McClatchy (MNI) Bleeding To Death
McClatchy (MNI), the large newspaper chain, reported dismal results for the month of Octobers. The company reported both consolidated advertising and total revenues in October 2007 decreased 9.9%.. Classified advertising fell almost 20% and real estate classified revenue fell almost…
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McClatchy (MNI), the large newspaper chain, reported dismal results for the month of Octobers. The company reported both consolidated advertising and total revenues in October 2007 decreased 9.9%..
Classified advertising fell almost 20% and real estate classified revenue fell almost 30%.
Revenue in the company’s large California newspaper group was down 19%.
It is very hard to imagine that the company can continue to handles its debt service in 2008 if its numbers keep falling at this rate. The company has long-term debt of about $2.6 billion and had interest expenses of over $48 million last quarter on pro forma operating income of just over $90 million.
With debt at that level and revenue running off close to 10%, MNI can’t last in its current configuration for long. It is going to have to start selling assets as fast as it can.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
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A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.