Gannett Announces Fourth Quarter 2024 Results & Business Outlook
"In 2024, we made continued strong progress executing on our strategy to advance our digital transformation, resulting in total digital revenues exceeding
"The successful execution of our strategy has driven continued improvement across our key financial metrics. In 2024, we delivered full-year growth in both Adjusted EBITDA and free cash flow, while driving improvement to our bottom line. We also remained focused on enhancing our capital structure in 2024, which was evidenced by repaying
"With our continued strong performance, we are pleased to have delivered on the expectations we set for 2024 at the beginning of the year for total revenue, Adjusted EBITDA, free cash flow, and net income. This success reinforces our confidence in achieving our 2025 expectations that we shared this morning. Further, when considering the impact of the refinancing we completed in Q4, our expectations for 2025 and 2026 remain in line with the guidance provided at the start of 2024. While transformations are never a straight line, the reaffirmation of our key financial goals demonstrates the continued progress we are making on our transformation."
"As we look ahead to 2025, we expect to build on that progress and drive improvement across our key financial metrics. We believe we are well-positioned to realize total revenue growth during 2025, growth in both total digital revenues and Adjusted EBITDA, significant free cash flow generation, and meaningful debt reduction. We are excited about our operational and financial plans for 2025, as well as the opportunity to create meaningful value for both our shareholders as well as the communities that we serve."
Fourth Quarter 2024 Digital Highlights (Year-Over-Year):
-
Total digital revenues of
$280.4 million 1.2% , or3.4% on a same store basis(1) -
Digital-only subscription revenues of
$49.0 million 17.0% -
200 million(2) average monthly unique visitors, an increase of
7.0% -
Digital advertising revenues of
$92.7 million 1.7%
Additional Fourth Quarter 2024 Highlights (Year-Over-Year):
-
Total revenues of
$621.3 million 7.2% - Total revenues were impacted by the decision to sell or shut down certain non-strategic assets
-
Same store revenues(1) decreased
5.5% , reflecting an improvement of 250 basis points -
Net income attributable to Gannett of
$64.3 million 10.4% -
Adjusted Net income attributable to Gannett(1) of
$38.3 million $56.5 million -
Adjusted EBITDA(1) totaled
$78.2 million 5.5% -
Adjusted EBITDA(1) margin of
12.6% improved by 150 basis points -
Cash provided by operating activities of
$9.0 million -
Free cash flow(1) of
$3.8 million
| ________________________ | ||
(1) |
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss) attributable to Gannett, Free cash flow, and Same store revenues are non-GAAP measures. See "Use of Non-GAAP Information" below for information about these non-GAAP measures. |
|
(2) |
200 million average monthly unique visitors in the fourth quarter of 2024 with approximately 149 million average monthly unique visitors coming from our |
|
Capital Structure Highlights:
-
As of December 31, 2024, the Company had cash and cash equivalents of
$106.3 million -
Total principal debt outstanding at December 31, 2024 was
$1,111.8 million $850.0 million - First lien net leverage(3) was 2.7x
- In February 2025, the Company entered into an asset purchase agreement with Hearst Corporation to divest the Austin American-Statesman, which is expected to close in the first quarter of 2025
Business Outlook(4)
The Company presents its full year outlook for 2025. The Company's estimates factor in the pending sale of the Austin American-Statesman but do not factor in the impact of any future acquisitions or dispositions.
-
Full Year 2025 Business Outlook(4)
-
Total digital revenues are expected to grow approximately
7% -10% on a same store basis(1)-
Total digital revenues are expected to make up
50% of total revenues during 2025
-
Total digital revenues are expected to make up
-
Total revenues are expected to be down in the low single digits on a same store basis(1)
- Same store(1) revenue trends are expected to grow on an overall basis during 2025
- Net income attributable to Gannett is expected to improve compared to the prior year
- Adjusted EBITDA(1) is expected to grow versus the prior year
-
Cash provided by operating activities is expected to grow in excess of
30% versus the prior year -
Free cash flow(1) is expected to grow in excess(5) of
40% versus the prior year
-
Total digital revenues are expected to grow approximately
Financial Highlights
In thousands |
Fourth Quarter 2024 |
|
Full Year 2024 |
|||
Revenues |
$ |
621,275 |
|
$ |
2,509,315 |
|
Net income (loss) attributable to Gannett |
|
