----

----

| For the transition period from    |   | to |   |
|----------------------------------------------------------------------|--------|----|--------|

| 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 |   | (I.R.S. Employer Identification No.) |
| or organization)                              |   |                                 |
| 333 W. State Street, Milwaukee, Wisconsin     |   | 53203                                |
| (Address of principal executive offices)      |   | (Zip Code)                           |

| (414) 224-2000                                     |
|----------------------------------------------------|
| Registrant's telephone number, including area code |

| Large Accelerated Filer £ | Accelerated Filer T | Non-accelerated Filer £ | Smaller reporting company £ |
|-----------------------------------------------|-------------------------------|----------------------------------------|-------------------------------------------------|

| Class                | Outstanding at May 2, 2011 |
|----------------------|----------------------------|
| Class A Common Stock | 44,379,310                 |
| Class B Common Stock | 7,600,264.282              |
| Class C Common Stock | 3,264,000                  |

----

----

----

JOU

|     |                       |                                                                                                                    | Page No. |
|----------|----------------------------|-------------------------------------------------------------------------------------------------------------------------|---------------|
|     |                       |                                                                                                                    |          |   |
| Part I.  | Financial Information |                                                                                                                    |          |
|     |                       |                                                                                                                    |          |   |
|     | Item 1.               | Financial Statements                                                                                                    |          |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Unaudited Consolidated Condensed Balance Sheets as of March 27, 2011 and December 26, 2010                              | 2             |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Unaudited Consolidated Condensed Statements of Operations for the First Quarter Ended March 27, 2011 and March 28, 2010 | 3             |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Unaudited Consolidated Condensed Statement of Equity for the First Quarter Ended March 27, 2011                         | 4             |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Unaudited Consolidated Condensed Statement of Equity for the First Quarter Ended March 28, 2010                         | 5             |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Unaudited Consolidated Condensed Statements of Cash Flows for the First Quarter Ended March 27, 2011 and March 28, 2010 | 6             |   |
|     |                       |                                                                                                                    |          |   |
|     |                       | Notes to the Unaudited Consolidated Condensed Financial Statements as of March 27, 2011                                 | 7             |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 2.               | Management's Discussion and Analysis of Financial Condition and Results of Operations                                   | 21            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 3.               | Quantitative and Qualitative Disclosure of Market Risk                                                                  | 31            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 4.               | Controls and Procedures                                                                                                 | 31            |   |
|     |                       |                                                                                                                    |          |   |
| Part II. | Other Information     |                                                                                                                    |          |
|     |                       |                                                                                                                    |          |   |
|     | Item 1.               | Legal Proceedings                                                                                                       | 31            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 1A.              | Risk Factors                                                                                                            | 31            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                                             | 32            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 3.               | Defaults Upon Senior Securities                                                                                         | 32            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 4.               | Reserved                                                                                                                | 32            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 5.               | Other Information                                                                                                       | 32            |   |
|     |                       |                                                                                                                    |          |   |
|     | Item 6.               | Exhibits                                                                                                                | 32            |   |

----

Index

JOU

|                                                                                                                                                                                   |   | March 27, 2011 |     |   | December 26, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|----------|--------|-----------------------------|--------|
| Assets                                                                                                                                                                                 |   |                     |     |   |                        |   |
| Current assets:                                                                                                                                                                        |   |                     |     |   |                        |   |
| Cash and cash equivalents                                                                                                                                                              |   | $                        | 2,049    |   |                        | $      | 2,056 |   |
| Investments of variable interest entity                                                                                                                                                |   |                     | 500      |   |                        |   | 500 |   |
| Receivables, net                                                                                                                                                                       |   |                     | 47,013   |   |                        |   | 55,309 |   |
| Inventories, net                                                                                                                                                                       |   |                     | 1,090    |   |                        |   | 1,035 |   |
| Prepaid expenses and other current assets                                                                                                                                              |   |                     | 6,876    |   |                        |   | 3,961 |   |
| Syndicated programs                                                                                                                                                                    |   |                     | 5,538    |   |                        |   | 7,361 |   |
| Deferred income taxes                                                                                                                                                                  |   |                     | 4,428    |   |                        |   | 4,809 |   |
| Total Current Assets                                                                                                                                                                   |   |                     | 67,494   |   |                        |   | 75,031 |   |
|                                                                                                                                                                                   |   |                     |     |   |                        |   |   |   |
| Property and equipment, at cost, less accumulated depreciation of $233,026 and $228,820                                                                                                |   |                     | 176,803  |   |                        |   | 179,725 |   |
| Syndicated programs                                                                                                                                                                    |   |                     | 3,490    |   |                        |   | 3,083 |   |
| Goodwill                                                                                                                                                                               |   |                     | 9,098    |   |                        |   | 9,098 |   |
| Broadcast licenses                                                                                                                                                                     |   |                     | 82,426   |   |                        |   | 82,426 |   |
| Other intangible assets, net                                                                                                                                                           |   |                     | 22,596   |   |                        |   | 22,988 |   |
| Deferred income taxes                                                                                                                                                                  |   |                     | 52,689   |   |                        |   | 54,077 |   |
| Other assets                                                                                                                                                                           |   |                     | 4,985    |   |                        |   | 5,342 |   |
| Total Assets                                                                                                                                                                           |   | $                        | 419,581  |   |                        | $      | 431,770 |   |
|                                                                                                                                                                                   |   |                     |     |   |                        |   |   |   |
| Liabilities And Equity                                                                                                                                                                 |   |                     |     |   |                        |   |   |   |
| Current liabilities:                                                                                                                                                                   |   |                     |     |   |                        |   |   |   |
| Accounts payable                                                                                                                                                                       |   | $                        | 21,936   |   |                        | $      | 22,895 |   |
| Accrued compensation                                                                                                                                                                   |   |                     | 7,463    |   |                        |   | 13,703 |   |
| Accrued employee benefits                                                                                                                                                              |   |                     | 5,707    |   |                        |   | 5,087 |   |
| Deferred revenue                                                                                                                                                                       |   |                     | 14,706   |   |                        |   | 13,899 |   |
| Syndicated programs                                                                                                                                                                    |   |                     | 5,897    |   |                        |   | 8,685 |   |
| Accrued income taxes                                                                                                                                                                   |   |                     | 486      |   |                        |   | 7,332 |   |
| Other current liabilities                                                                                                                                                              |   |                     | 8,018    |   |                        |   | 6,493 |   |
| Current portion of long-term liabilities                                                                                                                                               |   |                     | 559      |   |                        |   | 561 |   |
| Total Current Liabilities                                                                                                                                                              |   |                     | 64,772   |   |                        |   | 78,655 |   |
|                                                                                                                                                                                   |   |                     |     |   |                        |   |   |   |
| Accrued employee benefits                                                                                                                                                              |   |                     | 57,798   |   |                        |   | 58,534 |   |
| Syndicated programs                                                                                                                                                                    |   |                     | 5,342    |   |                        |   | 5,114 |   |
| Long-term notes payable to banks                                                                                                                                                       |   |                     | 72,575   |   |                        |   | 74,570 |   |
| Other long-term liabilities                                                                                                                                                            |   |                     | 6,734    |   |                        |   | 5,970 |   |
| Equity:                                                                                                                                                                                |   |                     |     |   |                        |   |   |   |
| Preferred stock, $0.01 par – authorized 10,000,000 shares; no shares outstanding at March 27, 2011 and December 26, 2010                                                         |   |                     | --       |   |                        |   | -- |   |
| Common stock, $0.01 par:                                                                                                                                                               |   |                     |     |   |                        |   |   |   |
| Class C – authorized 10,000,000 shares; issued and outstanding: 3,264,000 shares at March 27, 2011 and December 26, 2010                                                         |   |                     | 33       |   |                        |   | 33 |   |
| Class B – authorized 120,000,000 shares; issued and outstanding (excluding treasury stock): 7,706,443.282 shares at March 27, 2011 and 8,594,541.684 shares at December 26, 2010 |   |                     | 156      |   |                        |   | 165 |   |
| Class A – authorized 170,000,000 shares; issued and outstanding: 44,275,987 shares at March 27, 2011 and 43,196,321 shares at December 26, 2010                                  |   |                     | 443      |   |                        |   | 432 |   |
| Additional paid-in capital                                                                                                                                                             |   |                     | 260,698  |   |                        |   | 260,376 |   |
| Accumulated other comprehensive loss                                                                                                                                                   |   |                     | (32,098  | )      |                        |   | (32,295 | ) |
| Retained earnings                                                                                                                                                                      |   |                     | 90,679   |   |                        |   | 87,767 |   |
| Treasury stock, at cost (8,676,705 class B shares)                                                                                                                                     |   |                     | (108,715 | )      |                        |   | (108,715 | ) |
| Total Journal Communications, Inc. shareholders’ equity                                                                                                                          |   |                     | 211,196  |   |                        |   | 207,763 |   |
| Noncontrolling interest                                                                                                                                                                |   |                     | 1,164    |   |                        |   | 1,164 |   |
| Total Equity                                                                                                                                                                           |   |                     | 212,360  |   |                        |   | 208,927 |   |
| Total Liabilities And Equity                                                                                                                                                           |   | $                        | 419,581  |   |                        | $      | 431,770 |   |

