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Gannett Announces Fourth Quarter 2021 Results

49% Digital-Only Paid Subscriber Growth to Over 1.6 million Paid Subscribers

Total Digital Revenues Surpassed $1.0 billion in 2021, 32% of Total Revenues and Up 9% Year-over-Year and Up 11% Over Prior Year Same Store(1)

Repaid $57.5 million in Debt During the Quarter and adopted a $100 million Share Repurchase Program in 2022

Gannett Co., Inc. ("Gannett", "we", "us", "our", or the "Company") (NYSE: GCI) today reported its financial results for the fourth quarter ended December 31, 2021.

"During 2021 we made excellent progress executing on our strategy to evolve our business. We continued to make meaningful progress against our key operating pillars and we expect to carry this momentum forward. We achieved several key milestones in 2021, including total digital revenues surpassing $1 billion with growth exceeding 9% year-over-year and 11% on a same store basis(1) year-over-year. Further, our digital-only circulation revenue surpassed $100 million in 2021 and paid digital-only subscribers surpassed 1.6 million. We expect continued strong growth in these categories. In addition, we repaid over $235 million in debt during 2021, and through two refinancing efforts, lowered our cost of debt to approximately 5.8% and our first lien net leverage has dropped to 1.7x at year end," said Michael Reed, Gannett Chairman and Chief Executive Officer.

"A benefit of the significant progress we have made with regard to our strategy is better visibility going forward. As part of our enhanced guidance, we expect 2022 free cash flow to nearly double from 2021, and for free cash flow to grow through 2025 at a 40% compound annual growth rate. We expect to surpass 2 million paid digital subscribers this year, and to grow at an annual rate of approximately 40% through 2025."

"With the significant growth in free cash flow expected in 2022, we plan to further invest in our growth segments. We expect to invest $80 million across content, marketing, data, product, and digital marketing solutions sales and support operations during 2022 to drive meaningful growth. We believe that our strategy and these investments help position our business to reach the anticipated inflection point in our total Revenue and Adjusted EBITDA during 2024. We also believe we will have sustained revenue growth beginning in 2024."

"The anticipated significant growth in free cash flow is also expected to allow us to continue our aggressive debt repayment strategy. We ended 2021 with approximately $131 million in cash on the balance sheet. Considering our liquidity position, lower leverage profile and our recently announced $100 million stock repurchase program, along with expected increased free cash flows, we believe we are well-positioned to maximize shareholder returns."

Fourth Quarter 2021 Financial Highlights:

  • Total revenues of $826.5 million decreased 5.6% compared to the prior year quarter
    • Same store revenues(1) decreased 4.3% compared to the fourth quarter of 2020
  • Total digital revenues were $272.6 million or 33% of total revenues, up 5.0% over the same period in the prior year on a same store(1) basis
  • Net loss attributable to Gannett of $22.4 million and margin loss of 2.7%
  • Adjusted net income attributable to Gannett(1) of $42.8 million
  • Adjusted EBITDA(1) totaled $115.4 million, a decrease of 22.5% compared to the fourth quarter of 2020
    • Adjusted EBITDA margin(1) of 14.0%
  • Cash used for operating activities of $5.9 million and free cash flow(1) usage of $18.2 million

Additional Business Highlights:

  • Digital-only paid subscribers were up 49% compared to the prior year quarter and exceeded 1.6 million at the end of the fourth quarter of 2021
    • Digital-only circulation revenues of $27.6 million grew 25.5% compared to the prior year quarter. For the full year 2021, digital-only circulation revenues surpassed $100 million, growing 33.5% compared to 2020
  • 183 million average monthly unique visitors in the fourth quarter of 2021 across USA TODAY NETWORK (based on December 2021 Comscore Media Metrix®) and the U.K. digital properties
  • Digital Marketing Solutions segment revenues were $113.2 million, and on a same store basis(1) increased 7.2% in the fourth quarter of 2021 compared to the same period in the prior year
    • Total core platform customers was 15,200 in the fourth quarter of 2021, up 14.0% from the same quarter prior year
    • Net income attributable to Gannett margin within the segment was 6.6% in the fourth quarter of 2021 versus 0.5% in the same quarter of the prior year
    • Adjusted EBITDA margin(1) within the segment increased to 12.6% in the fourth quarter of 2021 versus 8.9% in the same quarter of the prior year
  • During the fourth quarter of 2021, the Company repaid approximately $57.5 million of debt compromised of:
    • $9.8 million in debt under the previous five-year senior secured term loan (the "5-Year Term Loan"), prior to the refinancing of the New Senior Secured Term Loan (see defined term below)
    • Approximately $35.9 million in principal under its five-year senior secured term loan facility in an aggregate principal amount of $516 million (the "New Senior Secured Term Loan") using the proceeds from real estate and other asset sales
    • Further, the Company entered into separate, privately negotiated agreements with certain holders of its 6.0% Senior Secured Convertible Notes due 2027 (the "2027 Notes") and repurchased $11.8 million aggregate principal of its outstanding 2027 Notes for $15.3 million in cash, including accrued interest during the fourth quarter of 2021
    • Total real estate and other asset sales totaled $45.5 million in the fourth quarter of 2021 and $106.6 million for the full year ended December 31, 2021
    • Total debt principal outstanding as of December 31, 2021 was $1.369 billion, comprised of (i) $480.1 million under the New Senior Secured Term Loan, (ii) $400.0 million aggregate principal amount of 6.00% first lien notes due November 1, 2026 (the "2026 Senior Notes"), (iii) $485.3 million aggregate principal amount of the 2027 Notes, and (iv) $3.3 million aggregate principal value of the remaining 4.75% convertible senior notes due 2024
  • As of December 31, 2021, the Company had cash and cash equivalents of $130.8 million
    • First Lien Net Leverage(2) was 1.7x as of December 31, 2021
  • Subsequent to December 31, 2021:
    • In accordance with the Term Loan Amendment (see defined term below), the Company expects to make an excess cash debt payment of approximately $31 million during the first quarter of 2022
    • Adopted stock repurchase program for the repurchase of up to $100 million of the Company's common stock
    • Amended our New Senior Secured Term Loan (the "Term Loan Amendment") to provide for incremental term loans in an aggregate principal amount not to exceed $50 million and to transition the interest rate base from LIBOR to Adjusted Term SOFR due to regulatory requirements. The Term Loan Amendment also expanded the definition of "Permitted Restricted Payments" to include up to $50 million of Company stock repurchases consummated on or prior to December 31, 2022. Following this transaction, total debt outstanding as of February 4, 2022 was $1.419 billion, which includes the $530.1 million New Senior Secured Term Loan, $485.3 million of 2027 Notes, $400.0 million of 2026 Senior Notes and $3.3 million of 2024 Notes
(1)

See "Use of Non-GAAP Information" below for information about this non-GAAP measure.

