Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): July 16, 2008
GANNETT CO., INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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1-6961 |
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16-0442930 |
(State or other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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7950 Jones Branch Drive,
McLean,
Virginia
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22107-0910 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number,
including area code: (703) 854-6000
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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:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Item 2.02 Results of
Operations and Financial Condition.
On
July 16, 2008, Gannett Co., Inc. reported its preliminary consolidated
financial results for the second quarter ended June 29, 2008.
The preliminary
results, however, do not include non-cash charges to be recorded in the
quarter, which have not yet been finalized, for the impairment of goodwill,
other intangible assets and certain other assets. The non-cash charges are
expected to total in the range of $2.6 billion to $2.9 billion on a
pre-tax basis and $2.4 billion to $2.7 billion on an after-tax basis.
Earnings per share will be reduced in the quarter due to the charges but they
will not impact the company’s operating cash flow.
On July 16, 2008,
the company also issued a press release announcing the company’s
statistical report for the period and quarter ended June 29, 2008.
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.
2
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: July 16, 2008
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By: |
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/s/George R. Gavagan
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George R. Gavagan |
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Vice President and Controller |
4
INDEX TO EXHIBITS
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Exhibit
No. |
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Description |
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99.1
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Gannett Co., Inc. Earnings Press Release dated
July 16, 2008. |
99.2
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Gannett Co., Inc. Statistical Report Press
Release dated July 16, 2008. |
6
Filed by Bowne Pure Compliance
Exhibit 99.1
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News Release
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FOR IMMEDIATE RELEASE
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Wednesday, July 16, 2008 |
Gannett Co., Inc. Reports Preliminary Second Quarter Results
McLEAN, VA Gannett Co., Inc. (NYSE: GCI) reported today that preliminary 2008 second
quarter earnings per diluted share from continuing operations were $1.02 compared with
$1.24 per share in the second quarter of 2007.
During the quarter, the company made changes to its domestic benefit plans by improving its
401(k) plan while freezing benefits under certain company sponsored pension plans. As a result,
the company recognized a pre-tax curtailment gain for its domestic pension plans of approximately
$46.5 million ($28.9 million after tax or $0.13 per share). However, the curtailment gain was
almost totally offset by approximately $39.9 million in pre-tax severance expenses ($26.4 million
after tax or $0.12 per share) related to reductions in force and efficiency efforts in the U.S. and
the UK.
The preliminary results, however, do not include non-cash charges to be recorded in the
quarter, which have not yet been finalized, for the impairment of goodwill, other intangible assets
and certain other assets. The non-cash charges are expected to total in the range of $2.6 billion
to $2.9 billion on a pre-tax basis and $2.4 billion to $2.7 billion on an after-tax basis. Earnings
per share will be reduced in the quarter due to the charges but they will not impact the companys
operating cash flow.
Softening business conditions and the resulting decline in the companys stock price required
management to update its impairment testing for goodwill, intangible assets, and other long lived
assets as of March 31, 2008. As a result, the company will incur non-cash impairment charges in
the quarter to reduce the book value of newspaper publishing goodwill, other newspaper intangible
assets including mastheads and certain newspaper property, plant and equipment. The charges will
also include accelerated depreciation for certain newspaper property, plant and equipment related
to restructuring initiatives. The carrying value of certain of the companys investments in
newspaper partnerships and other businesses, which are accounted for under the equity method, will
also be affected. The final amount of the charges will be included in earnings and disclosed in our
Form 10-Q, which we will file with the Securities and Exchange Commission on or before August 8,
2008.
Commenting on the second quarter results Craig Dubow, chairman, president and CEO said: The
weakening economy had a dramatic impact on our results. The impairment charges reflect, in part,
these challenging economic conditions and pressure on our stock price but do not affect our ability
to manage our businesses or make strategic acquisitions. The difficult economic and advertising
environment also should not overshadow the progress we are making on our strategic transformation
as we continue to position the company for the evolving media landscape.
The struggling economy has put pressure on advertising demand for our publishing segment
particularly classified advertising in our real estate-centric markets in the U.S. and in the UK.
Broadcasting benefited from higher political advertising and positive results from Captivate which
partially offset the weakness in other categories. Growth in our online revenues also contributed
positively to results in the
quarter. We carefully controlled our operating expenses despite higher newsprint prices, and
focused on
increasing efficiencies. A significant level of severance expenses related to those efforts during
the quarter will better position us for the remainder of this year and into 2009. We benefited from
lower interest expense, as well.
(more)
CONTINUING OPERATIONS
Total operating revenues for the company were $1.72 billion in the second quarter compared to
$1.91 billion in the second quarter of 2007, reflecting primarily the impact the weaker economy in
the U.S. and the UK had on advertising demand in publishing and broadcasting. Operating cash flow
(defined as operating income plus depreciation and amortization) was $429.9 million. Net income
was
$232.7 million in the quarter.
Reported operating expenses totaled $1.35 billion down 6.3 percent from $1.44 billion for the
same quarter a year ago. The decline was driven by focused efforts to control costs and create
efficiencies, lower newsprint expense, and the pension curtailment gain which was mitigated almost
entirely by severance expenses. Corporate expenses were $8.8 million, a 52.9 percent decline from
$18.7 million in the second quarter of 2007 and reflect, in part, an allocation of part of the
pension curtailment gain and continued strong cost containment efforts.
