
Basic – Class A and B common stock:
                               
Continuing operations
  $ 0.10     $ 0.14     $ 0.15     $ 0.22  
Discontinued operations
    --       --       0.01       0.01  
Net earnings
  $ 0.10     $ 0.14     $ 0.16     $ 0.23  
                                 
Diluted – Class A and B common stock:
                               
Continuing operations
  $ 0.10     $ 0.14     $ 0.15     $ 0.22  
Discontinued operations
    --       --       0.01       0.01  
Net earnings
  $ 0.10     $ 0.14     $ 0.16     $ 0.23  
                                 
Basic and diluted – Class C common stock:
                               
Continuing operations
  $ 0.24     $ 0.28     $ 0.43     $ 0.51  
Discontinued operations
    --       --       0.01       --  
Net earnings
  $ 0.24     $ 0.28     $ 0.44     $ 0.51  
 
See accompanying notes to unaudited consolidated condensed financial statements.

 
3

 
Journal Communications, Inc.
 
 
For the Two Quarters Ended June 26, 2011
 
(in thousands, except per share amounts)
 
   
   
Preferred
   
Common Stock
   
Additional
Paid-in-
   
Accumulated
Other
Comprehensive
   
Retained
    Noncontrolling    
Treasury
Stock,
       
   
Stock
   
Class C
   
Class B
   
Class A
   
Capital
   
Loss
   
Earnings
   
Interests
   
at cost
   
Total
 
                                                             
Balance at December 26, 2010
  $ -     $ 33     $ 165     $ 432     $ 260,376     $ (32,295 )   $ 87,767     $ 1,164     $ (108,715 )   $ 208,927  
                                                                                 
Net earnings
                                                    3,375                       3,375  
                                                                                 
Change in pension and postretirement (net of deferred tax of $127)
                                            197                               197  
Class C dividends declared ($0.142 per share)
                                                    (464 )                     (464 )
Issuance of shares:
                                                                               
Conversion of class B to class A
                    (11 )     11                                               -  
Stock grants
                    3               17                                       20  
Employee stock purchase plan
                    -               181                                       181  
Shares withheld from employees for tax withholding
                    (1 )             (505 )                                     (506 )
Stock-based compensation
                                    261               1                       262  
Income tax benefits from vesting of non-vested restricted stock
                                    368                                       368  
                                                                                 
Balance at March 27, 2011
    -       33       156       443       260,698       (32,098 )     90,679       1,164       (108,715 )     212,360  
                                                                                 
Net earnings
                                                    6,141                       6,141  
Change in pension and postretirement (net of deferred tax of $128)
                                            197                               197  
Class C dividends declared ($0.142 per share)
                                                    (464 )                     (464 )
Issuance of shares:
                                                                               
Conversion of class B to class A
                    (4 )     4                                               -  
Stock grants
                    1               432                                       433  
Shares withheld from employees for tax withholding
                                    (13 )                                     (13 )
Stock-based compensation
                                    285                                       285  
                                                                                 
Balance at June 26, 2011
  $ -     $ 33     $ 153     $ 447     $ 261,402     $ (31,901 )   $ 96,356     $ 1,164     $ (108,715 )   $ 218,939  
 
See accompanying notes to unaudited consolidated condensed financial statements.
 
 
4

 
Journal Communications, Inc.
 
 
Two Quarters Ended June 27, 2010
 
(in thousands, except per share amounts)
 
   
    Preferred    
Common Stock
   
Additional
Paid-in-
   
Accumulated
Other
Comprehensive
    Retained     Noncontrolling    
Treasury
Stock,
       
   
Stock
   
Class C
   
Class B
   
Class A
   
Capital
   
Loss
   
Earnings
   
Interests
   
at cost
   
Total
 
                                                             
Balance at December 27, 2009
  $ -     $ 33     $ 174     $ 418     $ 258,413     $ (34,487 )   $ 55,239     $ -     $ (108,715 )   $ 171,075  
                                                                                 
Net earnings
                                                    5,303                       5,303  
Change in pension and postretirement (net of deferred tax of $280)
                                            441                               441  
Class C dividends declared ($0.142 per share)
                                                    (464 )                     (464 )
Issuance of shares:
                                                                               