----

Index

JOUR

|                                                                                                                |   | First Quarter Ended |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                                                                                                                |   |                          |   |   |   |   |
| Revenue:                                                                                                            |   |                          |   |   |   |   |
| Publishing                                                                                                          |   | $                             | 41,800 |   |   | $ | 44,552 |   |
| Broadcasting                                                                                                        |   |                          | 42,109 |   |   |   | 42,605 |   |
| Corporate eliminations                                                                                              |   |                          | (48    | ) |   |   | (220 | ) |
| Total revenue                                                                                                       |   |                          | 83,861 |   |   |   | 86,937 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Operating costs and expenses:                                                                                       |   |                          |   |   |   |   |   |   |
| Publishing                                                                                                          |   |                          | 27,645 |   |   |   | 29,134 |   |
| Broadcasting                                                                                                        |   |                          | 21,935 |   |   |   | 21,596 |   |
| Corporate eliminations                                                                                              |   |                          | (48    | ) |   |   | (220 | ) |
| Total operating costs and expenses                                                                                  |   |                          | 49,532 |   |   |   | 50,510 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Selling and administrative expenses                                                                                 |   |                          | 28,321 |   |   |   | 27,067 |   |
| Total operating costs and expenses and selling and administrative expenses                                          |   |                          | 77,853 |   |   |   | 77,577 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Operating earnings                                                                                                  |   |                          | 6,008  |   |   |   | 9,360 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Other income and (expense):                                                                                         |   |                          |   |   |   |   |   |   |
| Interest income                                                                                                     |   |                          | 18     |   |   |   | 8 |   |
| Interest expense                                                                                                    |   |                          | (1,080 | ) |   |   | (562 | ) |
| Total other income and (expense)                                                                                    |   |                          | (1,062 | ) |   |   | (554 | ) |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Earnings from continuing operations before income taxes                                                             |   |                          | 4,946  |   |   |   | 8,806 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Provision for income taxes                                                                                          |   |                          | 1,912  |   |   |   | 3,546 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Earnings from continuing operations                                                                                 |   |                          | 3,034  |   |   |   | 5,260 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Earnings from discontinued operations, net of $221 and $(4) applicable income tax provision (benefit), respectively |   |                          | 341    |   |   |   | 43 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Net earnings                                                                                                        |   |                          | 3,375  |   |   |   | 5,303 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Earnings per share:                                                                                                 |   |                          |   |   |   |   |   |   |
| Basic – Class A and B common stock:                                                                           |   |                          |   |   |   |   |   |   |
| Continuing operations                                                                                               |   | $                             | 0.05   |   |   | $ | 0.09 |   |
| Discontinued operations                                                                                             |   |                          | --     |   |   |   | -- |   |
| Net earnings                                                                                                        |   | $                             | 0.05   |   |   | $ | 0.09 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Diluted – Class A and B common stock:                                                                         |   |                          |   |   |   |   |   |   |
| Continuing operations                                                                                               |   | $                             | 0.05   |   |   | $ | 0.09 |   |
| Discontinued operations                                                                                             |   |                          | --     |   |   |   | -- |   |
| Net earnings                                                                                                        |   | $                             | 0.05   |   |   | $ | 0.09 |   |
|                                                                                                                |   |                          |   |   |   |   |   |   |
| Basic and diluted – Class C common stock:                                                                     |   |                          |   |   |   |   |   |   |
| Continuing operations                                                                                               |   | $                             | 0.19   |   |   | $ | 0.23 |   |
| Discontinued operations                                                                                             |   |                          | --     |   |   |   | -- |   |
| Net earnings                                                                                                        |   | $                             | 0.19   |   |   | $ | 0.23 |   |

----

Index

Jour

|                                                               |   | Preferred |   |   | Common Stock |   |   | Additional Paid-in- |   |   | Accumulated Other Comprehensive |   |   | Retained |   |   | Noncontrolling |   |    | Treasury Stock, |   |   |      |   |
|--------------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|--------|---------------------|--------|--------|---------------------------------|--------|--------|----------|--------|--------|----------------|--------|---------|-----------------|--------|--------|-----------|--------|
|                                                               |   | Stock     |   |   | Class C |   |   | Class B        |   |   | Class A                    |   |   | Capital  |   |   | Loss           |   |    | Earnings        |   |   | 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 |   |
| Change in pension and postretirement (net of deferred tax of $127) |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   |    |            |   |   | 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 non-vested restricted stock    |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   | 368     |            |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 368 |   |
|                                                               |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   |    |            |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 27, 2011                                          |   | $         | -      |   |         | $      | 33     |                |   | $      | 156                             |   |   | $        | 443    |   |           | $      | 260,698 |            |   | $      | (32,098   | )      |   | $ | 90,679 |   |   | $ | 1,164 |   |   | $ | (108,715 | ) |   | $ | 212,360 |   |

