McClatchy flies on the back of Outstanding Earnings

The McClatchy Company (NYSE:MNI) has traded as high as $2.86 during today�s trading session and last traded at $2.76 for a gain of 23.21% from yesterday�s close� MNI shares traded as high as $5.35 over the past 52 weeks, which is 48.41% over that high at last traded stock price.�Get my next ALERT 100% FREE

McClatchy today reported net income from continuing operations in the fourth quarter of 2011 of $42.0 million, or 49 cents per share, compared to income of $15.7 million, or 18 cents per share in the 2010 quarter. Total net income in 2010 including discontinued operations was $14.8 million or 17 cents per share in the fourth quarter.

Revenues in the fourth quarter of 2011 were $351.4 million, down 5.0% from the fourth quarter of 2010. Advertising revenues were $270.9 million, down 5.7% from 2010, and circulation revenues were $67.0 million, down 3.0%.

Results in the fourth quarter of 2011 included the following items:

• Non-cash impairment charges of $3.1 million ($1.9 million after-tax) recorded in other operating expenses related to assets sold and intangible assets.
• Accelerated depreciation and certain cash charges totaling $2.1 million ($1.3 million after-tax) primarily related to relocating Miami newspaper operations.
• Severance charges totaling $0.6 million ($0.4 million after-tax) related to continued restructuring of the company’s operations.
• A gain on the extinguishment of debt totaling $1.3 million ($0.8 million after-tax) related to bonds repurchased in the open market.
• A favorable adjustment totaling $0.4 million ($0.2 million after-tax) primarily related to the reversal of interest accruals resulting from the expiration of open tax years.
• A favorable adjustment to the tax provision of $1.4 million primarily related to the recognition of a tax loss carryforward.

Net income from continuing operations in the fourth quarter of 2011 excluding the net impact of these items was $43.2 million compared to net income from continuing operations in the fourth quarter of 2010 adjusted for similar items of $33.5 million. (Non-GAAP measurements are discussed below).

Operating cash expenses, excluding charges associated with restructuring plans, declined $22.8 million, or 9.2%, from the 2010 quarter. Operating cash flow, a non-GAAP measure, was $125.2 million in the fourth quarter of 2011, up 3.6%.