Gannett Co., Inc. Reports 55% Increase in 2014 Fourth Quarter Non-GAAP Earnings per Share and 57% Increase in Adjusted EBITDA; Broadcasting and Digital Segments Achieve Record Revenues and Profit for the Quarter; Resumes Share Repurchase Program
Highlights for the quarter include the following:
-
Earnings totaled
$2.92 per diluted share,$1.02 per diluted share on non-GAAP basis - Overall company revenue growth of 24 percent, pro forma revenue growth of 4 percent, driven by strong Broadcast and Digital Segment results
- Record Broadcasting Segment revenue increased 117 percent, a 25 percent increase on a pro forma basis
- Record Digital Segment revenue increased 77 percent, a 10 percent increase on a pro forma basis
-
Adjusted EBITDA rose 57 percent to
$511 million also driven by strong Broadcasting and Digital Segment results -
Free Cash Flow grew to
$203 million , a 32 percent year-over-year increase
Martore continued, “The terrific progress we’ve made across each of our businesses since the launch of our transformation plan three years ago culminated in our biggest news of 2014 - the announcement of our plan to separate into two highly focused public companies. Each company will be a leader in its respective industry with impressive scale and greater freedom to focus its strategy and resources on the most promising, value-enhancing areas of the business. We are on track with the separation and will share more details of our plans for the Publishing and Broadcasting/Digital companies in the coming months.”
On
CONTINUING OPERATIONS
Operating revenues in the fourth quarter were up 24.3 percent compared
to the fourth quarter of 2013 and totaled
Net income attributable to
Special items in the fourth quarter of 2014 resulted in a gain of
The table below details fourth quarter results on a GAAP and non-GAAP basis.
Dollars in thousands, except per share amounts | |||||||||||||||||||||||
GAAP Measure | Special Items | Non-GAAP Measure | |||||||||||||||||||||
Thirteen | Other | Asset | Non- | Thirteen | |||||||||||||||||||
weeks ended | Workforce | transformation | impairment | operating | Special tax | weeks ended | |||||||||||||||||
Dec. 28, 2014 | restructuring | costs | charges | items | benefits | Dec. 28, 2014 | |||||||||||||||||
Operating income | $ | 341,018 | $ | 11,079 | $ | 40,935 | $ | 35,192 | $ | — | $ | — | $ | 428,224 | |||||||||
Equity income in unconsolidated investees, net |
532 | — | — | — | 4,805 | — | 5,337 | ||||||||||||||||
Other non-operating items | 445,134 | — | — | — | (444,045 | ) | — | 1,089 | |||||||||||||||
Income before income taxes | 713,167 | 11,079 | 40,935 | 35,192 | (439,240 | ) | — | 361,133 | |||||||||||||||
Provision for income taxes | 18,200 | 3,800 | 21,300 | 4,400 | (176,900 | ) | 236,600 | 107,400 | |||||||||||||||
Net income | 694,967 | 7,279 | 19,635 | 30,792 | (262,340 | ) | (236,600 | ) | 253,733 | ||||||||||||||
Net income attributable to Gannett Co., Inc. | 676,029 | 7,279 | 19,635 | 30,792 | (262,340 | ) | (236,600 | ) | 234,795 | ||||||||||||||
Net income per share - diluted (a) | $ | 2.92 | $ | 0.03 | $ | 0.08 | $ | 0.13 | $ | (1.13 | ) | $ | (1.02 | ) | $ | 1.02 | |||||||
(a) total per share does not sum due to rounding. | |||||||||||||||||||||||
Operating expenses including special charges noted above totaled
Total operating revenues for the full year were 16.4 percent higher
compared to 2013 and totaled
Operating expenses in 2014 were
BROADCASTING
Broadcasting Segment revenues were 117.0 percent higher in the quarter
compared to the fourth quarter last year and totaled a highest ever
The following table summarizes the year-over-year changes in select Broadcasting Segment revenue categories. Digital revenues are included in the “Other” category.
Broadcasting Revenue Detail | |||||||||
Dollars in thousands | |||||||||
Thirteen |
Percentage change from thirteen weeks |
||||||||
Reported | Pro Forma (a) | ||||||||
Core (Local & National) | $ | 275,945 | 63 | % | (7 | %) | |||
Political | 92,433 | *** | *** | ||||||
Retransmission (b) | 94,323 | 142 | % | 56 | % | ||||
Other | 32,568 | 123 | % | 13 | % | ||||
Total | $ | 495,269 | 117 | % | 25 | % |
(a) |
The pro forma amounts are presented as if the acquisitions of Belo Corp. and the London Broadcasting TV stations occurred at the beginning of 2013. |
|
(b) |
Reverse compensation to networks is included as part of programming costs and therefore not included in this line. |
|
On a pro forma basis, Broadcasting Segment revenues were up 25.0 percent
compared to the fourth quarter in 2013. Substantially higher
retransmission revenue that totaled
Non-GAAP operating expenses in the Broadcasting Segment on a pro forma
basis totaled
Based on current trends, we expect the percentage increase in total
television revenues for the first quarter of 2015 compared to the same
quarter in 2014 to be up in the low to mid-single digits despite very
difficult year-over-year comparisons. First quarter 2014 Broadcasting
revenue benefited from
PUBLISHING
Publishing Segment revenues in the quarter totaled
Advertising revenues declined 7.8 percent to
A summary of the year-over-year percentage change for each of the company's advertising categories can be found on Table 3.
Circulation revenues totaled
Pro forma Publishing Segment digital revenues increased 2.9 percent in the quarter reflecting continued growth in digital marketing solutions and digital advertising. Digital revenues at Newsquest were up 20.4 percent in local currency while digital revenues at USA TODAY and its associated businesses increased 8.4 percent. Pro forma digital advertising revenues at local domestic publishing operations were up 6.6 percent.