----

Index

Journ

|                                                               |   | Preferred |   |   | Common Stock |   |   | Additional Paid-in- |   |   | Accumulated Other Comprehensive |   |   | Retained |   |   | Noncontrolling |   |    | Treasury Stock, |   |   |      |   |
|--------------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|--------|---------------------|--------|--------|---------------------------------|--------|--------|----------|--------|--------|----------------|--------|---------|-----------------|--------|--------|-----------|--------|
|                                                               |   | Stock     |   |   | Class C |   |   | Class B        |   |   | Class A                    |   |   | Capital  |   |   | Loss           |   |    | Earnings        |   |   | 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 |   |
| Change in pension and postretirement (net of deferred tax of $127) |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   |    |            |   |   | 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 non-vested restricted stock    |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   | 368     |            |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 368 |   |
|                                                               |   |      |   |   |         |   |   |                |   |   |                            |   |   |     |   |   |           |   |    |            |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 27, 2011                                          |   | $         | -      |   |         | $      | 33     |                |   | $      | 156                             |   |   | $        | 443    |   |           | $      | 260,698 |            |   | $      | (32,098   | )      |   | $ | 90,679 |   |   | $ | 1,164 |   |   | $ | (108,715 | ) |   | $ | 212,360 |   |

----

Index

JOUR

|                                                                                         |   | First Quarter Ended |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                         |   | March 27, 2011      |    |   | March 28, 2010 |   |
|                                                                                         |   |                          |    |   |   |   |
| Cash flow from operating activities:                                                         |   |                          |    |   |   |   |
| Net earnings                                                                                 |   | $                             | 3,375   |   |   | $ | 5,303 |   |
| Less earnings from discontinued operations                                                   |   |                          | 341     |   |   |   | 43 |   |
| Earnings from continuing operations                                                          |   |                          | 3,034   |   |   |   | 5,260 |   |
| Adjustments for non-cash items:                                                              |   |                          |    |   |   |   |   |   |
| Depreciation                                                                                 |   |                          | 5,352   |   |   |   | 5,732 |   |
| Amortization                                                                                 |   |                          | 392     |   |   |   | 492 |   |
| Provision for doubtful accounts                                                              |   |                          | 260     |   |   |   | 338 |   |
| Deferred income taxes                                                                        |   |                          | 1,964   |   |   |   | 2,759 |   |
| Non-cash stock-based compensation                                                            |   |                          | 281     |   |   |   | 299 |   |
| Net (gain) loss from disposal of assets                                                      |   |                          | (50     | ) |   |   | 83 |   |
| Net changes in operating assets and liabilities, excluding effect of sales and acquisitions: |   |                          |    |   |   |   |   |   |
| Receivables                                                                                  |   |                          | 8,036   |   |   |   | 7,602 |   |
| Inventories                                                                                  |   |                          | (55     | ) |   |   | 133 |   |
| Accounts payable                                                                             |   |                          | (959    | ) |   |   | (977 | ) |
| Other assets and liabilities                                                                 |   |                          | (14,797 | ) |   |   | (5,473 | ) |
| Net Cash Provided By Operating Activities                                                    |   |                          | 3,458   |   |   |   | 16,248 |   |
|                                                                                         |   |                          |    |   |   |   |   |   |
| Cash flow from investing activities:                                                         |   |                          |    |   |   |   |   |   |
| Capital expenditures for property and equipment                                              |   |                          | (2,656  | ) |   |   | (1,790 | ) |
| Proceeds from sales of assets                                                                |   |                          | 64      |   |   |   | 2 |   |
| Proceeds from sale of business                                                               |   |                          | 16      |   |   |   | 6 |   |
| Net Cash Used For Investing Activities                                                       |   |                          | (2,576  | ) |   |   | (1,782 | ) |
|                                                                                         |   |                          |    |   |   |   |   |   |
| Cash flow from financing activities:                                                         |   |                          |    |   |   |   |   |   |
| Proceeds from long-term notes payable to banks                                               |   |                          | 34,730  |   |   |   | 26,980 |   |
| Payments on long-term notes payable to banks                                                 |   |                          | (36,725 | ) |   |   | (43,695 | ) |
| Principal payments under capital lease obligations                                           |   |                          | (86     | ) |   |   | (115 | ) |
| Proceeds from issuance of common stock                                                       |   |                          | 163     |   |   |   | 146 |   |
| Income tax benefits from vesting of non-vested restricted stock                              |   |                          | 430     |   |   |   | 95 |   |
| Net Cash Used For Financing Activties                                                        |   |                          | (1,488  | ) |   |   | (16,589 | ) |
|                                                                                         |   |                          |    |   |   |   |   |   |
| Cash from discontinued operations:                                                           |   |                          |    |   |   |   |   |   |
| Net operating activities of discontinued operations                                          |   |                          | (223    | ) |   |   | 1,361 |   |
| Net investing activities of discontinued operations                                          |   |                          | 822     |   |   |   | (57 | ) |
| Net Cash Provided by Discontinued Operations                                                 |   |                          | 599     |   |   |   | 1,304 |   |
|                                                                                         |   |                          |    |   |   |   |   |   |
| Net Decrease In Cash And Cash Equivalents                                                    |   |                          | (7      | ) |   |   | (819 | ) |
|                                                                                         |   |                          |    |   |   |   |   |   |
| Cash and cash equivalents:                                                                   |   |                          |    |   |   |   |   |   |
| Beginning of year                                                                            |   |                          | 2,056   |   |   |   | 3,369 |   |
| At March 27, 2011 and March 28, 2010                                                         |   | $                             | 2,049   |   |   | $ | 2,550 |   |

