McClatchy Swings to 4th-Quarter Loss On Debt Refinancing Charges

       By Tess Stynes 

    McClatchy Co. (MNI) swung to a fourth-quarter loss, with the media company posting debt-refinancing charges of $94.5 million and continuing to report advertising declines.

    The publisher of the Sacramento Bee and the Miami Herald, like many other newspaper companies, has suffered from a persistent decline in advertising revenue and higher newsprint prices. McClatchy is attempting to generate more revenue from digital advertising and is rolling out a metered subscription plan.

    In the latest quarter, advertising revenue was down 6.3% on a softer-than-expected Christmas season, and circulation revenue was off 1.9%. Total digital advertising--which includes digital advertising both bundled with print and sold on a separate basis--rose 3.5% while digital-only ad revenue was up 15%.

    "We were able to strengthen the company's capital structure by refinancing a good portion of our debt at a lower interest rate while extending the maturity date by five years," President and Chief Executive Pat Talamantes said.

    McClatchy reported a loss of $30 million, or 35 cents a share, compared with year-earlier earnings of $42 million, or 49 cents a share. Excluding debt-extinguishment charges and other items, adjusted earnings were down at $33.8 million from $43.2 million. Revenue increased 1.2% to $355.7 million. Excluding an extra week of sales in the latest period, revenue fell 5.3%.

    Shares were down 1.7% at $2.94 in early trading. The stock is down 10% this year.

    Write to Tess Stynes at