Achieved Record Digital-Only Subscriber Growth
of 46% to over 1.5 million Paid Subscribers
Continued Strong Growth in Digital Marketing
Solutions with Revenue Up 16.5% Over Prior Year Same Store
Improved Capital Structure with Recent Debt
Refinancing; First Lien Net Leverage down to 1.6x
Gannett Co., Inc. ("Gannett", "we", "us", "our", or the
"Company") (NYSE: GCI) today reported its financial results for the
third quarter ended September 30, 2021.
"Nine months ago we outlined a long-term vision for growth at
Gannett. While we are still in early stages, the strong growth in
digital-only circulation and digital marketing solutions confirms
we are on the right path as evidenced by Adjusted EBITDA and same
store revenue growth in the third quarter of 2021," said Michael
Reed, Gannett Chairman and Chief Executive Officer. "With digital
revenue accounting for over one-third of total revenue and growing,
we are excited about the Company's evolution to a digitally focused
content platform and the early momentum of our subscription-led
strategy."
"We remain committed to maximizing shareholder value and we
believe this is achievable through the execution of our long-term
strategy coupled with our improved capital structure, lower cost of
debt, and new credit facility, each of which provides us greater
financial flexibility to conduct share repurchases and redeem our
previously issued convertible notes."
Third Quarter 2021 Financial
Highlights:
- Total revenues of $800.2 million decreased 1.8% compared to the
prior year quarter
- Same store revenues increased 0.9% compared to the third
quarter of 2020
- Total digital revenues were $265.0 million or 33.1% of total
revenues, up 17.8% over the prior year period on a same store
basis
- Net income attributable to Gannett of $14.7 million
- Adjusted net income attributable to Gannett of $26.5
million
- Adjusted EBITDA totaled $102.1 million, an increase of 16.0%
compared to the third quarter of 2020, the fourth consecutive
quarter of year-over-year growth
- Adjusted EBITDA margin of 12.8% versus 10.8% in the prior year
period
- Prior year third quarter Adjusted EBITDA includes $4.8 million
related to businesses that the Company divested in the fourth
quarter of 2020
- Net cash flow provided by operating activities of $40.8
million
- Free cash flow of $29.3 million
Additional Business
Highlights:
- Digital-only paid subscribers exceeded 1.5 million at the end
of the third quarter of 2021, up 46% compared to the same period in
the prior year
- Digital-only circulation revenues of $25.7 million grew 26.6%
year-over-year
- 179 million average monthly unique visitors in the third
quarter of 2021 across USA TODAY NETWORK per ComScore plus the U.K.
digital properties
- Digital Marketing Solutions segment revenues were $116.8
million, and on a same store basis increased 16.5% in the third
quarter of September 30, 2021 compared to the same period in the
prior year
- Total core platform customers increased sequentially to 15.4
thousand in the third quarter of September 30, 2021, up 0.5%
quarter-over-quarter
- Margins within the segment increased over historical levels to
12.9% versus 4.0% in the same quarter prior year
- Launched USA TODAY Sports+ Premium Subscription Product
- In conjunction with the Tipico USA Technology, Inc. sports
betting partnership, added new brands to extensive sports portfolio
for avid sports betting fans including Sportsbook Wire, BetFTW, and
several new video series dedicated to sports betting analysis
- During the third quarter of 2021, the Company repaid
approximately $91.1 million in principal under its previous 5-Year
Term Loan (the "5-Year Term Loan") using the proceeds from real
estate and other asset sales totaling $39.0 million and excess
cash, bringing the 5-Year Term Loan principal under $1.0 billion at
September 30, 2021
- Total debt principal outstanding as of September 30, 2021 was
$1.400 billion, comprised of the (i) $899.4 million of 5-Year Term
Loan, (ii) $497.1 million of the Company's 2027 convertible notes,
and (iii) $3.3 million of remaining convertible notes from our
acquisition of Gannett Co., Inc. (which was renamed Gannett Media
Corp. and is referred to as "Legacy Gannett") in the fourth quarter
of 2019
- During October 2021, the Company secured a five-year senior
secured term loan facility in an aggregate principal amount of $516
million (the "New Senior Secured Term Loan"). The proceeds from the
New Senior Secured Term Loan, together with net proceeds from the
Company's private offering of $400 million first lien notes due
2026, allowed the Company to repay in full its existing 5-Year Term
Loan
- The refinancing reduced the Company's cost of debt by nearly
200 basis points and will result in meaningful cash interest
savings in the future
- As of September 30, 2021, the Company had cash and cash
equivalents of $141.3 million
- First Lien Net Leverage(1) of 1.6x as of September 30,
2021
- Targeting First Lien Net Leverage of 1.0x by the end of
2022
_______________
(1)
First Lien Net Leverage ratio as of
September 30, 2021 was calculated by subtracting cash on the
balance sheet from the 5-Year Term Loan and dividing it by Q3 2021
LTM Adjusted EBITDA. Our 2027 convertible notes are second lien as
of the completion of the 5-Year Term Loan refinancing in February
2021.
