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 ...

Partnership Announcement - ITGtv announced a syndication partnership with USA TODAY's OTT Streaming platform, the USA TODAY channel, part of Gannett Co, Inc (NYSE: GCI) [1] - ITGtv's shows, including ITG Daily, ITG Week-In-Review, and ITG Live, will be featured on USA TODAY's FAST channel, powered by CacheFly [1] - The partnership aims to appeal to the evolving interests of viewers, especially Millennials and GenX working professionals, as gaming intersects with mainstream entertainment [2] ITGtv Overview - ITGtv was founded in 2018 by Drew Beausoleil in Toronto, Canada, and has quickly become a powerhouse in gaming entertainment television [5] - The company's programming lineup includes ITG Daily, ITG Week-in-Review, ITG Live, ITG Preview, ITG Review, ITG Breakout series, and ITG Gamecast, catering to gaming enthusiasts and industry professionals [5] - ITGtv's shows reach over 8 million loyal viewers and are designed to keep working professionals informed about the latest in gaming news, reviews, virtual reality, developer interviews, and eSports [3][6] Distribution and Reach - ITGtv's programs will be available on the USA TODAY channel across multiple platforms, including FireTV, Prime Video, Xumo Play, Plex, Philo, Redbox, Local Now, Sling, TiVo, Samsung TV Plus, Vizio, Xfinity Flex, Xfinity X1, and YouTube [4] - The company broadcasts extensively across various platforms, including broadcast, OTT, FAST, and AVOD channels [6] - ITGtv has forged strong partnerships with USA Today channel, Esports Television (ESTV), Ginx, and plans to launch additional partnerships in summer 2024 [7] Gannett Overview - Gannett Co, Inc (NYSE: GCI) is a subscription-led and digitally-focused media and marketing solutions company with an unmatched reach at the national and local level [8] - The company's portfolio includes The USA TODAY NETWORK, local media organizations in 43 states in the US, Newsquest in the UK, and digital marketing services under the brand LocaliQ [8] - Gannett also owns one of the largest media-owned events businesses in the US, USA TODAY NETWORK Ventures [8]

