Gannett Co., Inc. Reports 57% Increase in First Quarter Earnings per Diluted Share to $0.44
Highlights for the quarter include the following year-over-year comparisons:
- Local domestic circulation revenue up 14 percent; fourth consecutive quarter of growth
- Broadcasting revenue accelerates 9 percent
- Company-wide digital revenue growth of 29 percent
- 35 percent increase in Digital segment operating cash flow; 14 percent increase in Broadcasting operating cash flow
"Our improved profitability and revenue growth are also clear signs that our strategy is working. Our all access content subscription model and digital marketing services business -- two initiatives that underpin our growth plan -- continued to gain momentum during the quarter. We remain sharply focused on executing these initiatives, and we fully expect they will drive top line growth and contribute meaningfully to our results going forward," Martore added.
CONTINUING OPERATIONS
Total revenues for the company were 1.6 percent higher in the first quarter compared to the first quarter in 2012 and totaled
Net income attributable to
Special items in the first quarter of 2013 include
Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were
The table below details first quarter results on a GAAP and non-GAAP basis.
Dollars in thousands, except per share amounts |
|||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Workforce restructuring |
Facility and asset impairment charges |
Other non-operating items |
Special tax benefits |
Thirteen weeks ended Mar. 31, 2013 |
||||||||||||||||||
Operating income |
$ |
151,057 |
$ |
5,366 |
$ |
4,785 |
$ |
- |
$ |
- |
$ |
161,208 |
|||||||||||
Equity income in unconsolidated investees, net |
7,794 |
- |
731 |
-
|
-
|
8,525 |
|||||||||||||||||
Other non-operating items |
(1,583) |
- |
920 |
2,077 |
- |
1,414 |
|||||||||||||||||
Total non-operating (expense) income |
(29,194) |
- |
1,651 |
2,077 |
- |
(25,466) |
|||||||||||||||||
Income before income taxes |
121,863 |
5,366 |
6,436 |
2,077 |
- |
135,742 |
|||||||||||||||||
Provision for income taxes |
5,400 |
2,100 |
2,500 |
- |
27,800 |
37,800 |
|||||||||||||||||
Net income |
116,463 |
3,266 |
3,936 |
2,077 |
(27,800) |
97,942 |
|||||||||||||||||
Net income attributable to Gannett Co., Inc. |
104,565 |
3,266 |
3,936 |
2,077 |
(27,800) |
86,044 |
|||||||||||||||||
Net income per share - diluted (a) |
$ |
0.44 |
$ |
0.01 |
$ |
0.02 |
$ |
0.01 |
$ |
(0.12) |
$ |
0.37 |
|||||||||||
(a) Total per share amount does not sum due to rounding |
Additional information on the special items can be found in the "Use of Non-GAAP Information" section.
Operating income was
Operating expenses including special charges totaled
In the first quarter of 2012, the company announced a new capital allocation plan that included a 150 percent increase in the annual dividend to
PUBLISHING
Publishing segment revenues in the quarter totaled
Circulation revenue growth of 8.6 percent in the quarter reflects the continued positive results of the all access content subscription model. Local domestic circulation revenue was 14.5 percent higher, the fourth consecutive quarter of circulation revenue growth.
