Gannett Co., Inc. Reports 27% Increase in Non-GAAP Earnings per Diluted Share to $0.47 Fueled by Record Broadcasting Results; Earnings per Diluted Share of $0.25 on a GAAP Basis
Highlights for the quarter include the following:
- Significant overall company revenue growth of 13 percent, pro forma revenue growth of 3 percent
- Broadcasting Segment revenue doubled, achieved a 20 percent increase on a pro forma basis
- Adjusted EBITDA growth of 36 percent to
$285 million - Free Cash Flow nearly quadrupled to
$149 million year-over-year
Martore continued, "With greater scale and new innovative product offerings, we've successfully deepened our connections with customers across all platforms and positioned
CONTINUING OPERATIONS
On
Operating revenues for the company were
Net income attributable to
Special items in the first quarter of 2014 include: operating charges of
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. 30, 2014 |
Workforce restructuring |
Transformation costs |
Other non-operating items |
Special tax charge |
Thirteen weeks ended Mar. 30, 2014 |
||||||||||||||||||
Operating income |
$ |
203,994 |
$ |
3,465 |
$ |
19,300 |
$ |
— |
$ |
— |
$ |
226,759 |
|||||||||||
Other non-operating items |
(20,748) |
— |
— |
20,400 |
— |
(348) |
|||||||||||||||||
Income before income taxes |
122,089 |
3,465 |
19,300 |
20,400 |
— |
165,254 |
|||||||||||||||||
Provision for income taxes |
52,500 |
1,200 |
8,200 |
8,300 |
(23,800) |
46,400 |
|||||||||||||||||
Net income |
69,589 |
2,265 |
11,100 |
12,100 |
23,800 |
118,854 |
|||||||||||||||||
Net income attributable to Gannett Co., Inc. |
59,159 |
2,265 |
11,100 |
12,100 |
23,800 |
108,424 |
|||||||||||||||||
Net income per share - diluted (a) |
$ |
0.25 |
$ |
0.01 |
$ |
0.05 |
$ |
0.05 |
$ |
0.10 |
$ |
0.47 |
|||||||||||
(a) Total per share amount does not sum due to rounding |
Operating expenses including special charges noted above were
BROADCASTING
Record Broadcasting Segment revenues totaled
The following table summarizes the year-over-year changes in select revenue categories. Digital revenues are included in the Other category.
Broadcasting Revenue Detail Dollars in thousands |
|||||||||
Thirteen weeks ended March 30, 2014 |
Percentage change from thirteen weeks ended March 31, 2013 |
||||||||
Reported |
Pro Forma (a) |
||||||||
Core (Local & National) |
$ |
257,371 |
88 |
% |
6 |
% |
|||
Political |
9,976 |
*** |
*** |
||||||
Retransmission (b) |
87,468 |
142 |
% |
66 |
% |
||||
Other |
27,453 |
60 |
% |
17 |
% |
||||
Total |
$ |
382,268 |
100 |
% |
20 |
% |
|||
(a) The pro forma figures are presented as if the acquisition of Belo Corp. and the Captivate disposition occurred at the beginning of 2013. |
|||||||||
(b) Reverse compensation to network affiliates is included as part of programming costs and therefore not included in this line. |
On a pro forma basis, Broadcasting Segment revenues were 19.6 percent higher compared to the first quarter in 2013. A 6.5 percent increase in core revenues was driven by
Based on current trends and including a full quarter of results for the former Belo stations, we expect the increase in total television revenues for the second quarter of 2014 on a percentage basis to be in the nineties compared to the second quarter of 2013. On a pro forma basis, the percentage increase in total television revenues in the second quarter of 2014 is projected to be up in the mid-teens compared to the second quarter of 2013.
Broadcasting Segment non-GAAP operating expenses totaled
PUBLISHING
Publishing segment revenues in the quarter totaled
Advertising revenues totaled
Circulation revenues totaled
Publishing Segment digital revenues were 7.6 percent higher in the quarter driven by growth in digital marketing solutions revenue and digital advertising. At USA TODAY and its associated businesses, digital revenue growth of 40.5 percent was fueled by increased user engagement across all digital platforms. Page views were up 33 percent and video plays rose more than 150 percent for the quarter as more advertisers are increasingly seeing the value and return of USA TODAY's digital products. Digital revenues at local domestic publishing operations were up 2.5 percent while Newsquest's digital revenues were 17.5 percent higher, in pounds.