64,319 |
|
|
(26,354 |
) |
Adjusted EBITDA(6) (non-GAAP basis) |
|
78,158 |
|
|
273,189 |
|
Adjusted net income attributable to Gannett(6) (non-GAAP basis) |
|
38,320 |
|
|
24,970 |
|
Cash provided by operating activities |
|
8,989 |
|
|
100,310 |
|
Free cash flow(6) (non-GAAP basis) |
|
3,832 |
|
|
58,445 |
|
| ________________________ | ||
(3) |
As of December 31, 2024, the First Lien Net Leverage ratio was calculated by subtracting cash on the balance sheet from the sum of our five-year first lien term loan facility (the "2029 Term Loan Facility") and dividing that by Q4 2024 LTM Adjusted EBITDA. The |
|
(4) |
Projections are based on Company estimates as of February 20, 2025 and are provided solely for illustrative purposes. Actual results may vary. The Company undertakes no obligation to update this information. Additionally, the Company's estimates do not factor in the impact of any future acquisitions or dispositions. The Company's future financial results could differ materially from the Company’s current estimates. |
|
(5) |
Capital expenditures are expected to increase as a result of investments in technology and products. |
|
(6) |
Refer to "Use of Non-GAAP Information" below for the Company's definition of Adjusted EBITDA, Adjusted net income (loss) attributable to Gannett, and Free cash flow, as well as the reconciliation of such measures to the most comparable GAAP measure. |
|
Earnings Conference Call
Management will host a conference call on Thursday, February 20, 2025 at 8:30 A.M. Eastern Time to review the financial and operating results for the period. A copy of the earnings release will be posted to the Investor Relations section of Gannett’s website, investors.gannett.com. The conference call may be accessed by dialing 1-888-506-0062 (from within the
About Gannett
Gannett Co., Inc. (NYSE: GCI) is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth focused media and digital marketing solutions company. Through our trusted brands, including the
Cautionary Statement Regarding Forward-Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, our full year 2025 business outlook, statements regarding our business outlook, digital revenue performance and growth, growth in our Digital Marketing Solutions segment, growth of and demand for our digital-only subscriptions and audience, digital marketing and advertising services, digital revenues, monetization of our audience, print advertising trends and revenues, expected results of our targeting and pricing models, expectations regarding our cash from operating activities, free cash flows, revenues, net income (loss) attributable to Gannett, Adjusted EBITDA, same store revenues and cash flows, expectations regarding our long-term growth, sustainable growth, and inflection in our revenue, our ability to create long-term stockholder value, our expectations, in terms of both amount and timing, with respect to debt repayment, our expectations with respect to the effects of our refinancing transaction, expectations regarding our divestiture of the Austin American-Statesman and the closing of such transaction, our expected capital expenditures, expectations regarding real estate and non-strategic asset sales, our strategy, our partnerships, our ability to achieve our operating priorities, our long-term opportunities, economic impacts, our ability to navigate volatility, achieve our financial goals, optimize our capital structure and achieve optimal financial performance, our cost structure, future revenue and expense trends, and our ability to influence trends. Words such as "expect(s)", "believe(s)", "aim(s)", "will", "can", "outlook", "guidance", "estimate(s)", "project(s)", "suggest", "trend", "focus", and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in the Company's most recent Annual Report on Form 10-K, our quarterly reports on Form 10-Q, and our other filings with the Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Except to the extent required by law, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
GANNETT CO., INC. CONSOLIDATED BALANCE SHEETS |
|||||||
Table No. 1 |
|
|
|
||||
In thousands, except share data |
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
106,299 |
|
|
$ |
100,180 |
|
Accounts receivable, net of allowance for credit losses of |
|
239,636 |
|
|
|
266,096 |
|
Inventories |
|
20,910 |
|
|
|
26,794 |
|
Prepaid expenses |
|
40,268 |
|
|
|
36,210 |
|
Other current assets |
|
18,782 |
|
|
|
14,957 |
|
Total current assets |
|
425,895 |
|
|
|
444,237 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
240,980 |
|
|
|
239,087 |
|
Operating lease assets |
|
143,955 |
|
|
|
221,733 |
|
Goodwill |
|
530,028 |
|
|
|
533,876 |
|
Intangible assets, net |
|
430,374 |
|
|
|
524,350 |
|
Deferred tax assets |
|