Conversion of class B to class A
                    (4 )     4                                               -  
Stock grants
                    2               30                                       32  
Employee stock purchase plan
                    1               162                                       163  
Shares withheld from employees for tax withholding
                    (1 )             (267 )                                     (268 )
Stock-based compensation
                                    294                                       294  
Consolidation of variable interest entity
                                                            1,164               1,164  
Income tax benefits from vesting of non-vested restricted stock
                                    95                                       95  
                                                                                 
Balance at March 28, 2010
    -       33       172       422       258,727       (34,046 )     60,078       1,164       (108,715 )     177,835  
                                                                                 
Net earnings
                                                    8,100                       8,100  
Change in pension and postretirement (net of deferred tax of $278)
                                            442                               442  
Class C dividends declared ($0.142 per share)
                                                    (464 )                     (464 )
Issuance of shares:
                                                                               
Conversion of class B to class A
                    (7 )     7                                               -  
Stock grants
                    1               493                                       494  
Stock-based compensation
                                    302                                       302  
                                                                                 
Balance at June 27, 2010
  $ -     $ 33     $ 166     $ 429     $ 259,522     $ (33,604 )   $ 67,714     $ 1,164     $ (108,715 )   $ 186,709  
 
See accompanying notes to unaudited consolidated condensed financial statements.
 
 
5

 
Unaudited Consolidated Condensed Statements of Cash Flows
(in thousands)

   
Two Quarters Ended
 
   
June 26, 2011
   
June 27, 2010
 
             
Cash flow from operating activities:
           
Net earnings
  $ 9,516     $ 13,403  
Less earnings from discontinued operations
    341       219  
Earnings from continuing operations
    9,175       13,184  
Adjustments for non-cash items:
               
Depreciation
    10,788       11,469  
Amortization
    784       979  
Provision for doubtful accounts
    411       350  
Deferred income taxes
    5,962       5,152  
Non-cash stock-based compensation
    1,000       1,082  
Net (gain) loss from disposal of assets
    (238 )     90  
Net changes in operating assets and liabilities, excluding effect of sales and acquisitions:
               
Receivables
    4,121       4,599  
Inventories
    (382 )     19  
Accounts payable
    (2,535 )     439  
Other assets and liabilities
    (11,577 )     (2,172 )
Net Cash Provided By Operating Activities
    17,509       35,191  
                 
Cash flow from investing activities:
               
Capital expenditures for property and equipment
    (5,405 )     (5,164 )
Proceeds from sales of assets and insurance proceeds
    73       3  
Insurance proceeds from tower collapse and replacement
    --       728  
Proceeds from sale of business
    745       17  
Net Cash Used For Investing Activities
    (4,587 )     (4,416 )
                 
Cash flow from financing activities:
               
Proceeds from long-term notes payable to banks
    53,396       43,645  
Payments on long-term notes payable to banks
    (67,001 )     (77,205 )
Principal payments under capital lease obligations
    (171 )     (187 )
Proceeds from issuance of common stock
    163       146  
Income tax benefits from vesting of non-vested restricted stock
    430       95  
Net Cash Used For Financing Activties
    (13,183 )     (33,506 )
                 
Cash from discontinued operations:
               
Net operating activities of discontinued operations
    (223 )     2,334  
Net investing activities of discontinued operations
    823       (288 )
Net Cash Provided by Discontinued Operations
    600       2,046  
                 
Net Increase (Decrease) In Cash And Cash Equivalents
    339       (685 )
                 
Cash and cash equivalents:
               
Beginning of year
    2,056       3,369  
At June 26, 2011 and June 27, 2010
  $ 2,395     $ 2,684  
 
See accompanying notes to unaudited consolidated condensed financial statements.
 
 
6

 
JOURNAL COMMUNICATIONS, INC.
(in thousands, except per share amounts)

BASIS OF PRESENTATION

The accompanying unaudited consolidated condensed financial statements include the accounts of Journal Communications, Inc., its wholly owned subsidiaries and a variable interest entity (VIE) for which we are the primary beneficiary in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect normal and recurring adjustments, which we believe to be necessary for a fair presentation.  As permitted by these regulations, these statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles for annual financial statements.  However, we believe that the disclosures are adequate to make the information presented not misleading.  The gain on the sale of NorthStar Print Group Inc.’s (NorthStar) real estate holdings the operations of PrimeNet Marketing Services (PrimeNet), our former direct marketing services business, and IPC Print Services, Inc. (IPC), our former printing services business, have been reflected as discontinued operations in our consolidated condensed statement of operations.   The balance sheet as of December 26, 2010 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  The operating results for the second quarter and two quarters ended June 26, 2011 are not necessarily indicative of the operating results that may be expected for the fiscal year ending December 25, 2011.  You should read these unaudited consolidated condensed financial statements in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 26, 2010.