(2)

As of December 31, 2021, the First Lien Net Leverage ratio was calculated by subtracting cash on the balance sheet from the sum of both our New Senior Secured Term Loan and the 2026 Senior Notes and dividing that by Q4 2021 LTM Adjusted EBITDA. Our 2027 Notes are second lien as of the completion of the New Senior Secured Term Loan refinancing in October 2021.

 

Financial Highlights

 

in thousands

Fourth Quarter 2021

 

Full Year 2021

Revenues

$

826,539

 

 

$

3,208,083

 

Net loss attributable to Gannett

 

(22,448

)

 

 

(134,962

)

Adjusted EBITDA(3) (non-GAAP)

 

115,411

 

 

 

433,712

 

Adjusted Net income attributable to Gannett(3) (non-GAAP)

 

42,785

 

 

 

113,986

 

Cash (used in) provided by operating activities

 

(5,894

)

 

 

127,453

 

Free cash flow(3) (non-GAAP)

 

(18,189

)

 

 

87,893

 

(3)

Refer to "Use of Non-GAAP Information" below for the Company’s definition of Adjusted EBITDA, Adjusted Net income attributable to Gannett, and Free cash flow, as well as the reconciliation of such measures to the most comparable GAAP measure.

 

Business Outlook

The Company's outlook is based on management’s current expectations and beliefs and are subject to numerous risks and uncertainties, many of which are beyond the Company's control. The following statements are forward-looking and actual results may differ materially, including as a result of changes in market conditions and other risks and uncertainties, including the factors set forth under "Cautionary Statement Regarding Forward-Looking Statements" below. The Company undertakes no obligation or duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations, except as required by law. Additionally, the Company's estimates assume no substantial negative pandemic-related business impact and do not factor in the impact of any future acquisitions or dispositions. The Company's outlook reflects an expected $80 million in investments across content, marketing, data, product, and digital marketing solutions sales and support operations in 2022 and anticipated capital expenditures of $40 million to $45 million for full year 2022. The Company believes these investments are critical to achieving long-term growth for the Company and will help create an inflection point in both its total Revenue and Adjusted EBITDA within 2024. Following 2024, the Company's outlook projects ongoing and sustainable growth in total Revenue, Net Income, Cash provided by operating activities, Free cash flow, and Adjusted EBITDA. Including the Company's estimate of $40 million to $45 million annually in capital expenditures, the Company's outlook projects a compound annual growth rate in free cash flow of over 40% from 2021 to 2025. In addition, the Company's estimates assume 6 million digital only subscribers by year end 2025, a 40% compound annual growth rate from 2020.

in thousands

Full Year 2021 Results

Full Year 2022 Outlook

First Quarter

2022 Outlook

Revenues

$3.21B

$3.07B to $3.16B

$745 to $755M

Same-store total revenues(3) Year-Over-Year

(3.9) %

(2)% to +1%

(3)% to (1)%

Net income (loss) attributable to Gannett

($135M)

$50M to $70M

~($5M)

Net cash flow provided by operating activities

$127M

$205M to $225M

~$1M

Free cash flow(3)(4) (non-GAAP)

$88M

$160M to $180M

~($10M)

Adjusted EBITDA(3)(5) (non-GAAP)

$434M

$380M to $400M

$55M to $60M

Ending Digital only subscribers

1.6M

2.0M to 2.2M

1.7M

(3)

Refer to "Use of Non-GAAP Information" below for the Company’s definition of Adjusted EBITDA, Adjusted Net income (loss) attributable to Gannett, Same-store total revenues, and Free cash flow, as well as the reconciliation of such measures to the most comparable GAAP measure.

(4)

Capital expenditures are assumed at $40 million to $45 million for full year 2022. Figure does not include asset disposition proceeds which we estimate will be approximately $50 million in 2022.

(5)

Refer to "Business Outlook" on Table 11 and Table 12 below for a reconciliation of non-GAAP outlook measures to corresponding GAAP measures.

 

Earnings Conference Call

Management will host a conference call on Thursday, February 24, 2022 at 8:30 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of Gannett’s website, investors.gannett.com. The conference call may be accessed by dialing 1-877-451-6152 (from within the U.S.) or 1-201-389-0879 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Gannett Fourth Quarter Earnings Call" or access code "13724043". A simultaneous webcast of the conference call will be available to the public on a listen-only basis at investors.gannett.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast. A telephonic replay of the conference call will also be available approximately two hours following the call’s completion through 11:59 P.M. Eastern Time on Thursday, March 10, 2022 by dialing 1-844-512-2921 (from within the U.S.) or 1-412-317-6671 (from outside of the U.S.); please reference access code "13724043".