Pro forma non-GAAP Publishing Segment operating expenses were
Non-GAAP operating income was
DIGITAL
Digital Segment operating revenues totaled a record
Non-GAAP pro forma operating expenses were down 1.2 percent driven by
lower expenses at Cars.com and CareerBuilder. On the same basis, Digital
Segment operating income was 82.4 percent higher and totaled
Pro forma digital revenues company-wide, including the Digital Segment
and all digital revenues generated by the other business segments,
totaled
In December,
NON-OPERATING ITEMS
The company's equity earnings include its share of operating results
from unconsolidated investees including the
Equity income in unconsolidated investees declined
Interest expense totaled
Other non-operating items totaled
The company's taxes for the quarter reflect a special
Net cash flow from operating activities was
****
As previously announced, the company will hold an earnings conference
call at
About
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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||
Unaudited, in thousands (except per share amounts) |
|||||||||||
Table No. 1 | |||||||||||
Thirteen | Thirteen | ||||||||||
weeks ended | weeks ended | % Increase | |||||||||
Dec. 28, 2014 | Dec. 29, 2013 | (Decrease) | |||||||||
Net operating revenues: | |||||||||||
Broadcasting | $ | 495,269 | $ | 228,207 | 117.0 | ||||||
Publishing advertising | 543,795 | 589,555 | (7.8 | ) | |||||||
Publishing circulation | 281,997 | 288,434 | (2.2 | ) | |||||||
All other Publishing | 59,683 | 66,272 | (9.9 | ) | |||||||
Digital | 345,352 | 195,570 | 76.6 | ||||||||
Intersegment eliminations | (25,129 | ) | — | *** | |||||||
Total | 1,700,967 | 1,368,038 | 24.3 | ||||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 748,119 | 722,487 | 3.5 | ||||||||
Selling, general and administrative expenses, exclusive of depreciation | 483,361 | 341,451 | 41.6 | ||||||||
Depreciation | 49,573 | 37,615 | 31.8 | ||||||||
Amortization of intangible assets | 32,748 | 9,802 | *** | ||||||||
Facility consolidation and asset impairment charges | 46,148 | 43,077 | 7.1 | ||||||||
Total | 1,359,949 | 1,154,432 | 17.8 | ||||||||
Operating income | 341,018 | 213,606 | 59.6 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity income in unconsolidated investees, net | 532 | 14,895 | (96.4 | ) | |||||||
Interest expense | (73,517 | ) | (62,857 | ) | 17.0 | ||||||
Other non-operating items | 445,134 | (18,936 | ) | *** | |||||||
Total | 372,149 | (66,898 | ) | *** | |||||||
Income before income taxes | 713,167 | 146,708 | *** | ||||||||
Provision for income taxes | 18,200 | 41,500 | (56.1 | ) | |||||||
Net income | 694,967 | 105,208 | *** | ||||||||
Net income attributable to noncontrolling interests | (18,938 | ) | (14,461 | ) | 31.0 | ||||||
Net income attributable to Gannett Co., Inc. | $ | 676,029 | $ | 90,747 | *** | ||||||
Net income per share - basic | $ | 2.99 | $ | 0.40 | *** | ||||||
Net income per share - diluted | $ | 2.92 | $ | 0.39 | *** | ||||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 226,046 | 227,343 | (0.6 | ) | |||||||
Diluted | 231,157 | 232,585 | (0.6 | ) | |||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | — | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||
Unaudited, in thousands (except per share amounts) |
|||||||||||
Table No. 1 (continued) | |||||||||||
Fifty-two | Fifty-two | ||||||||||
weeks ended | weeks ended | % Increase | |||||||||
Dec. 28, 2014 | Dec. 29, 2013 | (Decrease) | |||||||||
Net operating revenues: | |||||||||||
Broadcasting | $ | 1,692,304 | $ | 835,113 | 102.6 | ||||||
Publishing advertising | 2,070,177 | 2,198,719 | (5.8 | ) | |||||||
Publishing circulation | 1,118,753 | 1,129,060 | (0.9 | ) | |||||||
All other Publishing | 232,799 | 250,025 | (6.9 | ) | |||||||
Digital | 919,270 | 748,445 | 22.8 | ||||||||
Intersegment eliminations | (25,129 | ) | — | *** | |||||||
Total | 6,008,174 | 5,161,362 | 16.4 | ||||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 3,048,579 | 2,882,449 | 5.8 | ||||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,539,476 | 1,291,858 | 19.2 | ||||||||
Depreciation | 185,868 | 153,203 | 21.3 | ||||||||
Amortization of intangible assets | 79,856 | 36,369 | *** | ||||||||
Facility consolidation and asset impairment charges | 96,364 | 58,240 | 65.5 | ||||||||
Total | 4,950,143 | 4,422,119 | 11.9 | ||||||||
Operating income | 1,058,031 | 739,243 | 43.1 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity income in unconsolidated investees, net | 167,319 | 43,824 | *** | ||||||||
Interest expense | (273,244 | ) | (176,064 | ) | 55.2 | ||||||
Other non-operating items | 403,954 | (47,890 | ) | *** | |||||||
Total | 298,029 | (180,130 | ) | *** | |||||||
Income before income taxes | 1,356,060 | 559,113 | *** | ||||||||
Provision for income taxes | 225,600 | 113,200 | 99.3 | ||||||||
Net income | 1,130,460 | 445,913 | *** | ||||||||
Net income attributable to noncontrolling interests | (68,289 | ) | (57,233 | ) | 19.3 | ||||||
Net income attributable to Gannett Co., Inc. | $ | 1,062,171 | $ | 388,680 | *** | ||||||
Net income per share - basic | $ | 4.69 | $ | 1.70 | *** | ||||||
Net income per share - diluted | $ | 4.58 | $ | 1.66 | *** | ||||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 226,292 | 228,541 | (1.0 | ) | |||||||
Diluted | 231,907 | 234,189 | (1.0 | ) | |||||||
Dividends declared per share | $ | 0.80 | $ | 0.80 | — | ||||||
BUSINESS SEGMENT INFORMATION | |||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||
