The McClatchy Company announced unaudited consolidated earnings results for the second quarter and six months ended June 26, 2016. On a GAAP basis, the company reported a net loss in the second quarter of 2016 of $14.7 million, or $1.89 per share. In the second quarter of 2015, the company reported a net loss of $296.5 million, or $33.91 per share, which included a non-cash impairment of goodwill and other intangible assets of $300.4 million. Total revenues in the second quarter of 2016 were $242.2 million, down 7.7% compared to the second quarter of 2015 revenue of $262.360 million. Debt at the end of the second quarter of 2016 was $906.5 million. Operating loss was $2.693 million against $288.966 million a year ago. Loss before income taxes was $19.465 million against $299.997 million a year ago. Operating cash flow was $39.272 million against $41.468 million a year ago. Net loss from continuing operations was $14.734 million against $296.497 million a year ago. Adjusted net loss from continuing operations was $1.485 million against profit of $0.130 million a year ago. Capital expenditures were $5.176 million.

Total revenues for the first six months of 2016 were $480.2 million, down 7.6% compared to the first six months of 2015 of $519.538 million. The adjusted loss in the first half of 2016 was $9.4 million, a $0.8 million decline from the first half of 2015. On a GAAP basis, the company reported a net loss for the first six months of 2016 of $27.5 million, or $3.48 per share, compared to a net loss for the first six months of 2015 of $307.8 million or $35.25 a share, which included a non-cash impairment of goodwill and other intangible assets of $300.4 million. Operating loss was $8.740 million against $290.124 million a year ago. Loss before income taxes was $42.321 million against $318.996 million a year ago. Operating cash flow was $65.046 million against $68.712 million a year ago. Net loss from continuing operations was $27.475 million against $307.843 million a year ago. Adjusted net loss from continuing operations was $9.373 million against $8.617 million a year ago.

The company reaffirms the guidance provided for all of 2016. Digital-only advertising revenue is expected to grow at a double-digit rate in the second half of 2016. While the company remains committed to communicating the value of print advertising, the declining trends in direct marketing and print advertising are not
anticipated to subside in the next two quarters. Management expects print advertising revenues will continue to become a smaller portion of advertising and total revenues. Audience revenues are expected to be relatively flat for all of 2016. Management will be vigilant in reducing legacy costs and finding efficiencies and expect cash expenses to decline in the second half and full year 2016. Management will also remain focused on growing digital revenues, stabilizing operating cash flow, reducing debt and interest costs and creating shareholder value.