“The Street will no longer be satisfied with earnings pumped up only by continual cost-cutting. Gannett (GCI) handily beat Street estimates of earnings – but its overall earnings, in a quarter when its broadcast properties were humming nicely, was down 1.6%. … GCI got hammered for those results Friday, falling more than 10 percent.”

Gannet’s print and circulation revenues were down for the quarter also.

Other publishers’ stocks are also down as their 2Q reports come in the next several days, Fitzgerald says.

But, Mark Siffin isn’t advertising in the company’s newspapers. He wants land McClatchy owns so he can build a parking garage and erect a pair of 20-story-tall electronic billboards on top of it, according to the South Florida Business Journal.

Siffin will pay $230 million for 10 acres owned by McClatchy’s Miami Herald. He plans to build the garage and a retail center next door. He has already paid McClatchy $16 million toward the purchase, which included an extension on the contract to close in 2011.

Siffin still has to get a city commission to approve a new ordinance allowing the electronic billboards. Some residents oppose them.

Regardless, McClatchy gets to sell land it has been trying to unload for some time at a good price; the same lot was under contract for $190 million in 2005, the height of the real estate market, according to the Journal.

You’d think $230 million could save a lot of journalists’ jobs, but you wouldn’t want to bet on it.

The publisher’s first quarter report on Thursday showed improvement, thanks to reduced expenses — obtained chiefly through layoffs, which may not be over  — and an advertising climate that isn’t as bad as it was.

But the bottom line was  “a net loss from continuing operations of $2 million, or 2 cents per share,” the Business Journal says. “In the same period last year, the company incurred a net loss from continuing operations of $37.7 million, or 45 cents per share.

“Without the charges, McClatchy earned $4.8 million, or 6 cents a share, for the quarter, compared to a loss of $22.9 million, or 28 cents a share, in first-quarter 2009.”

The Associated Press report, on the other hand, says “a one-time accounting gain related to newspapers that it sold a few years ago” allows McClatchy to claim a profit for the quarter. “[N]et income, including discontinued operations, came to $2.2 million, or 3 cents per share,” the AP says. It lost $37.5 million, or 45 cents per share, in the same period a year earlier, which included charges for severance.

Advertising revenue dropped 11.2 percent to $253 million, better than the 20.5 percent drop in the fourth quarter of 2009. In last year’s third quarter, ad revenue fell 28.1 percent.

Total revenue for the quarter was 8.2 percent less than a year ago, at $335.6 million compared to $365.6 million.

McClatchy’s stock fell following the report, perhaps, Benchmark Co. media analyst Edward Atorino told the AP, because “some investors may have been looking for more details about how McClatchy plans to cut costs, given that it expects further revenue declines.”

The company’s  costs, excluding severance payments, declined more than 21 percent in the first quarter, compared with the same period a year earlier, largely because of lower payroll and newsprint expense, the AP said. McClatchy has cut about a third of its work force since the middle of 2008.

“In a statement, McClatchy CEO Gary Pruitt said the company ‘will remain vigilant’ on costs but acknowledged that second-quarter expenses will not decline the way they did in the first,” the AP said. “During a conference call, Pruitt said the company would try to avoid further job cuts, but he didn’t rule them out.”

The debt restructuring involved extending  “approximately $1 billion in maturities from mid-2011 to mid-2013 and beyond, including the $875 million of senior secured notes due in 2017,” Pat Talamantes, McClatchy’s chief financial officer, said in the release.

McClatchy’s debt remains from its $4.5 billion purchase in 2006 of the much-larger Knight-Ridder newspaper chain.

McClatchy’s stock fell $0.75, or 10.98 percent, to close at $6.08 Thursday.

“Gannett did not issue formal earnings guidance for the current quarter or the rest of the year, and CEO Craig Dubow declined to give specifics on how ad revenue is shaping up in April,” The Associated Press said. “But he told analysts on a conference call that the year was ‘off to a great start.’ He added: ‘The momentum that we had at the end of the year continued through the first quarter.’

“Gannett was the first major publisher to report earnings for the January-March period and could offer a preview of what will come next week from McClatchy Co., Lee Enterprises Inc. and The New York Times Co.”

After surging to a new 52-week high of $19.68 in early trading, Gannett shares retreated to $18.04 Friday afternoon, down $0.10 on the day. McClatchy rose $0.42 to $6.46, and Lee shares jumped $0.31 to $4.35. The New York Times was down $0.36 to $12.35.

Gannett, which owns USA Today and more than 80 other daily newspapers along with TV stations, said its net income jumped 51 percent despite a 4 percent decline in revenue. Last year it cut 1,400 jobs, or about 3 percent of its work force.

As for McClatchy, which reports April 22, “JP Morgan forecasts that ads will be off by 8.4 percent as circulation continues to grow,” says PaidContent.org. “While the circulation gains might not offset negativity on the ad front, cost-cuts should help margins jump to 25 percent from 1Q ’09’s 12 percent. Ebitda should rise 91 percent to $83 million.

“In general, McClatchy’s heavy presence in Florida and California means that its fortunes are directly tied to the economic winds in those two troubled states. Ultimately, that will add to the general industry-wide woes affecting the publisher.”

“Three of the 12 major advertising categories in magazines ran more magazine ad pages in the first quarter this year than in the first quarter last year: financial, insurance and real estate, which increased ad pages by 11.3 percent; toiletries and cosmetics, which increased ad pages by 7.6 percent; and automotive, which increased ad pages by a slim 1.3 percent,” the magazine says.

“The other nine big marketer categories continued to post significant drops, led by apparel and accessories, which ran 15.7 percent fewer ad pages; drugs and remedies, which ran 15.6 percent fewer ad pages; technology, which ran 14.7 percent fewer pages; media and advertising, which ran 13 percent fewer ad pages; and public transportation, hotels and resorts, which also ran 13 percent fewer ad pages.”

“Keep in mind that these comparisons are being made against a quarter last year that was wholly abysmal, with a 25.9 percent drop in ad pages by the bureau’s count,” the magazine says.

The CSM actually maintains a weekly print edition, which has seen 79 percent circulation growth since its launch, Media Jobs Daily says.

Meanwhile, the company projected $870,000 in online ad revenue in its first year, but only brought in $490,000.

“The paper also extended a buyout offer to its 85 editorial employees, and four accepted,” says the blog, which focuses on media industry employment, recruitment and career development.

“But … there’s still 81 newsmen and women working at this paper, which is a heck of a lot more than the number of people at any other online-only outfit we can think of.”

The note gives few details, but credits “better than expected advertising revenue performance and a continued focus on expenses.” The Advertising Department’s “third annual online sales blitz” racked up “more than $1 million in annualized sales,” Quarles adds.

“There are still question marks about the economy and its effect on our ad revenues, but we are seeing signs that the worst may be behind us.  We certainly hope so,” the memo says.

But the $27.6 billion in 2009 revenue looks worse when you adjust for inflation, the Associated Press’ report says. The $27 billion earned in 1986 “would equal nearly $53 billion in today’s dollars.”

On the other hand, “ad revenue in the final three months of the year fell 24 percent from a year earlier to $7.7 billion — the smallest quarterly percentage decline of 2009.

“‘Unfavorable trends for newspaper ad spending continued to diminish as the fourth quarter progressed, a sign that business conditions have begun to gradually improve,’ NAA President and CEO John Sturm said in a statement.”

It’s not much though. “The predicted turnaround will be slight, leaving radio revenue in 2014 still shy of its 2008 level,” the magazine says.

BIA/Kelsey, a consulting firm specializing in local media, says radio ad revenue is likely to see a 1.5 percent gain this year.

“The industry will continue to grow its online revenues in 2010 as increasingly more progressive radio groups recognize they are more than just over-the-air transmitters and begin to integrate cross-platform promotions with their broadcast and Web operations,” Mark R. Fratrik, VP at BIA/Kelsey, says in the report, according to Ad Age.

“Ad spending in 2009 came in at $125.3 billion, a drop of 12.3 percent compared to the prior year,” the report says, according to Crain’s New York Business.

“The good news was that fourth-quarter ad spending fell by only 6 percent. In addition, preliminary numbers for the first quarter of 2010 show most media categories doing better than they were a year ago, said Jon Swallen, a senior vice president at Kantar Media.”

This is worse than a previous report from Medill Reports that said overall U.S. advertising spending was down 9 percent for the year last year. (Kantar isn’t limiting its number to the U.S., perhaps.)

According to Kantar Media, “radio fell 20.3 percent, local television plunged 23.7 percent, magazines dropped 17.4 percent and newspapers 19.7 percent.” Network television was down 7.6 percent for the year but turned around in the fourth quarter to rise 4.1 percent. Cable TV was  down just 1.4 percent.

Internet display advertising rose 7.3 percent.

“The biggest turnaround may be taking place among newspapers,” Crain’s says. “According to Mr. Swallen, advertising is flat so far this year, which puts the category on track to record its best quarter in two-and-a-half years.”