About Gannett

Gannett Co., Inc. (NYSE: GCI) is a subscription-led and digitally-focused media and marketing solutions company committed to empowering communities to thrive. With an unmatched reach at the national and local level, Gannett touches the lives of millions with our Pulitzer Prize-winning content, consumer experiences and benefits, and advertiser products and services. Our current portfolio of media assets includes USA TODAY, local media organizations in 45 states in the U.S., and Newsquest, a wholly owned subsidiary operating in the United Kingdom with more than 120 local news media brands. Gannett also owns digital marketing services companies branded LOCALiQ, and runs one of the largest media-owned events business in the U.S., USA TODAY NETWORK Ventures. To connect with us, visit www.gannett.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our business outlook, digital revenue performance and growth, growth in our Digital Marketing Solutions segment, growth of and demand for our digital-only subscriptions and digital marketing and advertising services, any future share repurchases, including under our stock repurchase program, expectations regarding our free cash flows, revenues, income attributable to Gannett, same-store revenues and cash flows, expectations regarding our growth rate and inflection point, including growth in revenues and Adjusted EBITDA, our ability to create long-term stockholder value, our expectations, in terms of both amount and timing, with respect to debt repayment, our expected capital expenditures, our strategy, our ability to achieve our operating priorities, our long-term opportunities, and future revenue trends and our ability to influence trends. Words such as "expect(s)", "plan(s)", "believes(s)", "will", "target", "outlook" and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in the Company’s most recent Annual Report on Form 10-K, our quarterly reports on Form 10-Q, and our other filings with the Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Except to the extent required by law, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

 

GANNETT CO., INC.

CONSOLIDATED BALANCE SHEETS

Table No. 1

 

 

 

In thousands, except share data

December 31,

2021

 

December 31,

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

130,756

 

 

$

170,725

 

Accounts receivable, net of allowance for doubtful accounts of $16,470 and $20,843, respectively

 

328,733

 

 

 

314,305

 

Inventories

 

37,662

 

 

 

35,075

 

Prepaid expenses and other current assets

 

80,110

 

 

 

116,581

 

Total current assets

 

577,261

 

 

 

636,686

 

Property, plant, and equipment, net

 

415,384

 

 

 

590,272

 

Operating lease assets

 

271,935

 

 

 

289,504

 

Goodwill

 

533,709

 

 

 

534,088

 

Intangible assets, net

 

713,153

 

 

 

824,650

 

Deferred tax assets

 

32,399

 

 

 

90,240

 

Pension plan and other assets

 

284,228

 

 

 

143,474

 

Total assets

$

2,828,069

 

 

$

3,108,914

 

 

 

 

 

Liabilities and equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

357,014

 

 

$

378,246

 

Deferred revenue

 

184,838

 

 

 

186,007

 

Current portion of long-term debt

 

69,456

 

 

 

128,445

 

Other current liabilities

 

51,218

 

 

 

48,602

 

Total current liabilities

 

662,526

 

 

 

741,300

 

Long-term debt

 

769,446

 

 

 

890,323

 

Convertible debt

 

393,354

 

 

 

581,405

 

Deferred tax liabilities

 

28,812

 

 

 

6,855

 

Pension and other postretirement benefit obligations

 

71,937

 

 

 

99,765

 

Long-term operating lease liabilities

 

254,969

 

 

 

274,460

 

Other long-term liabilities

 

117,410

 

 

 

151,847

 

Total noncurrent liabilities

 

1,635,928

 

 

 

2,004,655

 

Total liabilities

 

2,298,454

 

 

 

2,745,955

 

Redeemable noncontrolling interests

 

 

 

 

(1,150

)

Commitments and contingent liabilities

 

 

 

 

 

 

 

Equity

 

 

 

Preferred stock, $0.01 par value, 300,000 shares authorized, of which 150,000 shares are designated as Series A Junior Participating Preferred Stock, none of which were issued and outstanding at December 31, 2021 and December 31, 2020

 

 

 

 

 

Common stock, $0.01 par value per share, 2,000,000,000 shares authorized; 144,667,389 shares issued and 142,299,399 shares outstanding at December 31, 2021; 139,494,741 shares issued and 138,102,993 shares outstanding at December 31, 2020

 

1,446

 

 

 

1,395

 

Treasury stock, at cost, 2,367,990 and 1,391,748 shares at December 31, 2021 and December 31, 2020, respectively

 

(8,151

)

 

 

(4,903

)

Additional paid-in capital

 

1,400,206

 

 

 

1,103,881

 

Accumulated deficit

 

(921,399

)

 

 

(786,437

)

Accumulated other comprehensive income

 

59,998

 

 

 

50,173

 

Total Gannett stockholders equity

 

532,100

 

 

 

364,109

 

Noncontrolling interests

 

(2,485

)

 

 

 

Total equity

 

529,615

 

 

 

364,109

 

Total liabilities and equity

$

2,828,069

 

 

$

3,108,914

 

 

GANNETT CO., INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

Table No. 2

Three months ended December 31,

 

Year ended December 31,

In thousands, except per share amounts

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

(Unaudited)

 

 

 

 

Advertising and marketing services

$

430,674

 

 

$

461,088

 

 

$

1,651,161

 

 

$

1,710,244

 

Circulation

 

307,276

 

 

 

338,468

 

 

 

1,249,674

 

 

 

1,391,996

 

Other

 

88,589

 

 

 

75,891

 

 

 

307,248

 

 

 

303,430

 

Total operating revenues

 

826,539

 

 

 

875,447

 

 

 

3,208,083

 

 

 

3,405,670

 

Operating costs

 

470,305

 

 

 

498,733

 

 

 

1,901,564

 

 

 

2,034,272

 

Selling, general and administrative expenses

 

249,880

 

 

 

232,514

 

 

 

902,064

 

 

 

999,789

 

Depreciation and amortization

 

49,506

 

 

 

58,113

 

 

 

203,958

 

 

 

263,819

 

Integration and reorganization costs

 

13,817

 

 

 

71,753

 

 

 

49,284

 

 

 

145,731

 

Asset impairments

 

842

 

 

 

2,585

 

 

 

3,976

 

 

 

11,029

 

Goodwill and intangible impairments

 

 

 

 

 

 

 

 

 

 

393,446

 

Loss (gain) on sale or disposal of assets, net

 

8,002

 

 

 

(7,220

)

 

 

17,208

 

 

 

(5,680

)

Other operating expenses

 

9,598

 

 

 

891

 

 

 

20,952

 

 

 

11,152

 

Total operating expenses

 

801,950

 

 

 

857,369

 

 

 

3,099,006

 

 

 

3,853,558

 

Operating income

 

24,589

 

 

 

18,078

 

 

 

109,077

 

 

 

(447,888

)

Interest expense

 

26,378

 

