Gannett(US:GCI)2023-02-22 16:00Debt and Interest Expenses - As of December 31, 2022, the company had variable-rate debt of $438.4 million and fixed-rate debt of $833.8 million[369]. - A hypothetical interest rate increase of 150 basis points would have increased interest expense related to variable-rate debt by approximately $6.6 million for the year ended December 31, 2022[370]. - Total debt as of December 31, 2022, was $1,272.2 million, a decrease of 7.1% from $1,368.7 million as of December 31, 2021[486]. - Interest expense for the New Senior Secured Term Loan was $33.5 million for the year ended December 31, 2022, compared to $6.0 million in 2021, indicating a significant increase due to higher debt levels[492]. - The effective interest rate for the New Senior Secured Term Loan was 6.3% as of December 31, 2022[493]. - Interest expense for the 2026 Senior Notes was $22.3 million for the year ended December 31, 2022, compared to $5.1 million in 2021[501]. - The effective interest rate on the 2026 Senior Notes was 7.3% as of December 31, 2022[501]. - The Company recognized interest expense of $29.1 million and $29.8 million for the years ended December 31, 2022 and 2021, respectively, with an effective interest rate of 10.5%[518]. Financial Performance - The total operating revenues for the year ended December 31, 2022, were $2.95 billion, down from $3.21 billion in 2021, representing a decline of approximately 8.2%[407]. - The net loss attributable to Gannett for the year ended December 31, 2022, was $78.0 million, compared to a net loss of $135.0 million in 2021, indicating an improvement of approximately 42.5%[407]. - The company's operating income for 2022 was a loss of $33.6 million, compared to an operating income of $109.1 million in 2021[407]. - Gannett reported a net loss of $78.255 million for the year ended December 31, 2022, an improvement from a net loss of $136.171 million in 2021[408]. - Cash provided by operating activities decreased to $40.776 million in 2022 from $127.453 million in 2021[408]. - The company reported a loss before income taxes of $76.91 million for the year ended December 31, 2022, compared to a loss of $87.92 million in 2021[551]. Assets and Liabilities - As of December 31, 2022, the total assets of Gannett Co., Inc. were $2.39 billion, a decrease from $2.83 billion in 2021[406]. - Gannett's total liabilities were $2.10 billion as of December 31, 2022, down from $2.30 billion in 2021, reflecting a decrease of approximately 8.8%[406]. - The total current liabilities decreased to $617.0 million in 2022 from $662.5 million in 2021, a reduction of approximately 6.9%[406]. - Gannett's total equity at the end of 2022 was $295.373 million, down from $529.615 million at the end of 2021[409]. Revenue Streams - Advertising and marketing services revenue decreased to $1.50 billion in 2022 from $1.65 billion in 2021, a decline of approximately 9.4%[407]. - Print advertising revenue decreased to $670.9 million in 2022 from $792.3 million in 2021, a decline of about 15.3%[462]. - Digital advertising and marketing services revenue was $825.3 million in 2022, down from $858.9 million in 2021, reflecting a decrease of approximately 3.9%[462]. - Circulation revenue fell to $1,084.6 million in 2022 from $1,249.7 million in 2021, a decline of about 13.2%[462]. Pension and Employee Benefits - The company's defined benefit pension obligation was $1.6 billion as of December 31, 2022, with related pension assets of $1.7 billion, resulting in a net pension asset of $78.6 million[406]. - Gannett recorded a net periodic pension benefit of $58.4 million for the year ended December 31, 2022[406]. - The projected benefit obligation for pension benefits decreased from $3,003.3 million in 2021 to $1,642.2 million in 2022, reflecting a significant actuarial gain[524]. - Employer contributions to pension plans were $18.1 million in 2022, down from $52.2 million in 2021, representing a decrease of 65.3%[525]. - The net periodic benefit cost recognized in the consolidated statements was $57.1 million for 2022, compared to $93.2 million in 2021, indicating a reduction of 38.7%[526]. Taxation - The provision for income taxes for 2022 was $1.35 million, significantly lower than the $48.25 million in 2021, primarily due to valuation allowances and other adjustments[553]. - The effective tax rate for the year ended December 31, 2022, was negative 1.8%, influenced by non-deductible interest expense carryforwards and global intangible low-taxed income inclusion[553]. - The Company recorded $25.7 million in valuation allowances against deferred tax assets in 2022, primarily due to changes in U.S. disallowed interest expense carryforward of $19.6 million and an increase of $12.4 million related to acquisitions[556]. Operational Changes - The Company centralized its operations within U.S. business units, now referred to as Gannett Media and DMS, effective June 1, 2022[413]. - The Company experienced a significant decline in Advertising and marketing services revenues due to the COVID-19 pandemic, with ongoing negative impacts expected in the near term[414]. Auditing and Compliance - The independent auditor expressed an unqualified opinion on the company's consolidated financial statements for the three years ended December 31, 2022[396]. - The company's internal control over financial reporting was deemed effective as of December 31, 2022, based on the COSO criteria[382].