UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
April 12, 2006
GANNETT CO., INC.
(Exact name of registrant as specified in charter)
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Delaware |
1-6961 |
16-0442930 |
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(State or Other Jurisdiction of Incorporation or |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
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7950 Jones Branch Drive, McLean, Virginia |
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22107-0910 |
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(Address of principal executive offices) |
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(Zip Code) |
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(703) 854-6000 |
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(Registrant's telephone number, including area code) |
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Not Applicable |
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(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 April 12, 2006, Gannett Co., Inc. reported its consolidated financial results for the first quarter ended March 26, 2006. On April 12, 2006, the company also issued a press release announcing the company's statistical report for the period and quarter ended March 26, 2006. Copies of these press releases are furnished with this report as exhibits.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
See Index to Exhibits attached hereto.
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.
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Gannett Co., Inc. |
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Date: April 12, 2006 |
By: |
/s/George R. Gavagan |
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George R. Gavagan |
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Vice President and Controller |
INDEX TO EXHIBITS
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Exhibit No. |
Description |
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99.1 |
Gannett Co., Inc. Earnings Press Release dated April 12, 2006. |
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99.2 |
Gannett Co., Inc. Statistical Report Press Release dated April 12, 2006. |
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News Release
FOR IMMEDIATE RELEASE
Wednesday, April 12, 2006
Gannett Co., Inc. Reports First Quarter Results
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that 2006 first quarter earnings per diluted share from continuing operations were $0.99 compared to $1.03 per share in the first quarter of 2005. The company began reporting stock compensation expense in the first quarter of 2006 as required by Statement of Financial Accounting Standards No. 123-R. This non-cash expense totaled $11.2 million ($7.0 million after tax or $0.03 per share) in the quarter.
On December 25, 2005, the company completed the expansion and reorganization, with MediaNews Group, of the Texas-New Mexico Newspapers Partnership. The company's ownership interest in the partnership was reduced and MediaNews Group became the managing partner. Results for the Texas-New Mexico Newspapers Partnership are no longer consolidated in the company's financial statements. The company's 40.6 percent interest in the partnership results is now included in other operating revenues.
As previously reported, the company completed an exchange of properties with Knight Ridder, Inc. in August 2005. This exchange of three Gannett newspapers and Knight Ridder's Tallahassee, FL, newspaper, was accounted for as a sale of discontinued operations and a purchase of the Tallahassee newspaper. Operating results for 2005 exclude contributions from the former Gannett properties which have been reclassified to income from discontinued operations.
Results for the quarter also include the Detroit Newspaper Partnership, L.P. which, since August 1, 2005, has been fully consolidated in the financial statements of Gannett along with a minority interest charge for MediaNews Group's interest.
CONTINUING OPERATIONS
Total operating revenues for the company increased 6.5 percent to $1.88 billion in the first quarter from $1.77 billion in the similar interval in 2005. This increase is due primarily to the full consolidation of Detroit newspaper operations. On a pro forma basis, assuming Gannett owned the same complement of properties in the first quarter of 2006 and 2005, total operating revenues would have been 0.5 percent lower. Operating cash flow (defined as operating income plus depreciation and amortization) was $488.2 million compared with $511.6 million in the year earlier quarter. Income from continuing operations was $235.3 million in the first quarter of 2006 versus $260.8 million in the same quarter of last year.
Reported operating expenses increased 10.8 percent in the quarter reflecting principally the full consolidation of Detroit newspaper operations, as well as stock based compensation. On a pro forma basis and excluding stock based compensation, total operating expenses were 0.6 percent higher. Corporate expense totaled $20.5 million for the quarter, an increase of $3.7 million compared to the first quarter in 2005. The increase was due principally to the portion of stock based compensation expense
(more)
attributable to the corporate segment. Excluding that cost, corporate expense increased just $169,000 or 1.0 percent.
