-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
JUyFSJRPVoj044EWEDHSE/uCT0q2AIgOVm8pgG/V2TgpXun4qLbahIK1IOUMwxVT
zlf/3BZiJeouyKwKdKsqpA==
UNITED STATES Date of Report (Date of earliest event reported) April 15, 2003 The McClatchy Company (Exact name of registrant as specified in its charter) Delaware 1-9824 52-2080478 (State or other jurisdiction (Commission (IRS Employer 2100 Q Street, Sacramento, CA 95816 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code (916) 321-1846
SECURITIES AND EXCHANGE COMMISSION
Washington D.C . 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
of incorporation)
File Number)
Identification No.)
Item 7. |
Financial Statements and Exhibits |
(c) |
Exhibits |
|
The following exhibit is filed herewith: |
Exhibit Number |
Description |
99.1 |
Text of press release issued by The McClatchy Company, dated April 15, 2003, titled "McCLATCHY REPORTS FIRST QUARTER 2003 EARNINGS" |
Item 9. |
Regulation FD Disclosure (Information Furnished in this Item 9 is Furnished under Item 12) |
In accordance with Securities and Exchange Commission Release No. 33-8216, the following information, which is intended to be furnished under Item 12, "Results of Operations and Financial Condition," is instead being furnished under Item 9, "Regulation FD Disclosure." This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The McClatchy Company's press release dated April 15, 2003 is incorporated herein by reference and is attached hereto as Exhibit 99.1.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto daily authorized.
|
|
|
|
|
|
Patrick J. Talamantes |
Exhibit Index
Exhibit Number |
Description |
99.1 |
Text of press release issued by The McClatchy Company, dated April 15, 2003, titled "McCLATCHY REPORTS FIRST QUARTER 2003 EARNINGS" |
EXHIBIT 99.1
Contact: |
Elaine Lintecum |
McCLATCHY REPORTS FIRST QUARTER 2003 EARNINGS
SACRAMENTO, CA, April 15, 2003 - The McClatchy Company (NYSE-MNI) - today reported first quarter earnings of $25.3 million, or 55 cents per share, compared to first quarter 2002 earnings of $23.3 million, or 51 cents per share.
Revenues in the 2003 quarter were $257.9 million, up 3.3% from 2002 revenues of $249.7 million, with advertising revenues of $210.4 million, up 4.1%, and circulation revenues of $41.7 million, up 1.2%.
The company noted that it recorded a pre-tax charge of $1.3 million in the first quarter of 2003 related to the bankruptcy of one of its larger advertisers, Fleming/Rainbow Foods, which was announced in early April.
Gary Pruitt, McClatchy's chairman and chief executive officer said, "We are pleased with our first quarter results especially given the challenges we faced in classified advertising in the weeks leading up to and at the beginning of the war in Iraq, and the charge related to the bankruptcy.
"It is unclear what the long-term economic impact of the war will be. Nonetheless, we have faced similar trying times and found that sound business strategy and efficient execution become even more important to our financial health. At McClatchy, we recognize that our communities need their newspapers more at times of crises; that extensive coverage, in-depth analyses and a forum to weigh the issues are what make us valuable to readers and ultimately our advertisers. We will continue to focus on quality journalism and providing our advertisers with programs that help them achieve their goals. While our business strategies have proven effective in uncertain times, given the current economic climate, including the impact of the war, we cannot yet provide guidance concerning our financial results for the second quarter or full year 2003."
McClatchy noted that, as a result of its decision to sell The Newspaper Network, Inc. (TNN), it expects to record a one-time gain equal to 11 cents to 13 cents per share in its second quarter 2003 results. The sale of TNN is expected to close in June 2003. TNN's revenues and expenses have been aggregated to report it as a discontinued operation in McClatchy's financial results for the first quarters of 2003 and 2002.
McClatchy also noted that it contributed $38.6 million to its pension plans in the first quarter of 2003, and used the rest of its free cash flow to repay debt and pay dividends to its shareholders. Its debt balance at March 30, 2003 was $488 million.
