JOURNAL COMMUNICATIONS INC

CIK:0001232241|SEC Filings

DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

11 DISCONTINUED OPERATIONS

KMIR-TV and My 13 KPSE-TV

On October 4, 2013, our television business agreed to the sale of stations KMIR-TV and My 13 KPSE-TV in Palm Springs, California to OTA Broadcasting, LLC, an affiliate of Virginia based OTA Broadcasting, LLC for $17,000 in cash and certain other contingent considerations. The transaction closed effective January 1, 2014. We recorded a pre-tax book gain of $10,177 in the first quarter of 2014.

The following table summarizes KMIR-TV and KPSE-TV's revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2014		2013			2012
Years ended December 31, December 29 and December 30
Revenue	$	48	$	5,483		$	6,924
Earnings before income taxes	$	9,985	$	(62	)	$	1,262

The following table presents the aggregate carrying amounts of the major classes of assets divested:

Cash and cash equivalents	$	1
Receivables, net		1,149
Prepaid expenses and other current assets		11
Program and barter rights		620
Deferred income taxes		713
Property and equipment, net		1,852
Network affiliations, net		1,935
Income tax receivable		767
Total assets	$	7,048

Accounts payable	$	37
Accrued compensation		133
Deferred revenue		57
Syndicated programs		640
Other current liabilities		18
Total liabilities	$	885

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 29, 2013	Dec. 30, 2012
Cash flow from operating activities:
Net earnings	$ 45,190us-gaap_NetIncomeLoss	$ 26,201us-gaap_NetIncomeLoss	$ 33,325us-gaap_NetIncomeLoss
Less earnings from discontinued operations	5,872	(49)	743
Earnings from continuing operations	39,318	26,250	32,582
Adjustments for non-cash items:
Depreciation	19,141us-gaap_Depreciation	20,058us-gaap_Depreciation	20,590us-gaap_Depreciation
Amortization	2,818us-gaap_AdjustmentForAmortization	2,855us-gaap_AdjustmentForAmortization	1,448us-gaap_AdjustmentForAmortization
Provision for doubtful accounts	324us-gaap_ProvisionForDoubtfulAccounts	314us-gaap_ProvisionForDoubtfulAccounts	503us-gaap_ProvisionForDoubtfulAccounts
Deferred income taxes	10,141us-gaap_DeferredIncomeTaxExpenseBenefit	12,441us-gaap_DeferredIncomeTaxExpenseBenefit	16,104us-gaap_DeferredIncomeTaxExpenseBenefit
Non-cash stock-based compensation	1,742us-gaap_ShareBasedCompensation	2,089us-gaap_ShareBasedCompensation	2,028us-gaap_ShareBasedCompensation
Net (gain) loss from disposal of assets	(47)us-gaap_GainLossOnDispositionOfAssets	(402)us-gaap_GainLossOnDispositionOfAssets	493us-gaap_GainLossOnDispositionOfAssets
Net loss on sale of business	369us-gaap_GainLossOnSaleOfBusiness	0us-gaap_GainLossOnSaleOfBusiness	0us-gaap_GainLossOnSaleOfBusiness
Impairment of broadcast licenses	211	0	1,616
Impairment of long-lived assets	69	238	493
Net changes in operating assets and liabilities, excluding effect of sales and acquisitions:
Receivables	1,434us-gaap_IncreaseDecreaseInReceivables	(2,823)us-gaap_IncreaseDecreaseInReceivables	(2,090)us-gaap_IncreaseDecreaseInReceivables
Inventories	339us-gaap_IncreaseDecreaseInInventories	753us-gaap_IncreaseDecreaseInInventories	(1,178)us-gaap_IncreaseDecreaseInInventories
Accounts payable	2,038	(4,589)	5,936
Accrued employee benefits	1,135	(2,105)	(1,818)
Other assets and liabilities	3,203	(1,663)	(1,451)
NET CASH PROVIDED BY OPERATING ACTIVITIES	82,235	53,416	75,256
Cash flow from investing activities:
Capital expenditures for property and equipment	(9,074)	(12,440)	(12,305)
Proceeds from sales of assets	151	720	1,244
Proceeds from sale of businesses	1,500	0	2,892
Insurance recoveries	0	645	0
Acquisition of businesses	0	(5,955)	(231,728)
NET CASH USED FOR INVESTING ACTIVITIES	(7,423)	(17,030)	(239,897)
Cash flow from financing activities:
Payments of financing costs	0us-gaap_PaymentsOfFinancingCosts	0us-gaap_PaymentsOfFinancingCosts	(4,583)us-gaap_PaymentsOfFinancingCosts
Proceeds from long-term notes payable to banks	170,825us-gaap_ProceedsFromNotesPayable	194,805us-gaap_ProceedsFromNotesPayable	349,955us-gaap_ProceedsFromNotesPayable
Payments on long-term notes payable to banks	(245,775)us-gaap_RepaymentsOfNotesPayable	(229,950)us-gaap_RepaymentsOfNotesPayable	(161,165)us-gaap_RepaymentsOfNotesPayable
Payments on unsecured subordinated notes payable	(2,655)	(2,656)	(9,664)
Principal payments under capital lease obligations	(79)	(74)	(258)
Proceeds from issuance of common stock, net	271	259	245
Income tax benefits from vesting of restricted stock	322	112	330
Redemption of common stock, net	0	0	(3,910)
Purchase of noncontrolling interest	0us-gaap_PaymentsToMinorityShareholders	0us-gaap_PaymentsToMinorityShareholders	(2,038)us-gaap_PaymentsToMinorityShareholders
Payment of cash equivalent of accrued dividends	0	0	(6,246)
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(77,091)	(37,504)	162,666
Cash flow from discontinued operations:
Net operating activities	(2,974)	726	2,418
Net investing activities	16,574	(125)	(431)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS	13,600	601	1,987
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	11,321	(517)	12
Cash and cash equivalents:
Beginning of year	1,912	2,429	2,417
End of Year	13,233	1,912	2,429
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	18,205us-gaap_IncomeTaxesPaid	6,087us-gaap_IncomeTaxesPaid	4,317us-gaap_IncomeTaxesPaid
Cash paid for interest	$ 5,247us-gaap_InterestPaidNet	$ 5,552us-gaap_InterestPaidNet	$ 1,521us-gaap_InterestPaidNet