Average diluted shares outstanding in the first quarter totaled 238,375,000 compared with 254,270,000 in 2005's first quarter.
Commenting on the company's performance, Craig A. Dubow, President and CEO
said: "We are pleased to report solid domestic revenue growth for the
quarter. In our newspaper segment we reported advertising gains at our U.S.
community newspapers, particularly in classified employment and real estate
while auto remained soft. Our domestic newspapers continued to enjoy strong
success in growing online ad revenues. These results were offset, however, by
our Newsquest properties in the UK which experienced significantly lower ad
demand due, in part, to the consumer slowdown in the UK economy. The
broadcasting group achieved record revenues in the quarter benefiting, in part,
from advertising demand related to the Winter Olympics on our 12 NBC affiliated
stations and online revenue growth. However, higher newsprint costs and interest
expense as well as an unfavorable exchange rate tempered our results."
NEWSPAPERS
Newspaper results in the quarter include Exchange & Mart and Auto Exchange (acquired in September 2005), Tallahassee (acquired in August 2005), 100 percent of the Detroit Newspaper Partnership (established in August 2005), PointRoll, Inc. (acquired in June 2005) and Hometown Communications (acquired in March 2005).
Operating revenues were $1.70 billion for the quarter, a 6.0 percent increase from the first quarter of 2005. Assuming Gannett had owned the same group of newspapers in both the first quarter of 2006 and 2005, advertising revenues would have declined 1.8 percent. On a comparable basis, local advertising revenues were 1.8 percent lower, classified was down 1.9 percent and national ad revenues were 1.7 percent lower. On a constant currency basis, total advertising revenues would have been down slightly as classified would have been up 0.5 percent while local and national would have declined 0.9 percent and 1.1 percent, respectively. In the U.S., pro forma advertising revenues were up 1.5 percent in the quarter. Total newspaper segment operating cash flow which includes USA TODAY and our UK properties was $424.7 million in the first quarter versus $458.0 million in the same quarter of 2005.
For the quarter, total newspaper operating expenses increased 11.2 percent reflecting the full consolidation of the Detroit newspaper operations and higher newsprint expense. Assuming Gannett had owned the same group of properties for the first quarter of 2006 and 2005, pro forma expenses would have increased 0.8 percent. On a pro forma basis and also excluding stock based compensation expense, newspaper segment costs were held to only a 0.3 percent increase including higher newsprint expense. The consolidation of Detroit also had an impact on reported newsprint expense, which increased 13.8 percent in the quarter, reflecting higher newsprint prices and usage. On a pro forma basis, newsprint usage declined.
At USA TODAY, advertising revenues declined 4.2 percent in the first quarter. Paid advertising pages totaled 1,020 compared with 1,101 in the same quarter of 2005.
(more)
BROADCASTING
Broadcasting revenues totaled $182.6 million for the quarter, a 10.9 percent increase from the first quarter of 2005 and a new record. The increase reflects ad demand associated with the Winter Olympic Games on the company's NBC affiliates and increased revenues at Captivate. Broadcasting achieved a 20.3 percent increase in operating cash flow in the quarter to $79.8 million compared with $66.4 million in the year ago quarter. Broadcasting expenses were 4.6 percent higher in the quarter. Excluding stock based compensation, broadcasting costs would have increased 3.4 percent.
In the first quarter of 2006, television revenues were $177.2 million, a 10.2 percent increase compared to $160.8 million in the first quarter of 2005.
NON-OPERATING ITEMS
Interest expense for the first quarter increased $19.8 million and was $64.7 million compared to $44.9 million in the same quarter of 2005. The increase is attributable to both higher short-term interest rates and debt outstanding related to 2005 share repurchase activity, and acquisitions. Other non-operating expense primarily reflects non-operating charges for minority interests and Internet investment costs offset by investment income and gains.
During the first quarter, the company announced that it made a minority investment in 4INFO, a company that offers a comprehensive suite of mobile search services.
