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Financial Data and Key Metrics Changes - Total operating revenues for Q4 were $621.3 million, a decrease of 7.2% year-over-year [49] - Adjusted EBITDA for Q4 totaled $78.2 million, an increase of 5.5% or $4.1 million compared to the prior year [51] - Adjusted net income rose to $38.3 million, reflecting a significant year-over-year improvement of $56.5 million [53] - Free cash flow for the full year was $58.4 million, an increase of 3.5% over the prior year [62] Business Line Data and Key Metrics Changes - Total digital revenues in Q4 reached $280.4 million, up 1.2% or 3.4% on a same-store basis, accounting for 45.1% of total revenues [54] - Digital-only subscription revenue rose 17% in Q4, with digital-only average revenue per user increasing approximately 13% [55] - Adjusted EBITDA for the Domestic Gannett Media segment was $58.7 million, up 4.7% year-over-year [58] - Adjusted EBITDA for the Newsquest segment was $11.2 million, with margins at 19.2% [59] Market Data and Key Metrics Changes - The company has the largest digital audience in the nation, with 200 million average monthly unique visitors, growing 7% year-over-year [18] - Total digital revenues are expected to grow between 7% and 10% on a same-store basis in 2025 [66] Company Strategy and Development Direction - The company aims to reach an inflection point for positive revenue growth in 2025, focusing on digital revenue strategies [15][66] - Plans to enhance engagement through personalized consumer experiences and expanding content offerings, particularly in sports and video [28][32] - The company is strategically moving upstream to target larger businesses in its Digital Marketing Solutions (DMS) segment [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable revenue growth and improving financial metrics in 2025 [47][66] - The company anticipates a year-over-year decline in Q1 adjusted EBITDA, followed by steady improvement in the latter half of the year [67] - Management remains optimistic about the ongoing digital transformation and the potential for significant value creation for shareholders [70] Other Important Information - The company completed a comprehensive debt refinancing in Q4, extending maturities and reducing potential future dilution [63] - The company expects total asset sales in 2025 to be in the range of $60 million to $70 million, supporting continued debt reduction [65] Q&A Session Summary Question: Digital growth outlook for 2025 - Management indicated that the 7% to 10% same-store digital growth outlook for 2025 will be driven by both accelerated digital advertising growth and DMS growth, with the latter expected to enhance results in the latter half of the year [72][74] Question: Asset sales and debt paydown - Management confirmed that proceeds from asset sales will be used to pay down debt, estimating $50 million to $60 million in Q1 and $60 million to $70 million in the first half of the year [76][77] Question: Revenue impact from asset sales - The sale of the Austin American-Statesman reflects a mix of digital and print revenue, and future asset sales will primarily involve nonstrategic real estate [80][81] Question: Capital structure considerations - Management expects significant debt paydown in 2025, aiming for a first lien net leverage closer to 2x, which may allow for refinancing into a lower cost capital structure [85][86] Question: Update on legal cases against Google - Management stated that the timing of the DOJ case does not impact their case against Google, which is proceeding as planned [89][90] Question: Remaining nonstrategic assets for sale - Management indicated that the majority of asset sales in 2025 will relate to the Austin sale and some real estate, with a focus on optimizing the footprint [96][97] Question: Opportunity with Reuters - The opportunity from the bundled content offering with Reuters is characterized as a low to mid-single-digit million opportunity in the near term [99] Question: Key levers for growing digital subscriber growth - Management emphasized the importance of personalizing consumer experiences and focusing on local content to drive digital subscriber growth [102]

