Gannett Co., Inc. Reports Second Quarter Results
"All of
In addition to the
Results for the second quarter of 2011 included
Amounts reported in accordance with GAAP are contained in Tables 1 through 4. Certain amounts and comparisons included in the following discussion of GAAP results are supplemented by discussions which exclude the effect of special items. Details of these special items and their effect on GAAP results are included on the Non-GAAP Financial Information Tables 5 through 10 attached to this release. The company's basis for providing discussions of non-GAAP results is detailed below.
CONTINUING OPERATIONS
Net income attributable to
Total operating revenues for the company in the second quarter were
Operating expenses including the special charges noted above were
In the first quarter, the company announced a new capital allocation plan that included a 150 percent increase in the annual dividend to
PUBLISHING
Publishing segment operating revenues in the quarter were
Advertising revenues totaled
Second Quarter 2012 Year-over-Year Comparisons |
||||
U.S. Publishing (including USA TODAY) |
Newsquest (in pounds) |
Total Publishing Segment (constant currency) |
Total Publishing Segment |
|
Retail |
(7.0%) |
(4.1%) |
(6.7%) |
(7.0%) |
National |
(18.2%) |
2.6% |
(16.7%) |
(16.9%) |
Classified |
(3.7%) |
(7.1%) |
(4.6%) |
(5.3%) |
(8.3%) |
(5.2%) |
(7.8%) |
(8.1%) |
Across the Publishing segment, all categories of advertising revenue were better than first quarter year-over-year comparisons except national.
Retail advertising was 7.0 percent lower in the quarter, reflecting volatility as positive year-over-year comparisons in May did not offset softer ad demand in April and June.
National advertising declined 16.9 percent, driven by declines at
Classified advertising revenues in the U.S. were 3.7 percent lower. All domestic classified category comparisons were better than first quarter comparisons. Automotive advertising was almost 1 percent higher compared to the second quarter last year, while employment was just 0.7 percent lower. Real estate advertising was down 13.8 percent, reflecting the slow recovery in the housing market. Classified advertising comparisons, in pounds, at Newsquest were uneven in the quarter with lagging results in April and June offsetting slightly positive results in May.
The percentage changes in the classified categories were as follows:
Second Quarter 2012 Year-over-Year Comparisons |
||||
U.S. Publishing |
Newsquest (in pounds) |
Total Publishing Segment (constant currency) |
Total Publishing Segment |
|
Automotive |
0.8% |
(14.1%) |
(1.3%) |
(1.8%) |
Employment |
(0.7%) |
(4.3%) |
(1.8%) |
(2.6%) |
Real Estate |
(13.8%) |
(8.1%) |
(11.7%) |
(12.6%) |
Legal |
(3.1%) |
--- |
(3.1%) |
(3.1%) |
Other |
(7.0%) |
(5.5%) |
(6.6%) |
(7.4%) |
(3.7%) |
(7.1%) |
(4.6%) |
(5.3%) |
The positive impact of the all access content subscription model offset the anticipated decline in circulation volumes. Circulation revenue for
Reflecting the company's strategic efforts to provide digital advertising and marketing solutions as well as the impact of the new content subscription model, digital revenues were 29.3 percent higher in the Publishing segment. Digital revenues at
Despite approximately
BROADCASTING
Broadcasting revenues (which include Captivate) totaled
Television revenues increased 11.2 percent to
Broadcasting segment operating expenses were up 6.6 percent and totaled
DIGITAL
Digital segment operating revenues totaled
Digital revenues company-wide, including the Digital segment and all digital revenues generated by the other business segments, totaled
At the end of the quarter,
NON-OPERATING ITEMS
The company's equity earnings include its share of operating results from unconsolidated investees including the
Equity income in unconsolidated investees totaled
Interest expense declined 19.2 percent from last year's second quarter and totaled
Other non-operating items declined
The company reported pre-tax income attributable to
Net cash flow from operating activities was
* * * *
USE OF NON-GAAP INFORMATION
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures are not to be considered in isolation from or as a substitute for the related GAAP measures, and should be read only in conjunction with financial information presented on a GAAP basis.
In this earnings report, the company discusses non-GAAP financial performance measures that exclude from its reported GAAP results the impact of special items consisting of workforce restructuring charges, facility consolidation expenses, pension settlement charges and certain credits to its income tax provision. The company believes that such expenses and credits are not indicative of normal, ongoing operations and their inclusion in results makes for more difficult comparisons between periods and with peer group companies. Workforce restructuring and facility consolidation expenses primarily relate to incremental expenses the company has incurred to consolidate or outsource production processes and centralize other functions. These expenses include payroll and related benefit costs and accelerated depreciation. The pension settlement charges result from the acceleration of expense related to the timing of certain pension payments. The credit to the tax provision is related primarily to a tax settlement covering multiple years.