At the end of the quarter, Gannett had more than 100 domestic publishing Web
sites, including USATODAY.com, one of the most popular newspaper sites on the
Web. The company also had Web sites in all of its 19 television markets. In
March, Gannett's consolidated domestic Internet audience share was approximately
24.1 million unique visitors reaching about 15.6 percent of the Internet
audience according to Nielsen//NetRatings. Newsquest is also an Internet leader
in the UK where its network of Web sites attracted more than 51.8 million
monthly page impressions from approximately
3.8 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 1-800-818-5264 and international callers should dial 913-981-4910 at least 10 minutes prior to the scheduled start of the call. The confirmation code for the conference call is 4020989. To access the replay, dial 1-888-203-1112 in the U.S. International callers should use the number 719-457-0820. The confirmation code for the replay is 4020989. Materials related to the call will be available through the Investor Relations section of the company's Web site Wednesday morning.
(more)
Gannett Co., Inc. is a leading international news and information company that publishes 90 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 1,000 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
March 26, 2006 March 27, 2005 (Dec)
Net Operating Revenues:
Newspaper advertising $1,266,891 $1,198,692 5.7
Newspaper circulation 324,050 308,978 4.9
Broadcasting 182,575 164,557 10.9
Other 109,025 96,223 13.3
----------- ---------- ------
Total 1,882,541 1,768,450 6.5
----------- ---------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 1,075,078 962,722 11.7
Selling, general and
administrative expenses,
exclusive of depreciation 319,234 294,141 8.5
Depreciation 61,159 60,222 1.6
Amortization of intangible assets 7,764 3,805 104.0
----------- ---------- ------
Total 1,463,235 1,320,890 10.8
----------- ---------- ------
Operating income 419,306 447,560 (6.3)
----------- ---------- ------
Non-operating income (expense):
Interest expense (64,721) (44,938) 44.0
Other (176) (10,919) ***
----------- ---------- ------
Total (64,897) (55,857) 16.2
----------- ---------- ------
Income before income taxes 354,409 391,703 (9.5)
Provision for income taxes 119,100 130,900 (9.0)
----------- ---------- ------
Net income from continuing
operations $235,309 $260,803 (9.8)
----------- ---------- ------
Discontinued Operations: Income from the operation of discontinued operations, net of tax - 4,934 ***
----------- ---------- ------
Net Income $235,309 $265,737 (11.5)
=========== ========== ======
Earnings from continuing operations per share-basic $0.99 $1.03 (3.9)
Earnings from discontinued
operations:
Earnings from the operation of
discontinued operations per
share-basic - 0.02 ***
----------- ---------- ------
Net Income per share-basic $0.99 $1.05 (5.7)
=========== ========== ======
Earnings from continuing operations per share-diluted $0.99 $1.03 (3.9)
Earnings from discontinued
operations:
Earnings from the operation of
discontinued operations per
share-diluted - 0.02 ***
----------- ---------- ------
Net Income per share-diluted $0.99 $1.05 (5.7)
=========== ========== ======
Dividends per share $0.29 $0.27 7.4
=========== ========== ======
Note:Beginning August 1, 2005, Newspaper publishing results (revenues and
expenses) reflect 100% of Detroit newspaper operations. Prior to that
date, the company's 50% interest in Detroit's operating income
was reflected in other revenues.