Average diluted shares outstanding in the second quarter totaled 228,773,000 compared with
234,605,000 in 2007s second quarter. Shares repurchased totaled 581,100 in the second quarter and
2.1 million year-to-date.
PUBLISHING
Publishing segment operating revenues totaled $1.53 billion for the quarter. Advertising
revenues were $1.11 billion compared to $1.28 billion in the second quarter of 2007. Retail
advertising revenues declined 8.3 percent, national revenues were 14.0 percent lower and classified
revenues were down
18.7 percent. Advertising revenues declined 13.6 percent in the U.S. and 12.5 percent in pounds at
Newsquest, our operations in the UK. Operating cash flow in the second quarter for the total
publishing segment, which includes USA TODAY and Newsquest, was $345.3 million.
Total publishing operating expenses declined 5.7 percent to $1.23 billion, reflecting
continued cost control and efficiency efforts in the U.S. and the UK, lower newsprint expenses and
an allocation of part of the pension curtailment gain offset partially by severance expenses.
Publishing operating expenses would have been down 5.5 percent excluding the impact of the
curtailment gain and severance expenses. Reported newsprint expense declined 11.9 percent for the
quarter reflecting a 4.9 percent increase in usage prices which was more than offset by a 16.0
percent decline in volume.
At USA TODAY, advertising revenues declined 16.6 percent in the second quarter compared to the
year ago quarter. Paid advertising pages totaled 831 compared with 1,034 in the same quarter of
2007.
(more)
BROADCASTING
Broadcasting revenues (which include Captivate) totaled $192.6 million in the quarter, versus
$204.7 million in the second quarter of 2007, a 5.9 percent decline. The decline reflected a $3.1
million increase in politically related advertising demand that was more than offset by weakness in
other
categories, particularly automotive. Online revenues were 17.1 percent higher in the quarter
compared to
the second quarter in 2007 and Captivates revenues increased 9.1 percent. Operating expenses in
the broadcasting segment totaled $111.7 million, a 4.8 percent decline from the same quarter a year
ago reflecting cost controls and an allocation of part of the pension curtailment gain. Broadcast
expenses would have been 1.5 percent lower excluding the curtailment gain and severance expenses.
Operating cash flow was $89.4 million in the second quarter. Television operating revenues were
$184.7 million for the quarter. Television expenses totaled $104.9 million, a 5.7 percent decline
compared to $111.1 million for the same period a year ago.
NON-OPERATING ITEMS
At the end of 2007, the companys equity share of operating results from its newspaper
partnerships, including Tucson, which participates in a joint operating agency, the California
Newspapers Partnership and Texas-New Mexico Newspapers Partnership, were reclassified from All
other revenue and reflected as Equity income (losses) in unconsolidated investees, net in the
non-operating section of the Consolidated Statements of Income. This line also includes equity
income and losses from online/new technology businesses which were previously classified in Other
non-operating items. All other revenue is now comprised principally of commercial printing
revenues and revenue from PointRoll. All periods presented reflect these reclassifications.
The reduction in equity income from unconsolidated investees was due primarily to lower
results for newspaper partnerships reflecting the challenging publishing advertising environment,
and investments in digital assets.
Interest expense for the second quarter totaled $44.0 million compared to $66.4 million for
the year-ago quarter. The 33.8 percent decline was due to lower interest rates and average debt
balances.
The decrease in other non-operating income reflects a reduced level of investment income as
well as the absence of gains on the sale of real estate and investments that benefited the second
quarter last year.
The companys tax rate reflects a lower UK statutory tax rate beginning in 2008, and the
benefits of favorable renegotiations with UK tax authorities for tax positions of prior years.
Subsequent to the close of the quarter, Gannett announced that it had acquired from Tribune
Company and The McClatchy Company, in separate transactions, their minority ownership interests in
ShopLocal LLC, the top marketing and database services company for most major retailers in the U.S.
The acquisitions present an opportunity unique to Gannett for ShopLocal to collaborate with another
Gannett company, PointRoll. ShopLocal has a rich database of retailers and creates digital
circulars. PointRoll can make these digital circulars interactive and broaden the distribution.
Working together, they can create an end-to-end solution for retailers and a richer shopping
environment for consumers.
* * * *
At the end of the quarter, Gannett had more than 100 domestic publishing Web sites, including
USATODAY.com, one of the most popular newspaper sites on the Web. The company also had Web sites
in all of its 19 television markets. In June, Gannetts consolidated domestic Internet audience
share was 23.1 million unique visitors reaching 14.1 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 95.0 million monthly page impressions from approximately 7.5 million unique
users.
(more)
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 Companys results in a more meaningful and consistent manner. A
reconciliation of the non-GAAP operating cash flow amounts to the Companys 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
companys Web site, www.gannett.com, or listen-only conference lines. U.S. callers should dial
1-888-220-8474 and international callers should dial 913-312-1377 at least 10 minutes prior to the
scheduled start of the call. The confirmation code for the conference call is 2764757. 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 2764757. Materials related to the call will
be available through the Investor Relations section of the companys Web site Wednesday morning.
