NYSE$TDAY

USA TODAY Co Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported first quarter results, with digital-only paid subscriber growth and digital marketing solutions core platform revenues increasing year-over-year.

Gannett's first quarter performance exceeded expectations, driven by strong growth in digital-only circulation and digital marketing solutions. The company is reiterating its full year guidance for 2022, with digital revenues accounting for more than one-third of total revenues. Gannett continues to focus on its digital transformation, aiming to generate significant free cash flow and improve its balance sheet.

  • Digital-only paid subscribers increased 44% year-over-year, surpassing 1.75 million.
  • Digital Marketing Solutions core platform revenues rose 14% year-over-year to $107.3 million.
  • Total digital revenues grew 9% year-over-year, representing 34% of total revenues.
  • The company is reiterating its full year guidance for 2022.

Headline financials

Total Revenue

$748M

Previous: $777M-3.7%
EPS (adj)

$0.03

Previous: -$1.06+102.8%
Capital Expenditures

-$10.8M

Previous: -$7.61M-41.5%
Free Cash Flow

-$13.7M

Previous: -$150M+90.8%
Net Income

-$2.97M

Previous: -$142M+97.9%
Operating Income

-$1.98M

Previous: $7.94M-124.9%
Gross Profit

$278M

Previous: $299M-7.0%
Cash & Equivalents

$152M

Previous: $164M-6.9%
Total Assets

$2.78B

Previous: $3.05B-8.9%
Stock-Based Comp

$3.39M

Previous: $3.42M-0.9%

Revenue & EPS history

Gannett · Revenue · Quarterly

$748M

Q1 2022-3.7%vs Q1 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

Gannett provided its outlook for the second quarter and full year 2022, including revenue, net income, cash flow, and adjusted EBITDA estimates. The company expects revenue between $780 million and $790 million for Q2 2022 and $3.1 billion to $3.2 billion for the full year. Ending digital-only subscribers are expected to reach 1.85 million+ in Q2 and 2.0 million to 2.2 million for the full year.

Tailwinds

  • Revenue between $780M to $790M for Q2 2022 and $3.1B to $3.2B for FY 2022.
  • Net income attributable to Gannett is expected to be ~$0M for Q2 2022 and $50M to $70M for FY 2022.
  • Cash provided by operating activities is expected to be ~$5M for Q2 2022 and $205M to $225M for FY 2022.
  • Adjusted EBITDA is expected to be $80M to $85M for Q2 2022 and $380M to $400M for FY 2022.
  • Ending digital-only subscribers are expected to be 1.85M+ for Q2 2022 and 2.0M to 2.2M for FY 2022.

Headwinds

  • Same-store total revenues are expected to decrease by (3)% to (1)% year-over-year for Q2 2022 and increase by (2)% to +1% for FY 2022.
  • Free cash flow is expected to be ($10M) to ($5M) for Q2 2022 and $160M to $180M for FY 2022.
  • The outlook does not factor in the impact of any future acquisitions or dispositions.
  • The company is unable to predict with reasonable certainty those items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort.
  • Capital expenditures are assumed at $40 million to $45 million for full year 2022.

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 2022

Historical avgQ1 2022

-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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