The company also discusses operating cash flow, a non-GAAP financial performance measure that it believes offers a useful view of the overall operation of its businesses. This non-GAAP measure is calculated by adding amounts associated with the special expense items described above, as well as depreciation and amortization, to operating income as reported on a GAAP basis. This earnings report also discusses free cash flow, a non-GAAP liquidity measure. Free cash flow is defined as "net cash flow from operating activities" as reported on the statement of cash flows reduced by "purchase of property, plant and equipment" as well as "payments for investments" and increased by "proceeds from investments." The company believes that free cash flow is a useful measure for management and investors to evaluate the level of cash generated by operations and the ability of its operations to fund investments in its businesses, repay indebtedness, add to the company's cash balance, or use in other discretionary activities. Management uses free cash flow to monitor cash available for repayment of indebtedness and in its discussions with the investment community.
Management uses non-GAAP financial performance measures for purposes of evaluating business unit and consolidated company performance. The company therefore believes that each of the non-GAAP measures presented provides useful information to investors by allowing them to view the company's businesses through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods, and providing a focus on the underlying ongoing operating performance of its businesses. In addition, many of the company's peer group companies present similar non-GAAP measures so the presentation of such measures facilitates industry comparisons.
Tabular reconciliations for the non-GAAP financial measures are contained in Tables 5 through 10 attached to this news release.
As previously announced, the company will hold an earnings conference call at
About
Certain statements in this press release may be forward looking in nature or "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company's
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
Gannett Co., Inc. and Subsidiaries |
||||||
Unaudited, in thousands (except per share amounts) |
||||||
Table No. 1 |
||||||
Thirteen |
Thirteen |
|||||
weeks ended |
weeks ended |
% Inc |
||||
Jun. 24, 2012 |
Jun. 26, 2011 |
(Dec) |
||||
Net Operating Revenues: |
||||||
Publishing advertising |
$ 594,262 |
$ 646,864 |
(8.1) |
|||
Publishing circulation |
263,938 |
265,433 |
(0.6) |
|||
Digital |
181,326 |
173,447 |
4.5 |
|||
Broadcasting |
205,381 |
184,353 |
11.4 |
|||
All other |
62,133 |
64,842 |
(4.2) |
|||
Total |
1,307,040 |
1,334,939 |
(2.1) |
|||
Operating Expenses: |
||||||
Cost of sales and operating expenses, exclusive of depreciation |
720,889 |
739,654 |
(2.5) |
|||
Selling, general and administrative expenses, exclusive of depreciation |
316,301 |
297,196 |
6.4 |
|||
Depreciation |
40,157 |
42,070 |
(4.5) |
|||
Amortization of intangible assets |
8,078 |
7,871 |
2.6 |
|||
Facility consolidation charges |
5,097 |
6,394 |
(20.3) |
|||
Total |
1,090,522 |
1,093,185 |
(0.2) |
|||
Operating income |
216,518 |
241,754 |
(10.4) |
|||
Non-operating (expense) income: |
||||||
Equity income in unconsolidated investees, net |
8,663 |
7,973 |
8.7 |
|||
Interest expense |
(36,142) |
(44,741) |
(19.2) |
|||
Other non-operating items |
(2,280) |
3,841 |
*** |
|||
Total |
(29,759) |
(32,927) |
(9.6) |
|||
Income before income taxes |