Gannett Co., Inc. is a leading international news and information company that publishes 85
daily newspapers in the USA, including USA TODAY, the nations largest-selling daily newspaper. The
company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper
magazine. Gannett subsidiary Newsquest is the United Kingdoms second largest regional newspaper
company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of
prize-winning Web sites. Gannett also operates 23 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 companys SEC
reports, including the companys 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.
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For investor inquiries, contact:
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For media inquiries, contact: |
Jeffrey Heinz
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Tara Connell |
Director, Investor Relations
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Vice President of Corporate Communications |
703-854-6917
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703-854-6049 |
jheinz@gannett.com
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tjconnel@gannett.com |
# # #
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
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Thirteen weeks |
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Thirteen weeks |
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ended |
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ended |
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% Inc |
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June 29, 2008 |
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July 1, 2007 |
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(Dec) |
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Net Operating Revenues: |
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Publishing advertising |
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$ |
1,108,189 |
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$ |
1,281,555 |
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(13.5 |
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Publishing circulation |
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305,994 |
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312,506 |
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(2.1 |
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Broadcasting |
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192,568 |
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204,666 |
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(5.9 |
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All other |
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111,238 |
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113,908 |
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(2.3 |
) |
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Total |
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1,717,989 |
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1,912,635 |
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(10.2 |
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Operating Expenses: |
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Cost of sales and operating expenses, exclusive of depreciation |
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988,538 |
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1,052,476 |
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(6.1 |
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Selling, general and administrative expenses, exclusive of depreciation |
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299,539 |
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320,636 |
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(6.6 |
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Depreciation |
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57,936 |
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62,677 |
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(7.6 |
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Amortization of intangible assets |
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8,088 |
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8,855 |
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(8.7 |
) |
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Total |
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1,354,101 |
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1,444,644 |
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(6.3 |
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Operating income |
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363,888 |
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467,991 |
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(22.2 |
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Non-operating (expense) income: |
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Equity income (losses) in unconsolidated investees, net |
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7,850 |
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17,470 |
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(55.1 |
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Interest expense |
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(43,957 |
) |
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(66,400 |
) |
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(33.8 |
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Other non-operating items |
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5,340 |
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10,324 |
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(48.3 |
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Total |
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(30,767 |
) |
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(38,606 |
) |
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(20.3 |
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Income before income taxes |
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333,121 |
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429,385 |
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(22.4 |
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Provision for income taxes |
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100,400 |
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139,500 |
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(28.0 |
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Income from continuing operations |
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232,721 |
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289,885 |
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(19.7 |
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Income from the operation of discontinued operations, net of tax |
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1,963 |
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*** |
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Gain on disposal of newspaper businesses, net of tax |
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73,814 |
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*** |
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Net Income |
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$ |
232,721 |
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$ |
365,662 |
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(36.4 |
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Earnings from continuing operations per share basic |
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$ |
1.02 |
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$ |
1.24 |
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(17.7 |
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Discontinued operations per share basic |
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0.01 |
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*** |
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Gain on disposal of newspaper businesses per share basic |
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0.32 |
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*** |
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Net Income per share basic |
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$ |
1.02 |
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$ |
1.56 |
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(34.6 |
) |
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Earnings from continuing operations per share diluted |
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$ |
1.02 |
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$ |
1.24 |
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(17.7 |
) |
Discontinued operations per share diluted |
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0.01 |
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*** |
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Gain on disposal of newspaper businesses per share diluted |
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0.31 |
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*** |
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Net Income per share diluted |
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$ |
1.02 |
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$ |
1.56 |
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(34.6 |
) |
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Dividends per share |
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$ |
0.40 |
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$ |
0.31 |
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29.0 |
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To conform with current year presentation, the companys equity share of operating results for 2007 from its newspaper partnerships,
including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico
Newspapers Partnership, have been reclassified from All other revenue above and are reflected in a separate line in the
Non-Operating section of the Statements of Income titled Equity income (losses) in unconsolidated investees, net. All other
revenue is now comprised principally of commercial printing revenues and revenue from PointRoll.
Equity income (losses) in unconsolidated investees, net includes losses/earnings from newspaper partnerships, as discussed above, and
equity income and losses from online/new technology businesses which were previously classified in Other non-operating items.
