Under pressure to pay down debt even faster, The McClatchy Co. said late Tuesday it was suspending its quarterly dividend for the "foreseeable future" after making one last payout.
Sacramento, Calif.-based McClatchy said it "will suspend its quarterly dividend after paying the first quarter 2009 dividend for the foreseeable future in order to preserve cash for debt repayment.
"Numerous publicly traded newspaper companies have either reduced their dividend, as The New York Times Co. did recently, or eliminated it altogether.
Among those eliminating the dividend at least temporarily were Lee Enterprises and GateHouse Media. McClatchy said it would pay a cash dividend of nine cents per share payable April 1 to stockholders of record at the close of business on March 11.
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Tuesday, January 27, 2009
McClatchy to pay 9 cent dividend this quarter, suspends subsequent quarterly dividends
McClatchy announced it will pay a 9 cent dividend this quarter, then suspend subsequent dividend payments indefinitely. Editor & Publisher has the details:
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9 comments:
"There was a land of Publishers and Editors called the Newspaper Business... Here in this pretty world Journalism took its last bow... Here was the last ever to be seen of Reporters and their Enablers, of Anonymous Sources and of Stringers... Look for it only in books, for it is no more than a dream remembered. A Civilization Gone With the Wind..."
With apologies to Margaret Mitchell.
Walter Abbott
This is a sign of the end. When the company has to scrape up nickels and dimes from elderly stocholders who live on the dividends of their investments, it shows how desparate MNI has become. I expect a further announcement soon of yet more layoffs because this cost-cut won't provide the money MNI needs to make its debt payments, even at the lower rearranged rate. Also watch as the stock collapses Wednesday into penny sheet levels.
Frankly, Scarlett...
Not a bad take. $800,309.52 quarterly bonus for the top 10 insiders base on what they have actually reported. Of course this doesn't account for what they will make including their latest round of stock options, but it still represents 26 Copy Editors for a year.
After the Monday announcements of up to 50,000 jobs to be lost for major companies, its only a matter of when the next round of cuts will happen.
We know MNI will report on Thursday Feb 5 to the street, so word of cuts could come as early as Monday Feb 9 as the latest steps taken to save money.
Would not be suprised if papers have another round of price increases to their papers, selling of land or other property, inaddition of jobs cust and maybe not matching 401K
I would love to sit in on a Pruitt/MNI financial meeting. What must they talk about? Getting out of town without being tarred and feathered!
Pruitt has to go, who could possibly be still defending his management of this company?
I am afraid this next MNI layoff round will be more severe than the employees anticipated. A poster’s comment caught my attention. “The blood on the floor at Gannett AZ, will look like child’s play, compared to the bloodbath at McClatchy FL.”
I despise rumors, but the ADN puts a lot of stock in them. Perhaps they have the right approach. The rumor will not die, MNI has to prove to us the rumor is false.
Remember this headline Pru?
McClatchy Employees Cheer Iraqi Shoe Tosser as Stock Plunges 99%
Shoes coming your way ole boy,
while the journalists cheer.
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