MILWAUKEE & EVANSVILLE, Ind.--(BUSINESS WIRE)--Feb. 26, 2007--Journal Communications, Inc. (NYSE:JRN) and Q-Comm Corporation announced today that Q-Comm has acquired 100% of the stock of Journal Communications' telecommunications subsidiary, Norlight Telecommunications, Inc., for $185 million, subject to certain working capital and long-term liability adjustments. Net proceeds to Journal Communications, after taxes and transaction expenses, are expected to be approximately $125 - $130 million. In the short-term, Journal Communications will use the proceeds to reduce its obligations under its unsecured revolving credit facility. Journal Communications' after-tax gain on the sale -- which will be recorded in the first quarter 2007 -- is expected to approximate $60 million.
"We congratulate Al and John Cinelli on their acquisition of Norlight and we wish them well as they integrate the talented teams of two excellent organizations," said Steven J. Smith, chairman and chief executive officer of Journal Communications. "Additionally, we thank all of the Norlight employees for their years of hard work and dedication to both Norlight and Journal Communications."
Al Cinelli, chairman of the board of Q-Comm Corporation, commented, "We believe that the integration of our organization with Norlight will result in significant growth for both companies. We are particularly pleased to have all the talented employees of Norlight join our organization as Associates and fully participate in our future growth."
Morgan Stanley and Robert W. Baird & Co. advised Journal Communications on the transaction. Daniels & Associates, L.P. advised Q-Comm Corporation on the transaction.
Forward-looking Statements
This press release contains certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission.
About Norlight Telecommunications
Norlight Telecommunications, headquartered in Brookfield, Wisconsin, is a facilities-based communications company with over 30 years of experience providing network and IP&E services to wholesale and commercial customers in the upper Midwest. Norlight has a strong brand as the "Guardians of Data" and a reputation for customer satisfaction and for providing customized communication solutions to its customers. Norlight has regional sales offices in Green Bay and Madison, Wisconsin; Chicago, Illinois; Grand Rapids, Lansing and Plymouth, Michigan; Minneapolis/St. Paul, Minnesota; and Indianapolis, Indiana.
About Q-Comm Corporation
The operating subsidiaries of Q-Comm Corporation have a 35+ year track record of providing cutting-edge telecommunications services to the Midwest. Its holdings include a CLEC and a fiber-to-the-premise over-builder. The CLEC provides voice and data services in 15 markets. In 2006, the company launched its over-builder business in one Indiana community, with a bundled voice, video, data and security service offering. It has a second Indiana community under construction. The operating subsidiaries of Q-Comm Corporation have their principal offices in Evansville, Indiana and Overland Park, Kansas.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 75 community newspapers and shoppers in eight states. We own and operate 36 radio stations and nine television stations in 12 states and operate two television stations under local marketing agreements. Our interactive media assets include more than 75 online enterprises that are associated with our daily and community newspapers, television and radio stations. We also provide a wide range of commercial printing services -- including printing of publications, professional journals and documentation material -- and operate a direct marketing services business.
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http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5341706
CONTACT: Journal Communications, Inc.
Director of Investor Relations
Sara Leuchter Wilkins, 414-224-2633
swilkins@journalcommunications.com
or
Q-Comm Corporation
Corporate Communications Coordinator
Marianne Cox, 812-456-1243
mecox@qcommcorp.com
SOURCE: Journal Communications, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Journal Communications, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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