McClatchy Reports First Quarter 2001 Earnings

Apr 18, 2001, 01:00 ET from McClatchy Company

    SACRAMENTO, Calif., April 18 /PRNewswire/ --
 The McClatchy Company (NYSE:   MNI) -- today reported first quarter earnings of
 $10.5 million or 23 cents per share, compared to first quarter 2000 earnings
 of $15.8 million or 35 cents per share.
     Revenues in the 2001 quarter were $263.7 million, down 1.1% from
 2000 revenues of $266.6 million; with advertising revenues of $211.2 million,
 down 1.0% and circulation revenues of $42.5 million, down 3.1%.
     McClatchy noted that its interactive business is showing strong growth.
 Interactive revenues increased 35.8% in first quarter 2001 to $5.0 million and
 the Company's online readers, as measured by unique hosts and page views, grew
 by healthy rates.  Unique hosts were up 26.9% and page views at the Company's
 sites were up 42.3% in the first quarter.
     The Company also noted that earnings benefited from lower interest expense
 reflecting lower debt balances and falling interest rates.  McClatchy's debt
 net of cash on hand at the end of the quarter was $737.3 million, down from
 $768.3 million at the end of 2000.
     Commenting on first quarter results, Gary Pruitt, President and
 Chief Executive Officer of McClatchy said, "Our first quarter results were
 impacted by a double dose of bad news for the newspaper industry:  an overall
 economic slowdown that has weakened advertising results, coupled with higher
 newsprint prices.  We have implemented various cost-saving measures; however,
 they were not enough to offset the effects of these events on our first
 quarter income.
     "We will continue to closely monitor our expenses, saving money where
 prudent.  We enter these uncertain times in a position of strength -- with
 high-quality, profitable newspapers, a strong balance sheet and a focus on
 building long-term value for our shareholders.  But the slowing economic
 environment will continue to impact our earnings.
     "We expect advertising revenue weakness to continue in the second quarter
 and we are absorbing some of the March 1, 2001 increase in newsprint prices
 -- the full magnitude of which is still not settled.  As a result, we
 currently expect second quarter earnings to be between 33 cents and 36 cents
 per share."  McClatchy reported earnings of 55 cents per share in the second
 quarter of 2000.
     The McClatchy Company, headquartered in Sacramento, California, is a
 leading newspaper and Internet publisher.  It publishes 11 daily and
 13 non-daily newspapers located in western coastal states, North and
 South Carolina and the Twin Cities of Minneapolis/St. Paul.  McClatchy has
 daily circulation of 1.4 million and Sunday circulation of 1.9 million.  Along
 with the Star Tribune in Minneapolis, McClatchy's newspapers include, among
 others, The Sacramento Bee, The News & Observer (Raleigh, NC), The Fresno Bee,
 The News Tribune (Tacoma, WA) and the Anchorage Daily News.  McClatchy also
 publishes a leading local website in each of its 11 daily newspaper markets,
 offering readers information, comprehensive news, advertising, e-commerce and
 other services.  McClatchy owns and operates other media-related businesses,
 including Nando Media, a national on-line publishing operation, and
 The Newspaper Network, a national sales and marketing company.  McClatchy is
 listed on the New York Stock Exchange under the symbol MNI.
     This press release contains forward-looking statements that are subjects
 to risks and uncertainties that could cause actual results to differ.  These
 risks and uncertainties include national and local economic conditions that
 could affect advertising and circulation rates and volumes, changes in
 interest rates and/or newsprint prices, increased competition in our markets,
 as well as the other risks detailed from time to time in the Company's
 publicly filed documents, including the Company's December 31, 2000 report on
 form 10-K, filed with the U.S. Securities and Exchange Commission.  The
 Company assumes no obligation to update the forward-looking information
 contained in this release.
 
