Magazine article Editor & Publisher

Journal Register Reports Assets of $77 Million -- and Liabilities of $719 Million

Magazine article Editor & Publisher

Journal Register Reports Assets of $77 Million -- and Liabilities of $719 Million

Article excerpt

With all its bank debt booked as a current liability in the second quarter struggling Journal Register Co. reported late Tuesday that its current assets by the end of June stood at $76.8 million -- and its liabilities were $719.8 million.

In a second-quarter report full of bad news, Journal Register also said it had taken a non-cash goodwill impairment charge of $287.0 million on the mastheads of its depressed Michigan and Pennsylvania clusters of newspapers.

With the charge, Journal Register reported a loss for the quarter of $174.5 million, or $4.43 per diluted share,

Without the charge, Journal Register said, it would have reported net income of $500,000, or 1 cent per diluted share, compared to net income of $5.5 million, or 14 cents per diluted share in the year-ago quarter.

Second-quarter revenue fell 10.4% to $108.1 million, dampened by ad revenue that dropped 13.1%.

Classified ad revenue dipped 15.9% on big drops in real estate (down 24.4%), employment (down 22.4%), and automotive (down 17.9%).

Local retail ad revenue dropped 9.5% on weakness in department and discount store plus financial/insurance categories partially offset by improvements in the medical/healthcare category, Journal Register said.

National advertising revenue, which accounted for just 3.2% of total second-quarter ad revenue, plunged 33.3%.

Online revenues, which Journal Register includes in its advertising results, increased 13.1% for the quarter, and accounted for 6. …

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