Earnings per Diluted Share of $0.30; Non-GAAP Earnings per Diluted Share of $0.46
MCLEAN, Va.--(BUSINESS WIRE)--Jul. 15, 2009--
Gannett Co., Inc. (NYSE: GCI) reported today that 2009 second quarter
earnings per diluted share were $0.30 compared to a net loss per share
of $10.03 for the second quarter of 2008. Results for both quarters
included several special items noted below. Earnings per diluted share
for the second quarter of 2009, excluding those items, were $0.46.
Earnings per diluted share for the second quarter of 2008 on a
comparable basis were $1.04.
Results for the second quarter of 2009 include: a $42.7 million pre-tax
gain related to the company’s debt exchange ($26.1 million after-tax or
$0.11 per share); $16.6 million in pre-tax costs related to workforce
restructuring and facility consolidations ($10.3 million after-tax or
$0.04 per share); $47.4 million of pre-tax non-cash charges related
primarily to asset impairments in the company’s publishing segment
($29.6 million after-tax or $0.13 per share); and a $28.0 million
non-cash charge for asset write-downs ($24.2 million after-tax or $0.10
per share).
Results for the second quarter of 2008 included: a pre-tax curtailment
gain for its domestic pension plans of $46.5 million ($28.9 million
after tax or $0.13 per share); $39.9 million in pre-tax costs related to
workforce restructuring and facility consolidations ($26.4 million after
tax or $0.12 per share); and certain non-cash impairment charges
totaling approximately $2.8 billion pre-tax ($2.5 billion after-tax or
$11.08 per share).
The Non-GAAP Financial Information section which follows provides
details of these special items and their effect on the Statements of
Income.
“We continue to position the company for the eventual rebound in the
economy and the evolving media landscape as we navigate through this
unprecedented economic storm. The economic headwinds, which continued to
constrain advertising demand, masked several important achievements in
the quarter. In our digital segment, pro forma operating profits rose
almost 84 percent. Total digital revenues across all of our segments
were over $225 million. Retransmission revenues in our Broadcasting
segment rose three-fold partially offsetting weak auto advertising
demand and lower political spending. In our publishing segment, while
advertising revenue comparisons remain difficult, second quarter
year-over- year comparisons improved versus first quarter comparisons
and June was our best comparison month thus far this year,” said
Executive Vice President and Chief Financial Officer Gracia Martore.
“The decline in our operating expenses reflects our efforts to achieve
efficiencies and further consolidations company-wide, furloughs in the
current quarter and significantly lower newsprint expense. We continue
to opportunistically manage our capital structure and successfully
extended the maturities of over 25 percent of our outstanding bonds to
2015 and 2016 through a debt exchange offer. As a result of our debt
exchange and our substantial operating cash flow of $252 million, debt
was $223 million lower and totaled $3.5 billion at quarter end.”
Weakness in the economies of the U.S. and UK resulted in continued
downward pressure on revenues. Total reported operating revenues for the
company were $1.4 billion in the second quarter compared to $1.7 billion
in the second quarter of 2008. The consolidation of CareerBuilder and
ShopLocal for the full quarter in 2009 drove the significant increase in
digital segment revenues.
Reported operating expenses totaled $1.3 billion, representing a decline
of 67.0 percent, primarily due to the significant non-cash impairment
charges in 2008. However, several other important factors impacted
year-over-year reported operating expense comparisons. In addition to
the impact of the special items previously mentioned and presented in
the Non-GAAP section of this report, efforts to more efficiently operate
our businesses, including workforce restructuring and facility
consolidations in prior periods as well as furloughs and salary
adjustments in the current period and lower newsprint expense,
contributed to a sharp decline in operating expenses. The consolidation
of CareerBuilder and ShopLocal for the full quarter this year partially
offset the year-over-year operating expense declines. Therefore, on a
pro forma basis operating expenses, excluding special items in both
quarters, were 19.7 percent lower. Corporate expenses were higher in
2009 due principally to the allocation of a portion of the pension
curtailment gain in 2008. Corporate expenses adjusted for several items
actually declined 11.3 percent.
Operating cash flow (defined as operating income plus depreciation,
amortization and non-cash asset impairment and other charges) was $252.2
million for the quarter and net income was $70.5 million.
Average diluted shares outstanding in the second quarter totaled
234,745,000 compared with 228,325,000 in 2008’s second quarter.
PUBLISHING
Publishing segment operating revenues were $1.1 billion for the quarter,
a 25.8 percent decline from the same quarter a year ago. Lower revenues
both here and in the UK were mitigated to a significant degree by a 20.3
percent drop in expenses (excluding special items in 2009 and 2008).
Operating cash flow generated by the publishing segment was
approximately $175.3 million.
Advertising revenues were $753.1 million or 32.0 percent lower than the
second quarter of 2008 as retail declined 23.7 percent, national was
22.4 percent lower and classified was down 44.9 percent. Advertising
revenues in the U.S. were down 27.2 percent while at Newsquest, our
operations in the UK, ad revenues were 36.9 percent lower, in pounds.
The exchange rate for the British pound was 1.54 in the second quarter
of 2009 compared to 1.97 in the same quarter a year ago, a 21.8 percent
decline. Ad revenue percentage changes for the retail, national and
classified categories for the publishing segment (on a constant currency
basis) including domestic publishing and Newsquest (in pounds) were as
follows:
|
|
U.S. Publishing
(including USA TODAY)
|
|
Newsquest
(in pounds)
|
|
Total
Publishing
Segment
(constant currency)
|
Retail
|
|
(22.1
|
%)
|
|
(20.1
|
%)
|
|
(21.9
|
%)
|
National
|
|
(21.8
|
%)
|
|
(10.5
|
%)
|
|
(21.1
|
%)
|
Classified
|
|
(38.5
|
%)
|
|
(45.2
|
%)
|
|
(40.5
|
%)
|
|
|
(27.2
|
%)
|
|
(36.9
|
%)
|
|
(28.8
|
%)
|
Overall, advertising revenue year-over-year comparisons for the second
quarter were better than first quarter year-over-year results in both
the U.S. and the UK.
Classified revenues were 44.9 percent lower comprised of declines of
38.5 percent in the U.S. and 45.2 percent, in pounds, at Newsquest.
