SeekingAlpha has just published a transcript of management's first-quarter earnings conference call with Wall Street media stock analysts. Here are the presentations by CEO Craig Dubow and COO Gracia Martore.
And here are excerpts from the always-interesting question-and-answer session, including this illuminating exchange, starting with a question from analyst Craig Huber of Access 342:
Huber: Gracia or Craig, can you give us a sense of how your April digital ad revenues are doing? And I'm also curious if you're planning on doing newspaper furloughs again here in the second quarter; I believe you did them in the first quarter?
Dubow: The second question was regarding furloughs. And Craig, as we always do, we take that element very, very seriously. We're going to see how the quarter starts shaping. And again, it will be positioned that we look at as we move forward.
Martore: Although I will say, Craig, in our publishing, U.S. Community Publishing, we are taking some minor furloughs, about 1,000 folks or so, and now at this point is the extent, basically, of the furloughs that we are taking across the company.
And here are excerpts from the always-interesting question-and-answer session, including this illuminating exchange, starting with a question from analyst Craig Huber of Access 342:
Huber: Gracia or Craig, can you give us a sense of how your April digital ad revenues are doing? And I'm also curious if you're planning on doing newspaper furloughs again here in the second quarter; I believe you did them in the first quarter?
 |
| Dubow |
Martore: Although I will say, Craig, in our publishing, U.S. Community Publishing, we are taking some minor furloughs, about 1,000 folks or so, and now at this point is the extent, basically, of the furloughs that we are taking across the company.
-->> about 1,000 folks or so, and now at this point is the extent, basically, of the furloughs that we are taking across the company.
ReplyDeleteWow that says something about Gannett payroll. Of +/- 30,000 employees only 1,000 are taking furloughs. Logically means only about 1,000 make more than $80,000 per year. Means they're gonna have to cut a lot of jobs to have impact.
Only Gracia Matore would call any furloughs "minor."
ReplyDelete5:59 But that 1,000 figure also means Corporate can have an impact by furloughing a relatively small number of people.
ReplyDeletePlus, there could be, say, another 5,000 who make $50,000 to $79,999.
NO MORE THREAT OF FURLOUGHS FOR ME!!!
ReplyDeletejust put in my notice, and within a few weeks, I will be a half-day's drive away, with a significant raise.
wish you all the best moving forward.
This guy has got to be the luckiest dirtbag around. Can you imagine how incredulous his high school classmates must be? Craig, we didn't know you had it in you.
ReplyDeleteExclude the salaries of crystal palace and you probably don't have more than a thouand workers making 80k. But why bother is the number is that small? I don't see the sAvings.
ReplyDeleteWhat he meant to say:
ReplyDeleteDubow: The second question was regarding furloughs. And Craig, as we always do, we take that element very, very seriously. Frankly speaking, I need a new yacht. The old yacht, is....well it's old. Sea worthy, but I've heard the snickers at the marina and the country club. It simply won't due. So in lieu of Q2 furloughs, I am asking employees to forgo one meal a day and donate that money to help me purchase a new yacht. I feel I will be contributing to the health of our nation through the first ladies anti-obesity campaign by asking our employees to forgo one meal a day. And by donating the proceeds to me, it would be considered charitable giving. because I pledge to give the old boat to "Yachts For Youth" a new charity based on the model of Kars for Kids. After all, with the new tax breaks for the wealthy, I won't be the only one with an old Yacht on my hands. And we can put those unwanted yachts to work for good. So climb aboard and we can make a synergistic leveraging of surplus fund balance yachts and reallocate them... for good!"
It's amazing how Dubow can answer a question without actually answering it.
ReplyDeleteRe 10:22 p.m....Right you are! Dubow ought to kick back 10 percent of his annual take every year to McCorkindale. It's the least he can do to show his thanks for having his own bathroom.
ReplyDeleteDubow sure doesn't come across on these things as the sharpest guy in town!
How he got to the helm of G A N N E T T could make a heck of a story.
I say ditto on 9:56's remarks, Jim. Could you please refresh our memories as to how this remarkably unimpressive man ended up as CEO of this once-formidable company?
ReplyDeleteExclude the salaries of crystal palace and you probably don't have more than a thouand workers making 80k. But why bother is the number is that small? I don't see the sAvings.
ReplyDelete4/18/2011 10:28 PM
Are you kidding me, at the Arizona Republic alone there are at least 300 people making $80K or more and that is being conservative. What Matore said about only 1000 people across the company taking furloughs is plain and utter BS and she should be called on it. She is basically saying that only 1000 employees of all of Gannett make $80K or more per year. When I worked at the AZ Republic I was low low management and made $70K a year.
Regarding 11:09 a.m...Some people would be amazed at some of the salaries folks are pulling down in the Journal News operation.
ReplyDeleteSome writers, columnists, etc. are making a heck of a lot more than the norm, and certainly over 80 grand.
11:09 am, I don't believe that the $80K furloughs have been generally announced. Gracia has to acknowledge that there may be some furloughs, but she doesn't have to be specific about who is affected. Calling her on the facts wouldn't be productive, because they haven't been publicized.
ReplyDeleteIf there are ten people at each site who make $80K plus, what's that? 800 people? Most sites aren't that big, and ten people go a long way. Sprinkle in an extra 200 from here and there and the CP, and you've got your 1,000.
11:09 am, I don't believe that the $80K furloughs have been generally announced. Gracia has to acknowledge that there may be some furloughs, but she doesn't have to be specific about who is affected. Calling her on the facts wouldn't be productive, because they haven't been publicized.