Unaudited, in thousands of dollars |
|||||||||||
Table No. 2 | |||||||||||
Thirteen |
Thirteen | ||||||||||
weeks ended |
weeks ended | % Increase | |||||||||
Dec. 28, 2014 | Dec. 29, 2013 | (Decrease) | |||||||||
Net operating revenues: | |||||||||||
Broadcasting | $ | 495,269 | $ | 228,207 | 117.0 | ||||||
Publishing | 885,475 | 944,261 | (6.2 | ) | |||||||
Digital | 345,352 | 195,570 | 76.6 | ||||||||
Intersegment eliminations | (25,129 | ) | — | *** | |||||||
Total | $ | 1,700,967 | $ | 1,368,038 | 24.3 | ||||||
Operating income (net of depreciation, amortization and facility consolidation charges): | |||||||||||
Broadcasting | $ | 241,542 | $ | 96,337 | 150.7 | ||||||
Publishing | 69,656 | 105,624 | (34.1 | ) | |||||||
Digital | 47,621 | 27,333 | 74.2 | ||||||||
Corporate | (17,801 | ) | (15,688 | ) | 13.5 | ||||||
Total | $ | 341,018 | $ | 213,606 | 59.6 | ||||||
Depreciation, amortization and facility consolidation charges: | |||||||||||
Broadcasting | $ | 26,003 | $ | 8,657 | *** | ||||||
Publishing | 44,380 | 57,546 | (22.9 | ) | |||||||
Digital | 54,197 | 19,616 | *** | ||||||||
Corporate | 3,889 | 4,675 | (16.8 | ) | |||||||
Total | $ | 128,469 | $ | 90,494 | 42.0 | ||||||
Adjusted EBITDA (a): | |||||||||||
Broadcasting | $ | 268,895 | $ | 118,723 | 126.5 | ||||||
Publishing | 150,633 | 170,607 | (11.7 | ) | |||||||
Digital | 104,929 | 46,949 | *** | ||||||||
Corporate | (13,912 | ) | (10,610 | ) | 31.1 | ||||||
Total | $ | 510,545 | $ | 325,669 | 56.8 | ||||||
(a) |
"Adjusted EBITDA" is a non-GAAP measure used by 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. The definition of "Adjusted EBITDA" is provided in Table No. 5, along with reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. |
|
BUSINESS SEGMENT INFORMATION | |||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||
Unaudited, in thousands of dollars |
|||||||||||
Table No. 2 (continued) | |||||||||||
Fifty-two | Fifty-two | ||||||||||
weeks ended | weeks ended | % Increase | |||||||||
Dec. 28, 2014 | Dec. 29, 2013 | (Decrease) | |||||||||
Net operating revenues: | |||||||||||
Broadcasting | $ | 1,692,304 | $ | 835,113 | 102.6 | ||||||
Publishing | 3,421,729 | 3,577,804 | (4.4 | ) | |||||||
Digital | 919,270 | 748,445 | 22.8 | ||||||||
Intersegment eliminations | (25,129 | ) | — | *** | |||||||
Total | $ | 6,008,174 | $ | 5,161,362 | 16.4 | ||||||
Operating income (net of depreciation, amortization and facility consolidation and asset impairment charges): | |||||||||||
Broadcasting | $ | 745,383 | $ | 361,915 | 106.0 | ||||||
Publishing | 228,307 | 313,697 | (27.2 | ) | |||||||
Digital | 155,482 | 128,264 | 21.2 | ||||||||
Corporate | (71,141 | ) | (64,633 | ) | 10.1 | ||||||
Total | $ | 1,058,031 | $ | 739,243 | 43.1 | ||||||
Depreciation, amortization and facility consolidation and asset impairment charges: | |||||||||||
Broadcasting | $ | 94,125 | $ | 29,625 | *** | ||||||
Publishing | 167,134 | 153,380 | 9.0 | ||||||||
Digital | 81,974 | 46,415 | 76.6 | ||||||||
Corporate | 18,855 | 18,392 | 2.5 | ||||||||
Total | $ | 362,088 | $ | 247,812 | 46.1 | ||||||
Adjusted EBITDA (a): | |||||||||||
Broadcasting | $ | 843,198 | $ | 405,908 | 107.7 | ||||||
Publishing | 459,084 | 510,214 | (10.0 | ) | |||||||
Digital | 240,567 | 174,679 | 37.7 | ||||||||
Corporate | (52,286 | ) | (45,838 | ) | 14.1 | ||||||
Total | $ | 1,490,563 | $ | 1,044,963 | 42.6 | ||||||
(a) |
"Adjusted EBITDA" is a non-GAAP measure used by 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. The definition of "Adjusted EBITDA" is provided in Table No. 5, along with reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. |
|
PUBLISHING SEGMENT REVENUE COMPARISONS |
Gannett Co., Inc. and Subsidiaries |
Unaudited |
Table No. 3 |
The following percentage changes for the Publishing Segment advertising and classified revenue categories are presented on a pro forma basis. See Table No. 8 for more information. |
Fourth quarter 2014 year-over-year comparisons: | |||||||||
U.S. | Total | ||||||||
Publishing | Newsquest | Publishing | |||||||
(including USA TODAY) | (in pounds) | Segment | |||||||
Retail | (7.7 | %) | (1.9 | %) | (7.4 | %) | |||
National | (20.8 | %) | (5.2 | %) | (19.8 | %) | |||
Classified: | |||||||||
Automotive | (0.4 | %) | (5.6 | %) | (1.2 | %) | |||
Employment | 0.8 | % | 5.0 | % | 1.5 | % | |||
Real Estate | (2.3 | %) | (8.6 | %) | (5.3 | %) | |||
Legal | 1.1 | % | — | % | 1.1 | % | |||
Other | (5.2 | %) | (7.6 | %) | (6.5 | %) | |||
Total classified | (1.5 | %) | (4.0 | %) | (2.5 | %) | |||
Total advertising | (8.7 | %) | (3.3 | %) | (8.3 | %) | |||
Year-to-date 2014 year-over-year comparisons: | |||||||||
U.S. | Total | ||||||||
Publishing | Newsquest | Publishing | |||||||
(including USA TODAY) | (in pounds) | Segment | |||||||
Retail | (6.3 | %) | (2.1 | %) | (5.4 | %) | |||
National | (14.3 | %) | (4.2 | %) | (13.2 | %) | |||
Classified: | |||||||||
Automotive | (1.7 | %) | (5.7 | %) | (1.6 | %) | |||
Employment | (3.8 | %) | 7.3 | % | 0.8 | % | |||
Real Estate | (4.2 | %) | (9.0 | %) | (3.9 | %) | |||
Legal | (3.8 | %) | — | % | (3.8 | %) | |||
Other | (7.7 | %) | (6.4 | %) | (5.6 | %) | |||
Total classified | (4.0 | %) | (3.1 | %) | (2.5 | %) | |||
Total advertising | (7.1 | %) | (2.8 | %) | (5.8 | %) | |||
USE OF NON-GAAP INFORMATION
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the related GAAP measures, and should be read together with financial information presented on a GAAP basis.
