Gannett Co., Inc. ("Gannett", "we", "us", "our", or the
"Company") (NYSE: GCI) today reported its financial results for the
fourth quarter ended December 31, 2024.
"In 2024, we made continued strong progress executing on our
strategy to advance our digital transformation, resulting in total
digital revenues exceeding 45% of total revenues in the fourth
quarter, and amounting to over $1.1 billion for the year. Equally
important, we expanded our audience, improved engagement, and grew
digital revenues through diversified channels. Total 2024 digital
revenues increased by over 5% compared to 2023," said Michael Reed,
Gannett Chairman and Chief Executive Officer.
"The successful execution of our strategy has driven continued
improvement across our key financial metrics. In 2024, we delivered
full-year growth in both Adjusted EBITDA and free cash flow, while
driving improvement to our bottom line. We also remained focused on
enhancing our capital structure in 2024, which was evidenced by
repaying $73.5 million of debt in addition to repayments made in
connection with the completion of our comprehensive refinancing
that extended our debt maturities and significantly reduced
potential future dilution from our convertible notes."
"With our continued strong performance, we are pleased to have
delivered on the expectations we set for 2024 at the beginning of
the year for total revenue, Adjusted EBITDA, free cash flow, and
net income. This success reinforces our confidence in achieving our
2025 expectations that we shared this morning. Further, when
considering the impact of the refinancing we completed in Q4, our
expectations for 2025 and 2026 remain in line with the guidance
provided at the start of 2024. While transformations are never a
straight line, the reaffirmation of our key financial goals
demonstrates the continued progress we are making on our
transformation."
"As we look ahead to 2025, we expect to build on that progress
and drive improvement across our key financial metrics. We believe
we are well-positioned to realize total revenue growth during 2025,
growth in both total digital revenues and Adjusted EBITDA,
significant free cash flow generation, and meaningful debt
reduction. We are excited about our operational and financial plans
for 2025, as well as the opportunity to create meaningful value for
both our shareholders as well as the communities that we
serve."
Fourth Quarter 2024 Digital Highlights
(Year-Over-Year):
- Total digital revenues of $280.4 million increased 1.2%, or
3.4% on a same store basis(1)
- Digital-only subscription revenues of $49.0 million grew
17.0%
- 200 million(2) average monthly unique visitors, an increase of
7.0%
- Digital advertising revenues of $92.7 million grew 1.7%
Additional Fourth Quarter 2024
Highlights (Year-Over-Year):
- Total revenues of $621.3 million decreased 7.2%
- Total revenues were impacted by the decision to sell or shut
down certain non-strategic assets
- Same store revenues(1) decreased 5.5%, reflecting an
improvement of 250 basis points
- Net income attributable to Gannett of $64.3 million, a margin
of 10.4%
- Adjusted Net income attributable to Gannett(1) of $38.3 million
improved by $56.5 million
- Adjusted EBITDA(1) totaled $78.2 million, an increase of
5.5%
- Adjusted EBITDA(1) margin of 12.6% improved by 150 basis
points
- Cash provided by operating activities of $9.0 million
- Free cash flow(1) of $3.8 million
________________________
(1)
Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted net income (loss) attributable to Gannett, Free cash flow,
and Same store revenues are non-GAAP measures. See "Use of Non-GAAP
Information" below for information about these non-GAAP
measures.
(2)
200 million average monthly unique
visitors in the fourth quarter of 2024 with approximately 149
million average monthly unique visitors coming from our U.S. media
network, which includes USA TODAY (based on December 2024 Comscore
Media Metrix®) and approximately 51 million average monthly unique
visitors resulting from our U.K. digital properties (based on Adobe
Analytics).
Capital Structure
Highlights:
- As of December 31, 2024, the Company had cash and cash
equivalents of $106.3 million
- Total principal debt outstanding at December 31, 2024 was
$1,111.8 million, including $850.0 million in first lien debt
- First lien net leverage(3) was 2.7x
- In February 2025, the Company entered into an asset purchase
agreement with Hearst Corporation to divest the Austin
American-Statesman, which is expected to close in the first quarter
of 2025
Business Outlook(4)
The Company presents its full year outlook for 2025. The
Company's estimates factor in the pending sale of the Austin
American-Statesman but do not factor in the impact of any future
acquisitions or dispositions.
