The McClatchy Co. today reported lower profits and revenue for the fourth quarter, citing disappointing December holiday advertising.
Sacramento-based McClatchy, which owns The Bee, said profits excluding one-time adjustments fell to $33.8 million from $43.2 million.
The one-time adjustments - including a $60 million after-tax loss because of the costs of a major debt refinancing - plunged McClatchy into a bottom line, net income loss for the quarter and all of 2012.
Revenue actually grew 1.2 percent during the quarter, but that was because the 2012 quarter had 14 weeks vs. the 13 weeks for the 2011 quarter. On a comparable basis, revenue fell 5.3 percent and advertising revenue fell 6.3 percent.
The results showed that McClatchy, while making progress, has still been unable to shake an advertising downturn that has gripped much of the traditional media industry since 2006. Ad revenue fell 6.1 percent for all of 2012, compared to a drop of 7.7 percent the year before.
"In spite of a softer-than-expected Christmas season for our advertisers, our ad revenue picture improved through most of 2012," said President and Chief Executive Pat Talamantes in a prepared statement.
On a per-share basis, the company lost 35 cents in the fourth quarter compared to a profit of 49 cents the year before.
For the full year, the company lost $100,000 compared to a gain of $54.4 million in 2011.
The bottom line numbers were skewed by millions spent refinancing debt. In early December, the company said it was able to refinance about $846 million in bonds, or roughly half its total debt.
The move pushed back the maturity on those bonds five years, to 2022, giving McClatchy additional breathing room as it deals with the advertising slump and the ongoing transition to a hybrid print-digital world.
During the fourth quarter, digital advertising grew 3.5 percent. Online advertising now makes up 20.2 percent of all McClatchy advertising.
McClatchy stock fell 10 cents a share to $2.90 in early New York Stock Exchange trading.
© Copyright The Sacramento Bee. All rights reserved.
Read more articles by Dale Kasler
What You Should Know About Comments on Sacbee.com
Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)
Here are some rules of the road:
Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "Report Abuse" link to notify the moderators. Responding to the comment will only encourage bad behavior.
Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.
Do not attack other users; focus your comments on issues, not individuals.
Stay on topic. Only post comments relevant to the article at hand.
Do not copy and paste outside material into the comment box.
Don't repeat the same comment over and over. We heard you the first time.
Do not use the commenting system for advertising. That's spam and it isn't allowed.
Don't use all capital letters. That's akin to yelling and not appreciated by the audience.
Don't flag other users' comments just because you don't agree with their point of view. Please only flag comments that violate these guidelines.
You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "Report Abuse" link to submit those comments for moderator review. You also may notify us via email at email@example.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.
If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them.