                               THE McCLATCHY COMPANY
                           SUMMARY OF UNAUDITED RESULTS
                     (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
 
 
                                                Quarter ended     Quarter ended
                                                    April 1,         March 26,
                                                     2001              2000
 
 
     Revenues - net                                $263,698          $266,585
 
     Operating expenses:
       Compensation                                 108,822           106,680
       Newsprint and supplements                     42,276            37,334
       Depreciation and amortization                 27,231            26,753
       Other operating expenses                      51,078            48,815
       Total operating expenses                     229,407           219,582
 
     Operating income:                               34,291            47,003
 
       Interest expense                             (13,514)          (16,658)
       Partnership (loss)                                --              (475)
       Other non-operating income - net                 276               675
       Income before taxes                           21,053            30,545
       Income tax provision                          10,526            14,745
       Net income                                   $10,527           $15,800
 
     Net income per common share:
       Basic                                          $0.23             $0.35
       Diluted                                        $0.23             $0.35
 
     Weighted average common shares:
       Basic                                         45,315            45,005
       Diluted                                       45,475            45,194
 
 
                             The McClatchy Company
                        Consolidated Statistical Report
              (In thousands, except for preprints and page views)
 
                                      Period 3          Period 3 Year-to-Date
     Revenues - Net:          2001    2000   % Change   2001     2000
 % Change
     Advertising
      Daily Newspapers:
       Minneapolis          $22,935  $24,795  -7.5%   $74,531  $78,779  -5.4%
       California            22,622   22,784  -0.7%    71,222   70,479   1.1%
       Carolinas             10,617   11,453  -7.3%    33,514   33,806  -0.9%
       Northwest              9,225    8,789   5.0%    28,494   27,065   5.3%
      Communities             1,215    1,138   6.8%     3,467    3,185   8.9%
     Total Advertising      $66,614  $68,959  -3.4%  $211,228 $213,314  -1.0%
 
     Circulation             13,118   13,509  -2.9%    42,545   43,892  -3.1%
     Other                    2,022    1,887   7.2%     6,783    6,589   2.9%
        Total Newspapers    $81,754  $84,355  -3.1%  $260,556 $263,795  -1.2%
 
     Non-Newspapers           1,131    1,048   7.9%     3,142    2,790  12.6%
        Total Revenue       $82,885  $85,403  -2.9%  $263,698 $266,585  -1.1%
 
     Average Paid Circulation: (Monthly)
       Daily                1,371.9  1,382.3  -0.8%   1,365.4  1,375.6  -0.7%
       Sunday               1,846.9  1,880.1  -1.8%   1,845.9  1,873.3  -1.5%
       Community Newspapers    67.1     65.7   2.1%      66.2     65.1   1.7%
 
     Online: (Monthly)
       Millions of Page Views  95.9     67.4  42.3%     244.5    185.5  31.8%
 
     Advertising Linage for Dailies:
       Full Run ROP
        Retail                419.5    414.1   1.3%   1,272.7  1,261.3   0.9%
        National               85.9     96.5 -11.0%     273.2    293.7  -7.0%
        Classified            574.9    579.1  -0.7%   1,811.9  1,787.1   1.4%
         Total              1,080.3  1,089.7  -0.9%   3,357.8  3,342.1   0.5%
 
       Millions of Preprints
        Distributed           208.1    200.8   3.6%     632.1    599.0   5.5%
 
     Full Run ROP Linage by Market for Dailies:
 
     California:
       The Sacramento Bee     193.3    185.7   4.1%     593.1    591.5   0.3%
       The Fresno Bee          89.5     96.8  -7.5%     276.1    291.7  -5.3%
       The Modesto Bee         84.1     83.3   1.0%     255.3    256.7  -0.5%
 
     Star Tribune,
      Minneapolis             155.1    151.0   2.7%     500.6    483.6   3.5%
 
     Northwest:
       The News Tribune,
        Tacoma                107.9    111.8  -3.5%     333.9    340.3  -1.9%
       Anchorage Daily News    74.2     70.4   5.4%     227.3    218.2   4.2%
       Tri-City Herald         55.7     65.1 -14.4%     180.8    187.8  -3.7%
 
     Carolinas:
       The News & Observer,
        Raleigh               156.5    166.3  -5.9%     495.6    491.5   0.8%
       South Carolina
        Dailies               164.0    159.3   3.0%     495.1    480.8   3.0%
         Total              1,080.3  1,089.7  -0.9%   3,357.8  3,342.1   0.5%
 