- Full Year 2025 Business Outlook(4)
- Total digital revenues are expected to grow approximately
7%-10% on a same store basis(1)
- Total digital revenues are expected to make up 50% of total
revenues during 2025
- Total revenues are expected to be down in the low single digits
on a same store basis(1)
- Same store(1) revenue trends are expected to grow on an overall
basis during 2025
- Net income attributable to Gannett is expected to improve
compared to the prior year
- Adjusted EBITDA(1) is expected to grow versus the prior
year
- Cash provided by operating activities is expected to grow in
excess of 30% versus the prior year
- Free cash flow(1) is expected to grow in excess(5) of 40%
versus the prior year
Financial Highlights
In thousands
Fourth Quarter 2024
Full Year 2024
Revenues
$
621,275
$
2,509,315
Net income (loss) attributable to
Gannett
64,319
(26,354
)
Adjusted EBITDA(6) (non-GAAP basis)
78,158
273,189
Adjusted net income attributable to
Gannett(6) (non-GAAP basis)
38,320
24,970
Cash provided by operating activities
8,989
100,310
Free cash flow(6) (non-GAAP basis)
3,832
58,445
________________________
(3)
As of December 31, 2024, the First Lien
Net Leverage ratio was calculated by subtracting cash on the
balance sheet from the sum of our five-year first lien term loan
facility (the "2029 Term Loan Facility") and dividing that by Q4
2024 LTM Adjusted EBITDA. The 6% Senior Secured Convertible Notes
due 2027 and 6% Senior Secured Convertible Notes due 2031 are
secured by liens junior to those securing our 2029 Term Loan
Facility.
(4)
Projections are based on Company estimates
as of February 20, 2025 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 do not factor in the impact of any future acquisitions or
dispositions. The Company's future financial results could differ
materially from the Company’s current estimates.
(5)
Capital expenditures are expected to
increase as a result of investments in technology and products.
(6)
Refer to "Use of Non-GAAP Information"
below for the Company's definition of Adjusted EBITDA, Adjusted net
income (loss) attributable to Gannett, and Free cash flow, as well
as the reconciliation of such measures to the most comparable GAAP
measure.
Earnings Conference Call
Management will host a conference call on Thursday, February 20,
2025 at 8:30 A.M. Eastern Time to review the financial and
operating results for the period. 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 1-888-506-0062 (from within the U.S.) or 1-973-528-0011
(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 "669986". We use our website as a channel of
distribution for important Company information and we use the
investors.gannett.com website as a means of disclosing material
non-public information and for complying with our disclosure
obligations under Regulation FD. 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 6, 2025 by dialing 1-877-481-4010 (from
within the U.S.) or 1-919-882-2331 (from outside of the U.S.);
please reference access code "50823". A transcript of our earnings
call held today also will be posted to the investors.gannett.com
website.
About Gannett
Gannett Co., Inc. (NYSE: GCI) is a diversified media company
with expansive reach at the national and local level dedicated to
empowering and enriching communities. We seek to inspire, inform,
and connect audiences as a sustainable, growth focused media and
digital marketing solutions company. Through our trusted brands,
including the USA TODAY NETWORK, comprised of the national
publication, USA TODAY, and local media organizations, including
our network of local properties, in the United States, and
Newsquest, a wholly-owned subsidiary operating in the United
Kingdom, we provide essential journalism, local content, and
digital experiences to audiences and businesses. We deliver
high-quality, trusted content with a commitment to balanced,
unbiased journalism, where and when consumers want to engage. Our
digital marketing solutions brand, LocaliQ, supports small and
medium-sized businesses with innovative digital marketing products
and solutions.