Financial Highlights
in thousands
Third Quarter 2021
Revenues
$
800,185
Net income attributable to Gannett
14,687
Adjusted EBITDA(2) (non-GAAP)
102,067
Adjusted Net income attributable to
Gannett(2) (non-GAAP)
26,506
Net cash flow provided by operating
activities
40,760
Free cash flow(2) (non-GAAP)
29,316
(2)
Refer to "Use of Non-GAAP Information"
below for the Company’s definition of Adjusted EBITDA, Adjusted Net
income 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 Friday, November 5,
2021 at 8:30 A.M. Eastern Time. 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 1-877-451-6152 (from within the U.S.) or 1-201-389-0879
(from outside of the U.S.) ten minutes prior to the scheduled start
of the call; please reference “Gannett Third Quarter Earnings Call”
or access code “13719791”. A simultaneous webcast of the conference
call will be available to the public on a listen-only basis at
investors.gannett.com. Please allow extra time prior to the call to
visit the website and download any necessary software required to
listen to the internet broadcast. A telephonic replay of the
conference call will also be available approximately two hours
following the call’s completion through 11:59 P.M. Eastern Time on
Friday, November 19, 2021 by dialing 1-844-512-2921 (from within
the U.S.) or 1-412-317-6671 (from outside of the U.S.); please
reference access code “13719791”.
About Gannett
Gannett Co., Inc. (NYSE: GCI) is a subscription-led and
digitally focused media and marketing solutions company committed
to empowering communities to thrive. With an unmatched reach at the
national and local level, Gannett touches the lives of millions
with our Pulitzer Prize-winning content, consumer experiences and
benefits, and advertiser products and services. Our current
portfolio of media assets includes USA TODAY, local media
organizations in 46 states in the U.S., and Newsquest, a wholly
owned subsidiary operating in the United Kingdom with more than 120
local news media brands. Gannett also owns the digital marketing
services companies ReachLocal, Inc., UpCurve, Inc., and WordStream,
Inc., which are marketed under the LOCALiQ brand, and runs the
largest media-owned events business in the U.S., USA TODAY NETWORK
Ventures. To connect with us, visit www.gannett.com.
Same Store Revenues
Same store revenues are based on GAAP revenues for Gannett for
the current period, excluding (i) exited operations, (ii) currency
impacts, and (iii) deferred revenue impacts related to the
acquisition of Legacy Gannett.