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
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Twenty-six weeks |
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Twenty-six weeks |
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ended |
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ended |
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% Inc |
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June 29, 2008 |
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July 1, 2007 |
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(Dec) |
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Net Operating Revenues: |
|
|
|
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|
|
|
|
|
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Publishing advertising |
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$ |
2,205,083 |
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$ |
2,503,182 |
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(11.9 |
) |
Publishing circulation |
|
|
615,172 |
|
|
|
630,041 |
|
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(2.4 |
) |
Broadcasting |
|
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362,748 |
|
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|
387,725 |
|
|
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(6.4 |
) |
All other |
|
|
211,855 |
|
|
|
222,901 |
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(5.0 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
3,394,858 |
|
|
|
3,743,849 |
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|
|
(9.3 |
) |
|
|
|
|
|
|
|
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Operating Expenses: |
|
|
|
|
|
|
|
|
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|
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Cost of sales and operating expenses, exclusive of depreciation |
|
|
1,975,038 |
|
|
|
2,110,412 |
|
|
|
(6.4 |
) |
Selling, general and administrative expenses, exclusive of depreciation |
|
|
594,435 |
|
|
|
641,157 |
|
|
|
(7.3 |
) |
Depreciation |
|
|
117,538 |
|
|
|
124,862 |
|
|
|
(5.9 |
) |
Amortization of intangible assets |
|
|
16,328 |
|
|
|
17,710 |
|
|
|
(7.8 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
2,703,339 |
|
|
|
2,894,141 |
|
|
|
(6.6 |
) |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
691,519 |
|
|
|
849,708 |
|
|
|
(18.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (losses) in unconsolidated investees, net |
|
|
(3,905 |
) |
|
|
15,990 |
|
|
|
*** |
|
Interest expense |
|
|
(92,506 |
) |
|
|
(139,345 |
) |
|
|
(33.6 |
) |
Other non-operating items |
|
|
29,491 |
|
|
|
10,286 |
|
|
|
*** |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
(66,920 |
) |
|
|
(113,069 |
) |
|
|
(40.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
624,599 |
|
|
|
736,639 |
|
|
|
(15.2 |
) |
Provision for income taxes |
|
|
200,100 |
|
|
|
240,400 |
|
|
|
(16.8 |
) |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
424,499 |
|
|
|
496,239 |
|
|
|
(14.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from the operation of discontinued operations, net of tax |
|
|
|
|
|
|
6,221 |
|
|
|
*** |
|
Gain on disposal of newspaper businesses, net of tax |
|
|
|
|
|
|
73,814 |
|
|
|
*** |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
424,499 |
|
|
$ |
576,274 |
|
|
|
(26.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations per share basic |
|
$ |
1.86 |
|
|
$ |
2.12 |
|
|
|
(12.3 |
) |
Discontinued operations per share basic |
|
|
|
|
|
|
0.03 |
|
|
|
*** |
|
Gain on disposal of newspaper businesses per share basic |
|
|
|
|
|
|
0.31 |
|
|
|
*** |
|
|
|
|
|
|
|
|
|
|
|
Net Income per share basic |
|
$ |
1.86 |
|
|
$ |
2.46 |
|
|
|
(24.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations per share diluted |
|
$ |
1.85 |
|
|
$ |
2.11 |
|
|
|
(12.3 |
) |
Discontinued operations per share diluted |
|
|
|
|
|
|
0.03 |
|
|
|
*** |
|
Gain on disposal of newspaper businesses per share diluted |
|
|
|
|
|
|
0.31 |
|
|
|
*** |
|
|
|
|
|
|
|
|
|
|
|
Net Income per share diluted |
|
$ |
1.85 |
|
|
$ |
2.45 |
|
|
|
(24.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share |
|
$ |
0.80 |
|
|
$ |
0.62 |
|
|
|
29.0 |
|
|
|
|
|
|
|
|
|
|
|
To conform with current year presentation, the companys equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint
operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership, have been reclassified from All other revenue above and are reflected in a
separate line in the Non-Operating section of the Statements of Income titled Equity income (losses) in unconsolidated investees, net. All other revenue is now comprised
principally of commercial printing revenues and revenue from PointRoll.
Equity income (losses) in unconsolidated investees, net includes losses/earnings from newspaper partnerships, as discussed above, and equity income and losses from online/new
technology businesses which were previously classified in Other non-operating items.
PRELIMINARY BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Excluding discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks |
|
|
Thirteen weeks |
|
|
|
|
|
|
ended |
|
|
ended |
|
|
% Inc |
|
|
|
June 29, 2008 |
|
|
July 1, 2007 |
|
|
(Dec) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
1,525,421 |
|
|
$ |
1,707,969 |
|
|
|
(10.7 |
) |
Broadcasting |
|
|
192,568 |
|
|
|
204,666 |
|
|
|
(5.9 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,717,989 |
|
|
$ |
1,912,635 |
|
|
|
(10.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (net of depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
291,794 |
|
|
$ |
399,279 |
|
|
|
(26.9 |
) |
Broadcasting |
|
|
80,893 |
|
|
|
87,412 |
|
|
|
(7.5 |
) |
Corporate |
|
|
(8,799 |
) |
|
|
(18,700 |
) |
|
|
(52.9 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
363,888 |
|
|
$ |
467,991 |
|
|
|
(22.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
53,542 |
|
|
$ |
59,163 |
|
|
|
(9.5 |
) |
Broadcasting |
|
|
8,501 |
|
|
|
8,459 |
|
|
|
0.5 |
|
Corporate |
|
|
3,981 |
|
|
|
3,910 |
|
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
66,024 |
|
|
$ |
71,532 |
|
|
|
(7.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
345,336 |
|
|
$ |
458,442 |
|
|
|
(24.7 |
) |
Broadcasting |
|
|
89,394 |
|
|
|
95,871 |
|
|
|
(6.8 |
) |
Corporate |
|
|
(4,818 |
) |
|
|
(14,790 |
) |
|
|
(67.4 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
429,912 |
|
|
$ |
539,523 |
|
|
|
(20.3 |
) |
|
|
|
|
|
|
|
|
|
|
To conform with current year presentation, the companys equity share of operating results for 2007 from its newspaper partnerships,
including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico
Newspapers Partnership, have been reclassified from publishing revenues above and are reflected in a separate line in the
Non-Operating section of the Statements of Income titled Equity income (losses) in unconsolidated investees, net.