----

Index

JOU

| 1 | BASIS OF PRESENTATION |
|---|-----------------------|

| 2 | ACCOUNTING PERIODS |
|---|--------------------|

| 3 | NEW ACCOUNTING STANDARDS |
|---|--------------------------|

----

Index

| 3 | NEW ACCOUNTING STANDARDS continued |
|---|------------------------------------|

| 4 | MULTIPLE-DELIVERABLE REVENUE ARRANGEMENTS |
|---|-------------------------------------------|

| 5 | EARNINGS PER SHARE |
|---|--------------------|

|   | (a) | 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | 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. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | 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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | 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. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 5 | EARNINGS PER SHARE continued |
|---|------------------------------|

|                                                                                                                    |   | First Quarter Ended |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                    |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                                                                                                                    |   |                          |   |   |   |   |
| Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock: |   |                          |   |   |   |   |
| Earnings from continuing operations                                                                                     |   | $                             | 3,034  |   |   | $ | 5,260 |   |
| Less dividends declared or accrued:                                                                                     |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                           |   |                          | --     |   |   |   | -- |   |
| Class C                                                                                                                 |   |                          | 464    |   |   |   | 464 |   |
| Non-vested restricted stock                                                                                             |   |                          | --     |   |   |   | -- |   |
| Total undistributed earnings from continuing operations                                                                 |   | $                             | 2,570  |   |   | $ | 4,796 |   |
|                                                                                                                    |   |                          |   |   |   |   |   |   |
| Class A and B undistributed earnings from continuing operations                                                         |   | $                             | 2,383  |   |   | $ | 4,428 |   |
| Class C undistributed earnings from continuing operations                                                               |   |                          | 152    |   |   |   | 286 |   |
| Non-vested restricted stock undistributed earnings from continuing operations                                           |   |                          | 35     |   |   |   | 82 |   |
| Total undistributed earnings from continuing operations                                                                 |   | $                             | 2,570  |   |   | $ | 4,796 |   |
|                                                                                                                    |   |                          |   |   |   |   |   |   |
| 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                                                                                    |   |                          | 2,383  |   |   |   | 4,428 |   |
| Numerator for basic earnings from continuing operations per class A and B common stock                                  |   | $                             | 2,383  |   |   | $ | 4,428 |   |
|                                                                                                                    |   |                          |   |   |   |   |   |   |
| Numerator for basic earnings from continuing operations per class C common stock:                                       |   |                          |   |   |   |   |   |   |
| Dividends accrued on class C                                                                                            |   | $                             | 464    |   |   | $ | 464 |   |
| Class C undistributed earnings                                                                                          |   |                          | 152    |   |   |   | 286 |   |
| Numerator for basic earnings from continuing operations per class C common stock                                        |   | $                             | 616    |   |   | $ | 750 |   |
|                                                                                                                    |   |                          |   |   |   |   |   |   |
| Denominator for basic earnings from continuing operations for each class of common stock:                               |   |                          |   |   |   |   |   |   |
| Weighted average shares outstanding - Class A and B                                                                     |   |                          | 51,126 |   |   |   | 50,533 |   |
| Weighted average shares outstanding - Class C                                                                           |   |                          | 3,264  |   |   |   | 3,264 |   |
|                                                                                                                    |   |                          |   |   |   |   |   |   |
| Basic earnings per share from continuing operations                                                                     |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                           |   | $                             | 0.05   |   |   | $ | 0.09 |   |
| Class C                                                                                                                 |   | $                             | 0.19   |   |   | $ | 0.23 |   |

----

Index

| 5 | EARNINGS PER SHARE continued |
|---|------------------------------|

|                                                                                                                      |   | First Quarter Ended |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                      |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                                                                                                                      |   |                          |   |   |   |   |
| 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    |   |   | $ | 43 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Undistributed earnings from discontinued operations:                                                                      |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                             |   | $                             | 316    |   |   | $ | 40 |   |
| Class C                                                                                                                   |   |                          | 20     |   |   |   | 3 |   |
| Non-vested restricted stock                                                                                               |   |                          | 5      |   |   |   | -- |   |
| Total undistributed earnings from discontinued operations                                                                 |   | $                             | 341    |   |   | $ | 43 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Denominator for basic earnings from discontinued operations for each class of common stock:                               |   |                          |   |   |   |   |   |   |
| Weighted average shares outstanding - Class A and B                                                                       |   |                          | 51,126 |   |   |   | 50,533 |   |
| Weighted average shares outstanding - Class C                                                                             |   |                          | 3,264  |   |   |   | 3,264 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Basic earnings per share from discontinued operations                                                                     |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                             |   | $                             | --     |   |   | $ | -- |   |
| Class C                                                                                                                   |   | $                             | --     |   |   | $ | -- |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Numerator for basic net earnings for each class of common stock:                                                          |   |                          |   |   |   |   |   |   |
| Net earnings                                                                                                              |   | $                             | 3,375  |   |   | $ | 5,303 |   |
| Less dividends declared or accrued:                                                                                       |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                             |   |                          | --     |   |   |   | -- |   |
| Class C                                                                                                                   |   |                          | 464    |   |   |   | 464 |   |
| Non-vested restricted stock                                                                                               |   |                          | --     |   |   |   | -- |   |
| Total undistributed net earnings                                                                                          |   | $                             | 2,911  |   |   | $ | 4,839 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Undistributed net earnings:                                                                                               |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                             |   | $                             | 2,699  |   |   | $ | 4,468 |   |
| Class C                                                                                                                   |   |                          | 172    |   |   |   | 289 |   |
| Non-vested restricted stock                                                                                               |   |                          | 40     |   |   |   | 82 |   |
| Total undistributed net earnings                                                                                          |   | $                             | 2,911  |   |   | $ | 4,839 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Numerator for basic net earnings per class A and B common stock:                                                          |   |                          |   |   |   |   |   |   |
| Dividends declared on class A and B                                                                                       |   | $                             | --     |   |   | $ | -- |   |
| Class A and B undistributed net earnings                                                                                  |   |                          | 2,699  |   |   |   | 4,468 |   |
| Numerator for basic net earnings per class A and B common stock                                                           |   | $                             | 2,699  |   |   | $ | 4,468 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Numerator for basic net earnings per class C common stock:                                                                |   |                          |   |   |   |   |   |   |
| Dividends accrued on class C                                                                                              |   | $                             | 464    |   |   | $ | 464 |   |
| Class C undistributed net earnings                                                                                        |   |                          | 172    |   |   |   | 289 |   |
| Numerator for basic net earnings per class C common stock                                                                 |   | $                             | 636    |   |   | $ | 753 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Denominator for basic net earnings for each class of common stock:                                                        |   |                          |   |   |   |   |   |   |
| Weighted average shares outstanding - Class A and B                                                                       |   |                          | 51,126 |   |   |   | 50,533 |   |
| Weighted average shares outstanding - Class C                                                                             |   |                          | 3,264  |   |   |   | 3,264 |   |
|                                                                                                                      |   |                          |   |   |   |   |   |   |
| Basic net earnings per share:                                                                                             |   |                          |   |   |   |   |   |   |
| Class A and B                                                                                                             |   | $                             | 0.05   |   |   | $ | 0.09 |   |
| Class C                                                                                                                   |   | $                             | 0.19   |   |   | $ | 0.23 |   |