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, statements regarding our digital revenue performance
and growth, growth in our Digital Marketing Solutions segment, our
expectations, in terms of both amount and timing, with respect to
debt repayment, our cash interest savings, and our net leverage,
growth of and demand for our digital-only subscriptions and digital
marketing and advertising services, any future share repurchases or
redemptions of our convertible notes, our strategy, and future
revenue trends and our ability to influence trends. Words such as
"expect(s)", "plan(s)", "believes(s)", "will", "target" 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 2020 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
Table No. 1
In thousands, except share data
September 30, 2021
December 31, 2020
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$
141,302
$
170,725
Accounts receivable, net of allowance for
doubtful accounts of $16,411 and $20,843, as of September 30, 2021
and December 31, 2020, respectively
301,016
314,305
Inventories
33,492
35,075
Prepaid expenses and other current
assets
111,689
116,581
Total current assets
587,499
636,686
Property, plant, and equipment, net
461,923
590,272
Operating lease assets
279,353
289,504
Goodwill
533,797
534,088
Intangible assets, net
741,591
824,650
Deferred tax assets
63,136
90,240
Other assets
242,704
143,474
Total assets
$
2,910,003
$
3,108,914
Liabilities and equity
Current liabilities:
Accounts payable and accrued
liabilities
$
357,324
$
378,246
Deferred revenue
196,259
186,007
Current portion of long-term debt
104,948
128,445
Other current liabilities
54,753
48,602
Total current liabilities
713,284
741,300
Long-term debt
741,636
890,323
Convertible debt
399,875
581,405
Deferred tax liabilities
21,419
6,855
Pension and other postretirement benefit
obligations
88,149
99,765
Long-term operating lease liabilities
261,429
274,460
Other long-term liabilities
141,577
151,847
Total noncurrent liabilities
1,654,085
2,004,655
Total liabilities
2,367,369
2,745,955
Redeemable noncontrolling interests
(2,209
)
(1,150
)
Commitments and contingent
liabilities
Equity
Preferred stock, $0.01 par value, 300,000
shares authorized, of which 150,000 shares are designated as Series
A Junior Participating Preferred Stock, none of which were issued
and outstanding at September 30, 2021 and December 31, 2020
—
—
Common stock, $0.01 par value per share,
2,000,000,000 shares authorized; 144,653,850 shares issued and
142,519,768 shares outstanding at September 30, 2021; 139,494,741
shares issued and 138,102,993 shares outstanding at December 31,
2020
1,446
1,395
Treasury stock, at cost, 2,134,082 shares
and 1,391,748 shares at September 30, 2021 and December 31, 2020,
respectively
(6,940
)
(4,903
)
Additional paid-in capital
1,399,693
1,103,881
Accumulated deficit
(898,951
)
(786,437
)
Accumulated other comprehensive income
49,595
50,173
Total equity
544,843
364,109
Total liabilities and equity
$
2,910,003
$
3,108,914
GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Table No. 2
Three months ended September
30,
In thousands, except per share amounts
2021
2020
Advertising and marketing services
$
412,020
$
405,227
Circulation
306,702
336,158
Other
81,463
73,154
Total operating revenues
800,185
814,539
Operating costs
480,289
492,342
Selling, general and administrative
expenses
225,596
241,652
Depreciation and amortization
48,107
61,355
Integration and reorganization costs
13,619
13,417
Asset impairments
2,301
1,585
(Gain) Loss on sale or disposal of assets,
net
(833
)
795
Other operating expenses
4
1,913
Total operating expenses
769,083
813,059
Operating income
31,102
1,480
Interest expense
34,603
58,063
Loss on early extinguishment of debt
3,761
476
Non-operating pension income
(23,860
)
(18,334
)
Other income, net
(931
)
(10,375
)
Non-operating expense
13,573
29,830
Income (loss) before income
taxes
17,529
(28,350
)
Provision for income taxes
2,984
3,098
Net income (loss)
$
14,545
$
(31,448
)
Net loss attributable to redeemable
noncontrolling interests
(142
)
(188
)
Net income (loss) attributable to
Gannett
$