BUSINESS SEGMENT INFORMATION Gannett Co., Inc. and Subsidiaries Unaudited, in thousands of dollars
Thirteen weeks ended % Inc
March 26, 2006 March 27, 2005 (Dec)
Net Operating Revenues:
Newspaper publishing $1,699,966 $1,603,893 6.0
Broadcasting 182,575 164,557 10.9
---------- ---------- ------
Total $1,882,541 $1,768,450 6.5
=========== ========== ======
Operating Income
(net of depreciation and
amortization):
Newspaper publishing $367,970 $405,622 (9.3)
Broadcasting 71,804 58,683 22.4
Corporate (20,468) (16,745) (22.2)
----------- ---------- ------
Total $419,306 $447,560 (6.3)
=========== ========== ======
Depreciation and Amortization:
Newspaper publishing $56,717 $52,338 8.4
Broadcasting 8,026 7,700 4.2
Corporate 4,180 3,989 4.8
----------- ---------- ------
Total $68,923 $64,027 7.6
=========== ========== ======
Operating Cash Flow:
Newspaper publishing $424,687 $457,960 (7.3)
Broadcasting 79,830 66,383 20.3
Corporate (16,288) (12,756) (27.7)
----------- ---------- ------
Total $488,229 $511,587 (4.6)
=========== ========== ======
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.
Beginning August 1, 2005, Newspaper publishing results reflect 100% of Detroit newspaper operations. Prior to that date, the company's 50% interest in Detroit's operating income was reflected in Newspaper publishing revenues.
Beginning with the first quarter of 2006, the company began recording stock compensation expense in connection with the requirements of Statement of Financial Accounting Standards No. 123R, "Share-Based Payment". For the first quarter of 2006, this non-cash expense item totaled $11.2 million and has been allocated to the Newspaper, Broadcasting and Corporate segments.
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 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 March 26, 2006
Newspaper Consolidated
Publishing Broadcasting Corporate Total
Operating cash flow $424,687 $79,830 $(16,288) $488,229
Less:
Depreciation (49,142) (7,837) (4,180) (61,159)
Amortization (7,575) (189) - (7,764)
-------- -------- -------- --------
Operating income $367,970 $71,804 $(20,468) $419,306
======== ======== ======== ========
Thirteen weeks ended March 27, 2005
Newspaper Consolidated
Publishing Broadcasting Corporate Total
Operating cash flow $457,960 $66,383 $(12,756) $511,587
Less:
Depreciation (48,779) (7,454) (3,989) (60,222)
Amortization (3,559) (246) - (3,805)
-------- -------- -------- --------
Operating income $405,622 $58,683 $(16,745) $447,560
======== ======== ======== ========
News Release
Wednesday, April 12, 2006
Gannett Co., Inc. Releases March Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the third period ended March 26, 2006 declined 1.2 percent. Advertising gains were achieved at its domestic newspapers and broadcasting segment but were offset by significantly lower ad demand at its UK properties. For comparison purposes, the exchange rate of Sterling year-over-year also 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 0.5 percent for the period.
March
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in March declined 2.0 percent compared with the third period in 2005 on a 2.2 percent decline in ROP volume and a 3.0 percent decline in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been flat. Newspaper advertising category results in part reflect the impact of a later Easter this year. As in the past, we recommend combining March and April results for comparison purposes.
Pro forma local advertising revenues were 2.7 percent lower on a 4.0 percent decline in ROP ad volume in March. 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 furniture, entertainment, health and financial categories while the department store, consumer electronics, grocery, restaurant, telecommunications and home improvement categories lagged last year's comparable period. On a constant currency basis, pro forma local advertising would have been down 1.6 percent.
Pro forma classified revenues declined 1.1 percent in the third period on a 0.5 percent decrease in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been 2.1 percent higher for March. Real estate revenues were up 15.1 percent while employment and automotive revenues declined 3.0 percent and 17.4 percent, respectively, compared to last year's third period. On a constant currency basis, real estate would have been up 19.6 percent, employment would have been up slightly and automotive revenues would have been down 15.1 percent. Classified results in our domestic community newspapers were significantly better than in the UK. In the U.S., pro forma classified revenues increased 6.5 percent in the third period comprised of a 31.1 percent increase in real estate revenues and a 9.4 percent increase in employment revenues, while automotive declined 15.0 percent.
(more)
Pro forma national advertising revenues in March were 2.8 percent lower on a 9.3 percent decline in ad volume. National volume at the company's local domestic newspapers was 9.4 percent lower in the period. At USA TODAY, advertising revenues were 8.4 percent lower on a decline in paid ad pages to 344 from 373. For the third period, at USA TODAY, strength in the automotive, telecommunications, financial, home and building and retail categories was offset by weakness in the travel, technology and pharmaceutical categories.
Pro forma broadcasting revenues, which include Captivate, increased 2.3
percent in the period. Television revenues were up 0.8 percent for the third
period. Local revenues were up 2.8 percent while national revenues were 1.9
percent lower.
First Quarter
For the first quarter of 2006, total pro forma operating revenues were down 0.5 percent but would have increased 0.8 percent on a constant currency basis.
Newspaper advertising revenues, on a pro forma basis, for the first quarter declined 1.8 percent and would have been down slightly on a constant currency basis. The company's U.S. results were stronger than its UK results as domestic newspaper advertising increased 1.5 percent.
For the first quarter, pro forma local advertising was 1.8 percent lower and would have been 0.9 percent lower on a constant currency basis. Local advertising in the U.S. for the quarter was down slightly.
Pro forma classified revenues for the quarter were down 1.9 percent but on a constant currency basis would have been 0.5 percent higher. Real estate revenues were 12.0 percent higher, while employment was down 3.9 percent and auto declined 16.9 percent. On a constant currency basis for the quarter, real estate would have been up 15.2 percent while employment and auto would have been down 1.3 percent and 15.1 percent, respectively. For the quarter, classified revenues were up 4.6 percent at our domestic community newspapers with increases in real estate and employment revenues of 22.1 percent and 7.4 percent, respectively. Automotive revenues were 13.7 percent lower.
Pro forma national advertising declined 1.7 percent for the first quarter. If the exchange rate had remained constant year-over-year, national advertising would have been 1.1 percent lower. At USA TODAY advertising revenues were 4.2 percent lower in the quarter while paid advertising pages were 7.4 percent lower to 1,020 compared to 1,101 in the year-ago period.
Pro forma broadcasting revenues for the quarter increased 10.9 percent and television revenues were 10.2 percent higher reflecting, in part, advertising demand related to the Winter Olympic Games in the second period of 2006. Based on current pacings, television revenues for the second quarter of 2006 would be below last year's second quarter in the low single digits.
In addition to the revenue and statistical summary, attached is a chart which
shows the consolidated Gannett Online audience share for March from Nielson//Net
Ratings. In March, Gannett's domestic Websites had approximately 24.1 million
unique visitors reaching 15.6 percent of the Internet audience.
(more)
The pro forma advertising and circulation revenue statistics include the results
for Exchange & Mart and Auto Exchange (acquired in September 2005),
Tallahassee (acquired August 29, 2005), 100 percent of the Detroit Newspaper
Partnership (established August 2005), Mint Magazine (acquired in July 2005) and
Hometown Communications (acquired March 31, 2005). The pro forma other revenue
statistics include the results for PointRoll, Inc. (acquired in June 2005). 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. The revenue
and statistical data related to the former Gannett owned newspapers in
Bellingham (WA), Olympia (WA) and Boise (ID) has been excluded from all periods
presented.