----

Index

| 5 | EARNINGS PER SHARE continued |
|---|------------------------------|

|                                                      |   | First Quarter Ended |   |
|-----------------------------------------------------------|--------|-------------------------------|--------|
|                                                      |   | March 27, 2011      |   |   | March 28, 2010 |   |
| Numerator for diluted net earnings per share:             |   |                          |   |   |   |   |
| Dividends on class A and B common stock                   |   | $                             | --     |   |   | $ | -- |   |
| Total undistributed earnings from continuing operations   |   |                          | 2,383  |   |   |   | 4,428 |   |
| Total undistributed earnings from discontinued operations |   |                          | 316    |   |   |   | 40 |   |
| Net earnings                                              |   | $                             | 2,699  |   |   | $ | 4,468 |   |
|                                                      |   |                          |   |   |   |   |   |   |
| Denominator for diluted net earnings per share:           |   |                          |   |   |   |   |   |   |
| Weighted average shares outstanding - class A and B       |   |                          | 51,126 |   |   |   | 50,533 |   |
|                                                      |   |                          |   |   |   |   |   |   |
| Diluted earnings per share:                               |   |                          |   |   |   |   |   |   |
| Continuing operations                                     |   | $                             | 0.05   |   |   | $ | 0.09 |   |
| Discontinued operations                                   |   |                          | --     |   |   |   | -- |   |
| Net earnings                                              |   | $                             | 0.05   |   |   | $ | 0.09 |   |

| 6 | COMPREHENSIVE INCOME |
|---|----------------------|

|                                               |   | First Quarter Ended |   |
|----------------------------------------------------|--------|-------------------------------|--------|
|                                               |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                                               |   |                          |   |   |   |   |
| Net earnings                                       |   | $                             | 3,375  |   |   | $ | 5,303 |   |
| Change in pension and post-retirement (net of tax) |   |                          | 197    |   |   |   | 441 |   |
| Comprehensive income                               |   | $                             | 3,572  |   |   | $ | 5,744 |   |

| 7 | VARIABLE INTEREST ENTITY |
|---|--------------------------|

----

Index

| 8 | INVENTORIES |
|---|-------------|

|                      |   | March 27, 2011 |   |   | December 26, 2010 |   |
|---------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                      |   |                     |   |   |                        |   |
| Paper and supplies        |   | $                        | 1,093  |   |                        | $      | 1,043 |   |
| Work in process           |   |                     | 41     |   |                        |   | 36 |   |
| Less obsolescence reserve |   |                     | (44    | )      |                        |   | (44 | ) |
| Inventories, net          |   | $                        | 1,090  |   |                        | $      | 1,035 |   |

| 9 | RECEIVABLES |
|---|-------------|

| 10 | GOODWILL AND OTHER INTANGIBLE ASSETS |
|----|--------------------------------------|

----

Index

| 10 | GOODWILL AND OTHER INTANGIBLE ASSETS continued |
|----|------------------------------------------------|

|                           |   | Gross    |   |   |         |   |    | Net      |   |
|--------------------------------|--------|----------|--------|--------|--------------|--------|---------|----------|--------|
|                           |   | Carrying |   |   | Accumulated  |   |    | Carrying |   |
|                           |   | Amount   |   |   | Amortization |   |    | Amount   |   |
| March 27, 2011                 |   |     |   |   |         |   |    |     |   |
| Network affiliation agreements |   | $        | 26,930 |   |         | $      | (7,329  | )        |   | $ | 19,601 |   |
| Customer lists                 |   |     | 6,794  |   |         |   | (5,435  | )        |   |   | 1,359 |   |
| Non-compete agreements         |   |     | 10,410 |   |         |   | (10,372 | )        |   |   | 38 |   |
| Other                          |   |     | 3,896  |   |         |   | (2,298  | )        |   |   | 1,598 |   |
| Total                          |   | $        | 48,030 |   |         | $      | (25,434 | )        |   | $ | 22,596 |   |
|                           |   |     |   |   |         |   |    |     |   |   |   |   |
| December 26, 2010              |   |     |   |   |         |   |    |     |   |   |   |   |
| Network affiliation agreements |   | $        | 26,930 |   |         | $      | (7,062  | )        |   | $ | 19,868 |   |
| Customer lists                 |   |     | 6,794  |   |         |   | (5,353  | )        |   |   | 1,441 |   |
| Non-compete agreements         |   |     | 10,435 |   |         |   | (10,392 | )        |   |   | 43 |   |
| Other                          |   |     | 3,896  |   |         |   | (2,260  | )        |   |   | 1,636 |   |
| Total                          |   | $        | 48,055 |   |         | $      | (25,067 | )        |   | $ | 22,988 |   |

| 11 | WORKFORCE REDUCTIONS AND BUSINESS IMPROVEMENTS |
|----|------------------------------------------------|

|                              |   | Balance as of December 26, 2010 |   |   | Charge for Separation Benefits |   |   | Payments for Separation Benefits |   |   | Balance as of March 27, 2011 |   |
|-----------------------------------|--------|--------------------------------------|--------|--------|--------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------|--------|
|                              |   |                                 |   |   |                           |   |   |                             |   |   |                              |   |
| Daily newspaper                   |   | $                                    | 1,365  |   |                           | $      | (4     | )                                |   | $      | (268                              | )      |   | $ | 1,093 |   |
| Community newspapers and shoppers |   |                                 | 72     |   |                           |   | 15     |                             |   |   | (46                               | )      |   |   | 41 |   |
| Total                             |   | $                                    | 1,437  |   |                           | $      | 11     |                             |   | $      | (314                              | )      |   | $ | 1,134 |   |

----

Index

| 12 | INCOME TAXES |
|----|--------------|

| 13 | GUARANTEES |
|----|------------|

| 14 | EMPLOYEE BENEFIT PLANS |
|----|------------------------|

|                                                                                                                      |   | Pension Benefits         |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                      |   | First Quarter Ended |   |
|                                                                                                                      |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                                                                                                                      |   |                          |   |   |   |   |
| Service cost                                                                                                              |   | $                             | --     |   |   | $ | -- |   |
| Interest cost                                                                                                             |   |                          | 1,963  |   |   |   | 2,085 |   |
| Expected return on plan assets                                                                                            |   |                          | (2,399 | ) |   |   | (2,571 | ) |
| Amortization of:                                                                                                          |   |                          |   |   |   |   |   |   |
| Unrecognized prior service cost                                                                                           |   |                          | (3     | ) |   |   | (41 | ) |
| Unrecognized net loss                                                                                                     |   |                          | 245    |   |   |   | 680 |   |
| Net periodic benefit (income) cost included in total operating costs and expenses and selling and administrative expenses |   | $                             | (194   | ) |   | $ | 153 |   |