The company discusses in this report non-GAAP financial performance measures that exclude from its reported GAAP results the impact of special items consisting of workforce restructuring charges, transformation costs, non-cash asset impairment charges, certain gains and expenses recognized in non-operating categories and certain credits and charges to its income tax provision. The company believes that such expenses, charges, gains and credits are not indicative of normal, ongoing operations and their inclusion in results makes for more difficult comparisons between years and with peer group companies.
The company also discusses Adjusted EBITDA, a non-GAAP financial
performance measure that it believes offers a useful view of the overall
operation of its businesses. Adjusted EBITDA is defined as net income
attributable to
Management uses non-GAAP financial performance measures for purposes of evaluating business unit and consolidated company performance. The company therefore believes that each of the non-GAAP measures presented provides useful information to investors by allowing them to view the company’s businesses through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods and providing a focus on the underlying ongoing operating performance of its businesses. In addition, many of the company’s peer group companies present similar non-GAAP measures so the presentation of such measures facilitates industry comparisons. Tabular reconciliations for the non-GAAP financial measures are contained in Tables 4 through 8 attached to this news release.
NON-GAAP FINANCIAL INFORMATION | |
Gannett Co., Inc. and Subsidiaries |
|
Unaudited, in thousands of dollars (except per share amounts) |
|
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures are not to be considered in isolation from or as a substitute for the related GAAP measures and should be read only in conjunction with financial information presented on a GAAP basis. | |
Tables No. 4 through No. 8 reconcile these non-GAAP measures to the most directly comparable GAAP measure. |
Table No. 4 | ||||||||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP |
||||||||||||||||||||||||||
Thirteen | Other | Asset |
|
|
Thirteen | |||||||||||||||||||||||
weeks ended | Workforce | transformation | impairment |
Non-operating |
Special tax |
weeks ended | ||||||||||||||||||||||
Dec. 28, 2014 | restructuring | costs | charges | items | benefits | Dec. 28, 2014 | ||||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | $ | 748,119 | $ | (8,820 | ) | $ | (1,459 | ) | $ | — | $ | — | $ | — | $ | 737,840 | ||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 483,361 | (2,259 | ) | (28,520 | ) | — | — | — | 452,582 | |||||||||||||||||||
Facility consolidation and asset impairment charges | 46,148 | — | (10,956 | ) | (35,192 | ) | — | — | — | |||||||||||||||||||
Operating expenses | 1,359,949 | (11,079 | ) | (40,935 | ) | (35,192 | ) | — | — | 1,272,743 | ||||||||||||||||||
Operating income | 341,018 | 11,079 | 40,935 | 35,192 | — | — | 428,224 | |||||||||||||||||||||
Equity income in unconsolidated investees, net | 532 | — | — | — | 4,805 | — | 5,337 | |||||||||||||||||||||
Other non-operating items | 445,134 | — | — | — | (444,045 | ) | — | 1,089 | ||||||||||||||||||||
Total non-operating (expense) income | 372,149 | — | — | — | (439,240 | ) | — | (67,091 | ) | |||||||||||||||||||
Income before income taxes | 713,167 | 11,079 | 40,935 | 35,192 | (439,240 | ) | — | 361,133 | ||||||||||||||||||||
Provision for income taxes | 18,200 | 3,800 | 21,300 | 4,400 | (176,900 | ) | 236,600 | 107,400 | ||||||||||||||||||||
Net income | 694,967 | 7,279 | 19,635 | 30,792 | (262,340 | ) | (236,600 | ) | 253,733 | |||||||||||||||||||
Net income attributable to Gannett Co., Inc. | 676,029 | 7,279 | 19,635 | 30,792 | (262,340 | ) | (236,600 | ) | 234,795 | |||||||||||||||||||
Net income per share - diluted (a) | $ | 2.92 | $ | 0.03 | $ | 0.08 | $ | 0.13 | $ | (1.13 | ) | $ | (1.02 | ) | $ | 1.02 | ||||||||||||
GAAP
Measure |
Special Items |
Non-GAAP
Measure |
||||||||||||||||||||||||||
Thirteen | Other | Asset | Thirteen | |||||||||||||||||||||||||
weeks ended | Workforce | transformation | impairment | Non-operating | weeks ended | |||||||||||||||||||||||
Dec. 29, 2013 | restructuring | costs | charges | items | Dec. 29, 2013 | |||||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | $ | 722,487 | $ | (7,164 | ) | $ | — | $ | — | $ | — | $ | 715,323 | |||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 341,451 | (14,405 | ) | — | — | — | 327,046 | |||||||||||||||||||||
Facility consolidation and asset impairment charges | 43,077 | — | (10,081 | ) | (32,996 | ) | — | — | ||||||||||||||||||||
Operating expenses | 1,154,432 | (21,569 | ) | (10,081 | ) | (32,996 | ) | — | 1,089,786 | |||||||||||||||||||
Operating income | 213,606 | 21,569 | 10,081 | 32,996 | — | 278,252 | ||||||||||||||||||||||
Other non-operating items | (18,936 | ) | — | — | — | 20,985 | 2,049 | |||||||||||||||||||||
Total non-operating (expense) income | (66,898 | ) | — | — | — | 20,985 | (45,913 | ) | ||||||||||||||||||||
Income before income taxes | 146,708 | 21,569 | 10,081 | 32,996 | 20,985 | 232,339 | ||||||||||||||||||||||