The company's statistical report, which summarizes its revenue performance for March and the first quarter of 2003, follows.
McClatchy management will review its results in a conference call and webcast at
11:30 am Eastern time today. To access the webcast, go to www.mcclatchy.com. The conference call will be available through a limited number of listen-only lines. To access the call, dial 800-967-7134 about ten minutes prior to the call. Callers will need the password (179947) to be granted access. Replays of the conference call will be available for 48 hours after the call. The webcast will be archived at www.mcclatchy.com/investors/. To listen to the replay of the call, dial 888-203-1112.
The McClatchy Company, headquartered in Sacramento, California, is a leading newspaper and Internet publisher. It publishes 11 daily and 11 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 1.39 million and Sunday circulation of 1.85 million. Along with the Star Tribune in Minneapolis, McClatchy's newspapers include, among others, The Sacramento Bee, The Fresno Bee and The Modesto Bee in California, The News & Observer (Raleigh, NC), The News Tribune (Tacoma, WA) and the Anchorage Daily News.
McClatchy also publishes leading local websites 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.
Additional Information
This release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Those risks and uncertainties are outlined in the company's December 29, 2002 annual 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 |
||||
Quarter ended |
Quarter ended March 31, |
|||
Revenues - net: |
$ 257,881 |
$ 249,630 |
||
Operating expenses: |
||||
Compensation |
111,823 |
106,489 |
||
Newsprint and supplements |
31,566 |
|
32,501 |
|
Depreciation and amortization |
18,211 |
18,642 |
||
Other operating expenses |
49,020 |
44,586 |
||
Total operating expenses |
210,620 |
202,218 |
||
Operating income |
47,621 |
47,432 |
||
Interest expense |
(5,202) |
(7,777) |
||
Partnership loss |
(351) |
(440) |
||
Other non-operating income - net |
106 |
(861) |
||
Income from continuing operations before taxes |
41,814 |
|
38,354 |
|
Income tax provision |
16,516 |
15,141 |
||
Income from continuing operations |
25,298 |
23,213 |
||
Income from discontinued operation |
12 |
83 |
||
Net income |
$ 25,310 |
$ 23,296 |
||
Net income per common share (2): |
||||
Basic |
$ 0.55 |
$ 0.51 |
||
Diluted |
$ 0.55 |
$ 0.51 |
||
Weighted average common shares: |
||||
Basic |
46,031 |
45,650 |
||
Diluted |
46,309 |
46,006 |
||
The McClatchy Company |
||||||||||||||||||||||||||||||||
Consolidated Statistical Report |
||||||||||||||||||||||||||||||||
(In thousands, except for preprints and page views) |
||||||||||||||||||||||||||||||||
Period 3 |
Period 3 Year-to-Date |
|||||||||||||||||||||||||||||||
Revenues - Net: * |
2003 |
2002 |
% Change |
2003 |
2002 |
% Change |
||||||||||||||||||||||||||
Advertising |
||||||||||||||||||||||||||||||||
Minneapolis |
$21,903 |
$21,108 |
3.8% |
$68,622 |
$66,324 |
3.5% |
||||||||||||||||||||||||||
California |
24,791 |
22,888 |
8.3% |
77,549 |
72,385 |