14,687
$
(31,260
)
Interest adjustment to Net income (loss)
attributable to Gannett related to assumed conversions of the 2027
Notes, net of taxes
$
7,598
$
—
Net income (loss) attributable to
Gannett for diluted earnings per share
$
22,285
$
(31,260
)
Income (loss) per share attributable to
Gannett - basic
$
0.11
$
(0.24
)
Income (loss) per share attributable to
Gannett - diluted
$
0.09
$
(0.24
)
GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Table No. 3
Nine months ended September
30,
In thousands
2021
2020
Operating activities:
Net loss
$
(113,447
)
$
(549,885
)
Adjustments to reconcile net loss to
operating cash flows:
Depreciation and amortization
154,452
205,706
Share-based compensation expense
13,804
22,812
Non-cash interest expense
18,719
17,813
Loss on sale or disposal of assets,
net
9,206
1,540
Loss on convertible notes derivative
126,600
—
Loss on early extinguishment of debt
25,996
1,650
Goodwill and intangible impairments
—
393,446
Asset impairments
3,134
8,444
Pension and other postretirement benefit
obligations
(114,663
)
(77,274
)
Change in other assets and liabilities,
net
9,546
50,028
Net cash provided by operating
activities
133,347
74,280
Investing activities:
Purchase of property, plant, and
equipment
(27,265
)
(28,944
)
Proceeds from sale of real estate and
other assets
67,434
26,186
Change in other investing activities
(933
)
779
Net cash provided by (used for)
investing activities
39,236
(1,979
)
Financing activities:
Payments of debt issuance costs
(33,921
)
—
Borrowings under term loans
1,045,000
—
Repayments under term loans
(1,220,751
)
(27,619
)
Deferred payments for acquisitions
—
(7,544
)
Payments for employee taxes withheld from
stock awards
(2,034
)
(1,960
)
Changes in other financing activities
(578
)
(348
)
Net cash used for financing
activities
(212,284
)
(37,471
)
Effect of currency exchange rate change on
cash
389
439
(Decrease) increase in cash, cash
equivalents and restricted cash
(39,312
)
35,269
Balance of cash, cash equivalents and
restricted cash at beginning of period
206,726
188,664
Balance of cash, cash equivalents and
restricted cash at end of period
$
167,414
$
223,933
GANNETT CO., INC.
SEGMENT INFORMATION
(Unaudited)
Table No. 4
Three months ended September
30,
In thousands
2021
2020
Operating revenues:
Publishing
$
715,807
$
732,226
Digital Marketing Solutions
116,771
105,443
Corporate and Other
1,649
2,732
Intersegment eliminations
(34,042
)
(25,862
)
Total
$
800,185
$
814,539
Adjusted EBITDA:
Publishing
$
101,001
$
108,752
Digital Marketing Solutions
15,024
4,177
Corporate and Other
(13,958
)
(24,949
)
Total
$
102,067
$
87,980
GANNETT CO., INC.
SAME STORE REVENUES
(Unaudited)
Table No. 5
Three months ended September
30,
In thousands
2021
2020
% Change
Total revenues
$
800,185
$
814,539
(1.8
)%
Currency impact
(3,778
)
—
***
Exited operations
—
(26,168
)
***
Deferred revenue adjustment
—
563
(100.0
)%
Same store total revenues
$
796,407
$
788,934
0.9
%
Advertising and marketing services
revenues
$
412,020
$
405,227
1.7
%
Currency impact
(2,321
)
—
***
Exited operations
—
(15,063
)
***
Deferred revenue adjustment
—
185
(100.0
)%
Same store advertising and marketing
services revenues
$
409,699
$
390,349
5.0
%
Circulation revenues
$
306,702
$
336,158
(8.8
)%
Currency impact
(1,134
)
—
***
Exited operations
—
(3,717
)
(100.0
)%
Deferred revenue adjustment
—
378
(100.0
)%
Same store circulation revenues
$
305,568
$
332,819
(8.2
)%
Other revenues
$
81,463
$
73,154
11.4
%
Currency impact
(323
)
—
***
Exited operations
—
(7,388
)
(100.0
)%
Same store other revenues
$
81,140
$
65,766
23.4
%
*** Indicates a percentage change greater
than 100.
USE OF NON-GAAP
INFORMATION
The Company uses non-GAAP financial performance and liquidity
measures to supplement the financial information presented on a
U.S. GAAP basis. These non-GAAP financial measures, which may not
be comparable to similarly titled measures reported by other
companies, should not be considered in isolation from or as a
substitute for the related U.S. GAAP measures and should be read
together with financial information presented on a U.S. GAAP
basis.