Operating income on a non-GAAP basis totaled
DIGITAL
Operating revenues in the Digital segment were
Pro forma 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 was
Interest expense totaled
Net cash flow from operating activities was
During the first quarter, the company purchased approximately 1.3 million shares for
On
* * * *
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 should not be considered in isolation from or as a substitute for the related GAAP measures, and should be read in conjunction with financial information presented on a GAAP basis.
The company discusses in this report non-GAAP financial performance measures that exclude from its reported GAAP results the impact of special items consisting of workforce restructuring charges, transformation costs, amortization of acquired advertising contracts, a non-cash charge related to an investment accounted for under the equity method, special charges in other non-operating items, a currency-related loss recognized in other non-operating items and certain credits and charges to its income tax provision.
The company believes that such expenses, charges and credits are not indicative of normal, ongoing operations and their inclusion in results makes for more difficult comparisons between years and with peer group companies. Workforce restructuring and transformation expenses primarily relate to incremental expenses the company has incurred to consolidate or outsource production processes and centralize other functions. Workforce restructuring expenses include payroll and related benefit costs. Transformation costs include incremental expenses incurred by the company to execute on its transformation and growth plan, including those related to the company's recently completed Belo acquisition and incremental expenses associated with optimizing the company's real estate portfolio. Transformation costs include amortization of acquired advertising contracts. In connection with the acquisition of Belo,
The company also discusses Adjusted EBITDA, a non-GAAP financial performance measure that it believes offers a useful view of the overall operation of its businesses. Adjusted EBITDA is defined as net income attributable to
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 8 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. 30, 2014 |
Thirteen weeks ended Mar. 31, 2013 |
% Increase (Decrease) |
|||||||||
Net operating revenues: |
|||||||||||
Broadcasting |
$ |
382,268 |
$ |
191,580 |
99.5 |
||||||
Publishing advertising |
501,300 |
526,499 |
(4.8) |
||||||||
Publishing circulation |
282,076 |
285,972 |
(1.4) |
||||||||
All other Publishing |
58,687 |
58,762 |
(0.1) |
||||||||
Digital |
179,735 |
174,922 |
2.8 |
||||||||
Total |
1,404,066 |
1,237,735 |
13.4 |
||||||||
Operating expenses: |
|||||||||||
Cost of sales and operating expenses, exclusive of depreciation |
767,532 |
719,724 |
6.6 |
||||||||
Selling, general and administrative expenses, exclusive of depreciation |
355,213 |
314,115 |
13.1 |
||||||||
Depreciation |
44,764 |
38,926 |
15.0 |
||||||||
Amortization of intangible assets |
17,743 |
9,128 |
94.4 |
||||||||
Facility consolidation charges |
14,820 |
4,785 |
*** |
||||||||
Total |
1,200,072 |
1,086,678 |
10.4 |
||||||||
Operating income |
203,994 |
151,057 |
35.0 |
||||||||
Non-operating (expense) income: |
|||||||||||
Equity income in unconsolidated investees, net |
8,491 |
7,794 |
8.9 |
||||||||
Interest expense |
(69,648) |
(35,405) |
96.7 |
||||||||
Other non-operating items |
(20,748) |
(1,583) |
*** |
||||||||
Total |
(81,905) |
(29,194) |
*** |
||||||||
Income before income taxes |
122,089 |
121,863 |
0.2 |
||||||||
Provision for income taxes |
52,500 |
5,400 |
*** |
||||||||
