NYSE$TDAY

USA TODAY Co Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported significant improvement to the bottom line, along with sustained growth in both Adjusted EBITDA and total digital revenues.

Gannett Co., Inc. reported its financial results for the third quarter ended September 30, 2023, with significant improvement to its bottom line, sustained growth in Adjusted EBITDA and total digital revenues. The company repaid $65 million of debt, reducing its first lien net leverage to below 2.0x and maintained a strong liquidity position with $109 million of cash. Total digital revenues surpassed 40% of total revenues, growing 3% year-over-year on a same store basis.

  • Operating Income of $34.9 million; Net Loss Attributable to Gannett of $2.6 million
  • Adjusted EBITDA of $59.5 million, up 15% Year-over-Year
  • Cash Provided by Operating Activities of $20.6 million; Free Cash Flow of $7.4 million
  • Repaid $65.3 million in Debt; First Lien Net Leverage Below 2.0x

Headline financials

Total Revenue

$653M

Previous: $718M-9.1%
EPS (adj)

-$0.18

Previous: $0.35-151.4%
Total Gannett Digital-only ARPU

$6.82

No prior period
Core Platform ARPU (DMS)

$2.64K

No prior period
Core Platform Avg Customer Count (DMS)

15.3K

No prior period
Total Digital-only Paid Subscriptions

2.0M

No prior period
Capital Expenditures

-$29.7M

Previous: -$35.9M+17.3%
Free Cash Flow

-$32.3M

Previous: -$90.1M+64.2%
Net Income

-$2.57M

Previous: -$54.1M+95.3%
Operating Income

$34.9M

Previous: -$25.1M+239.0%
Gross Profit

$237M

Previous: $259M-8.4%
Cash & Equivalents

$109M

Previous: $125M-12.5%
Total Assets

$2.25B

Previous: $2.48B-9.4%
Stock-Based Comp

$3.94M

Previous: $4.5M-12.3%

Revenue & EPS history

Gannett · Revenue · Quarterly

$653M

Q3 2023-9.1%vs Q3 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

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

Tailwinds

  • Revenues $2.65B to $2.67B
  • Same store total revenues Year-Over-Year (9%) to (8%)
  • Net income (loss) attributable to Gannett ($20M) to $0M
  • Cash provided by operating activities $105M to $125M
  • Free cash flow $65M to $85M

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 Q3 2023

Historical avgQ3 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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