NYSE$TDAY

USA TODAY Co Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Gannett's Q1 2021 revenues decreased but digital subscriptions grew, and the company achieved significant synergy targets.

Gannett reported a decrease in first quarter revenues, but experienced growth in digital-only subscriptions and digital marketing solutions. The company also successfully refinanced its term loan and achieved its synergy target ahead of schedule.

  • Total digital revenues were $229.2 million or 29.5% of total revenues.
  • Paid digital-only subscriptions surpassed 1.2 million, an increase of 37% from the prior year period.
  • Achieved $300 million of annualized synergies to date, ahead of targeted timeline.
  • Adjusted EBITDA totaled $100.5 million, an increase of $1.4 million or 1.4% compared to the first quarter of 2020 and represented a 12.9% margin.

Headline financials

Total Revenue

$777M

Previous: $949M-18.1%
EPS (adj)

-$1.06

Previous: -$0.38-178.9%
Capital Expenditures

-$7.61M

Previous: -$13.8M+44.8%
Free Cash Flow

-$150M

Previous: -$93.9M-59.6%
Net Income

-$142M

Previous: -$80.2M-77.6%
Operating Income

$7.94M

Previous: -$29.8M+126.6%
Gross Profit

$299M

Previous: $382M-21.7%
Cash & Equivalents

$164M

Previous: $200M-18.1%
Total Assets

$3.05B

Previous: $3.91B-21.9%
Stock-Based Comp

$3.42M

Previous: $11.6M-70.4%

Revenue & EPS history

Gannett · Revenue · Quarterly

$777M

Q1 2021-18.1%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Gannett is focused on a long-term, subscription-led, digital growth strategy and expects to meaningfully grow Adjusted EBITDA year over year.

Tailwinds

  • Company expects to sell an additional $90 million to $115 million in non-core assets during the remainder of 2021 that are anticipated to accelerate debt pay down and further reduce cash interest costs.
  • Management remains confident in its ability to implement additional measures by the end of 2021 that are expected to result in the Company outperforming original synergy targets, resulting in a total of $325 million of annualized synergies.
  • With the refinancing behind us, we are focused on a long-term, subscription-led, digital growth strategy.
  • The first quarter of 2021 was our best quarter to date for new digital-only subscriptions.
  • Core digital marketing solutions teams also had a fantastic quarter, setting new records in productivity.

Headwinds

  • First quarter revenues of $777.1 million decreased 18.1% as compared to the prior year quarter.
  • Same store revenues decreased 16.5% compared to the first quarter of 2020, due to unfavorable impacts resulting from the COVID-19 pandemic and general trends adversely impacting the publishing industry.
  • First quarter same store revenue trends were impacted by the cessation of industry wide digital marketing services incentives at the end of 2020.
  • Net loss attributable to Gannett of $142.3 million in the first quarter reflects a $126.6 million non-cash loss on the derivative associated with the 6% senior secured convertible notes due 2027
  • Print advertising revenues were $193.2 million in the first quarter of 2021, reflecting secular industry trends impacting all categories and impacts from the COVID-19 pandemic.

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 2021

Historical avgQ1 2021

-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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