Provision for income taxes | 41,500 | 6,400 | 4,100 | 13,300 | 100 | 65,400 | ||||||||||||||||||||||
Net income | 105,208 | 15,169 | 5,981 | 19,696 | 20,885 | 166,939 | ||||||||||||||||||||||
Net income attributable to Gannett Co., Inc. | 90,747 | 15,169 | 5,981 | 19,696 | 20,885 | 152,478 | ||||||||||||||||||||||
Net income per share - diluted | $ | 0.39 | $ | 0.07 | $ | 0.03 | $ | 0.08 | $ | 0.09 | $ | 0.66 | ||||||||||||||||
(a) Total per share amount does not sum due to rounding. | ||||||||||||||||||||||||||||
NON-GAAP FINANCIAL INFORMATION |
||||||||||||||||||||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||||||||||||||||||||
Unaudited, in thousands of dollars (except per share amounts) |
||||||||||||||||||||||||||||
Table No. 4 (continued) | ||||||||||||||||||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||||||
Fifty-two |
Workforce |
Other |
Asset |
Non-operating |
Special tax |
Fifty-two
weeks ended Dec. 28, 2014 |
||||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | $ | 3,048,579 | $ | (34,975 | ) | $ | (1,459 | ) | $ | — | $ | — | $ | — | $ | 3,012,145 | ||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,539,476 | (5,490 | ) | (28,520 | ) | — | — | — | 1,505,466 | |||||||||||||||||||
Amortization of intangible assets | 79,856 | — | (4,480 | ) | — | — | — | 75,376 | ||||||||||||||||||||
Facility consolidation and asset impairment charges | 96,364 | — | (44,985 | ) | (51,379 | ) | — | — | — | |||||||||||||||||||
Operating expenses | 4,950,143 | (40,465 | ) | (79,444 | ) | (51,379 | ) | — | — | 4,778,855 | ||||||||||||||||||
Operating income | 1,058,031 | 40,465 | 79,444 | 51,379 | — | — | 1,229,319 | |||||||||||||||||||||
Equity income in unconsolidated investees, net | 167,319 | — | — | — | (137,198 | ) | — | 30,121 | ||||||||||||||||||||
Other non-operating items | 403,954 | — | — | — | (404,674 | ) | — | (720 | ) | |||||||||||||||||||
Total non-operating (expense) income | 298,029 | — | — | — | (541,872 | ) | — | (243,843 | ) | |||||||||||||||||||
Income before income taxes | 1,356,060 | 40,465 | 79,444 | 51,379 | (541,872 | ) | — | 985,476 | ||||||||||||||||||||
Provision for income taxes | 225,600 | 14,600 | 35,800 | 5,200 | (216,600 | ) | 218,400 | 283,000 | ||||||||||||||||||||
Net income | 1,130,460 | 25,865 | 43,644 | 46,179 | (325,272 | ) | (218,400 | ) | 702,476 | |||||||||||||||||||
Net income attributable to Gannett Co., Inc. | 1,062,171 | 25,865 | 43,644 | 46,179 | (325,272 | ) | (218,400 | ) | 634,187 | |||||||||||||||||||
Net income per share - diluted (a) | $ | 4.58 | $ | 0.11 | $ | 0.19 | $ | 0.20 | $ | (1.40 | ) | $ | (0.94 | ) | $ | 2.73 | ||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||||||
Fifty-two |
Workforce |
Other |
Asset |
Non-operating |
Special tax |
Fifty-two |
||||||||||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | $ | 2,882,449 | $ | (36,856 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2,845,593 | |||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,291,858 | (21,052 | ) | — | — | — | — | 1,270,806 | ||||||||||||||||||||
Facility consolidation and asset impairment charges | 58,240 | — | (25,244 | ) | (32,996 | ) | — | — | — | |||||||||||||||||||
Operating expenses | 4,422,119 | (57,908 | ) | (25,244 | ) | (32,996 | ) | — | — | 4,305,971 | ||||||||||||||||||
Operating income | 739,243 | 57,908 | 25,244 | 32,996 | — | — | 855,391 | |||||||||||||||||||||
Equity income in unconsolidated investees, net | 43,824 | — | — | — | 731 | — | 44,555 | |||||||||||||||||||||
Other non-operating items | (47,890 | ) | — | — | — | 54,486 | — | 6,596 | ||||||||||||||||||||
Total non-operating (expense) income | (180,130 | ) | — | — | — | 55,217 | — | (124,913 | ) | |||||||||||||||||||
Income before income taxes | 559,113 | 57,908 | 25,244 | 32,996 | 55,217 | — | 730,478 | |||||||||||||||||||||
Provision for income taxes | 113,200 | 20,700 | 10,100 | 13,300 | 14,700 | 27,800 | 199,800 | |||||||||||||||||||||
Net income | 445,913 | 37,208 | 15,144 | 19,696 | 40,517 | (27,800 | ) | 530,678 | ||||||||||||||||||||
Net income attributable to Gannett Co., Inc. | 388,680 | 37,208 | 15,144 | 19,696 | 40,517 | (27,800 | ) | 473,445 | ||||||||||||||||||||
Net income per share - diluted (a) | $ | 1.66 | $ | 0.16 | $ | 0.06 | $ | 0.08 | $ | 0.17 | $ | (0.12 | ) | $ | 2.02 | |||||||||||||
(a) Total per share amount does not sum due to rounding. | ||||||||||||||||||||||||||||
NON-GAAP FINANCIAL INFORMATION |
Gannett Co., Inc. and Subsidiaries |
Unaudited, in thousands of dollars |
Table No. 5 |
"Adjusted EBITDA", a non-GAAP measure, is defined as net income attributable to Gannett before (1) net income attributable to noncontrolling interests, (2) income taxes, (3) interest expense, (4) equity income, (5) other non-operating items, (6) workforce restructuring, (7) other transformation costs, (8) asset impairment charges (9) depreciation and (10) amortization. When Adjusted EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to Adjusted EBITDA is Net income. Management does not analyze non-operating items such as interest expense and income taxes on a segment level; therefore, the most directly comparable GAAP financial measure to Adjusted EBITDA when performance is discussed on a segment level is Operating income. 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. |
