UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
January 26, 2005
GANNETT CO., INC.
(Exact name of registrant as specified in charter)
| Delaware | 1-6961 | 16-0442930 |
| (State or Other
Jurisdiction of Incorporation or Organization of Registrant) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| 7950 Jones Branch Drive, McLean, Virginia | 22107-0910 | |
| (Address of principal executive offices) | (Zip Code) | |
| (703) 854-6000 | ||
| (Registrant's telephone number, including area code) | ||
| Not Applicable | ||
| (Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On January 26, 2005, Gannett Co., Inc. reported its consolidated financial results for the fourth quarter and year ended December 26, 2004. On January 26, 2005, the company also issued a press release announcing the company's statistical report for the period and quarter ended December 26, 2004. Copies of these press releases are furnished with this report as exhibits.
SIGNATURE
Pursuant to requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Gannett Co., Inc. | ||
|
Date: January 26, 2005 |
By: | /s/George R. Gavagan |
| George R. Gavagan | ||
| Vice President and Controller |
Exhibit Index
|
Exhibit |
Description | |
|
99.1 |
Gannett Co., Inc. Earnings Press Release dated January 26, 2005. | |
|
99.2 |
Gannett Co., Inc. Statistical Report Press Release dated January 26, 2005. |
News Release
Wednesday, January 26, 2005
Gannett Co., Inc. Reports Fourth Quarter and Full-Year Results
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that 2004 fourth quarter earnings per diluted share, on a GAAP (generally accepted accounting principles) basis, were $1.47 versus $1.31 per share for the fourth quarter of 2003. For the full year 2004, diluted earnings per share, on a GAAP basis, were $4.92, compared with $4.46 for 2003, a new record.
Total operating revenues for the company increased 7.7 percent to $1.96 billion in the quarter from $1.82 billion in the similar interval in 2003. Net income increased 5.6 percent to $378.1 million in the fourth quarter of 2004 versus $358.0 million in the same quarter of last year. Operating cash flow (defined as operating income plus depreciation and amortization) rose 5.7 percent to $673.2 million from $637.1 million in the year earlier quarter.
For the full year, operating revenues increased 10.0 percent to $7.4 billion. Net income rose 8.7 percent to a record $1.32 billion from $1.21 billion in 2003 for the year. Operating cash flow advanced 8.1 percent to $2.4 billion from $2.2 billion in 2003.
Average diluted shares outstanding in the fourth quarter totaled 257,673,000 compared with 274,257,000 in 2003's fourth quarter. Average diluted shares outstanding for all of 2004 were 267,590,000 versus 271,872,000 in 2003. Approximately 3.5 million shares were repurchased during the quarter and a total of approximately 20 million for the year.
Commenting on the company's performance, Douglas H. McCorkindale, Chairman, President and CEO said: "Gannett's industry leading revenue performance helped us achieve record operating results for all of 2004, despite an uneven advertising environment. Our results in the fourth quarter reflected strong revenue growth in our broadcasting segment driven by significant levels of politically-related advertising. We also reported solid revenue growth in the newspaper segment due, in part, to higher demand for local and classified advertising. In the UK, Newsquest again posted improved results which also benefited from a favorable exchange rate. However, higher newsprint expense and certain employee benefit costs tempered the company's results. "
NEWSPAPERS
Newspaper results in the quarter include Clipper Magazine, Inc. (acquired in October 2003), and NurseWeek (acquired in February 2004). Operating revenues were $1.7 billion for the quarter, a 6.4 percent increase from the fourth quarter of 2003. Assuming Gannett had owned the same group of newspapers in both the fourth quarter of 2004 and 2003, advertising revenues would have risen 5.5 percent. On a comparable basis, local advertising revenues were 5.2 percent higher, classified increased 8.7 percent and national ad revenues were unchanged. Newspaper ad volume declined 1.2 percent. Total newspaper segment operating cash flow increased 1.8 percent to $553.8 million in the fourth quarter, versus $544.2 million in the same quarter of 2003. Reported newsprint expense increased 7.5 percent in the quarter, reflecting higher prices but lower usage.
At USA TODAY, advertising revenues declined 5.3 percent in the fourth quarter. Paid advertising pages totaled 1,315 compared with 1,580 in the same quarter of 2003. For the full year, USA TODAY's advertising revenues increased 6.6 percent and paid pages totaled 4,763, a 3.2 percent decline.