Debt and Interest Expenses - As of December 31, 2024, the company had variable-rate debt totaling $850.0 million and fixed-rate debt of $261.8 million[481]. - A hypothetical interest rate increase of 100 basis points would decrease income and cash flows by approximately $8.5 million for the year ended December 31, 2024[481]. - As of December 31, 2024, total debt amounted to $1,111.8 million, a decrease of 1.7% from $1,130.6 million as of December 31, 2023[622]. - The effective interest rate for the 2029 Term Loan Facility was 10.1% as of December 31, 2024[642]. - For the year ended December 31, 2024, the company recognized interest expense of $45.0 million, an increase of 12.5% from $40.0 million in 2023[641]. - The company recognized a loss on early extinguishment of debt of $2.5 million for the year ended December 31, 2024[641]. - The 2026 Senior Notes had an aggregate principal amount of $400 million with a 6.00% interest rate, due November 1, 2026[643]. - The effective interest rate on the debt component of the 2027 Notes was 10.50%, while the 2031 Notes had an effective interest rate of 6.60% as of December 31, 2024[670]. - For the years ended December 31, 2024 and 2023, interest expenses were $13.4 million and $19.5 million, respectively, with cash interest payments of $16.3 million and $20.1 million[651]. Financial Performance - Total revenues for 2024 were $2,509,315, a decrease of 5.8% from $2,663,550 in 2023[517]. - Digital revenue increased to $1,103,651, up 5.1% from $1,050,370 in 2023, while print and commercial revenue decreased to $1,405,664, down 13.0% from $1,613,180 in 2023[517]. - Net loss attributable to Gannett for 2024 was $26,354, compared to a net loss of $27,791 in 2023, indicating a slight improvement[519]. - Operating loss for 2024 was $42,838, a significant decline from an operating income of $86,271 in 2023[517]. - Total assets decreased to $2,040,147 in 2024 from $2,181,247 in 2023, reflecting a reduction of approximately 6.5%[516]. - Total liabilities increased to $1,887,513 in 2024, up from $1,863,934 in 2023, marking a rise of about 1.3%[516]. - The company reported integration and reorganization costs of $66,155 in 2024, compared to $24,468 in 2023, indicating increased restructuring efforts[517]. - The company’s total equity decreased significantly to $152,634 in 2024 from $317,313 in 2023, a decline of approximately 52%[516]. Revenue Streams - Digital revenues are primarily derived from digital advertising offerings, which include search advertising and software-as-a-service solutions[556]. - Digital advertising revenue increased to $346,378 in 2024, up from $333,611 in 2023, representing a growth of 3%[588]. - Digital marketing services revenue remained stable at $476,049 in 2024 compared to $476,958 in 2023, showing a slight decrease of 0.2%[589]. - Print advertising revenue decreased to $525,800 in 2024 from $576,545 in 2023, reflecting a decline of 8.8%[591]. - Revenues from international operations accounted for 11.2% of total revenues in 2024, up from 10.3% in 2023[593]. Internal Controls and Audit - The company's internal control over financial reporting was evaluated as effective as of December 31, 2024, based on the 2013 COSO framework[489]. - The independent auditor expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[490]. - There were no critical audit matters identified during the audit of the financial statements[505]. - The consolidated financial statements present fairly the financial position of the company as of December 31, 2024, in conformity with U.S. generally accepted accounting principles[501]. - The company’s management is responsible for maintaining effective internal control over financial reporting[506]. Asset Management - The company conducted goodwill and indefinite-lived intangible asset impairment testing in Q4 2024 and identified no impairments, consistent with 2023 and 2022[549]. - The carrying amount of goodwill as of December 31, 2024, was $530.0 million, reflecting accumulated impairment losses of $340.8 million across various segments[607]. - The Company’s total intangible assets decreased to $430.4 million as of December 31, 2024, down from $524.4 million in 2023[603]. - The estimated future amortization expense for the fiscal year 2025 is projected to be $80.7 million[606]. - The weighted average amortization period for amortizable intangible assets is 10.2 years as of December 31, 2024[603]. Cost Management and Restructuring - The Company reported a total of $51.0 million in other reorganization-related costs for the year ended December 31, 2024, compared to $5.9 million in 2023, primarily due to withdrawal liabilities and other restructuring expenses[617]. - Severance-related expenses totaled $15.1 million for the year ended December 31, 2024, compared to $18.5 million in 2023[616]. - The company plans to focus on digital growth and cost management strategies to improve future performance[517]. Cash Flow and Financing Activities - Cash provided by operating activities for 2024 was $100,310, an increase from $94,574 in 2023[521]. - Total cash used for financing activities was $68,853,000 in 2023, a decrease from $135,511,000 in 2022[534]. - The company issued common stock totaling $100,000 in 2023, compared to $138,000 in 2022[524]. - Cash paid for interest in 2023 was $89,335,000, slightly higher than $86,485,000 in 2022[534]. - The company sold two properties in 2023 for $60.5 million, resulting in a net gain of $39.3 million[598].

