The McClatchy Company

Balance Sheet 

• Sold 25.6% interest in Classified Ventures to Gannet; resulted in proceeds of $631.8MM; expect after tax proceeds to be around $406MM
• Pro Forma cash including after-tax proceeds from Cars.com transaction is $596MM (225.1MM pre)
• Provide Co. with the liquidity to execute on digital transformation, reduce debt, and fund other corporate uses

Operations

• Poor print retail environment performance, substantial decline in national advertising
• Growth in revenues in digital advertising and audience revenues; digital only revenues grew 9.1% excluding the impact of the sales of Apartment.com
• Non-print advertising accounted for 64% of revenue and grew by 0.5%

Financial Summary

• LTM Revenue: $1.25bn
• LTM EBITDA: $243mm (19.8% margin)
• LTM FCF: $92mm (6% of total debt)
• Total Debt: $1.56bn
• LTM net total leverage: 5.3x
• Total Liquidity: $300mm; $265mm cash on hand

Market Comparables

Revenue and EBITDA Margin

Follow Up

• Credit Profile Over Time
  • Debt Payoff Projections
  • Total Debt / EBITDA Projections