Automotive, employment and real estate declined 40.4 percent, 62.3
percent and 48.4 percent, respectively. The percentage changes in the
classified categories in total (on a constant currency basis), domestic
publishing and Newsquest for the second quarter of 2009 compared to the
second quarter in 2008 were as follows:
|
|
U.S.
Publishing
|
|
Newsquest
(in pounds)
|
|
Total
Publishing
Segment
(constant currency)
|
Automotive
|
|
(35.8
|
%)
|
|
(43.5
|
%)
|
|
(37.3
|
%)
|
Employment
|
|
(60.1
|
%)
|
|
(55.6
|
%)
|
|
(58.4
|
%)
|
Real Estate
|
|
(39.1
|
%)
|
|
(52.7
|
%)
|
|
(43.8
|
%)
|
Legal
|
|
(0.7
|
%)
|
|
---
|
|
|
(0.7
|
%)
|
Other
|
|
(24.5
|
%)
|
|
(21.8
|
%)
|
|
(23.7
|
%)
|
|
|
(38.5
|
%)
|
|
(45.2
|
%)
|
|
(40.5
|
%)
|
Uncertainty surrounding the domestic economy impacted national
advertising demand, particularly at USA TODAY. While the
telecommunications and pharmaceutical categories showed strong growth in
the quarter, significant categories including entertainment, travel and
automotive lagged last year’s results. Paid advertising pages totaled
602 compared with 831 in the second quarter last year.
Efforts to optimize efficiency and control costs, including headcount
reductions in previous quarters, furloughs this quarter and lower
newsprint expense were all factors that lowered operating expenses in
the quarter. Reported publishing expenses were $1.0 billion, a 72.3
percent decline due mainly to the non-cash impairment charges in 2008.
Excluding special charges from both quarters, operating expenses would
have been 20.3 percent lower. Newsprint usage prices were 7.2 percent
higher in the quarter but combined with a 31.9 percent decline in
consumption, resulted in a 27.0 percent decline in newsprint expense.
The fall in newsprint prices accelerated in the third quarter and as a
result we expect more favorable pricing comparisons throughout the
remainder of the year.
BROADCASTING
Broadcasting revenues (which include Captivate) were $153.0 million in
the quarter compared to $192.6 million in the same quarter a year ago.
Retransmission revenues totaled $14.3 million in the quarter, a
three-fold increase. However, weakness in the important automotive and
retail categories and a $2.9 million decline in politically related
advertising more than offset the increases.
Operating expenses for the broadcasting segment were down 9.4 percent
compared to the second quarter last year and totaled $102.7 million
reflecting cost containment efforts including furloughs in the current
quarter. Excluding special items, operating expenses declined 12.9
percent. Operating cash flow was $59.9 million in the second quarter.
Television revenues totaled $148.4 million, down 19.7 percent. Based on
current trends, we would expect the percentage decline in television
revenues to be in the mid-twenties for the third quarter of 2009
compared to the third quarter of 2008. This is due primarily to the
absence of approximately $50 million of political and Olympic ad revenue
achieved in the third quarter of 2008.
DIGITAL
The digital segment for the quarter includes results for CareerBuilder,
PointRoll, ShopLocal, Planet Discover, Schedule Star and Ripple6.
Results for CareerBuilder and ShopLocal were initially consolidated in
the third quarter of 2008 when the company acquired ShopLocal and
controlling interest in CareerBuilder. Ripple6 was acquired in November
2008. Results for PointRoll, Planet Discover and Schedule Star, which
had been previously included in the publishing segment, have been
reclassified to the digital segment for prior periods.
Digital operating revenues totaled $142.4 million in the quarter
compared with $20.0 million in 2008, reflecting primarily the
consolidation of CareerBuilder and ShopLocal. Operating expenses were
$123.9 million. Reflecting solid results for CareerBuilder, PointRoll,
ShopLocal and Planet Discover operating cash flow was $27.2 million.
On a pro forma basis, operating revenues were 18.5 percent lower mainly
due to softness in employment revenue for CareerBuilder. However,
operating expenses were down 24.7 percent. As a result, operating cash
flow was $9.6 million higher compared to the second quarter last year, a
54.2 percent increase.
NON-OPERATING ITEMS
The company’s equity earnings include its share of operating results
from unconsolidated investees including the California Newspapers
Partnership, Texas-New Mexico Newspapers Partnership, Tucson newspaper
partnership and other online/new technology businesses including
Classified Ventures. Non-operating items also included the company’s
equity share of results for CareerBuilder and ShopLocal for the first
and second quarters of 2008, before the company acquired controlling
interests in these businesses and began consolidating their results.
The equity income in unconsolidated investees for the second quarter of
2009 was $2.8 million. The equity loss of $252.8 million for the second
quarter of 2008 reflected non-cash impairment charges totaling $261
million related principally to the carrying value of newspaper
partnership investments.
The $11.2 million increase in other non-operating items was due
primarily to the $42.7 million non-cash gain resulting from the
company’s debt exchange during the quarter (as detailed below), offset
partially by a non-cash charge of $28.0 million for the write-down of
certain assets held for sale. Excluding those one-time items,
non-operating income declined $3.5 million to $1.9 million.
On April 7, 2009, the company commenced a private exchange offer
relating to its $500 million, 5.75 percent notes due in 2011 and its
$500 million, 6.375 percent notes due in 2012. In May, the company
received valid tenders from holders of approximately $67 million of the
2011 notes and approximately $193 million of the 2012 notes, about 26
percent of the bonds outstanding. As a result, the company issued $67
million of new 10.0 percent notes due in 2015 and $193 million of new
10.0 percent notes due in 2016. At the end of the second quarter, bonds
maturing in 2011 totaled approximately $433 million and bonds maturing
in 2012 totaled approximately $307 million.
Interest expense for the second quarter was $44.0 million, unchanged
from the second quarter last year reflecting, in part, the short term
borrowing to pre-fund the $563 million of bonds that were paid off in
May.
In the first quarter of 2009, Gannett adopted Statement of Financial
Accounting Standards No. 160 (FAS 160), “Noncontrolling Interests in
Consolidated Financial Statements – an amendment of ARB No. 51.” FAS 160
affected primarily the company’s reporting of the 49.2 percent
noncontrolling interest in CareerBuilder. Previously the company
presented this minority interest in “Other non-operating items” in the
Condensed Consolidated Statements of Income. Under FAS 160, “Net income”
in the Condensed Consolidated Statements of Income reflects 100 percent
of CareerBuilder results; as the company holds the controlling interest.