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 29, 2013
Current assets:
Cash and cash equivalents	$ 13,233	$ 1,912
Receivables, net	66,061us-gaap_ReceivablesNetCurrent	66,670us-gaap_ReceivablesNetCurrent
Inventories, net	1,852us-gaap_InventoryNet	2,191us-gaap_InventoryNet
Prepaid expenses and other current assets	3,569	3,305
Syndicated programs	2,598jrn_SyndicatedProgramsAssetCurrent	2,816jrn_SyndicatedProgramsAssetCurrent
Deferred income taxes	3,122us-gaap_DeferredTaxAssetsNetCurrent	2,508us-gaap_DeferredTaxAssetsNetCurrent
Current assets of discontinued operations	0	7,048
TOTAL CURRENT ASSETS	90,435us-gaap_AssetsCurrent	86,450us-gaap_AssetsCurrent
Property and equipment:
Land and land improvements	36,733us-gaap_Land	37,026us-gaap_Land
Buildings and building improvements	131,230us-gaap_BuildingsAndImprovementsGross	131,209us-gaap_BuildingsAndImprovementsGross
Equipment	237,484us-gaap_MachineryAndEquipmentGross	236,588us-gaap_MachineryAndEquipmentGross
Construction in progress	1,218us-gaap_ConstructionInProgressGross	2,257us-gaap_ConstructionInProgressGross
Gross property and equipment	406,665us-gaap_PropertyPlantAndEquipmentGross	407,080us-gaap_PropertyPlantAndEquipmentGross
Less accumulated depreciation	256,269	246,531
Net property and equipment	150,396us-gaap_PropertyPlantAndEquipmentNet	160,549us-gaap_PropertyPlantAndEquipmentNet
Syndicated programs	3,424jrn_SyndicatedProgramsAssetNoncurent	5,162jrn_SyndicatedProgramsAssetNoncurent
Goodwill	121,740us-gaap_Goodwill	124,702us-gaap_Goodwill
Broadcast licenses	134,055	135,166
Other intangible assets, net	54,945	57,763
Deferred income taxes	20,557us-gaap_DeferredTaxAssetsNetNoncurrent	20,125us-gaap_DeferredTaxAssetsNetNoncurrent
Other assets	4,928us-gaap_OtherAssetsNoncurrent	6,101us-gaap_OtherAssetsNoncurrent
TOTAL ASSETS	580,480us-gaap_Assets	596,018us-gaap_Assets
Current liabilities:
Accounts payable	24,930us-gaap_AccountsPayableCurrent	22,154us-gaap_AccountsPayableCurrent
Accrued compensation	11,665us-gaap_AccruedSalariesCurrent	9,134us-gaap_AccruedSalariesCurrent
Accrued employee benefits	5,149	4,865
Deferred revenue	14,812us-gaap_DeferredRevenueCurrent	15,459us-gaap_DeferredRevenueCurrent
Syndicated programs	2,356jrn_SyndicatedProgramsLiabilityCurrent	2,247jrn_SyndicatedProgramsLiabilityCurrent
Accrued income taxes	5,487us-gaap_AccruedIncomeTaxesCurrent	3,286us-gaap_AccruedIncomeTaxesCurrent
Other current liabilities	4,486us-gaap_OtherLiabilitiesCurrent	5,560us-gaap_OtherLiabilitiesCurrent
Current portion of unsecured subordinated notes payable	2,656us-gaap_SubordinatedDebtCurrent	2,656us-gaap_SubordinatedDebtCurrent
Current portion of long-term notes payable to banks	15,000us-gaap_NotesPayableToBankCurrent	15,000us-gaap_NotesPayableToBankCurrent
Current portion of long-term liabilities	259jrn_OtherLongTermLiabilitiesCurrent	276jrn_OtherLongTermLiabilitiesCurrent
Current liabilities of discontinued operations	0	885
TOTAL CURRENT LIABILITIES	86,800us-gaap_LiabilitiesCurrent	81,522us-gaap_LiabilitiesCurrent
Accrued employee benefits	93,460	64,541
Syndicated programs	3,866	5,741
Long-term notes payable to banks	105,000us-gaap_NotesPayableToBankNoncurrent	179,950us-gaap_NotesPayableToBankNoncurrent
Unsecured subordinated notes payable	7,968us-gaap_SubordinatedLongTermDebt	10,623us-gaap_SubordinatedLongTermDebt
Other long-term liabilities	3,678us-gaap_OtherLiabilitiesNoncurrent	3,554us-gaap_OtherLiabilitiesNoncurrent
Equity:
Additional paid-in capital	258,366us-gaap_AdditionalPaidInCapital	256,734us-gaap_AdditionalPaidInCapital
Accumulated other comprehensive loss	(56,856)	(39,654)
Retained earnings	77,693	32,503
TOTAL EQUITY	279,708us-gaap_StockholdersEquity	250,087us-gaap_StockholdersEquity
TOTAL LIABILITIES AND EQUITY	580,480	596,018
Class B [Member]
Equity:
Common stock value	53	57
TOTAL EQUITY	53	57
Class A [Member]
Equity:
Common stock value	452	447
TOTAL EQUITY	$ 452	$ 447