Gary's on the phone

Well at least you can read a transcript of the McClatchy Co. Q1 Earnings Call.

With a little bit of color added by the blogger, here’s how CEO Gary Pruitt started the conversation:

Thanks, Pat. We reported first quarter earnings from continuing operations of $14.5 million or $0.18 per share compared to earnings from continuing operations of $21.8 million or $0.46 per share in the first quarter of 2006. Our results exclude the operations of the Minneapolis Star Tribune, which was sold on March 5th and is reported as a discontinued operation.

In this challenging revenue environment, we are delivering on the cost side. We reduced cash operating expenses by 6.3% in the quarter on a pro forma basis. In fact, our operating cash flow grew slightly on a pro forma basis, despite the decline in revenues. Few newspaper operations can make that claim.

Our revenues from continuing operations in the first quarter of 2007 were $566.6 million compared to revenues from continuing operations of $194.5 million in 2006. The increase, of course, in revenues reflects the addition of 20 newspapers acquired in the Knight Ridder acquisition on June 27, 2006. On a pro forma basis -- that is including all newspapers as if they had been owned since the beginning of 2006 -- revenues from continuing operations were down 5.0%. Advertising revenues were down 5.3%, and circulation revenues were down 3.6% on a pro forma basis.

Let's look at revenues by category, starting with retail.

You can look if you like. Just click on the headline above.

Pat, by the way, is Patrick Talamantes - CFO