“Net income” is subsequently adjusted to remove the noncontrolling
(minority) interest to arrive at “Net income attributable to Gannett
Co., Inc.” While this presentation is different than previously required
by GAAP, the final net income results attributable to the company are
the same under FAS 160 as they would have been under the previous
reporting method.
At the end of the quarter, Gannett had more than 100 domestic publishing
Web sites, including USATODAY.com, one of the most popular newspaper
sites on the Web. The company also had Web sites in all of its 19
television markets. In June, Gannett’s consolidated domestic Internet
audience share was 24.5 million unique visitors reaching 12.5 percent of
the Internet audience, according to Nielsen//NetRatings. Newsquest is
also an Internet leader in the UK where its network of Web sites
attracted over 73 million monthly page impressions from approximately
7.0 million unique users. CareerBuilder’s unique visitors in June
totaled 22.3 million.
All references in this release to “pro forma” or “comparable” results
and “operating cash flow” are to non-GAAP financial measures. Management
believes that this use allows them and investors to analyze and compare
the company’s results in a more meaningful and consistent manner. A
reconciliation of the non-GAAP operating cash flow amounts to the
company’s consolidated statements of income is attached.
As previously announced, the company will hold an earnings conference
call at 10:00 a.m. ET today. The call can be accessed via a live Webcast
through the Investor Relations section of the company’s Web site, www.gannett.com,
or listen-only conference lines. U.S. callers should dial 1-800-776-0816
and international callers should dial 913-312-0938 at least 10 minutes
prior to the scheduled start of the call. The confirmation code for the
conference call is 5435434. To access the replay, dial 1-888-203-1112 in
the U.S. International callers should use the number 719-457-0820. The
confirmation code for the replay is 5435434. Materials related to the
call will be available through the Investor Relations section of the
company’s Web site Wednesday morning.
Gannett Co., Inc. (NYSE: GCI) is an international news and information
company operating on multiple platforms including the Internet, mobile,
newspapers, magazines and TV stations. Gannett is an Internet leader
with hundreds of newspaper and TV Web sites; CareerBuilder.com, the
nation’s top employment site; USATODAY.com; and more than 80 local
MomsLikeMe.com sites. Gannett publishes 84 daily U.S. newspapers,
including USA TODAY, the nation’s largest-selling daily newspaper, and
more than 700 magazines and other non-dailies including USA WEEKEND.
Gannett also operates 23 television stations in 19 U.S. markets. Gannett
subsidiary Newsquest is the United Kingdom’s second largest regional
newspaper company with 17 daily paid-for titles, more than 200 weekly
newspapers, magazines and trade publications, and a network of Web sites.
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 SEC
reports, including the company’s annual report on Form 10-K and
quarterly reports on Form 10-Q. Any forward looking statements in this
press release should be evaluated in light of these important risk
factors.
Gannett is not responsible for updating the information contained in
this press release beyond the published date, or for changes made to
this press release by wire services, Internet service providers or other
media.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
|
|
Gannett Co., Inc. and Subsidiaries
|
|
|
|
|
|
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
|
|
|
|
|
|
Thirteen weeks
|
|
Thirteen weeks
|
|
|
|
|
|
ended
|
|
ended
|
|
% Inc
|
|
|
June 28, 2009
|
|
June 29, 2008
|
|
(Dec)
|
Net Operating Revenues:
|
|
|
|
|
|
|
|
Publishing advertising
|
|
$
|
753,079
|
|
|
$
|
1,108,189
|
|
|
(32.0
|
)
|
Publishing circulation
|
|
|
292,757
|
|
|
|
305,994
|
|
|
(4.3
|
)
|
Digital
|
|
|
142,354
|
|
|
|
20,008
|
|
|
***
|
|
Broadcasting
|
|
|
152,966
|
|
|
|
192,568
|
|
|
(20.6
|
)
|
All other
|
|
|
71,437
|
|
|
|
91,230
|
|
|
(21.7
|
)
|
Total
|
|
|
1,412,593
|
|
|
|
1,717,989
|
|
|
(17.8
|
)
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
Cost of sales and operating expenses, exclusive of depreciation
|
|
|
867,312
|
|
|
|
988,538
|
|
|
(12.3
|
)
|
Selling, general and administrative expenses, exclusive of
depreciation
|
|
293,102
|
|
|
|
299,539
|
|
|
(2.1
|
)
|
Depreciation
|
|
|
53,798
|
|
|
|
55,109
|
|
|
(2.4
|
)
|
Amortization of intangible assets
|
|
|
8,232
|
|
|
|
6,475
|
|
|
27.1
|
|
Asset impairment and other charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
|
(98.1
|
)
|
Total
|
|
|
1,269,835
|
|
|
|
3,851,535
|
|
|
(67.0
|
)
|
Operating income (loss)
|
|
|
142,758
|
|
|
|
(2,133,546
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Non-operating (expense) income:
|
|
|
|
|
|
|
|
Equity income (loss) in unconsolidated investees, net
|
|
|
2,839
|
|
|
|
(252,793
|
)
|
|
***
|
|
Interest expense
|
|
|
(43,972
|
)
|
|
|
(43,957
|
)
|
|
0.0
|
|
Other non-operating items
|
|
|
16,582
|
|
|
|
5,362
|
|
|
***
|
|
Total
|
|
|
(24,551
|
)
|
|
|
(291,388
|
)
|
|
(91.6
|
)
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
118,207
|
|
|
|
(2,424,934
|
)
|
|
***
|
|
Provision (benefit) for income taxes
|
|
|
39,900
|
|
|
|
(134,200
|
)
|
|
***
|
|
Net income (loss)
|
|
|
78,307
|
|
|
|
(2,290,734
|
)
|
|
***
|
|
Net income attributable to noncontrolling interest
|
|
|
(7,826
|
)
|
|
|
(22
|
)
|
|
***
|
|
Net income (loss) attributable to Gannett Co., Inc.
|
|
$
|
70,481
|
|
|
$
|
(2,290,756
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic
|
|
$
|
0.30
|
|
|
$
|
(10.03
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
$
|
0.30
|
|
|
$
|
(10.03
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.04
|
|
|
$
|
0.40
|
|
|
(90.0
|
)
|
In the second quarter of 2009, the company recorded workforce
restructuring charges and non-cash impairment charges to reduce the book
value of certain goodwill and property, plant and equipment. The
company also recorded accelerated depreciation expense associated with
certain facility consolidation initiatives. In addition, the company
recorded a non-cash impairment charge for publishing assets to be sold
and a gain on the exchange of debt, which are reflected in other
non-operating items.
