NYSE$TDAY

USA TODAY Co Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported solid financial results despite the disruption experienced from the COVID-19 pandemic.

Gannett reported strong first quarter revenue and Adjusted EBITDA performance despite impact from COVID-19. The company implemented $75 million in annualized synergies and ended the quarter with approximately $200 million of cash and cash equivalents.

  • First quarter revenues of $948.7 million rose 144.8% as compared to the prior year, reflecting the Acquisition.
  • Digital advertising and marketing services revenues were $219.2 million, or 23.1% of total revenues.
  • Over $75 million in annualized synergy measures were implemented, with approximately $19 million in savings recognized in the quarter.
  • Adjusted EBITDA totaled $99.1 million, despite the negative revenue impact related to the COVID-19 pandemic.

Headline financials

Total Revenue

$949M

Previous: $388M+144.8%
EPS (adj)

-$0.38

Previous: $0.10-480.0%
Capital Expenditures

-$13.8M

Previous: -$2.24M-514.8%
Free Cash Flow

-$93.9M

Previous: -$11.3M-727.8%
Net Income

-$80.2M

Previous: -$9.11M-780.2%
Operating Income

-$29.8M

Previous: -$1.44M-1978.2%
Gross Profit

$382M

Previous: $158M+141.8%
Cash & Equivalents

$200M

Previous: $24.6M+711.7%
Total Assets

$3.91B

Previous: $1.52B+157.2%
Stock-Based Comp

$11.6M

Previous: $1.14M+919.1%

Revenue & EPS history

Gannett · Revenue · Quarterly

$949M

Q1 2020+144.8%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Gannett expects $140 million in annualized synergy measures to be implemented by the end of the second quarter, with $35 - $40 million of synergies savings to be recorded in the second quarter.

Tailwinds

  • Reducing expenses for the second quarter by $100 - $125 million through implementation of furloughs, significant pay reductions, reductions in force, and cancellation of non-essential travel and spending.
  • Reduced planned capital expenditures for 2020 by approximately 20%.
  • Suspended quarterly dividend until conditions improve.
  • Implemented NOL Rights Plan to protect approximately $435 million in tax assets.
  • Transitioned 95% of our non-production and delivery employees to work from home by late March.

Headwinds

  • The impact on our business from the pandemic came fast and is significant.
  • Same store pro forma revenues decreased 10.0%, approximately in line with Q4 2019 performance, including the negative impact of approximately $17.0 million related to the COVID-19 pandemic.
  • GAAP net loss attributable to Gannett of $80.2 million in the first quarter reflects $78.0 million of depreciation and amortization, $34.2 million of cash charges related to integration, reorganization and transaction related costs, $18.5 million related to non-operating pension income and $9.0 million of tax provision, the majority of which is non-cash.
  • Same store pro forma print advertising revenues decreased 21.2% to the prior year.
  • Same store pro forma circulation revenues decreased 7.5% in the first quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.7%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+6.7%

Avg return

30 days after

47%

22 / 47 earnings

Positive

+31.5%

Q1 2024

Best reaction

-28.1%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-1.1%+7.4%
Q3 2025+28.4%+23.8%+21.9%
Q1 2025-3.4%-1.6%+10.6%
Q4 2024-3.7%-15.8%-36.3%
Q3 2024-19.4%-14.5%-10.7%
Q2 2024-12.8%-10.2%+7.7%
Q1 2024+31.5%+33.2%+56.0%
Q4 2023-6.3%-2.7%+0.5%
Q3 2023-14.8%-15.2%-16.1%
Q2 2023+17.1%+26.2%+7.3%
Q1 2023+1.5%-2.0%+13.6%
Q4 2022+17.8%+17.4%-29.1%
Q3 2022+23.0%+31.1%+74.3%
Q2 2022-26.5%-26.2%-28.7%
Q1 2022-8.8%-11.7%-7.9%
Q4 2021-5.6%-12.4%-13.2%
Q3 2021-7.1%-13.7%-21.1%
Q2 2021+11.4%+11.0%+15.7%
Q1 2021-4.0%-1.3%+12.4%
Q4 2020-11.8%-2.7%-4.6%
Q3 2020+12.3%+20.2%+148.2%
Q2 2020-7.8%+6.0%+10.2%
Q1 2020+1.9%+3.7%+162.6%
Q4 2019-14.1%-18.6%-59.3%
Q3 2019-3.5%-11.1%-23.3%
Q2 2019-28.1%-18.3%-8.2%
Q1 2019-3.8%-3.1%-13.7%
Q4 2018+0.7%+0.9%-16.0%
Q3 2018-2.4%-3.8%-12.1%
Q2 2018-1.8%-1.3%-1.8%
Q1 2018+2.3%-1.1%+6.2%
Q4 2017-1.6%+0.4%+9.3%
Q3 2017+2.2%-0.1%+12.4%
Q2 2017+1.9%-1.5%+4.4%
Q1 2017+2.8%-7.6%-10.9%
Q4 2016+2.1%+1.8%-4.9%
Q3 2016+1.0%+0.8%+11.3%
Q2 2016-9.1%-10.6%-21.3%
Q1 2016+1.2%
Q4 2015+1.5%
Q3 2015-6.5%
Q2 2015+8.6%
Q1 2015+0.5%
Q4 2014+2.4%
Q3 2014-1.3%
Q2 2014-1.0%
Q1 2014-1.1%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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