60,983 |
|
|
|
37,125 |
|
Pension and other assets |
|
207,932 |
|
|
|
180,839 |
|
Total assets |
$ |
2,040,147 |
|
|
$ |
2,181,247 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
318,384 |
|
|
$ |
293,444 |
|
Deferred revenue |
|
108,000 |
|
|
|
120,502 |
|
Current portion of long-term debt |
|
74,300 |
|
|
|
63,752 |
|
Operating lease liabilities |
|
39,761 |
|
|
|
45,763 |
|
Other current liabilities |
|
5,157 |
|
|
|
10,052 |
|
Total current liabilities |
|
545,602 |
|
|
|
533,513 |
|
Long-term debt |
|
755,754 |
|
|
|
564,836 |
|
Convertible debt |
|
249,757 |
|
|
|
416,036 |
|
Deferred tax liabilities |
|
4,928 |
|
|
|
2,028 |
|
Pension and other postretirement benefit obligations |
|
37,820 |
|
|
|
42,661 |
|
Long-term operating lease liabilities |
|
167,731 |
|
|
|
203,871 |
|
Other long-term liabilities |
|
125,921 |
|
|
|
100,989 |
|
Total noncurrent liabilities |
|
1,341,911 |
|
|
|
1,330,421 |
|
Total liabilities |
|
1,887,513 |
|
|
|
1,863,934 |
|
Commitments and contingent liabilities |
|
|
|
||||
Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1,588 |
|
|
|
1,586 |
|
Treasury stock, at cost, 11,447,187 shares and 9,615,242 shares at December 31, 2024 and December 31, 2023, respectively |
|
(20,540 |
) |
|
|
(17,393 |
) |
Additional paid-in capital |
|
1,281,801 |
|
|
|
1,426,325 |
|
Accumulated deficit |
|
(1,053,546 |
) |
|
|
(1,027,192 |
) |
Accumulated other comprehensive loss |
|
(56,164 |
) |
|
|
(65,541 |
) |
Total Gannett stockholders' equity |
|
153,139 |
|
|
|
317,785 |
|
Noncontrolling interests |
|
(505 |
) |
|
|
(472 |
) |
Total equity |
|
152,634 |
|
|
|
317,313 |
|
Total liabilities and equity |
$ |
2,040,147 |
|
|
$ |
2,181,247 |
|
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
Table No. 2 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
In thousands, except per share amounts |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
|
|
|
||||||||||
Digital |
$ |
280,388 |
|
|
$ |
277,145 |
|
|
$ |
1,103,651 |
|
|
$ |
1,050,370 |
|
Print and commercial |
|
340,887 |
|
|
|
392,260 |
|
|
|
1,405,664 |
|
|
|
1,613,180 |
|
Total revenues |
|
621,275 |
|
|
|
669,405 |
|
|
|
2,509,315 |
|
|
|
2,663,550 |
|
Operating costs |
|
375,799 |
|
|
|
419,644 |
|
|
|
1,545,584 |
|
|
|
1,692,031 |
|
Selling, general and administrative expenses |
|
178,663 |
|
|
|
185,908 |
|
|
|
726,028 |
|
|
|
735,339 |
|
Depreciation and amortization |
|
39,333 |
|
|
|
38,496 |
|
|
|
156,287 |
|
|
|
162,622 |
|
Integration and reorganization costs |
|
11,192 |
|
|
|
6,009 |
|
|
|
66,155 |
|
|
|
24,468 |
|
Asset impairments |
|
513 |
|
|
|
— |
|
|
|
46,589 |
|
|
|
1,370 |
|
(Gain) loss on sale or disposal of assets, net |
|
(466 |
) |
|
|
768 |
|
|
|
1,106 |
|
|
|
(40,101 |
) |
Other operating expenses |
|
10,136 |
|
|
|
722 |
|
|
|
10,404 |
|
|
|
1,550 |
|
Total operating expenses |
|
615,170 |
|
|
|
651,547 |
|
|
|
2,552,153 |
|
|
|
2,577,279 |
|
Operating income (loss) |
|
6,105 |
|
|
|
17,858 |
|
|
|
(42,838 |
) |
|
|
86,271 |
|
Interest expense |
|
25,903 |
|
|
|
26,969 |
|
|
|
104,697 |
|
|
|
111,776 |
|
Gain on early extinguishment of debt |
|
(55,205 |
) |
|
|
(1,316 |
) |
|
|
(55,559 |
) |
|
|
(4,529 |
) |
Non-operating pension income |
|
(2,962 |
) |
|
|
(2,375 |
) |
|
|
(12,438 |
) |
|
|
(9,382 |
) |
Equity income in unconsolidated investees, net |
|
(271 |
) |
|
|
(1,038 |
) |
|
|
(548 |
) |
|
|
(2,379 |
) |
Other non-operating expense (income), net |
|
2,454 |
|
|
|
(3,067 |
) |
|
|
(1,317 |
) |
|
|
(3,050 |
) |
Non-operating expenses |
|
(30,081 |
) |
|
|
19,173 |
|
|
|
34,835 |
|
|
|
92,436 |
|
Income (loss) before income taxes |
|
36,186 |
|
|
|
(1,315 |
) |
|
|
(77,673 |
) |
|
|
(6,165 |
) |
(Benefit) provision for income taxes |
|
(28,132 |
) |
|
|
21,581 |
|
|
|
(51,286 |
) |
|
|
21,729 |
|
Net income (loss) |
|
64,318 |
|
|
|
(22,896 |
) |
|
|
(26,387 |
) |
|
|
(27,894 |
) |
Net loss attributable to noncontrolling interests |
|
(1 |
) |
|
|
(4 |
) |
|
|
(33 |
) |
|
|
(103 |
) |
Net income (loss) attributable to Gannett |
$ |
64,319 |
|
|
$ |
(22,892 |
) |
|
$ |
(26,354 |
) |
|
$ |
(27,791 |
) |
Income (loss) per share attributable to Gannett - basic |
$ |
0.45 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
Income (loss) per share attributable to Gannett - diluted |
$ |
0.11 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
Table No. 3 |
Year ended December 31, |
||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
||||
Net loss |
$ |
(26,387 |
) |
|
$ |
(27,894 |
) |
Adjustments to reconcile net loss to operating cash flows: |
|
|
|
||||
Depreciation and amortization |
|
156,287 |
|
|
|
162,622 |
|
Share-based compensation expense |
|
12,522 |
|
|
|
16,567 |
|
Non-cash interest expense |
|
18,072 |
|
|
|
21,199 |
|
(Benefit) provision for deferred income taxes |