ACCOUNTING PERIODS

We report on a 52-53 week fiscal year ending on the last Sunday of December in each year.  In addition, we have four quarterly reporting periods, each consisting of 13 weeks and ending on a Sunday, provided that once every six years, the fourth quarterly reporting period will be 14 weeks.
 
NEW ACCOUNTING STANDARDS

In June 2011, the Financial Accounting Standards Board (FASB) issued amended guidance for comprehensive income. The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted.  We will adopt this guidance in the first quarter of 2012.  We do not expect the adoption of these disclosures to have a material impact on our consolidated financial statements.

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS).  The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS. The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  We will adopt this guidance in the first quarter of 2012.  We do not expect the adoption of these disclosures to have a material impact on our consolidated financial statements.

In December 2010, the FASB issued amended guidance for goodwill.  The guidance applies to entities that have recognized goodwill and have one or more reporting units whose carrying amount for purposes of performing step one of the goodwill impairment test is zero or negative.  The guidance modifies step one so that for those reporting units, an entity is required to perform step two of the goodwill impairment test if it is more likely than not that a goodwill impairment exists.  In determining whether it is more likely than not that goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist.  The qualitative factors are consistent with existing guidance, which requires that goodwill of a reporting unit be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010, with no early adoption permitted. We adopted this guidance in the first quarter of 2011.  There was no impact on our consolidated financial statements.
 
 
7

 
(in thousands, except per share amounts)

NEW ACCOUNTING STANDARDS continued

In December 2010, the FASB issued amended guidance for business combinations.  The guidance requires a public entity that presents comparative financial statements to disclose revenue and earnings of the combined entity as though the material business combination(s) on an individual or aggregate basis that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only.  This guidance also expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings.  This guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010, with early adoption permitted.  We adopted this guidance in the first quarter of 2011 for future business combinations.  There was no impact on our consolidated financial statements.

In July 2010, the FASB issued amended guidance for receivables.  The guidance for disclosures about activity that occurs during a period is effective for interim and annual reporting periods beginning on or after December 15, 2010.  We adopted this guidance for activity that occurs for our financing receivables in the first quarter of 2011.  The adoption of these disclosures did not have a material impact on our consolidated financial statements.  See Note 9, “Receivables,” for disclosures regarding our adoption of the FASB’s amended guidance for financing receivables.

In January 2010, the FASB issued amended guidance for fair value measurements and disclosures.  The guidance requires new disclosures about purchases, sales, issuances, and settlements in the roll forward of activity for level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years.  We adopted this guidance in the first quarter of 2011.  The adoption of this guidance did not have a material impact on our consolidated financial statements.
 
In October 2009, the FASB amended the accounting standards related to revenue recognition for arrangements with multiple deliverables.  This new guidance requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables, based on their relative selling price.  The guidance also establishes a hierarchy for determining the selling price of a deliverable which is based on vendor-specific objective evidence, third-party evidence, or management’s best estimate of selling price.  We adopted this guidance in the first quarter of 2011.  The adoption of this guidance did not have a material impact on our consolidated financial statements.  See Note 4, “Multiple-Deliverable Revenue Arrangements,” for disclosures regarding our adoption of the FASB’s amended guidance for revenue recognition for arrangements with multiple deliverables.

MULTIPLE-DELIVERABLE REVENUE ARRANGEMENTS

Our daily newspaper sells print and online advertising in bundled arrangements, where multiple products are involved.  Significant deliverables within these arrangements include advertising in the printed daily newspaper and advertising placed on various company websites, each of which are considered separate units of accounting.  Our broadcast business sells airtime on television and radio stations and online advertising in bundled arrangements, where multiple products are involved.  Significant deliverables within these arrangements include advertising on television and radio stations and advertising placed on various company websites, each of which are considered separate units of accounting.  There were no significant changes in units of accounting, the allocation process or the pattern and timing of revenue recognition upon adoption of the amended guidance related to revenue recognition for arrangements with multiple deliverables.

EARNINGS PER SHARE

Basic

We apply the two-class method for calculating and presenting our basic earnings per share.  As noted in the FASB’s guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings.  Under that method:

 
a)
Income (loss) from continuing operations (“net earnings (loss)”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period.

 
b)
The remaining earnings, which may include earnings from discontinued operations (“undistributed earnings”), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed.