Broadcasting includes results from the companys 23 television stations and Captivate Network. Captivate is a national news
and entertainment network which delivers programming and full motion video advertising through wireless digital video screens
in elevators of office towers and select hotels across North America.
Operating Cash Flow represents operating income for each of the companys business segments plus related depreciation and
amortization. See attachment for reconciliation of amounts to the Consolidated Statements of Income.
PRELIMINARY BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Excluding discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks |
|
|
Twenty-six weeks |
|
|
|
|
|
|
ended |
|
|
ended |
|
|
% Inc |
|
|
|
June 29, 2008 |
|
|
July 1, 2007 |
|
|
(Dec) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
3,032,110 |
|
|
$ |
3,356,124 |
|
|
|
(9.7 |
) |
Broadcasting |
|
|
362,748 |
|
|
|
387,725 |
|
|
|
(6.4 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
3,394,858 |
|
|
$ |
3,743,849 |
|
|
|
(9.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (net of depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
577,326 |
|
|
$ |
739,887 |
|
|
|
(22.0 |
) |
Broadcasting |
|
|
138,698 |
|
|
|
151,574 |
|
|
|
(8.5 |
) |
Corporate |
|
|
(24,505 |
) |
|
|
(41,753 |
) |
|
|
(41.3 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
691,519 |
|
|
$ |
849,708 |
|
|
|
(18.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
108,921 |
|
|
$ |
117,474 |
|
|
|
(7.3 |
) |
Broadcasting |
|
|
16,996 |
|
|
|
17,182 |
|
|
|
(1.1 |
) |
Corporate |
|
|
7,949 |
|
|
|
7,916 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
133,866 |
|
|
$ |
142,572 |
|
|
|
(6.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
$ |
686,247 |
|
|
$ |
857,361 |
|
|
|
(20.0 |
) |
Broadcasting |
|
|
155,694 |
|
|
|
168,756 |
|
|
|
(7.7 |
) |
Corporate |
|
|
(16,556 |
) |
|
|
(33,837 |
) |
|
|
(51.1 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
825,385 |
|
|
$ |
992,280 |
|
|
|
(16.8 |
) |
|
|
|
|
|
|
|
|
|
|
To conform with current year presentation, the companys equity share of operating results for 2007 from its newspaper
partnerships,
including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the
Texas-New Mexico
Newspapers Partnership, have been reclassified from publishing revenues above and are reflected in a separate line in the
Non-Operating section of the Statements of Income titled Equity income (losses) in unconsolidated investees, net.
Broadcasting includes results from the companys 23 television stations and Captivate Network. Captivate is a national news
and entertainment network which delivers programming and full motion video advertising through wireless digital video screens
in elevators of office towers and select hotels across North America.
Operating Cash Flow represents operating income for each of the companys business segments plus related depreciation,
amortization. See attachment for reconciliation of amounts to the Consolidated Statements of Income.
PRELIMINARY NON-GAAP FINANCIAL INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Operating cash flow, a non-GAAP measure, is defined as operating income plus depreciation and amortization.
Management believes that use of this measure allows investors and management to measure, analyze and compare the
performance of its business segment operations at a more detailed level and in a meaningful and consistent manner.
A reconciliation of these non-GAAP amounts to the companys operating income, which the company believes is the
most directly comparable financial measure calculated and presented in accordance with GAAP on the companys
consolidated statements of income, follows:
Thirteen weeks ended June 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
|
Broadcasting |
|
|
Corporate |
|
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
345,336 |
|
|
$ |
89,394 |
|
|
$ |
(4,818 |
) |
|
$ |
429,912 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
(45,819 |
) |
|
|
(8,136 |
) |
|
|
(3,981 |
) |
|
|
(57,936 |
) |
Amortization |
|
|
(7,723 |
) |
|
|
(365 |
) |
|
|
|
|
|
|
(8,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
291,794 |
|
|
$ |
80,893 |
|
|
$ |
(8,799 |
) |
|
$ |
363,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended July 1, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
|
Broadcasting |
|
|
Corporate |
|
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
458,442 |
|
|
$ |
95,871 |
|
|
$ |
(14,790 |
) |
|
$ |
539,523 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
(50,673 |
) |
|
|
(8,094 |
) |
|
|
(3,910 |
) |
|
|
(62,677 |
) |
Amortization |
|
|
(8,490 |
) |
|
|
(365 |
) |
|
|
|
|
|
|
(8,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
399,279 |
|
|
$ |
87,412 |
|
|
$ |
(18,700 |
) |
|
$ |
467,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended June 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
|
Broadcasting |
|
|
Corporate |
|
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
686,247 |
|
|
$ |
155,694 |
|
|
$ |
(16,556 |
) |
|
$ |
825,385 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
(93,323 |
) |
|
|
(16,266 |
) |
|
|
(7,949 |
) |
|
|
(117,538 |
) |
Amortization |
|
|
(15,598 |
) |
|
|
(730 |
) |
|
|
|
|
|
|
(16,328 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
577,326 |
|
|
$ |
138,698 |
|
|
$ |
(24,505 |
) |
|
$ |
691,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended July 1, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing |
|
|
Broadcasting |
|
|
Corporate |
|
|
Consolidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
857,361 |
|
|
$ |
168,756 |
|
|
$ |
(33,837 |
) |
|
$ |
992,280 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
(100,501 |
) |
|
|
(16,445 |
) |
|
|
(7,916 |
) |
|
|
(124,862 |
) |
Amortization |
|
|
(16,973 |
) |
|
|
(737 |
) |
|
|
|
|
|
|
(17,710 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
739,887 |
|
|
$ |
151,574 |
|
|
$ |
(41,753 |
) |
|
$ |
849,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to the results reported in accordance with accounting principles generally accepted
in the United States (GAAP) included in this press release, the company has provided
information regarding diluted earnings per share (EPS) from continuing operations excluding
the pension curtailment gain and severance expenses. Management believes EPS excluding the
curtailment gain and severance expenses better reflects the ongoing performance of the company
and enables management and investors to meaningfully trend, analyze and benchmark the
performance of the companys operations. This measure is also more comparable to financial
measures reported by our competitors. EPS excluding the curtailment gain and severance
expenses should not be considered a substitute for EPS calculated in accordance with GAAP.