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, our full year 2025 business outlook, 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 audience,
digital marketing and advertising services, digital revenues,
monetization of our audience, print advertising trends and
revenues, expected results of our targeting and pricing models,
expectations regarding our cash from operating activities, free
cash flows, revenues, net income (loss) attributable to Gannett,
Adjusted EBITDA, same store revenues and cash flows, expectations
regarding our long-term growth, sustainable growth, and inflection
in our revenue, our ability to create long-term stockholder value,
our expectations, in terms of both amount and timing, with respect
to debt repayment, our expectations with respect to the effects of
our refinancing transaction, expectations regarding our divestiture
of the Austin American-Statesman and the closing of such
transaction, our expected capital expenditures, expectations
regarding real estate and non-strategic asset sales, our strategy,
our partnerships, our ability to achieve our operating priorities,
our long-term opportunities, economic impacts, our ability to
navigate volatility, achieve our financial goals, optimize our
capital structure and achieve optimal financial performance, our
cost structure, future revenue and expense trends, and our ability
to influence trends. Words such as "expect(s)", "believe(s)",
"aim(s)", "will", "can", "outlook", "guidance", "estimate(s)",
"project(s)", "suggest", "trend", "focus", 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, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
106,299
$
100,180
Accounts receivable, net of allowance for
credit losses of $13,596 and $16,338, respectively
239,636
266,096
Inventories
20,910
26,794
Prepaid expenses
40,268
36,210
Other current assets
18,782
14,957
Total current assets
425,895
444,237
Property, plant, and equipment, net of
accumulated depreciation of $337,013 and $336,408, respectively
240,980
239,087
Operating lease assets
143,955
221,733
Goodwill
530,028
533,876
Intangible assets, net
430,374
524,350
Deferred tax assets
60,983
37,125
Pension and other assets
207,932
180,839
Total assets
$
2,040,147
$
2,181,247
Liabilities and equity
Current liabilities:
Accounts payable and accrued
liabilities
$
318,384
$
293,444
Deferred revenue
108,000
120,502
Current portion of long-term debt
74,300
63,752
Operating lease liabilities
39,761
45,763
Other current liabilities
5,157
10,052
Total current liabilities
545,602
533,513
Long-term debt
755,754
564,836
Convertible debt
249,757
416,036
Deferred tax liabilities
4,928
2,028
Pension and other postretirement benefit
obligations
37,820
42,661
Long-term operating lease liabilities
167,731
203,871
Other long-term liabilities
125,921
100,989
Total noncurrent liabilities
1,341,911
1,330,421
Total liabilities
1,887,513
1,863,934
Commitments and contingent
liabilities
Equity
Preferred stock, $0.01 par value per
share, 300,000 shares authorized, none of which were issued and
outstanding at December 31, 2024 and December 31, 2023
—
—
Common stock, $0.01 par value per share,
2,000,000,000 shares authorized; 158,835,742 shares issued and
147,388,555 shares outstanding at December 31, 2024; 158,554,705
shares issued and 148,939,463 shares outstanding at December 31,
2023
1,588
1,586
Treasury stock, at cost, 11,447,187 shares
and 9,615,242 shares at December 31, 2024 and December 31, 2023,
respectively
(20,540
)
(17,393
)
Additional paid-in capital
1,281,801
1,426,325
Accumulated deficit
(1,053,546
)
(1,027,192
)
Accumulated other comprehensive loss
(56,164
)
(65,541
)
Total Gannett stockholders'
equity
153,139
317,785
Noncontrolling interests
(505
)
(472
)
Total equity
152,634
317,313