Net income |
69,589 |
116,463 |
(40.2) |
||||||||
Net income attributable to noncontrolling interests |
(10,430) |
(11,898) |
(12.3) |
||||||||
Net income attributable to Gannett Co., Inc. |
$ |
59,159 |
$ |
104,565 |
(43.4) |
||||||
Net income per share - basic |
$ |
0.26 |
$ |
0.46 |
(43.5) |
||||||
Net income per share - diluted |
$ |
0.25 |
$ |
0.44 |
(43.2) |
||||||
Weighted average number of common shares outstanding: |
|||||||||||
Basic |
227,230 |
229,396 |
(0.9) |
||||||||
Diluted |
232,268 |
235,162 |
(1.2) |
||||||||
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. 30, 2014 |
Thirteen weeks ended Mar. 31, 2013 |
% Increase (Decrease) |
|||||||||
Net operating revenues: |
|||||||||||
Broadcasting |
$ |
382,268 |
$ |
191,580 |
99.5 |
||||||
Publishing |
842,063 |
871,233 |
(3.3) |
||||||||
Digital |
179,735 |
174,922 |
2.8 |
||||||||
Total |
$ |
1,404,066 |
$ |
1,237,735 |
13.4 |
||||||
Operating income (net of depreciation, amortization and facility consolidation charges): |
|||||||||||
Broadcasting |
$ |
154,549 |
$ |
83,676 |
84.7 |
||||||
Publishing |
42,988 |
60,137 |
(28.5) |
||||||||
Digital |
23,824 |
23,604 |
0.9 |
||||||||
Corporate |
(17,367) |
(16,360) |
6.2 |
||||||||
Total |
$ |
203,994 |
$ |
151,057 |
35.0 |
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 2014 year-over-year advertising comparisons: |
|||||
U.S. Publishing (including USA TODAY) |
Newsquest (in pounds) |
Total Publishing segment |
|||
Retail |
(7.1%) |
(4.2%) |
(6.2%) |
||
National |
(1.5%) |
(14.0%) |
(2.1%) |
||
Classified |
(5.9%) |
(4.4%) |
(3.9%) |
||
Total advertising |
(5.8%) |
(5.2%) |
(4.8%) |
||
First quarter 2014 year-over-year classified comparisons: |
|||||
U.S. Publishing (including USA TODAY) |
Newsquest (in pounds) |
Total Publishing segment |
|||
Automotive |
(1.5%) |
(4.9%) |
(1.2%) |
||
Employment |
(8.4%) |
5.4% |
(2.0%) |
||
Real Estate |
(3.3%) |
(10.3%) |
(3.7%) |
||
Legal |
(7.2%) |
—% |
(7.2%) |
||
Other |
(10.0%) |
(7.8%) |
(7.3%) |
||
Total classified |
(5.9%) |
(4.4%) |
(3.9%) |
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. 8 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. 30, 2014 |
Workforce restructuring |
Transformation costs |
Other non-operating items |
Special tax charge |
Thirteen weeks ended Mar. 30, 2014 |
||||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation |
$ |
767,532 |
$ |
(2,727) |
$ |
— |
$ |
— |
$ |
— |
$ |
764,805 |
|||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation |
355,213 |
(738) |
— |
— |
— |
354,475 |
|||||||||||||||||||||
Amortization of intangible assets |
17,743 |
— |
(4,480) |
— |
— |
13,263 |
|||||||||||||||||||||
Facility consolidation charges |
14,820 |
— |
(14,820) |
— |
— |
— |
|||||||||||||||||||||
Operating expenses |
1,200,072 |
(3,465) |
(19,300) |
— |
— |
1,177,307 |
|||||||||||||||||||||
Operating income |
203,994 |
3,465 |
19,300 |
— |
— |
226,759 |
|||||||||||||||||||||
Other non-operating items |
(20,748) |
— |
— |
20,400 |
— |
(348) |
|||||||||||||||||||||
Total non-operating (expense) income |
(81,905) |
— |
— |
20,400 |
— |
(61,505) |
|||||||||||||||||||||
Income before income taxes |
122,089 |
3,465 |
19,300 |
20,400 |
— |
165,254 |
|||||||||||||||||||||
Provision for income taxes |
52,500 |
1,200 |
8,200 |
8,300 |
(23,800) |
46,400 |
|||||||||||||||||||||
Net income |
69,589 |
2,265 |
11,100 |
12,100 |
23,800 |
118,854 |
|||||||||||||||||||||
Net income attributable to Gannett Co., Inc. |
59,159 |
2,265 |
11,100 |
12,100 |
23,800 |
108,424 |
|||||||||||||||||||||
Net income per share - diluted (a) |
$ |
0.25 |
$ |
0.01 |
$ |
0.05 |
$ |
0.05 |
$ |
0.10 |
$ |
0.47 |
|||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
|||||||||||||||||||||||||