The table below reconciles earnings per share prepared in accordance with GAAP to earnings per
share excluding the pension curtailment gain and the severance expenses:
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks |
|
|
Thirteen weeks |
|
|
|
ended |
|
|
ended |
|
|
|
June 29, 2008 |
|
|
July 1, 2007 |
|
Diluted Earnings from Continuing Operations
per Share: |
|
|
|
|
|
|
|
|
Earnings per Share (GAAP basis) |
|
$ |
1.02 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
Pension curtailment gain |
|
|
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance expenses |
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Share (Non-GAAP basis) |
|
$ |
1.01 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
Filed by Bowne Pure Compliance
Exhibit 99.2
|
|
|
|
|
|
News Release
|
|
|
|
|
|
|
|
|
FOR IMMEDIATE RELEASE
|
|
Wednesday, July 16, 2008 |
Gannett Co., Inc. Releases June Statistical Report
McLEAN, VA Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating
revenues for the sixth period ended June 29, 2008 declined 12.1 percent compared with the same
period in 2007. For comparison purposes, the exchange rate of the British pound decreased slightly
compared to last year. If the exchange rate had remained constant year-over-year, total pro forma
operating revenues would have been 12.0 percent lower.
June
Publishing advertising revenues in June were down 16.3 percent compared with the same period a
year ago. On a constant currency basis publishing advertising revenues would have declined 16.1
percent.
Retail advertising revenues declined 9.6 percent in June. In the U.S., across all products,
the decline was led by softness in the department stores, furniture and telecommunications
categories.
Classified revenues were down 21.6 percent in the sixth period. Real estate revenues declined
33.9 percent, employment revenues were 25.6 percent lower and automotive revenues were down
13.9 percent. On a constant currency basis, real estate revenues would have declined 33.7 percent,
employment revenues would have been down 25.4 percent and automotive revenues would have been 13.7
percent lower. For U.S. community publishing, classified revenues were 22.5 percent lower in the
sixth period comprised of declines of 31.4 percent in real estate revenues, 30.4 percent in
employment revenues and 13.3 percent in automotive revenues. Classified revenues at our operations
in the UK were 19.3 percent lower, in pounds, reflecting declines of 36.8 percent in real estate,
17.3 percent in employment and 14.9 percent in automotive.
National advertising revenues for the sixth period were down 19.4 percent. At USA TODAY,
advertising revenues were 26.5 percent lower on paid ad pages of 236 versus 329 last year. At USA
TODAY, the travel, advocacy and restaurant categories were positive in the sixth period while the
entertainment, automotive, technology, financial, home and building and telecommunications
categories lagged last year.
Broadcasting revenues, which include Captivate, declined 7.9 percent. Television revenues
were 8.1 percent lower in the period as local and national revenues were down 10.8 percent and
8.5 percent, respectively.
Second Quarter
For the second quarter of 2008, total pro forma operating revenues were 10.1 percent lower and
would have declined 10.0 percent on a constant currency basis.
(more)
Publishing advertising revenues for the quarter declined 13.5 percent. Retail advertising
revenues were down 8.3 percent. Classified revenues were 18.7 percent lower for the quarter. Real
estate revenues declined 29.5 percent, employment revenues were down 23.2 percent and automotive
revenues declined 13.4 percent. Classified revenues were 21.0 percent lower for U.S. community
publishing comprised of declines of 30.4 percent in real estate, 28.9 percent in employment and
11.6 percent in automotive revenues. Classified revenues in the UK, in pounds, were 13.8 percent
lower in the quarter. Real estate revenues were 27.5 percent lower, employment revenues were down
10.7 percent and automotive revenues declined 18.7 percent.
National advertising revenues were 14.0 percent lower for the quarter. At USA TODAY,
advertising revenues were down 16.6 percent. Paid advertising pages totaled 831 compared with 1,034
in the year-ago period.
