NYSE$TDAY

USA TODAY Co Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Gannett's Q1 2023 results reflected a solid start to the year with digital-only businesses delivering solid results and Digital Marketing Solutions business sustaining a high level of performance.

Gannett reported a net income of $10.3 million and an adjusted EBITDA of $62.9 million for Q1 2023. The company saw year-over-year growth in digital-only circulation revenues and digital marketing solutions core platform revenues. Gannett is raising its full year outlook with respect to Adjusted EBITDA, Net Income, and cash flow.

  • Net income attributable to Gannett was $10.3 million.
  • Adjusted EBITDA totaled $62.9 million.
  • Digital-only circulation revenues grew 19% year-over-year.
  • Digital Marketing Solutions core platform revenues were up 4% year-over-year.

Headline financials

Total Revenue

$669M

Previous: $748M-10.6%
EPS (adj)

$0.04

Previous: $0.03+33.3%
Total Digital-only Paid Subscriptions

2.0M

No prior period
Capital Expenditures

-$8.8M

Previous: -$10.8M+18.3%
Free Cash Flow

$1.55M

Previous: -$13.7M+111.3%
Net Income

$10.3M

Previous: -$2.97M+448.6%
Operating Income

$20M

Previous: -$1.98M+1109.2%
Gross Profit

$239M

Previous: $278M-14.2%
Cash & Equivalents

$83.1M

Previous: $152M-45.4%
Total Assets

$2.33B

Previous: $2.78B-16.3%
Stock-Based Comp

$3.74M

Previous: $3.39M+10.1%

Revenue & EPS history

Gannett · Revenue · Quarterly

$669M

Q1 2023-10.6%vs Q1 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

Gannett is raising its 2023 full year outlook with respect to net income (loss) attributable to Gannett, cash provided by operating activities, free cash flow, and Adjusted EBITDA. The Company is reiterating its 2023 full year outlook with respect to revenues, same store total revenues year-over-year, and first lien net leverage.

Tailwinds

  • Net income (loss) attributable to Gannett: ($15M) to $15M
  • Cash provided by operating activities: $125M to $145M
  • Free cash flow: $85M to $105M
  • Adjusted EBITDA: $285M to $305M
  • First lien net leverage <2.0x

Headwinds

  • Revenues: $2.75B to $2.80B
  • Same store total revenues Year-Over-Year: (5% to 3%)
  • The Company's estimates do not factor in the impact of any future acquisitions or dispositions.
  • The Company’s future financial results could differ materially from the Company’s current estimates.
  • Capital expenditures are assumed at $40 million for full year 2023.

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 2023

Historical avgQ1 2023

-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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