From a statement Corporate issued this morning:
Gannett Co. reported today that earnings per diluted share from continuing operations, on a GAAP (generally accepted accounting principles) basis, for the fourth quarter of 2010 were $0.72 compared to $0.54 for the fourth quarter of 2009. Earnings per diluted share from continuing operations for the 2010 fiscal year were $2.35 compared to $1.49 for the 2009 fiscal year.
Results for both quarters and fiscal years included special items as noted below. Earnings per share excluding special items for the fourth quarter were $0.83 versus $0.70 last year on the same basis. Earnings per share excluding special items in 2010 were $2.44 compared to $1.85 in 2009 on the same basis.
Results for the fourth quarter of 2010 include $36.7 million of non-cash charges associated with facility consolidations and asset impairments ($24.4 million after-tax or $0.10 per share) and $3.6 million in costs due to workforce restructuring ($1.9 million after-tax or $0.01 per share). Results for the 2010 fiscal year include $59.7 million of non-cash charges associated with facility consolidations and asset impairments ($42.7 million after-tax or $0.18 per share), $11.7 million in costs due to workforce restructuring ($7.0 million after-tax or $0.03 per share), a $28.7 million ($0.12 per share) net tax benefit due primarily to the expiration of the statutes of limitations and the release of certain reserves related to the sale of a business in a prior year, and a $2.2 million ($0.01 per share) tax charge related to healthcare reform legislation.
Results for the fourth quarter of 2009 included $50.1 million of non-cash charges associated with facility consolidations and asset impairments ($36.3 million after-tax or $0.15 per share) and $3.4 million in costs due to workforce restructuring ($2.2 million after-tax or $0.01 per share). Results for the 2009 fiscal year include $170.2 million of non-cash charges associated with facility consolidations and asset impairments ($119.0 after-tax or $0.50 per share), $28.3 million in costs due to workforce restructuring ($17.9 million after-tax or $0.08 per share), a $42.7 million gain related to the company's debt exchange ($26.1 million after-tax or $0.11 per share) and a $39.8 million settlement gain related to one of the company's union pension plans ($24.7 million after-tax or $0.10 per share).
As previously reported, the company completed the sale of The Honolulu Advertiser and its related assets as well as a small directory publishing operation during the second quarter of 2010. Results for the fourth quarter and year-to-date periods exclude operating results from these former properties which have been reclassified to discontinued operations.
Tables 1 through 4 attached to this release reflect the company's results prepared in accordance with GAAP and include the effect of these special items. Tables 5 through 9 provide information regarding income statement and segment results excluding these special items.
"We are pleased with the positive results we delivered this year. Our performance was driven by the successful execution of strategic initiatives we implemented across the company. Given the rapidly shifting media landscape, we further accelerated our transformation to position Gannett to continue to adapt and operate successfully as our industry evolves. Throughout 2010, we enhanced service to our advertisers, created and customized attractive multiplatform content that our customers are demanding and improved our production and distribution functions. As a result of these actions, we improved the profitability of each business segment and generated operating cash flow of $1.3 billion this year despite the challenging operating environment," said Craig Dubow, chairman and chief executive officer.
"Broadcasting had an outstanding year in terms of ratings, revenue and profitability. Operating income in Broadcasting in 2010 grew over 50 percent and significantly exceeded 2008 results, which was a Presidential election year. Strong results in the Digital segment, particularly at CareerBuilder, also contributed to our earnings growth. In our Publishing segment, revenue comparisons finished the year better than they started. Reflecting the state of the U.S. economy, there were bright spots in auto and employment classified in our domestic publishing operations, although real estate continued to be soft. Without a doubt, Gannett today is a stronger company than it was at the beginning of 2010, and we are focused on continuing to create value for our shareholders in the year ahead," continued Dubow.
Gannett Co. reported today that earnings per diluted share from continuing operations, on a GAAP (generally accepted accounting principles) basis, for the fourth quarter of 2010 were $0.72 compared to $0.54 for the fourth quarter of 2009. Earnings per diluted share from continuing operations for the 2010 fiscal year were $2.35 compared to $1.49 for the 2009 fiscal year.
Results for both quarters and fiscal years included special items as noted below. Earnings per share excluding special items for the fourth quarter were $0.83 versus $0.70 last year on the same basis. Earnings per share excluding special items in 2010 were $2.44 compared to $1.85 in 2009 on the same basis.
Results for the fourth quarter of 2010 include $36.7 million of non-cash charges associated with facility consolidations and asset impairments ($24.4 million after-tax or $0.10 per share) and $3.6 million in costs due to workforce restructuring ($1.9 million after-tax or $0.01 per share). Results for the 2010 fiscal year include $59.7 million of non-cash charges associated with facility consolidations and asset impairments ($42.7 million after-tax or $0.18 per share), $11.7 million in costs due to workforce restructuring ($7.0 million after-tax or $0.03 per share), a $28.7 million ($0.12 per share) net tax benefit due primarily to the expiration of the statutes of limitations and the release of certain reserves related to the sale of a business in a prior year, and a $2.2 million ($0.01 per share) tax charge related to healthcare reform legislation.