186,759 |
208,827 |
(10.6) |
|||
Provision for income taxes |
51,200 |
43,300 |
18.2 |
|||
Net income |
135,559 |
165,527 |
(18.1) |
|||
Net income attributable to noncontrolling interest |
(15,670) |
(14,000) |
11.9 |
|||
Net income attributable to Gannett Co., Inc. |
$ 119,889 |
$ 151,527 |
(20.9) |
|||
Net income per share - basic |
$ 0.51 |
$ 0.63 |
(19.0) |
|||
Net income per share - diluted |
$ 0.51 |
$ 0.62 |
(17.7) |
|||
Weighted average number of common shares outstanding |
||||||
Basic |
233,334 |
240,311 |
(2.9) |
|||
Diluted |
237,136 |
243,995 |
(2.8) |
|||
Dividends declared per share |
$ 0.20 |
$ 0.04 |
*** |
|||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
Gannett Co., Inc. and Subsidiaries |
||||||
Unaudited, in thousands (except per share amounts) |
||||||
Table No. 2 |
||||||
Twenty-six |
Twenty-six |
|||||
weeks ended |
weeks ended |
% Inc |
||||
Jun. 24, 2012 |
Jun. 26, 2011 |
(Dec) |
||||
Net Operating Revenues: |
||||||
Publishing advertising |
$ 1,145,700 |
$ 1,248,600 |
(8.2) |
|||
Publishing circulation |
527,274 |
533,646 |
(1.2) |
|||
Digital |
349,678 |
331,041 |
5.6 |
|||
Broadcasting |
381,554 |
348,235 |
9.6 |
|||
All other |
121,421 |
124,678 |
(2.6) |
|||
Total |
2,525,627 |
2,586,200 |
(2.3) |
|||
Operating Expenses: |
||||||
Cost of sales and operating expenses, exclusive of depreciation |
1,443,129 |
1,457,169 |
(1.0) |
|||
Selling, general and administrative expenses, exclusive of depreciation |
624,620 |
594,743 |
5.0 |
|||
Depreciation |
79,860 |
83,708 |
(4.6) |
|||
Amortization of intangible assets |
15,957 |
16,160 |
(1.3) |
|||
Facility consolidation charges |
9,885 |
14,050 |
(29.6) |
|||
Total |
2,173,451 |
2,165,830 |
0.4 |
|||
Operating income |
352,176 |
420,370 |
(16.2) |
|||
Non-operating (expense) income: |
||||||
Equity income in unconsolidated investees, net |
12,975 |
11,431 |
13.5 |
|||
Interest expense |
(75,713) |
(91,370) |
(17.1) |
|||
Other non-operating items |
(245) |
5,138 |
*** |
|||
Total |
(62,983) |
(74,801) |
(15.8) |
|||
Income before income taxes |
289,193 |
345,569 |
(16.3) |
|||
Provision for income taxes |
77,800 |
81,900 |
(5.0) |
|||
Net income |
211,393 |
263,669 |
(19.8) |
|||
Net income attributable to noncontrolling interests |
(23,281) |
(21,649) |
7.5 |
|||
Net income attributable to Gannett Co., Inc. |
$ 188,112 |
$ 242,020 |
(22.3) |
|||
Net income per share - basic |
$ 0.80 |
$ 1.01 |
(20.8) |
|||
Net income per share - diluted |
$ 0.79 |
$ 0.99 |
(20.2) |
|||
Weighted average number of common shares outstanding |
||||||
Basic |
234,807 |
240,012 |
(2.2) |
|||
Diluted |
238,774 |
243,652 |
(2.0) |
|||
Dividends declared per share |
$ 0.40 |
$ 0.08 |
*** |
|||
BUSINESS SEGMENT INFORMATION |
|||||||
Gannett Co., Inc. and Subsidiaries |
|||||||
Unaudited, in thousands of dollars |
|||||||
Table No. 3 |
|||||||
Thirteen weeks ended |
Thirteen weeks ended |
% Inc |
|||||
Jun. 24, 2012 |
Jun. 26, 2011 |
(Dec) |
|||||
Net Operating Revenues: |
|||||||
Publishing |
$ 920,333 |
$ 977,139 |
(5.8) |
||||
Digital |
181,326 |
173,447 |
4.5 |
||||
Broadcasting |
205,381 |
184,353 |
11.4 |
||||
Total |
$ 1,307,040 |
$ 1,334,939 |
(2.1) |
||||
Operating Income (net of depreciation, amortization and facility consolidation charges): |
|||||||
Publishing |
$ 104,211 |
$ 138,646 |
(24.8) |
||||
Digital |
36,531 |
36,173 |
1.0 |
||||
Broadcasting |
94,586 |
80,405 |
17.6 |
||||
Corporate |
(18,810) |
(13,470) |
39.6 |
||||
Total |
$ 216,518 |
$ 241,754 |
(10.4) |
||||
