The McClatchy Co. released its revised second-quarter earnings Friday, incorporating a non-cash “impairment” charge reflecting the Sacramento media company’s ongoing struggles.
McClatchy, which owns The Sacramento Bee and 28 other newspapers, said it took an estimated charge of $296.6 million in the quarter. The charge reflects declining asset values and recent declines in its stock price.
The charge won’t affect McClatchy’s cash position, but it wipes out the company’s $98,000 profit previously reported for the quarter. McClatchy ended up losing $296.5 million, or $3.39 a share.
McClatchy warned that a charge was coming when it announced its earnings in July, but at the time it hadn’t done the calculations. Friday’s report is still an estimate, and the results could be adjusted sometime in the current quarter.
The company’s shares closed Friday at 97 cents, up 10 cents, on the New York Stock Exchange.