In the second quarter of 2008, the company recorded workforce
restructuring charges and non-cash impairment charges to reduce the book
value of certain goodwill, other intangible assets including mastheads,
and property, plant and equipment. The carrying value of certain of the
company's investments in newspaper publishing partnerships and other
businesses, which are accounted for under the equity method, were also
written down due to other than temporary impairments. The company also
recorded accelerated depreciation expense associated with certain
facility consolidation initiatives. In addition, the company recorded a
pension curtailment gain during the quarter.
The Non-GAAP Financial Information section which follows provides
details of those special items affecting second quarter results and
presents comparisons of key elements of the Condensed Consolidated
Statements of Income (Loss) excluding these items.
In period 9, 2008, the company increased its ownership in CareerBuilder
to 50.8% from 40.8%, and therefore the results of CareerBuilder
beginning with period 9 are now fully consolidated. In period 7, 2008,
the company increased its ownership in ShopLocal to 100% from 42.5%, and
therefore the results of ShopLocal beginning with period 7 are now fully
consolidated. Prior to these acquisitions, the equity share of
CareerBuilder and ShopLocal results were reported as equity
earnings. Beginning with the third quarter of 2008, a new "Digital"
business segment was reported, which includes CareerBuilder and
ShopLocal from the date of full consolidation as well as PointRoll ,
Planet Discover, Schedule Star and Ripple6 (from the date of acquisition
in period 11, 2008) . Prior period revenues for PointRoll, Planet
Discover and Schedule Star have been reclassified from "All other" to
"Digital".
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
|
|
Gannett Co., Inc. and Subsidiaries
|
|
|
|
|
|
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
|
|
|
|
|
|
Twenty-six
|
|
Twenty-six
|
|
|
|
|
|
weeks ended
|
|
weeks ended
|
|
% Inc
|
|
|
June 28, 2009
|
|
June 29, 2008
|
|
(Dec)
|
Net Operating Revenues:
|
|
|
|
|
|
|
|
Publishing advertising
|
|
$
|
1,475,834
|
|
|
$
|
2,205,083
|
|
|
(33.1
|
)
|
Publishing circulation
|
|
|
592,440
|
|
|
|
615,172
|
|
|
(3.7
|
)
|
Digital
|
|
|
285,514
|
|
|
|
33,901
|
|
|
***
|
|
Broadcasting
|
|
|
296,456
|
|
|
|
362,748
|
|
|
(18.3
|
)
|
All other
|
|
|
140,827
|
|
|
|
177,954
|
|
|
(20.9
|
)
|
Total
|
|
|
2,791,071
|
|
|
|
3,394,858
|
|
|
(17.8
|
)
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
Cost of sales and operating expenses, exclusive of depreciation
|
|
|
1,706,316
|
|
|
|
1,975,038
|
|
|
(13.6
|
)
|
Selling, general and administrative expenses, exclusive of
depreciation
|
|
602,482
|
|
|
|
594,435
|
|
|
1.4
|
|
Depreciation
|
|
|
109,534
|
|
|
|
114,711
|
|
|
(4.5
|
)
|
Amortization of intangible assets
|
|
|
16,397
|
|
|
|
14,715
|
|
|
11.4
|
|
Asset impairment and other charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
|
(98.1
|
)
|
Total
|
|
|
2,482,120
|
|
|
|
5,200,773
|
|
|
(52.3
|
)
|
Operating income (loss)
|
|
|
308,951
|
|
|
|
(1,805,915
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Non-operating (expense) income:
|
|
|
|
|
|
|
|
Equity income (loss) in unconsolidated investees, net
|
|
|
150
|
|
|
|
(264,548
|
)
|
|
***
|
|
Interest expense
|
|
|
(92,884
|
)
|
|
|
(92,506
|
)
|
|
0.4
|
|
Other non-operating items
|
|
|
19,039
|
|
|
|
29,534
|
|
|
(35.5
|
)
|
Total
|
|
|
(73,695
|
)
|
|
|
(327,520
|
)
|
|
(77.5
|
)
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
235,256
|
|
|
|
(2,133,435
|
)
|
|
***
|
|
Provision (benefit) for income taxes
|
|
|
79,200
|
|
|
|
(34,500
|
)
|
|
***
|
|
Net income (loss)
|
|
|
156,056
|
|
|
|
(2,098,935
|
)
|
|
***
|
|
Net income attributable to noncontrolling interest
|
|
|
(8,140
|
)
|
|
|
(43
|
)
|
|
***
|
|
Net income (loss) attributable to Gannett Co., Inc.
|
|
$
|
147,916
|
|
|
$
|
(2,098,978
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic
|
|
$
|
0.64
|
|
|
$
|
(9.17
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
$
|
0.64
|
|
|
$
|
(9.17
|
)
|
|
***
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.08
|
|
|
$
|
0.80
|
|
|
(90.0
|
)
|
In 2009, the company recorded workforce restructuring charges and
non-cash impairment charges to reduce the book value of certain goodwill
and property, plant and equipment. The company also recorded
accelerated depreciation expense associated with certain facility
consolidation initiatives and a pension settlement gain. In addition,
the company recorded a non-cash impairment charge for publishing assets
to be sold and a gain on the exchange of debt, which are reflected in
other non-operating items.
In 2008, the company recorded workforce restructuring charges and
non-cash impairment charges to reduce the book value of certain goodwill
and property, plant and equipment and a pension curtailment gain. The
carrying value of certain of the company's investments in newspaper
publishing partnerships and other businesses, which are accounted for
under the equity method, were also written down due to other than
temporary impairments. The company also recorded accelerated
depreciation expense associated with certain facility consolidation
initiatives. In addition, other non-operating items includes a land
sale gain.
The Non-GAAP Financial Information section which follows provides
details of those special items affecting year-to-date results and
presents comparisons of key elements of the Condensed Consolidated
Statements of Income (Loss) excluding these items.
