XFRA:JOU Journal Communications, Inc. Class A Quarterly Report 10-Q Filing - 6/24/2012

Effective Date 6/24/2012

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• JOURNAL COMMUNICATIONS, INC 10-Q 6-24-2012 • EXHIBIT 31.1 • EXHIBIT 31.2 • EXHIBIT 32 • INSTANCE DOCUMENT • XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT • XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT • XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT • XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT • XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 24, 2012

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File Number:

1-31805

JOURNAL COMMUNICATIONS, INC.

(Exact name of registrant as specified in its charter)

Wisconsin		20-0020198
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

333 W. State Street, Milwaukee, Wisconsin		53203
(Address of principal executive offices)		(Zip Code)

(414) 224-2000

Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yesx No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o

Accelerated Filer x

Non-accelerated Filer o

Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

Number of shares outstanding of each of the issuer’s classes of common stock as of July 27, 2012:

Class	Outstanding at July 27, 2012
Class A Common Stock	43,549,765
Class B Common Stock	6,996,679
Class C Common Stock	3,264,000

JOURNAL COMMUNICATIONS, INC.

INDEX

			Page No.

Part I.	Financial Information


	Item 1.	Financial Statements

		Unaudited Condensed Consolidated Balance Sheets as of June 24, 2012 and December 25, 2011	2

		Unaudited Condensed Consolidated Statements of Operations for the Second Quarter and Two Quarters Ended June 24, 2012 and June 26, 2011	3

		Unaudited Condensed Consolidated Statements of Comprehensive Income for the Second Quarter and Two Quarters Ended June 24, 2012 and June 26, 2011	4

		Unaudited Condensed Consolidated Statement of Equity for the Two Quarters Ended June 24, 2012	5

		Unaudited Condensed Consolidated Statement of Equity for the Two Quarters Ended June 26, 2011	6

		Unaudited Condensed Consolidated Statements of Cash Flows for the Two Quarters Ended June 24, 2012 and June 26, 2011	7

		Notes to the Unaudited Condensed Consolidated Financial Statements as of June 24, 2012	8

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22

	Item 3.	Quantitative and Qualitative Disclosure of Market Risk	37

	Item 4.	Controls and Procedures	37

Part II.	Other Information

	Item 1.	Legal Proceedings	37

	Item 1A.	Risk Factors	37

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38

	Item 3.	Defaults Upon Senior Securities	38

	Item 4.	Mine Safety Disclosures	38

	Item 5.	Other Information	38

	Item 6.	Exhibits	39

Index

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	June 24, 2012			December 25, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	2,251		$	2,418
Investments of variable interest entity		500			500
Receivables, net		54,779			56,695
Inventories, net		2,836			1,766
Prepaid expenses and other current assets		4,653			3,877
Syndicated programs		2,369			2,822
Deferred income taxes		3,033			3,593
TOTAL CURRENT ASSETS		70,421			71,671


Property and equipment, at cost, less accumulated depreciation of $249,172 and $239,725, respectively		162,589			168,200
Syndicated programs		4,270			4,457
Goodwill		8,670			8,670
Broadcast licenses		81,547			81,547
Other intangible assets, net		20,451			21,400
Deferred income taxes		51,934			57,236
Other assets		4,124			4,544
TOTAL ASSETS	$	404,006		$	417,725

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	21,467		$	20,516
Accrued compensation		11,505			11,888
Accrued employee benefits		6,634			6,217
Deferred revenue		15,796			14,662
Syndicated programs		2,799			3,436
Accrued income taxes		1,767			2,740
Other current liabilities		6,483			6,093
Current portion of long-term liabilities		239			382
TOTAL CURRENT LIABILITIES		66,690			65,934