ReplyDeleteIf there are ten people at each site who make $80K plus, what's that? 800 people? Most sites aren't that big, and ten people go a long way. Sprinkle in an extra 200 from here and there and the CP, and you've got your 1,000.
4/19/2011 1:12 PM
Gannett currently has about 32,000 employees, so you really think only 1,000 or about 3% make $80K or more you are definitely drinking the Koolaide, it doesn't matter the size of the sight, you can go by percentages, in Phoenix at the Arizona Republic approximately 16% of the employees make $80K or more, extrapolate that across the company .16 X 32000 = 5120 employees and probably much higher, remember Arizona is a very low cost of living state so in almost all other areas the percentage is going to be higher. I think you just don't really know what your fellow employees are being paid, but they are being paid alot don't fool yourself.
If there are ten people at each site who make $80K plus, what's that? 800 people? Most sites aren't that big, and ten people go a long way. Sprinkle in an extra 200 from here and there and the CP, and you've got your 1,000.
ReplyDelete4/19/2011 1:12 PM
Ok listen to yourself one sec.....if most sites had 10 people or less, the whole company would only employ about 2,000 people not 32,000 and would have a very hard time reaching $5 billion in annual revenue. Just because you work at a small newspaper, why do you think every other location is like yours???!!! Don't forget there is Newsquest; all the TV stations, other divisions with no newspaper or broadcast affiliation what-so-ever. THERE ARE THOUSANDS THOUSANDS UPON THOUSANDS OF EMPLOYEES THAT MAKE $80K AND MORE PER YEAR, get a clue before you start making ridiculous comments.
Anonymous said...
ReplyDeleteNO MORE THREAT OF FURLOUGHS FOR ME!!!
just put in my notice, and within a few weeks, I will be a half-day's drive away, with a significant raise.
Wish you all the best moving forward.
4/18/2011 7:34 PM
Good for you and congratulations! Left Gannett myself a year ago and never regretted it for a moment.
Wishing you also all the best going forward!
Anonymous said...
ReplyDeleteNO MORE THREAT OF FURLOUGHS FOR ME!!!
just put in my notice, and within a few weeks, I will be a half-day's drive away, with a significant raise.
Wish you all the best moving forward.
4/18/2011 7:34 PM
Good for you and congratulations! Left Gannett myself a year ago and never regretted it for a moment.
Wishing you also all the best going forward!
4/19/2011 3:26 PM
You are so full of it... so obviously made up!!!
Why would that be, 3:51? Because you yourself are so uninspiring and lacking in talent that you're a classic Gannettoid stuck in Gannettoid land? The place recruits, cultivates and otherwise prides itself on non-thinkers like you -- until it's ready to cut you from the "club." (And that day will most certainly come.) Because you have no idea how to work anywhere else but your "safe haven" somewhere in GCI, you can't imagine that those of us who could think of better things to do did just that.
ReplyDeleteNow, go ahead and demand that we reveal our names with the "no name/no job/no business!!" taunt, ok? Because we all know that makes you feel so, so much better about yourself and your pathetic existence in possibly one of the worst companies in America.
Why would that be, 3:51? Because you yourself are so uninspiring and lacking in talent that you're a classic Gannettoid stuck in Gannettoid land? The place recruits, cultivates and otherwise prides itself on non-thinkers like you -- until it's ready to cut you from the "club." (And that day will most certainly come.) Because you have no idea how to work anywhere else but your "safe haven" somewhere in GCI, you can't imagine that those of us who could think of better things to do did just that.
ReplyDeleteNow, go ahead and demand that we reveal our names with the "no name/no job/no business!!" taunt, ok? Because we all know that makes you feel so, so much better about yourself and your pathetic existence in possibly one of the worst companies in America.
4/19/2011 4:13 PM
Let's see, where do I start first... oh ya, I don't work for Gannett.
Loosely translated....furloughs mean more bonus bucks for the bosses. We need to see the big picture. They are not in the business to take care of the employees. They are in the business to make money at any cost. Don't get caught up in the negative b.s. that can wear you down. Remember what matters. Take your skills and get out!
ReplyDeleteI don't see the furlough savings from the 80k crowd. Can anyone tell me how significant this could be, or is it more of a we feel your pain stunt? I don't get it.
ReplyDeleteIt's pretty small in the grand scheme. Let's say that the average salary for this group is $120k. One week's pay would be $2.3 million if 1,000 people were included.
ReplyDeleteMight be more about sending a message: If you can find a job that pays you as much as we do, please leave. As has been mentioned before on this blog, long-time employees also have higher legacy costs than new hires.
Could also be a set up for a company-wide furlough in Q3. If the 80k crowd is included, than you can throw another $2.3 million into the bonus pool in addition to the rest of the savings for the year.
With an average salary of $46,000, every employee working one less week amounts to $28.3 million.
Looks like a pretty effective way to save on some payroll expenses. Trouble with Gannett is that expenses are all about year-over-year views. Once you do it last year, you seemingly have to do it forever. The other option is to make the SG&A expense dollar neutral which means if you're looking at a new year, and you want to reward performers with a 2% increase, you then have to add in last year's furlough and reduce payroll by the sum of all parts. This means people lose their jobs.
6:57 thanks for the thoughtful post. Your cost saving est. Still seems high, factoring the 80k base. Maybe Gracia actually wants to see if there is any work related impact when high paids are out of the office. So they will be easier to fire in q3 or Q4.
ReplyDeleteThat's about the time the board of directors weighs in on craig and martores bonuses.
ReplyDelete