Journal Communications Inc. Reports Operating Results (10-K)
Journal Communications Inc. has a market cap of $328.5 million; its shares were traded at around $5.97 with a P/E ratio of 9.9 and P/S ratio of 0.9. Hedge Fund Gurus that owns JRN: Michael Dell of MSD Capital, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns JRN: Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates.
Highlight of Business Operations: Our revenue was $376.8 million, $365.5 million and $451.7 million in 2010, 2009, and 2008, respectively. The revenue generated by our operating segments as a percentage of our consolidated revenue for the last three years is shown below:
In addition to our traditional print media, we operate a number of websites that provide editorial and advertising content, including JSOnline.com, MilwaukeeMarketplace.com, Milwaukeemoms.com and the MyCommunityNOW family of 26 community websites. Also, we produce a subscription-based website, PackerInsider.com, dedicated to coverage of the Green Bay Packers. Our employment site, JobNoggin.com, which is co-branded with Monster Worldwide, Inc. (Monster®), combines the promotional strength of our daily newspaper, JSOnline.com and our Milwaukee television and radio properties with Monster®s product and brand. Our daily newspaper is a member of the Yahoo! Consortium, a newspaper and Yahoo! web portal partnership that shares content, advertising and technology. In January 2009, our daily newspaper launched a co-branded online automotive offering under a new franchise agreement with CarSoup of Minnesota, Inc. (CarSoup.com). In 2010, online revenue of $10.8 million for Journal Interactive at our daily newspaper increased 14.4% compared to $9.5 million in 2009 due to an increase in retail sponsorship and classified packages sold.
Circulation revenue accounted for 32.9% of our daily newspapers total revenue in 2010. The Milwaukee Journal Sentinel single copy prices are $1.00 for daily, following a price increase in January 2011, and $2.00 for Sunday in our five county primary market area. We believe our average net paid circulation is decreasing due to,
have a significant effect on our results of operations. The average net price per ton was $613 in 2010 compared to an average net price per ton of $574 in 2009. Our consumption of newsprint decreased to 26,309 metric tons in 2010 from 27,598 metric tons in 2009, and our total cost of newsprint increased $0.3 million in 2010 compared to 2009. The decrease in consumption in 2010 at our publishing businesses was primarily due to decreases in average net paid circulation, run-of-press (ROP) advertising, waste, and a decrease in content pages. Based on the consumption of newsprint in 2010 by our daily newspaper and by our community newspapers and shoppers, a $10 per ton increase or decrease in the price of newsprint would increase or decrease our total cost of newsprint by $0.3 million.
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