BROADCASTING
Broadcasting segment results in the quarter include Captivate Network Inc., acquired in April 2004. Broadcasting revenues totaled $233.4 million for the quarter, an 18.7 percent increase from the fourth quarter in 2003. Broadcasting operating cash flow increased 27.0 percent to $132.6 million from $104.4 million in the year ago quarter.
Excluding Captivate, in the fourth quarter of 2004, television operating cash flow rose 27.3 percent and revenues increased 16.2 percent. The television group's performance reflected strong demand for politically-related advertising in the fall.
NON-OPERATING ITEMS
Interest expense for the fourth quarter was $41.0 million compared to $33.0 million in the same quarter of 2003, a 24.5 percent increase. The increase is attributable to both higher short-term interest rates, and debt outstanding related to share repurchase activity. Other non-operating expense primarily reflects non-operating charges for minority interest and Internet investments in part offset by currency gains and investment income.
At the end of the year, 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 December, Gannett's consolidated domestic Internet
audience share was 18.1 million unique visitors reaching about 12 percent of the
Internet audience according to Nielsen//NetRatings. Newsquest is also an
Internet leader in the UK where its network of Web sites attracts more than 29.7
million monthly page impressions from more than 3.1 million unique users.
All references in this release to "comparable" revenue results and "operating cash flow" are to non-GAAP financial measures. Management believes that this use allows management 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 1-888-283-6901 and international callers should dial 1-719-955-1564 at least 10 minutes prior to the scheduled start of the call. The confirmation code for the conference call is 338438. To access the replay, dial 1-888-203-1112 in the U.S. International callers should use the number 1-719-457-0820. The confirmation code for the replay is 338438. Materials related to the call will be available through the Investor Relations section of the company's Web site Wednesday morning.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns more than 600 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 21 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
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.
For investor inquiries, contact:
Jeffrey
Heinz
Director, Investor
Relations
703-854-6917
jheinz@gannett.com
For media inquiries, contact:
Tara Connell
Vice President of Corporate Communications
703-854-6049
tjconnel@gannett.com
# # #
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Thirteen weeks ended % Inc
Dec. 26, 2004 Dec. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 1,299,583 $ 1,208,777 7.5
Newspaper circulation 314,500 307,003 2.4
Broadcasting 233,395 196,679 18.7
Other 114,934 109,845 4.6
------------- ------------- ------
Total 1,962,412 1,822,304 7.7
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 983,086 911,087 7.9
Selling, general and
administrative expenses,
exclusive of depreciation 306,125 274,161 11.7
Depreciation 56,604 55,502 2.0
Amortization of intangible
assets 3,324 2,133 55.8
------------- ------------- ------
Total 1,349,139 1,242,883 8.5
------------- ------------- ------
Operating income 613,273 579,421 5.8
------------- ------------- ------
Non-operating income
(expense):
Interest expense (41,043) (32,971) 24.5
Other (993) (2,612) (62.0)
------------- ------------- ------
Total (42,036) (35,583) 18.1
------------- ------------- ------
Income before income taxes 571,237 543,838 5.0
Provision for income taxes 193,100 185,800 3.9
------------- ------------- ------
Net income $ 378,137 $ 358,038 5.6
============= ============= ======
Net income per share-basic $1.48 $1.32 12.1
===== ===== ======
Net income per share-diluted $1.47 $1.31 12.2
===== ===== ======
Dividends per share $0.27 $0.25 8.0
===== ===== ======
Broadcasting includes results from the company's 21 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Fifty-two weeks ended % Inc
Dec. 26, 2004 Dec. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 4,912,603 $ 4,397,244 11.7
Newspaper circulation 1,238,097 1,212,891 2.1
Broadcasting 821,543 719,884 14.1
Other 409,040 381,096 7.3
------------- ------------- ------
Total 7,381,283 6,711,115 10.0
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 3,821,435 3,453,769 10.6
Selling, general and
administrative expenses,
exclusive of depreciation 1,168,148 1,044,796 11.8
Depreciation 232,387 223,261 4.1
Amortization of intangible
assets 11,634 8,271 40.7
------------- ------------- ------
Total 5,233,604 4,730,097 10.6
------------- ------------- ------
Operating income 2,147,679 1,981,018 8.4
------------- ------------- ------
Non-operating income
(expense):
Interest expense (140,647) (139,271) 1.0
Other (11,646) (1,434) ***
------------- ------------- ------
Total (152,293) (140,705) 8.2
------------- ------------- ------
Income before income taxes 1,995,386 1,840,313 8.4
Provision for income taxes 678,200 629,100 7.8
------------- ------------- ------
Net income $ 1,317,186 $ 1,211,213 8.7
============= ============= ======