Reconciliations of Adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income, follow: |
Thirteen weeks ended Dec. 28, 2014: | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||
Broadcasting | Publishing | Digital | Corporate | Total | ||||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ | 676,029 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 18,938 | |||||||||||||||||||
Provision for income taxes | 18,200 | |||||||||||||||||||
Interest expense | 73,517 | |||||||||||||||||||
Equity income in unconsolidated investees, net | (532 | ) | ||||||||||||||||||
Other non-operating items | (445,134 | ) | ||||||||||||||||||
Operating income (GAAP basis) | $ | 241,542 | $ | 69,656 | $ | 47,621 | $ | (17,801 | ) | $ | 341,018 | |||||||||
Workforce restructuring | 1,350 | 6,618 | 3,111 | — | 11,079 | |||||||||||||||
Other transformation costs | 4,105 | 36,830 | — | — | 40,935 | |||||||||||||||
Asset impairment charges | — | 11,492 | 23,700 | — | 35,192 | |||||||||||||||
Adjusted operating income (non-GAAP basis) | 246,997 | 124,596 | 74,432 | (17,801 | ) | 428,224 | ||||||||||||||
Depreciation | 15,858 | 22,312 | 7,514 | 3,889 | 49,573 | |||||||||||||||
Amortization | 6,040 | 3,725 | 22,983 | — | 32,748 | |||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 268,895 | $ | 150,633 | $ | 104,929 | $ | (13,912 | ) | $ | 510,545 | |||||||||
Thirteen weeks ended Dec. 29, 2013: | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||
Broadcasting | Publishing | Digital | Corporate | Total | ||||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ | 90,747 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 14,461 | |||||||||||||||||||
Provision for income taxes | 41,500 | |||||||||||||||||||
Interest expense | 62,857 | |||||||||||||||||||
Equity income in unconsolidated investees, net | (14,895 | ) | ||||||||||||||||||
Other non-operating items | 18,936 | |||||||||||||||||||
Operating income (GAAP basis) | $ | 96,337 | $ | 105,624 | $ | 27,333 | $ | (15,688 | ) | $ | 213,606 | |||||||||
Workforce restructuring | 13,729 | 7,437 | — | 403 | 21,569 | |||||||||||||||
Other transformation costs | 894 | 9,187 | — | — | 10,081 | |||||||||||||||
Asset impairment charges | — | 21,382 | 11,614 | — | 32,996 | |||||||||||||||
Adjusted operating income (non-GAAP basis) | 110,960 | 143,630 | 38,947 | (15,285 | ) | 278,252 | ||||||||||||||
Depreciation | 5,836 | 22,821 | 4,283 | 4,675 | 37,615 | |||||||||||||||
Amortization | 1,927 | 4,156 | 3,719 | — | 9,802 | |||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 118,723 | $ | 170,607 | $ | 46,949 | $ | (10,610 | ) | $ | 325,669 | |||||||||
NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||
Gannett Co., Inc. and Subsidiaries |
||||||||||||||||||||
Unaudited, in thousands of dollars |
||||||||||||||||||||
Table No. 5 (continued) | ||||||||||||||||||||
Fifty-two weeks ended Dec. 28, 2014: | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||
Broadcasting | Publishing | Digital | Corporate | Total | ||||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ | 1,062,171 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 68,289 | |||||||||||||||||||
Provision for income taxes | 225,600 | |||||||||||||||||||
Interest expense | 273,244 | |||||||||||||||||||
Equity income in unconsolidated investees, net | (167,319 | ) | ||||||||||||||||||
Other non-operating items | (403,954 | ) | ||||||||||||||||||
Operating income (GAAP basis) | $ | 745,383 | $ | 228,307 | $ | 155,482 | $ | (71,141 | ) | $ | 1,058,031 | |||||||||
Workforce restructuring | 3,690 | 33,664 | 3,111 | — | 40,465 | |||||||||||||||
Other transformation costs | 18,200 | 61,244 | — | — | 79,444 | |||||||||||||||
Asset impairment charges | — | 27,679 | 23,700 | — | 51,379 | |||||||||||||||
Adjusted operating income (non-GAAP basis) | 767,273 | 350,894 | 182,293 | (71,141 | ) | 1,229,319 | ||||||||||||||
Depreciation | 51,811 | 92,946 | 22,256 | 18,855 | 185,868 | |||||||||||||||
Adjusted amortization (non-GAAP basis) | 24,114 | 15,244 | 36,018 | — | 75,376 | |||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 843,198 | $ | 459,084 | $ | 240,567 | $ | (52,286 | ) | $ | 1,490,563 | |||||||||
Fifty-two weeks ended Dec. 29, 2013: | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||
Broadcasting | Publishing | Digital | Corporate | Total | ||||||||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) |
$ | 388,680 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 57,233 | |||||||||||||||||||
Provision for income taxes | 113,200 | |||||||||||||||||||
Interest expense | 176,064 | |||||||||||||||||||
Equity income in unconsolidated investees, net | (43,824 | ) | ||||||||||||||||||
Other non-operating items | 47,890 | |||||||||||||||||||
Operating income (GAAP basis) | $ | 361,915 | $ | 313,697 | $ | 128,264 | $ | (64,633 | ) | $ | 739,243 | |||||||||
Workforce restructuring | 14,368 | 43,137 | — | 403 | 57,908 | |||||||||||||||
Other transformation costs | 1,033 | 24,211 | — | — | 25,244 | |||||||||||||||
Asset impairment charges | — | 21,382 | 11,614 | — | 32,996 | |||||||||||||||