Accrued employee benefits		87,823			90,176
Syndicated programs		4,740			5,527
Long-term notes payable to banks		21,360			41,305
Other long-term liabilities		9,558			8,595
Equity:
Preferred stock, $0.01 par - authorized 10,000,000 shares; no shares outstanding at June 24, 2012 and December 25, 2011		-			-
Common stock, $0.01 par:
Class C - authorized 10,000,000 shares; issued and outstanding: 3,264,000 shares at June 24, 2012 and December 25, 2011		33			33
Class B - authorized 120,000,000 shares; issued and outstanding: 7,147,815 shares at June 24, 2012 and 7,214,374 shares at December 25, 2011		66			66
Class A - authorized 170,000,000 shares; issued and outstanding: 43,375,341 shares at June 24, 2012 and 43,778,922 shares at December 25, 2011		434			438
Additional paid-in capital		254,831			257,552
Accumulated other comprehensive loss		(52,212	)		(52,982	)
Retained earnings (deficit)		9,519			(83	)
Total Journal Communications, Inc. shareholders' equity		212,671			205,024
Noncontrolling interest		1,164			1,164
TOTAL EQUITY		213,835			206,188
TOTAL LIABILITIES AND EQUITY	$	404,006		$	417,725

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

	Second Quarter Ended						Two Quarters Ended
	June 24, 2012			June 26, 2011			June 24, 2012			June 26, 2011
Revenue:
Broadcasting	$	54,542		$	46,083		$	98,916		$	88,192
Publishing		41,053			44,119			79,074			85,919
Corporate eliminations		(88	)		(100	)		(217	)		(148	)
Total revenue		95,507			90,102			177,773			173,963

Operating costs and expenses:
Broadcasting		22,970			22,069			45,396			44,004
Publishing		26,354			27,273			52,506			54,918
Corporate eliminations		(88	)		(100	)		(217	)		(148	)
Total operating costs and expenses		49,236			49,242			97,685			98,774

Selling and administrative expenses		32,811			29,369			60,888			57,690
Total operating costs and expenses and selling and administrative expenses		82,047			78,611			158,573			156,464

Operating earnings		13,460			11,491			19,200			17,499

Other income and (expense):
Interest income		6			20			11			38
Interest expense		(684	)		(928	)		(1,417	)		(2,008	)
Total other income and (expense)		(678	)		(908	)		(1,406	)		(1,970	)

Earnings from continuing operations before income taxes		12,782			10,583			17,794			15,529

Provision for income taxes		5,171			4,442			7,264			6,354

Earnings from continuing operations		7,611			6,141			10,530			9,175

Earnings from discontinued operations, net of $0, $0, $0 and $221 applicable income tax provision, respectively		-			-			-			341

Net earnings	$	7,611		$	6,141		$	10,530		$	9,516

Earnings per share:
Basic - Class A and B common stock:
Continuing operations	$	0.13		$	0.10		$	0.18		$	0.15
Discontinued operations		-			-			-			0.01
Net earnings	$	0.13		$	0.10		$	0.18		$	0.16

Diluted - Class A and B common stock:
Continuing operations	$	0.13		$	0.10		$	0.18		$	0.15
Discontinued operations		-			-			-			0.01
Net earnings	$	0.13		$	0.10		$	0.18		$	0.16

Basic and diluted - Class C common stock:
Continuing operations	$	0.28		$	0.24		$	0.46		$	0.43
Discontinued operations		-			-			-			0.01
Net earnings	$	0.28		$	0.24		$	0.46		$	0.44

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Statements of Comprehensive Income

(in thousands)

	Second Quarter Ended				Two Quarters Ended
	June 24, 2012		June 26, 2011		June 24, 2012		June 26, 2011

Net earnings	$	7,611	$	6,141	$	10,530	$	9,516

Other comprehensive income, net of tax:
Change in pension and postretirement, net of tax of $250, $128, $501 and $255, respectively		386		197		770		394

Comprehensive income	$	7,997	$	6,338	$	11,300	$	9,910

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Statement of Equity

For the Two Quarters Ended June 24, 2012

(in thousands, except per share amounts)

