Gannett(US:GCI)2025-02-20 15:09Debt 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].