Net income per share-basic $4.98 $4.49 10.9
===== ===== ======
Net income per share-diluted $4.92 $4.46 10.3
===== ===== ======
Dividends per share $1.04 $0.98 6.1
===== ===== ======
Broadcasting includes results from the company's 21 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Thirteen weeks ended % Inc
Dec. 26, 2004 Dec. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 1,729,017 $ 1,625,625 6.4
Broadcasting 233,395 196,679 18.7
------------- ------------- ------
Total $ 1,962,412 $ 1,822,304 7.7
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 504,992 $ 496,863 1.6
Broadcasting 125,264 97,890 28.0
Corporate (16,983) (15,332) (10.8)
------------- ------------- ------
Total $ 613,273 $ 579,421 5.8
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 48,801 $ 47,386 3.0
Broadcasting 7,370 6,537 12.7
Corporate 3,757 3,712 1.2
------------- ------------- ------
Total $ 59,928 $ 57,635 4.0
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 553,793 $ 544,249 1.8
Broadcasting 132,634 104,427 27.0
Corporate (13,226) (11,620) (13.8)
------------- ------------- ------
Total $ 673,201 $ 637,056 5.7
============= ============= ======
Broadcasting includes results from the company's 21 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
Operating Cash Flow represents operating income for each of the company's
business segments plus related depreciation and amortization expense. See
attachment for reconciliation of amounts to the Consolidated Statements of
Income.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Fifty-two weeks ended % Inc
Dec. 26, 2004 Dec. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 6,559,740 $ 5,991,231 9.5
Broadcasting 821,543 719,884 14.1
------------- ------------- ------
Total $ 7,381,283 $ 6,711,115 10.0
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 1,813,814 $ 1,713,163 5.9
Broadcasting 400,743 330,054 21.4
Corporate (66,878) (62,199) (7.5)
------------- ------------- ------
Total $ 2,147,679 $ 1,981,018 8.4
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 199,108 $ 189,805 4.9
Broadcasting 29,341 26,394 11.2
Corporate 15,572 15,333 1.6
------------- ------------- ------
Total $ 244,021 $ 231,532 5.4
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 2,012,922 $ 1,902,968 5.8
Broadcasting 430,084 356,448 20.7
Corporate (51,306) (46,866) (9.5)
------------- ------------- ------
Total $ 2,391,700 $ 2,212,550 8.1
============= ============= ======
Broadcasting includes results from the company's 21 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
Operating Cash Flow represents operating income for each of the company's
business segments plus related depreciation and amortization expense. See
attachment for reconciliation of amounts to the Consolidated Statements of
Income.
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 and amortization of intangible assets.
Management believes that the use of this measure allows investors and
management to measure, analyze and compare the cash resources
generated from its business segment operations in a meaningful and
consistent manner. The focus on operating cash flow is appropriate
given the consistent and generally predictable strength of cash flow
generation by newspaper and television operations, and the short
period of time it takes to convert new orders to cash.
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 Dec. 26, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 553,793 $ 132,634 $ (13,226) $ 673,201
Less:
Depreciation (45,640) (7,207) (3,757) (56,604)
Amortization (3,161) (163) - (3,324)
---------- ---------- --------- ------------
Operating Income $ 504,992 $ 125,264 $ (16,983) $ 613,273
========== ========== ========= ============
Thirteen weeks ended Dec. 28, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 544,249 $ 104,427 $ (11,620) $ 637,056
Less:
Depreciation (45,253) (6,537) (3,712) (55,502)
Amortization (2,133) - - (2,133)
---------- ---------- --------- ------------
Operating Income $ 496,863 $ 97,890 $ (15,332) $ 579,421
========== ========== ========= ============
Fifty-two weeks ended Dec. 26, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $2,012,922 $ 430,084 $ (51,306) $ 2,391,700
Less:
Depreciation (187,949) (28,866) (15,572) (232,387)
Amortization (11,159) (475) - (11,634)
---------- ---------- --------- ------------
Operating Income $1,813,814 $ 400,743 $ (66,878) $ 2,147,679
========== ========== ========= ============
Fifty-two weeks ended Dec. 28, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $1,902,968 $ 356,448 $ (46,866) $ 2,212,550
Less:
Depreciation (181,534) (26,394) (15,333) (223,261)
Amortization (8,271) - - (8,271)
---------- ---------- --------- ------------
Operating Income $1,713,163 $ 330,054 $ (62,199) $ 1,981,018
========== ========== ========= ============
News Release
Wednesday, January 26, 2005
Gannett Co., Inc. Releases December Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the twelfth period ended December 26, 2004 increased 4.7 percent resulting from solid demand for local and classified advertising in the newspaper segment. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year affected results for the company's UK operations. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have increased 3.2 percent for the period.
