Star parent's losses, debt put its stock exchange listing at risk
McClatchy (AMEX: MNI) shares had fallen 57 cents, or 18.2%, to $2.57 on Friday, before the company disclosed the warning it received from NYSE American LLC. The disclosure was released after the close of U.S. stock markets. McClatchy shares have fallen 64% in the past year.
NYSE American warned McClatchy on Sept. 9 that it was out of compliance with standards because it was running a “stockholders' deficit of $372.5 million as of June 30, 2019 and net losses in each of the four most recent fiscal years ended Dec. 30, 2018.”
A stockholders' deficit is the difference between a company's liabilities and assets when its liabilities are greater than assets. At the end of the second quarter, McClatchy reported assets of $1.28 billion and liabilities of $1.65 billion.
The company posted a loss last year of $79.8 million, an improvement from its 2017 loss of $332.4 million, after reducing expenses with multiple rounds of layoffs, among other measures. McClatchy's revenue declined by 11% last year to $807.2 million as its newspapers lost advertisers and subscribers.