McClatchy Announces Corporate Reorganization And Changes To Advertising, Digital, Technology Operations

SACRAMENTO, Calif., Feb. 12, 2015 /PRNewswire/ -- The McClatchy Company (NYSE: MNI) today announced plans to reorganize its corporate operations, including expanding its sales and marketing efforts and integrating McClatchy Interactive, the company's digital hub, into the rest of the company.

"Today's announcement is another step forward in our digital transformation," said Pat Talamantes, McClatchy's president and CEO. "The reorganization will emphasize innovation and product development to meet the changing needs of our readers and advertisers.

"We believe this move will strengthen our sales and marketing teams to accelerate our digital revenue growth, while at the same time demonstrating to advertisers the continuing value of our print products. And it will reshape McClatchy Interactive to better integrate technology throughout the company, a natural next step in our company's evolution," Talamantes said.

The company is working toward a June 30 implementation date, which coincides with the previously announced retirement of Bob Weil, one of two McClatchy vice presidents for operations and a member of McClatchy's senior management team. The reorganization means new roles and responsibilities for two senior executives, Mark Zieman, vice president, operations, and Christian A. Hendricks, vice president of interactive media.

Beginning June 30, Zieman will continue in an expanded role as vice president of operations with oversight of McClatchy's 29 local media properties, the corporate digital revenue development team and the corporate production team.

Additionally, Zieman will oversee an expanded corporate advertising department to increase the company's sales strength, assist local markets with training, revenue growth strategies and new sales tools. A search both inside and outside McClatchy has begun for a new vice president of advertising to lead the new sales group along with a director of sales operations, who will also play a key role.

Hendricks will take on new responsibilities and a new title June 30 as vice president of products, marketing and innovation. He will assume oversight of audience development, business development, product management, mobile initiatives, marketing, corporate communications, and external partnerships and will continue his oversight of McClatchy's Tru Measure subsidiary.

As part of the changes, employees with McClatchy Interactive, the company's digital division in Raleigh, N.C., will become part of other company operations, including technology, finance, digital revenue development and digital news.

"When MI was formed in 1995, we didn't know what our digital future had in store for us," Talamantes said. "Twenty years later, we are a digital media company. Last month our digital products had 45.2 million monthly unique visitors with a majority of them coming from mobile devices. Print advertising, once the primary source of our advertising revenues, now represents approximately one-third of our total revenues.

"Given this vast change, it only makes sense to infuse the digital expertise of MI's talented employees into the rest of the company to streamline decision-making and operations and further accelerate our digital transformation," Talamantes said.

About McClatchy

The McClatchy Company is a 21^st century news and information leader, publisher of iconic brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. McClatchy operates media companies in 28 U.S. markets in 14 states, providing each of its communities with high-quality news and advertising services in a wide array of digital and print formats. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange under the symbol MNI.

Additional Information

Statements in this press release regarding future financial and operating results, including revenues, anticipated savings from cost reduction efforts, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet debt covenants as expected; we may not be successful in the reducing debt whether through tenders offers, open market repurchase programs or other negotiated transactions; transactions may not close as anticipated or result in cash distributions in the amount or timing anticipated; McClatchy may not successfully implement reorganization plans or realize operational results from that reorganization.  McClatchy may not successfully implement audience strategies designed to increase audience revenue and may experience decreased audience volumes or subscriptions; McClatchy may experience diminished revenues from retail, classified, national and direct marketing advertising; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; bankruptcies or financial strain of its major advertising customers; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; changes in pension assets and liabilities; changes in factors that impact pension contribution requirements, including, without limitation, the value of the company-owned real property that McClatchy has contributed to its pension plan; increased consolidation among major retailers in our markets or other events depressing the level of advertising; our inability to negotiate and obtain favorable terms under collective bargaining agreements with unions; competitive action by other companies; and other factors, many of which are beyond our control; as well as the other risks detailed from time to time in the company's publicly filed documents, including the company's Annual Report on Form 10-K for the year ended Dec. 29, 2013, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

SOURCE The McClatchy Company

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