Gannett executives at UBS Global Media and Communications Conference provide update on strong year
"The whole of
Digital
Martore also provided an update on the company's Digital Segment: "We are incredibly excited about the potential of our Digital Segment. We see tremendous opportunities at both CareerBuilder and Cars.com over the near- and long-term to add new customers, expand the solutions that we offer, and to accelerate growth and profitability."
Broadcasting
Lougee also gave an update on the company's expectations for Broadcasting revenue for the fourth quarter and full year 2014. Broadcasting revenues on a pro forma basis are projected to be approximately 19 percent above 2013. The percentage increase in fourth quarter Broadcasting revenues is expected to be in the range of 23 to 25 percent compared to the fourth quarter of 2013. In addition, political revenue for the year will be
Dickey also discussed the progress of a recently launched program in which an edition of USA TODAY is inserted into 35 of
Expected Results
A replay of the
Below this press release are
About
December 10, 2014
CONSOLIDATED GANNETT |
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A. |
Acquisitions |
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Cars.com is expected to be accretive to free cash flow by approximately $0.43 per share and neutral to EPS in 2015, growing thereafter. |
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B. |
Retransmission Revenue |
|
2015 Plan |
$440,000,000 - $445,000,000 |
|
2014 Estimate |
$365,000,000 |
|
C. |
Capital Expenditures |
|
2015 Plan |
$135,000,000 - $140,000,000 |
|
2014 Estimate |
$160,000,000 - $170,000,000 |
|
D. |
Depreciation |
|
2015 Plan |
$210,000,000 - $215,000,000 |
|
2014 Estimate |
$190,000,000 |
|
E. |
Amortization of Intangibles |
|
2015 Plan |
$135,000,000 - $140,000,000 |
|
2014 Estimate |
$77,000,000 |
|
F. |
Benefit Costs |
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Pension expense will be up in 2015 due to the impact of new corporate pension requirements based on revised mortality rate projections. Health care costs will be up high single digits above 2014. |
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G. |
Debt |
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We expect our debt at the beginning of 2015 to be in the range of $4.6 - $4.7 billion. |
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H. |
Tax Rate |
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The tax rate for 2015 will be approximately 33.0%, depending on the mix of earnings. |
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating assumptions for 2015, 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 our Digital Segment businesses; (c) a decline in viewership of major networks and local news programming resulting from increased competition, including alternative forms of media, or other factors; (d) a continuance of the generally soft economic conditions in the U.S. and the U.K. 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 and digital businesses; (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 our ability to raise funds through debt or equity issuances; (m) changes in the regulatory environment could encumber or impede our efforts to improve operating results or the value of assets; (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) cyber security breaches; (q) the proposed separation of our Publishing business from our Broadcasting and Digital businesses may not be completed on the terms or timeline currently contemplated, if at all; (r) general economic, political and business conditions; and (s) 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. We continue to monitor the uneven economic recovery in the U.S. and U.K., 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
For media inquiries, Jeremy Gaines, Vice President, Corporate Communications, 703-854-6049, jmgaines@gannett.com, For investor inquiries, Jeffrey Heinz, Vice President, Investor Relations, 703-854-6917, jheinz@gannett.com