														Accumulated
											Additional			Other			Retained			Non-
	Preferred		Common Stock								Paid-in			Comprehensive			Earnings			controlling
	Stock		Class C		Class B			Class A			Capital			Loss			(Deficit)			Interests		Total

Balance at December 25, 2011	$	-	$	33	$	66		$	438		$	257,552		$	(52,982	)	$	(83	)	$	1,164	$	206,188

Net earnings																		2,919					2,919
Comprehensive income															384								384

Class C dividends declared ($0.142 per share)																		(464	)				(464	)
Issuance of shares:
Conversion of class B to class A						(2	)		2														-
Stock grants						3						15											18
Employee stock purchase plan												148											148
Shares purchased and retired									(6	)		(2,926	)										(2,932	)
Shares withheld from employees for tax withholding						(1	)					(507	)										(508	)
Stock-based compensation												278											278
Income tax benefits from vesting of restricted stock												255											255

Balance at March 25, 2012		-		33		66			434			254,815			(52,598	)		2,372			1,164		206,286

Net earnings																		7,611					7,611
Comprehensive income															386								386

Class C dividends declared ($0.142 per share)																		(464	)				(464	)
Issuance of shares:
Conversion of class B to class A						(1	)		1														-
Stock grants						1						309											310
Shares purchased and retired									(1	)		(632	)										(633	)
Shares withheld from employees for tax withholding												(8	)										(8	)
Stock-based compensation												350											350
Income tax benefits from vesting of restricted stock												(3	)										(3	)

Balance at June 24, 2012	$	-	$	33	$	66		$	434		$	254,831		$	(52,212	)	$	9,519		$	1,164	$	213,835

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Statement of Equity

For the Two Quarters Ended June 26, 2011

(in thousands, except per share amounts)

													Accumulated
										Additional			Other			Retained			Non-		Treasury
	Preferred		Common Stock							Paid-in			Comprehensive			Earnings			controlling		Stock,
	Stock		Class C		Class B			Class A		Capital			Loss			(Deficit)			Interests		at cost			Total

Balance at December 26, 2010	$	-	$	33	$	165		$	432	$	260,376		$	(32,295	)	$	87,767		$	1,164	$	(108,715	)	$	208,927

Net earnings																	3,375								3,375
Comprehensive income														197											197

Class C dividends declared ($0.142 per share)																	(464	)							(464	)
Issuance of shares:
Conversion of class B to class A						(11	)		11																-
Stock grants						3					17														20
Employee stock purchase plan											181														181
Shares withheld from employees for tax withholding						(1	)				(505	)													(506	)
Stock-based compensation											261						1								262
Income tax benefits from vesting of restricted stock											368														368

Balance at March 27, 2011		-		33		156			443		260,698			(32,098	)		90,679			1,164		(108,715	)		212,360

Net earnings																	6,141								6,141
Comprehensive income														197											197
Class C dividends declared ($0.142 per share)																	(464	)							(464	)
Issuance of shares:
Conversion of class B to class A						(4	)		4																-
Stock grants						1					432														433
Shares withheld from employees for tax withholding											(13	)													(13	)
Stock-based compensation											285														285

Balance at June 26, 2011	$	-	$	33	$	153		$	447	$	261,402		$	(31,901	)	$	96,356		$	1,164	$	(108,715	)	$	218,939

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

	Two Quarters Ended
	June 24, 2012			June 26, 2011
Cash flow from operating activities:
Net earnings	$	10,530		$	9,516
Less earnings from discontinued operations		-			341
Earnings from continuing operations		10,530			9,175
Adjustments for non-cash items:
Depreciation		10,665			10,788
Amortization		949			784
Provision for doubtful accounts		141			411
Deferred income taxes		5,613			5,962
Non-cash stock-based compensation		956			1,000
Net (gain) loss from disposal of assets		16			(238	)
Net changes in operating assets and liabilities, excluding effect of sales and acquisitions:
Receivables		1,291			4,121
Inventories		(1,070	)		(382	)
Accounts payable		951			(2,535	)
Other assets and liabilities		(2,828	)		(11,577	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		27,214			17,509