|
(44,758 |
) |
|
|
11,514 |
|
Loss (gain) on sale or disposal of assets, net |
|
1,106 |
|
|
|
(40,101 |
) |
Gain on early extinguishment of debt |
|
(55,559 |
) |
|
|
(4,529 |
) |
Asset impairments |
|
46,589 |
|
|
|
1,370 |
|
Pension and other postretirement benefit obligations |
|
(23,916 |
) |
|
|
(13,917 |
) |
Equity income in unconsolidated investees, net |
|
(548 |
) |
|
|
(2,379 |
) |
Change in other assets and liabilities, net: |
|
|
|
||||
Accounts receivable, net |
|
25,843 |
|
|
|
34,135 |
|
Inventory |
|
4,617 |
|
|
|
18,510 |
|
Prepaid expenses |
|
(1,820 |
) |
|
|
16,680 |
|
Accounts payable and accrued liabilities |
|
(1,934 |
) |
|
|
(65,094 |
) |
Deferred revenue |
|
(17,277 |
) |
|
|
(29,971 |
) |
Other assets and liabilities |
|
7,473 |
|
|
|
(4,138 |
) |
Cash provided by operating activities |
|
100,310 |
|
|
|
94,574 |
|
Investing activities |
|
|
|
||||
Purchase of property, plant and equipment |
|
(49,534 |
) |
|
|
(38,116 |
) |
Proceeds from sale of real estate and other assets |
|
20,976 |
|
|
|
85,298 |
|
Change in other investing activities |
|
608 |
|
|
|
(203 |
) |
Cash (used for) provided by investing activities |
|
(27,950 |
) |
|
|
46,979 |
|
Financing activities |
|
|
|
||||
Payments of deferred financing costs |
|
(8,933 |
) |
|
|
— |
|
Borrowings of long-term debt |
|
837,671 |
|
|
|
— |
|
Repayments of long-term debt |
|
(644,732 |
) |
|
|
(133,821 |
) |
Repurchase of convertible debt |
|
(248,211 |
) |
|
|
— |
|
Proceeds from convertible debt |
|
110 |
|
|
|
— |
|
Treasury stock |
|
(3,141 |
) |
|
|
(2,642 |
) |
Changes in other financing activities |
|
(1,617 |
) |
|
|
952 |
|
Cash used for financing activities |
|
(68,853 |
) |
|
|
(135,511 |
) |
Effect of currency exchange rate change on cash |
|
2,062 |
|
|
|
(234 |
) |
Increase in cash, cash equivalents and restricted cash |
|
5,569 |
|
|
|
5,808 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
110,612 |
|
|
|
104,804 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
116,181 |
|
|
$ |
110,612 |
|
GANNETT CO., INC. SEGMENT INFORMATION (Unaudited) |
|||||||||||||||
Table No. 4 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Domestic Gannett Media |
$ |
482,259 |
|
|
$ |
529,217 |
|
|
$ |
1,938,398 |
|
|
$ |
2,095,853 |
|
Newsquest |
|
58,275 |
|
|
|
58,178 |
|
|
|
239,273 |
|
|
|
233,980 |
|
Digital Marketing Solutions |
|
117,035 |
|
|
|
120,384 |
|
|
|
477,807 |
|
|
|
477,909 |
|
Corporate and other |
|
1,363 |
|
|
|
1,665 |
|
|
|
5,656 |
|
|
|
6,268 |
|
Intersegment eliminations |
|
(37,657 |
) |
|
|
(40,039 |
) |
|
|
(151,819 |
) |
|
|
(150,460 |
) |
Total |
$ |
621,275 |
|
|
$ |
669,405 |
|
|
$ |
2,509,315 |
|
|
$ |
2,663,550 |
|
USE OF NON-GAAP INFORMATION
The Company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a
We define our non-GAAP financial performance and liquidity measures as follows:
-
Adjusted EBITDA is a non-GAAP financial performance measure we believe offers a useful view of the overall and segment operations of our business. We define Adjusted EBITDA as Net income (loss) attributable to Gannett before (1) Income tax expense (benefit), (2) Interest expense, (3) Gains or losses on the early extinguishment of debt, (4) Non-operating pension income, (5) Loss on convertible notes derivative, (6) Depreciation and amortization, (7) Integration and reorganization costs, (8) Third-party debt expenses and acquisition costs, (9) Asset impairments, (10) Goodwill and intangible impairments, (11) Gains or losses on the sale or disposal of assets, (12) Share-based compensation, (13) Other non-operating (income) expense, net, and (14) Non-recurring items. The most directly comparable
U.S. GAAP financial performance measure is Net income (loss) attributable to Gannett. - Adjusted EBITDA margin is a non-GAAP financial performance measure we believe offers a useful view of the overall and segment operations of our business. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total Revenues.
- Adjusted net income (loss) attributable to Gannett is a non-GAAP financial performance measure we believe offers a useful view of the overall operations of our business and is useful to analysts and investors in evaluating the results of operations and operational trends. We define Adjusted net income (loss) attributable to Gannett as Net income (loss) attributable to Gannett before (1) Gains or losses on the early extinguishment of debt, (2) Loss on convertible notes derivative, (3) Integration and reorganization costs, (4) Third-party debt expenses and acquisition costs, (5) Asset impairments, (6) Goodwill and intangibles impairments, (7) Gains or losses on the sale or disposal of assets, (8) Other items, including (Gain) loss on sale of investments, and (9) the tax impact of the above items.