Broadcasting revenues declined 5.9 percent and television revenues were 6.5 percent lower in
the quarter. Significantly higher politically related advertising was offset by softness in other
categories, particularly automotive. Based on where we are today, we would expect television
revenues for the third quarter to be up in the mid to high single digits.
* * * *
In addition to the revenue and statistical summary, attached is a chart which shows the
consolidated Gannett Online audience share for June from Nielsen//Net Ratings. In June,
Gannetts domestic Web sites had 23.1 million unique visitors reaching 14.1 percent of the Internet
audience.
On May 7, 2007, the company completed its sale of the Norwich (CT) Bulletin, the Rockford (IL)
Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV. In
addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21,
2007. The revenue and statistical data related to these properties has been excluded from all
periods presented.
To conform with current year presentation, the companys equity share of operating results for
2007 from its newspaper partnerships, including Tucson, which participates in a joint operating
agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have
been reclassified from Other revenue and are reflected in a separate line in the Non-Operating
section of the Statement of Income titled Equity income (losses) in unconsolidated investees,
net. Other revenue is now comprised principally of commercial printing revenues and revenue from
PointRoll.
Circulation volume numbers for Newsquests 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.
(more)
Gannett Co., Inc. is a leading international news and information company that publishes 85
daily newspapers in the USA, including USA TODAY, the nations largest-selling daily
newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a
weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdoms second largest
regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers,
and a network of prize-winning Web sites. Gannett also operates 23 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 companys SEC
reports, including the companys 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 6 (June 2, 2008 - June 29, 2008) |
|
|
Year-to-Date through June 29, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
2008 |
|
|
2007 |
|
|
CHANGE |
|
|
CHANGE |
|
|
2008 |
|
|
2007 |
|
|
CHANGE |
|
|
CHANGE |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
156,982,000 |
|
|
$ |
173,624,000 |
|
|
$ |
(16,642,000 |
) |
|
|
(9.6 |
) |
|
$ |
984,219,000 |
|
|
$ |
1,070,451,000 |
|
|
$ |
(86,232,000 |
) |
|
|
(8.1 |
) |
National |
|
|
49,796,000 |
|
|
|
61,748,000 |
|
|
|
(11,952,000 |
) |
|
|
(19.4 |
) |
|
|
343,752,000 |
|
|
|
371,204,000 |
|
|
|
(27,452,000 |
) |
|
|
(7.4 |
) |
Classified |
|
|
143,508,000 |
|
|
|
183,020,000 |
|
|
|
(39,512,000 |
) |
|
|
(21.6 |
) |
|
|
877,113,000 |
|
|
|
1,061,662,000 |
|
|
|
(184,549,000 |
) |
|
|
(17.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Advertising |
|
$ |
350,286,000 |
|
|
$ |
418,392,000 |
|
|
$ |
(68,106,000 |
) |
|
|
(16.3 |
) |
|
$ |
2,205,084,000 |
|
|
$ |
2,503,317,000 |
|
|
$ |
(298,233,000 |
) |
|
|
(11.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Circulation |
|
|
98,291,000 |
|
|
|
100,768,000 |
|
|
|
(2,477,000 |
) |
|
|
(2.5 |
) |
|
|
615,172,000 |
|
|
|
630,040,000 |
|
|
|
(14,868,000 |
) |
|
|
(2.4 |
) |
Other revenue |
|
|
37,208,000 |
|
|
|
36,499,000 |
|
|
|
709,000 |
|
|
|
1.9 |
|
|
|
210,287,000 |
|
|
|
219,966,000 |
|
|
|
(9,679,000 |
) |
|
|
(4.4 |
) |
Broadcasting |
|
|
56,511,000 |
|
|
|
61,371,000 |
|
|
|
(4,860,000 |
) |
|
|
(7.9 |
) |
|
|
362,748,000 |
|
|
|
387,725,000 |
|
|
|
(24,977,000 |
) |
|
|
(6.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ |
542,296,000 |
|
|
$ |
617,030,000 |
|
|
$ |
(74,734,000 |
) |
|
|
(12.1 |
) |
|
$ |
3,393,291,000 |
|
|
$ |
3,741,048,000 |
|
|
$ |
(347,757,000 |
) |
|
|
(9.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PAID CIRCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morning (w/USAT) |
|
|
6,642,464 |
|
|
|
6,898,926 |
|
|
|
(256,462 |
) |
|
|
(3.7 |
) |
|
|
6,854,222 |
|
|
|
7,166,226 |
|
|
|
(312,004 |
) |
|
|
(4.4 |
) |
Evening |
|
|
425,407 |
|
|
|
453,763 |
|
|
|
(28,356 |
) |
|
|
(6.2 |
) |
|
|
442,687 |
|
|
|
469,370 |
|
|
|
(26,683 |
) |
|
|
(5.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Daily |
|
|
7,067,871 |
|
|
|
7,352,689 |
|
|
|
(284,818 |
) |
|
|
(3.9 |
) |
|
|
7,296,909 |
|
|
|
7,635,596 |
|
|
|
(338,687 |
) |
|
|
(4.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunday |
|
|
5,440,043 |
|
|
|
5,706,078 |
|
|
|
(266,035 |
) |
|
|
(4.7 |
) |
|
|
5,606,260 |
|
|
|
5,917,198 |
|
|
|
(310,938 |
) |
|
|
(5.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
To conform with current year presentation, the companys equity share of operating results
for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating
agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have
been reclassified from Other revenue above and are reflected in a separate line in the
Non-Operating section of the Statement of Income (Loss) titled Equity income (losses) in
unconsolidated investees, net. Other revenue is now comprised principally of commercial printing
revenues and revenue from PointRoll. |
The above revenue amounts and statistics have been restated to include all companies presently
owned. In May 2007, Gannett sold the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the
Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington, WV. In May 2007, Gannett
contributed the Chronicle-Tribune in Marion, IN to the Gannett Foundation. All revenue amounts and
statistics related to the sold and donated properties are excluded from all periods presented.