Adjusted operating income (non-GAAP basis) | 377,316 | 402,427 | 139,878 | (64,230 | ) | 855,391 | ||||||||||||||
Depreciation | 26,130 | 91,122 | 17,559 | 18,392 | 153,203 | |||||||||||||||
Amortization | 2,462 | 16,665 | 17,242 | — | 36,369 | |||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 405,908 | $ | 510,214 | $ | 174,679 | $ | (45,838 | ) | $ | 1,044,963 | |||||||||
NON-GAAP FINANCIAL INFORMATION | |
Gannett Co., Inc. and Subsidiaries |
|
Unaudited, in thousands of dollars |
|
Table No. 6 | |
"Free cash flow" is a non-GAAP liquidity measure used in addition to and in conjunction with results presented in accordance with GAAP. Free cash flow should not be relied upon to the exclusion of GAAP financial measures. | |
Free cash flow is defined as "Net cash flow from operating activities" as reported on the statement of cash flows reduced by "Purchase of property, plant and equipment" as well as "Payments for investments" and increased by "Proceeds from investments." The company believes that free cash flow is a useful measure for management and investors to evaluate the level of cash generated by operations and the ability of its operations to fund investments in new and existing businesses, return cash to shareholders under the company's capital program, repay indebtedness, add to the company's cash balance, or to use in other discretionary activities. Management uses free cash flow to monitor cash available for repayment of indebtedness and in its discussions with the investment community. | |
Thirteen | Fifty-two | |||||||
weeks ended | weeks ended | |||||||
Dec. 28, 2014 | Dec. 28, 2014 | |||||||
Net cash flow from operating activities | $ | 248,598 | $ | 821,199 | ||||
Purchase of property, plant and equipment | (58,795 | ) | (150,354 | ) | ||||
Payments for investments | (1,708 | ) | (7,026 | ) | ||||
Proceeds from investments | 14,558 | 180,809 | ||||||
Free cash flow | $ | 202,653 | $ | 844,628 | ||||
TAX RATE CALCULATION |
Gannett Co., Inc. and Subsidiaries |
Unaudited, in thousands of dollars |
Table No. 7 |
The calculations of the company's effective tax rate on a GAAP and non-GAAP basis are below: |
GAAP | Non-GAAP | |||||||||||||||
Thirteen weeks ended Dec. 28, 2014 |
Thirteen weeks ended Dec. 29, 2013 |
Thirteen weeks ended Dec. 28, 2014 |
Thirteen weeks ended Dec. 29, 2013 |
|||||||||||||
Income before taxes (per Table 4) | $ | 713,167 | $ | 146,708 | $ | 361,133 | $ | 232,339 | ||||||||
Noncontrolling interests (per Table 1) | (18,938 | ) | (14,461 | ) | (18,938 | ) | (14,461 | ) | ||||||||
Income before taxes attributable to Gannett Co., Inc. | $ | 694,229 | $ | 132,247 | $ | 342,195 | $ | 217,878 | ||||||||
Provision for income taxes (per Table 4) | $ | 18,200 | $ | 41,500 | $ | 107,400 | $ | 65,400 | ||||||||
Effective tax rate | 2.6 | % | 31.4 | % | 31.4 | % | 30.0 | % | ||||||||
GAAP | Non-GAAP | |||||||||||||||
Fifty-two weeks ended Dec. 28, 2014 |
Fifty-two weeks ended Dec. 29, 2013 |
Fifty-two weeks ended Dec. 28, 2014 |
Fifty-two weeks ended Dec. 29, 2013 |
|||||||||||||
Income before taxes (per Table 4) | $ | 1,356,060 | $ | 559,113 | $ | 985,476 | $ | 730,478 | ||||||||
Noncontrolling interests (per Table 1) | (68,289 | ) | (57,233 | ) | (68,289 | ) | (57,233 | ) | ||||||||
Income before taxes attributable to Gannett Co., Inc. | $ | 1,287,771 | $ | 501,880 | $ | 917,187 | $ | 673,245 | ||||||||
Provision for income taxes (per Table 4) | $ | 225,600 | $ | 113,200 | $ | 283,000 | $ | 199,800 | ||||||||
Effective tax rate | 17.5 | % | 22.6 | % | 30.9 | % | 29.7 | % | ||||||||
NON-GAAP FINANCIAL INFORMATION |
Gannett Co., Inc. and Subsidiaries |
Unaudited, in thousands of dollars |
Table No. 8 |
A reconciliation of the company's revenues and expenses on an as reported basis to a pro forma basis is below: |
Thirteen weeks ended Dec. 29, 2013: | |||||||||||||||
Gannett |
Special |
Pro forma |
Gannett |
||||||||||||
Broadcasting operating revenue: | |||||||||||||||
Local/national | $ | 169,273 | $ | — | $ | 127,112 | $ | 296,385 | |||||||
Political | 5,375 | — | 5,567 | 10,942 | |||||||||||
Retransmission | 38,933 | — | 21,413 | 60,346 | |||||||||||
Other | 14,626 | — | 14,070 | 28,696 | |||||||||||
Total broadcasting operating revenue | 228,207 | — | 168,162 | 396,369 | |||||||||||
Broadcasting operating expenses | 131,870 | (14,623 | ) | 124,376 | 241,623 | ||||||||||
Broadcasting operating income | $ | 96,337 | $ | 14,623 | $ | 43,786 | $ | 154,746 | |||||||
Gannett |
Special |
Pro forma |
Gannett |
||||||||||||
Publishing operating revenue: | |||||||||||||||
Advertising | $ | 589,555 | $ | — | $ | 2,851 | $ | 592,406 | |||||||
Circulation | 288,434 | — | — | 288,434 | |||||||||||
Other | 66,272 | — | (6,165 | ) | 60,107 | ||||||||||
Total publishing operating revenue | 944,261 | — | (3,314 | ) | 940,947 | ||||||||||
Publishing operating expenses | 838,637 | (38,006 | ) | (3,144 | ) | 797,487 | |||||||||
Publishing operating income | $ | 105,624 | $ | 38,006 | $ | (170 | ) | $ | 143,460 | ||||||
Gannett |
Special |
Pro forma |
Gannett |
||||||||||||
Digital operating revenue | $ | 195,570 | $ | — | $ | 119,317 | $ | 314,887 | |||||||
Digital operating expenses | 168,237 | (11,614 | ) | 117,468 | 274,091 | ||||||||||