 

SOURCE McClatchy Company
    SACRAMENTO, Calif., April 18 /PRNewswire/ --
 The McClatchy Company (NYSE:   MNI) -- today reported first quarter earnings of
 $10.5 million or 23 cents per share, compared to first quarter 2000 earnings
 of $15.8 million or 35 cents per share.
     Revenues in the 2001 quarter were $263.7 million, down 1.1% from
 2000 revenues of $266.6 million; with advertising revenues of $211.2 million,
 down 1.0% and circulation revenues of $42.5 million, down 3.1%.
     McClatchy noted that its interactive business is showing strong growth.
 Interactive revenues increased 35.8% in first quarter 2001 to $5.0 million and
 the Company's online readers, as measured by unique hosts and page views, grew
 by healthy rates.  Unique hosts were up 26.9% and page views at the Company's
 sites were up 42.3% in the first quarter.
     The Company also noted that earnings benefited from lower interest expense
 reflecting lower debt balances and falling interest rates.  McClatchy's debt
 net of cash on hand at the end of the quarter was $737.3 million, down from
 $768.3 million at the end of 2000.
     Commenting on first quarter results, Gary Pruitt, President and
 Chief Executive Officer of McClatchy said, "Our first quarter results were
 impacted by a double dose of bad news for the newspaper industry:  an overall
 economic slowdown that has weakened advertising results, coupled with higher
 newsprint prices.  We have implemented various cost-saving measures; however,
 they were not enough to offset the effects of these events on our first
 quarter income.
     "We will continue to closely monitor our expenses, saving money where
 prudent.  We enter these uncertain times in a position of strength -- with
 high-quality, profitable newspapers, a strong balance sheet and a focus on
 building long-term value for our shareholders.  But the slowing economic
 environment will continue to impact our earnings.
     "We expect advertising revenue weakness to continue in the second quarter
 and we are absorbing some of the March 1, 2001 increase in newsprint prices
 -- the full magnitude of which is still not settled.  As a result, we
 currently expect second quarter earnings to be between 33 cents and 36 cents
 per share."  McClatchy reported earnings of 55 cents per share in the second
 quarter of 2000.
     The McClatchy Company, headquartered in Sacramento, California, is a
 leading newspaper and Internet publisher.  It publishes 11 daily and
 13 non-daily newspapers located in western coastal states, North and
 South Carolina and the Twin Cities of Minneapolis/St. Paul.  McClatchy has
 daily circulation of 1.4 million and Sunday circulation of 1.9 million.  Along
 with the Star Tribune in Minneapolis, McClatchy's newspapers include, among
 others, The Sacramento Bee, The News & Observer (Raleigh, NC), The Fresno Bee,
 The News Tribune (Tacoma, WA) and the Anchorage Daily News.  McClatchy also
 publishes a leading local website in each of its 11 daily newspaper markets,
 offering readers information, comprehensive news, advertising, e-commerce and
 other services.  McClatchy owns and operates other media-related businesses,
 including Nando Media, a national on-line publishing operation, and
 The Newspaper Network, a national sales and marketing company.  McClatchy is
 listed on the New York Stock Exchange under the symbol MNI.
     This press release contains forward-looking statements that are subjects
 to risks and uncertainties that could cause actual results to differ.  These
 risks and uncertainties include national and local economic conditions that
 could affect advertising and circulation rates and volumes, changes in
 interest rates and/or newsprint prices, increased competition in our markets,
 as well as the other risks detailed from time to time in the Company's
 publicly filed documents, including the Company's December 31, 2000 report on
 form 10-K, filed with the U.S. Securities and Exchange Commission.  The
 Company assumes no obligation to update the forward-looking information
 contained in this release.
 