Depreciation, amortization and facility consolidation charges: |
|||||||
Publishing |
$ 33,736 |
$ 37,271 |
(9.5) |
||||
Digital |
8,330 |
7,648 |
8.9 |
||||
Broadcasting |
7,124 |
7,465 |
(4.6) |
||||
Corporate |
4,142 |
3,951 |
4.8 |
||||
Total |
$ 53,332 |
$ 56,335 |
(5.3) |
||||
Operating Cash Flow: |
|||||||
Publishing |
$ 137,947 |
$ 175,917 |
(21.6) |
||||
Digital |
44,861 |
43,821 |
2.4 |
||||
Broadcasting |
101,710 |
87,870 |
15.8 |
||||
Corporate |
(14,668) |
(9,519) |
54.1 |
||||
Total |
$ 269,850 |
$ 298,089 |
(9.5) |
||||
Operating Cash Flow represents operating income for each of the company's business segments plus related depreciation, amortization and facility consolidation charges. See Table No. 9 for reconciliation of amounts to the Condensed Consolidated Statements of Income. |
|||||||
BUSINESS SEGMENT INFORMATION |
|||||||
Gannett Co., Inc. and Subsidiaries |
|||||||
Unaudited, in thousands of dollars |
|||||||
Table No. 4 |
|||||||
Twenty-six weeks ended |
Twenty-six weeks ended |
% Inc |
|||||
Jun. 24, 2012 |
Jun. 26, 2011 |
(Dec) |
|||||
Net Operating Revenues: |
|||||||
Publishing |
$ 1,794,395 |
$ 1,906,924 |
(5.9) |
||||
Digital |
349,678 |
331,041 |
5.6 |
||||
Broadcasting |
381,554 |
348,235 |
9.6 |
||||
Total |
$ 2,525,627 |
$ 2,586,200 |
(2.3) |
||||
Operating Income (net of depreciation, amortization and facility consolidation charges): |
|||||||
Publishing |
$ 166,251 |
$ 256,243 |
(35.1) |
||||
Digital |
52,794 |
52,258 |
1.0 |
||||
Broadcasting |
167,201 |
143,864 |
16.2 |
||||
Corporate |
(34,070) |
(31,995) |
6.5 |
||||
Total |
$ 352,176 |
$ 420,370 |
(16.2) |
||||
Depreciation, amortization and facility consolidation charges: |
|||||||
Publishing |
$ 66,950 |
$ 76,191 |
(12.1) |
||||
Digital |
16,235 |
15,072 |
7.7 |
||||
Broadcasting |
14,234 |
14,924 |
(4.6) |
||||
Corporate |
8,283 |
7,731 |
7.1 |
||||
Total |
$ 105,702 |
$ 113,918 |
(7.2) |
||||
Operating Cash Flow: |
|||||||
Publishing |
$ 233,201 |
$ 332,434 |
(29.9) |
||||
Digital |
69,029 |
67,330 |
2.5 |
||||
Broadcasting |
181,435 |
158,788 |
14.3 |
||||
Corporate |
(25,787) |
(24,264) |
6.3 |
||||
Total |
$ 457,878 |
$ 534,288 |
(14.3) |
||||
Operating Cash Flow represents operating income for each of the company's business segments plus related depreciation, amortization and facility consolidation charges. See Table No. 9 for reconciliation of amounts to the Condensed Consolidated Statements of Income. |
|||||||
NON-GAAP FINANCIAL INFORMATION |
||||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||||
Unaudited, in thousands of dollars (except per share amounts) |
||||||||||||
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures are not to be considered in isolation from or as a substitute for the related GAAP measures, and should be read only in conjunction with financial information presented on a GAAP basis. |
||||||||||||
Table No. 5 |
||||||||||||
Non-GAAP |
||||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||||
Thirteen |
Facility |
Pension |
Thirteen |
|||||||||
weeks ended |
Workforce |
consolidation |
settlement |
weeks ended |
||||||||
Jun. 24, 2012 |
restructuring |
charges |
charges |
Jun. 24, 2012 |
||||||||
Cost of sales and operating expenses, |
||||||||||||
exclusive of depreciation |
$ 720,889 |
$ (8,156) |
$ - |
$ - |
$ 712,733 |
|||||||
Selling, general and administrative expenses, |
||||||||||||
exclusive of depreciation |
316,301 |
(1,580) |
- |
(5,423) |
309,298 |
|||||||
Facility consolidation charges |
5,097 |
- |
(5,097) |
- |
- |
|||||||