-
Free cash flow is a non-GAAP liquidity measure that adjusts our reported
U.S. GAAP results for items we believe are critical to the ongoing success of our business. We define Free cash flow as Cash provided by (used for) operating activities as reported on the consolidated statements of cash flows including the impact of (i) capital expenditures and excluding the impact of (ii) third-party debt expenses associated with the refinancing of debt. The result is a figure representing Free cash flow available for use in operations, additional investments, ongoing debt obligations, and returns to stockholders. The most directly comparableU.S. GAAP financial liquidity measure is Cash provided by (used for) operating activities. -
Same store revenues is a non-GAAP financial performance measure based on our
U.S. GAAP revenues for the current period, excluding (1) acquired revenues, (2) currency impact, and (3) exited operations.
Management’s Use of Non-GAAP Measures
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss) attributable to Gannett, Free cash flow and Same store revenues are not measurements of financial performance or liquidity under
We use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues as measures of our day-to-day operating performance, which is evidenced by the publishing and delivery of news and other media and excludes certain expenses that may not be indicative of our day-to-day business operating results.
Limitations of Non-GAAP Measures
Each of our non-GAAP measures have limitations as analytical tools. They should not be viewed in isolation or as a substitute for
Management believes these items are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial performance and liquidity measures to supplement our
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) attributable to Gannett, Free cash flow and Same store revenues are not alternatives to net income (loss), margin, income (loss) from operations, cash flow provided by (used for) operating activities, revenues, or any other measure of performance or liquidity derived in accordance with
Non-GAAP Outlook
Our full year 2025 business outlook included in this release include certain non-GAAP financial performance and liquidity measures, including Same store revenues, Adjusted EBITDA, and Free cash flow. The outlook for each of these non-GAAP items does not factor in the impact of any future acquisitions or dispositions. We have provided these non-GAAP measures for future guidance for the same reasons that were outlined above for historical non-GAAP measures. We have not reconciled non-GAAP forward-looking Same store revenues, Adjusted EBITDA, and Free cash flow to their most directly comparable
GANNETT CO., INC. NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (Unaudited) |
|||||||||||||||||||
Table No. 5 |
Three months ended December 31, 2024 |
||||||||||||||||||
In thousands |
Domestic
|
|
Newsquest |
|
Digital
|
|
Corporate
|
|
Consolidated
|
||||||||||
Net income attributable to Gannett |
$ |
30,188 |
|
|
$ |
12,315 |
|
|
$ |
1,574 |
|
|
$ |
20,242 |
|
|
$ |
64,319 |
|
Benefit for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28,132 |
) |
|
|
(28,132 |
) |
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,903 |
|
|
|
25,903 |
|
Gain on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(55,205 |
) |
|
|
(55,205 |
) |
Non-operating pension income |
|
(1,102 |
) |
|
|
(1,860 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,962 |
) |
Depreciation and amortization |
|
23,420 |
|
|
|
2,293 |
|
|
|
5,687 |
|
|
|
7,933 |
|
|
|
39,333 |
|
Integration and reorganization costs (reversal) |
|
6,681 |
|
|
|
(1,009 |
) |
|
|
119 |
|
|
|
5,401 |
|
|
|
11,192 |
|
Third-party debt expenses and acquisition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,259 |
|
|
|
10,259 |
|
Asset impairments |
|
513 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
513 |
|
(Gain) loss on sale or disposal of assets, net |
|
(487 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
28 |
|
|
|
(466 |
) |
Share-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,279 |
|
|
|
3,279 |
|
Other non-operating (income) expense, net |
|
(532 |
) |
|
|
(541 |
) |
|
|
4,003 |
|
|
|
(476 |
) |
|
|