The Company defines its non-GAAP measures as follows:
- Adjusted EBITDA is a non-GAAP performance measure the Company
believes offers a useful view of the overall and segment operations
of our business. The Company defines 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 (expense),
(5) Loss on convertible notes derivative, (6) Depreciation and
amortization, (7) Integration and reorganization costs, (8) Other
operating expenses, including 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, and (13) certain
other non-recurring charges, including gains or losses on the sale
of investments. The most directly comparable U.S. GAAP measure is
Net income (loss) attributable to Gannett.
- Adjusted EBITDA margin is a non-GAAP performance measure the
Company believes offers a useful view of the overall and segment
operations of our business. Adjusted EBITDA margin is defined as
Adjusted EBITDA divided by total Operating revenues.
- Adjusted Net income (loss) attributable to Gannett is a
non-GAAP performance measure the Company believes 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. The Company defines Adjusted 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) Other operating
expenses, including 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) Gains or losses on the 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. The Company defines Free cash flow
as Net cash provided by operating activities as reported on the
Statement of Cash Flows less capital expenditures, which results in
a figure representing Free cash flow available for use in
operations, additional investments, debt obligations, and returns
to stockholders. The most directly comparable U.S. GAAP financial
measure is Net cash from operating activities.
Management’s Use of Non-GAAP Measures
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income
(loss) attributable to Gannett, and Free cash flow are not
measurements of financial performance under U.S. GAAP and should
not be considered in isolation or as an alternative to income from
operations, net income (loss), margin, cash flow from operating
activities, or any other measure of performance or liquidity
derived in accordance with U.S. GAAP. We believe these non-GAAP
financial measures, as we have defined them, are helpful in
identifying trends in our day-to-day performance because the items
excluded have little or no significance on our day-to-day
operations. These measures provide an assessment of controllable
expenses and afford management the ability to make decisions which
are expected to facilitate meeting current financial goals as well
as achieve optimal financial performance.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Net income
(loss) attributable to Gannett provide us with measures of
financial performance, independent of items that are beyond the
control of management in the short-term, such as depreciation and
amortization, taxation, non-cash impairments, and interest expense
associated with our capital structure. These metrics measure our
financial performance based on operational factors that management
can impact in the short-term, namely the cost structure or expenses
of the organization. Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted Net income (loss) attributable to Gannett are metrics we
use to review the financial performance of our business on a
monthly basis.
We use Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Net
income (loss) attributable to Gannett 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 Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net income (loss) attributable to Gannett, and Free cash
flow
Each of our non-GAAP measures have limitations as analytical
tools. They should not be viewed in isolation or as a substitute
for U.S. GAAP measures of earnings or cash flows. Material
limitations in making the adjustments to our earnings to calculate
Adjusted EBITDA and Adjusted Net income (loss) attributable to
Gannett using these non-GAAP financial measures as compared to U.S.
GAAP net income (loss) include: the cash portion of interest /
financing expense, income tax (benefit) provision, and charges
related to asset impairments, which may significantly affect our
financial results.
Management believes these items are important in evaluating our
performance, results of operations, and financial position. We use
non-GAAP financial measures to supplement our U.S. GAAP results in
order to provide a more complete understanding of the factors and
trends affecting our business.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income
(loss) attributable to Gannett, and Free cash flow are not
alternatives to net income, income from operations, or cash flows
provided by or used in operations as calculated and presented in
accordance with U.S. GAAP. As such, they should not be considered
or relied upon as substitutes or alternatives for any such U.S.
GAAP financial measure. We strongly urge you to review the
reconciliations of Net income (loss) attributable to Gannett to
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Net income
(loss) attributable to Gannett, and Cash provided by operations to
Free cash flow along with our condensed consolidated financial
statements included elsewhere in this report. We also strongly urge
you not to rely on any single financial measure to evaluate our
business. In addition, because Adjusted EBITDA, Adjusted EBITDA
margin, Adjusted Net income (loss) attributable to Gannett, and
Free cash flow are not measures of financial performance under U.S.
GAAP and are susceptible to varying calculations, the Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss)
attributable to Gannett, and Free cash flow measures as presented
in this report may differ from and may not be comparable to
similarly titled measures used by other companies.