Thirteen weeks ended Mar. 31, 2013 |
Workforce restructuring |
Transformation costs |
Asset impairment |
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) |
— |
920 |
731 |
2,077 |
— |
(25,466) |
||||||||||||||||||||
Income before income taxes |
121,863 |
5,366 |
5,705 |
731 |
2,077 |
— |
135,742 |
||||||||||||||||||||
Provision for income taxes |
5,400 |
2,100 |
2,200 |
300 |
— |
27,800 |
37,800 |
||||||||||||||||||||
Net income |
116,463 |
3,266 |
3,505 |
431 |
2,077 |
(27,800) |
97,942 |
||||||||||||||||||||
Net income attributable to Gannett Co., Inc. |
104,565 |
3,266 |
3,505 |
431 |
2,077 |
(27,800) |
86,044 |
||||||||||||||||||||
Net income per share - diluted (a) |
$ |
0.44 |
$ |
0.01 |
$ |
0.01 |
$ |
— |
$ |
0.01 |
$ |
(0.12) |
$ |
0.37 |
|||||||||||||
(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 |
|||||||||||||||||||
"Adjusted EBITDA", a non-GAAP measure, is defined as net income attributable to Gannett before (1) net income attributable to noncontrolling interests, (2) income taxes, (3) interest expense, (4) equity income, (5) other non-operating items, (6) workforce restructuring, (7) transformation costs, (8) depreciation and (9) amortization. When Adjusted EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to Adjusted EBITDA is Net income. Management does not analyze non-operating items such as interest expense and income taxes on a segment level; therefore, the most directly comparable GAAP financial measure to Adjusted EBITDA when performance is discussed on a segment level is Operating income. 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. |
|||||||||||||||||||
Reconciliations of Adjusted EBITDA to 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. 30, 2014: |
|||||||||||||||||||
Broadcasting |
Publishing |
Digital |
Corporate |
Consolidated Total |
|||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ |
59,159 |
|||||||||||||||||
Net income attributable to noncontrolling interests |
10,430 |
||||||||||||||||||
Provision for income taxes |
52,500 |
||||||||||||||||||
Interest expense |
69,648 |
||||||||||||||||||
Equity income in unconsolidated investees, net |
(8,491) |
||||||||||||||||||
Other non-operating items |
20,748 |
||||||||||||||||||
Operating income (GAAP basis) |
$ |
154,549 |
$ |
42,988 |
$ |
23,824 |
$ |
(17,367) |
$ |
203,994 |
|||||||||
Workforce restructuring |
— |
3,465 |
— |
— |
3,465 |
||||||||||||||
Transformation costs |
9,756 |
9,544 |
— |
— |
19,300 |
||||||||||||||
Adjusted operating income (non-GAAP basis) |
164,305 |
55,997 |
23,824 |
(17,367) |
226,759 |
||||||||||||||
Depreciation |
11,697 |
23,260 |
4,553 |
5,254 |
44,764 |
||||||||||||||
Adjusted amortization (non-GAAP basis) |
5,741 |
3,787 |
3,735 |
— |
13,263 |
||||||||||||||
Adjusted EBITDA (non-GAAP basis) |
$ |
181,743 |
$ |
83,044 |
$ |
32,112 |
$ |
(12,113) |
$ |
284,786 |
|||||||||
Thirteen weeks ended Mar. 31, 2013: |
|||||||||||||||||||
Broadcasting |
Publishing |
Digital |
Corporate |
Consolidated Total |
|||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ |
104,565 |
|||||||||||||||||
Net income attributable to noncontrolling interests |
11,898 |
||||||||||||||||||
Provision for income taxes |
5,400 |
||||||||||||||||||
Interest expense |
35,405 |
||||||||||||||||||
Equity income in unconsolidated investees, net |
(7,794) |
||||||||||||||||||
Other non-operating items |
1,583 |
||||||||||||||||||
Operating income (GAAP basis) |
$ |
83,676 |
$ |
60,137 |
$ |
23,604 |
$ |
(16,360) |
$ |
151,057 |
|||||||||
Workforce restructuring |
— |
5,366 |
— |
— |
5,366 |
||||||||||||||
Transformation costs |
— |
4,785 |
— |
— |
4,785 |
||||||||||||||
Adjusted operating income (non-GAAP basis) |
83,676 |
70,288 |
23,604 |
(16,360) |
161,208 |