----

Index

| 14 | EMPLOYEE BENEFIT PLANS continued |
|----|----------------------------------|

|                                                                                                             |   | Other Postretirement Benefits |   |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                             |   | First Quarter Ended           |   |
|                                                                                                             |   | March 27, 2011                |   |   | March 28, 2010 |   |
|                                                                                                             |   |                                    |   |   |   |   |
| Service cost                                                                                                     |   | $                                       | 13     |   |   | $ | 21 |   |
| Interest cost                                                                                                    |   |                                    | 207    |   |   |   | 238 |   |
| Amortization of:                                                                                                 |   |                                    |   |   |   |   |   |   |
| Unrecognized prior service cost                                                                                  |   |                                    | (55    | ) |   |   | (55 | ) |
| Unrecognized net transition obligation                                                                           |   |                                    | 137    |   |   |   | 137 |   |
| Net periodic benefit cost included in total operating costs and expenses and selling and administrative expenses |   | $                                       | 302    |   |   | $ | 341 |   |

| 15 | NOTES PAYABLE TO BANKS |
|----|------------------------|

----

Index

| 15 | NOTES PAYABLE TO BANKS continued |
|----|----------------------------------|

|   | · | A consolidated funded debt ratio of not greater than 3.50-to-1, as determined for the four fiscal quarter period preceding the date of determination. This ratio compares, for any period, our funded debt to our consolidated EBITDA, defined in the secured credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals and non-cash charges. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A minimum interest coverage ratio of not less than 3-to-1, as determined for the four fiscal quarter period preceding the date of determination. This ratio compares, for any period, our consolidated EBITDA, defined in the secured credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals and non-cash charges, to our interest expense. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16 | STOCK-BASED COMPENSATION |
|----|--------------------------|

----

Index

| 16 | STOCK-BASED COMPENSATION continued |
|----|------------------------------------|

|                            |   | Shares |     |   | Weighted Average Fair Value |   |
|---------------------------------|--------|--------|----------|--------|-----------------------------|--------|
|                            |   |   |     |   |                        |   |
| Non-vested at December 26, 2010 |   |   | 777,872  |   |                        | $      | 2.69 |   |
| Granted                         |   |   | 246,980  |   |                        |   | 4.36 |   |
| Vested                          |   |   | (304,528 | )      |                        |   | 2.61 |   |
| Forfeited                       |   |   | (3,400   | )      |                        |   | 5.63 |   |
| Non-vested at March 27, 2011    |   |   | 716,924  |   |                        |   | 3.83 |   |

|                                          |   | SARs   |      |   | Weighted Average Exercise Price |   |   | Weighted Average Contractual Term Remaining (years) |   |
|-----------------------------------------------|--------|--------|-----------|--------|---------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                          |   |   |      |   |                            |   |   |                                                |   |
| Outstanding at December 26, 2010              |   |   | 1,083,207 |   |                            | $      | 10.71  |                                                |   |   | 6.6 |   |
|                                          |   |   |      |   |                            |   |   |                                                |   |   |   |   |
| Exercisable at December 26, 2010              |   |   | 909,527   |   |                            |   | 11.21  |                                                |   |   | 6.5 |   |
|                                          |   |   |      |   |                            |   |   |                                                |   |   |   |   |
| Outstanding and exercisable at March 27, 2011 |   |   | 1,083,207 |   |                            |   | 10.71  |                                                |   |   | 6.4 |   |

----

Index

| 16 | STOCK-BASED COMPENSATION continued |
|----|------------------------------------|

|                                             |   | Options |   |   | Weighted Average Exercise Price |   |   | Weighted Average Contractual Term Remaining (years) |   |
|--------------------------------------------------|--------|---------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                             |   |    |   |   |                            |   |   |                                                |   |
| Outstanding and exercisable at December 26, 2010 |   |    | 26,500 |   |                            | $      | 18.06  |                                                |   |   | 0.3 |   |
| Expired                                          |   |    | (6,500 | )      |                            |   | 19.95  |                                                |   |   | -- |   |
| Outstanding and exercisable at March 27, 2011    |   |    | 20,000 |   |                            |   | 17.74  |                                                |   |   | 0.1 |   |

| 17 | DISCONTINUED OPERATIONS |
|----|-------------------------|

|                         |   | First Quarter Ended |   |
|------------------------------|--------|-------------------------------|--------|
|                         |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                         |   |                          |   |   |   |   |
| Revenue                      |   | $                             | --     |   |   | $ | -- |   |
| Earnings before income taxes |   |                          | 562    |   |   |   | -- |   |

----

Index

| 17 | DISCONTINUED OPERATIONS continued |
|----|-----------------------------------|

|                     |   | First Quarter Ended |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                     |   |                          |   |   |   |   |
| Revenue                  |   | $                             | --     |   |   | $ | 2,144 |   |
| Loss before income taxes |   |                          | --     |   |   |   | (687 | ) |

|                         |   | First Quarter Ended |   |
|------------------------------|--------|-------------------------------|--------|
|                         |   | March 27, 2011      |   |   | March 28, 2010 |   |
|                         |   |                          |   |   |   |   |
| Revenue                      |   | $                             | --     |   |   | $ | 11,635 |   |
| Earnings before income taxes |   |                          | --     |   |   |   | 726 |   |

----

Index

| 18 | SEGMENT REPORTING |
|----|-------------------|

|                                    |   | First Quarter Ended |    |
|-----------------------------------------|--------|-------------------------------|---------|
|                                    |   | March 27, 2011      |    |   | March 28, 2010 |   |
| Revenue                                 |   |                          |    |   |   |   |
| Publishing                              |   | $                             | 41,800  |   |   | $ | 44,552 |   |
| Broadcasting                            |   |                          | 42,109  |   |   |   | 42,605 |   |
| Corporate eliminations                  |   |                          | (48     | ) |   |   | (220 | ) |
|                                    |   | $                             | 83,861  |   |   | $ | 86,937 |   |
|                                    |   |                          |    |   |   |   |   |   |
| Operating earnings (loss)               |   |                          |    |   |   |   |   |   |
| Publishing                              |   | $                             | 1,825   |   |   | $ | 3,389 |   |
| Broadcasting                            |   |                          | 5,975   |   |   |   | 7,719 |   |
| Corporate                               |   |                          | (1,792  | ) |   |   | (1,748 | ) |
|                                    |   | $                             | 6,008   |   |   | $ | 9,360 |   |
|                                    |   |                          |    |   |   |   |   |   |
| Depreciation and amortization           |   |                          |    |   |   |   |   |   |
| Publishing                              |   | $                             | 2,632   |   |   | $ | 2,898 |   |
| Broadcasting                            |   |                          | 2,966   |   |   |   | 3,204 |   |
| Corporate                               |   |                          | 146     |   |   |   | 122 |   |
|                                    |   | $                             | 5,744   |   |   | $ | 6,224 |   |
|                                    |   |                          |    |   |   |   |   |   |
| Capital expenditures                    |   |                          |    |   |   |   |   |   |
| Publishing                              |   | $                             | 366     |   |   | $ | 412 |   |
| Broadcasting                            |   |                          | 2,140   |   |   |   | 1,371 |   |
| Corporate                               |   |                          | 150     |   |   |   | 7 |   |
|                                    |   | $                             | 2,656   |   |   | $ | 1,790 |   |
|                                    |   |                          |    |   |   |   |   |   |
|                                    |   | March 27, 2011      |    |   | December 26, 2010 |   |
|                                    |   |                          |    |   |   |   |   |   |
| Identifiable total assets               |   |                          |    |   |   |   |   |   |
| Publishing                              |   | $                             | 119,030 |   |   | $ | 125,870 |   |
| Broadcasting                            |   |                          | 269,400 |   |   |   | 275,985 |   |
| Corporate & discontinued operations |   |                          | 31,151  |   |   |   | 29,915 |   |
|                                    |   | $                             | 419,581 |   |   | $ | 431,770 |   |