Operating expenses |
1,090,522 |
(9,736) |
(5,097) |
(5,423) |
1,070,266 |
|||||||
Operating income |
216,518 |
9,736 |
5,097 |
5,423 |
236,774 |
|||||||
Income before income taxes |
186,759 |
9,736 |
5,097 |
5,423 |
207,015 |
|||||||
Provision for income taxes |
51,200 |
3,900 |
2,000 |
2,200 |
59,300 |
|||||||
Net income |
135,559 |
5,836 |
3,097 |
3,223 |
147,715 |
|||||||
Net income attributable to Gannett Co., Inc. |
119,889 |
5,836 |
3,097 |
3,223 |
132,045 |
|||||||
Net income per share - diluted |
$ 0.51 |
$ 0.02 |
$ 0.01 |
$ 0.01 |
$ 0.56 |
(a) |
||||||
(a) Total per share amount does not sum due to rounding. |
||||||||||||
Non-GAAP |
||||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||||
Thirteen |
Facility |
Prior year |
Thirteen |
|||||||||
weeks ended |
Workforce |
consolidation |
tax reserve |
weeks ended |
||||||||
Jun. 26, 2011 |
restructuring |
charges |
adjustments, net |
Jun. 26, 2011 |
||||||||
Cost of sales and operating expenses, |
||||||||||||
exclusive of depreciation |
$ 739,654 |
$ (7,415) |
$ - |
$ - |
$ 732,239 |
|||||||
Selling, general and administrative expenses, |
||||||||||||
exclusive of depreciation |
297,196 |
(1,377) |
- |
- |
295,819 |
|||||||
Facility consolidation charges |
6,394 |
- |
(6,394) |
- |
- |
|||||||
Operating expenses |
1,093,185 |
(8,792) |
(6,394) |
- |
1,077,999 |
|||||||
Operating income |
241,754 |
8,792 |
6,394 |
- |
256,940 |
|||||||
Income before income taxes |
208,827 |
8,792 |
6,394 |
- |
224,013 |
|||||||
Provision for income taxes |
43,300 |
3,400 |
2,500 |
20,100 |
69,300 |
|||||||
Net income |
165,527 |
5,392 |
3,894 |
(20,100) |
154,713 |
|||||||
Net income attributable to Gannett Co., Inc. |
151,527 |
5,392 |
3,894 |
(20,100) |
140,713 |
|||||||
Net income per share - diluted |
$ 0.62 |
$ 0.02 |
$ 0.02 |
$ (0.08) |
$ 0.58 |
NON-GAAP FINANCIAL INFORMATION |
||||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||||
Unaudited, in thousands of dollars (except per share amounts) |
||||||||||||
Table No. 6 |
||||||||||||
Non-GAAP |
||||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||||
Twenty-six |
Facility |
Pension |
Twenty-six |
|||||||||
weeks ended |
Workforce |
consolidation |
settlement |
weeks ended |
||||||||
Jun. 24, 2012 |
restructuring |
charges |
charges |
Jun. 24, 2012 |
||||||||
Cost of sales and operating expenses, |
||||||||||||
exclusive of depreciation |
$ 1,443,129 |
$ (22,064) |
$ - |
$ - |
$ 1,421,065 |
|||||||
Selling, general and administrative expenses, |
||||||||||||
exclusive of depreciation |
624,620 |
(3,961) |
- |
(5,423) |
615,236 |
|||||||
Facility consolidation charges |
9,885 |
- |
(9,885) |
- |
- |
|||||||
Operating expenses |
2,173,451 |
(26,025) |
(9,885) |
(5,423) |
2,132,118 |
|||||||
Operating income |
352,176 |
26,025 |
9,885 |
5,423 |
393,509 |
|||||||
Income before income taxes |
289,193 |
26,025 |
9,885 |
5,423 |
330,526 |
|||||||
Provision for income taxes |
77,800 |
10,500 |
3,900 |
2,200 |
94,400 |
|||||||
Net income |
211,393 |
15,525 |
5,985 |
3,223 |
236,126 |
|||||||
Net income attributable to Gannett Co., Inc. |
188,112 |
15,525 |
5,985 |
3,223 |
212,845 |
|||||||
Net income per share - diluted |
$ 0.79 |
$ 0.07 |
$ 0.03 |
$ 0.01 |
$ 0.89 |
(a) |
||||||
(a) Total per share amount does not sum due to rounding. |
||||||||||||
Non-GAAP |
||||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||||
Twenty-six |
Facility |
Prior year |
Twenty-six |
|||||||||
weeks ended |
Workforce |
consolidation |
tax reserve |
weeks ended |
||||||||
Jun. 26, 2011 |
