McClatchy Reports Third Quarter 2010 Earnings

Released: 10/19/2010

SACRAMENTO, Calif. -- The McClatchy Company (NYSE: MNI) today reported net income in the third quarter of 2010 of $12.1 million or 14 cents per share. Adjusted earnings(1) in the third quarter of 2010, excluding unusual items, were $10.6 million or 12 cents per share.
In the third quarter of 2009 the company's earnings from continuing operations were $23.6 million or 28 cents per share. Adjusted earnings from continuing operations(1) in the third quarter of 2009, excluding unusual items, were $11.0 million or 13 cents per share.

Unusual items affecting the third quarter results in each year are discussed below.

Revenues in the third quarter of 2010 were $327.7 million, down 5.7% from revenues of $347.4 million in the third quarter of 2009. Advertising revenues were $249.1 million, down 6.4%, and circulation revenues were $66.4 million, down 3.8%.

Cash operating expenses (a non-GAAP term which is discussed below) in the third quarter, excluding severance costs, declined $10.7 million, or 4.2%, from the 2009 third quarter.

Management noted that earnings in the third quarter of 2010 benefited from the reversal of tax reserves and related interest as tax years in certain states closed.

First Nine Months Results:

Income from continuing operations in the first nine months of 2010 was $17.4 million or 20 cents per share. Adjusted earnings from continuing operations,(1) excluding several unusual items discussed below, were $23.6 million or 28 cents per share. Total net income, including discontinued operations, was $21.4 million or 25 cents per share.

Income from continuing operations for the first nine months of 2009 was $27.9 million, or 33 cents per share, and was affected by the unusual items discussed below. Adjusted earnings from continuing operations(1) were $11.0 million, or 13 cents per share, in the first nine months of 2009.

Revenues in the first nine months of 2010 were down 6.8% to $1.0 billion compared to $1.1 billion in the 2009 period. Advertising revenues in the 2010 period totaled $762.6 million, down 8.6%, and circulation revenues were $203.7 million, down 1.5%.

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