Digital operating income | $ | 27,333 | $ | 11,614 | $ | 1,849 | $ | 40,796 | |||||||
Gannett |
Special |
Pro forma |
Gannett |
||||||||||||
Intersegment elimination operating revenue | $ | — | $ | — | $ | (19,096 | ) | $ | (19,096 | ) | |||||
Intersegment elimination operating expenses | — | — | (19,096 | ) | (19,096 | ) | |||||||||
Intersegment elimination operating income | $ | — | $ | — | $ | — | $ | — | |||||||
NON-GAAP FINANCIAL INFORMATION | |||||||||||||
Gannett Co., Inc. and Subsidiaries |
|||||||||||||
Unaudited, in thousands of dollars |
|||||||||||||
Table No. 8 (continued) | |||||||||||||
Gannett |
Special items (a) |
Pro forma |
Gannett pro forma |
||||||||||
Company-wide operating revenue | $ | 1,368,038 | $ | — | $ | 265,069 | $ | 1,633,107 | |||||
Company-wide operating expenses | 1,154,432 | (64,646 | ) | 219,604 | 1,309,390 | ||||||||
Company-wide operating income | $ | 213,606 | $ | 64,646 | $ | 45,465 | $ | 323,717 | |||||
(a) | See reconciliation of special items in Table 5. | |
(b) | The pro forma adjustments include additions to revenues and expenses for the former Belo stations of $155 million and $110 million, respectively. It does not include revenues and expenses for the former Belo stations in Phoenix, AZ and St. Louis, MO totaling $26 million and $20 million, respectively. Subsidiaries of Gannett and Sander Media, a holding company that has a station-operation agreement with Gannett, agreed to sell these stations upon receiving government approval. KMOV-TV, the television station in St. Louis, was sold in February 2014 and the two television stations in Phoenix were sold in June 2014. Revenue and expense adjustments totaling $13 million and $10 million, respectively, were added as if the third quarter 2014 acquisition of six London Broadcasting Television stations had occurred on the first day of 2013. The pro forma adjustment for broadcasting expense reflects the $5 million addition of amortization for definite-lived intangible assets as if the acquisitions of Belo and London had occurred on the first day of 2013. | |
(c) | The pro forma adjustments include a reduction of $4 million in revenue and $1 million in expense for Apartments.com, which was sold by Classified Ventures in the second quarter of 2014. Pro forma adjustments also include a $6 million reduction of revenue and $7 million of expense related to the sale of a printing press in the second quarter of 2014. In 2014, a small online business was moved from the Digital segment to the Publishing segment as a result of continued integration with other Publishing businesses. Publishing revenues and expenses were both increased by $2 million in the Publishing segment as a result. Beginning in the fourth quarter of 2014, the company began reporting an intersegment elimination with the acquisition of Classified Ventures. In addition, prior quarter intersegment eliminations that were previously reported within the Publishing and Digital segments were adjusted on a pro forma basis to the new intersegment elimination line. Publishing revenues increased $5 million and expenses increased $4 million as a result of this pro forma adjustment. | |
(d) | The pro forma adjustments include additions to revenue and expenses for the acquisition of Classified Ventures on October 1, 2014 of $112 million and $96 million, respectively. The pro forma adjustment reflects the $6 million addition of revenue amortization for an unfavorable contract and $18 million of amortization for definite-lived intangible assets as if the acquisition of Classified Ventures had occurred on the first day of 2013. In 2014, a small online business was moved from the Digital segment to the Publishing segment as a result of continued integration with other Publishing businesses. Digital revenues and expenses were both decreased by $2 million in the Digital segment as a result. Beginning in the fourth quarter of 2014, the company began reporting an intersegment elimination with the acquisition of Classified Ventures. In addition, prior quarter intersegment eliminations that were previously reported within the Publishing and Digital segments were adjusted on a pro forma basis to the new intersegment elimination line. Digital revenues increased $4 million and expenses increased $5 million as a result of this pro forma adjustment. | |
(e) | Beginning in the fourth quarter of 2014, the company began reporting an intersegment elimination with the acquisition of Classified Ventures. Intersegment eliminations between Classified Ventures and the company's newspapers and TV stations totaled $11 million of revenue and expense in the fourth quarter of 2013. In addition, prior quarter intersegment eliminations that were previously reported within the Publishing and Digital segments were adjusted on a pro forma basis to the new intersegment and totaled $8 million of revenue and expense. | |
(f) | The pro forma adjustments include all the pro forma adjustments discussed above. | |
Source:
Gannett Co., Inc.
For investor inquiries, contact:
Jeffrey
Heinz
Vice President, Investor Relations
703-854-6917
jheinz@gannett.com
or
For
media inquiries, contact:
Jeremy Gaines
Vice President,
Corporate Communications
703-854-6049
jmgaines@gannett.com