 

 

54,623

 

 

 

135,748

 

 

 

228,513

 

Loss on early extinguishment of debt

 

22,712

 

 

 

42,110

 

 

 

48,708

 

 

 

43,760

 

Non-operating pension income

 

(23,713

)

 

 

(17,716

)

 

 

(95,357

)

 

 

(72,149

)

Loss on convertible notes derivative

 

 

 

 

74,329

 

 

 

126,600

 

 

 

74,329

 

Other non-operating income, net

 

(14,747

)

 

 

(1,506

)

 

 

(18,701

)

 

 

(16,494

)

Non-operating expense

 

10,630

 

 

 

151,840

 

 

 

196,998

 

 

 

257,959

 

Income (loss) before income taxes

 

13,959

 

 

 

(133,762

)

 

 

(87,921

)

 

 

(705,847

)

Provision (benefit) for income taxes

 

36,683

 

 

 

(11,250

)

 

 

48,250

 

 

 

(33,450

)

Net loss

$

(22,724

)

 

$

(122,512

)

 

$

(136,171

)

 

$

(672,397

)

Net loss attributable to noncontrolling interests

 

(276

)

 

 

(338

)

 

 

(1,209

)

 

 

(1,918

)

Net loss attributable to Gannett

$

(22,448

)

 

$

(122,174

)

 

$

(134,962

)

 

$

(670,479

)

 

 

 

 

 

 

 

 

Loss per share attributable to Gannett - basic

$

(0.17

)

 

$

(0.92

)

 

$

(1.00

)

 

$

(5.09

)

Loss per share attributable to Gannett - diluted

$

(0.17

)

 

$

(0.92

)

 

$

(1.00

)

 

$

(5.09

)

 

GANNETT CO., INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Table No. 3

Year ended December 31,

In thousands

 

2021

 

 

 

2020

 

Operating activities

 

 

 

Net loss

$

(136,171

)

 

$

(672,397

)

Adjustments to reconcile net loss to operating cash flows:

 

 

 

Depreciation and amortization

 

203,958

 

 

 

263,819

 

Share-based compensation expense

 

18,439

 

 

 

26,350

 

Non-cash interest expense

 

25,507

 

 

 

24,086

 

Provision (benefit) for deferred income taxes

 

44,970

 

 

 

(30,175

)

Loss (gain) on sale or disposal of assets, net

 

17,208

 

 

 

(5,680

)

Loss on convertible notes derivative

 

126,600

 

 

 

74,329

 

Loss on early extinguishment of debt

 

48,708

 

 

 

43,760

 

Asset impairments

 

3,976

 

 

 

11,029

 

Goodwill and intangible impairments

 

 

 

 

393,446

 

Pension and other postretirement benefit obligations

 

(150,824

)

 

 

(117,522

)

Change in assets and liabilities:

 

 

 

Accounts receivables, net

 

(33,246

)

 

 

111,506

 

Inventory

 

(2,824

)

 

 

19,965

 

Prepaid expenses

 

5,576

 

 

 

4,078

 

Accounts payable and accrued liabilities

 

(33,457

)

 

 

(66,377

)

Deferred revenue

 

931

 

 

 

(19,348

)

Other assets and liabilities

 

(11,898

)

 

 

(3,099

)

Cash provided by operating activities

 

127,453

 

 

 

57,770

 

Investing activities

 

 

 

Acquisitions, net of cash acquired

 

(125

)

 

 

 

Purchases of property, plant, and equipment

 

(39,560

)

 

 

(36,975

)

Proceeds from sale of publications, real estate and other assets

 

111,765

 

 

 

196,344

 

Insurance proceeds received for damage to property

 

 

 

 

1,643

 

Change in other investing activities

 

(1,433

)

 

 

(876

)

Cash provided by investing activities

 

70,647

 

 

 

160,136

 

Financing activities

 

 

 

Payments of debt issuance costs

 

(21,071

)

 

 

(2,307

)

Borrowings of long-term debt

 

1,934,940

 

 

 

 

Repayments of long-term debt

 

(2,156,046

)

 

 

(681,050

)

Repurchase of convertible debt

 

(15,012

)

 

 

 

Proceeds from convertible debt

 

 

 

 

497,094

 

Changes in other financing activities

 

(3,983

)

 

 

(15,079

)

Cash used for financing activities

 

(261,172

)

 

 

(201,342

)

Effect of currency exchange rate change

 

(35

)

 

 

1,498

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

(63,107

)

 

 

18,062

 

Balance of cash, cash equivalents and restricted cash at beginning of year

 

206,726

 

 

 

188,664

 

Cash, cash equivalents and restricted cash at end of year

$

143,619

 

 

$

206,726

 

 

GANNETT CO., INC.

SEGMENT INFORMATION

(Unaudited)

 

Table No. 4

Three months ended December 31,

 

Year ended December 31,

In thousands

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Operating revenues:

 

 

 

 

 

 

 

Publishing

$

746,798

 

 

$

794,179

 

 

$

2,886,735

 

 

$

3,080,447

 

Digital Marketing Solutions

 

113,210

 

 

 

107,318

 

 

 

442,299

 

 

 

428,605

 

Corporate and Other

 

1,943

 

 

 

2,820

 

 

 

8,371

 

 

 

10,960

 

Intersegment eliminations

 

(35,412

)

 

 

(28,870

)

 

 

(129,322

)

 

 

(114,342

)

Total

$

826,539

 

 

$

875,447

 

 

$

3,208,083

 

 

$

3,405,670

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

Publishing

$

116,575

 

 

$

147,428

 

 

$

433,973

 

 

$

459,195

 

Digital Marketing Solutions

 

14,235

 

 

 

9,514

 

 

 

50,960

 

 

 

24,361

 

Corporate and Other

 

(15,399

)

 

 

(8,113

)

 

 

(51,221

)

 

 

(69,661

)

Total

$

115,411

 

 

$

148,829

 

 

$

433,712

 

 

$

413,895

 

 

USE OF NON-GAAP INFORMATION

The Company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a U.S. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not be considered in isolation from or as a substitute for the related U.S. GAAP measures and should be read together with financial information presented on a U.S. GAAP basis.