Total liabilities and equity
$
2,040,147
$
2,181,247
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
2024
2023
2024
2023
(Unaudited)
Digital
$
280,388
$
277,145
$
1,103,651
$
1,050,370
Print and commercial
340,887
392,260
1,405,664
1,613,180
Total revenues
621,275
669,405
2,509,315
2,663,550
Operating costs
375,799
419,644
1,545,584
1,692,031
Selling, general and administrative
expenses
178,663
185,908
726,028
735,339
Depreciation and amortization
39,333
38,496
156,287
162,622
Integration and reorganization costs
11,192
6,009
66,155
24,468
Asset impairments
513
—
46,589
1,370
(Gain) loss on sale or disposal of assets,
net
(466
)
768
1,106
(40,101
)
Other operating expenses
10,136
722
10,404
1,550
Total operating expenses
615,170
651,547
2,552,153
2,577,279
Operating income (loss)
6,105
17,858
(42,838
)
86,271
Interest expense
25,903
26,969
104,697
111,776
Gain on early extinguishment of debt
(55,205
)
(1,316
)
(55,559
)
(4,529
)
Non-operating pension income
(2,962
)
(2,375
)
(12,438
)
(9,382
)
Equity income in unconsolidated investees,
net
(271
)
(1,038
)
(548
)
(2,379
)
Other non-operating expense (income),
net
2,454
(3,067
)
(1,317
)
(3,050
)
Non-operating expenses
(30,081
)
19,173
34,835
92,436
Income (loss) before income
taxes
36,186
(1,315
)
(77,673
)
(6,165
)
(Benefit) provision for income taxes
(28,132
)
21,581
(51,286
)
21,729
Net income (loss)
64,318
(22,896
)
(26,387
)
(27,894
)
Net loss attributable to noncontrolling
interests
(1
)
(4
)
(33
)
(103
)
Net income (loss) attributable to
Gannett
$
64,319
$
(22,892
)
$
(26,354
)
$
(27,791
)
Income (loss) per share attributable to
Gannett - basic
$
0.45
$
(0.16
)
$
(0.18
)
$
(0.20
)
Income (loss) per share attributable to
Gannett - diluted
$
0.11
$
(0.16
)
$
(0.18
)
$
(0.20
)
GANNETT CO., INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Table No. 3
Year ended December
31,
In thousands
2024
2023
Operating activities
Net loss
$
(26,387
)
$
(27,894
)
Adjustments to reconcile net loss to
operating cash flows:
Depreciation and amortization
156,287
162,622
Share-based compensation expense
12,522
16,567
Non-cash interest expense
18,072
21,199
(Benefit) provision for deferred income
taxes
(44,758
)
11,514
Loss (gain) on sale or disposal of assets,
net
1,106
(40,101
)
Gain on early extinguishment of debt
(55,559
)
(4,529
)
Asset impairments
46,589
1,370
Pension and other postretirement benefit
obligations
(23,916
)
(13,917
)
Equity income in unconsolidated investees,
net
(548
)
(2,379
)
Change in other assets and liabilities,
net:
Accounts receivable, net
25,843
34,135
Inventory
4,617
18,510
Prepaid expenses
(1,820
)
16,680
Accounts payable and accrued
liabilities
(1,934
)
(65,094
)
Deferred revenue
(17,277
)
(29,971
)
Other assets and liabilities
7,473
(4,138
)
Cash provided by operating
activities
100,310
94,574
Investing activities
Purchase of property, plant and
equipment
(49,534
)
(38,116
)
Proceeds from sale of real estate and
other assets
20,976
85,298
Change in other investing activities
608
(203
)
Cash (used for) provided by investing
activities
(27,950
)
46,979
Financing activities
Payments of deferred financing costs
(8,933
)
—
Borrowings of long-term debt
837,671
—
Repayments of long-term debt
(644,732
)
(133,821
)
Repurchase of convertible debt
(248,211
)
—
Proceeds from convertible debt
110
—
Treasury stock
(3,141
)
(2,642
)
Changes in other financing activities
(1,617
)
952
Cash used for financing
activities
(68,853
)
(135,511
)
Effect of currency exchange rate change on
cash
2,062
(234
)
Increase in cash, cash equivalents and
restricted cash
5,569
5,808
Cash, cash equivalents and restricted cash
at beginning of period
110,612
104,804
Cash, cash equivalents and restricted
cash at end of period
$
116,181
$
110,612
GANNETT CO., INC.
