Gannett executives provide update on growth at UBS Global Media and Communications Conference
"We are transforming the company by harnessing our powerful local brands, national scale and financial strength and are on the offensive to further enhance our position in the rapidly evolving digital world," said Martore. "Our plan is bold, ambitious and doable, with our goal to return
To accomplish its goals, the company launched a series of initiatives, which included rolling out a new content subscription model in the company's local domestic publishing markets and a suite of Digital Marketing Services products in the company's top publishing and broadcast markets.
Thus far, USCP is seeing subscription revenue growth of 21 percent on average, depending on timing of launch. The division expects subscription revenue increases of about 25 percent by the end of 2013, compared to pre-launch levels, and a contribution of
In the digital segment, CareerBuilder continues to perform exceptionally well, delivering strong results and expanding market share in a tepid employment environment.
Company wide digital revenues are expected to reach
"All told, across all segments, we expect total revenues to be up over 5 percent in the fourth quarter, continuing the upward trend we have experienced all year, with accelerating pace. This reinforces the investment return expectations we had previously projected," said Harker.
"As a reminder, our results for the fourth quarter will be impacted by an extra week. The First Call consensus of earnings per share estimates is
A replay of the
Attached to the press release and posted on the company's web site under Investor Relations are
About
12/5/12 |
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GANNETT CO., INC. |
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Expenses |
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Total expenses are projected to increase slightly in 2013 on a same 52 week comparison. |
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CONSOLIDATED GANNETT (Including Acquisitions) |
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A. |
Capital Expenditures |
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1. 2013 Plan |
$110,000,000 |
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2. 2012 Estimate |
$90,000,000 - $100,000,000 |
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B. |
Depreciation |
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1. 2013 Plan |
$160,000,000 |
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2. 2012 Estimate |
$161,000,000 |
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C. |
Amortization of Intangibles |
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1. 2013 Plan |
$32,000,000 |
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2. 2012 Estimate |
$33,000,000 |
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D. |
Benefit Costs |
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1. Pension expense will be in line with 2012 depending on the final return on assets for 2012. |
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2. Health care costs will be slightly above 2012. |
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E. |
Interest Expense |
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We expect our debt at the beginning of 2013 to be in the range of $1.5 - $1.55 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 2013 will be approximately 33.0%, depending on the mix of earnings and audit settlements. |
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating assumptions for 2013, 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 including, 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 potential increase in competition for the Company's digital segment businesses; (c) a decline in viewership of major networks and local news programming resulting from increased competition or other factors; (d) 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; (e) a further decline in general print readership and/or advertiser patterns as a result of competitive alternative media or other factors; (f) an increase in newsprint or syndication programming costs over the levels anticipated; (g) labor disputes which may cause revenue declines or increased labor costs; (h) acquisitions of new businesses or dispositions of existing businesses; (i) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (j) an increase in interest rates; (k) a weakening in the British pound to U.S. dollar exchange rate; (l) 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; (m) changes in the regulatory environment; (n) credit rating downgrades, which could affect the availability and cost of future financing; (o) adverse outcomes in proceedings with governmental authorities or administrative agencies; (p) general economic, political and business conditions; and (q) an other-than-temporary decline in operating results and enterprise value that could lead to non-cash goodwill, other intangible asset, investment or property, plant and equipment impairment charges. The Company continues to monitor the uneven economic recovery in the U.S., as well as new and developing competition and technological change, to evaluate whether any indicators of impairment exist, particularly for those reporting units where fair value is closer to carrying value. 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.
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SOURCE
media inquiries, Jeremy Gaines, Vice President, Corporate Communications, +1-703-854-6049, jmgaines@gannett.com, or investor inquiries, Jeffrey Heinz, Vice President, Investor Relations, +1-703-854-6917, jheinz@gannett.com