McClatchy reports $2.1 million Q1 loss

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Published on 04/25/2012 - 4:41 pm

Written by Bisiness Journal Staff

The McClatchy Co., publisher of The Fresno, Sacramento and Modesto Bee newspapers, reported a net first quarter loss of $2.1 million, or 2 cents a share.

It’s nearly an exact repeat of the same quarter in 2011 when the net loss was $2 million, or 2 cents a share.

Revenues in the first quarter of 2012 were $288.3 million, down 5.1 percent from the first quarter of 2011. Advertising revenues were $209.8 million, down 6.8 percent from 2011, while circulation revenues reached $66.4 million, up .4 percent from quarter-1, 2011.

Despite the drop in advertising revenues, monthly figures offered some encouragement.

“We are pleased to see the advertising revenue trend improving throughout the quarter,” said Gary Pruitt, chairman, president and chief executive officer of McClatchy. “Advertising revenues were down 7.9 percent in January, 6.8 percent in February and 5.6 percent in March.”

Digital revenues were a bright spot, up 2.7 percent in the first quarter of 2012. Digital revenues represented 22.2 percent of total advertising revenues.

“We continue to make progress on our digital initiatives and the strong revenue results in the quarter demonstrate that digital continues to be a high-growth opportunity for the company,” Pruitt said.

Other first-quarter results include severance charges totaling $1.2 million and a reduction in debt totaling $4.4 million.

Net loss in the first quarter of 2012, excluding the net impact of these items, was $2.5 million compared to a net loss of $3.4 million adjusted for similar items in quarter-1, 2011.

Operating cash expenses, excluding charges associated with restructuring plans, declined $9.7 million or 4.1 percent from the 2011 quarter. Operating cash flow was $60.8 million in the first quarter of 2012, down 8.7 percent.

Also, during the first quarter of 2012, McClatchy announced that Pruitt would leave the company on May 16 of this year to become president and chief executive officer of The Associated Press.

McClatchy’s board of directors has named Patrick Talamantes, McClatchy’s current vice president, finance and chief financial officer, as Pruitt’s successor.

Kevin S. McClatchy, a director of McClatchy since 1998 and a fifth-generation member of the founding McClatchy family, will become chairman of the board.

The board of directors expects to name Talamantes’ replacement in the chief financial officer position on May 16, the next board meeting date.