restructuring |
charges |
adjustments, net |
Jun. 26, 2011 |
||||||||
Cost of sales and operating expenses, |
||||||||||||
exclusive of depreciation |
$ 1,457,169 |
$ (12,210) |
$ - |
$ - |
$ 1,444,959 |
|||||||
Selling, general and administrative expenses, |
||||||||||||
exclusive of depreciation |
594,743 |
(2,549) |
- |
- |
592,194 |
|||||||
Facility consolidation charges |
14,050 |
- |
(14,050) |
- |
- |
|||||||
Operating expenses |
2,165,830 |
(14,759) |
(14,050) |
- |
2,137,021 |
|||||||
Operating income |
420,370 |
14,759 |
14,050 |
- |
449,179 |
|||||||
Income before income taxes |
345,569 |
14,759 |
14,050 |
- |
374,378 |
|||||||
Provision for income taxes |
81,900 |
5,500 |
5,600 |
20,100 |
113,100 |
|||||||
Net income |
263,669 |
9,259 |
8,450 |
(20,100) |
261,278 |
|||||||
Net income attributable to Gannett Co., Inc. |
242,020 |
9,259 |
8,450 |
(20,100) |
239,629 |
|||||||
Net income per share - diluted |
$ 0.99 |
$ 0.04 |
$ 0.03 |
$ (0.08) |
$ 0.98 |
|||||||
NON-GAAP FINANCIAL INFORMATION |
|||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||
Unaudited, in thousands of dollars |
|||||||||||
Table No. 7 |
|||||||||||
Non-GAAP |
|||||||||||
GAAP Measure |
Special Items |
Measure |
|||||||||
Thirteen |
Facility |
Pension |
Thirteen |
||||||||
weeks ended |
Workforce |
consolidation |
settlement |
weeks ended |
|||||||
Jun. 24, 2012 |
restructuring |
charges |
charges |
Jun. 24, 2012 |
|||||||
Operating Income |
|||||||||||
Publishing |
$ 104,211 |
$ 9,736 |
$ 5,097 |
$ - |
$ 119,044 |
||||||
Digital |
36,531 |
- |
- |
- |
36,531 |
||||||
Broadcasting |
94,586 |
- |
- |
- |
94,586 |
||||||
Corporate |
(18,810) |
- |
- |
5,423 |
(13,387) |
||||||
Total Operating Income |
$ 216,518 |
$ 9,736 |
$ 5,097 |
$ 5,423 |
$ 236,774 |
||||||
Depreciation, amortization and facility consolidation charges |
|||||||||||
Publishing |
$ 33,736 |
$ - |
$ (5,097) |
$ - |
$ 28,639 |
||||||
Digital |
8,330 |
- |
- |
- |
8,330 |
||||||
Broadcasting |
7,124 |
- |
- |
- |
7,124 |
||||||
Corporate |
4,142 |
- |
- |
- |
4,142 |
||||||
Total depreciation, amortization and facility consolidation charges |
$ 53,332 |
$ - |
$ (5,097) |
$ - |
$ 48,235 |
||||||
Operating Cash Flow (a) |
|||||||||||
Publishing |
$ 137,947 |
$ 9,736 |
$ - |
$ - |
$ 147,683 |
||||||
Digital |
44,861 |
- |
- |
- |
44,861 |
||||||
Broadcasting |
101,710 |
- |
- |
- |
101,710 |
||||||
Corporate |
(14,668) |
- |
- |
5,423 |
(9,245) |
||||||
Total Operating Cash Flow |
$ 269,850 |
$ 9,736 |
$ - |
$ 5,423 |
$ 285,009 |
||||||
(a) Refer to Table No. 9. |
|||||||||||
Non-GAAP |
|||||||||||
GAAP Measure |
Special Items |
Measure |
|||||||||
Thirteen |
Facility |
Thirteen |
|||||||||
weeks ended |
Workforce |
consolidation |
weeks ended |
||||||||
Jun. 26, 2011 |
restructuring |
charges |
Jun. 26, 2011 |
||||||||
Operating Income |
|||||||||||
Publishing |
$ 138,646 |
$ 8,792 |
$ 6,394 |
$ 153,832 |
|||||||
Digital |
36,173 |
- |
- |
36,173 |
|||||||
Broadcasting |
80,405 |
- |
- |
80,405 |
|||||||
Corporate |
(13,470) |
- |
- |
(13,470) |
|||||||
Total Operating Income |
$ 241,754 |
$ 8,792 |
$ 6,394 |
$ 256,940 |
|||||||
Depreciation, amortization and facility consolidation charges |
|||||||||||
Publishing |
$ 37,271 |
$ - |
$ (6,394) |
$ 30,877 |
|||||||
Digital |
7,648 |
- |
- |
7,648 |
|||||||
Broadcasting |
7,465 |
- |
- |
7,465 |
|||||||
Corporate |
3,951 |
- |
- |
3,951 |
|||||||
Total depreciation, amortization and facility consolidation charges |
$ 56,335 |
$ - |
$ (6,394) |
$ 49,941 |
|||||||
Operating Cash Flow (a) |