Cash flow from investing activities:
Capital expenditures for property and equipment		(5,134	)		(5,405	)
Proceeds from sales of assets		36			73
Proceeds from sale of business		484			745
NET CASH USED FOR INVESTING ACTIVITIES		(4,614	)		(4,587	)

Cash flow from financing activities:
Proceeds from long-term notes payable to banks		46,670			53,396
Payments on long-term notes payable to banks		(66,615	)		(67,001	)
Principal payments under capital lease obligations		(177	)		(171	)
Proceeds from issuance of common stock, net		134			163
Income tax benefits from vesting of restricted stock		289			430
Redemption of common stock, net		(3,068	)		-
NET CASH USED FOR FINANCING ACTIVITIES		(22,767	)		(13,183	)

Cash flow from discontinued operations:
Net operating activities		-			(223	)
Net investing activities		-			823
NET CASH PROVIDED BY DISCONTINUED OPERATIONS		-			600

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(167	)		339

Cash and cash equivalents:
Beginning of year		2,418			2,056
At June 24, 2012 and June 26, 2011	$	2,251		$	2,395

See accompanying notes to unaudited condensed consolidated financial statements

Index

JOURNAL COMMUNICATIONS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts)

1	BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by Journal Communications, Inc. and its wholly owned subsidiaries and a variable interest entity (VIE) for which we are the primary beneficiary in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect normal and recurring adjustments, which we believe to be necessary for a fair presentation. As permitted by these regulations, these statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles for annual financial statements. However, we believe that the disclosures are adequate to make the information presented not misleading. The gain on the sale of NorthStar Print Group Inc.’s (NorthStar) real estate holdings in the first quarter of 2011 has been reflected as discontinued operations in our condensed consolidated statements of operations. The balance sheet at December 25, 2011 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The operating results for the second quarter and two quarters ended June 24, 2012 are not necessarily indicative of the operating results that may be expected for the fiscal year ending December 30, 2012. You should read these unaudited condensed consolidated financial statements in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 25, 2011.

2	ACCOUNTING PERIODS

We report on a 52-53 week fiscal year ending on the last Sunday of December in each year. In addition, we have four quarterly reporting periods, each consisting of 13 weeks and ending on a Sunday, provided that once every six years, the fourth quarterly reporting period will be 14 weeks. The fourth quarterly reporting period in our 2012 fiscal year will consist of 14 weeks.

3	ACCOUNTING REVISIONS

Certain prior quarter amounts have been revised to conform to the proper presentation. These are primarily related to the allocation of employee benefit related expenses for our broadcasting business. These costs were previously reported in operating costs and expenses and are now correctly allocated between operating costs and expenses and selling and administrative expenses.

The following table sets forth operating costs and expenses and selling and administrative expenses for the first quarter of 2012 as previously reported and revised to conform to the proper presentation:

	March 25, 2012 As Revised			March 25, 2012 As Previously Reported
Operating costs and expenses:
Broadcasting	$	22,426		$	23,033
Publishing		26,152			26,152
Corporate eliminations		(129	)		(129	)
Total operating costs and expenses	$	48,449		$	49,056

Selling and administrative expenses	$	28,077		$	27,470

4	NEW ACCOUNTING STANDARDS

In September 2011, the Financial Accounting Standards Board (FASB) issued amended guidance for goodwill impairment. The guidance simplifies how entities test goodwill for impairment. The new guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is more likely than not, less than its carrying value. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012. There is not expected to be an impact on our consolidated financial statements.

In June 2011, the FASB issued amended guidance for comprehensive income. The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. Subsequently, in December 2011, the FASB issued its final standard to defer the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement. The other requirements contained in the new standard on comprehensive income must still be adopted by the FASB. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012 and opted to present the total of comprehensive income in two separate but consecutive statements.