December
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in December increased 5.4 percent compared with 2003's twelfth period on a 3.5 percent decline in ROP volume and a 2.9 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have increased 3.8 percent.
Pro forma local advertising revenues rose 5.4 percent on a 3.1 percent decline in ROP ad volume in December. The performance of the company's small and medium-sized advertisers in its domestic newspapers outpaced the revenue performance of its largest advertisers. In the U.S., across all products, local ad revenue gains were achieved in the department store, grocery, health, financial and telecommunications categories while the furniture, consumer electronics, entertainment, restaurant and home improvement categories lagged last year's comparable period. On a constant currency basis, pro forma local advertising would have been 4.3 percent higher.
Pro forma classified revenues advanced 7.6 percent in the twelfth period on a 3.5 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have increased 4.7 percent for December. Employment revenues increased 20.9 percent, real estate revenues were up 8.6 percent, and automotive declined 7.8 percent compared to last year's twelfth period. On a constant currency basis, employment and real estate revenues would have increased 16.7 percent and 5.8 percent, respectively, while automotive would have decreased 9.2 percent.
Pro forma national advertising revenues in December rose 1.5 percent on a 7.5 percent decline in ad volume. National volume at the company's local domestic newspapers fell 4.3 percent in the period. USA WEEKEND, our weekly newspaper, experienced higher national ad revenues in the period. While our revenue statistics include USA WEEKEND's results, their ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were 5.3 percent lower on a 17.5 percent decline in paid ad pages to 434 from 526. For the twelfth period, at USA TODAY, strength in the retail, technology, automotive and entertainment categories was more than offset by weakness in the travel, pharmaceutical and telecommunications categories. On a constant currency basis, national advertising would have increased 0.7 percent for the twelfth period.
Pro forma broadcasting revenues, which include
Captivate, rose 1.5 percent in the period. Television revenues were 0.4 percent
higher with national revenues up 0.5 percent and local revenues up 0.7 percent.
Fourth Quarter
For the fourth quarter of 2004, total pro forma operating revenues were up 6.2 percent and would have increased 4.9 percent on a constant currency basis.
Newspaper advertising revenues, on a pro forma basis, for the fourth quarter increased 5.5 percent and would have increased 4.0 percent on a constant currency basis.
For the fourth quarter, pro forma local advertising rose 5.2 percent and would have advanced 4.3 percent on a constant currency basis.
Pro forma classified revenues for the quarter increased 8.7 percent and on a constant currency basis would have been 6.0 percent higher. Employment revenues were up 18.3 percent, real estate was up 10.4 percent while auto was down 5.2 percent. On a constant currency basis for the quarter, employment and real estate would have increased 14.3 percent and 7.7 percent, respectively, while auto would have declined 6.5 percent.
Pro forma national advertising was flat for the fourth quarter. If the exchange rate had remained constant year-over-year, national advertising would have decreased 0.7 percent. At USA TODAY advertising revenues declined 5.3 percent in the fourth quarter reflecting a 16.8 percent decline in paid advertising pages to 1,315 compared to 1,580 in the year-ago period. For the full year, USA TODAY's paid pages numbered 4,763 versus 4,918 last year while ad revenues were 6.6 percent higher than last year.
Pro forma broadcasting revenues rose 17.0 percent and
television revenues increased 16.2 percent for the quarter benefiting from
strong election-related advertising demand. Based on current pacings, television
revenues for the first quarter of 2005 would be below last year's first quarter
results in the low to mid single digits. This is due, in part, to the absence of
Super Bowl related advertising on our CBS affiliates and political advertising
that benefited the first quarter of 2004.
