McClatchy Discusses Strategies And 2015 Outlook Today At East Coast Ideas Investor Conference

SACRAMENTO, Calif., June 3, 2015 /PRNewswire/ -- The McClatchy Company MNI said that it will provide an update on the company's strategies and outlook for 2015 in a presentation today at the 2015 East Coast IDEAS Investor Conference at the Boston Park Plaza in Boston at 10 a.m. Eastern, 7 a.m. Pacific time.

The company's presentation will be webcast live on its website, www.mcclatchy.com, and at: http://bit.ly/1Q1Hr5O. The webcast will be archived at McClatchy's website for future reference. 

Pat Talamantes, McClatchy's president and CEO, said, "2015 is the year our digital transformation has taken on an accelerated pace. We are working on many initiatives and strategies to drive the changes needed to remain the leading local media company in each of the markets we serve. We are intensely focused on driving non-traditional revenues while also reducing legacy costs and we continue to retain our commitment to reducing debt."

Talamantes continued, "As a result of our efforts, we expect to improve digital, direct marketing and audience revenues. Revenue initiatives include adding resources to our digital sales team, revamping our sales forces and growing our impressLOCAL product to provide agency services to small and medium-sized advertisers in our markets. We are realigning and improving our content delivery on all platforms, from the printed newspaper to our websites and mobile. And we are expanding our video efforts to improve storytelling and generate additional advertising revenues from that fast-growing medium. Our cost initiatives are focused on reducing legacy costs, primarily in production and distribution, including substantial savings in newsprint costs. We expect to achieve $25 million to $30 million of cost savings in 2015 from these specific initiatives. We expect the savings to build over the course of the year."

For full year 2015 the company expects digital-only advertising revenues to grow in the double-digit range (on a gross basis) and expects growth in direct marketing revenues. Audience revenues are expected to grow in the low single-digit range. Cash expenses are expected to decline in the low-to-mid single-digit range. Cash flow performance in the second quarter of 2015 will be challenging as a result of continued declines in print advertising. Through revenue and cost reduction efforts, cash flow is expected to flatten in the second half of 2015 on a year-over-year basis.

Management expects capital expenditures of approximately $20 million in 2015 and cash interest payments are estimated to be approximately $82 million in 2015, a savings of $40 million compared to 2014. The company does not expect to make a pension contribution in 2015 and will continue to focus on using its free cash flow to reduce debt.

About McClatchy

The McClatchy Company is a 21^st century news and information leader, publisher of iconic brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. McClatchy operates media companies in 28 U.S. markets in 14 states, providing each of its communities with high-quality news and advertising services in a wide array of digital and print formats. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange under the symbol MNI.

Additional Information

Statements in this press release regarding future financial and operating results, including revenues, anticipated savings from cost reduction efforts, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet debt covenants as expected; we may not be successful in the reducing debt whether through tenders offers, open market repurchase programs or other negotiated transactions; transactions may not close as anticipated or result in cash distributions in the amount or timing anticipated; McClatchy may not successfully implement audience strategies designed to increase audience revenue and may experience decreased audience volumes or subscriptions; McClatchy may experience diminished revenues from retail, classified, national and direct marketing advertising; McClatchy may not achieve its expense reduction targets including efforts related to legacy expense initiatives or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; bankruptcies or financial strain of its major advertising customers; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; changes in pension assets and liabilities; changes in factors that impact pension contribution requirements, including, without limitation, the value of the company-owned real property that McClatchy has contributed to its pension plan; increased consolidation among major retailers in our markets or other events depressing the level of advertising; our inability to negotiate and obtain favorable terms under collective bargaining agreements with unions; competitive action by other companies; an inability to fully implement and execute its share repurchase plan; and other factors, many of which are beyond our control; as well as the other risks detailed from time to time in the company's publicly filed documents, including the company's Annual Report on Form 10-K for the year ended Dec. 28, 2014, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

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SOURCE The McClatchy Company