The Company defines its non-GAAP measures as follows:

  • Adjusted EBITDA is a non-GAAP performance measure the Company believes offers a useful view of the overall and segment operations of our business. The Company defines Adjusted EBITDA as Net income (loss) attributable to Gannett before: (1) Income tax expense (benefit), (2) Interest expense, (3) Gains or losses on the early extinguishment of debt, (4) Non-operating pension income, (5) Loss on convertible notes derivative, (6) Depreciation and amortization, (7) Integration and reorganization costs, (8) Other operating expenses, including third-party debt expenses and acquisition costs, (9) Asset impairments, (10) Goodwill and intangible impairments, (11) Gains or losses on the sale or disposal of assets, (12) Share-based compensation, and (13) certain other non-recurring charges. The most directly comparable U.S. GAAP measure is Net income (loss) attributable to Gannett.
  • Adjusted EBITDA margin is a non-GAAP performance measure the Company believes offers a useful view of the overall and segment operations of our business. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total Operating revenues.
  • Adjusted Net income (loss) attributable to Gannett is a non-GAAP performance measure the Company believes offers a useful view of the overall operations of our business and is useful to analysts and investors in evaluating the results of operations and operational trends. The Company defines Adjusted Net income (loss) attributable to Gannett before (1) Gains or losses on the early extinguishment of debt, (2) Loss on convertible notes derivative, (3) Integration and reorganization costs, (4) Other operating expenses, including third-party debt expenses and acquisition costs, (5) Asset impairments, (6) Goodwill and intangibles impairments, (7) Gains or losses on the sale or disposal of assets, (8) certain other non-recurring charges, and (9) the tax impact of the above items.
  • Free cash flow is a non-GAAP liquidity measure that adjusts our reported U.S. GAAP results for items we believe are critical to the ongoing success of our business. The Company defines Free cash flow as Cash provided by (used for) operating activities as reported on the Consolidated Statement of Cash Flows less capital expenditures, which results in a figure representing Free cash flow available for use in operations, additional investments, debt obligations, and returns to stockholders. The most directly comparable U.S. GAAP financial measure is Cash provided by (used for) operating activities.
  • Same store revenues is a non-GAAP performance measure based on GAAP revenues for Gannett for the current period, excluding (i) exited operations, (ii) currency impacts, and (iii) deferred revenue impacts related to the acquisition of Legacy Gannett.

Management’s Use of Non-GAAP Measures

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues are not measurements of financial performance under U.S. GAAP and should not be considered in isolation or as an alternative to income from operations, net income (loss), margin, revenues, cash flow provided by (used for) operating activities, or any other measure of performance or liquidity derived in accordance with U.S. GAAP. We believe these non-GAAP financial measures, as we have defined them, are helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations. These measures provide an assessment of controllable expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance.

We use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues as measures of our day-to-day operating performance, which is evidenced by the publishing and delivery of news and other media and excludes certain expenses that may not be indicative of our day-to-day business operating results.

Limitations of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues

Each of our non-GAAP measures have limitations as analytical tools. They should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings or cash flows. Material limitations in making the adjustments to our earnings to calculate Adjusted EBITDA and Adjusted Net income (loss) attributable to Gannett using these non-GAAP financial measures as compared to U.S. GAAP net income (loss) include: the cash portion of interest / financing expense, income tax (benefit) provision, and charges related to asset impairments, which may significantly affect our financial results.

Management believes these items are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial measures to supplement our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues are not alternatives to net income, margin, income from operations, cash flows provided by (used for) operations or revenues as calculated and presented in accordance with U.S. GAAP. As such, they should not be considered or relied upon as substitutes or alternatives for any such U.S. GAAP financial measure. We strongly urge you to review the reconciliations of Net income (loss) attributable to Gannett to Adjusted EBITDA, Adjusted EBITDA margin, Net income (loss) attributable to Gannett to Adjusted Net income (loss) attributable to Gannett, Cash provided by (used for) operations to Free cash flow and Revenues to Same Store revenues along with our Consolidated financial statements included elsewhere in this report. We also strongly urge you not to rely on any single financial measure to evaluate our business. In addition, because Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues are not measures of financial performance under U.S. GAAP and are susceptible to varying calculations, the Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues measures as presented in this report may differ from and may not be comparable to similarly titled measures used by other companies.

Non-GAAP Outlook

Our 2022 outlook included in this release includes certain non-GAAP measures, including Same store revenues, Adjusted EBITDA and Free cash flow. The outlook for these items assumes no substantial pandemic-related business continuity issues in 2022 and does not factor in the impact of any further acquisitions or dispositions within 2022. We have provided these non-GAAP measures for future guidance for the same reasons that were outlined above for historical non-GAAP measures.

We have not fully reconciled non-GAAP forward-looking Same store revenues, Adjusted EBITDA and Free cash flow to its most directly comparable GAAP measure because the Company is unable to predict with reasonable certainty those items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, our comparable GAAP measures. For forward-looking Adjusted EBITDA and Same store revenues, the reconciliation is unavailable because it would include forward-looking financial statements in accordance with GAAP that are unavailable without unreasonable effort. For these reasons, we use a projected range of the aggregate amount of certain items in order to calculate our projected non-GAAP Adjusted EBITDA outlook and our Same store revenues outlook (see Table 11 below) and our projected non-GAAP Same Store revenues outlook (see Table 12 below). Accordingly, we are unable to provide a full reconciliation of these non-GAAP measures used in our outlook without unreasonable effort as certain information necessary to calculate such measures on a GAAP basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company.

