NYSE$TDAY

USA TODAY Co Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Gannett's financial performance was reported for Q4 2019, reflecting the acquisition of Legacy Gannett and the initial stages of integration.

Gannett reported Q4 2019 results that include the acquisition of Legacy Gannett. While GAAP revenues increased, the company experienced a net loss. Synergies and debt repayment are ahead of schedule, but same store trends weakened. The company is confident in achieving synergy targets and improving revenue trends.

  • GAAP revenues increased due to the acquisition of Legacy Gannett, but same store revenues for both Legacy Gannett and Legacy New Media declined.
  • Pro forma digital advertising and marketing services revenues reached $231.8 million, representing 22.0% of total pro forma revenues.
  • GAAP net loss attributable to Gannett was $95.1 million, impacted by one-time non-cash write-downs and cash charges.
  • Adjusted EBITDA totaled $98.8 million, with a pro forma Adjusted EBITDA of $141.2 million.

Headline financials

Total Revenue

$699M

Previous: $751M-6.9%
EPS (adj)

$0.14

Previous: $0.44-68.2%
Capital Expenditures

$6.7M

Previous: $3.61M+85.5%
Free Cash Flow

-$79.7M

Previous: $34M-334.6%
Net Income

-$95.5M

Previous: $13.3M-820.1%
Operating Income

-$156M

Previous: $25.2M-718.0%
Gross Profit

$301M

Previous: $186M+62.0%
Cash & Equivalents

$156M

Previous: $48.7M+220.7%
Total Assets

$4.02B

Previous: $1.44B+178.4%
Stock-Based Comp

$8.79M

Previous: $657K+1237.9%

Revenue & EPS history

Gannett · Revenue · Quarterly

$699M

Q4 2019-6.9%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Gannett expects to implement measures resulting in over $60 million in annualized savings by the end of Q1 2020 and to realize $10 - $15 million of savings in the first quarter and further savings in each subsequent quarter. Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies, with more than half of such measures expected to be completed in 2020.

Tailwinds

  • The Company expects to have implemented measures that will result in over $60 million in annualized savings by the end of the first quarter of 2020.
  • The Company expects to realize $10 - $15 million in savings in the first quarter of 2020.
  • The Company anticipate additional savings in each subsequent quarter, as it continues to implement synergies throughout the year.
  • Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies.
  • More than half of such measures expected to be completed in 2020.

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 Q4 2019

Historical avgQ4 2019

-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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