2,454 |
|
Non-recurring items |
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
7,642 |
|
|
|
7,671 |
|
Adjusted EBITDA (non-GAAP basis) |
$ |
58,710 |
|
|
$ |
11,191 |
|
|
$ |
11,383 |
|
|
$ |
(3,126 |
) |
|
$ |
78,158 |
|
Net income attributable to Gannett margin |
|
6.3 |
% |
|
|
21.1 |
% |
|
|
1.3 |
% |
|
|
NM |
|
|
|
10.4 |
% |
Adjusted EBITDA margin (non-GAAP basis) |
|
12.2 |
% |
|
|
19.2 |
% |
|
|
9.7 |
% |
|
|
NM |
|
|
|
12.6 |
% |
NM indicates not meaningful. |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three months ended December 31, 2023 |
||||||||||||||||||
In thousands |
Domestic
|
|
Newsquest |
|
Digital
|
|
Corporate
|
|
Consolidated
|
||||||||||
Net income (loss) attributable to Gannett |
$ |
26,915 |
|
|
$ |
11,107 |
|
|
$ |
8,043 |
|
|
$ |
(68,957 |
) |
|
$ |
(22,892 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,581 |
|
|
|
21,581 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,969 |
|
|
|
26,969 |
|
Gain on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,316 |
) |
|
|
(1,316 |
) |
Non-operating pension income |
|
(209 |
) |
|
|
(2,166 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,375 |
) |
Depreciation and amortization |
|
25,721 |
|
|
|
2,063 |
|
|
|
5,993 |
|
|
|
4,719 |
|
|
|
38,496 |
|
Integration and reorganization costs |
|
3,248 |
|
|
|
677 |
|
|
|
182 |
|
|
|
1,902 |
|
|
|
6,009 |
|
Third-party debt expenses and acquisition costs |
|
— |
|
|
|
215 |
|
|
|
— |
|
|
|
507 |
|
|
|
722 |
|
Loss (gain) on sale or disposal of assets, net |
|
703 |
|
|
|
(29 |
) |
|
|
92 |
|
|
|
2 |
|
|
|
768 |
|
Share-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,840 |
|
|
|
3,840 |
|
Other non-operating income, net |
|
(215 |
) |
|
|
(634 |
) |
|
|
(1,815 |
) |
|
|
(403 |
) |
|
|
(3,067 |
) |
Non-recurring items |
|
(65 |
) |
|
|
96 |
|
|
|
— |
|
|
|
5,340 |
|
|
|
5,371 |
|
Adjusted EBITDA (non-GAAP basis) |
$ |
56,098 |
|
|
$ |
11,329 |
|
|
$ |
12,495 |
|
|
$ |
(5,816 |
) |
|
$ |
74,106 |
|
Net income (loss) attributable to Gannett margin |
|
5.1 |
% |
|
|
19.1 |
% |
|
|
6.7 |
% |
|
|
NM |
|
|
|
(3.4 |
)% |
Adjusted EBITDA margin (non-GAAP basis) |
|
10.6 |
% |
|
|
19.5 |
% |
|
|
10.4 |
% |
|
|
NM |
|
|
|
11.1 |
% |
NM indicates not meaningful. |
|
|
|
|
|
|
|
|
|
||||||||||
GANNETT CO., INC. NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (Unaudited) |
|||||||||||||||||||
Table No. 5 (continued) |
Year ended December 31, 2024 |
||||||||||||||||||
In thousands |
Domestic
|
|
Newsquest |
|
Digital
|
|
Corporate
|
|
Consolidated
|
||||||||||
Net income (loss) attributable to Gannett |
$ |
61,333 |
|
|
$ |
55,196 |
|
|
$ |
13,382 |
|
|
$ |
(156,265 |
) |
|
$ |
(26,354 |
) |
Benefit for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,286 |
) |
|
|
(51,286 |
) |
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,697 |
|
|
|
104,697 |
|
Gain on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(55,559 |
) |
|
|
(55,559 |
) |
Non-operating pension income |
|
(5,021 |
) |
|
|
(7,417 |
) |
|
|
— |
|
|
|
— |
|
|
|
(12,438 |
) |
Depreciation and amortization |
|
96,478 |
|
|
|
8,485 |
|
|
|
24,066 |
|
|
|
27,258 |
|
|
|
156,287 |
|
Integration and reorganization costs (reversal) |
|
49,625 |
|
|
|
(513 |
) |
|
|
2,061 |
|
|
|
14,982 |
|
|
|
66,155 |
|
Third-party debt expenses and acquisition costs |
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
10,954 |
|
|
|
10,932 |
|
Asset impairments |
|
600 |
|
|
|
— |
|
|
|
— |
|
|
|
45,989 |
|
|
|
46,589 |
|
Loss (gain) on sale or disposal of assets, net |
|
1,682 |
|
|
|
(894 |
) |
|
|
93 |
|
|
|
225 |
|
|
|
1,106 |
|
Share-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,522 |
|
|
|
12,522 |
|
Other non-operating (loss) income, net |
|
(2,263 |
) |
|
|
(1,426 |
) |
|
|
3,442 |
|
|
|
(1,070 |
) |
|
|
(1,317 |
) |
Non-recurring items |
|
(13 |
) |
|
|
— |
|
|
|
634 |
|
|
|
21,234 |
|
|
|
21,855 |
|
Adjusted EBITDA (non-GAAP basis) |
$ |
202,421 |
|
|
$ |
53,409 |
|
|
$ |
43,678 |
|
|
$ |
(26,319 |
) |
|
$ |
273,189 |
|
Net income (loss) attributable to Gannett margin |
|
3.2 |
% |
|
|
23.1 |
% |
|
|
2.8 |
% |
|
|
NM |
|
|
|
(1.1 |
)% |
Adjusted EBITDA margin (non-GAAP basis) |
|
10.4 |
% |
|
|
22.3 |
% |
|
|
9.1 |
% |
|
|
NM |
|
|
|
10.9 |
% |