* * *
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for December from Nielsen//NetRatings. In December, Gannett's domestic Websites had over 18 million unique visitors reaching 12.1 percent of the Internet audience. In the UK, Newsquest's online audience in December totaled 3.1 million unique visitors with 29.7 million page impressions.
The pro forma advertising and circulation revenue statistics include the results of Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), the SMG (Newsquest's Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest, Clipper and NurseWeek are not included in the ad volume statistics. Circulation volume numbers for Newsquest's paid daily newspapers are included in the enclosed statistics, but volume from unpaid daily and non-daily publications is not included in the circulation volume statistics.
Prior to 2004, the company had included online
revenues in the classified advertising revenue total but not in the specific
classified categories of help wanted, automotive and real estate. Print and
online ad revenues are now reported on a combined basis to calculate the
percentage changes in these categories. Results for each period of 2003 have
been reclassified to reflect this change.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns more than 600 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 21 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
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.
Contact: Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
# # #
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 12 (November 29, 2004 - December 26, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 196,113,000 $ 186,092,000 $ 10,021,000 5.4
National 70,356,000 69,314,000 1,042,000 1.5
Classified 136,233,000 126,580,000 9,653,000 7.6
------------ ------------ ----------- ----
Total Advertising $ 402,702,000 $ 381,986,000 $ 20,716,000 5.4
Circulation 100,032,000 97,595,000 2,437,000 2.5
Other revenue 37,478,000 34,700,000 2,778,000 8.0
Broadcasting 56,534,000 55,712,000 822,000 1.5
------------ ------------ ----------- ----
Total Revenue $ 596,746,000 $ 569,993,000 $ 26,753,000 4.7
============ ============ =========== ====
VOLUME:
Newspaper Inches:
Local 3,420,627 3,529,959 (109,332) (3.1)
National 321,351 347,306 (25,955) (7.5)
Classified 4,089,889 4,236,989 (147,100) (3.5)
------------ ------------ ----------- ----
Total ROP 7,831,867 8,114,254 (282,387) (3.5)
============ ============ =========== ====
Preprint Distribution
(in thousands) 1,226,188 1,191,516 34,672 2.9
============ ============ =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,812,623 6,901,539 (88,916) (1.3)
Evening 1,163,678 1,201,250 (37,572) (3.1)
------------ ------------ ----------- ----
Total Daily 7,976,301 8,102,789 (126,488) (1.6)
============ ============ =========== ====
Sunday 6,771,266 6,956,037 (184,771) (2.7)
============ ============ =========== ====
Year-to-Date through December 26, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $2,086,980,000 $1,969,230,000 $ 117,750,000 6.0
National 788,418,000 737,694,000 50,724,000 6.9
Classified 2,045,361,000 1,835,462,000 209,899,000 11.4
-------------- ------------- ------------- -----
Total Advertising $4,920,759,000 $4,542,386,000 $ 378,373,000 8.3
Circulation 1,237,971,000 1,219,869,000 18,102,000 1.5
Other revenue 409,181,000 387,916,000 21,265,000 5.5
Television 824,202,000 730,126,000 94,076,000 12.9
-------------- ------------- ------------- -----
Total Revenue $7,392,113,000 $6,880,297,000 $ 511,816,000 7.4
============== ============= ============= =====
VOLUME:
Newspaper Inches:
Local 37,865,146 37,950,319 (85,173) (0.2)
National 4,168,509 4,068,182 100,327 2.5
Classified 59,848,558 58,908,751 939,807 1.6
------------ ------------- ------------- -----
Total ROP 101,882,213 100,927,252 954,961 0.9
============ ============= ============= =====
Preprint Distribution
(in thousands) 11,706,761 11,347,133 359,628 3.2
============ ============= ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 7,086,591 7,079,564 7,027 0.1
Evening 1,206,792 1,237,862 (31,070) (2.5)
------------ ------------- ------------- -----
Total Daily 8,293,383 8,317,426 (24,043) (0.3)
============ ============= ============= =====
Sunday 6,866,019 7,026,405 (160,386) (2.3)
============ ============= ============= =====
Note: The operating results from the company's newspapers participating in
joint operating agencies, and which are accounted for under the equity
method of accounting, are reported as a single amount in other operating
revenues. Advertising linage statistics from these newspapers are not
included above, however, circulation volume statistics for these newspapers
are included above.