In period 9, 2008, the company increased its ownership in CareerBuilder
to 50.8% from 40.8%, and therefore the results of CareerBuilder
beginning with period 9 are now fully consolidated. In period 7, 2008,
the company increased its ownership in ShopLocal to 100% from 42.5%, and
therefore the results of ShopLocal beginning with period 7 are now fully
consolidated. Prior to these acquisitions, the equity share of
CareerBuilder and ShopLocal results were reported as equity
earnings. Beginning with the third quarter of 2008, a new "Digital"
business segment was reported, which includes CareerBuilder and
ShopLocal from the date of full consolidation as well as PointRoll ,
Planet Discover, Schedule Star and Ripple6 (from the date of acquisition
in period 11, 2008) . Prior period revenues for PointRoll, Planet
Discover and Schedule Star have been reclassified from "All other" to
"Digital".
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
Gannett Co., Inc. and Subsidiaries
|
|
|
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
Thirteen weeks ended
|
% Increase
|
|
June 28, 2009
|
|
June 29, 2008
|
(Decrease)
|
|
|
|
|
|
|
Net Operating Revenues:
|
|
|
|
|
|
Publishing
|
$
|
1,117,273
|
|
|
$
|
1,505,413
|
|
(25.8
|
)
|
Digital
|
|
142,354
|
|
|
|
20,008
|
|
***
|
|
Broadcasting
|
|
152,966
|
|
|
|
192,568
|
|
(20.6
|
)
|
Total
|
$
|
1,412,593
|
|
|
$
|
1,717,989
|
|
(17.8
|
)
|
|
|
|
|
|
|
Operating Income (Loss) (net of depreciation, amortization and
asset impairment and other charges):
|
|
Publishing
|
$
|
88,449
|
|
|
$
|
(2,207,296
|
)
|
***
|
|
Digital
|
|
18,406
|
|
|
|
4,510
|
|
***
|
|
Broadcasting
|
|
50,233
|
|
|
|
79,234
|
|
(36.6
|
)
|
Corporate
|
|
(14,330
|
)
|
|
|
(9,994
|
)
|
43.4
|
|
Total
|
$
|
142,758
|
|
|
$
|
(2,133,546
|
)
|
***
|
|
|
|
|
|
|
|
Depreciation, amortization and asset impairment and other charges:
|
|
|
|
|
Publishing
|
$
|
86,864
|
|
|
$
|
2,546,717
|
|
(96.6
|
)
|
Digital
|
|
8,839
|
|
|
|
1,405
|
|
***
|
|
Broadcasting
|
|
9,667
|
|
|
|
10,160
|
|
(4.9
|
)
|
Corporate
|
|
4,051
|
|
|
|
5,176
|
|
(21.7
|
)
|
Total
|
$
|
109,421
|
|
|
$
|
2,563,458
|
|
(95.7
|
)
|
|
|
|
|
|
|
Operating Cash Flow:
|
|
|
|
|
|
Publishing
|
$
|
175,313
|
|
|
$
|
339,421
|
|
(48.3
|
)
|
Digital
|
|
27,245
|
|
|
|
5,915
|
|
***
|
|
Broadcasting
|
|
59,900
|
|
|
|
89,394
|
|
(33.0
|
)
|
Corporate
|
|
(10,279
|
)
|
|
|
(4,818
|
)
|
***
|
|
Total
|
$
|
252,179
|
|
|
$
|
429,912
|
|
(41.3
|
)
|
|
|
|
|
|
|
In the second quarter of 2009, the company recorded workforce
restructuring charges and non-cash impairment charges to reduce the
book value of certain goodwill and property, plant and equipment.
The company also recorded accelerated depreciation expense in asset
impairment and other charges associated with certain facility
consolidation initiatives.
|
|
|
|
In the second quarter of 2008, the company recorded workforce
restructuring charges and non-cash impairment charges to reduce the
book value of certain goodwill, other intangible assets including
mastheads, and certain property, plant and equipment. The company
also recorded accelerated depreciation expense associated with
certain facility consolidation initiatives. In addition, the company
recorded a pension curtailment gain during the quarter.
|
|
|
|
The Non-GAAP Financial Information section which follows provides
details of those special items affecting second quarter results and
presents comparisons of key elements of the Condensed Consolidated
Statements of Income (Loss) excluding these items. The table below
reflects the impact of those items in the aggregate on the company's
business segment results.
|
|
|
|
|
Special Items Unfavorable (Favorable) Impact on Segment Operating
Income (Loss):
|
|
Publishing
|
$
|
61,853
|
|
|
$
|
2,500,037
|
|
(97.5
|
)
|
Broadcasting
|
|
2,102
|
|
|
|
(2,210
|
)
|
***
|
|
Corporate
|
|
-
|
|
|
|
(2,596
|
)
|
***
|
|
Total
|
$
|
63,955
|
|
|
$
|
2,495,231
|
|
(97.4
|
)
|
In period 9, 2008, the company increased its ownership in CareerBuilder
to 50.8% from 40.8%, and therefore the results of CareerBuilder
beginning with period 9 are now fully consolidated. In period 7, 2008,
the company increased its ownership in ShopLocal to 100% from 42.5%, and
therefore the results of ShopLocal beginning with period 7 are now fully
consolidated. Prior to these acquisitions, the equity share of
CareerBuilder and ShopLocal results were reported as equity
earnings. Beginning with the third quarter of 2008 a new "Digital"
business segment was reported, which includes CareerBuilder and
ShopLocal from the date of full consolidation as well as PointRoll,
Planet Discover, Schedule Star and Ripple6 (from date of acquisition in
period 11, 2008). Prior period results for PointRoll, Planet Discover
and Schedule Star have been reclassified from the "Publishing" segment
to the "Digital" segment.
Broadcasting includes results from the company's 23 television stations
and Captivate Network. Captivate delivers news, information and
advertising to a highly desirable audience demographic through its video
screens located in elevators of office towers and select hotel lobbies
across North America.
Operating Cash Flow represents operating income for each of the
company's business segments plus related depreciation, amortization and
asset impairment and other charges. See attachment for reconciliation
of amounts to the Condensed Consolidated Statements of Income (Loss).