Digital Revenue Performance - Total digital revenues exceeded 45% of total revenues in Q4 2024, amounting to over $1.1 billion for the year, with a year-over-year increase of over 5%[3] - Digital-only subscription revenues grew by 17% to $49.0 million in Q4 2024[7] - Digital revenues increased to $280.4 million in Q4 2024, up 1.0% from $277.1 million in Q4 2023[17] - Digital revenues for the year ended December 31, 2024, increased by 5.1% to $1,103,651,000 compared to $1,050,370,000 in 2023[32] - Domestic Gannett Media's digital-only ARPU increased to $8.03 in Q4 2024, up 13.3% from $7.09 in Q4 2023[36] - Total Gannett's digital-only ARPU rose to $7.93 in Q4 2024, reflecting a 12.5% increase from $7.05 in Q4 2023[36] - Digital-only paid subscriptions for Domestic Gannett Media reached 1,953 thousand, a 2.1% increase from 1,912 thousand in 2023[36] - Newsquest's digital-only paid subscriptions surged by 32.5% to 110 thousand in Q4 2024 from 83 thousand in Q4 2023[36] - Total Gannett's digital-only paid subscriptions grew to 2,063 thousand, marking a 3.4% increase from 1,995 thousand in 2023[36] Financial Performance - Adjusted EBITDA for Q4 2024 totaled $78.2 million, reflecting a 5.5% increase, with an adjusted EBITDA margin of 12.6%, up 150 basis points[7] - Total revenues for Q4 2024 were $621.3 million, a decrease of 7.2% due to the sale or shutdown of non-strategic assets[7] - Net income attributable to Gannett for Q4 2024 was $64.3 million, representing a margin of 10.4%[7] - The net income attributable to Gannett for Q4 2024 was $64,319,000, up from a net loss of $22,892,000 in Q4 2023, representing a significant turnaround[28] - For the year ended December 31, 2024, Gannett reported a consolidated total adjusted EBITDA of $273,189,000, with an adjusted EBITDA margin of 10.9%[29] - The net income attributable to Gannett for the year ended December 31, 2024, was $(26,354,000), a decrease from $(27,791,000) in 2023[30] - The company reported a net income margin of 10.4% for Q4 2024, compared to a negative margin of 3.4% for Q4 2023, indicating a strong recovery[28] Cash Flow and Debt - Cash provided by operating activities is projected to grow by over 30% in 2025, while free cash flow is expected to increase by over 40% compared to the prior year[11] - As of December 31, 2024, the company had cash and cash equivalents of $106.3 million and total principal debt outstanding of $1,111.8 million[11] - Cash provided by operating activities for the year ended December 31, 2024, was $100.3 million, compared to $94.6 million in 2023[18] - Free cash flow for the year ended December 31, 2024, was $58,445,000, compared to $56,458,000 in 2023[31] - Gannett's interest expense for the year ended December 31, 2024, was $104,697,000, slightly down from $111,776,000 in 2023[29] Operational Metrics - Average monthly unique visitors reached 200 million in Q4 2024, a 7% increase year-over-year, with approximately 149 million from the U.S. media network[6] - The company expects total digital revenues to grow approximately 7%-10% on a same-store basis in 2025, aiming for digital revenues to constitute 50% of total revenues[11] - The average customer count for the core platform decreased to 13.9 thousand in Q4 2024, down 6.7% from 14.9 thousand in Q4 2023[36] - The core platform average customer count for the year ended December 31, 2024, was 14.3 thousand, a decline of 5.3% from 15.1 thousand in 2023[36] - Overall, Gannett's performance indicates a mixed trend in revenue and user growth, with digital ARPU showing positive growth while customer counts are declining[36] Asset and Liability Overview - Total assets decreased to $2.04 billion as of December 31, 2024, from $2.18 billion at the end of 2023[16] - Total liabilities increased slightly to $1.89 billion in 2024 from $1.86 billion in 2023[16] - Gannett's total equity fell to $152.6 million in 2024 from $317.3 million in 2023[16] - The company entered into an asset purchase agreement to divest the Austin American-Statesman, expected to close in Q1 2025[11] Management and Future Outlook - Management emphasizes the importance of non-GAAP measures in evaluating performance, results of operations, and financial position, despite their limitations[25] - The company expects to provide non-GAAP outlooks for Same store revenues, Adjusted EBITDA, and Free cash flow for the full year 2025, without factoring in future acquisitions or dispositions[27] - Integration and reorganization costs for the year ended December 31, 2024, totaled $66,155,000, compared to $24,468,000 in 2023[30]