$668.9M$635.8M Q1 23 Q1 24 $247.5M $267.5M Q1 23 Q1 24 $6.7M $22.5M Q1 23 Q1 24 $(2.1)M $9.5M Q1 23 Q1 24 Improved Trends(2) Grew 8.1% Grew $15.7M Grew $11.5M 2 1 Key Operating Pillars Strong focus on maximizing long-term shareholder value The Turning Point We Believe Improvement in Key Financial Metrics Demonstrates Positive Momentum Total Revenues Total Digital Revenues Cash Provided by Operating Activities Free Cash Flow (1) Q1 2024 Earnings May 2, 2024 Disclaimer and Notes In General. This disclaimer ap ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Q1 2024 unaudited financials show total assets decreased to $2.09 billion, total liabilities slightly decreased, and a net loss of $84.8 million, driven by a $46.0 million asset impairment and print revenue declines, partially offset by digital growth Condensed Consolidated Balance Sheet Highlights (Unaudited) | In thousands | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $425,768 | $444,237 | | **Total assets** | $2,089,166 | $2,181,247 | | **Total current liabilities** | $537,001 | $533,513 | | **Total liabilities** | $1,856,185 | $1,863,934 | | **Total equity** | $232,981 | $317,313 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | In thousands, except per share amounts | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | **Total revenues** | $635,761 | $668,917 | | **Operating (loss) income** | $(49,886) | $19,961 | | **Net (loss) income attributable to Gannett** | $(84,768) | $10,344 | | **(Loss) income per share - diluted** | $(0.60) | $0.07 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | In thousands | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $22,451 | $6,718 | | **Cash (used for) provided by investing activities** | $(12,426) | $20,704 | | **Cash used for financing activities** | $(18,245) | $(38,640) | | **Decrease in cash, cash equivalents and restricted cash** | $(7,236) | $(11,180) | [Note 2: Revenues](index=10&type=section&id=NOTE%202%20%E2%80%94%20Revenues) Q1 2024 total revenues decreased to $635.8 million, driven by a decline in Print and commercial revenues to $368.3 million, partially offset by Digital revenue growth to $267.5 million, with updated disaggregation in presentation Revenues by Type (Q1 2024 vs Q1 2023) | Revenue Type | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Digital | $267,499 | $247,478 | | Print and commercial | $368,262 | $421,439 | | **Total revenues** | **$635,761** | **$668,917** | Digital Revenue Breakdown (Q1 2024) | Digital Revenue Category | Amount (in thousands) | | :--- | :--- | | Digital advertising | $84,466 | | Digital marketing services | $116,414 | | Digital-only subscription | $43,479 | | Digital other | $23,140 | | **Total Digital** | **$267,499** | [Note 5: Integration, Reorganization Costs, and Asset Impairments](index=12&type=section&id=NOTE%205%20%E2%80%94%20Integration%20and%20reorganization%20costs%2C%20and%20asset%20impairments) Q1 2024 saw integration and reorganization costs rise to $17.9 million, including $5.3 million in severance and $12.6 million in other restructuring expenses, alongside a significant $46.0 million asset impairment from corporate headquarters relocation - A **$46.0 million impairment charge** was recorded in Q1 2024 related to the exit of the leased facility in McLean, Virginia, and the relocation of the corporate headquarters[42](index=42&type=chunk) Integration and Reorganization Costs (Q1 2024 vs Q1 2023) | Cost Category | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Severance-related expenses | $5,254 | $10,253 | | Other restructuring-related expenses | $12,627 | $1,874 | | **Total** | **$17,881** | **$12,127** | [Note 6: Debt](index=14&type=section&id=NOTE%206%20%E2%80%94%20Debt) As of March 31, 2024, total debt carrying value was $1.034 billion, slightly down from year-end 2023, with the company repurchasing $13.0 million of 2026 Senior Notes and remaining compliant with all debt covenants Debt Composition as of March 31, 2024 | Debt Instrument | Principal Balance (in millions) | Carrying Value (in millions) | | :--- | :--- | :--- | | Senior Secured Term Loan | $347.1 | $341.5 | | 2026 Senior Notes | $278.5 | $269.5 | | 2027 Convertible Notes | $485.3 | $419.7 | | 2024 Notes | $3.3 | $3.3 | | **Total Debt** | **$1,114.2** | **$1,034.0** | - In March 2024, the company repurchased **$13.0 million of its 2026 Senior Notes** at a discount, recognizing a **gain of approximately $0.6 million**[58](index=58&type=chunk) - The **2027 Convertible Notes** have an initial conversion price of **$5.00 per share** of common stock[62](index=62&type=chunk) [Note 12: Segment Reporting](index=22&type=section&id=NOTE%2012%20%E2%80%94%20Segment%20reporting) The company operates in Domestic Gannett Media, Newsquest, and Digital Marketing Solutions (DMS) segments, reporting Q1 2024 revenues of $495.7 million, $60.2 million, and $117.0 million respectively, with corresponding Adjusted EBITDA figures Segment Revenues and Adjusted EBITDA (Q1 2024) | Segment | Revenues (in thousands) | Adjusted EBITDA (in thousands) | | :--- | :--- | :--- | | Domestic Gannett Media | $495,719 | $44,480 | | Newsquest | $60,198 | $14,163 | | Digital Marketing Solutions | $117,045 | $8,779 | | Corporate and other | $1,604 | $(9,833) | - The Chief Operating Decision Maker (CODM) uses **Adjusted EBITDA** to evaluate segment performance and allocate resources[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the 5% YoY revenue decline to print trends, offset by 8% digital growth, with a $84.8 million net loss impacted by a $46.0 million asset impairment, while the company pursues a digital-first strategy and maintains adequate liquidity - The company's strategy prioritizes **maximizing audience monetization** through the growth of diverse and recurring digital businesses, aiming for an evolution to a predominantly digital media company[118](index=118&type=chunk)[130](index=130&type=chunk) - Key business trends include the **continued decline of print revenues**, the influence of macroeconomic conditions on advertising spend, and the evolving landscape of data privacy standards like third-party cookie deprecation[120](index=120&type=chunk) - Cash flow from operations increased to **$22.5 million in Q1 2024** from $6.7 million in Q1 2023, primarily due to lower severance payments and higher cash receipts from deferred revenues[203](index=203&type=chunk)[204](index=204&type=chunk) [Results of Operations](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2024 consolidated revenue decreased 5% to $635.8 million, with digital growth offset by print declines, resulting in an operating loss of $49.9 million and a net loss of $84.8 million, largely due to a $46.0 million asset impairment Consolidated Revenue Performance (Q1 2024 vs Q1 2023) | Revenue Category | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Digital | $267,499 | $247,478 | 8% | | Print and commercial | $368,262 | $421,439 | (13)% | | **Total revenues** | **$635,761** | **$668,917** | **(5)%** | - The shift from operating income of **$20.0 million in Q1 2023** to an operating loss of **$49.9 million in Q1 2024** was primarily driven by a **$46.0 million asset impairment charge** and a **$17.7 million swing from a gain on asset sales to a loss**[124](index=124&type=chunk)[126](index=126&type=chunk)[144](index=144&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Q1 2024 operating activities provided $22.5 million in cash, with total debt at $1.034 billion, and the company expects adequate liquidity for the next twelve months, projecting $47 million in capital expenditures for the remainder of 2024 - The company expects capital expenditures for the remainder of 2024 to be approximately **$47 million**, focused on digital product development and system upgrades[218](index=218&type=chunk) - As of March 31, 2024, the remaining authorized amount under the company's Stock Repurchase Program was approximately **$96.9 million**, though no repurchases were made in Q1 2024[216](index=216&type=chunk) - The company's leverage is a key risk, potentially limiting cash flow for general corporate purposes and flexibility to react to market changes[219](index=219&type=chunk) [Key Performance Indicators (KPIs)](index=43&type=section&id=KEY%20PERFORMANCE%20INDICATORS) As of March 31, 2024, total digital-only paid subscriptions remained flat at 2.0 million, while Total Gannett Digital-only ARPU increased 22% to $7.22, and DMS Core platform ARPU grew 6% to $2,697, despite a 3% decrease in average customer count Key Performance Indicators (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Digital-only paid subscriptions (thousands) | 2,017 | 2,023 | 0% | | Total Gannett Digital-only ARPU | $7.22 | $5.90 | 22% | | DMS Core platform ARPU | $2,697 | $2,535 | 6% | | DMS Core platform average customer count (thousands) | 14.3 | 14.7 | (3)% | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from interest rates, commodity prices, and foreign currency, with $347.1 million in variable-rate debt, newsprint costs at 3.1% of operating expenses, and no material impact expected from 10% foreign currency fluctuations - The company has **$347.1 million in variable-rate debt**; a hypothetical **100 basis point interest rate increase** would have increased interest expense by approximately **$0.9 million for Q1 2024**[235](index=235&type=chunk) - Newsprint and ink costs represented **3.1% of operating expenses** for Q1 2024, down from 5.2% in Q1 2023[236](index=236&type=chunk) - Foreign exchange risk is primarily from UK operations (British pound sterling); a hypothetical **10% fluctuation** in relevant foreign currencies would not materially impact operating income[237](index=237&type=chunk)[238](index=238&type=chunk) [Controls and Procedures](index=45&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[239](index=239&type=chunk) - No changes occurred during the quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, the company's **internal control over financial reporting**[240](index=240&type=chunk) Part II. Other Information [Legal Proceedings](index=46&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, including a civil action against Google for anticompetitive practices and an appeal of a $25 million jury verdict in Oklahoma, which is expected to be covered by insurance - The company filed a lawsuit against **Google LLC and Alphabet Inc.** for alleged anticompetitive monopolization of advertising technology markets[101](index=101&type=chunk) - In February 2024, a jury awarded a plaintiff **$25 million in damages** against the company in an Oklahoma lawsuit; the company has appealed the verdict and believes any damages would be covered by insurance policies[102](index=102&type=chunk) [Risk Factors](index=46&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes to risk factors were reported since the last Annual Report on Form 10-K[243](index=243&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q1 2024, the company made no open market equity repurchases, but withheld 275,000 shares from employees at an average price of $2.21 per share to satisfy tax obligations from restricted stock award vesting - The company did not repurchase any shares of Common Stock under its Stock Repurchase Program during the three months ended March 31, 2024[244](index=244&type=chunk)[245](index=245&type=chunk) - **275,000 shares** were withheld from employees to cover tax-withholding obligations upon the vesting of restricted stock awards[245](index=245&type=chunk) [Other Information](index=46&type=section&id=ITEM%205.%20OTHER%20INFORMATION) On April 29, 2024, the Board of Directors adopted a new indemnification agreement for its directors, replacing the previous version and providing for indemnification and expense advancement to the maximum extent permitted by law - On April 29, 2024, the Board of Directors adopted a **new form of indemnification agreement** for its directors[248](index=248&type=chunk)