----

Index

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

|   | · | changes in advertising demand or the buying strategies of advertisers or the migration of advertising to the internet; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in newsprint prices and other costs of materials; |
|--------|--------|-----------------------------------------------------------|

|   | · | changes in federal or state laws and regulations or their interpretations (including changes in regulations governing the number and types of broadcast and cable system properties, newspapers and licenses that a person may control in a given market or in total or the changes in spectrum allocation policies); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in legislation or customs relating to the collection, management and aggregation and use of consumer information through telemarketing and electronic communication efforts; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the availability of quality broadcast programming at competitive prices; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | changes in network affiliation agreements, including increased sharing of retransmission revenue; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | quality and rating of network over-the-air broadcast programs, including programs changing networks and changing competitive dynamics regarding how and when programs are made available to our viewers; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | effects of the loss of commercial inventory resulting from uninterrupted television news coverage and potential advertising cancellations due to war or terrorist acts; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | effects of the rapidly changing nature of the publishing, broadcasting and printing industries, including general business issues, competitive issues and the introduction of new technologies; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an other than temporary decline in operating results and enterprise value that could lead to further non-cash impairment charges due to the impairment of goodwill, broadcast licenses, other intangible assets and property, plant and equipment; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of changing economic and financial market conditions and interest rates on our liquidity, on the value of our pension plan assets and on the availability of capital; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to remain in compliance with the terms of our credit agreement; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | changes in interest rates or statutory tax rates; |
|--------|--------|---------------------------------------------------|

|   | · | the outcome of pending or future litigation; |
|--------|--------|----------------------------------------------|

|   | · | energy costs; |
|--------|--------|---------------|

|   | · | the availability and effect of acquisitions, investments, dispositions and other capital expenditures including share repurchases on our results of operations, financial condition or stock price; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in general economic conditions. |
|--------|--------|-----------------------------------------|

----

Index

----

Index

|                                                                       |   | 2011                            |   |   | Percent of Total Revenue |   |   | 2010   |   |   | Percent of Total Revenue |   |
|----------------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------------------------|--------|
|                                                                       |   | (dollars in millions) |   |
|                                                                       |   |                            |   |   |                     |   |   |   |   |   |                     |   |
| Revenue:                                                                   |   |                            |   |   |                     |   |   |   |   |   |                     |   |
| Publishing                                                                 |   | $                               | 41.8   |   |                     |   | 49.8   | %      |   | $      | 44.5                     |   |   |   | 51.3 | % |
| Broadcasting                                                               |   |                            | 42.1   |   |                     |   | 50.2   |   |   |   | 42.6                     |   |   |   | 49.0 |   |
| Corporate eliminations                                                     |   |                            | --     |   |                     |   | --     |   |   |   | (0.2                     | )      |   |   | (0.3 | ) |
| Total revenue                                                              |   |                            | 83.9   |   |                     |   | 100.0  |   |   |   | 86.9                     |   |   |   | 100.0 |   |
|                                                                       |   |                            |   |   |                     |   |   |   |   |   |                     |   |   |   |   |   |
| Total operating costs and expenses                                         |   |                            | 49.5   |   |                     |   | 59.0   |   |   |   | 50.5                     |   |   |   | 58.1 |   |
| Selling and administrative expense                                         |   |                            | 28.4   |   |                     |   | 33.8   |   |   |   | 27.0                     |   |   |   | 31.1 |   |
| Total operating costs and expenses and selling and administrative expenses |   |                            | 77.9   |   |                     |   | 92.8   |   |   |   | 77.5                     |   |   |   | 89.2 |   |
| Total operating earnings                                                   |   | $                               | 6.0    |   |                     |   | 7.2    | %      |   | $      | 9.4                      |   |   |   | 10.8 | % |

----

Index

|                     |   | 2011                            |   |   | 2010   |   |
|--------------------------|--------|---------------------------------|--------|--------|--------|--------|
|                     |   | (dollars in millions) |   |
|                     |   |                            |   |   |   |   |
| Publishing               |   | $                               | 1.8    |   |   | $      | 3.4 |   |
| Broadcasting             |   |                            | 6.0    |   |   |   | 7.7 |   |
| Corporate                |   |                            | (1.8   | )      |   |   | (1.7 | ) |
| Total operating earnings |   | $                               | 6.0    |   |   | $      | 9.4 |   |

|                                                                                  |   | 2011                            |   |   | 2010   |   |
|---------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------|--------|
|                                                                                  |   | (dollars in millions) |   |
|                                                                                  |   |                            |   |   |   |   |
| Net earnings                                                                          |   | $                               | 3.4    |   |   | $      | 5.3 |   |
| Earnings from discontinued operations, net                                            |   |                            | (0.3   | )      |   |   | -- |   |
| Provision for income taxes                                                            |   |                            | 1.9    |   |   |   | 3.5 |   |
| Total other expense, net (which is entirely comprised of interest income and expense) |   |                            | 1.1    |   |   |   | 0.6 |   |
| Depreciation                                                                          |   |                            | 5.3    |   |   |   | 5.7 |   |
| Amortization                                                                          |   |                            | 0.4    |   |   |   | 0.5 |   |
| EBITDA                                                                                |   | $                               | 11.8   |   |   | $      | 15.6 |   |