Financial Data and Key Metrics Changes - In Q3 2024, adjusted EBITDA totaled approximately $63 million, growing nearly 6% year-over-year [7] - Total operating revenues were $612.4 million, a decrease of 6.2% year-over-year, impacted by strategic decisions to divest non-core businesses [25] - Free cash flow reached approximately $20 million, representing a significant increase of 168% compared to the prior year [7] - Adjusted EBITDA margin improved to 10.3% from 9.1% in the prior year [27] Business Line Data and Key Metrics Changes - Digital revenues surpassed 45% of total revenues, marking an all-time high, with total digital revenues reaching $277.4 million [7][27] - Digital-only subscription revenue reached a new high of $50.1 million, growing 25% year-over-year, with digital-only ARPU climbing above $8 [12][28] - DMS adjusted EBITDA totaled $11.7 million, with core platform ARPU maintaining a record high of approximately $2,800, up 5.3% year-over-year [20][29] Market Data and Key Metrics Changes - The audience surpassed 200 million average monthly unique visitors for the first time, reflecting growth of over 7% year-over-year [8] - Digital advertising revenue increased by 4.9%, driven by growth in page views and programmatic revenue [27] - Newsquest experienced muted top-line growth due to a temporary slowdown in print trends, but adjusted EBITDA reached nearly $14 million, up 3% over the prior year [29] Company Strategy and Development Direction - The company is focused on stabilizing revenue trends, growing adjusted EBITDA, and improving margins, with a strategic emphasis on digital revenue growth [9][10] - A partnership with BetMGM was launched to enhance sports content monetization and audience engagement [22] - The company is leveraging AI to enhance operational efficiency and monetize content, with a partnership with Microsoft for AI summarization [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4, expecting improvements in total revenue trends and digital revenue trends [10] - The company anticipates that the recent rate cuts will positively impact the home services vertical, which has been muted due to economic uncertainty [43] - Management reaffirmed confidence in achieving revenue growth in 2025, driven by audience engagement and digital monetization strategies [45][46] Other Important Information - The company completed a comprehensive debt refinancing that extended maturities and reduced potential future share dilution [32] - Cash balance at the end of Q3 stood at $101.8 million, with net debt of $959.6 million [30] Q&A Session Summary Question: Impact of 200 million monthly unique visitors on business - Management highlighted that audience scale drives monetization, but engagement is crucial for enhanced revenue opportunities [37][39] Question: Revenue and EBITDA contribution from sold non-strategic businesses - Management noted that the sold businesses had minimal EBITDA impact and allowed for cash generation to pay down debt [41] Question: Trends in DMS business - Management indicated that the home renovation category was muted due to economic factors but expressed optimism for recovery with recent rate cuts [43][44] Question: Expectations for revenue growth in 2025 - Management is confident in achieving revenue growth in 2025, supported by audience engagement and digital monetization improvements [45][46] Question: Update on DOJ case against Google - Management believes the DOJ presented a strong case against Google's monopolistic behavior, which could restore competition in the ad tech space [48][49] Question: Microsoft deal and content value recognition - Management explained that the Microsoft deal allows for a narrow use of content, setting a precedent for future partnerships [52] Question: Retaining users post-election cycle - Management stated that growth in unique visitors is not solely dependent on political events, as they have been expanding other readership segments [55][56]

Q3 2024 Earnings October 31, 2024 1 Disclaimer and Notes 2 In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." Gannett Co., Inc. is referred to in this Presentation as "Gannett," "we," "us," "our" or the "Company". Cautionary Statement Regarding Forward-Looking Statements. Certain items in this Presentation may constitute forwar ...

Analysts at Citigroup placed Gannett on a "90-day positive catalyst watch" this morning. Shares of the large publisher Gannett (GCI 18.98%) zoomed 18% higher this morning after Citigroup analyst Jason Bazinet placed the stock on a "90-day positive catalyst watch" and upgraded his rating to neutral. Bazinet believes the U.S. Department of Justice's current lawsuit against Alphabet's Google could have positive ramifications for Gannett. Eying a positive outcome Gannett is the country's largest newspaper and d ...

Digital and print competition For decades, newspaper companies like Gannett Co., Inc. (NYSE:GCI) have had to adapt to the new technologies that gave us the Internet, digitization, and more. The company behind USA Today is getting closer to what it calls an inflection point, where new digital revenue that will offset and eventually surpass its print losses. The latest quarterly report indicates it is headed in the right direction. But it is still displaying red ink and investors need to be patient. This is a ...

Loading... Gannett Co Inc GCI shares were climbing in early trading on Monday. Loading... The company has several catalysts for digital revenue growth and margin expansion, which should take the stock closer to peer average multiples, according to JMP Securities. The Gannett Analyst: Matthew Condon initiated coverage of Gannett with a Market Outperform rating and a price target of $6. The Gannett Thesis: Transitioning from a legacy news business to digital media should help the company to return to growth, ...

Post this As presenting sponsor, USA TODAY Sports will establish a press center and broadcast studio at the Virgin Hotels during the conference. USA TODAY Sports reporters and executives will moderate and appear on panels at the event and serve as judges for the Best in Show Award for the SEICon Innovation Hub. USA TODAY Sports and USA TODAY Network reporters will provide on-site coverage of the event across its nationwide network of over 200 local publications. "We are excited to join SEICon alongside UNLV ...