McClatchy reports fourth quarter loss

McClatchy on Tuesday reported a fourth-quarter loss of $279.3 million after taking a hit on the sale of the Star Tribune. CEO Gary Pruitt says it will last through the first half of 2007. He declines to make projections beyond June.

Here’s the lead on the McClatchy press release:

SACRAMENTO, Calif.. -- The McClatchy Company today reported fourth quarter 2006 income from continuing operations of $75.5 million, or 92 cents per share. A loss from discontinued operations of $354.8 million, or $4.33 per share was recorded in the quarter relating to the results of the Star Tribune newspaper which the company is selling. The loss from discontinued operations includes a $363.0 million after tax write-down of the net assets of the Star Tribune to the agreed-upon selling price. The company's total net loss for the 2006 quarter was $279.3 million, or $3.41 per share, including discontinued operations.

The company's fiscal 2006 reporting period is a 53-week year versus a 52-week year in 2005, and as a result, the fiscal fourth quarter of 2006 includes 14 weeks compared to 13 weeks in the 2005 fiscal quarter. The company estimates that income from continuing operations is higher by approximately $5.3 million in 2006 because of the additional week being reported.

Results of the Star Tribune newspaper are shown as discontinued operations for all periods presented (including 2005) due to its impending sale. Income from continuing operations was $34.1 million, or 73 cents per share, in the fourth quarter of 2005. Net income in the fourth quarter of 2005 was $45.4 million, or 97 cents per share, including income from discontinued operations of $11.3 million, or 24 cents per share.

There is much information in the press release on the Knight Ridder acquistion and sale of 12 of those newspapers. Click on the headline to see the press release.