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

ADJUSTED EBITDA

(Unaudited)

 

Table No. 5

Three months ended December 31, 2021

In thousands

Publishing

 

Digital

Marketing

Solutions

 

Corporate and

Other

 

Consolidated

Total

Net income (loss) attributable to Gannett

$

89,307

 

 

$

7,452

 

 

$

(119,207

)

 

$

(22,448

)

Provision for income taxes

 

 

 

 

 

 

 

36,683

 

 

 

36,683

 

Interest expense

 

 

 

 

 

 

 

26,378

 

 

 

26,378

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

22,712

 

 

 

22,712

 

Non-operating pension income

 

(23,713

)

 

 

 

 

 

 

 

 

(23,713

)

Depreciation and amortization

 

38,548

 

 

 

6,396

 

 

 

4,562

 

 

 

49,506

 

Integration and reorganization costs

 

5,319

 

 

 

409

 

 

 

8,089

 

 

 

13,817

 

Other operating expenses

 

 

 

 

 

 

 

9,598

 

 

 

9,598

 

Asset impairments

 

842

 

 

 

 

 

 

 

 

 

842

 

Loss on sale or disposal of assets, net

 

7,930

 

 

 

14

 

 

 

58

 

 

 

8,002

 

Share-based compensation expense

 

 

 

 

 

 

 

4,635

 

 

 

4,635

 

Other items

 

(1,658

)

 

 

(36

)

 

 

(8,907

)

 

 

(10,601

)

Adjusted EBITDA (non-GAAP basis)

$

116,575

 

 

$

14,235

 

 

$

(15,399

)

 

$

115,411

 

Net income (loss) attributable to Gannett margin

 

12.0

%

 

 

6.6

%

 

 

NM

 

 

 

(2.7

) %

Adjusted EBITDA margin (non-GAAP basis)

 

15.6

%

 

 

12.6

%

 

 

NM

 

 

 

14.0

%

NM indicates not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2020

In thousands

Publishing

 

Digital

Marketing

Solutions

 

Corporate and

Other

 

Consolidated

Total

Net income (loss) attributable to Gannett

$

104,884

 

 

$

582

 

 

$

(227,640

)

 

$

(122,174

)

Benefit for income taxes

 

 

 

 

 

 

 

(11,250

)

 

 

(11,250

)

Interest expense

 

15

 

 

 

 

 

 

54,608

 

 

 

54,623

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

42,110

 

 

 

42,110

 

Non-operating pension income

 

(17,643

)

 

 

 

 

 

(73

)

 

 

(17,716

)

Loss on convertible notes derivative

 

 

 

 

 

 

 

74,329

 

 

 

74,329

 

Depreciation and amortization

 

45,756

 

 

 

7,775

 

 

 

4,582

 

 

 

58,113

 

Integration and reorganization costs

 

21,803

 

 

 

1,076

 

 

 

48,874

 

 

 

71,753

 

Other operating expenses

 

 

 

 

 

 

 

891

 

 

 

891

 

Asset impairments

 

2,585

 

 

 

 

 

 

 

 

 

2,585

 

(Gain) loss on sale or disposal of assets, net

 

(9,417

)

 

 

2,153

 

 

 

44

 

 

 

(7,220

)

Share-based compensation expense

 

 

 

 

 

 

 

3,538

 

 

 

3,538

 

Other items

 

(555

)

 

 

(2,072

)

 

 

1,874

 

 

 

(753

)

Adjusted EBITDA (non-GAAP basis)

$

147,428

 

 

$

9,514

 

 

$

(8,113

)

 

$

148,829

 

Net income (loss) attributable to Gannett margin

 

13.2

%

 

 

0.5

%

 

 

NM

 

 

 

(14.0

) %

Adjusted EBITDA margin (non-GAAP basis)

 

18.6

%

 

 

8.9

%

 

 

NM

 

 

 

17.0

%

NM indicates not meaningful.

 

 

 

 

 

 

 

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

ADJUSTED EBITDA

(Unaudited)

 

Table No. 5 (continued)

Year ended December 31, 2021

In thousands

Publishing

 

Digital

Marketing

Solutions

 

Corporate and

Other

 

Consolidated

Total

Net income (loss) attributable to Gannett

$

336,099

 

 

$

18,442

 

 

$

(489,503

)

 

$

(134,962

)

Provision for income taxes

 

 

 

 

 

 

 

48,250

 

 

 

48,250

 

Interest expense

 

 

 

 

 

 

 

135,748

 

 

 

135,748

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

48,708

 

 

 

48,708

 

Non-operating pension income

 

(95,357

)

 

 

 

 

 

 

 

 

(95,357

)

Loss on convertible notes derivative

 

 

 

 

 

 

 

126,600

 

 

 

126,600

 

Depreciation and amortization

 

157,212

 

 

 

30,061

 

 

 

16,685

 

 

 

203,958

 

Integration and reorganization costs

 

15,960

 

 

 

1,710

 

 

 

31,614

 

 

 

49,284

 

Other operating expenses

 

 

 

 

 

 

 

20,952

 

 

 

20,952

 

Asset impairments

 

3,976

 

 

 

 

 

 

 

 

 

3,976

 

Loss (gain) on sale or disposal of assets, net

 

17,468

 

 

 

(604

)

 

 

344

 

 

 

17,208

 

Share-based compensation expense

 

 

 

 

 

 

 

18,439

 

 

 

18,439

 

Other items

 

(1,385

)

 

 

1,351

 

 

 

(9,058

)

 

 

(9,092

)

Adjusted EBITDA (non-GAAP basis)

$

433,973

 

 

$

50,960

 

 

$

(51,221

)

 

$

433,712

 

Net income (loss) attributable to Gannett margin

 

11.6

%

 

 

4.2

%

 

 

NM

 

 

 

(4.2

) %

Adjusted EBITDA margin (non-GAAP basis)

 

15.0

%

 

 

11.5

%

 

 

NM

 

 

 

13.5

%

NM indicates not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

In thousands

Publishing

 

Digital

Marketing

Solutions

 

Corporate and

Other

 

Consolidated

Total

Net loss attributable to Gannett

$

(108,606

)

 

$

(42,494

)

 

$

(519,379

)

 

$

(670,479

)

Benefit for income taxes

 

 

 

 

 

 

 

(33,450

)

 

 

(33,450

)

Interest expense

 

142

 

 

 

 

 

 

228,371

 

 

 

228,513

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

43,760

 

 

 

43,760

 

Non-operating pension income

 

(71,858

)

 

 

 

 

 

(291

)

 

 

