Word for word | Earnings releases, and CEO quotes

(Updated at 8:05 a.m. ET) Gannett disclosed first-quarter financial results yesterday, and CEO Craig Dubow offered his traditional commentary, in the company's official earnings statement. Here are the results from the past six quarters, with Dubow's remarks, and the closing stock price each day.

Fourth quarter, 2007
Statement date: Feb. 1, 2008
Operating revenue: $1.9 billion (down 11.9% from year ago)
Net income: $245.3 million (down 30.6%)
Closing stock price: $37.47

Dubow's commentary: Gannett completed 2007 with strong forward momentum on implementing our strategic plan. That is an impressive accomplishment given the backdrop of cyclical pressures on advertising, a softer economic environment and secular changes in the industry.

In the fourth quarter, we faced a challenging advertising environment, tough comparisons, which included an extra week in 2006, and the relative absence of election-related advertising in broadcasting. Our effort to align expenses with revenue opportunities will better position us for the future although it resulted in significant severance expenses and consolidation costs in the quarter. Our online revenue growth contributed to our results for the quarter. Lower newsprint costs and interest expense, and the exchange rate also had a positive impact.

First quarter, 2008
Statement date: April 21
Operating revenue: $1.7 billion (down 8.4% from year ago)
Net income: $191.8 million (down 8.9%)
Closing stock price: $28.30

Dubow: We faced a very challenging advertising environment as the economy further weakened in the quarter, particularly in the latter half of March. We are focused on positioning the company for the future from both a revenue and expense perspective as we navigate the uncertain economic environment.

In our publishing segment, the softening economy led by a difficult real estate market continued to have an unfavorable impact on classified categories as well as some retail categories. However, we benefited from stronger national advertising at both USA Today and USA Weekend for the quarter. In the broadcasting segment, higher political advertising was offset by softer ad demand in other categories and the absence of Super Bowl related ad revenues. Online revenues company-wide contributed to results for the quarter. Cost control and efficiency efforts had a positive impact on the quarter, including lower newsprint usage and expense, and we also benefited from lower interest costs.

Second quarter, 2008
Statement date: July 16
Operating revenue: $1.7 billion (down 10.2% from year ago)
Net income: $232.7 million (down 36.4%)
Closing stock price: $16.57

Dubow: The weakening economy had a dramatic impact on our results. The impairment charges reflect, in part, these challenging economic conditions and pressure on our stock price but do not affect our ability to manage our businesses or make strategic acquisitions. The difficult economic and advertising environment also should not overshadow the progress we are making on our strategic transformation as we continue to position the company for the evolving media landscape.

The struggling economy has put pressure on advertising demand for our publishing segment, particularly classified advertising in our real estate-centric markets in the U.S. and in the UK. Broadcasting benefited from higher political advertising and positive results from Captivate which partially offset the weakness in other categories. Growth in our online revenues also contributed positively to results in the quarter. We carefully controlled our operating expenses despite higher newsprint prices, and focused on increasing efficiencies. A significant level of severance expenses related to those efforts during the quarter will better position us for the remainder of this year and into 2009. We benefited from lower interest expense, as well.

Third quarter, 2008
Statement date: Oct. 24
Operating revenue: $1.6 billion (down 9% from year ago)
Net income: $158.1 million (down 32.5%)
Closing stock price: $9.47

Dubow: While our results this quarter reflect the difficult and volatile economy both here and in the UK, they also highlight our determination to move forward with our strategic plan.

Our positive online results confirm, for instance, the importance of digital to our plan going forward. We also were delighted to complete, this quarter, the acquisition of an additional 10% stake in CareerBuilder, the largest online job site in the U.S., and the remainder of ShopLocal.

Within our core operations, revenues from Olympics advertising reflected the strength of our NBC affiliated stations. Political advertising is strong and continues to surge as we move toward November. Meanwhile, we continue to transform our cost structure and create efficiencies as we manage through this economic downturn.

And there were some headwinds in addition to the weakening economic conditions which impacted ad spending across the board. We faced significantly higher newsprint prices and an unfavorable exchange rate.

Fourth quarter, 2008
Statement date: Jan. 30, 2009
Operating revenue: $1.7 billion (down 8.5% from a year ago)
Net income: $158 million (down 35.6%)
Closing stock price: $5.77

Dubow: Our results for the quarter reflect the unprecedented turmoil in the economies of both the U.S. and the UK and in the financial markets. Our anticipated non-cash impairment charges stem from recessions in the U.S. and UK and the resultant impact on business conditions and the broad-based downward pressure on equity share values. The impairment charges, while significant, will not impact operating cash flow, our ability to pay down debt or the way we will operate the company going forward. Despite economic conditions, we pressed forward to transform Gannett and position it for the future and more favorable business conditions. To that end, some tough decisions were made during the quarter regarding the size and structure of our operations, and these actions resulted in significant severance expenses.

The ongoing weakness in advertising demand had a significant impact on our results in both publishing and broadcasting this quarter. However, we benefited from substantially higher politically related advertising revenue in broadcasting as well as solid results in the digital segment. Lower interest expense and taxes also had a positive impact in the quarter while higher newsprint expense moderated results.

First quarter, 2009
Statement date: April 16, 2009
Operating revenue: $1.38 billion (down 17.8% from a year ago)
Net income: $77.4 million (down 56.9%)
Closing stock price: $3.60

Dubow: While revenue in the quarter benefited from growth in our digital segment and significantly higher retransmission fees for our television stations, our results reflect the pressure on advertising demand across all of our business segments due to continuing recessions in the U.S. and the UK. Our results, however, highlight the positive impact of the company’s efforts to operate its businesses as cost efficiently as possible in light of the revenue realities we are facing in this extraordinary time.

Although business conditions remain very challenging, we continue to transform all facets of the company as we position it for a more favorable economic environment and the opportunities we see in the changing media landscape.

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