SEGMENT INFORMATION
(Unaudited)
Table No. 4
Three months ended December
31,
Year ended December
31,
In thousands
2024
2023
2024
2023
Revenues:
Domestic Gannett Media
$
482,259
$
529,217
$
1,938,398
$
2,095,853
Newsquest
58,275
58,178
239,273
233,980
Digital Marketing Solutions
117,035
120,384
477,807
477,909
Corporate and other
1,363
1,665
5,656
6,268
Intersegment eliminations
(37,657
)
(40,039
)
(151,819
)
(150,460
)
Total
$
621,275
$
669,405
$
2,509,315
$
2,663,550
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. generally accepted accounting principles ("U.S. GAAP") basis.
These non-GAAP financial performance and liquidity measures, which
may not be comparable to, and may be defined differently than,
similarly titled measures used or 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.
We define our non-GAAP financial performance and liquidity
measures as follows:
- Adjusted EBITDA is a non-GAAP financial performance measure we
believe offers a useful view of the overall and segment operations
of our business. We define 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) 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, (13)
Other non-operating (income) expense, net, and (14) Non-recurring
items. The most directly comparable U.S. GAAP financial performance
measure is Net income (loss) attributable to Gannett.
- Adjusted EBITDA margin is a non-GAAP financial performance
measure we believe offers a useful view of the overall and segment
operations of our business. We define Adjusted EBITDA margin as
Adjusted EBITDA divided by total Revenues.
- Adjusted net income (loss) attributable to Gannett is a
non-GAAP financial performance measure we believe 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. We define Adjusted net income (loss)
attributable to Gannett as 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) 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) Other items, including (Gain) loss on sale of investments, 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. We define Free cash flow as Cash
provided by (used for) operating activities as reported on the
consolidated statements of cash flows including the impact of (i)
capital expenditures and excluding the impact of (ii) third-party
debt expenses associated with the refinancing of debt. The result
is a figure representing Free cash flow available for use in
operations, additional investments, ongoing debt obligations, and
returns to stockholders. The most directly comparable U.S. GAAP
financial liquidity measure is Cash provided by (used for)
operating activities.
- Same store revenues is a non-GAAP financial performance measure
based on our U.S. GAAP revenues for the current period, excluding
(1) acquired revenues, (2) currency impact, and (3) exited
operations.
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 or liquidity
under U.S. GAAP and should not be considered in isolation or as an
alternative to net income (loss), margin, income (loss) from
operations, cash flow provided by (used for) operating activities,
revenues, or any other measure of performance or liquidity derived
in accordance with U.S. GAAP. We believe these non-GAAP financial
performance and liquidity 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 core 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 Non-GAAP Measures
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 exclusion of the cash portion
of interest / financing expense, income tax (benefit) provision,
and charges related to asset impairments, which are items that 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 performance and liquidity 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 (loss), margin, income
(loss) from operations, cash flow provided by (used for) operating
activities, revenues, or any other measure of performance or
liquidity derived 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 measures. 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 performance or liquidity 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 release may differ
from and may not be comparable to similarly titled measures used by
other companies.
Non-GAAP Outlook
Our full year 2025 business outlook included in this release
include certain non-GAAP financial performance and liquidity
measures, including Same store revenues, Adjusted EBITDA, and Free
cash flow. The outlook for each of these non-GAAP items does not
factor in the impact of any future acquisitions or dispositions. 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 reconciled non-GAAP forward-looking Same
store revenues, Adjusted EBITDA, and Free cash flow to their most
directly comparable U.S. GAAP measure, as permitted by Item
10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would
require unreasonable efforts to estimate and quantify various
necessary U.S. GAAP components largely because forecasting or
predicting our future operating results is subject to many factors
or future events out of our control, is unavailable, or is not
readily predictable, and could significantly impact, either
individually or in the aggregate, our comparable U.S. GAAP
measures. Accordingly, we are unable to provide a full
reconciliation of the non-GAAP measures used in our outlook without
unreasonable efforts.
