McClatchy revises earnings to reflect big write-off

The McClatchy Co. released its revised second-quarter earnings Friday, incorporating a non-cash “impairment” charge reflecting the Sacramento media company’s continuing struggles. McClatchy, which owns The Kansas City Star, The Wichita Eagle, The Sacramento Bee and 25 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, which said earlier that a big charge was coming, ended up losing $296.5 million, or $3.39 a share. 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.

The Sacramento Bee

This story was originally published August 7, 2015 at 9:55 PM with the headline "McClatchy revises earnings to reflect big write-off."