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Wednesday September 8, 2010
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Wednesday September 8, 2010
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Released: 09/16/2008
SACRAMENTO, Calif., Sept. 16 -- The McClatchy Company (NYSE: MNI) today reported that consolidated revenues in August 2008 decreased 15.7% and advertising revenues were down 17.8% compared to revenues in August 2007. The Company noted that the declines in print advertising were partially offset by a 7.4% gain in online advertising revenues in August 2008 compared to August 2007. For the first eight months of the year, total revenues declined 15.0% and advertising revenues declined 16.7%. Online advertising grew 11.2% in the first eight months of 2008.Pat Talamantes, McClatchy's chief financial officer, said, "August advertising activity turned out to be stronger than recent months. And as we have previously noted, online advertising continues to be a bright spot for the company, with online advertising up in all categories except employment advertising. In fact, when employment advertising, which has declined both in print and online as a result of the nation-wide slow down in hiring, is excluded our online advertising revenue was up 51.5% in August and was up 55.3% in the first eight months of 2008.
Advertising revenue performance at the company's newspapers is summarized in McClatchy's statistical report that follows.
About McClatchy
The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer.
McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, and 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com. McClatchy is 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, operating expenses, 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: the duration and depth of an economic recession in markets where McClatchy operates its newspapers may reduce its income and cash flow greater than expected; McClatchy may not consummate contemplated transactions which may enable debt reduction on anticipated terms or at all; 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; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, 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 December 30, 2007, 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.
***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints)
August
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $59,007 $64,387 -8.4% National 10,293 12,905 -20.2% Classified Total 38,105 54,351 -29.9% Automotive 10,662 13,590 -21.5% Real Estate 9,149 14,935 -38.7% Employment 11,166 19,041 -41.4% Other 7,128 6,785 5.1% Direct Marketing 10,563 11,760 -10.2% Other Advertising 94 208 -54.8% Total Advertising $118,062 $143,611 -17.8%
Circulation 19,871 20,802 -4.5% Other 4,826 5,033 -4.1% Total Revenues $142,759 $169,446 -15.7%
Advertising Revenues by Market: California $22,301 $27,407 -18.6% Florida 16,073 20,763 -22.6% Texas 13,069 15,091 -13.4% Southeast 34,033 41,520 -18.0% Midwest 18,389 21,191 -13.2% Northwest 14,166 17,060 -17.0% Other 31 579 -94.6% Total Advertising $118,062 $143,611 -17.8%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $55,382 $62,259 -11.0% National 8,908 12,328 -27.7% Classified Total 28,297 43,259 -34.6% Automotive 7,903 11,488 -31.2% Real Estate 7,717 13,722 -43.8% Employment 6,306 11,817 -46.6% Other 6,371 6,232 2.2% Direct Marketing 10,563 11,760 -10.2% Other Advertising 94 208 -54.8% Total Advertising $103,244 $129,814 -20.5%
Advertising Revenues by Market: California $19,909 $25,357 -21.5% Florida 14,035 19,118 -26.6% Texas 11,767 13,905 -15.4% Southeast 29,253 36,922 -20.8% Midwest 15,741 18,913 -16.8% Northwest 12,539 15,214 -17.6% Other 0 385 -100.0% Total Advertising $103,244 $129,814 -20.5%
Advertising Statistics for Dailies: Full Run ROP Linage 2,138.5 2,492.1 -14.2%
Millions of Preprints Distributed 616.6 522.2 18.1%
Average Paid Circulation:* Daily 2,471.3 2,624.4 -5.8% Sunday 3,141.9 3,310.9 -5.1%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $3,625 $2,128 70.3% National 1,385 577 140.0% Classified Total 9,808 11,092 -11.6% Automotive 2,759 2,102 31.3% Real Estate 1,432 1,213 18.1% Employment 4,860 7,224 -32.7% Other 757 553 36.9% Direct Marketing Other Advertising Total Advertising $14,818 $13,797 7.4%
Advertising Revenues by Market: California $2,392 $2,050 16.7% Florida 2,038 1,645 23.9% Texas 1,302 1,186 9.8% Southeast 4,780 4,598 4.0% Midwest 2,648 2,278 16.2% Northwest 1,627 1,846 -11.9% Other 31 194 -84.0% Total Advertising $14,818 $13,797 7.4%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints)
August Year-to-Date
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $512,177 $559,214 -8.4% National 96,817 118,682 -18.4% Classified Total 359,790 496,636 -27.6% Automotive 94,505 115,280 -18.0% Real Estate 90,455 143,299 -36.9% Employment 111,634 177,252 -37.0% Other 63,196 60,805 3.9% Direct Marketing 95,333 102,376 -6.9% Other Advertising 1,085 1,438 -24.5% Total Advertising $1,065,202 $1,278,346 -16.7%
Circulation 178,098 188,050 -5.3% Other 45,228 50,307 -10.1% Total Revenues $1,288,528 $1,516,703 -15.0%
Advertising Revenues by Market: California $191,379 $248,005 -22.8% Florida 155,515 200,138 -22.3% Texas 117,275 131,834 -11.0% Southeast 311,341 361,441 -13.9% Midwest 165,082 185,329 -10.9% Northwest 123,723 147,379 -16.1% Other 887 4,220 -79.0% Total Advertising $1,065,202 $1,278,346 -16.7%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $482,828 $542,640 -11.0% National 86,166 114,414 -24.7% Classified Total 274,939 405,198 -32.1% Automotive 72,629 99,262 -26.8% Real Estate 78,848 133,242 -40.8% Employment 66,407 116,227 -42.9% Other 57,055 56,467 1.0% Direct Marketing 95,333 102,376 -6.9% Other Advertising 1,085 1,438 -24.5% Total Advertising $940,351 $1,166,066 -19.4%
Advertising Revenues by Market: California $171,414 $230,383 -25.6% Florida 138,447 185,544 -25.4% Texas 106,384 122,523 -13.2% Southeast 271,166 324,198 -16.4% Midwest 143,782 167,663 -14.2% Northwest 109,158 132,390 -17.5% Other 0 3,365 -100.0% Total Advertising $940,351 $1,166,066 -19.4%
Advertising Statistics for Dailies: Full Run ROP Linage 18,803.8 22,020.8 -14.6%
Millions of Preprints Distributed 4,284.5 4,448.1 -3.7%
Average Paid Circulation:* Daily 2,615.5 2,730.7 -4.2% Sunday 3,240.0 3,387.9 -4.4%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $29,349 $16,574 77.1% National 10,651 4,268 149.6% Classified Total 84,851 91,438 -7.2% Automotive 21,876 16,018 36.6% Real Estate 11,607 10,057 15.4% Employment 45,227 61,025 -25.9% Other 6,141 4,338 41.6% Direct Marketing Other Advertising Total Advertising $124,851 $112,280 11.2%
Advertising Revenues by Market: California $19,965 $17,622 13.3% Florida 17,068 14,594 17.0% Texas 10,891 9,311 17.0% Southeast 40,175 37,243 7.9% Midwest 21,300 17,666 20.6% Northwest 14,565 14,989 -2.8% Other 887 855 3.7% Total Advertising $124,851 $112,280 11.2%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
SOURCE The McClatchy Company
The McClatchy Company