                               THE McCLATCHY COMPANY
                           SUMMARY OF UNAUDITED RESULTS
                     (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
 
 
                                                Quarter ended     Quarter ended
                                                    April 1,         March 26,
                                                     2001              2000
 
 
     Revenues - net                                $263,698          $266,585
 
     Operating expenses:
       Compensation                                 108,822           106,680
       Newsprint and supplements                     42,276            37,334
       Depreciation and amortization                 27,231            26,753
       Other operating expenses                      51,078            48,815
       Total operating expenses                     229,407           219,582
 
     Operating income:                               34,291            47,003
 
       Interest expense                             (13,514)          (16,658)
       Partnership (loss)                                --              (475)
       Other non-operating income - net                 276               675
       Income before taxes                           21,053            30,545
       Income tax provision                          10,526            14,745
       Net income                                   $10,527           $15,800
 
     Net income per common share:
       Basic                                          $0.23             $0.35
       Diluted                                        $0.23             $0.35
 
     Weighted average common shares:
       Basic                                         45,315            45,005
       Diluted                                       45,475            45,194
 
 
                             The McClatchy Company
                        Consolidated Statistical Report
              (In thousands, except for preprints and page views)
 
                                      Period 3          Period 3 Year-to-Date
     Revenues - Net:          2001    2000   % Change   2001     2000
 % Change
     Advertising
      Daily Newspapers:
       Minneapolis          $22,935  $24,795  -7.5%   $74,531  $78,779  -5.4%
       California            22,622   22,784  -0.7%    71,222   70,479   1.1%
       Carolinas             10,617   11,453  -7.3%    33,514   33,806  -0.9%
       Northwest              9,225    8,789   5.0%    28,494   27,065   5.3%
      Communities             1,215    1,138   6.8%     3,467    3,185   8.9%
     Total Advertising      $66,614  $68,959  -3.4%  $211,228 $213,314  -1.0%
 
     Circulation             13,118   13,509  -2.9%    42,545   43,892  -3.1%
     Other                    2,022    1,887   7.2%     6,783    6,589   2.9%
        Total Newspapers    $81,754  $84,355  -3.1%  $260,556 $263,795  -1.2%
 
     Non-Newspapers           1,131    1,048   7.9%     3,142    2,790  12.6%
        Total Revenue       $82,885  $85,403  -2.9%  $263,698 $266,585  -1.1%
 
     Average Paid Circulation: (Monthly)
       Daily                1,371.9  1,382.3  -0.8%   1,365.4  1,375.6  -0.7%
       Sunday               1,846.9  1,880.1  -1.8%   1,845.9  1,873.3  -1.5%
       Community Newspapers    67.1     65.7   2.1%      66.2     65.1   1.7%
 
     Online: (Monthly)
       Millions of Page Views  95.9     67.4  42.3%     244.5    185.5  31.8%
 
     Advertising Linage for Dailies:
       Full Run ROP
        Retail                419.5    414.1   1.3%   1,272.7  1,261.3   0.9%
        National               85.9     96.5 -11.0%     273.2    293.7  -7.0%
        Classified            574.9    579.1  -0.7%   1,811.9  1,787.1   1.4%
         Total              1,080.3  1,089.7  -0.9%   3,357.8  3,342.1   0.5%
 
       Millions of Preprints
        Distributed           208.1    200.8   3.6%     632.1    599.0   5.5%
 
     Full Run ROP Linage by Market for Dailies:
 
     California:
       The Sacramento Bee     193.3    185.7   4.1%     593.1    591.5   0.3%
       The Fresno Bee          89.5     96.8  -7.5%     276.1    291.7  -5.3%
       The Modesto Bee         84.1     83.3   1.0%     255.3    256.7  -0.5%
 
     Star Tribune,
      Minneapolis             155.1    151.0   2.7%     500.6    483.6   3.5%
 
     Northwest:
       The News Tribune,
        Tacoma                107.9    111.8  -3.5%     333.9    340.3  -1.9%
       Anchorage Daily News    74.2     70.4   5.4%     227.3    218.2   4.2%
       Tri-City Herald         55.7     65.1 -14.4%     180.8    187.8  -3.7%
 
     Carolinas:
       The News & Observer,
        Raleigh               156.5    166.3  -5.9%     495.6    491.5   0.8%
       South Carolina
        Dailies               164.0    159.3   3.0%     495.1    480.8   3.0%
         Total              1,080.3  1,089.7  -0.9%   3,357.8  3,342.1   0.5%
 
 SOURCE  McClatchy Company