Results for the fourth quarter of 2009 included $50.1 million of non-cash charges associated with facility consolidations and asset impairments ($36.3 million after-tax or $0.15 per share) and $3.4 million in costs due to workforce restructuring ($2.2 million after-tax or $0.01 per share). Results for the 2009 fiscal year include $170.2 million of non-cash charges associated with facility consolidations and asset impairments ($119.0 after-tax or $0.50 per share), $28.3 million in costs due to workforce restructuring ($17.9 million after-tax or $0.08 per share), a $42.7 million gain related to the company's debt exchange ($26.1 million after-tax or $0.11 per share) and a $39.8 million settlement gain related to one of the company's union pension plans ($24.7 million after-tax or $0.10 per share).
As previously reported, the company completed the sale of The Honolulu Advertiser and its related assets as well as a small directory publishing operation during the second quarter of 2010. Results for the fourth quarter and year-to-date periods exclude operating results from these former properties which have been reclassified to discontinued operations.
Tables 1 through 4 attached to this release reflect the company's results prepared in accordance with GAAP and include the effect of these special items. Tables 5 through 9 provide information regarding income statement and segment results excluding these special items.
"We are pleased with the positive results we delivered this year. Our performance was driven by the successful execution of strategic initiatives we implemented across the company. Given the rapidly shifting media landscape, we further accelerated our transformation to position Gannett to continue to adapt and operate successfully as our industry evolves. Throughout 2010, we enhanced service to our advertisers, created and customized attractive multiplatform content that our customers are demanding and improved our production and distribution functions. As a result of these actions, we improved the profitability of each business segment and generated operating cash flow of $1.3 billion this year despite the challenging operating environment," said Craig Dubow, chairman and chief executive officer.
"Broadcasting had an outstanding year in terms of ratings, revenue and profitability. Operating income in Broadcasting in 2010 grew over 50 percent and significantly exceeded 2008 results, which was a Presidential election year. Strong results in the Digital segment, particularly at CareerBuilder, also contributed to our earnings growth. In our Publishing segment, revenue comparisons finished the year better than they started. Reflecting the state of the U.S. economy, there were bright spots in auto and employment classified in our domestic publishing operations, although real estate continued to be soft. Without a doubt, Gannett today is a stronger company than it was at the beginning of 2010, and we are focused on continuing to create value for our shareholders in the year ahead," continued Dubow.
I'm now listening to the conference call between Dubow, Martore and Wall Street media analysts.
ReplyDeleteWell, to hear Craig tell it, we all should be getting 10 percent raises this year!
ReplyDeleteI mean, what the heck, the money's pouring in hand over fist! The Gannett bean counters can't even keep up with the flow!
Oh, oh, I forgot. Gannett makes more money because we make less. Maybe we'll be getting 10 percent pay cuts instead!
Just heard Dubow say something about a big, $130M contribution to the pension plan.
ReplyDeleteHere's the very good pension news from the prepared statement: "The company made a voluntary contribution to its pension plan of $100 million in the fourth quarter and $130 million in total during the 2010 fiscal year. These voluntary contributions as well as strong investment performance for the plan resulted in a substantial improvement in the funded status of the plan."
ReplyDeleteDubow and Martore just said there are no plans yet for adding more paywalls at other websites, or charging for USA Today iPad subscriptions; all will remain solely ad-supported.
ReplyDeleteThe conference call with Wall Street analysts has just ended. I'll review the call as the recording becomes available later. For now, though, I didn't hear any bombshells.
ReplyDeleteBroadcasting, as the statement shows, continued to make up for USCP's revenue weakness. But with political advertising behind us, I'm not sure how that's going to improve in the current quarter.
Also continuing to be a big problem: newsprint prices and consumption. Responding to questions, Martore said the expected price increases in the U.S. (up in high teens) and in the U.K. (up in mid-teens) haven't changed. Unclear how much that can be moderated by using less vs. cutting costs in other areas.
Asked about costing-cutting initiatives in USCP generally, Martore said, as she usually does: "We continue to be very focused on making sure that our expenses are in line with our revenues. . . . We will continue to focus on doing that.''
You are pleased with the positive results, Craig? If I got a $1m bonus for maintaining the status quo....Oh strike that, the stock price just dipped. Again. Here's betting I don't get a bonus or even a raise for exceptional or above average performance this year. We know what Craig and the other four will get for this medicore showing. Big bonuses. On our backs. And it's so reassuring to see that nothing is being done to stop the bleeding of revenue. Oh wait, the product is being watered down. Again. Want to guess what the first quarter report will look like?
ReplyDelete