|||||||||||
Publishing |
$ 175,917 |
$ 8,792 |
$ - |
$ 184,709 |
|||||||
Digital |
43,821 |
- |
- |
43,821 |
|||||||
Broadcasting |
87,870 |
- |
- |
87,870 |
|||||||
Corporate |
(9,519) |
- |
- |
(9,519) |
|||||||
Total Operating Cash Flow |
$ 298,089 |
$ 8,792 |
$ - |
$ 306,881 |
|||||||
(a) Refer to Table No. 9. |
NON-GAAP FINANCIAL INFORMATION |
||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||
Unaudited, in thousands of dollars |
||||||||||
Table No. 8 |
||||||||||
Non-GAAP |
||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||
Twenty-six |
Facility |
Pension |
Twenty-six |
|||||||
weeks ended |
Workforce |
consolidation |
settlement |
weeks ended |
||||||
Jun. 24, 2012 |
restructuring |
charges |
charges |
Jun. 24, 2012 |
||||||
Operating Income |
||||||||||
Publishing |
$ 166,251 |
$ 27,681 |
$ 9,885 |
$ - |
$ 203,817 |
|||||
Digital |
52,794 |
- |
- |
- |
52,794 |
|||||
Broadcasting |
167,201 |
- |
- |
- |
167,201 |
|||||
Corporate |
(34,070) |
(1,656) |
- |
5,423 |
(30,303) |
|||||
Total Operating Income |
$ 352,176 |
$ 26,025 |
$ 9,885 |
$ 5,423 |
$ 393,509 |
|||||
Depreciation, amortization and facility consolidation charges |
||||||||||
Publishing |
$ 66,950 |
$ - |
$ (9,885) |
$ - |
$ 57,065 |
|||||
Digital |
16,235 |
- |
- |
- |
16,235 |
|||||
Broadcasting |
14,234 |
- |
- |
- |
14,234 |
|||||
Corporate |
8,283 |
- |
- |
- |
8,283 |
|||||
Total depreciation, amortization and facility consolidation charges |
$ 105,702 |
$ - |
$ (9,885) |
$ - |
$ 95,817 |
|||||
Operating Cash Flow (a) |
||||||||||
Publishing |
$ 233,201 |
$ 27,681 |
$ - |
$ - |
$ 260,882 |
|||||
Digital |
69,029 |
- |
- |
- |
69,029 |
|||||
Broadcasting |
181,435 |
- |
- |
- |
181,435 |
|||||
Corporate |
(25,787) |
(1,656) |
- |
5,423 |
(22,020) |
|||||
Total Operating Cash Flow |
$ 457,878 |
$ 26,025 |
$ - |
$ 5,423 |
$ 489,326 |
|||||
(a) Refer to Table No. 9. |
||||||||||
Non-GAAP |
||||||||||
GAAP Measure |
Special Items |
Measure |
||||||||
Twenty-six |
Facility |
Twenty-six |
||||||||
weeks ended |
Workforce |
consolidation |
weeks ended |
|||||||
Jun. 26, 2011 |
restructuring |
charges |
Jun. 26, 2011 |
|||||||
Operating Income |
||||||||||
Publishing |
$ 256,243 |
$ 14,759 |
$ 14,050 |
$ 285,052 |
||||||
Digital |
52,258 |
- |
- |
52,258 |
||||||
Broadcasting |
143,864 |
- |
- |
143,864 |
||||||
Corporate |
(31,995) |
- |
- |
(31,995) |
||||||
Total Operating Income |
$ 420,370 |
$ 14,759 |
$ 14,050 |
$ 449,179 |
||||||
Depreciation, amortization and facility consolidation charges |
||||||||||
Publishing |
$ 76,191 |
$ - |
$ (14,050) |
$ 62,141 |
||||||
Digital |
15,072 |
- |
- |
15,072 |
||||||
Broadcasting |
14,924 |
- |
- |
14,924 |
||||||
Corporate |
7,731 |
- |
- |
7,731 |
||||||
Total depreciation, amortization and facility consolidation charges |
$ 113,918 |
$ - |
$ (14,050) |
$ 99,868 |
||||||
Operating Cash Flow (a) |
||||||||||
Publishing |
$ 332,434 |
$ 14,759 |
$ - |
$ 347,193 |
||||||
Digital |
67,330 |
- |
- |
67,330 |
||||||
Broadcasting |
158,788 |
- |
- |
158,788 |
||||||
Corporate |
(24,264) |
- |
- |
(24,264) |
||||||
Total Operating Cash Flow |
$ 534,288 |
$ 14,759 |
$ - |
$ 549,047 |
||||||
(a) Refer to Table No. 9. |
||||||||||
NON-GAAP FINANCIAL INFORMATION |
||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||
Unaudited, in thousands of dollars |
||||||||||
Table No. 9 |
||||||||||
"Operating cash flow," a non-GAAP measure, is defined as operating income plus depreciation, amortization and facility consolidation charges. Management believes that use of this measure allows investors and management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. |