Gannett Co., Inc. is a leading international news and information company that publishes 90 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 1,000 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 3 (Feb. 27, 2006 - Mar. 26 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 185,305,000 $ 190,439,000 $ (5,134,000) (2.7)
National 69,447,000 71,482,000 (2,035,000) (2.8)
Classified 195,564,000 197,778,000 (2,214,000) (1.1)
------------- ------------- ----------- ----
Total Advertising $ 450,316,000 $ 459,699,000 $ (9,383,000) (2.0)
============= ============= =========== ====
Circulation 106,979,000 108,653,000 (1,674,000) (1.5)
Other revenue 39,571,000 37,979,000 1,592,000 4.2
Broadcasting 57,772,000 56,495,000 1,277,000 2.3
------------- ------------- ----------- ----
Total Revenue $ 654,638,000 $ 662,826,000 $ (8,188,000) (1.2)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 2,655,714 2,767,292 (111,578) (4.0)
National 310,674 342,500 (31,826) (9.3)
Classified 4,378,663 4,400,268 (21,605) (0.5)
------------- ------------- ----------- ----
Total ROP 7,345,051 7,510,060 (165,009) (2.2)
============= ============= =========== ====
Preprint Distribution
(in thousands) 958,182 987,479 (29,297) (3.0)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,192,288 7,322,152 (129,864) (1.8)
Evening 904,499 939,241 (34,742) (3.7)
------------- ------------- ----------- ----
Total Daily 8,096,787 8,261,393 (164,606) (2.0)
============= ============= =========== ====
Sunday 6,458,793 6,553,853 (95,060) (1.5)
============= ============= =========== ====
Year-to-Date through Mar. 26, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 523,882,000 $ 533,235,000 $ (9,353,000) (1.8)
National 202,344,000 205,844,000 (3,500,000) (1.7)
Classified 540,665,000 551,147,000 (10,482,000) (1.9)
------------- ------------- ----------- ----
Total Advertising $ 1,266,891,000 $ 1,290,226,000 $ (23,335,000) (1.8)
============= ============= =========== ====
Circulation 324,050,000 332,021,000 (7,971,000) (2.4)
Other revenue 109,025,000 105,213,000 3,812,000 3.6
Television 182,575,000 164,557,000 18,018,000 10.9
------------- ------------- ----------- ----
Total Revenue $ 1,882,541,000 $ 1,892,017,000 $ (9,476,000) (0.5)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 8,093,044 8,299,038 (205,994) (2.5)
National 960,478 1,014,611 (54,133) (5.3)
Classified 13,355,214 13,612,504 (257,290) (1.9)
------------- ------------- ----------- ----
Total ROP 22,408,736 22,926,153 (517,417) (2.3)
============= ============= =========== ====
Preprint Distribution
(in thousands) 2,904,230 2,954,472 (50,242) (1.7)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,080,260 7,171,769 (91,509) (1.3)
Evening 905,450 942,146 (36,696) (3.9)
------------- ------------- ----------- ----
Total Daily 7,985,710 8,113,915 (128,205) (1.6)
============= ============= =========== ====
Sunday 6,425,793 6,555,343 (129,550) (2.0)
============= ============= =========== ====
Note: The above revenue amounts and statistics have been restated to
include all companies presently owned, including the Exchange & Mart
and Auto Exchange (non-daily publications acquired in September 2005)
, the Tallahassee Democrat (acquired August 29, 2005), 100% of the
Detroit Newspaper Partnership (established August 2005), Mint
Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June
2005) and Hometown Communications (acquired in late March 2005).
PointRoll is a marketing services company with a suite of media
products that delivers enhanced online marketing opportunities for
advertisers, agencies and online publishers. PointRoll is included
above in Other revenue. Hometown is a community publishing company
with one daily newspaper, 62 non-daily community newspapers, 24
community telephone directories and other specialty and niche
publications. The revenue and statistical data related to the former
Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise
(ID) has been excluded from all periods presented.
Operating results from the company's newspaper in Tucson, which
participates in a joint operating agency, are accounted for under the
equity method of accounting and are reported as a single amount in
other operating revenues. Advertising linage statistics from this
newspaper are not included above, however, circulation volume
statistics are included.
Newsquest 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 17
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 statistics for Detroit Free Press, a morning
newspaper, are reflected above. Circulation volume statistics for
The Detroit News, an evening newspaper, are not reflected above.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Gannett Online Internet Audience March 2006
Nielsen//NetRatings
Home/Work Panel Combined
Unique Visitors Percentage Reach of Per Month Internet Audience
Gannett Online 24,063,000 15.6%