McClatchy Holds 2011 Annual Meeting of Shareholders
The McClatchy Company (NYSE: MNI) shareholders today re-elected 11 directors to one-year terms and said farewell to Larry Jinks, who retired today from the company's board after nearly 16 years of service.
Shareholders re-elected Elizabeth Ballantine, Kathleen Foley Feldstein and S. Donley Ritchey as Class A directors and re-elected Leroy Barnes, Molly Maloney Evangelisti, Brown McClatchy Maloney, Kevin S. McClatchy, William McClatchy, Theodore R. Mitchell, Gary B. Pruitt and Frederick R. Ruiz as Class B directors. Shareholders also ratified the appointment of Deloitte and Touche LLP as the company's independent registered public accounting firm for 2011; approved, in a non-binding vote, the compensation of the Company's named executive officers; and recommended a resolution that a non-binding shareholder vote to approve the compensation of the Company's named executive officers should occur every three years.
Gary Pruitt, McClatchy's chairman and chief executive officer, noted that Larry Jinks had served as a board member since July 1995 and that his wisdom and leadership would be missed. "Larry has contributed greatly to McClatchy, and we wish him all the best in his retirement," he said.
Pruitt also noted that, as previously announced, Frank Whittaker, Vice President of Operations will be retiring from the company on May 27, 2011. He said, "Frank was promoted to vice president, operations at McClatchy in 1997, where he has served so ably ever since. As McClatchy shareholders, we certainly owe Frank our thanks for his hard work, his leadership, his dedication, and his many contributions to our company."
Pruitt also reviewed the company's results for 2010 and the strategies for 2011. "Much of McClatchy's work over the past year has been focused on our future. We are, quite simply, working hard today for a better tomorrow. We are intensely focused on five key areas:
- Driving new revenue, especially digital;
- Growing overall audience;
- Producing high-quality journalism;
- Permanently reducing costs; and
- Continuing to pay down debt
Pruitt pointed to McClatchy's significant journalistic accomplishments with The Miami Herald winning the Robert F. Kennedy Journalism Award for its coverage of the U.S. prison camps at Guantanamo Bay. The RFK award, one of the most prestigious prizes in all of journalism, salutes outstanding reporting on human rights and social justice.
Pruitt also said, "We didn't add to our total of 52 Pulitzer Prizes last month when the 2011 winners were announced. Still, three McClatchy newspapers were named as finalists by the Pulitzer jurors: the Lexington Herald-Leader for editorial cartooning and The Miami Herald and El Nuevo Herald in the breaking news category for their coverage of the earthquake in Haiti."
Pruitt reviewed the company's progress in paying down debt, which has declined more than $195 million from the beginning of 2010 through the end of the first quarter in 2011. Concluding, Pruitt said, "What we're doing collectively is creating the model for a leading local media company that can support quality journalism. That's important work; it's difficult work. But we are getting it done."
The full text of Mr. Pruitt's speech is available at www.mcclatchy.com.
The McClatchy Company is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 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 News & Observer (Raleigh).
McClatchy also owns a portfolio of premium digital assets, including 15% of CareerBuilder, the nation's largest online job site, 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 and 33.3% of HomeFinder, which operates the real estate website HomeFinder.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.
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: the duration and depth of the economic recession and strength of subsequent recoveries; McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet debt covenants as expected; McClatchy may not consummate contemplated transactions to 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; 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; 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; decreased circulation and diminished revenues from retail, classified and national advertising; 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. 26, 2010, 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