 
JOURNAL COMMUNICATIONS, INC.
Notes to Unaudited Consolidated Condensed Financial Statements
(in thousands, except per share amounts)

EARNINGS PER SHARE continued

 
c)
The remaining losses (“undistributed losses”) are allocated to the class A and B common stock.  Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses.  Losses from discontinued operations are allocated to class A and B shares and may be allocated to class C shares and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C shares from income from continuing operations.

 
d)
The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock.

 
e)
Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock.  The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together.

In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings.  Undistributed losses are allocated to only the class A and B common stock for the reason stated above.

The following table sets forth the computation of basic earnings per share under the two-class method:
 
   
Second Quarter Ended
    Two Quarters Ended  
   
June 26, 2011
   
June 27, 2010
   
June 26, 2011
   
June 27, 2010
 
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
                       
Earnings from continuing operations
  $ 6,141     $ 7,924     $ 9,175     $ 13,184  
Less dividends declared or accrued:
                               
Class A and B
    --       --       --       --  
Class C
    464       464       928       928  
Non-vested restricted stock
    --       --       --       --  
Total undistributed earnings from continuing operations
  $ 5,677     $ 7,460     $ 8,247     $ 12,256  
Class A and B undistributed earnings from continuing operations
  $ 5,269     $ 6,892     $ 7,650     $ 11,320  
Class C undistributed earnings from continuing operations
    335       443       487       729  
Non-vested restricted stock undistributed earnings from continuing operations
  73       125       110       207  
Total undistributed earnings from continuing operations
  5,677     $ 7,460     8,247     $ 12,256  
                                 
Numerator for basic earnings from continuing operations per class A and B common stock:
                               
Dividends on class A and B
  $ --     $ --     $ --     $ --  
Class A and B undistributed earnings
    5,269       6,892       7,650       11,320  
Numerator for basic earnings from continuing operations per class A and B common stock
  $ 5,269     $ 6,892       7,650     $ 11,320  
 
 
9

 
JOURNAL COMMUNICATIONS, INC.
Notes to Unaudited Consolidated Condensed Financial Statements
(in thousands, except per share amounts)

EARNINGS PER SHARE continued

   
Second Quarter Ended
    Two Quarters Ended  
   
June 26, 2011
   
June 27, 2010
   
June 26, 2011
   
June 27, 2010
 
Numerator for basic earnings from continuing operations per class C common stock:
                       
Dividends accrued on class C
  $ 464     $ 464     $ 928     $ 928  
Class C undistributed earnings
    335       443       487       729  
Numerator for basic earnings from continuing operations per class C common stock
  $ 799     $ 907     $ 1,415     $ 1,657  
                                 
Denominator for basic earnings from continuing operations for each class of common stock:
                               
Weighted average shares outstanding –
                               
Class A and B
    51,318       50,784       51,222       50,700  
Class C
    3,264       3,264       3,264       3,264  
                                 
Basic earnings per share from continuing operations:
                               
Class A and B
  $ 0.10     $ 0.14     $ 0.15     $ 0.22  
Class C
  $ 0.24     $ 0.28     $ 0.43     $ 0.51  
                                 
Numerator for basic earnings from discontinued operations for eachclass of common stock and non-vested restricted stock:
                               
Total undistributed earnings from discontinued operations
  $ --     $ 176     $ 341     $ 219  
Undistributed earnings from discontinued operations:
                               
Class A and B
  $ --     $ 162     $ 316     $ 203  
Class C
    --       10       20       12  
Non-vested restricted stock
    --       4       5       4  
Total undistributed earnings from discontinued operations
  $ --     $ 176     $ 341     $ 219  
                                 
Denominator for basic earnings from discontinued operations for each class of common stock:
                               
Weighted average shares outstanding –
                               
Class A and B
    51,318       50,784       51,222       50,700  
Class C
    3,264       3,264       3,264       3,264  
                                 
Basic earnings per share from discontinued operations:
                               
Class A and B
  $ --     $ --     $ 0.01     $ 0.01  
Class C
  $ --     $ --     $ 0.01     $ --  
                                 
Numerator for basic net earnings for each class of common stock:
                               
Net earnings
  $ 6,141     $ 8,100     $ 9,516     $ 13,403  
Less dividends declared or accrued: