MCLEAN, Va.--(BUSINESS WIRE)--Dec. 7, 2011--
Gannett (NYSE: GCI) executives at the UBS Media and Communications
Conference today updated key developments in the company’s businesses
particularly its digital strategy. Management also provided preliminary
results for the fourth quarter and the company’s outlook for 2012.
CareerBuilder, which is 53 percent owned by Gannett, also presented.
Gracia Martore, Gannett’s president and chief executive officer,
discussed the company’s unique position in the media landscape.
“Gannett remains strong and I am confident in our future. We will
continue to be successful and create growth by leveraging attributes
unique to Gannett – our powerful local and national brands and our
scale,” Ms. Martore noted. “We are revitalizing our local news
organizations, building out our portfolio into high potential adjacent
businesses, and continuing to make smart investments for growth. We are
taking what we do well and putting it to work to strengthen our
company.” Ms. Martore highlighted several new initiatives including the
USA TODAY Sports Media Group, Gannett Publishing Services and content
monetization.
Matt Ferguson, chief executive officer of CareerBuilder, reviewed its
business model, market position in the U.S. and internationally and the
online employment outlook. “The demand we see for our products and
services and ongoing conversations with employers point to continued
growth for our business,” he noted. “We plan on continuing to grow core
job posting and resume database offerings as well as many new services
as we move into 2012. CareerBuilder has delivered strong growth in an
anemic jobs market. Needless to say, we see significant growth potential
in a more robust economy both in the U.S. and abroad.”
“Looking to 2012, employers are likely to remain watchful, but
optimistic, as they assess the impact of rising energy costs, the
European debt crisis and other factors,” he continued. “Barring any
major economic upsets, we expect 2012 to bring a better hiring picture
than 2011 especially in the second half of the year.”
David Payne, Gannett’s chief digital officer, reviewed the company’s
digital strategy. “To continue to best position Gannett for a successful
digital future, we have an aggressive roadmap to develop next generation
mobile, tablet and browser experiences for USA TODAY and our 100 plus
properties. We are also integrating our back end editorial, publishing
and advertising platforms. Ultimately, this investment in systems will
enable more rapid product development and keep Gannett at the forefront
of digital innovation and drive new revenue for the company,” he said.
Chief Financial Officer Paul Saleh provided a summary of revenue results
for each of the company’s business segments for the fourth
quarter-to-date and reviewed operating assumptions for the upcoming
year. “We have been operating in a challenging economic environment
throughout the year although we have seen a slight improvement in
business activity recently. We remain focused on enhancing returns on
our existing assets. At this point, we are very comfortable with the
current consensus of earnings per share estimates of 69 cents.
Speeches by the Gannett executives will be available by Webcast for 30
days at www.gannett.com.
Attached to this release and posted on the company’s Web site under
Investor Relations are Gannett’s operating assumptions for 2012.
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating
assumptions for 2012, may be deemed “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995. The
forward-looking statements contained in this press release, including
the operating assumptions, are subject to a number of risks and
uncertainties that could adversely affect the company’s ability to
obtain these results include, without limitation, the following factors:
(a) increased consolidation among major retailers or other events which
may adversely affect business operations of major customers and depress
the level of local and national advertising; (b) a continuance of the
generally soft economic conditions in the U.S. and the UK or a further
economic downturn leading to a continuing or accelerated decrease in
circulation or local, national or classified advertising; (c) a further
decline in general newspaper readership and/or advertiser patterns as a
result of competitive alternative media or other factors; (d) an
increase in newsprint or syndication programming costs over the levels
anticipated; (e) labor disputes which may cause revenue declines or
increased labor costs; (f) acquisitions of new businesses or
dispositions of existing businesses; (g) a decline in viewership of
major networks and local news programming; (h) rapid technological
changes and frequent new product introductions prevalent in electronic
publishing; (i) an increase in interest rates; (j) a weakening in the
British pound to U.S. dollar exchange rate; (k) volatility in financial
and credit markets which could affect the value of retirement plan
assets and the Company’s ability to raise funds through debt or equity
issuances; (1) changes in the regulatory environment; (m) an other than
temporary decline in operating results and enterprise value that could
lead to further non-cash goodwill, or other intangible asset or
property, plant and equipment impairment charges; (n) credit rating
downgrades, which could affect the availability and cost of future
financing; and (o) general economic, political and business conditions.
Other risk factors that could cause actual results to differ materially
from these forward-looking statements are disclosed from time to time in
the Company’s current and periodic SEC reports. Any forward-looking
statements in this press release should be evaluated in light of these
important risk factors.
Gannett is not responsible for updating the information contained in
these assumptions beyond the published date, or for changes made to the
assumptions by wire services, Internet service providers or other media.
About Gannett
Gannett Co., Inc. (NYSE: GCI) is an international media and marketing
solutions company that informs and engages more than 100 million people
every month through its powerful network of broadcast, digital, mobile
and publishing properties. Our portfolio of trusted brands offers
marketers unmatched local-to-national reach and customizable, innovative
marketing solutions across any platform. Gannett is committed to
connecting people – and the companies who want to reach them – with
their interests and communities. For more information, visit www.gannett.com.
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GANNETT CO., INC.
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OPERATING ASSUMPTIONS – 2012
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Publishing
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A. Headcount down low single digits primarily due to carryover
effect of actions taken during 2011.
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B. Other costs down low to mid-single digits.
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Broadcast
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A. Headcount will be up slightly.
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B. Costs are expected to be up mid-single digits.
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Digital
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A. Headcount up mid-single digits.
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B. Costs will be up high single digits to low-teens including
one-time infrastructure investments.
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Newsprint
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A. Domestic expense will decline in the low single digits due
primarily to lower usage.
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B. Newsquest expense will decline in the low single digits due
primarily to lower usage.
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CONSOLIDATED GANNETT (Including
Acquisitions)
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A. Capital Expenditures
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1. 2012 Plan
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$90,000,000 (includes one-time infrastructure investments)
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2. 2011 Estimate
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$75,000,000 - $80,000,000
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B. Depreciation
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1. 2012 Plan
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$160,000,000
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2. 2011 Estimate
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$166,300,000
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C. Amortization of Intangibles
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1. 2012 Plan
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$31,200,000
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2. 2011 Estimate
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$31,500,000
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D. Benefit Costs
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1. Pension expense will be above 2011 depending on the final return
on assets for 2011.
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2. Health care costs will be slightly above 2011.
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E. Interest Expense
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We expect our debt at the beginning of the year in the range of
$1.75 - $1.8 billion. For budget purposes only, we have assumed that
all of our free cash flow, after dividends and share repurchases,
will be used to pay down debt.
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F. Tax Rate
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The tax rate for 2012 will be approximately 35.0%, depending on the
mix of earnings and potential tax audit settlements and tax reserve
releases.
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Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating
assumptions for 2012, may be deemed “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995. The
forward-looking statements contained in this press release, including
the operating assumptions, are subject to a number of risks and
uncertainties that could adversely affect the company’s ability to
obtain these results include, without limitation, the following factors:
(a) increased consolidation among major retailers or other events which
may adversely affect business operations of major customers and depress
the level of local and national advertising; (b) a continuance of the
generally soft economic conditions in the U.S. and the UK or a further
economic downturn leading to a continuing or accelerated decrease in
circulation or local, national or classified advertising; (c) a further
decline in general newspaper readership and/or advertiser patterns as a
result of competitive alternative media or other factors; (d) an
increase in newsprint or syndication programming costs over the levels
anticipated; (e) labor disputes which may cause revenue declines or
increased labor costs; (f) acquisitions of new businesses or
dispositions of existing businesses; (g) a decline in viewership of
major networks and local news programming; (h) rapid technological
changes and frequent new product introductions prevalent in electronic
publishing; (i) an increase in interest rates; (j) a weakening in the
British pound to U.S. dollar exchange rate; (k) volatility in financial
and credit markets which could affect the value of retirement plan
assets and the Company’s ability to raise funds through debt or equity
issuances; (1) changes in the regulatory environment; (m) an other than
temporary decline in operating results and enterprise value that could
lead to further non-cash goodwill, or other intangible asset or
property, plant and equipment impairment charges; (n) credit rating
downgrades, which could affect the availability and cost of future
financing; and (o) general economic, political and business conditions.
Other risk factors that could cause actual results to differ materially
from these forward-looking statements are disclosed from time to time in
the Company’s current and periodic SEC reports. Any forward-looking
statements in this press release should be evaluated in light of these
important risk factors.
Gannett is not responsible for updating the information contained in
these assumptions beyond the published date, or for changes made to the
assumptions by wire services, Internet service providers or other media.
Source: Gannett
Gannett
For investor inquiries, contact:
Jeffrey Heinz
Director,
Investor Relations
703-854-6917
jheinz@gannett.com
or
For
media inquiries, contact:
Corporate Communications
703-854-6044
