In Q4, revenue of $124.5 million increased 31.0% or 24.7% excluding the extra week. Operating earnings of $27.2 million increased 91.9% driven by higher political revenue. Total expenses of $97.3 million increased 20.3%. Excluding the special items and the extra week, total expenses increased 11.3%. Net earnings were $15.1 million, an increase of 83.6%.
In Q4, basic and diluted earnings per share of class A and B common stock were $0.30 compared to $0.14. The net impact of the special items and the extra week in 2012 had a $0.02 negative impact on our diluted earnings per share of class A and B common stock from continuing operations in both Q4 of 2012 and 2011.
“Journal Communications posted excellent results in the fourth quarter with consolidated revenue of $124.5 million, up 31%, led by record political spending in the Broadcast group” said Journal Steve Smith, Chairman and CEO. “In addition to the record political advertising revenue in 2012, we saw core advertising growth in television and radio and moderating revenue declines in Publishing. For the full year, consolidated revenue was $400.0 million, up 12% over 2011.”
For the full year, revenue from continuing operations of $400.0 million increased 12.1%. Excluding the extra week, revenue increased 10.4%. Operating earnings of $60.0 million increased 50.8% driven by higher political revenue.
Excluding the special items and the extra week, operating earnings increased 55.4%. Total expenses of $340.1 million increased 7.3%. Excluding the special items and the extra week, total expenses increased 4.4%.
“2012 was an important year strategically as well. We closed on the purchase of NewsChannel 5, an exceptional TV station in Nashville and reached an agreement to purchase WNOX-FM, which will add to our successful Knoxville radio cluster. We also bought WACY-TV in Appleton, WI, strengthening our duopoly in the Green Bay market. Finally, we successfully repurchased all of our class C common shares and amended and extended our credit facility.”
Broadcasting revenue increased 52.9% to $77.9 million in Q4 and 26.6% to $235.6 million for the full year. Excluding the extra week, revenue increased 46.6% and 24.9% in Q4 and FY, respectively. Total political revenue in the fourth quarter was $20.6 million and $36.5 million for the full year compared to $0.8 million and $4.9 million. Expenses increased 32.1% in the fourth quarter and 15.7% for the full year. Excluding special items and the extra week, expenses increased 19.7% and 11.5% in the fourth quarter and full year respectively. Record political revenue drove operating earnings of $23.4 million in the fourth quarter and $56.2 million for the year, an increase of 141.6% and 81.4%, respectively.
Television
In Q4, Television revenue increased 76.2% to $55.8 million or 69.6% excluding the extra week. Television political revenue was $19.9 million compared to $0.7 million. On a same-station basis excluding political and the extra week, total revenue was flat, local revenue decreased 3.1%, primarily due to the crowding-out effect of political advertising, and national revenue increased 6.6%. Retransmission revenue was $3.0 million compared to $2.4 million.
In Q4, operating expenses increased 34.9%. On a same-station basis excluding special items and the extra week, expenses increased 18.4% driven by higher sales commissions and increased employee costs. Included in special items is a $0.7 million non-cash impairment charge for broadcast licenses in 2012. Operating earnings were $19.7 million.
For FY television revenue increased 37.7% to $159.4 million or 35.9% excluding the extra week. Television political revenue was $34.8 million compared to $4.1 million. On a same-station basis excluding political and the extra week, total revenue increased 4.7%, local revenue decreased 1.5%, due to the crowding-out effect of political revenue, and national revenue increased 16.9%. Retransmission revenue was $10.6 million compared to $8.3 million.
Radio
For radio in Q4, revenue increased 14.6% to $22.1 million or 8.8% excluding the extra week. Radio political revenue was $0.7 million compared to $0.1 million. On a same-station basis excluding political and the extra week, total revenue increased 1.5%, local revenue increased 4.4% and national revenue decreased 8.4%.
In Q4, operating expenses increased 26.8%. On a same-station basis excluding special items and the extra week, expenses increased 10.2% driven by increased employee costs, higher sales commissions and sports rights fees. Operating earnings were $3.7 million.
For FY, radio revenue increased 8.4% to $76.3 million or 6.8% excluding the extra week. Radio political revenue was $1.7 million compared to $0.8 million. On a same-station basis excluding political and the extra week, total revenue increased 2.1%, local revenue increased 2.9% and national revenue increased 1.3%.
For the full year, operating expenses increased 12.6%. On a same-station basis excluding special items and the extra week, expenses increased 4.3% due to higher employee costs and higher sales commissions. Operating earnings from radio stations were $14.0 million.
Publishing
Publishing revenue of $46.7 million increased 5.7% for the fourth quarter and decreased 3.5% to $164.9 million for the full year. Excluding the extra week, revenue decreased 0.6% and 5.2% for the quarter and full year, respectively.
Expenses increased 5.7% in Q4 and decreased 1.1% for the year. For the Daily Newspaper category, in Q4, revenue increased 7.4% to $41.5 million or 0.7% excluding the extra week. Retail advertising revenue increased 8.6%, or 1.7% excluding the extra week. Classified ad revenue decreased 5.5%, or 9.6% excluding the extra week, largely due to a decrease in the automotive and employment advertising categories. Interactive advertising revenue of $4.0 million increased 32.9%, or 28.4% excluding the extra week, driven by an increase in retail sponsorships. Circulation revenue increased 7.3% to $13.7 million, but was essentially flat excluding the extra week.
For the full year, revenue decreased 1.3% to $143.6 million or 3.0% excluding the extra week. Retail advertising revenue decreased 0.2%, or 2.2% excluding the extra week. Classified advertising revenue decreased 16.5%, or 17.4% excluding the extra week, largely due to a decrease in the automotive and employment advertising categories. Interactive ad revenue of $12.3 million increased 9.3%, or 8.1% excluding the extra week. Circulation revenue increased 2.7% to $51.2 million, or 0.8% excluding the extra week.
In Q4. Community Newspapers revenue decreased 6.2% to $5.2 million. Excluding the divested northern Wisconsin community newspapers and shoppers and the extra week, revenue increased 1.5% to $3.3 million.
For the full year, revenue decreased 16.4% to $21.4 million or 6.1% to $12.6 million excluding revenue related to divested northern Wisconsin and Florida community newspapers and shoppers and the extra week. Operating expenses decreased 13.2% or 6.4% excluding divested northern Wisconsin and Florida community newspapers and shoppers and the extra week. Operating earnings were $0.6 million and include a $0.3 million pre-tax loss on the sale of the northern Wisconsin community newspapers and shoppers.