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA
(Unaudited)
Table No. 5
Three months ended December
31, 2024
In thousands
Domestic Gannett Media
Newsquest
Digital Marketing
Solutions
Corporate and other
Consolidated Total
Net income attributable to Gannett
$
30,188
$
12,315
$
1,574
$
20,242
$
64,319
Benefit for income taxes
—
—
—
(28,132
)
(28,132
)
Interest expense
—
—
—
25,903
25,903
Gain on early extinguishment of debt
—
—
—
(55,205
)
(55,205
)
Non-operating pension income
(1,102
)
(1,860
)
—
—
(2,962
)
Depreciation and amortization
23,420
2,293
5,687
7,933
39,333
Integration and reorganization costs
(reversal)
6,681
(1,009
)
119
5,401
11,192
Third-party debt expenses and acquisition
costs
—
—
—
10,259
10,259
Asset impairments
513
—
—
—
513
(Gain) loss on sale or disposal of assets,
net
(487
)
(7
)
—
28
(466
)
Share-based compensation expense
—
—
—
3,279
3,279
Other non-operating (income) expense,
net
(532
)
(541
)
4,003
(476
)
2,454
Non-recurring items
29
—
—
7,642
7,671
Adjusted EBITDA (non-GAAP basis)
$
58,710
$
11,191
$
11,383
$
(3,126
)
$
78,158
Net income attributable to Gannett
margin
6.3
%
21.1
%
1.3
%
NM
10.4
%
Adjusted EBITDA margin (non-GAAP
basis)
12.2
%
19.2
%
9.7
%
NM
12.6
%
NM indicates not meaningful.
Three months ended December
31, 2023
In thousands
Domestic Gannett Media
Newsquest
Digital Marketing
Solutions
Corporate and other
Consolidated Total
Net income (loss) attributable to
Gannett
$
26,915
$
11,107
$
8,043
$
(68,957
)
$
(22,892
)
Provision for income taxes
—
—
—
21,581
21,581
Interest expense
—
—
—
26,969
26,969
Gain on early extinguishment of debt
—
—
—
(1,316
)
(1,316
)
Non-operating pension income
(209
)
(2,166
)
—
—
(2,375
)
Depreciation and amortization
25,721
2,063
5,993
4,719
38,496
Integration and reorganization costs
3,248
677
182
1,902
6,009
Third-party debt expenses and acquisition
costs
—
215
—
507
722
Loss (gain) on sale or disposal of assets,
net
703
(29
)
92
2
768
Share-based compensation expense
—
—
—
3,840
3,840
Other non-operating income, net
(215
)
(634
)
(1,815
)
(403
)
(3,067
)
Non-recurring items
(65
)
96
—
5,340
5,371
Adjusted EBITDA (non-GAAP basis)
$
56,098
$
11,329
$
12,495
$
(5,816
)
$
74,106
Net income (loss) attributable to Gannett
margin
5.1
%
19.1
%
6.7
%
NM
(3.4
)%
Adjusted EBITDA margin (non-GAAP
basis)
10.6
%
19.5
%
10.4
%
NM
11.1
%
NM indicates not meaningful.
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA
(Unaudited)
Table No. 5 (continued)
Year ended December 31,
2024
In thousands
Domestic Gannett Media
Newsquest
Digital Marketing
Solutions
Corporate and other
Consolidated Total
Net income (loss) attributable to
Gannett
$
61,333
$
55,196
$
13,382
$
(156,265
)
$
(26,354
)
Benefit for income taxes
—
—
—
(51,286
)
(51,286
)
Interest expense
—
—
—
104,697
104,697
Gain on early extinguishment of debt
—
—
—
(55,559
)
(55,559
)
Non-operating pension income
(5,021
)
(7,417
)
—
—
(12,438
)
Depreciation and amortization
96,478
8,485
24,066
27,258
156,287
Integration and reorganization costs
(reversal)
49,625
(513
)
2,061
14,982
66,155
Third-party debt expenses and acquisition
costs
—
(22
)
—
10,954
10,932
Asset impairments
600
—
—
45,989
46,589
Loss (gain) on sale or disposal of assets,
net
1,682
(894
)
93
225
1,106
Share-based compensation expense
—
—
—
12,522
12,522
Other non-operating (loss) income, net
(2,263
)
(1,426
)
3,442
(1,070
)
(1,317
)
Non-recurring items
(13
)
—
634
21,234
21,855
Adjusted EBITDA (non-GAAP basis)
$
202,421
$
53,409
$
43,678
$
(26,319
)
$
273,189
Net income (loss) attributable to Gannett
margin
3.2
%
23.1
%
2.8
%
NM
(1.1
)%
Adjusted EBITDA margin (non-GAAP
basis)
10.4
%
22.3
%
9.1
%
NM
10.9
%
NM indicates not meaningful.