||||||||||
A reconciliation of these non-GAAP amounts to the company's operating income, which the company believes is the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's consolidated statements of income, follows: |
||||||||||
Thirteen weeks ended Jun. 24, 2012 |
||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
||||||
Operating cash flow |
$ 137,947 |
$ 44,861 |
$ 101,710 |
$ (14,668) |
$ 269,850 |
|||||
Less: |
||||||||||
Depreciation |
(24,869) |
(4,203) |
(6,943) |
(4,142) |
(40,157) |
|||||
Amortization |
(3,770) |
(4,127) |
(181) |
- |
(8,078) |
|||||
Facility consolidation charges |
(5,097) |
- |
- |
- |
(5,097) |
|||||
Operating income as reported (GAAP basis) |
$ 104,211 |
$ 36,531 |
$ 94,586 |
$ (18,810) |
$ 216,518 |
|||||
Thirteen weeks ended Jun. 26, 2011 |
||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
||||||
Operating cash flow |
$ 175,917 |
$ 43,821 |
$ 87,870 |
$ (9,519) |
$ 298,089 |
|||||
Less: |
||||||||||
Depreciation |
(27,261) |
(3,575) |
(7,283) |
(3,951) |
(42,070) |
|||||
Amortization |
(3,616) |
(4,073) |
(182) |
- |
(7,871) |
|||||
Facility consolidation charges |
(6,394) |
- |
- |
- |
(6,394) |
|||||
Operating income as reported (GAAP basis) |
$ 138,646 |
$ 36,173 |
$ 80,405 |
$ (13,470) |
$ 241,754 |
|||||
Twenty-six weeks ended Jun. 24, 2012 |
||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
||||||
Operating cash flow |
$ 233,201 |
$ 69,029 |
$ 181,435 |
$ (25,787) |
$ 457,878 |
|||||
Less: |
||||||||||
Depreciation |
(49,620) |
(8,085) |
(13,872) |
(8,283) |
(79,860) |
|||||
Amortization |
(7,445) |
(8,150) |
(362) |
- |
(15,957) |
|||||
Facility consolidation charges |
(9,885) |
- |
- |
- |
(9,885) |
|||||
Operating income as reported (GAAP basis) |
$ 166,251 |
$ 52,794 |
$ 167,201 |
$ (34,070) |
$ 352,176 |
|||||
Twenty-six weeks ended Jun. 26, 2011 |
||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
||||||
Operating cash flow |
$ 332,434 |
$ 67,330 |
$ 158,788 |
$ (24,264) |
$ 534,288 |
|||||
Less: |
||||||||||
Depreciation |
(54,375) |
(7,041) |
(14,561) |
(7,731) |
(83,708) |
|||||
Amortization |
(7,766) |
(8,031) |
(363) |
- |
(16,160) |
|||||
Facility consolidation charges |
(14,050) |
- |
- |
- |
(14,050) |
|||||
Operating income as reported (GAAP basis) |
$ 256,243 |
$ 52,258 |
$ 143,864 |
$ (31,995) |
$ 420,370 |
|||||
NON-GAAP FINANCIAL INFORMATION |
|||||||
Gannett Co., Inc. and Subsidiaries |
|||||||
Unaudited, in thousands of dollars |
|||||||
Table No. 10 |
|||||||
"Free cash flow" is a non-GAAP liquidity measure used in addition to and in conjunction with results presented in accordance with GAAP. Free cash flow should not be relied upon to the exclusion of GAAP financial measures. |
|||||||
Thirteen |
Twenty-six |
||||||
weeks ended |
weeks ended |
||||||
Jun. 24, 2012 |
Jun. 24, 2012 |
||||||
Net cash flow from operating activities |
$ 154,495 |
$ 316,582 |
|||||
Purchase of property, plant and equipment |
(20,187) |
(38,352) |
|||||
Payments for investments |
- |
(500) |
|||||
Proceeds from investments |
6,067 |
10,393 |
|||||
Free cash flow |
$ 140,375 |
$ 288,123 |
|||||
(Logo: http://photos.prnewswire.com/prnh/20120103/PH28972LOGO)
SOURCE
For investor inquiries, Jeffrey Heinz, Director, Investor Relations, +1-703-854-6917, jheinz@gannett.com, or for media inquiries, Jeremy Gaines, Vice President, Corporate Communications, +1-703-854-6049, jmgaines@gannett.com