Gannett(US:GCI)2020-08-07 02:47Financial Data and Key Metrics Changes - Revenues for the quarter were down 28% year-over-year on a same-store basis and pro forma for the acquisition of Legacy Gannett, with sequential improvement noted throughout the quarter [10][48] - Adjusted EBITDA totaled $78 million, exceeding expectations, with an adjusted EBITDA margin of 10.2% [19][49] - The company reported a GAAP net loss of $436.9 million, primarily due to a non-cash goodwill and intangible impairment charge of $693.1 million [54] Business Line Data and Key Metrics Changes - In the publishing segment, revenue was $695 million, with print advertising down 4% year-over-year on a same-store pro forma basis [50] - Digital advertising and marketing services revenues decreased 26.7% on a same-store pro forma basis, but trends improved each month during the quarter [51] - Paid digital-only subscriber revenue grew 31.3% year-over-year, reaching approximately 927,000 subscriptions [52] Market Data and Key Metrics Changes - Digital properties averaged over 147 million unique visitors per month, indicating strong demand for credible news during the pandemic [24] - The events division saw revenue down about 37% year-over-year, but managed to pivot to virtual events, launching 91 during the quarter [32][33] Company Strategy and Development Direction - The company is focused on improving financial performance through subscription income growth, digital marketing services, and expanding community events [42][43] - Plans to sell $100 million to $125 million in real estate and $40 million to $50 million of non-strategic assets by the end of 2021 to reduce leverage [44][45] - The integration of Legacy Media and Legacy Gannett is a priority, with a target of $300 million in annualized synergy savings [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue performance, expecting Q3 results to be similar to or slightly better than June's performance [39] - The company remains confident in its ability to meet obligations under its term loan and is focused on debt repayment [60][66] - Management acknowledged significant uncertainty for the second half of the year but noted continuous improvement in revenue trends [38][65] Other Important Information - The company implemented over $125 million in expense savings during Q2, contributing to a 26% reduction in costs compared to the prior year [15][17] - The company plans to establish an at-the-market equity offering program for up to $50 million of common stock for added flexibility [61] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management reiterating their confidence in the company's future and ongoing strategies [62][68]