Year ended December 31,
2023
In thousands
Domestic Gannett Media
Newsquest
Digital Marketing
Solutions
Corporate and other
Consolidated Total
Net income (loss) attributable to
Gannett
$
114,254
$
49,257
$
28,841
$
(220,143
)
$
(27,791
)
Provision for income taxes
—
—
—
21,729
21,729
Interest expense
—
—
—
111,776
111,776
Gain on early extinguishment of debt
—
—
—
(4,529
)
(4,529
)
Non-operating pension income
(705
)
(8,677
)
—
—
(9,382
)
Depreciation and amortization
112,201
8,792
23,795
17,834
162,622
Integration and reorganization costs
5,582
1,763
784
16,339
24,468
Third-party debt expenses and acquisition
costs
139
215
—
1,196
1,550
Asset impairments
1,370
—
—
—
1,370
(Gain) loss on sale or disposal of assets,
net
(38,937
)
(42
)
324
(1,446
)
(40,101
)
Share-based compensation expense
—
—
—
16,567
16,567
Other non-operating income (loss), net
773
(1,539
)
(521
)
(1,763
)
(3,050
)
Non-recurring items
(36
)
359
—
12,131
12,454
Adjusted EBITDA (non-GAAP basis)
$
194,641
$
50,128
$
53,223
$
(30,309
)
$
267,683
Net income (loss) attributable to Gannett
margin
5.5
%
21.1
%
6.0
%
NM
(1.0
)%
Adjusted EBITDA margin (non-GAAP
basis)
9.3
%
21.4
%
11.1
%
NM
10.0
%
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
2024
2023
2024
2023
Net income (loss) attributable to
Gannett
$
64,319
$
(22,892
)
$
(26,354
)
$
(27,791
)
Gain on early extinguishment of debt
(55,205
)
(1,316
)
(55,559
)
(4,529
)
Integration and reorganization costs
11,192
6,009
66,155
24,468
Third-party debt expenses and acquisition
costs
10,259
722
10,932
1,550
Asset impairments
513
—
46,589
1,370
(Gain) loss on sale or disposal of assets,
net
(466
)
768
1,106
(40,101
)
Other items
20
(99
)
(597
)
(196
)
Subtotal
30,632
(16,808
)
42,272
(45,229
)
Tax impact of above items
7,688
(1,412
)
(17,302
)
4,247
Adjusted net income (loss) attributable to
Gannett (non-GAAP basis)
$
38,320
$
(18,220
)
$
24,970
$
(40,982
)
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
FREE CASH FLOW
(Unaudited)
Table No. 7
Three months ended December
31,
Year ended December
31,
In thousands
2024
2023
2024
2023
Cash provided by operating activities
(GAAP basis)
$
8,989
$
21,157
$
100,310
$
94,574
Capital expenditures
(12,826
)
(8,409
)
(49,534
)
(38,116
)
Third-party debt expenses
7,669
—
7,669
—
Free cash flow (non-GAAP basis)(1)
$
3,832
$
12,748
$
58,445
$
56,458
(1) For the three months ended December 31, 2024 and 2023, free
cash flow was negatively impacted by interest paid of $35.9 million
and $33.2 million, respectively, integration and reorganization
costs of $7.8 million and $6.7 million, respectively, and other
costs of $8.3 million and $5.6 million, respectively. For the year
ended December 31, 2024 and 2023, free cash flow was negatively
impacted by interest paid of $86.3 million and $89.3 million,
respectively, integration and reorganization costs of $31.2 million
and $53.7 million, respectively, and other costs of $30.5 million
and $13.2 million, respectively.
