SACRAMENTO, Calif.,
Sept. 13, 2019 /PRNewswire/
-- The McClatchy Company (NYSE
American-MNI) announced today that on September 9, 2019, it received a notice from NYSE
American LLC ("NYSE American") indicating that the Company is not
currently in compliance with certain listing standards, and as
noted below, has approximately 18 months to become compliant under
a plan that is subject to approval by NYSE American.
McClatchy is below compliance with Sections 1003(a)(i) and
1003(a)(ii) of the NYSE American continued listing standards since
it reported stockholders' deficit of $372.5
million as of June 30, 2019
and net losses in each of the four most recent fiscal years ended
December 30, 2018. However, NYSE
American will not normally consider suspending dealings in, or
removing from the list, the securities of an issuer which is below
the continued listing standards set forth in Sections
1003(a)(i)-(iii) if the issuer meets certain other criteria,
including, among others, total assets and revenues of $50 million in the last fiscal year or in two of
the last three fiscal years, and a market value of publicly held
shares (as defined by NYSE American) of at least $15 million.
The Company intends to submit a plan to NYSE American by
October 9, 2019 advising how the
Company plans to regain compliance with the continued listing
standards by March 9, 2021.
If NYSE American does not accept the plan or the Company
is not in compliance with the continued listing standards as of
March 9, 2021, or does not make
progress consistent with the plan, NYSE American may initiate
delisting procedures.
The NYSE American notification does not affect the Company's
business operations or its Securities and Exchange Commission
reporting requirements and does not conflict with or cause an event
of default under any of the Company's material debt agreements.
During this period, the Company's common stock will continue to be
traded on the NYSE American with the added designation of ".BC" to
indicate that the Company is not in compliance with the NYSE
American's continued listing standards, subject to compliance with
other continued NYSE American listing requirements.
About McClatchy
McClatchy operates 30 media companies in 14 states, providing
each of its communities with strong independent local journalism in
the public interest and advertising services in a wide array of
digital and print formats. McClatchy publishes iconic local brands
including the Miami Herald, The Kansas City Star, The Sacramento
Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the
Fort Worth Star-Telegram. McClatchy is headquartered in
Sacramento, Calif., and listed on
the New York Stock Exchange American under the symbol MNI.
#ReadLocal
Additional Information
Statements in this press release regarding future financial and
operating results and any other statements about management's
future expectations, beliefs, goals, investments, plans or
prospects constitute forward-looking statements as defined in 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; we may not be successful in reducing debt whether through
open market repurchase programs or other negotiated transactions;
we may not regain compliance with the continued listing standards
of the NYSE American and may not remain listed on the NYSE
American; we may not be successful in obtaining waiver(s) for
minimum pension plan contributions from the Internal Revenue
Service; sales of real estate properties 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 revenues and may
experience decreased audience volumes or subscriptions; McClatchy
may experience diminished revenues from 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; potential increases in
contributions to McClatchy's qualified defined benefit pension plan
in the next several years; 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; and other factors, many of which are
beyond our control; as well as the other risks listed in the
company's publicly filed documents, including the company's Annual
Report on Form 10-K for the year ended December 30, 2018. Except as required by law,
McClatchy disclaims any intention and assumes no obligation to
update the forward-looking information contained in this
release.
Contact:
|
Elaine Lintecum, VP
Finance and CFO
|
|
916-321-1846
|
|
elintecum@mcclatchy.com
|
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SOURCE McClatchy