----

Index

|                      |   | 2011                            |   |   | 2010                                |   |   |   |   |
|---------------------------|--------|---------------------------------|--------|--------|-------------------------------------|--------|--------|--------|--------|
|                      |   | Daily Newspaper                 |   |   | Community Newspapers & Shoppers |   |   | Total  |   |   | Daily Newspaper |   |   | Community Newspapers & Shoppers |   |   | Total |   |   | Percent Change |   |
|                      |   | (dollars in millions) |   |
| Advertising revenue:      |   |                            |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                    |   | $                               | 12.8   |   |                                | $      | 4.4    |   |   | $ | 17.2 |   |   | $ | 13.8 |   |   | $ | 4.8 |   |   | $ | 18.6 |   |   |   | (7.2 | ) |
| Classified                |   |                            | 4.3    |   |                                |   | 0.8    |   |   |   | 5.1 |   |   |   | 4.9 |   |   |   | 1.0 |   |   |   | 5.9 |   |   |   | (13.5 | ) |
| National                  |   |                            | 1.1    |   |                                |   | --     |   |   |   | 1.1 |   |   |   | 1.2 |   |   |   | -- |   |   |   | 1.2 |   |   |   | (8.3 | ) |
| Direct marketing          |   |                            | 0.1    |   |                                |   | --     |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | -- |   |   |   | 0.1 |   |   |   | (18.2 | ) |
| Total advertising revenue |   |                            | 18.3   |   |                                |   | 5.2    |   |   |   | 23.5 |   |   |   | 20.0 |   |   |   | 5.8 |   |   |   | 25.8 |   |   |   | (8.8 | ) |
| Circulation revenue       |   |                            | 12.5   |   |                                |   | 0.5    |   |   |   | 13.0 |   |   |   | 12.5 |   |   |   | 0.5 |   |   |   | 13.0 |   |   |   | (0.4 | ) |
| Other revenue             |   |                            | 4.6    |   |                                |   | 0.7    |   |   |   | 5.3 |   |   |   | 5.0 |   |   |   | 0.7 |   |   |   | 5.7 |   |   |   | (7.8 | ) |
| Total revenue             |   | $                               | 35.4   |   |                                | $      | 6.4    |   |   | $ | 41.8 |   |   | $ | 37.5 |   |   | $ | 7.0 |   |   | $ | 44.5 |   |   |   | (6.2 | ) |
|                      |   |                            |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating earnings (loss) |   | $                               | 2.0    |   |                                | $      | (0.2   | )      |   | $ | 1.8 |   |   | $ | 3.5 |   |   | $ | (0.1 | ) |   | $ | 3.4 |   |   |   | (46.1 | ) |

----

Index

|               |   | 2011                  |   |   | 2010   |   |   | Percent |   |
|--------------------|--------|-----------------------|--------|--------|--------|--------|--------|---------|--------|
|               |   | Television            |   |   | Radio  |   |   | Total   |   |   | Television |   |   | Radio |   |   | Total |   |   | Change |   |
|               |   | (dollars in millions) |   |
|               |   |                  |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue            |   | $                     | 27.5   |   |   | $      | 14.6   |    |   | $ | 42.1 |   |   | $ | 28.4 |   |   | $ | 14.2 |   |   | $ | 42.6 |   |   |   | (1.2 | ) |
|               |   |                  |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating earnings |   | $                     | 3.8    |   |   | $      | 2.2    |    |   | $ | 6.0 |   |   | $ | 5.1 |   |   | $ | 2.6 |   |   | $ | 7.7 |   |   |   | (22.6 | ) |

----

Index

----

Index

----

Index

| · | A consolidated funded debt ratio of not greater than 3.50-to-1, as determined for the four fiscal quarter period preceding the date of determination. This ratio compares, for any period, our funded debt to our consolidated EBITDA, defined in the secured credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals and non-cash charges. As of March 27, 2011, our consolidated funded debt ratio was 0.92-to-1 resulting in a maximum borrowing capacity of $276.1 million. As of March 27, 2011, we are able to borrow an additional $203.5 million under our secured credit facility. Our future borrowing capacity is subject to change due to the changes in our future operating results. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A minimum interest coverage ratio of not less than 3-to-1, as determined for the four fiscal quarter period preceding the date of determination. This ratio compares, for any period, our consolidated EBITDA, defined in the secured credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals and non-cash charges, to our interest expense. As of March 27, 2011, our interest coverage ratio was 20.33-to-1. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   | Balance as of December 26, 2010 |   |   | Charge for Separation Benefits |   |   | Payments for Separation Benefits |   |   | Balance as of March 27, 2011 |   |
|-------------------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------|--------|
|                                                  |   | (dollars in millions)                |   |
|                                                  |   |                                 |   |   |                           |   |   |                             |   |   |                              |   |
| Daily newspaper and community newspapers and shoppers |   | $                                    | 1.4    |   |                           | $      | --     |                             |   | $      | (0.3                              | )      |   | $ | 1.1 |   |
| Total                                                 |   | $                                    | 1.4    |   |                           | $      | --     |                             |   | $      | (0.3                              | )      |   | $ | 1.1 |   |

----

Index

----

Index

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK |
|---------|--------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

----

Index

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

|                                                                                                               |   | (a)                                  |   |   | (b)                          |   |   | (c)                                                                              |   |   | (d)                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                   Period |   | Total Number of Shares Purchased (1) |   |   | Average Price Paid Per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans Or Programs |   |   | Maximum Number Of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|                                                                                                               |   |                                 |   |   |                         |   |   |                                                                             |   |   |                                                                           |   |
| December 27, 2010 to January 23, 2011                                                                              |   |                                 | --     |   |                         | $      | --     |                                                                             |   |   | --                                                                             |   |   |   | -- |   |
| January 24 to February 20, 2011                                                                                    |   |                                 | 45,127 |   |                         | $      | 5.63   |                                                                             |   |   | --                                                                             |   |   |   | -- |   |
| February 21 to March 27, 2011                                                                                      |   |                                 | 42,565 |   |                         | $      | 5.91   |                                                                             |   |   | --                                                                             |   |   |   | -- |   |

|   | (1) | Represents shares of class B common stock transferred from employees to us to satisfy tax withholding requirements in connection with the vesting of restricted stock under the 2007 Omnibus Incentive Plan and 2003 Equity Incentive Plan. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | RESERVED |
|---------|----------|

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

| ITEM 6. | EXHIBITS |
|---------|----------|

| (a) | Exhibits |
|-----|----------|

|   | Exhibit No. | Description |
|--------|-------------|-------------|

|   | (31.1) | Certification by Steven J. Smith, Chairman and Chief Executive Officer of Journal Communications, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (31.2) | Certification by Andre J. Fernandez, Executive Vice President, Finance & Strategy and Chief Financial Officer of Journal Communications, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (32) | Certification of Steven J. Smith, Chairman and Chief Executive Officer, and Andre J. Fernandez, Executive Vice President, Finance & Strategy and Chief Financial Officer of Journal Communications, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|              | JOURNAL COMMUNICATIONS, INC.                                                                     |
|-------------------|--------------------------------------------------------------------------------------------------|
|              | Registrant                                                                                       |
|              |                                                                                             |
| Date: May 6, 2011 | /s/ Steven J. Smith                                                                              |
|              | Steven J. Smith, Chairman and Chief Executive Officer                                            |
|              |                                                                                             |
| Date: May 6, 2011 | /s/ Andre J. Fernandez                                                                           |
|              | Andre J. Fernandez, Executive Vice President, Finance & Strategy and Chief Financial Officer |

----