Advertising revenues were
Digital revenues in the Publishing segment were up 75.5 percent in the quarter reflecting the all access content subscription model as well as growth in digital advertising and marketing solutions revenue. Digital revenues at local domestic publishing operations were 98.4 percent higher, while at
Publishing segment operating expenses totaled
Publishing segment operating income was
BROADCASTING
Broadcasting revenues (which include Captivate) totaled
Television revenues were
Based on current trends, we expect the percentage increase in total television revenues for the second quarter of 2013 to be in the mid-single digits compared to the second quarter of 2012. Television revenues in 2012's second quarter benefited from
Broadcasting segment operating expenses totaled
DIGITAL
Operating revenues in the Digital segment were 3.9 percent higher in the quarter and totaled
Digital revenues company-wide, including the Digital segment and all digital revenues generated by the other business segments, were 28.6 percent higher in the quarter and 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 was
Interest expense totaled
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, a non-cash impairment charge, a currency-related loss recognized in other non-operating items, 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. A non-cash impairment charge was recorded in 2013 to reduce the book value of an investment accounted for under the equity method to fair value, as the business underlying this asset had experienced significant and sustained unfavorable operating results. The currency loss is related to the weakening of the British pound associated with downgrade of the
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" and voluntary pension contributions, net of related tax benefit. 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 new and existing businesses, return cash to shareholders under the company's capital program, 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 4 through 7 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 weeks ended Mar. 31, 2013 |
Thirteen weeks ended Mar. 25, 2012 |
% Increase |
|||||||||
Net operating revenues: |
|||||||||||
Publishing advertising |
$ |
526,499 |
$ |
551,438 |
(4.5) |
||||||
Publishing circulation |
285,972 |
263,336 |
8.6 |
||||||||
Digital |
174,922 |
168,352 |
3.9 |
||||||||
Broadcasting |
191,580 |
176,173 |
8.7 |
||||||||
All other |
58,762 |
59,288 |
(0.9) |
||||||||
Total |
1,237,735 |
1,218,587 |
1.6 |
||||||||
Operating expenses: |
|||||||||||
Cost of sales and operating expenses, exclusive of depreciation |
719,724 |
722,240 |
(0.3) |
||||||||
Selling, general and administrative expenses, exclusive of depreciation |
314,115 |
308,319 |
1.9 |
||||||||
Depreciation |
38,926 |
39,703 |
(2.0) |
||||||||
Amortization of intangible assets |
9,128 |
7,879 |
15.9 |
||||||||
Facility consolidation charges |
4,785 |
4,788 |
(0.1) |
||||||||
Total |
1,086,678 |
1,082,929 |
0.3 |
||||||||
Operating income |
151,057 |
135,658 |
11.4 |
||||||||
Non-operating (expense) income: |
|||||||||||
Equity income in unconsolidated investees, net |
7,794 |
4,312 |
80.8 |
||||||||
Interest expense |
(35,405) |
(39,571) |
(10.5) |
||||||||
Other non-operating items |
(1,583) |
2,035 |
*** |
||||||||
Total |
(29,194) |
(33,224) |
(12.1) |
||||||||
Income before income taxes |
121,863 |
102,434 |
19.0 |
||||||||
Provision for income taxes |
5,400 |
26,600 |
(79.7) |
||||||||
Net income |
116,463 |
75,834 |
53.6 |
||||||||
Net income attributable to noncontrolling interests |
(11,898) |
(7,611) |
56.3 |
||||||||
Net income attributable to Gannett Co., Inc. |
$ |
104,565 |
$ |
68,223 |
53.3 |
||||||
Net income per share - basic |
$ |
0.46 |
$ |
0.29 |
58.6 |
||||||
Net income per share - diluted |
$ |
0.44 |
$ |
0.28 |
57.1 |
||||||
Weighted average number of common shares outstanding: |
|||||||||||
Basic |
229,396 |
236,280 |
(2.9) |
||||||||
Diluted |
235,162 |
240,411 |
(2.2) |
||||||||
Dividends declared per share |
$ |
0.20 |
$ |
0.20 |
- |
BUSINESS SEGMENT INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||
Table No. 2 |
|||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Thirteen weeks ended Mar. 25, 2012 |
% Increase (Decrease) |
|||||||||
Net operating revenues: |
|||||||||||
Publishing |
$ |
871,233 |
$ |
874,062 |
(0.3) |
||||||
Digital |
174,922 |
168,352 |
3.9 |
||||||||
Broadcasting |
191,580 |
176,173 |
8.7 |
||||||||
Total |
$ |
1,237,735 |
$ |
1,218,587 |
1.6 |
||||||
Operating income (net of depreciation, amortization and facility consolidation charges): |
|||||||||||
Publishing |
$ |
60,137 |
$ |
62,040 |
(3.1) |
||||||
Digital |
23,604 |
16,263 |
45.1 |
||||||||
Broadcasting |
83,676 |
72,615 |
15.2 |
||||||||
Corporate |
(16,360) |
(15,260) |
7.2 |
||||||||
Total |
$ |
151,057 |
$ |
135,658 |
11.4 |
||||||
Depreciation, amortization and facility consolidation charges: |
|||||||||||
Publishing |
$ |
32,236 |
$ |
33,214 |
(2.9) |
||||||
Digital |
9,107 |
7,905 |
15.2 |
||||||||
Broadcasting |
6,935 |
7,110 |
(2.5) |
||||||||
Corporate |
4,561 |
4,141 |
10.1 |
||||||||
Total |
$ |
52,839 |
$ |
52,370 |
0.9 |
||||||
Operating cash flow: |
|||||||||||
Publishing |
$ |
92,373 |
$ |
95,254 |
(3.0) |
||||||
Digital |
32,711 |
24,168 |
35.3 |
||||||||
Broadcasting |
90,611 |
79,725 |
13.7 |
||||||||
Corporate |
(11,799) |
(11,119) |
6.1 |
||||||||
Total |
$ |
203,896 |
$ |
188,028 |
8.4 |
Operating cash flow represents operating income from each of the company's business segments plus related depreciation, amortization and facility consolidation charges. See Table No. 6 for reconciliation of amounts to the Condensed Consolidated Statements of Income.