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
Gannett Co., Inc. and Subsidiaries
|
|
|
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended
|
|
Twenty-six weeks ended
|
% Increase
|
|
June 28, 2009
|
|
June 29, 2008
|
(Decrease)
|
|
|
|
|
|
|
Net Operating Revenues:
|
|
|
|
|
|
Publishing
|
$
|
2,209,101
|
|
|
$
|
2,998,209
|
|
(26.3
|
)
|
Digital
|
|
285,514
|
|
|
|
33,901
|
|
***
|
|
Broadcasting
|
|
296,456
|
|
|
|
362,748
|
|
(18.3
|
)
|
Total
|
$
|
2,791,071
|
|
|
$
|
3,394,858
|
|
(17.8
|
)
|
|
|
|
|
|
|
Operating Income (Loss) (net of depreciation, amortization and
asset impairment and other charges):
|
|
Publishing
|
$
|
225,612
|
|
|
$
|
(1,920,902
|
)
|
***
|
|
Digital
|
|
17,206
|
|
|
|
3,648
|
|
***
|
|
Broadcasting
|
|
94,379
|
|
|
|
137,039
|
|
(31.1
|
)
|
Corporate
|
|
(28,246
|
)
|
|
|
(25,700
|
)
|
9.9
|
|
Total
|
$
|
308,951
|
|
|
$
|
(1,805,915
|
)
|
***
|
|
|
|
|
|
|
|
Depreciation, amortization and asset impairment and other charges:
|
Publishing
|
$
|
129,019
|
|
|
$
|
2,600,719
|
|
(95.0
|
)
|
Digital
|
|
17,930
|
|
|
|
2,782
|
|
***
|
|
Broadcasting
|
|
18,270
|
|
|
|
18,655
|
|
(2.1
|
)
|
Corporate
|
|
8,103
|
|
|
|
9,144
|
|
(11.4
|
)
|
Total
|
$
|
173,322
|
|
|
$
|
2,631,300
|
|
93.4
|
|
|
|
|
|
|
|
Operating Cash Flow:
|
|
|
|
|
|
Publishing
|
$
|
354,631
|
|
|
$
|
679,817
|
|
(47.8
|
)
|
Digital
|
|
35,136
|
|
|
|
6,430
|
|
***
|
|
Broadcasting
|
|
112,649
|
|
|
|
155,694
|
|
(27.6
|
)
|
Corporate
|
|
(20,143
|
)
|
|
|
(16,556
|
)
|
21.7
|
|
Total
|
$
|
482,273
|
|
|
$
|
825,385
|
|
(41.6
|
)
|
|
|
|
|
|
|
In 2009, the company recorded workforce restructuring charges and
non-cash impairment charges to reduce the book value of certain
goodwill and property, plant and equipment assets. The company also
recorded accelerated depreciation expense in asset impairment and
other charges associated with certain facility consolidation
initiatives and a pension settlement gain.
|
|
|
|
|
In 2008, the company recorded workforce restructuring charges and
non-cash impairment charges to reduce the book value of certain
goodwill, other intangible assets including mastheads, and certain
property, plant and equipment. The company also recorded accelerated
depreciation expense associated with certain facility consolidation
initiatives. In addition, the company recorded a pension curtailment
gain during the quarter.
|
|
|
|
|
The Non-GAAP Financial Information section which follows provides
details of those special items affecting year-to-date results and
presents comparisons of key elements of the Condensed Consolidated
Statements of Income (Loss) excluding these items. The table below
reflects the impact of those items in the aggregate on the company's
business segment results.
|
|
|
|
|
|
Special Items Unfavorable (Favorable) Impact on Segment Operating
Income (Loss):
|
|
Publishing
|
$
|
28,581
|
|
|
$
|
2,500,587
|
|
(98.9
|
)
|
Broadcasting
|
|
2,102
|
|
|
|
(2,210
|
)
|
***
|
|
Corporate
|
|
-
|
|
|
|
(2,596
|
)
|
***
|
|
Total
|
$
|
30,683
|
|
|
$
|
2,495,781
|
|
(98.8
|
)
|
In period 9, 2008, the company increased its ownership in CareerBuilder
to 50.8% from 40.8%, and therefore the results of CareerBuilder
beginning with period 9 are now fully consolidated. In period 7, 2008,
the company increased its ownership in ShopLocal to 100% from 42.5%, and
therefore the results of ShopLocal beginning with period 7 are now fully
consolidated. Prior to these acquisitions, the equity share of
CareerBuilder and ShopLocal results were reported as equity
earnings. Beginning with the third quarter of 2008 a new "Digital"
business segment was reported, which includes CareerBuilder and
ShopLocal from the date of full consolidation as well as PointRoll,
Planet Discover, Schedule Star and Ripple6 (from date of acquisition in
period 11, 2008). Prior period results for PointRoll, Planet Discover
and Schedule Star have been reclassified from the "Publishing" segment
to the "Digital" segment.
Broadcasting includes results from the company's 23 television stations
and Captivate Network. Captivate delivers news, information and
advertising to a highly desirable audience demographic through its video
screens located in elevators of office towers and select hotel lobbies
across North America.
Operating Cash Flow represents operating income for each of the
company's business segments plus related depreciation, amortization and
asset impairment and other charges. See attachment for reconciliation
of amounts to the Condensed Consolidated Statements of Income (Loss).