The above revenue amounts and statistics have been restated to include
all companies presently owned including Captivate (acquired in April
2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired
in late October 2003), SMG Publishing (acquired in April 2003) and 100%
of the Texas-New Mexico Newspapers Partnership (established in March
2003). Captivate is a national news and entertainment network that
delivers programming and full motion video advertising through wireless
digital video screens in the elevators of premier office towers. Captivate
is included above in Broadcasting revenue. NurseWeek is a multimedia company
with print publications focused on the recruitment, recognition and
education of nurses. Clipper Magazine is a direct-mail advertising
magazine company publishing over 345 individual market editions in 24
states, which are mailed to over 100 million American homes annually.
SMG Publishing consists of three Scottish newspapers: The Herald,
Sunday Herald and Evening Times; eleven specialty consumer and
business-to-business magazine titles; and an online advertising and
content business.
Newsquest (which includes SMG Publishing) is a regional newspaper
publisher in the United Kingdom with more than 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume
statistics for Newsquest's seventeen paid daily newspapers are included
above. Circulation volume statistics for Sunday Herald are included
above in the Sunday statistics. Circulation volume statistics for
Newsquest's unpaid daily and non-daily publications are not reflected
above. Advertising linage for Newsquest publications is not reflected
above.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Certain online advertising revenues in 2003 have been reclassified to
conform with the 2004 presentation. There was no effect on total
revenues.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
4th Quarter 2004 (September 27 - December 26, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 595,688,000 $ 566,040,000 $ 29,648,000 5.2
National 219,362,000 219,383,000 (21,000) (0.0)
Classified 484,626,000 445,926,000 38,700,000 8.7
-------------- -------------- ------------- ----
Total Advertising $ 1,299,676,000 $ 1,231,349,000 $ 68,327,000 5.5
Circulation 314,500,000 306,676,000 7,824,000 2.6
Other revenue 114,840,000 110,452,000 4,388,000 4.0
Broadcasting 233,395,000 199,550,000 33,845,000 17.0
-------------- -------------- ------------- ----
Total Revenue $ 1,962,411,000 $ 1,848,027,000 $ 114,384,000 6.2
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 10,540,638 10,690,387 (149,749) (1.4)
National 1,104,333 1,134,637 (30,304) (2.7)
Classified 14,491,543 14,635,949 (144,406) (1.0)
-------------- -------------- ------------- ----
Total ROP 26,136,514 26,460,973 (324,459) (1.2)
============== ============== ============= ====
Preprint Distribution
(in thousands) 3,508,229 3,419,079 89,150 2.6
============== ============== ============= ====
Note: The operating results from the company's newspapers participating in
joint operating agencies, and which are accounted for under the equity
method of accounting, are reported as a single amount in other operating
revenues. Advertising linage statistics from these newspapers are not
included above, however, circulation volume statistics for these
newspapers are included above.
The above revenue amounts and statistics have been restated to include
all companies presently owned including Captivate (acquired in April
2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired
in late October 2003), SMG Publishing (acquired in April 2003) and 100%
of the Texas-New Mexico Newspapers Partnership (established in March
2003). Captivate is a national news and entertainment network that
delivers programming and full motion video advertising through wireless
digital video screens in the elevators of premier office towers. Captivate
is included above in Broadcasting revenue. NurseWeek is a multimedia company
with print publications focused on the recruitment, recognition and
education of nurses. Clipper Magazine is a direct-mail advertising
magazine company publishing over 345 individual market editions in 24
states, which are mailed to over 100 million American homes annually.
SMG Publishing consists of three Scottish newspapers: The Herald,
Sunday Herald and Evening Times; eleven specialty consumer and
business-to-business magazine titles; and an online advertising and
content business.
Newsquest (which includes SMG Publishing) is a regional newspaper
publisher in the United Kingdom with more than 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume
statistics for Newsquest's seventeen paid daily newspapers are included
above. Circulation volume statistics for Sunday Herald are included
above in the Sunday statistics. Circulation volume statistics for
Newsquest's unpaid daily and non-daily publications are not reflected
above. Advertising linage for Newsquest publications is not reflected
above.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Certain online advertising revenues in 2003 have been reclassified to
conform with the 2004 presentation. There was no effect on total
revenues.
Gannett Online Internet Audience
December 2004
Nielsen//NetRatings
Home/Work Panel Combined
|
Unique Visitors Per Month |
Percentage Reach of Internet Audience |
|
| Gannett Online |
18,105,000 |
12.1% |