PUBLISHING SEGMENT REVENUE COMPARISONS Gannett Co., Inc. and Subsidiaries Unaudited |
|||||||
Table No. 3 |
|||||||
The percentage changes for the Publishing segment advertising and classified revenue categories were as follows: |
|||||||
First quarter 2013 year-over-year advertising comparisons: |
|||||||
U.S. Publishing (including USA TODAY) |
Newsquest (in pounds) |
Total Publishing segment (constant currency) |
Total Publishing segment |
||||
Retail |
(3.4%) |
(2.1%) |
(3.3%) |
(3.4%) |
|||
National |
(5.2%) |
(7.5%) |
(5.4%) |
(5.4%) |
|||
Classified |
(5.4%) |
(6.0%) |
(5.6%) |
(5.8%) |
|||
Total advertising |
(4.3%) |
(4.8%) |
(4.4%) |
(4.5%) |
|||
First quarter 2013 year-over-year classified comparisons: |
|||||||
U.S. Publishing (including USA TODAY) |
Newsquest (in pounds) |
Total Publishing segment (constant currency) |
Total Publishing segment |
||||
Automotive |
(3.0%) |
(12.3%) |
(4.2%) |
(4.4%) |
|||
Employment |
(8.8%) |
(1.3%) |
(6.7%) |
(6.9%) |
|||
Real Estate |
(4.5%) |
(6.7%) |
(5.3%) |
(5.8%) |
|||
Legal |
(9.0%) |
-% |
(9.0%) |
(9.0%) |
|||
Other |
(3.7%) |
(6.6%) |
(4.7%) |
(5.0%) |
|||
Total classified |
(5.4%) |
(6.0%) |
(5.6%) |
(5.8%) |
|||
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. |
|||||||||||||||||||||||
Tables No. 4 through No. 7 reconcile these non-GAAP measures to the most directly comparable GAAP measure. |
|||||||||||||||||||||||
Table No. 4 |
|||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Workforce restructuring |
Facility consolidation and asset impairment charges |
Other non- operating items |
Special tax benefits |
Thirteen weeks ended Mar. 31, 2013 |
||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation |
$ |
719,724 |
$ |
(4,491) |
$ |
- |
$ |
- |
$ |
- |
$ |
715,233 |
|||||||||||
Selling, general and administrative expenses, exclusive of depreciation |
314,115 |
(875) |
- |
- |
- |
313,240 |
|||||||||||||||||
Facility consolidation charges |
4,785 |
- |
(4,785) |
- |
- |
- |
|||||||||||||||||
Operating expenses |
1,086,678 |
(5,366) |
(4,785) |
- |
- |
1,076,527 |
|||||||||||||||||
Operating income |
151,057 |
5,366 |
4,785 |
- |
- |
161,208 |
|||||||||||||||||
Equity income in unconsolidated investees, net |
7,794 |
- |
731 |
- |
- |
8,525 |
|||||||||||||||||
Other non-operating items |
(1,583) |
- |
920 |
2,077 |
- |
1,414 |
|||||||||||||||||
Total non-operating (expense) income |
(29,194) |
- |
1,651 |
2,077 |
- |
(25,466) |
|||||||||||||||||
Income before income taxes |
121,863 |
5,366 |
6,436 |
2,077 |
- |
135,742 |
|||||||||||||||||
Provision for income taxes |
5,400 |
2,100 |
2,500 |
- |
27,800 |
37,800 |
|||||||||||||||||
Net income |
116,463 |
3,266 |
3,936 |
2,077 |
(27,800) |
97,942 |
|||||||||||||||||
Net income attributable to Gannett Co., Inc. |
104,565 |
3,266 |
3,936 |
2,077 |
(27,800) |
86,044 |
|||||||||||||||||
Net income per share - diluted (a) |
$ |
0.44 |
$ |
0.01 |
$ |
0.02 |
$ |
0.01 |
$ |
(0.12) |
$ |
0.37 |
|||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||||||||||
Thirteen weeks ended Mar. 25, 2012 |
Workforce restructuring |
Facility consolidation charges |
Thirteen weeks ended Mar. 25, 2012 |
||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation |
$ |
722,240 |
$ |
(13,908) |
$ |
- |
$ |
708,332 |
|||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation |
308,319 |
(2,381) |
- |
305,938 |
|||||||||||||||||||
Facility consolidation charges |
4,788 |
- |
(4,788) |
- |