Index

JOURNAL COMMUNICATIONS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts)

4	NEW ACCOUNTING STANDARDS continued

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS). The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS. The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted this guidance in the first quarter of 2012. There has been no material impact on our consolidated financial statements.

5	EARNINGS PER SHARE

Basic

We apply the two-class method for calculating and presenting our basic earnings per share. As noted in the FASB’s guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method:

Income (loss) from continuing operations (“net earnings (loss)”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period.

The remaining earnings, which may include earnings from discontinued operations (“undistributed earnings”), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed.

The remaining losses (“undistributed losses”) are allocated to the class A and B common stock. Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses. Losses from discontinued operations are allocated to class A and B shares and may be allocated to class C shares and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C shares from income from continuing operations.

The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock.

Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock. The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together.

In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings. Undistributed losses are allocated to only the class A and B common stock for the reason stated above.

Index

JOURNAL COMMUNICATIONS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts)

5	EARNINGS PER SHARE continued

The following table sets forth the computation of basic earnings per share under the two-class method:

	Second Quarter Ended				Two Quarters Ended
	June 24, 2012		June 26, 2011		June 24, 2012		June 26, 2011

Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
Earnings form continuing operations	$	7,611	$	6,141	$	10,530	$	9,175
Less dividends declared:
Class A and B		-		-		-		-
Class C		464		464		928		928
Non-vested restricted stock		-		-		-		-

Total undistributed earnings from continuing operations	$	7,147	$	5,677	$	9,602	$	8,247

Undistributed earnings from continuing operations:
Class A and B	$	6,670	$	5,269	$	8,946	$	7,650
Class C		435		335		581		487
Non-vested restricted stock		42		73		75		110
Total undistributed earnings from continuing operations	$	7,147	$	5,677	$	9,602	$	8,247

Numerator for basic earnings from continuing operations per class A and B common stock:
Dividends on class A and B	$	-	$	-	$	-	$	-
Class A and B undistributed earnings		6,670		5,269		8,946		7,650
Numerator for basic earnings from continuing operations per class A and B common stock	$	6,670	$	5,269	$	8,946	$	7,650

Numerator for basic earnings from continuing operations per class C common stock:
Dividends on class C	$	464	$	464	$	928	$	928
Class C undistributed earnings		435		335		581		487
Numerator for basic earnings from continuing operations per class C common stock	$	899	$	799	$	1,509	$	1,415

Denominator for basic earnings from continuing operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,023		51,318		50,190		51,222
Class C		3,264		3,264		3,264		3,264

Basic earnings per share from continuing operations:
Class A and B	$	0.13	$	0.10	$	0.18	$	0.15
Class C	$	0.28	$	0.24	$	0.46	$	0.43

Index

JOURNAL COMMUNICATIONS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts)

5	EARNINGS PER SHARE continued

	Second Quarter Ended				Two Quarters Ended
	June 24, 2012		June 26, 2011		June 24, 2012		June 26, 2011

Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock:

Total undistributed earnings from discontinued operations	$	-	$	-	$	-	$	341
Undistributed earnings from discontinued operations:
Class A and B	$	-	$	-	$	-	$	316
Class C		-		-		-		20
Non-vested restricted stock		-		-		-		5

Total undistributed earnings from discontinued operations	$	-	$	-	$	-	$	341


Denominator for basic earnings from discontinued operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,023		51,318		50,190		51,222
Class C		3,264		3,264		3,264		3,264


Basic earnings per share from discontinued operations:
Class A and B	$	-	$	-	$	-	$	0.01
Class C	$	-	$	-	$	-	$	0.01


Numerator for basic net earnings for each class of common stock:
Net earnings	$	7,611	$	6,141	$	10,530	$	9,516
Less dividends declared:
Class A and B		-		-		-		-
Class C		464		464		928		928
Non-vested restricted stock		-		-		-		-
Total undistributed net earnings	$	7,147	$	5,677	$	9,602	$	8,588

Undistributed net earnings:
Class A and B	$	6,670	$	5,269	$	8,946	$