NYSE$TDAY

USA TODAY Co Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Gannett's financial performance decreased due to a decline in total revenues, despite growth in digital revenues and digital-only paid subscribers.

Gannett reported a decrease in total revenues but experienced growth in digital revenues and digital-only paid subscribers. The company repaid debt and adopted a share repurchase program.

  • Total digital revenues reached $272.6 million, representing 33% of total revenues, a 5.0% increase year-over-year on a same store basis.
  • Digital-only paid subscribers increased by 49% year-over-year, exceeding 1.6 million.
  • Digital-only circulation revenues grew by 25.5% year-over-year, reaching $27.6 million.
  • The company repaid $57.5 million of debt during the quarter and adopted a $100 million share repurchase program in 2022.

Headline financials

Total Revenue

$827M

Previous: $875M-5.6%
EPS (adj)

-$0.32

Previous: -$0.04-700.0%
Capital Expenditures

$12.3M

Previous: $8.03M+53.1%
Free Cash Flow

-$18.2M

Previous: -$24.5M+25.9%
Net Income

-$22.4M

Previous: -$123M+81.7%
Operating Income

$24.6M

Previous: $18.1M+36.0%
Gross Profit

$356M

Previous: $377M-5.4%
Cash & Equivalents

$131M

Previous: $171M-23.4%
Total Assets

$2.83B

Previous: $3.11B-9.0%
Stock-Based Comp

$4.64M

Previous: $3.54M+31.0%

Revenue & EPS history

Gannett · Revenue · Quarterly

$827M

Q4 2021-5.6%vs Q4 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Gannett anticipates significant growth in free cash flow, allowing for further investment in growth segments and debt repayment. The company expects to surpass 2 million paid digital subscribers this year, growing at an annual rate of approximately 40% through 2025.

Tailwinds

  • Free cash flow is expected to nearly double from 2021 and grow through 2025 at a 40% compound annual growth rate.
  • Paid digital subscribers are expected to surpass 2 million this year and grow at an annual rate of approximately 40% through 2025.
  • The company plans to invest $80 million across content, marketing, data, product, and digital marketing solutions sales and support operations during 2022 to drive meaningful growth.
  • An inflection point in total Revenue and Adjusted EBITDA is anticipated during 2024.
  • Sustained revenue growth is expected to begin in 2024.

Headwinds

  • The outlook is based on management’s current expectations and beliefs and are subject to numerous risks and uncertainties.
  • The estimates assume no substantial negative pandemic-related business impact and 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 to $45 million for full year 2022.
  • The estimates assume 6 million digital only subscribers by year end 2025, a 40% compound annual growth rate from 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 2021

Historical avgQ4 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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