NON-GAAP FINANCIAL INFORMATION
|
Gannett Co., Inc. and Subsidiaries
|
|
Unaudited, in thousands of dollars
|
|
|
|
"Operating cash flow", a non-GAAP measure, is defined as operating
income plus depreciation, amortization, and asset impairment and
other 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 June 28, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing
|
|
Digital
|
|
Broadcasting
|
|
Corporate
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
175,313
|
|
|
$
|
27,245
|
|
|
$
|
59,900
|
|
|
$
|
(10,279
|
)
|
|
$
|
252,179
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
(36,993
|
)
|
|
|
(4,409
|
)
|
|
|
(8,345
|
)
|
|
|
(4,051
|
)
|
|
|
(53,798
|
)
|
Amortization
|
|
|
(3,587
|
)
|
|
|
(4,430
|
)
|
|
|
(215
|
)
|
|
|
-
|
|
|
|
(8,232
|
)
|
Asset impairment and other charges
|
|
(46,284
|
)
|
|
|
-
|
|
|
|
(1,107
|
)
|
|
|
-
|
|
|
|
(47,391
|
)
|
Operating income
|
|
$
|
88,449
|
|
|
$
|
18,406
|
|
|
$
|
50,233
|
|
|
$
|
(14,330
|
)
|
|
$
|
142,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended June 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing
|
|
Digital
|
|
Broadcasting
|
|
Corporate
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
339,421
|
|
|
$
|
5,915
|
|
|
$
|
89,394
|
|
|
$
|
(4,818
|
)
|
|
$
|
429,912
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
(42,862
|
)
|
|
|
(130
|
)
|
|
|
(8,136
|
)
|
|
|
(3,981
|
)
|
|
|
(55,109
|
)
|
Amortization
|
|
|
(4,835
|
)
|
|
|
(1,275
|
)
|
|
|
(365
|
)
|
|
|
-
|
|
|
|
(6,475
|
)
|
Asset impairment and other charges
|
|
(2,499,020
|
)
|
|
|
-
|
|
|
|
(1,659
|
)
|
|
|
(1,195
|
)
|
|
|
(2,501,874
|
)
|
Operating income (loss)
|
|
$
|
(2,207,296
|
)
|
|
$
|
4,510
|
|
|
$
|
79,234
|
|
|
$
|
(9,994
|
)
|
|
$
|
(2,133,546
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended June 28, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing
|
|
Digital
|
|
Broadcasting
|
|
Corporate
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
354,631
|
|
|
$
|
35,136
|
|
|
$
|
112,649
|
|
|
$
|
(20,143
|
)
|
|
$
|
482,273
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
(75,581
|
)
|
|
|
(9,116
|
)
|
|
|
(16,734
|
)
|
|
|
(8,103
|
)
|
|
|
(109,534
|
)
|
Amortization
|
|
|
(7,154
|
)
|
|
|
(8,814
|
)
|
|
|
(429
|
)
|
|
|
-
|
|
|
|
(16,397
|
)
|
Asset impairment and other charges
|
|
(46,284
|
)
|
|
|
-
|
|
|
|
(1,107
|
)
|
|
|
-
|
|
|
|
(47,391
|
)
|
Operating income
|
|
$
|
225,612
|
|
|
$
|
17,206
|
|
|
$
|
94,379
|
|
|
$
|
(28,246
|
)
|
|
$
|
308,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended June 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing
|
|
Digital
|
|
Broadcasting
|
|
Corporate
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
679,817
|
|
|
$
|
6,430
|
|
|
$
|
155,694
|
|
|
$
|
(16,556
|
)
|
|
$
|
825,385
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
(90,270
|
)
|
|
|
(226
|
)
|
|
|
(16,266
|
)
|
|
|
(7,949
|
)
|
|
|
(114,711
|
)
|
Amortization
|
|
|
(11,429
|
)
|
|
|
(2,556
|
)
|
|
|
(730
|
)
|
|
|
-
|
|
|
|
(14,715
|
)
|
Asset impairment and other charges
|
|
(2,499,020
|
)
|
|
|
|
|
(1,659
|
)
|
|
|
(1,195
|
)
|
|
|
(2,501,874
|
)
|
Operating income (loss)
|
|
$
|
(1,920,902
|
)
|
|
$
|
3,648
|
|
|
$
|
137,039
|
|
|
$
|
(25,700
|
)
|
|
$
|
(1,805,915
|
)
|
NON-GAAP FINANCIAL INFORMATION
|
|
Gannett Co., Inc. and Subsidiaries
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
In addition to the results reported in accordance with accounting
principles generally accepted in the United States (“GAAP”)
included in this press release, the company has provided
information regarding operating income, non-operating expense,
income before taxes, net income, and diluted earnings per share
(“EPS”) excluding certain special items. Management believes
operating income, non-operating expense, income before taxes, net
income, and EPS excluding these items better reflects the ongoing
performance of the company and enables management and investors to
meaningfully trend, analyze and benchmark the performance of the
company’s operations. These measures are also more comparable to
financial measures reported by our competitors. Operating income,
non-operating expense, income before taxes, net income, and EPS
excluding these items should not be considered a substitute for
these computations calculated in accordance with GAAP.
The tables below reconcile these measures prepared in accordance
with GAAP to these measures excluding special items:
|
|
|
Thirteen weeks ended Jun 28, 2009
|
|
Thirteen weeks ended Jun 29, 2008
|
Operating Income (loss) as reported (GAAP basis)
|
|
$
|
142,758
|
|
|
$
|
(2,133,546
|
)
|
Workforce restructuring and related expenses
|
|
|
16,564
|
|
|
|
39,857
|
|
Asset impairment and facility consolidation charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
Pension gain
|
|
|
-
|
|
|
|
(46,500
|
)
|
Adjusted Operating Income (loss) (Non-GAAP basis)
|
|
$
|
206,713
|
|
|
$
|
361,685
|
|
|
|
|
|
|
Non-operating (expense) income as reported (GAAP basis)
|
|
$
|
(24,551
|
)
|
|
$
|
(291,388
|
)
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
260,643
|
|
Debt exchange gain
|
|
|
(42,746
|
)
|
|
|
-
|
|
Impairment of publishing assets to be sold
|
|
|
28,035
|
|
|
|
-
|
|
Adjusted Non-operating (expense) income (Non-GAAP basis)
|
|
$
|
(39,262
|
)
|
|
$
|
(30,745
|
)
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP basis)
|
|
$
|
118,207
|
|
|
$
|
(2,424,934
|
)
|
Workforce restructuring and related expenses
|
|
|
16,564
|
|
|
|
39,857
|
|
Asset impairment and facility consolidation charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
260,643
|
|
Debt exchange gain
|
|
|
(42,746
|
)
|
|
|
-
|
|
Pension gain
|
|
|
-
|
|
|
|
(46,500
|
)
|
Impairment of publishing assets to be sold
|
|
|
28,035
|
|
|
|
-
|
|
Adjusted income (loss) before income taxes (Non-GAAP basis)
|
|
$
|
167,451
|
|
|
$
|
330,940
|
|
|
|
|
|
|
Net income (loss) attributable to Gannett Co., Inc. as reported
(GAAP basis)
|
|
$
|
70,481
|
|
|
$
|
(2,290,756
|
)
|
Workforce restructuring and related expenses
|
|
|
10,331
|
|
|
|
26,357
|
|
Asset impairment and facility consolidation charges
|
|
|
29,633
|
|
|
|
2,367,856
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
162,400
|
|
Debt exchange gain
|
|
|
(26,075
|
)
|
|
|
-
|
|
Pension gain
|
|
|
-
|
|
|
|
(28,940
|
)
|
Impairment of publishing assets to be sold
|
|
|
24,155
|
|
|
|
-
|
|
Adjusted net income (loss) attributable to Gannett Co., Inc.