NM indicates not meaningful. |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Year ended December 31, 2023 |
||||||||||||||||||
In thousands |
Domestic
|
|
Newsquest |
|
Digital
|
|
Corporate and
|
|
Consolidated
|
||||||||||
Net income (loss) attributable to Gannett |
$ |
114,254 |
|
|
$ |
49,257 |
|
|
$ |
28,841 |
|
|
$ |
(220,143 |
) |
|
$ |
(27,791 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,729 |
|
|
|
21,729 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
111,776 |
|
|
|
111,776 |
|
Gain on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,529 |
) |
|
|
(4,529 |
) |
Non-operating pension income |
|
(705 |
) |
|
|
(8,677 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9,382 |
) |
Depreciation and amortization |
|
112,201 |
|
|
|
8,792 |
|
|
|
23,795 |
|
|
|
17,834 |
|
|
|
162,622 |
|
Integration and reorganization costs |
|
5,582 |
|
|
|
1,763 |
|
|
|
784 |
|
|
|
16,339 |
|
|
|
24,468 |
|
Third-party debt expenses and acquisition costs |
|
139 |
|
|
|
215 |
|
|
|
— |
|
|
|
1,196 |
|
|
|
1,550 |
|
Asset impairments |
|
1,370 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,370 |
|
(Gain) loss on sale or disposal of assets, net |
|
(38,937 |
) |
|
|
(42 |
) |
|
|
324 |
|
|
|
(1,446 |
) |
|
|
(40,101 |
) |
Share-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,567 |
|
|
|
16,567 |
|
Other non-operating income (loss), net |
|
773 |
|
|
|
(1,539 |
) |
|
|
(521 |
) |
|
|
(1,763 |
) |
|
|
(3,050 |
) |
Non-recurring items |
|
(36 |
) |
|
|
359 |
|
|
|
— |
|
|
|
12,131 |
|
|
|
12,454 |
|
Adjusted EBITDA (non-GAAP basis) |
$ |
194,641 |
|
|
$ |
50,128 |
|
|
$ |
53,223 |
|
|
$ |
(30,309 |
) |
|
$ |
267,683 |
|
Net income (loss) attributable to Gannett margin |
|
5.5 |
% |
|
|
21.1 |
% |
|
|
6.0 |
% |
|
|
NM |
|
|
|
(1.0 |
)% |
Adjusted EBITDA margin (non-GAAP basis) |
|
9.3 |
% |
|
|
21.4 |
% |
|
|
11.1 |
% |
|
|
NM |
|
|
|
10.0 |
% |
NM indicates not meaningful. |
|||||||||||||||||||
GANNETT CO., INC. NON-GAAP FINANCIAL INFORMATION ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO GANNETT (Unaudited) |
|||||||||||||||
Table No. 6 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) attributable to Gannett |
$ |
64,319 |
|
|
$ |
(22,892 |
) |
|
$ |
(26,354 |
) |
|
$ |
(27,791 |
) |
Gain on early extinguishment of debt |
|
(55,205 |
) |
|
|
(1,316 |
) |
|
|
(55,559 |
) |
|
|
(4,529 |
) |
Integration and reorganization costs |
|
11,192 |
|
|
|
6,009 |
|
|
|
66,155 |
|
|
|
24,468 |
|
Third-party debt expenses and acquisition costs |
|
10,259 |
|
|
|
722 |
|
|
|
10,932 |
|
|
|
1,550 |
|
Asset impairments |
|
513 |
|
|
|
— |
|
|
|
46,589 |
|
|
|
1,370 |
|
(Gain) loss on sale or disposal of assets, net |
|
(466 |
) |
|
|
768 |
|
|
|
1,106 |
|
|
|
(40,101 |
) |
Other items |
|
20 |
|
|
|
(99 |
) |
|
|
(597 |
) |
|
|
(196 |
) |
Subtotal |
|
30,632 |
|
|
|
(16,808 |
) |
|
|
42,272 |
|
|
|
(45,229 |
) |
Tax impact of above items |
|
7,688 |
|
|
|
(1,412 |
) |
|
|
(17,302 |
) |
|
|
4,247 |
|
Adjusted net income (loss) attributable to Gannett (non-GAAP basis) |
$ |
38,320 |
|
|
$ |
(18,220 |
) |
|
$ |
24,970 |
|
|
$ |
(40,982 |
) |
GANNETT CO., INC. NON-GAAP FINANCIAL INFORMATION FREE CASH FLOW (Unaudited) |
|||||||||||||||
Table No. 7 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash provided by operating activities (GAAP basis) |
$ |
8,989 |
|
|
$ |
21,157 |
|
|
$ |
100,310 |
|
|
$ |
94,574 |
|
Capital expenditures |
|
(12,826 |
) |
|
|
(8,409 |
) |
|
|
(49,534 |
) |
|
|
(38,116 |
) |
Third-party debt expenses |
|
7,669 |
|
|
|
— |
|
|
|
7,669 |
|
|
|
— |
|
Free cash flow (non-GAAP basis)(1) |
$ |
3,832 |
|
|
$ |
12,748 |
|
|
$ |
58,445 |
|
|
$ |
56,458 |
|
(1) For the three months ended December 31, 2024 and 2023, free cash flow was negatively impacted by interest paid of |
|||||||||||||||
| GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION SAME STORE REVENUES - CONSOLIDATED & DIGITAL (Unaudited) |
|||||||||||||||||||||
Table No. 8 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Total revenues |
$ |
621,275 |
|
|
$ |
669,405 |
|
|
(7.2 |
)% |
|
$ |
2,509,315 |
|
|
$ |
2,663,550 |
|
|
(5.8 |
)% |
Currency impact |
|
(1,839 |
) |
|
|
— |
|
|
|
|
|
(6,111 |
) |
|
|
— |
|
|
|
||
Exited operations(1) |
|
(942 |
) |
|
|