7.1% |
||||||||||||||||||||||||||
Carolinas |
11,277 |
11,791 |
-4.4% |
34,307 |
34,519 |
-0.6% |
||||||||||||||||||||||||||
Northwest |
9,736 |
9,379 |
3.8% |
29,944 |
28,937 |
3.5% |
||||||||||||||||||||||||||
Total Advertising |
$67,707 |
$65,166 |
3.9% |
$210,422 |
$202,165 |
4.1% |
||||||||||||||||||||||||||
Circulation |
12,858 |
12,447 |
3.3% |
41,660 |
41,148 |
1.2% |
||||||||||||||||||||||||||
Other |
1,673 |
1,832 |
-8.7% |
5,457 |
6,020 |
-9.4% |
||||||||||||||||||||||||||
Total Newspapers |
$82,238 |
$79,445 |
3.5% |
$257,539 |
$249,333 |
3.3% |
||||||||||||||||||||||||||
Non-Newspapers |
99 |
108 |
-8.3% |
342 |
317 |
7.9% |
||||||||||||||||||||||||||
Total Revenue |
$82,337 |
$79,553 |
3.5% |
$257,881 |
$249,650 |
3.3% |
||||||||||||||||||||||||||
* Revenues reported are from continuing operations only. |
||||||||||||||||||||||||||||||||
Average Paid Circulation: (Period) |
||||||||||||||||||||||||||||||||
Daily |
1,413.5 |
1,390.7 |
1.6% |
1,392.5 |
1,391.1 |
0.1% |
||||||||||||||||||||||||||
Sunday |
1,852.2 |
1,850.0 |
0.1% |
1,847.3 |
1,847.0 |
0.0% |
||||||||||||||||||||||||||
Community Newspapers |
61.7 |
64.1 |
-3.7% |
61.7 |
63.4 |
-2.7% |
||||||||||||||||||||||||||
Online: (Monthly) |
||||||||||||||||||||||||||||||||
Millions of Page Views |
117.2 |
104.5 |
12.2% |
346.0 |
296.1 |
16.9% |
||||||||||||||||||||||||||
Advertising Linage for Dailies: |
||||||||||||||||||||||||||||||||
Full Run ROP |
||||||||||||||||||||||||||||||||
Retail |
412.5 |
428.9 |
-3.8% |
1,275.0 |
1,261.5 |
1.1% |
||||||||||||||||||||||||||
National |
87.2 |
80.0 |
9.0% |
264.1 |
253.4 |
4.2% |
||||||||||||||||||||||||||
Classified |
568.0 |
562.2 |
1.0% |
1,770.4 |
1,753.1 |
1.0% |
||||||||||||||||||||||||||
Total |
1,067.7 |
1,071.1 |
-0.3% |
3,309.5 |
3,268.0 |
1.3% |
||||||||||||||||||||||||||
Millions of Preprints Distributed |
234.6 |
217.1 |
8.1% |
723.7 |
667.1 |
8.5% |
||||||||||||||||||||||||||
Full Run ROP Linage by Market for Dailies: |
||||||||||||||||||||||||||||||||
California: |
||||||||||||||||||||||||||||||||
The Sacramento Bee |
187.8 |
179.4 |
4.7% |
590.9 |
565.9 |
4.4% |
||||||||||||||||||||||||||
The Fresno Bee |
97.7 |
93.2 |
4.8% |
303.5 |
287.5 |
5.6% |
||||||||||||||||||||||||||
The Modesto Bee |
99.6 |
99.9 |
-0.3% |
305.1 |
300.3 |
1.6% |
||||||||||||||||||||||||||
Star Tribune , Minneapolis |
135.1 |
136.4 |
-1.0% |
436.3 |
415.2 |
5.1% |
||||||||||||||||||||||||||
Northwest: |
||||||||||||||||||||||||||||||||
The News Tribune , Tacoma |
97.4 |
102.2 |
-4.7% |
303.1 |
326.1 |
-7.1% |
||||||||||||||||||||||||||
Anchorage Daily News |
67.9 |
73.4 |
-7.5% |
209.7 |
216.6 |
-3.2% |
||||||||||||||||||||||||||
Tri-City Herald |
62.1 |
55.5 |
11.9% |
179.7 |
181.8 |
-1.2% |
||||||||||||||||||||||||||
Carolinas: |
||||||||||||||||||||||||||||||||
The News & Observer , Raleigh |
156.5 |
173.2 |
-9.6% |
485.6 |
504.6 |
-3.8% |
||||||||||||||||||||||||||
South Carolina Dailies |
163.6 |
157.9 |
3.6% |
495.6 |
470.0 |
5.4% |
||||||||||||||||||||||||||
Total |
1,067.7 |
1,071.1 |
-0.3% |
3,309.5 |
3,268.0 |
1.3% |
||||||||||||||||||||||||||