(Non-GAAP basis)
|
|
$
|
108,525
|
|
|
$
|
236,917
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
Earnings per share (GAAP basis)
|
|
$
|
0.30
|
|
|
$
|
(10.03
|
)
|
Workforce restructuring and related expenses
|
|
|
0.04
|
|
|
|
0.12
|
|
Asset impairment and facility consolidation charges
|
|
|
0.13
|
|
|
|
10.37
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
0.71
|
|
Debt exchange gain
|
|
|
(0.11
|
)
|
|
|
-
|
|
Pension gain
|
|
|
-
|
|
|
|
(0.13
|
)
|
Impairment of publishing assets to be sold
|
|
|
0.10
|
|
|
|
-
|
|
Adjusted earnings per share (Non-GAAP basis)
|
|
$
|
0.46
|
|
|
$
|
1.04
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
Gannett Co., Inc. and Subsidiaries
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
In addition to the results reported in accordance with accounting
principles generally accepted in the United States (“GAAP”)
included in this press release, the company has provided
information regarding operating income, non-operating expense,
income before taxes, net income, and diluted earnings per share
(“EPS”) excluding certain special items. Management believes
operating income, non-operating expense, income before taxes, net
income, and EPS excluding these items better reflects the ongoing
performance of the company and enables management and investors to
meaningfully trend, analyze and benchmark the performance of the
company’s operations. These measures are also more comparable to
financial measures reported by our competitors. Operating income,
non-operating expense, income before taxes, net income, and EPS
excluding these items should not be considered a substitute for
these computations calculated in accordance with GAAP.
The tables below reconcile these measures prepared in accordance
with GAAP to these measures excluding special items:
|
|
|
Twenty-six weeks ended Jun 28, 2009
|
|
Twenty-six weeks ended Jun 29, 2008
|
Operating Income (loss) as reported (GAAP basis)
|
|
$
|
308,951
|
|
|
$
|
(1,805,915
|
)
|
|
Workforce restructuring and related expenses
|
|
|
23,127
|
|
|
|
40,408
|
|
|
Asset impairment and facility consolidation charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
|
Pension Gain
|
|
|
(39,835
|
)
|
|
|
(46,500
|
)
|
|
Adjusted Operating Income (loss) (Non-GAAP basis)
|
|
$
|
339,634
|
|
|
$
|
689,867
|
|
|
|
|
|
|
|
|
Non-operating (expense) income as reported (GAAP basis)
|
|
$
|
(73,695
|
)
|
|
$
|
(327,520
|
)
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
260,643
|
|
|
Debt exchange gain
|
|
|
(42,746
|
)
|
|
|
-
|
|
|
Impairment of publishing assets to be sold
|
|
|
28,035
|
|
|
|
-
|
|
|
Tysons Land Sale Gain
|
|
|
-
|
|
|
|
(25,530
|
)
|
|
Adjusted Non-operating (expense) income (Non-GAAP basis)
|
|
$
|
(88,406
|
)
|
|
$
|
(92,407
|
)
|
|
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP basis)
|
|
$
|
235,256
|
|
|
$
|
(2,133,435
|
)
|
|
Workforce restructuring and related expenses
|
|
|
23,127
|
|
|
|
40,408
|
|
|
Asset impairment and facility consolidation charges
|
|
|
47,391
|
|
|
|
2,501,874
|
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
260,643
|
|
|
Debt exchange gain
|
|
|
(42,746
|
)
|
|
|
-
|
|
|
Pension gain
|
|
|
(39,835
|
)
|
|
|
(46,500
|
)
|
|
Impairment of publishing assets to be sold
|
|
|
28,035
|
|
|
|
-
|
|
|
Tysons Land Sale Gain
|
|
|
-
|
|
|
|
(25,530
|
)
|
|
Adjusted income (loss) before income taxes (Non-GAAP basis)
|
|
$
|
251,228
|
|
|
$
|
597,460
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Gannett Co., Inc. as reported
(GAAP basis)
|
|
$
|
147,916
|
|
|
$
|
(2,098,978
|
)
|
|
Workforce restructuring and related expenses
|
|
|
14,593
|
|
|
|
26,808
|
|
|
Asset impairment and facility consolidation charges
|
|
|
29,633
|
|
|
|
2,367,856
|
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
162,400
|
|
|
Debt exchange gain
|
|
|
(26,075
|
)
|
|
|
-
|
|
|
Pension gain
|
|
|
(24,735
|
)
|
|
|
(28,940
|
)
|
|
Impairment of publishing assets to be sold
|
|
|
24,155
|
|
|
|
-
|
|
|
Tysons Land Sale Gain
|
|
|
-
|
|
|
|
(15,829
|
)
|
|
Adjusted net income (loss) attributable to Gannett Co., Inc.
(Non-GAAP basis)
|
|
$
|
165,487
|
|
|
$
|
413,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
Earnings per share (GAAP basis)
|
|
$
|
0.64
|
|
|
$
|
(9.17
|
)
|
|
Workforce restructuring and related expenses
|
|
|
0.06
|
|
|
|
0.12
|
|
|
Asset impairment and facility consolidation charges
|
|
|
0.13
|
|
|
|
10.35
|
|
|
Impairment of newspaper publishing partnerships and other equity
method investments
|
|
|
-
|
|
|
|
0.71
|
|
|
Debt exchange gain
|
|
|
(0.11
|
)
|
|
|
-
|
|
|
Pension gain
|
|
|
(0.11
|
)
|
|
|
(0.13
|
)
|
|
Impairment of publishing assets to be sold
|
|
|
0.10
|
|
|
|
-
|
|
|
Tysons Land Sale Gain
|
|
|
-
|
|
|
|
(0.07
|
)
|
|
Adjusted earnings per share (Non-GAAP basis)
|
|
$
|
0.71
|
|
|
$
|
1.80
|
|
(a)
|
(a) Total per diluted share amount does not sum due to rounding.
Source: Gannett Co., Inc.
Gannett Co., Inc. For investor inquiries, contact: Jeffrey
Heinz Director, Investor Relations 703-854-6917 jheinz@gannett.com
For media inquiries, contact: Robin Pence Vice President of
Corporate Communications 703-854-6049 rpence@gannett.com
|