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
SAME STORE REVENUES - CONSOLIDATED
& DIGITAL
(Unaudited)
Table No. 8
Three months ended December
31,
Year ended December
31,
In thousands
2024
2023
% Change
2024
2023
% Change
Total revenues
$
621,275
$
669,405
(7.2
)%
$
2,509,315
$
2,663,550
(5.8
)%
Currency impact
(1,839
)
—
(6,111
)
—
Exited operations(1)
(942
)
(14,998
)
(3,094
)
(29,339
)
Same store total revenues
$
618,494
$
654,407
(5.5
)%
$
2,500,110
$
2,634,211
(5.1
)%
(1) Exited operations include (i)
businesses divested and (ii) the elimination of stand-alone print
products discontinued within the media markets.
Three months ended December
31,
Year ended December
31,
In thousands
2024
2023
% Change
2024
2023
% Change
Digital revenues
$
280,388
$
277,145
1.2
%
$
1,103,651
$
1,050,370
5.1
%
Currency impact
(556
)
—
(1,772
)
—
Exited operations(1)
(930
)
(7,480
)
(3,053
)
(11,644
)
Same store digital revenues
$
278,902
$
269,665
3.4
%
$
1,098,826
$
1,038,726
5.8
%
(1) Exited operations include (i)
businesses divested and (ii) the elimination of stand-alone print
products discontinued within the media markets.
KEY PERFORMANCE INDICATORS
A key performance indicator ("KPI") is generally defined as a
quantifiable measurement or metric used to gauge performance,
specifically to help determine strategic, financial, and
operational achievements, especially compared to those of similar
businesses.
We define Digital-only average revenue per user ("ARPU") as
digital-only subscription average monthly revenues divided by the
average digital-only paid subscriptions within the respective
period. We define Core platform ARPU as core platform average
monthly revenues divided by average monthly customer count within
the period. We define core platform revenues as revenue derived
from customers utilizing our proprietary digital marketing services
platform that are sold by either our direct or local market
teams.
Management believes Digital-only ARPU, Core platform ARPU,
digital-only paid subscriptions, core platform revenues and core
platform average customer count are KPIs that offer useful
information in understanding consumer behavior, trends in our
business, and our overall operating results. Management utilizes
these KPIs to track and analyze trends across our segments.
GANNETT CO., INC.
KEY PERFORMANCE INDICATORS
(Unaudited)
Table No. 9
Three months ended December
31,
Year ended December
31,
In thousands, except ARPU
2024
2023
Change
% Change
2024
2023
Change
% Change
Domestic Gannett Media:
Digital-only ARPU
$
8.03
$
7.09
$
0.94
13.3
%
$
7.83
$
6.46
$
1.37
21.2
%
Newsquest:
Digital-only ARPU
$
6.21
$
6.18
$
0.03
0.5
%
$
6.17
$
6.14
$
0.03
0.5
%
Total Gannett:
Digital-only ARPU
$
7.93
$
7.05
$
0.88
12.5
%
$
7.75
$
6.45
$
1.30
20.2
%
DMS:
Core platform revenues
$
116,248
$
119,355
$
(3,107
)
(2.6
)%
$
474,298
$
473,172
$
1,126
0.2
%
Core platform ARPU
$
2,788
$
2,663
$
125
4.7
%
$
2,760
$
2,620
$
140
5.3
%
Core platform average customer count
13.9
14.9
(1.0
)
(6.7
)%
14.3
15.1
(0.8
)
(5.3
)%
Table No. 10
As of December 31,
In thousands
2024
2023
% Change
Digital-only paid
subscriptions:
Domestic Gannett Media
1,953
1,912
2.1
%
Newsquest
110
83
32.5
%
Total Gannett
2,063
1,995
3.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220488444/en/
For investor inquiries, contact: Matt Esposito Investor
Relations 703-854-3000 investors@gannett.com
For media inquiries, contact: Lark-Marie Anton Corporate
Communications 646-906-4087 lark@gannett.com
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