(72,149

)

Loss on convertible notes derivative

 

 

 

 

 

 

 

74,329

 

 

 

74,329

 

Depreciation and amortization

 

221,746

 

 

 

25,878

 

 

 

16,195

 

 

 

263,819

 

Integration and reorganization costs

 

60,852

 

 

 

6,663

 

 

 

78,216

 

 

 

145,731

 

Other operating expenses

 

 

 

 

 

 

 

11,152

 

 

 

11,152

 

Asset impairments

 

10,312

 

 

 

717

 

 

 

 

 

 

11,029

 

Goodwill and intangible impairments

 

352,947

 

 

 

40,499

 

 

 

 

 

 

393,446

 

(Gain) loss on sale or disposal of assets, net

 

(7,541

)

 

 

1,727

 

 

 

134

 

 

 

(5,680

)

Share-based compensation expense

 

 

 

 

 

 

 

26,350

 

 

 

26,350

 

Other items

 

1,201

 

 

 

(8,629

)

 

 

4,952

 

 

 

(2,476

)

Adjusted EBITDA (non-GAAP basis)

$

459,195

 

 

$

24,361

 

 

$

(69,661

)

 

$

413,895

 

Net loss attributable to Gannett margin

 

(3.5

) %

 

 

(9.9

) %

 

 

NM

 

 

 

(19.7

) %

Adjusted EBITDA margin (non-GAAP basis)

 

14.9

%

 

 

5.7

%

 

 

NM

 

 

 

12.2

%

NM indicates not meaningful.

 

 

 

 

 

 

 

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO GANNETT

(Unaudited)

 

Table No. 6

Three months ended December 31,

 

Year ended December 31,

In thousands

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net loss attributable to Gannett

$

(22,448

)

 

$

(122,174

)

 

$

(134,962

)

 

$

(670,479

)

Loss on early extinguishment of debt

 

22,712

 

 

 

42,110

 

 

 

48,708

 

 

 

43,760

 

Loss on convertible notes derivative

 

 

 

 

74,329

 

 

 

126,600

 

 

 

74,329

 

Integration and reorganization costs

 

13,817

 

 

 

71,753

 

 

 

49,284

 

 

 

145,731

 

Other operating expenses

 

9,598

 

 

 

891

 

 

 

20,952

 

 

 

11,152

 

Asset impairments

 

842

 

 

 

2,585

 

 

 

3,976

 

 

 

11,029

 

Goodwill and intangible impairments

 

 

 

 

 

 

 

 

 

 

393,446

 

Loss (gain) on sale or disposal of assets, net

 

8,002

 

 

 

(7,220

)

 

 

17,208

 

 

 

(5,680

)

Other items

 

(11,783

)

 

 

 

 

 

(11,783

)

 

 

(7,995

)

Subtotal

 

20,740

 

 

 

62,274

 

 

 

119,983

 

 

 

(4,707

)

Tax impact of above items

 

22,045

 

 

 

4,301

 

 

 

(5,997

)

 

 

(57,063

)

Adjusted Net income (loss) attributable to Gannett (non-GAAP basis)

$

42,785

 

 

$

66,575

 

 

$

113,986

 

 

$

(61,770

)

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

FREE CASH FLOW

(Unaudited)

 

Table No. 7

 

 

 

In thousands

Three months ended

December 31, 2021

 

Year ended

December 31, 2021

Cash provided by (used for) operating activities (GAAP basis)

$

(5,894

)

 

$

127,453

 

Capital expenditures

 

(12,295

)

 

 

(39,560

)

Free cash flow (non-GAAP basis)(1)

$

(18,189

)

 

$

87,893

 

(1)

Free cash flow for the three months ended December 31, 2021 was negatively impacted by $11.7 million of integration and reorganization costs and $8.8 million of other costs, primarily due to third party fees related to the 2026 Senior Notes and the New Senior Secured Term Loan. Free cash flow for the year ended December 31, 2021 was negatively impacted by $69.0 million of integration and reorganization costs and $19.6 million of other costs, primarily due to third party fees related to the 5-Year Term Loan, the 2026 Senior Notes, and the New Senior Secured Term Loan.

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

SAME STORE REVENUES - CONSOLIDATED

(Unaudited)

 

Table No. 8

Three months ended December 31,

 

Year ended December 31,

In thousands

 

2021

 

 

 

2020

 

 

% Change

 

 

2021

 

 

 

2020

 

 

% Change

Total revenues

$

826,539

 

 

$

875,447

 

 

(5.6

) %

 

$

3,208,083

 

 

$

3,405,670

 

 

(5.8

) %

Currency impact

 

(1,204

)

 

 

 

 

***

 

 

(16,844

)

 

 

 

 

***

Exited operations

 

 

 

 

(13,699

)

 

***

 

 

(18

)

 

 

(86,896

)

 

(100.0

) %

Deferred revenue adjustment

 

 

 

 

221

 

 

(100.0

) %

 

 

 

 

 

3,598

 

 

(100.0

)

Same store total revenues

$

825,335

 

 

$

861,969

 

 

(4.3

) %

 

$

3,191,221

 

 

$

3,322,372

 

 

(3.9

) %

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing services revenues

$

430,674

 

 

$

461,088

 

 

(6.6

) %

 

$

1,651,161

 

 

$

1,710,244

 

 

(3.5

) %

Currency impact

 

(746

)

 

 

 

 

***

 

 

(10,764

)

 

 

 

 

***

Exited operations

 

 

 

 

(8,686

)

 

***

 

 

(18

)

 

 

(51,211

)

 

(100.0

) %

Deferred revenue adjustment

 

 

 

 

28

 

 

(100.0

) %

 

 

 

 

 

1,203

 

 

(100.0

)

Same store advertising and marketing services revenues

$

429,928

 

 

$

452,430

 

 

(5.0

) %

 

$

1,640,379

 

 

$

1,660,236

 

 

(1.2

) %

 

 

 

 

 

 

 

 

 

 

 

 

Circulation revenues

$

307,276

 

 

$

338,468

 

 

(9.2

) %

 

$

1,249,674

 

 