"We drove free cash flow growth over the prior year period, along with improved sequential year-over-year trends in Adjusted EBITDA, which we believe positions us well for full year Adjusted EBITDA and free cash flow growth as outlined in our business outlook." First Quarter 2024 Digital Highlights: Additional First Quarter 2024 Highlights: See "Key Performance Indicators" ("KPIs") below for information about our use of KPIs. (1) Gannett Announces First Quarter 2024 Results and Reiterates Business Outlook N ...

MCLEAN, Va.--(BUSINESS WIRE)--LocaliQ, Gannett Co., Inc.’s (NYSE: GCI) Digital Marketing Solutions (DMS) business, successfully achieved Service Organization Controls (SOC) 2 Type II audit and certification, which validates LocaliQ’s robust controls, effective risk management and adherence to industry best practices. LocaliQ is an all-in-one marketing platform used by local businesses across the country to attract, convert and retain customers. The certification provides a greater level of trust for both cu ...

MCLEAN, Va.--(BUSINESS WIRE)--Gannett Co., Inc. (“Gannett”, “we”, “our”, or the “Company”) (NYSE: GCI) today announced that its Chief Financial Officer, Doug Horne, will participate at the following conference: Deutsche Bank 32nd Annual Media, Internet, & Telecom Conference Monday, March 11, 2024 One-on-one investor meetings throughout the day Palm Beach, Florida About Gannett Gannett Co., Inc. (NYSE: GCI) is a diversified media company with expansive reach at the national and local level dedicated to em ...

MCLEAN, Va.--(BUSINESS WIRE)--USA TODAY, part of Gannett Co., Inc. (NYSE: GCI), announced the 2024 Women of the Year honorees who are using their influence to empower women to lead the next generation. Throughout the year, USA TODAY seeks candidates from various industries and diverse walks of life who accomplish the unimaginable – personally and professionally. USA TODAY’s Women of the Year lead and fight for equity while providing hope and inspiration to others. This year’s list includes 55 local repre ...