Circulation volume statistics from the companys newspaper in Tucson, which participates in a joint
operating agency, are included above.
Newsquest is a regional newspaper publisher in the United Kingdom with nearly 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquests 17
paid-for daily newspapers are included above. Circulation volume statistics for the Sunday Herald
are included above in the Sunday statistics. Circulation volume statistics for Newsquests unpaid
daily and non-daily publications are not reflected above.
Circulation volume statistics for non-daily products, including Gannett Healthcare Group and
Clipper Magazine are not reflected above.
Effective Period 5, 2008, due to certain changes in delivery times, Gannett has reclassified some
net paid circulation figures from evening to morning. All prior periods have been restated to
conform to the new classification.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2008 (March 31, 2008 June 29, 2008)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
2008 |
|
|
2007 |
|
|
CHANGE |
|
|
CHANGE |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
505,196,000 |
|
|
$ |
551,162,000 |
|
|
$ |
(45,966,000 |
) |
|
|
(8.3 |
) |
National |
|
|
168,934,000 |
|
|
|
196,364,000 |
|
|
|
(27,430,000 |
) |
|
|
(14.0 |
) |
Classified |
|
|
434,060,000 |
|
|
|
534,166,000 |
|
|
|
(100,106,000 |
) |
|
|
(18.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Advertising |
|
$ |
1,108,190,000 |
|
|
$ |
1,281,692,000 |
|
|
$ |
(173,502,000 |
) |
|
|
(13.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Circulation |
|
|
305,994,000 |
|
|
|
312,434,000 |
|
|
|
(6,440,000 |
) |
|
|
(2.1 |
) |
Other revenue |
|
|
110,807,000 |
|
|
|
112,436,000 |
|
|
|
(1,629,000 |
) |
|
|
(1.4 |
) |
Broadcasting |
|
|
192,568,000 |
|
|
|
204,666,000 |
|
|
|
(12,098,000 |
) |
|
|
(5.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ |
1,717,559,000 |
|
|
$ |
1,911,228,000 |
|
|
$ |
(193,669,000 |
) |
|
|
(10.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PAID CIRCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morning (w/USAT) |
|
|
6,827,566 |
|
|
|
7,088,188 |
|
|
|
(260,622 |
) |
|
|
(3.7 |
) |
Evening |
|
|
437,353 |
|
|
|
464,728 |
|
|
|
(27,375 |
) |
|
|
(5.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Daily |
|
|
7,264,919 |
|
|
|
7,552,916 |
|
|
|
(287,997 |
) |
|
|
(3.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunday |
|
|
5,535,334 |
|
|
|
5,804,055 |
|
|
|
(268,721 |
) |
|
|
(4.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
To conform with current year presentation, the companys equity share of operating results
for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating
agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have
been reclassified from Other revenue above and are reflected in a separate line in the
Non-Operating section of the Statement of Income (Loss) titled Equity income (losses) in
unconsolidated investees, net. Other revenue is now comprised principally of commercial printing
revenues and revenue from PointRoll. |
The above revenue amounts and statistics have been restated to include all companies presently
owned. In May 2007, Gannett sold the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the
Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington, WV. In May 2007, Gannett
contributed the Chronicle-Tribune in Marion, IN to the Gannett Foundation. All revenue amounts and
statistics related to the sold and donated properties are excluded from all periods presented.
Circulation volume statistics from the companys newspaper in Tucson, which participates in a joint
operating agency, are included above.
Newsquest is a regional newspaper publisher in the United Kingdom with nearly 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquests 17
paid-for daily newspapers are included above. Circulation volume statistics for the Sunday Herald
are included above in the Sunday statistics. Circulation volume statistics for Newsquests unpaid
daily and non-daily publications are not reflected above.
Circulation volume statistics for non-daily products, including Gannett Healthcare Group and
Clipper Magazine are not reflected above.
Effective Period 5, 2008, due to certain changes in delivery times, Gannett has reclassified some
net paid circulation figures from evening to morning. All prior periods have been restated to
conform to the new classification.
Gannett Online Internet Audience
June 2008
Nielsen//Net Ratings
Home/Work Panel Combined
|
|
|
|
|
|
|
|
|
|
|
Unique Visitors |
|
Percentage Reach of |
|
|
Per Month |
|
Internet Audience |
|
|
|
|
|
|
|
|
|
Gannett Online |
|
|
23,076,000 |
|
|
|
14.1 |
% |