JRC Journal Register

Journal Register Company (NYSE:JRC) today reported total revenues from continuing operations for Period Six, the four weeks ended July 1, 2007, were $36.6 million, a decrease of 8.7 percent, as compared to $40.0 million for the four weeks ended June 25, 2006. Excluding results from the Michigan cluster, total revenues decreased 7.9 percent as compared to the prior year period. Total advertising revenues for Period Six in 2007, from continuing operations, were $27.9 million, a decrease of 10.9 percent, as compared to $31.3 million for the four weeks ended June 25, 2006, reflecting ongoing softness particularly in the Company�s Michigan cluster. Senior Vice President and Chief Financial Officer Julie A. Beck said, �While this period�s advertising revenues are not unexpected given the trends we have seen thus far in 2007, we still believe that the case for improvement in the latter part of the year for advertising revenue growth remains compelling. Accordingly, and based on our projections and tracking for the third and fourth quarters, we expect to see an uplift in advertising revenue activity.� Revenue Performance by Category: Online The Company�s positive trend in online revenues continued for Period Six, posting revenues of $1.5 million, an increase of 21.7 percent as compared to Period Six of 2006. The Company�s Web sites had 3.6 million unique visitors generating 30.4 million page views in Period Six. James W. Hall, Acting Chief Executive Officer, said, �Although we are some distance from where we need to be in our online operations, we are encouraged by the positive momentum we�re seeing in our online initiatives. The platform is beginning to work well in Philadelphia and we expect all our clusters to be online by the end of 2007. �Regarding revenues overall, we expected to see a decline, driven in large part by the industry-wide print advertising slump. We continue to forecast an improvement and expect modest revenue growth in the fourth quarter of 2007. In addition, we have clearly made progress lowering our operating cost structure,� continued Mr. Hall, �and are evaluating other opportunities to improve efficiency provided that product quality and service for our customers are not compromised.� Retail Retail advertising revenues were down 11.3 percent in Period Six, as compared to the prior year period. Excluding the results of the Company�s Michigan cluster, retail advertising revenues were down 9.1 percent. Retail advertising revenue was hit particularly hard in the financial/insurance and building/hardware/garden store sectors. The services sector was up slightly. Classified Classified advertising revenues for Period Six decreased 9.2 percent, as compared to the prior year period. Excluding the results from the Michigan cluster, total classified advertising revenues decreased 6.9 percent for the period. Classified other advertising revenues decreased 3.0 percent in Period Six, as compared to the prior year period. Excluding the results from the Company�s Michigan cluster, classified other advertising revenues decreased 1.0 percent in Period Six. Classified employment advertising revenues decreased 3.9 percent in Period Six, as compared to Period Six of 2006. Excluding the Michigan cluster, classified employment revenues were down 4.2 percent in period six compared to the prior year. Classified auto advertising revenues were down 11.8 percent, as compared to Period Six of 2006. Excluding results from the Company�s Michigan cluster, classified auto advertising revenues were down 4.6 percent for the period. Classified real estate advertising revenues was the Company�s most challenging category with a decrease of 18.8 percent. The Company�s classified real estate advertising revenues were down 16.4 percent excluding the results of the Company�s Michigan cluster. National National advertising revenues, which represent approximately four percent of the Company�s total advertising revenues, decreased 20.2 percent in Period Six, as compared to the prior year period with continued softness in the telecommunications advertising revenue category. Circulation Revenues Circulation revenues were up 0.9 percent as compared to the prior year period. About Journal Register Company Journal Register Company is a leading U.S. media company. Journal Register Company owns 22 daily newspapers and 346 non-daily publications. Journal Register Company currently operates 226 individual Web sites that are affiliated with the Company's daily newspapers, non-daily publications and its network of employment Web sites. These Web sites can be accessed at www.JournalRegister.com. All of the Company�s operations are strategically clustered in six geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; and the Capital-Saratoga and Mid-Hudson regions of New York. The Company owns JobsInTheUS, a network of 19 premier employment Web sites. Safe-Harbor This release contains forward-looking information about Journal Register Company that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as �believe,� �expect,� �may,� �will,� �should,� �project,� �plan,� �seek,� �intend,� or �anticipate� or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, the extent or timing of cost savings, charges, the extent of employees impacted, and statements about the future performance, operations, products and services of the Company. These forward-looking statements involve a number of risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the success of the Company's acquisition strategy, dispositions, the ability of the Company to achieve cost reductions and integrate acquisitions, competitive pressures including competition from non-newspaper forms of media , general or regional economic conditions and advertising trends, the unavailability or a material increase in the price of newsprint and increases in interest rates, changes in performance that affect financial covenant compliance or funds available for borrowing, technological changes, the adoption of new accounting standards or changes in accounting standards. 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 SIX AND YEAR-TO-DATE REVENUE REPORT (Dollars in thousands, unaudited) � Period Six Year-To-Date Four weeks ended Twenty-Six weeks ended Revenues: 7/1/2007 6/25/2006 % Change � 7/1/2007 6/25/2006 % Change � Advertising: Local $15,048 $16,970 (11.3 ) $97,678 $105,836 (7.7 ) Classified 11,652 12,837 (9.2 ) 73,973 80,722 (8.4 ) National 1,199 1,502 (20.2 ) 7,361 9,774 (24.7 ) Total Advertising 27,899 31,309 (10.9 ) 179,012 196,332 (8.8 ) � Circulation 7,197 7,132 0.9 45,911 46,184 (0.6 ) Other revenue 1,455 1,594 (8.7 ) 9,888 9,612 2.9 � Total Revenue Continuing Ops. 36,551 40,035 (8.7 ) 234,811 252,128 (6.9 ) � Discontinued Operations 0 3,057 3,309 19,627 � Total Company $36,551 $43,092 $238,120 $271,755 � Notes: (1) The revenues of the Company's acquisitions are included from the date of acquisition in each period presented above. (2) Other revenue is primarily Commercial Printing revenue (3) Discontinued operations represent the divestiture of the Company's New England newspapers