$

1,391,996

 

 

(10.2

) %

Currency impact

 

(347

)

 

 

 

 

***

 

 

(4,774

)

 

 

 

 

***

Exited operations

 

 

 

 

(2,261

)

 

(100.0

) %

 

 

 

 

 

(13,414

)

 

(100.0

)

Deferred revenue adjustment

 

 

 

 

193

 

 

(100.0

) %

 

 

 

 

 

2,395

 

 

(100.0

)

Same store circulation revenues

$

306,929

 

 

$

336,400

 

 

(8.8

) %

 

$

1,244,900

 

 

$

1,380,977

 

 

(9.9

) %

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

$

88,589

 

 

$

75,891

 

 

16.7

%

 

$

307,248

 

 

$

303,430

 

 

1.3

%

Currency impact

 

(111

)

 

 

 

 

***

 

 

(1,306

)

 

 

 

 

***

Exited operations

 

 

 

 

(2,752

)

 

(100.0

) %

 

 

 

 

 

(22,271

)

 

(100.0

) %

Same store other revenues

$

88,478

 

 

$

73,139

 

 

21.0

%

 

$

305,942

 

 

$

281,159

 

 

8.8

%

*** Indicates a percentage change greater than 100.

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

SAME STORE REVENUES - DIGITAL REVENUES

(Unaudited)

 

Table No. 9

Three months ended December 31,

 

Year ended December 31,

In thousands

 

2021

 

 

 

2020

 

 

% Change

 

 

2021

 

 

 

2020

 

 

% Change

Total Digital revenues

$

272,643

 

 

$

262,679

 

 

3.8

%

 

$

1,027,946

 

 

$

942,190

 

 

9.1

%

Currency impact

 

(460

)

 

 

 

 

***

 

 

(7,328

)

 

 

 

 

***

Exited operations

 

 

 

 

(3,541

)

 

***

 

 

(18

)

 

 

(26,201

)

 

(99.9

) %

Deferred revenue adjustment

 

 

 

 

28

 

 

(100.0

) %

 

 

 

 

 

1,202

 

 

(100.0

) %

Same store total digital revenues

$

272,183

 

 

$

259,166

 

 

5.0

%

 

$

1,020,600

 

 

$

917,191

 

 

11.3

%

*** Indicates a percentage change greater than 100.

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

SAME STORE REVENUES - DIGITAL MARKETING SERVICES SEGMENT

(Unaudited)

 

Table No. 10

Three months ended December 31,

In thousands

 

2021

 

 

 

2020

 

 

% Change

Total revenues - Digital Marketing Services

$

113,210

 

 

$

107,318

 

 

5.5

%

Currency impact

 

(93

)

 

 

 

 

***

Exited operations

 

 

 

 

(1,800

)

 

***

Deferred revenue adjustment

 

 

 

 

28

 

 

(100.0

) %

Same store total revenues - Digital Marketing Services

$

113,117

 

 

$

105,546

 

 

7.2

%

*** Indicates a percentage change greater than 100.

 

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

BUSINESS OUTLOOK - 2022 GUIDANCE(1)(2)

ADJUSTED EBITDA

(Unaudited)

 

Table No. 11

Full Year 2022

First Quarter

2022

In millions

Net income attributable to Gannett

$ 50

to

$ 70

~$(5)

Provision for income taxes

40

to

60

(5)

to

5

Interest expense

95

to

105

~26

Non-operating pension income

(70)

to

(75)

~(18)

Depreciation and amortization

175

to

195

~(45)

Integration and reorganization costs

20

to

30

5

to

10

Share-based compensation expense

20

to

25

~5

Other items

to

5

to

5

Adjusted EBITDA (non-GAAP basis)

$ 380

to

$ 400

$ 55

to

$ 60

(1)

Projections are based on Company estimates as of February 24, 2022 and are provided solely for illustrative purposes. Actual results may vary. The Company undertakes no obligation to update this information. Additionally, the Company's estimates assume no substantial negative pandemic-related business impact and do not factor in the impact of any acquisitions or dispositions. The Company’s future financial results could differ materially from the Company’s current estimates.

(2)

For forward-looking Adjusted EBITDA, the reconciliation is unavailable without unreasonable effort. For this reason, we use a projected range of the aggregate amount of certain items in order to calculate our projected non-GAAP Adjusted EBITDA outlook.

GANNETT CO., INC.

NON-GAAP FINANCIAL INFORMATION

BUSINESS OUTLOOK - 2022 GUIDANCE(1)(2)

SAME STORE REVENUES

(Unaudited)

 

Table No. 12

Three months ended

March 31, 2021

(Est.)

 

Twelve months

ended December 31,

2021 (Est.)

 

Three months ended

March 31, 2022

(Est.)(3)

 

Twelve months

ended December 31,

2022 (Est.)(3)

In thousands

 

 

 

Total revenues

$777,084

 

$3,208,083

 

$745,000 to

$750,000

 

$3,070,000 to $3,160,000

Currency impact

 

 

(1,500)

 

(5,000)

Exited operations

(9,000)

 

(75,000)

 

 

Same store total revenues

$768,084

 

$3,133,083

 

$743,500 to

$748,500

 

$3,065,000 to $3,155,000

(1)

Projections are based on Company estimates as of February 24, 2022 and are provided solely for illustrative purposes. Actual results may vary. The Company undertakes no obligation to update this information. Additionally, the Company's estimates assume no substantial negative pandemic-related business impact and do not factor in the impact of any acquisitions or dispositions. The Company’s future financial results could differ materially from the Company’s current estimates.

(2)

For forward-looking Same store revenues, the reconciliation is unavailable without unreasonable effort. For this reason, we use a projected range of the aggregate amount of certain items in order to calculate our projected non-GAAP Same store revenues outlook.

(3)

In 2022, exited operations will include the elimination of stand-alone print products shuttered within the publishing markets.

 

Contacts

For investor inquiries, contact:

Trisha Gosser

Investor Relations

703-854-3000

investors@gannett.com

For media inquiries, contact:

Lark-Marie Anton

SVP, Communications

646-906-4087

lark@gannett.com

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