Following in the path of several other media companies (and non-media companies, for that matter), Journal Communications has suspended payment of its quarterly dividend.
The company’s board of directors determined that the company will suspend its dividend on the Journal’s class A and B shares “given the challenging economic environment.” The board also suspended the payment of the cumulative dividend on its class C shares. The accumulated dividend must be paid to class C shareholders prior to the payment of any future dividends on class A or class B shares.
“While we regret having to make this difficult decision, we believe this is the prudent choice in order to maintain financial flexibility. Given the continued challenging economy and business conditions, we believe that this will allow the company to continue to direct a significant portion of its cash flow to debt reduction,” said Chairman Steven Smith., Chairman.