|||||||||||||||||||
Operating expenses |
1,082,929 |
(16,289) |
(4,788) |
1,061,852 |
|||||||||||||||||||
Operating income |
135,658 |
16,289 |
4,788 |
156,735 |
|||||||||||||||||||
Income before income taxes |
102,434 |
16,289 |
4,788 |
123,511 |
|||||||||||||||||||
Provision for income taxes |
26,600 |
6,600 |
1,900 |
35,100 |
|||||||||||||||||||
Net income |
75,834 |
9,689 |
2,888 |
88,411 |
|||||||||||||||||||
Net income attributable to Gannett Co., Inc. |
68,223 |
9,689 |
2,888 |
80,800 |
|||||||||||||||||||
Net income per share - diluted (a) |
$ |
0.28 |
$ |
0.04 |
$ |
0.01 |
$ |
0.34 |
|||||||||||||||
(a) Total per share amount does not sum due to rounding. |
NON-GAAP FINANCIAL INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||||||
Table No. 5 |
|||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Workforce restructuring |
Facility consolidation charges |
Thirteen weeks ended Mar. 31, 2013 |
||||||||||||
Operating income: |
|||||||||||||||
Publishing |
$ |
60,137 |
$ |
5,366 |
$ |
4,785 |
$ |
70,288 |
|||||||
Digital |
23,604 |
- |
- |
23,604 |
|||||||||||
Broadcasting |
83,676 |
- |
- |
83,676 |
|||||||||||
Corporate |
(16,360) |
- |
- |
(16,360) |
|||||||||||
Total |
$ |
151,057 |
$ |
5,366 |
$ |
4,785 |
$ |
161,208 |
|||||||
Depreciation, amortization and facility consolidation charges: |
|||||||||||||||
Publishing |
$ |
32,236 |
$ |
- |
$ |
(4,785) |
$ |
27,451 |
|||||||
Digital |
9,107 |
- |
- |
9,107 |
|||||||||||
Broadcasting |
6,935 |
- |
- |
6,935 |
|||||||||||
Corporate |
4,561 |
- |
- |
4,561 |
|||||||||||
Total |
$ |
52,839 |
$ |
- |
$ |
(4,785) |
$ |
48,054 |
|||||||
Operating cash flow (a): |
|||||||||||||||
Publishing |
$ |
92,373 |
$ |
5,366 |
$ |
- |
$ |
97,739 |
|||||||
Digital |
32,711 |
- |
- |
32,711 |
|||||||||||
Broadcasting |
90,611 |
- |
- |
90,611 |
|||||||||||
Corporate |
(11,799) |
- |
- |
(11,799) |
|||||||||||
Total |
$ |
203,896 |
$ |
5,366 |
$ |
- |
$ |
209,262 |
|||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||
Thirteen weeks ended Mar. 25, 2012 |
Workforce restructuring |
Facility consolidation charges |
Thirteen weeks ended Mar. 25, 2012 |
||||||||||||
Operating income: |
|||||||||||||||
Publishing |
$ |
62,040 |
$ |
17,945 |
$ |
4,788 |
$ |
84,773 |
|||||||
Digital |
16,263 |
- |
- |
16,263 |
|||||||||||
Broadcasting |
72,615 |
- |
- |
72,615 |
|||||||||||
Corporate |
(15,260) |
(1,656) |
- |
(16,916) |
|||||||||||
Total |
$ |
135,658 |
$ |
16,289 |
$ |
4,788 |
$ |
156,735 |
|||||||
Depreciation, amortization and facility consolidation charges: |
|||||||||||||||
Publishing |
$ |
33,214 |
$ |
- |
$ |
(4,788) |
$ |
28,426 |
|||||||
Digital |
7,905 |
- |
- |
7,905 |
|||||||||||
Broadcasting |
7,110 |
- |
- |
7,110 |
|||||||||||
Corporate |
4,141 |
- |
- |
4,141 |
|||||||||||
Total |
$ |
52,370 |
$ |
- |
$ |
(4,788) |
$ |
47,582 |
|||||||
Operating cash flow (a): |
|||||||||||||||
Publishing |
$ |
95,254 |
$ |
17,945 |
$ |
- |
$ |
113,199 |
|||||||
Digital |
24,168 |
- |
- |
24,168 |
|||||||||||
Broadcasting |
79,725 |
- |
- |
79,725 |
|||||||||||
Corporate |
(11,119) |
(1,656) |
- |
(12,775) |
|||||||||||
Total |
$ |
188,028 |
$ |
16,289 |
$ |
- |
$ |
204,317 |
|||||||
(a) Refer to Table No. 6 |
NON-GAAP FINANCIAL INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||||||||||
Table No. 6 |
|||||||||||||||||||
"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 condensed consolidated statements of income, follow: |
|||||||||||||||||||