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA
(Unaudited)
Table No. 6
Three months ended September
30, 2021
In thousands
Publishing
Digital
Marketing
Solutions
Corporate and
Other
Consolidated
Total
Net income (loss) attributable to
Gannett
$
84,137
$
5,005
$
(74,455
)
$
14,687
Provision for income taxes
—
—
2,984
2,984
Interest expense
—
—
34,603
34,603
Loss on early extinguishment of debt
—
—
3,761
3,761
Non-operating pension income
(23,860
)
—
—
(23,860
)
Depreciation and amortization
35,861
7,986
4,260
48,107
Integration and reorganization costs
3,512
931
9,176
13,619
Other operating expenses
—
—
4
4
Asset impairments
2,301
—
—
2,301
(Gain) loss on sale or disposal of assets,
net
(1,032
)
(91
)
290
(833
)
Share-based compensation expense
—
—
4,602
4,602
Other items
82
1,193
817
2,092
Adjusted EBITDA (non-GAAP basis)
$
101,001
$
15,024
$
(13,958
)
$
102,067
Net income (loss) attributable to Gannett
margin
11.8
%
4.3
%
NM
1.8
%
Adjusted EBITDA margin (non-GAAP
basis)
14.1
%
12.9
%
NM
12.8
%
NM indicates not meaningful.
Three months ended September
30, 2020
In thousands
Publishing
Digital
Marketing
Solutions
Corporate and
Other
Consolidated
Total
Net income (loss) attributable to
Gannett
$
67,726
$
5,223
$
(104,209
)
$
(31,260
)
Provision for income taxes
—
—
3,098
3,098
Interest expense
17
—
58,046
58,063
Loss on early extinguishment of debt
—
—
476
476
Non-operating pension income
(18,262
)
—
(72
)
(18,334
)
Depreciation and amortization
52,481
6,768
2,106
61,355
Integration and reorganization costs
5,120
1,237
7,060
13,417
Other operating expenses
—
—
1,913
1,913
Asset impairments
868
717
—
1,585
Loss (gain) on sale or disposal of assets,
net
1,731
(964
)
28
795
Share-based compensation expense
—
—
3,844
3,844
Other items
(929
)
(8,804
)
2,761
(6,972
)
Adjusted EBITDA (non-GAAP basis)
$
108,752
$
4,177
$
(24,949
)
$
87,980
Net loss attributable to Gannett
margin
9.2
%
5.0
%
NM
(3.8
)%
Adjusted EBITDA margin (non-GAAP
basis)
14.9
%
4.0
%
NM
10.8
%
NM indicates not meaningful.
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE
TO GANNETT
(Unaudited)
Table No. 7
Three months ended September
30,
In thousands
2021
2020
Net income (loss) attributable to
Gannett
$
14,687
$
(31,260
)
Loss on early extinguishment of debt
3,761
476
Integration and reorganization costs
13,619
13,417
Other operating expenses
4
1,913
Asset impairments
2,301
1,585
(Gain) loss on sale or disposal of assets,
net
(833
)
795
Gain on the sale of investments
—
(7,800
)
Subtotal
33,539
(20,874
)
Tax impact of above items
(7,033
)
(25,449
)
Adjusted Net income (loss) attributable to
Gannett (non-GAAP basis)
$
26,506
$
(46,323
)
GANNETT CO., INC.
NON-GAAP FINANCIAL INFORMATION
FREE CASH FLOW
(Unaudited)
Table No. 8
In thousands
Three months ended
September 30, 2021
Net cash flow provided by operating
activities (GAAP basis)
$
40,760
Capital expenditures
(11,444
)
Free cash flow (non-GAAP basis)(a)
$
29,316
(a) Free cash flow for the third quarter
of 2021 was negatively impacted by $18.5 million of integration and
reorganization costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211105005230/en/
For investor inquiries, contact: Trisha Gosser Investor
Relations 703-854-3000 investors@gannett.com
For media inquiries, contact: Lark-Marie Anton SVP,
Communications 646-906-4087 lark@gannett.com
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