Category: Journal Register Company Reports.
Journal Register Company Reports Period Two Advertising Revenues; Advertising Revenues Increase 41.6 Percent; 1.6 Percent on a Same-Store Basis; Advertising Revenues for Michigan Cluster up 4.9 Percent
TRENTON, N.J.--(BUSINESS WIRE)--March 17, 2005--Journal Register Company (NYSE:JRC) today reported that total advertising revenues for the four weeks ended February 27, 2005 were $33.1 million, an increase of 41.6 percent as compared to $23.4 million for the four weeks ended February 29, 2004.
Total advertising revenues for Period Two of 2005 include the results of the Company's acquisitions, including 21st Century Newspapers.
Total advertising revenues for the Company during Period Two of 2005 reflect increases in all advertising categories, including retail advertising revenues, up 40.5 percent; classified advertising revenues, up 41.7 percent; and national advertising revenues, up 50.6 percent.
For comparison purposes, where noted, the Company's advertising revenues are presented on a same-store basis, which excludes the advertising revenues of the Company's 2004 acquisitions from the periods presented.
On a same-store basis, Journal Register Company's advertising revenues for Period Two increased 1.6 percent as compared to Period Two of 2004. Total advertising revenues for 21st Century Newspapers, based in Pontiac, Michigan, which are not included in the same-store results, were up 4.9 percent in Period Two, as compared to the prior year period. This growth was led by 21st Century's weekly group, Heritage Newspapers, based in Southgate, Michigan, which reported an increase in advertising revenues of 10.5 percent, with strength in retail, classified automotive and classified employment advertising revenues.
Classified advertising revenues for Period Two, on a same-store basis, increased 1.5 percent as compared to Period Two of 2004, led by growth in classified real estate and classified employment advertising revenues. Classified real estate advertising revenues were up 8.7 percent in Period Two with all six of the Company's same-store clusters reporting increases in this category. Classified real estate advertising revenues were particularly strong in the Capital-Saratoga, New York cluster, up 27.6 percent, and the Mid-Hudson, New York cluster, up 26.9 percent. Classified employment advertising revenues were up 3.8 percent in Period Two. Classified automotive advertising revenues, on a same-store basis, decreased 11.0 percent as compared to Period Two of 2004.
On a same-store basis, retail advertising revenues for the Company increased 0.6 percent in Period Two as compared to the prior year period, with four of the Company's clusters reporting increases in the category. Retail advertising revenue performance was led by the Mid-Hudson, New York cluster, up 4.6 percent, and the Connecticut cluster, up 2.6 percent, each reporting strength in major accounts.
National advertising revenues were up 12.5 percent in Period Two, on a same-store basis, as compared to the prior year period. National advertising revenue performance was led by the Connecticut cluster, up 20.3 percent, with strength in the national automotive and telecommunications categories, and the Greater Cleveland cluster, up 16.8 percent, with increases in the national automotive category.
Several of the Company's operations reported strong advertising revenues in Period Two, as noted below.
In the Greater Philadelphia cluster, the Delaware County Daily Times, based in Primos, Pennsylvania, was up 7.1 percent, with strength in retail and all categories of classified advertising revenues. The Company's weekly newspapers on the Main Line, based in Ardmore, Pennsylvania, were up a combined 11.0 percent, with strength in retail and classified employment advertising revenues.
In the Connecticut cluster, the New Haven Register reported an increase in total advertising revenues for Period Two of 6.1 percent as compared to the prior year period. Retail advertising revenues were up 5.0 percent as compared to Period Two of 2004. National advertising revenues at the New Haven Register were up 23.7 percent for the period, driven by growth in the national automotive and telecommunications categories. Classified advertising revenues at the New Haven Register were down 1.2 percent, as compared to Period Two of 2004, with classified real estate advertising revenues up 0.9 percent, classified employment advertising revenues down 1.8 percent, and classified automotive advertising revenues down 23.5 percent, each as compared to the prior year period.
Also in Connecticut, The Register Citizen, in Torrington, reported an increase in advertising revenues of 11.1 percent, with growth in retail, classified real estate, classified automotive and classified employment advertising revenues.
In the Company's Greater Cleveland cluster, The News-Herald, in Willoughby, Ohio, was up 2.8 percent, led by increases in retail, national, classified real estate and classified employment advertising revenues.
In the Company's Mid-Hudson, New York cluster, the Daily Freeman, in Kingston, reported an increase in total advertising revenues of 12.4 percent, with growth in retail, national, classified real estate and classified employment advertising revenues.
In the Company's Capital-Saratoga, New York cluster, The Saratogian, in Saratoga Springs, was up 16.4 percent, with growth in retail, national and all categories of classified advertising revenues.
Online revenue was $0.7 million, up 71.3 percent in Period Two of 2005 as compared to the prior year period. Journal Register Company Web sites generated approximately 16.4 million page views in Period Two, an increase of 62.8 percent as compared to the prior year period.
Prior to 2005, the Company had included online revenues in the classified advertising revenue total but not in the specific classified categories of employment, automotive and real estate. Print and online advertising revenues are now reported on a combined basis to calculate the percentage changes in these categories. Results for each period of 2004 have been reclassified to reflect this change.
Journal Register Company is a leading U.S. newspaper publishing company. Journal Register Company owns 27 daily newspapers, including the New Haven Register, Connecticut's second largest daily and Sunday newspaper, and 338 non-daily publications. Journal Register Company currently operates 195 individual Web sites that are affiliated with the Company's daily newspapers and non-daily publications. These Web sites can be accessed at www.journalregister.com. All of the Company's operations are strategically clustered in seven geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; Central New England; and the Capital-Saratoga and Mid-Hudson regions of New York. The Company has an investment in PowerOne Media, LLC, a leading provider of online solutions for newspapers, hosting the largest online newspaper network in the U.S.
This news release contains forward-looking statements that involve a number of risks and uncertainties, which could cause actual results to differ materially. These include, but are not limited to, the success of the Company's acquisition strategy, including the acquisition of 21st Century Newspapers, dispositions, the ability of the Company to achieve cost reductions and integrate acquisitions, including the acquisition of 21st Century Newspapers, competitive pressures, general or regional economic conditions and advertising trends, the unavailability or a material increase in the price of newsprint and increases in interest rates. These and additional risk factors are outlined in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Financial Summary follows.
JOURNAL REGISTER COMPANY
PERIOD TWO ADVERTISING REVENUE REPORT
(Dollars in thousands, unaudited)
Four Week Period Ended Nine Week Period Ended
--------------------------- ---------------------------
% %
2/27/05 2/29/04 Increase 2/27/05 2/29/04 Increase
-------- --------- -------- -------- --------- --------
Local $17,569 $12,504 40.5% $35,770 $25,434 40.6%
Classified 13,580 9,582 41.7% 29,003 19,989 45.1%
National 1,938 1,286 50.6% 3,902 2,703 44.4%
-------- --------- -------- -------- --------- --------
Total $33,087 $23,372 41.6% $68,675 $48,126 42.7%
Note: The revenues of the Company's acquisitions are included from the
date of acquisition in each period presented above.
Contacts
Journal Register Company
Jean B. Clifton
Executive Vice President and Chief Financial Officer
609-396-2200
Source: Business Wire (press release) - San Francisco,CA,USA