(14,998 |
) |
|
|
|
|
(3,094 |
) |
|
|
(29,339 |
) |
|
|
||
Same store total revenues |
$ |
618,494 |
|
|
$ |
654,407 |
|
|
(5.5 |
)% |
|
$ |
2,500,110 |
|
|
$ |
2,634,211 |
|
|
(5.1 |
)% |
(1) Exited operations include (i) businesses divested and (ii) the elimination of stand-alone print products discontinued within the media markets. |
|||||||||||||||||||||
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||||||||
In thousands |
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Digital revenues |
$ |
280,388 |
|
|
$ |
277,145 |
|
|
1.2 |
% |
|
$ |
1,103,651 |
|
|
$ |
1,050,370 |
|
|
5.1 |
% |
Currency impact |
|
(556 |
) |
|
|
— |
|
|
|
|
|
(1,772 |
) |
|
|
— |
|
|
|
||
Exited operations(1) |
|
(930 |
) |
|
|
(7,480 |
) |
|
|
|
|
(3,053 |
) |
|
|
(11,644 |
) |
|
|
||
Same store digital revenues |
$ |
278,902 |
|
|
$ |
269,665 |
|
|
3.4 |
% |
|
$ |
1,098,826 |
|
|
$ |
1,038,726 |
|
|
5.8 |
% |
(1) Exited operations include (i) businesses divested and (ii) the elimination of stand-alone print products discontinued within the media markets. |
|||||||||||||||||||||
KEY PERFORMANCE INDICATORS
A key performance indicator ("KPI") is generally defined as a quantifiable measurement or metric used to gauge performance, specifically to help determine strategic, financial, and operational achievements, especially compared to those of similar businesses.
We define Digital-only average revenue per user ("ARPU") as digital-only subscription average monthly revenues divided by the average digital-only paid subscriptions within the respective period. We define Core platform ARPU as core platform average monthly revenues divided by average monthly customer count within the period. We define core platform revenues as revenue derived from customers utilizing our proprietary digital marketing services platform that are sold by either our direct or local market teams.
Management believes Digital-only ARPU, Core platform ARPU, digital-only paid subscriptions, core platform revenues and core platform average customer count are KPIs that offer useful information in understanding consumer behavior, trends in our business, and our overall operating results. Management utilizes these KPIs to track and analyze trends across our segments.
GANNETT CO., INC. KEY PERFORMANCE INDICATORS (Unaudited) |
|||||||||||||||||||||||||
Table No. 9 |
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||||||||||||
In thousands, except ARPU |
|
2024 |
|
|
2023 |
|
Change |
|
% Change |
|
|
2024 |
|
|
2023 |
|
Change |
|
% Change |
||||||
Domestic Gannett Media: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Digital-only ARPU |
$ |
8.03 |
|
$ |
7.09 |
|
$ |
0.94 |
|
|
13.3 |
% |
|
$ |
7.83 |
|
$ |
6.46 |
|
$ |
1.37 |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Newsquest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Digital-only ARPU |
$ |
6.21 |
|
$ |
6.18 |
|
$ |
0.03 |
|
|
0.5 |
% |
|
$ |
6.17 |
|
$ |
6.14 |
|
$ |
0.03 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Gannett: |
|||||||||||||||||||||||||
Digital-only ARPU |
$ |
7.93 |
|
$ |
7.05 |
|
$ |
0.88 |
|
|
12.5 |
% |
|
$ |
7.75 |
|
$ |
6.45 |
|
$ |
1.30 |
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DMS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core platform revenues |
$ |
116,248 |
|
$ |
119,355 |
|
$ |
(3,107 |
) |
|
(2.6 |
)% |
|
$ |
474,298 |
|
$ |
473,172 |
|
$ |
1,126 |
|
|
0.2 |
% |
Core platform ARPU |
$ |
2,788 |
|
$ |
2,663 |
|
$ |
125 |
|
|
4.7 |
% |
|
$ |
2,760 |
|
$ |
2,620 |
|
$ |
140 |
|
|
5.3 |
% |
Core platform average customer count |
|
13.9 |
|
|
14.9 |
|
|
(1.0 |
) |
|
(6.7 |
)% |
|
|
14.3 |
|
|
15.1 |
|
|
(0.8 |
) |
|
(5.3 |
)% |
Table No. 10 |
As of December 31, |
|||||
In thousands |
2024 |
|
2023 |
|
% Change |
|
Digital-only paid subscriptions: |
|
|
|
|
|
|
Domestic Gannett Media |
1,953 |
|
1,912 |
|
2.1 |
% |
Newsquest |
110 |
|
83 |
|
32.5 |
% |
Total Gannett |
2,063 |
|
1,995 |
|
3.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220488444/en/
For investor inquiries, contact:
Matt Esposito
Investor Relations
703-854-3000
investors@gannett.com
For media inquiries, contact:
Lark-Marie Anton
Corporate Communications
646-906-4087
lark@gannett.com
Source: Gannett Co., Inc.