||||||||||||||
Depreciation |
6,754 |
23,225 |
4,386 |
4,561 |
38,926 |
||||||||||||||
Amortization |
181 |
4,226 |
4,721 |
— |
9,128 |
||||||||||||||
Adjusted EBITDA (non-GAAP basis) |
$ |
90,611 |
$ |
97,739 |
$ |
32,711 |
$ |
(11,799) |
$ |
209,262 |
NON-GAAP FINANCIAL INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
||||||
Table No. 6 |
||||||
"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." 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 |
||||||
Net cash flow from operating activities |
$ |
166,002 |
||||
Purchase of property, plant and equipment |
(21,851) |
|||||
Payments for investments |
(1,000) |
|||||
Proceeds from investments |
5,759 |
|||||
Free cash flow |
$ |
148,910 |
TAX RATE CALCULATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||||||
Table No. 7 |
|||||||||||||||
The calculations of the company's effective tax rate on a GAAP and non-GAAP basis are below: |
|||||||||||||||
GAAP |
Non-GAAP |
||||||||||||||
Thirteen |
Thirteen |
Thirteen |
Thirteen |
||||||||||||
Income before taxes (per Table 4) |
$ |
122,089 |
$ |
121,863 |
$ |
165,254 |
$ |
135,742 |
|||||||
Noncontrolling interests (per Table 1) |
(10,430) |
(11,898) |
(10,430) |
(11,898) |
|||||||||||
Income before taxes attributable to Gannett Co., Inc. |
$ |
111,659 |
$ |
109,965 |
$ |
154,824 |
$ |
123,844 |
|||||||
Provision for income taxes (per Table 4) |
$ |
52,500 |
$ |
5,400 |
$ |
46,400 |
$ |
37,800 |
|||||||
Effective tax rate |
47.0 |
% |
4.9 |
% |
30.0 |
% |
30.5 |
% |
NON-GAAP FINANCIAL INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars |
|||||||||||||||
Table No. 8 |
|||||||||||||||
A reconciliation of the company's Broadcasting segment revenues and expenses on an as reported basis to a pro forma basis is below: |
|||||||||||||||
Thirteen weeks ended Mar. 31, 2013: |
|||||||||||||||
Gannett (as reported) |
Belo (as reported) |
Pro forma adjustments (a) |
Gannett pro forma combined |
||||||||||||
Broadcasting revenue: |
|||||||||||||||
Local/national |
$ |
136,614 |
$ |
125,660 |
$ |
(20,601) |
$ |
241,673 |
|||||||
Political |
1,641 |
639 |
(401) |
1,879 |
|||||||||||
Retransmission |
36,122 |
18,885 |
(2,451) |
52,556 |
|||||||||||
Other |
17,203 |
15,154 |
(8,946) |
23,411 |
|||||||||||
Total broadcasting revenue |
191,580 |
160,338 |
(32,399) |
319,519 |
|||||||||||
Broadcasting expenses |
107,904 |
120,137 |
(20,505) |
207,536 |
|||||||||||
Broadcasting operating income |
$ |
83,676 |
$ |
40,201 |
$ |
(11,894) |
$ |
111,983 |
|||||||
(a) The pro forma adjustments include reductions to revenues and expenses for the former Belo stations in Phoenix, AZ and St. Louis, MO totaling $26 million and $20 million, respectively. Subsidiaries of Gannett and Sander Media, a holding company that has a station-operation agreement with Gannett, agreed to sell these stations upon receiving government approval. KMOV-TV, the television station in St. Louis, was sold in February 2014. The sale of the two stations in Phoenix is pending. Pro forma adjustments also include reductions to revenues and expenses for Captivate that totaled $6 million each in the first quarter of 2013 as Gannett sold its controlling interest in Captivate in the third quarter of 2013. The pro forma adjustment for broadcasting expense reflects the addition of $6 million of amortization for definite-lived intangible assets as if the acquisition of Belo had occurred on the first day of 2013. |
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SOURCE
For investor inquiries, contact: Jeffrey Heinz, Vice President, Investor Relations, 703-854-6917, jheinz@gannett.com; For media inquiries, contact: Jeremy Gaines, Vice President, Corporate Communications, 703-854-6049, jmgaines@gannett.com