Thirteen weeks ended Mar. 31, 2013: |
|||||||||||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
|||||||||||||||
Operating cash flow |
$ |
92,373 |
$ |
32,711 |
$ |
90,611 |
$ |
(11,799) |
$ |
203,896 |
|||||||||
Less: |
|||||||||||||||||||
Depreciation |
(23,225) |
(4,386) |
(6,754) |
(4,561) |
(38,926) |
||||||||||||||
Amortization |
(4,226) |
(4,721) |
(181) |
- |
(9,128) |
||||||||||||||
Facility consolidation charges |
(4,785) |
- |
- |
- |
(4,785) |
||||||||||||||
Operating income as reported (GAAP basis) |
$ |
60,137 |
$ |
23,604 |
$ |
83,676 |
$ |
(16,360) |
$ |
151,057 |
|||||||||
Thirteen weeks ended Mar. 25, 2012: |
|||||||||||||||||||
Publishing |
Digital |
Broadcasting |
Corporate |
Consolidated Total |
|||||||||||||||
Operating cash flow |
$ |
95,254 |
$ |
24,168 |
$ |
79,725 |
$ |
(11,119) |
$ |
188,028 |
|||||||||
Less: |
|||||||||||||||||||
Depreciation |
(24,751) |
(3,882) |
(6,929) |
(4,141) |
(39,703) |
||||||||||||||
Amortization |
(3,675) |
(4,023) |
(181) |
- |
(7,879) |
||||||||||||||
Facility consolidation charges |
(4,788) |
- |
- |
- |
(4,788) |
||||||||||||||
Operating income as reported (GAAP basis) |
$ |
62,040 |
$ |
16,263 |
$ |
72,615 |
$ |
(15,260) |
$ |
135,658 |
|||||||||
NON-GAAP FINANCIAL INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
||||||
Table No. 7 |
||||||
"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. |
||||||
Free cash flow is a non-GAAP liquidity measure that 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" and voluntary pension contributions, net of related tax benefit. 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 new and existing businesses, return cash to shareholders under the company's capital program, repay indebtedness, add to the company's cash balance, or to 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. |
||||||
Thirteen weeks ended Mar. 31, 2013 |
||||||
Net cash flow from operating activities |
$ |
36,283 |
||||
Purchase of property, plant and equipment |
(16,097) |
|||||
Voluntary pension employer contributions |
15,507 |
|||||
Tax benefit for voluntary pension employer contributions |
(6,125) |
|||||
Payments for investments |
(1,001) |
|||||
Proceeds from investments |
10,060 |
|||||
Free cash flow |
$ |
38,627 |
TAX RATE CALCULATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||||||
Table No. 8 |
|||||||||||||||
The calculations of the company's effective tax rate on a GAAP and non-GAAP basis are below: |
|||||||||||||||
GAAP |
Non-GAAP |
||||||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Thirteen weeks ended Mar. 25, 2012 |
Thirteen weeks ended Mar. 31, 2013 |
Thirteen weeks ended Mar. 25, 2012 |
||||||||||||
Income before taxes (per Table 4) |
$ |
121,863 |
$ |
102,434 |
$ |
135,742 |
$ |
123,511 |
|||||||
Noncontrolling interests (per Table 1) |
(11,898) |
(7,611) |
(11,898) |
(7,611) |
|||||||||||
Income before taxes attributable to GCI |
$ |
109,965 |
$ |
94,823 |
$ |
123,844 |
$ |
115,900 |
|||||||
Provision for income taxes (per Table 4) |
$ |
5,400 |
$ |
26,600 |
$ |
37,800 |
$ |
35,100 |
|||||||
Effective tax rate |
4.9% |
28.1% |
30.5% |
30.3% |
|||||||||||
(Logo: http://photos.prnewswire.com/prnh/20120103/PH28972LOGO)
SOURCE
For investor inquiries, contact: Jeffrey Heinz, Vice President, Investor Relations, 703-854-6917, jheinz@gannett.com, or for media inquiries, contact: Jeremy Gaines, Vice President, Corporate Communications, 703-854-6049, jmgaines@gannett.com